Understand the role of order fulfillment and backoffice operations in EC. Describe the problems of managing the supply chain and the use of innovative solutions there. | Chapter 13 Order Fulfillment, Logistics, Supply Chain Management Learning Objectives 1. Understand the role of order fulfillment and back-office operations in EC 2. Describe the process of order fulfillment 3. Understand the concept of the supply chain, its importance and management 4. Describe the problems of managing the supply chain and the use of innovative solutions there 5. Describe the need for integrating information systems of front office and back office 6. Trace the evolution of software that support activities along the supply chain and their management 7. Understand the relationship among ERP, SCM and EC. The Y2K Order Fulfillment Problem In Dec. 1999 Competition among E-Tailers increases Special area: Toys; Big promotions, coupons Demand: very high, not anticipated Retailers: were unable to meet demand Customers: very unhappy Similar problems in gifts, book, etc. Also: online retailers has warehousing and logistics problems Order Fulfillment Taking orders may be | Chapter 13 Order Fulfillment, Logistics, Supply Chain Management Learning Objectives 1. Understand the role of order fulfillment and back-office operations in EC 2. Describe the process of order fulfillment 3. Understand the concept of the supply chain, its importance and management 4. Describe the problems of managing the supply chain and the use of innovative solutions there 5. Describe the need for integrating information systems of front office and back office 6. Trace the evolution of software that support activities along the supply chain and their management 7. Understand the relationship among ERP, SCM and EC. The Y2K Order Fulfillment Problem In Dec. 1999 Competition among E-Tailers increases Special area: Toys; Big promotions, coupons Demand: very high, not anticipated Retailers: were unable to meet demand Customers: very unhappy Similar problems in gifts, book, etc. Also: online retailers has warehousing and logistics problems Order Fulfillment Taking orders may be the easiest part Difficulties in groceries and fresh food One reason: Customized products Second: Pull type manufacturing The Pull vs. Push Model Major Concepts Order fulfillment: Deliver right order on time Front office operations: Order taking, advertisement, CRM Back office operations: Accounting, finance, inventor, packaging, logistics Logistics: Managing the flow of goods, information and money along the supply chain The Process of Order Fulfillment The Steps of Order Fulfillment 1. Payment Clearance 2. In-stock availability 3. Packaging, shipment 4. Insuring 5. Production (planning, execution) 6. Plant services 7. Purchasing, warehousing 8. Demand forecast 9. Accounting, billing 10. Customer contacts 11. Returns (Reverse logistics) Shipping a Tropical Fish 1. Placing order, payment 2. Transfer order to , check stock 3. Use an wholesaler to get the fish 4. Supplier finds fish, ships to wholesalers 5. Wholesalers rushes to Petstore 6. Petstore uses .
