H a j r Ë H y s e n iO c t 2 0 1 1

eCommerce Fulfilment Systems

GettyIcons (2011)1

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Fulfilment definition

Why Fulfilment?

Fulfilment solutions

Homework

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the process when a individual or company fulfils their obligations to deliver a consumer an item or product which has been ordered/purchased

or request from the company

The process of sending/delivering a product which has been ordered/purchased online.

Turban et al (2010)3

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Deliveries of small

quantities to a large number of

destinations?

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In 1995, Amazon launched its new business

model called Virtual Retailing/eCommerce(today)

Turban et al (2010)

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The Solution

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Step 1. Order placed/Computer checked the locationIt identified distribution centre to fulfil the order

Step 2. A “flowmeister” receives orders and assigns them to specific employees

Step 3. The items (books, games & dCs) are stocked in bins. Each bin has a red light and button which turns on when new orders are received.

Step 4. The picked items are placed into a crate moving on a conveyor belt which is part of a winding belt system that is more than 10 miles long

Step 5. All crates arrive at central location where bar codes are matched with order numbers.

Step 6. If gift wrapping was selected, this is done by hand

Step 7. Boxes are packed/taped/weighed/labeled and routed to one of 40 truck bays in the warehouse. Then they go to UPS for shipping

Turban et al (2010)

Tuesday, 25 October 11

Advantages

Disadvantages

Warehouse facilities, Shipping costs, Packing materials, eCommerce

support, Fulfilment costs

• No delivery, no client support = = company receives bad reputation but not the fulfilment company• Product damage mostly not covered from the fulfilment company

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Making sure the customer will pay

Checking for in-stock availability

Arranging shipments

Insurance

Dealing with Customised orders

In house production

Use contractors

Deal with returns

Order Fulfilment process

Turban et al (2010)8

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Amazon Shipwire

iForce eBay

coming s

oon..

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YouTube Video - Fulfilment by Amazon Tourhttp://www.youtube.com/watch?

v=HOicZ_AgsSA

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Amazon iForce Shipwire

Eligible for Super Saver Delivery Handling returns eBay Selling Manager

Integration

Competitive Price Sorting

IRSIntelligent Routing

System

Real-time shipping for your eBay sales

Customer Service/handling returns SMaRT System Real-time of shipment

tracking

Products can be purchased by

customers across EU

ReSCUsystem

(Reverse Stock Control Utility)

Fully synchronised with eBay - Automatic

Order Fulfiment

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Homework

Visit ups.com and find its eCommerce fulfilment services

Compare them with those of fedex.com

Then go to https://wwwapps.ups.com/ctc/request and simulate a purchase.

Report your experiences in your Research Files

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Suggested Readinghttp://wps.prenhall.com/bp_turban_ec_2010/

http://www.scvisions.com/articles/advanced%20order4.pdf

http://www.logistech.us/lsi/resources/SCM991e1comm.pdf

Turban, E., King, D,. McKay, J., Marshall, P., Lee, J. K (2010) Electronic Commerce A Managerial Perspective. Prentice Hall.

http://goo.gl/tpHcF

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