12 Order Fulfillment Along the Supply Chain

Can we use CPFR in SMEs? CPFR is a con- ceptual model for working with business part- ners and is usually effective and efficient with large organizations. However, since it is basi- cally a conceptual model of collaborative planning, it may work in some SMEs where collaborative planning is critical. A visit to gs1us.org/industries/apparel-general- merchandise and an examination of some of the applications there can help identify places where CPFR can help SMEs.



SUMMARY
In this chapter, you learned about the following EC issues as they relate to the chapter’s learning objectives.

1. 
   The order fulfillment process. Large num- bers of support services are needed for EC implementation. Most important are payment mechanisms and order fulfillment. On-time delivery of products to customers may be a difficult task, especially in B2C. Fulfilling an order requires several activities ranging from credit and inventory checks to arranging ship- ments. Most of these activities are part of back-office operations and are related to logis- tics. The order fulfillment process varies from business to business and also depends on the products to be delivered. Generally speaking, the following steps are recognized: payment verification, inventory checking, shipping arrangement, insurance, production (or assembly), plant services, purchasing materi- als, customer contacts, and return of defective or unwanted products.
   
2. 
   Problems in order fulfillment. It is difficult
   

to fulfill B2C orders due to difficulties in fore- casting demand and potential delays in supply
and deliveries. Problems also result from insufficient coordination and information sharing among business partners.

3. 
   Solutions to order fulfillment problems. Automating order taking (e.g., by using forms over the Internet) and smoothing the supply chain are two ways to solve order fulfillment problems. Several other innovative solutions exist, most of which are supported by soft- ware that enables more accurate inventories, coordination along the supply chain, and appropriate planning and decision making.
   
4. 
   RFID tags. Replacing bar codes with RFID can greatly improve locating items along the supply chain quickly. This technology has many other benefits which will soon out- weigh the major limitations. The major appli- cations are improving supply chain visibility, expediting tracking, speeding inventory counting, speeding up deliveries, and reduc- ing errors.
   
5.