ThisdfdfdfdfThis lecture covers several fulfilment methods for an ecommerce site. In addition, it also examine advantages and disadvantages of using third party fulfilment services.

1. eCommerce
Fulfilment Systems
H a j r Ë H y s e n i
O c t 2 0 1 1
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GettyIcons (2011)
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2. Fulfilment definition
Why Fulfilment?
Fulfilment solutions
Homework
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3. 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.
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4. Deliveries
of small
quantities to a
large number of
destinations?
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5. In 1995, Amazon
launched its new business
model called Virtual Retailing/
eCommerce(today)
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6. The Solution
Step 1. Order placed/Computer checked the location
It 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
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7. Advantages
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
Disadvantages
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8. Making sure the customer will pay
Checking for in-stock availability
Arranging shipments
Order Fulfilment Insurance
process
Dealing with Customised orders
In house production
Use contractors
Deal with returns
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9. Amazon Shipwire
iForce eBay
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10. YouTube Video - Fulfilment by Amazon Tour
http://www.youtube.com/watch?
v=HOicZ_AgsSA
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11. Amazon iForce Shipwire
Eligible for Super eBay Selling Manager
Handling returns
Saver Delivery Integration
IRS
Competitive Price Real-time shipping for
Intelligent Routing
Sorting your eBay sales
System
Customer Service/ Real-time of shipment
SMaRT System
handling returns tracking
ReSCU
Products can be Fully synchronised
system
purchased by with eBay - Automatic
(Reverse Stock Control
customers across EU Order Fulfiment
Utility)
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12. 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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13. Suggested Reading
http://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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