Future of Engineering

Sunday, March 2, 2008

Fulfillment: The Unexpected Key to Successful E-Commerce

e-commerce gives consumers a lot of what they want: broad assortment and convenient shopping any time from anywhere. These characteristics of Internet retailing are driving the e-commerce supply chain to be as flexible, fast and low-cost as the Internet itself. The ironic challenge of e-tailing is that the things making it attractive to consumers are exactly the things that make order fulfillment and DC (distribution center) operations difficult. The problem is that anachronistic material handling approaches are not well suited for the demands of Internet retailing, presenting a bottleneck in the enterprise value chain. Clearly, 21st century e-commerce operations will not succeed when simply duct-taped to 20th century automation.

To compete effectively, e-commerce must figure out how to transform the distribution function from a cost center into a competitive asset. This article takes a look at why fulfillment processes in their current state hold e-commerce back from its full competitive potential, and offers some insights about a new approach.

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