Difference between revisions of "Fulfillment"

Latest revision as of 19:28, 9 November 2024

In the context of supply chain management, "fulfillment" refers to the process of delivering products or services to customers after demand has been defined. Fulfillment encompasses all the activities and functions involved in ensuring that a customer's order is successfully completed and delivered to their satisfaction. Fulfillment is a crucial aspect of the supply chain because it directly impacts customer satisfaction and can significantly influence a company's reputation and success.

With supply chains becoming more and more complex, fulfillment tasks also gained complexity through being distributed over multiple steps before the final customer is reached. To address this ZUGSEIL has introduced fulfillment collaboration capabilities which work well in simple as well as the most complex supply chain scenarios spanning over multiple identities. In essence, each participant communicatea with other stakeholders of the fullfillment job.

Examples for basic fulfllment scenarios are

demand, which is directly filled from local stock
regular demand resulting in purchasing with a supplier
demand, which is forwarded to a supplier with direct delivery to the internal customer
demand, which is forwarded to a supplier with indirect delivery over a local warehouse to the internal customer

Additional challenges driving fulfillment supply chain complexity are

multi level supply chains
customization of goods along the supply chain
distributed assembly tasks along the fulfillment supply chain
dependency on production

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-[[Category:Business Epics]]
+In the context of [[Collaborative supply chain management|supply chain management]], "fulfillment" refers to the process of delivering products or services to customers <u>after</u> [[demand]] has been defined. Fulfillment encompasses all the activities and functions involved in ensuring that a customer's order is successfully completed and delivered to their satisfaction. Fulfillment is a crucial aspect of the supply chain because it directly impacts customer satisfaction and can significantly influence a company's reputation and success.
-Fulfillment means all process to fulfill a promise given to a customer!
-From a '''retailer`s perspective''' this means the activities performed once an order is received to fulfill the order: ''packaging'', ''distribution'' and ''shipping of goods''. From a '''logistic provider`s perspective''' it is the packaging and dispatching of a customer`s order. The digital which needs to fulfill typically promises certain goods by accepting an order - typically an [[Internal Order|internal order]], [[Customer Order|customer order]], [[Return order|returns order]] or [[Relocation Order|relocation order]].
+With supply chains becoming more and more complex, fulfillment tasks also gained complexity through being distributed over multiple steps before the final customer is reached. To address this ZUGSEIL has introduced fulfillment collaboration capabilities which work well in simple as well as the most complex supply chain scenarios spanning over multiple identities. In essence, each participant communicatea with other stakeholders of the fullfillment job.
-== Fulfillment supply chains ==
+Examples for basic fulfllment scenarios are
-The most simple fulfillment scenario means that the local stock is (1) ordered to take the goods from stock and then (2) ordered to dispatch it via a logistic provider. Both actions are handled by a logistics team located in a local warehouse . But over the last decades the tasks in fulfillment gain more and more complexity and are distributed over multiple parties before the final customer is reached. To address this ZUGSEIL has introduced [[Dev:Fulfillment Supply Chain|Fulfillment Supply Chain capabilities]] which works well in simple as well as the most complex supply chain scenarios spanning over multiple identities collaborating to fulfill the promise given to the customer.
+*demand, which is directly filled from local stock
+*regular demand resulting in purchasing with a supplier
+*demand, which is forwarded to a supplier with direct delivery to the internal customer
+*demand, which is forwarded to a supplier with indirect delivery over a local warehouse to the internal customer
+Additional challenges driving '''fulfillment supply chain complexity''' are
+*multi level supply chains
+*customization of goods along the supply chain
+*distributed assembly tasks along the fulfillment supply chain
+*dependency on  production
-Examples for scenarios driving [[Dev:Fulfillment Supply Chain|fulfillment supply chain complexity]] are :
+== Related articles ==
+* [[Demand]]
+* [[Supply chain participants]]
+*[[Collaborative supply chain management]]
+* [[Warehouse Management System (WMS)|Warehouse Management System]]
-* customization of goods (internal or by 3rd party)
+== Related development articles ==
-* finishing of goods (internal or by 3rd party)
+* [[Dev:Fulfillment]]
-* assembly jobs along the fulfillment supply chain
+[[Category:Glossary]]
+[[Category:Business Epics]]
-== Fulfillment Strategy on order position level ==
+__NOTOC__
-Once the promise is given to the customer, a decision <u>for each order position</u> has to be made: "How do we fulfill this promise?".  This decision typically depends on various information like type of goods, goods availability, goods pricing, target region, required time of arrival at the customer or general fulfillment strategies. ZUGSEIL currently offers 4 fulfillment strategies: [[File:Fullfillment_Strategies_v1.png|right|frameless|597x597px]]
-* '''Self-fulfillment''' This is the default fulfillment strategy for most of the goods and does not require b-op based interaction of digitals. Goods are taken from local stock. If lock stock has insufficient stock measures are taken to refill it, so the goods can be sent to the customer. After being sent the customer is invoiced by the sent goods.
-* '''Warehouse delegation''' ''(only available with inter-digital digitization)'' There exists a warehouse, which is under full control of the ordering digital, but is hosted at a 3rd party digital, the goods are shipped from that delegated warehouse. After the goods have been sent out the customer is invoiced by the sent goods. The participating digitals communicate on the [[Shipment Order|shipment order]] and [[delivery order]] status.
-* '''Fulfillment delegation''' ''(only available with inter-digital digitization)'' The entire fulfillment is outsourced to a 3rd party digital. The fulfillment of goods is placed as procurement order at the supplying digital. One the supplying digital confirms the delivery of goods to the final customer, he is invoiced by the sent goods from the 1st level supplier.  The participating digitals communicate on the [[Production Order|procurement order]] status.
-* '''Contract brokerage''' ''(only available with inter-digital digitization)'' In this scenario, the digital which received the order is taking a brokerage role. It just informs the next level supplier that there is a customer which wants to order stuff with him at which conditions. At the same time it informs the customer which digital will take the offer for these conditions. The customer and the customer places a regular purchase order with the supplier. Once the contract is established the broker`s digital is notified that a contract has been successfully created and he might charge a commission for his services (over the backwards order process) with the customer.  Please note that the digitals of the supplier and the customer have to know each other. Eventually the broker must make sure that the digitals are introduced beforehand!
-== (Order position) Fulfillment status ==
-When internal order or customer orders are entering the fulfillment process, each of their position is assigned a fulfillment strategy and a fulfillment status. For the fulfillment strategy/status a history exists to track not only the status but eventually also a change in fulfillment strategy. Please read up on this article for a [[Dev:List of the default fulfillment status|list of the default fulfillment status]].

Difference between revisions of "Fulfillment"

Latest revision as of 19:28, 9 November 2024

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