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E-commerce transaction fulfillment in the supply chain

It is commonly believed that the fulfillment of an order placed online does not differ in principle from one placed in another way. In traditional distribution, ordered goods are placed in containers, on pallets, or in shipping containers; e-commerce distribution requires suppliers to satisfy individual orders, which is much more labor-intensive. Furthermore, online store customers expect a higher level of service, and their orders are coupled with requirements for rapid fulfillment. A customer placing an order online at noon expects to receive the ordered products in the afternoon. Two-thirds of purchased products come from small suppliers and importers, which often causes problems with the accuracy of their identification. Handling such products entails the need for special equipment. All virtual stores must provide up-to-date information on warehouse stock levels on their website.

If they have an integrated order acceptance and warehouse management system, they know what is available to offer. Many of them have not switched from picking large orders to handling small ones and do not keep a history of these events. Distribution centers that fulfill orders for virtual stores deal with a wider range of products in orders than when serving traditional channels. Delivery preparation operations usually require higher equipment throughput, especially during holiday periods. Serving virtual stores may require two, three, or even ten times more operations. And even though distribution centers must pick and pack more ordered products than when serving traditional stores, their customers do not tolerate any errors. The fulfillment of such transactions requires 100% accuracy. The throughput of warehouses specializing in handling online transactions must adapt to the volume of orders. They must be designed so that employees can quickly find and pack the ordered item. It is necessary to conduct category management that allows for the identification of fast-moving items or items that will be ordered on a given company’s website. Therefore, it is important to place them in proximity to shorten the picker’s travel path. A picking method known as the put-away system has been revived. In traditional warehouses, the picker walks along the racks, finds the needed item, and takes it to the packing station.

The article comes from the magazine “Logistyka” 2001/1.

L2001-1s58.pdf