The author focuses on issues related to the control of activities in the order fulfillment process. The study outlines methods useful for examining the order fulfillment process and recording errors. The inspiration for writing the article came from the author’s research on the functioning of supply chains and the problems that companies face.
The most important factor driving interest in the order process is cost. A lower purchase price for raw materials, supplies, and services allows a company to achieve savings, and consequently, to offer its product to the customer at a lower selling price. The second element that companies are paying increasing attention to is the timely fulfillment of orders. If delivery fulfillment is delayed, it means additional costs for the company related to fulfilling delayed or emergency deliveries, paying contractual penalties, and in extreme cases, the loss of a customer and future revenue. The third problem is maintaining an inventory level adequate to needs. Companies want to protect themselves against the loss of sales and credibility in this way. Unfortunately, as inventory levels rise, so do the costs of maintaining them. A company can therefore be caught in a trap related to the pursuit of ensuring the highest possible level of customer service on one hand, and minimizing inventory holding costs on the other.
The article comes from the journal “Logistyka” 2003/6.