What is order fulfillment?
Order Fulfillment in simple terms means the ability to satisfy customer demand in time with best customer experience. In short, the demand and supply should balance each other. A conservative plan has risk of potential loss of sale extending to loss of confidence and trust from the customer which will make the business spiral downwards.
On the contrary a liberal plan might result into overstocked locations; higher cost of unused inventory will eat into the business margins and make the business unviable.
Timely order fulfilment, balancing the supply and demand coupled with continuous growth and high customer satisfaction is not a perfect science and that’s why it needs a continuous data insights and corrective actions to keep the key supply chain KPIs in control.
Science of Order Fulfillment, although not often perfect can be described using following 3 tenets which influence the decision-making during operations.
- Factors influencing the design of the fulfilment engine – These are extremely important for design of the order fulfillment engine and corrective actions
- Components of the Fulfillment engine – Different components and their considerations that need to be considered for efficient design.
- Continuous monitoring and timely corrective action – Data insights provided around key Order fulfillment KPIs with a drill down to enable timely corrective actions.
InspireXT have a ready methodology that can be used with a baseline of given influence factors and design components which can create a recommendation for your supply chain. With our data driven, KPI centric drill down methodology for further sensitive analysis our Supply Chain Maturity Assessment Framework provides continuous monitoring and deviations exceptions for corrective action.