The Order Fulfillment Process

Order fulfillment is a key process in managing the supply chain. It is the customers' orders that put the supply chain in motion, and filling them efficiently and effectively is the first step in providing customer service. However, the order fulfillment process involves more than just filling orders. It is about designing a network and a process that permits a firm to meet customer requests while minimizing the total delivered cost. This involves more than logistics, and it needs to be implemented cross‐functionally and with the coordination of key suppliers and customers. In this paper the order fulfillment process is described in detail to show how it can be implemented within a company, and managed across firms in the supply chain. The, activities of each sub‐process are examined; the interfaces with functional silos, processes and firms are evaluated; and, examples of successful implementations are provided.