Many people mistake order fulfilment and supply chain as entailing the same thing. However this is not the case. Whilst they are intertwined, in the world of online e-commerce, the efficiency of your order fulfilment and supply chain management is reliant on the effectiveness of each other.
It is important to note the difference between the two and how they inform each other:
- Order fulfilment – Comprises the whole service of an order being processed from beginning to end. It describes an overall function and can be outsourced to a fulfilment centre to undertake all respective duties. This will include processing, picking, packing and shipping orders. The primary goal is to get an order processed and delivered to a customer in the quickest possible time.
- Supply chain – It is a network of individuals and companies who are interconnected to achieve the goal of manufacturing and delivering a product. The supply chain encompasses the whole process, from a customer placing an order to receiving an order. Within that chain, order fulfilment comprises a part of that process. The main objective of the supply chain is the transportation of goods.