Enabling strategic fulfillment : a decision support tool for fulfillment network optimization

Abstract

Dell's Third-Party (3P) Product network uses several different order fulfillment methods, though the determination of which products are fulfilled under which method is not clearly delineated. We have developed a tool to assist in the decision making process for Dell's 3P distribution network. This tool transparently presents the results of cost modeling and forecast variance simulation while maintaining usability to achieve broad adoption and exert influence on product fulfillment method decisions. The cost model created takes into account product, overhead, logistics, and capital costs and has the capability to deal with volume uncertainties through simulation. This tool solidifies the discussion around choosing the correct fulfillment method decision process and is the first step towards quantifying the fulfillment method decision.