Facilities
Introduction
Within the context of the order management system, facilities represent various locations that form part of the fulfillment network. These locations fulfill distinct roles in ensuring the smooth movement of goods, both in inbound and outbound. A distinction is made between two primary types of facilities: managed facilities and suppliers.
Managed facilities
Managed facilities are fulfillment locations that are directly operated and controlled within the network. The defining characteristic of these facilities is that the complete operational fulfillment process –including picking, packing, shipping, and related tasks – is managed internally or by a partner.
Key attributes of managed facilities:
Physical location & capabilities: Comprehensive information regarding each facility’s address, working hours, fulfillment capacity, and handling capabilities is maintained within the system.
Carrier integrations: Managed facilities are integrated with specific shipping carriers. The system tracks available carriers as well as their respective pickup times and schedules.
Fulfillment focus: Typically, managed facilities handle direct-to-consumer deliveries. Orders are picked, packed, and shipped directly to the end customer. In certain cases, customers may also have the option to collect their orders directly from these facilities.
Interfacility transfers: In addition to serving customers, managed facilities support interfacility transfers, enabling the efficient movement of stock between different managed locations.
Supplier facilities
Suppliers are external entities within the supply chain that provide products to the network. These may include manufacturers, publishers, wholesalers, and distributors, among others.
Key attributes of suppliers:
External fulfillment operations: Unlike managed facilities, the operational fulfillment processes at supplier locations are outside the direct control of the network. Tasks such as picking, packing, and shipping are managed by the suppliers themselves, following their own processes and schedules.
Supply chain role: Suppliers primarily act as the upstream source of inventory, supplying goods to be stocked within managed facilities or shipped directly depending on the fulfillment strategy.
Summary
The differentiation between managed and supplier facilities is fundamental for the efficient configuration of any fulfillment network, ensuring that each facility type is leveraged appropriately within the broader order management processes.
Fulfillment operations
Managed within the network
Managed externally by supplier
Inventory role
Storage, order fulfillment, transfers
Source of inventory
Carrier & logistics control
Full visibility and control
Limited or no control
End customer interaction
Direct fulfillment or pickup possible
Typically not interacting with end customer
Example entities
Distribution centers, retail stores
Manufacturers, publishers, wholesalers
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