Product Fulfillment

There are different components that make up quality product fulfillment. The person in charge of this department of a business will over-see the entire process (from the point of sales) to the actual delivery of the product to the consumer or client. When business owners are trying to make their business run more efficient for their customers and clients, the first thing they look at is how long their customers have to wait to receive a product. Sometimes, marketing deparments will participate in research and surveys to determine how long clients are willing to wait for products. Here are the seperate factors that determines and make up product fulfillment:

ETO- This is also known as Engineer-to-Roder. This is when the product is first constructed or engineered and built based on customer's specifications. Business owners and manufacturers who are participating in large construction projects will more than likely use this approach.

BTO- This term is also referred to as (MTO) or Make-To-Order. BTO stands for Build-To-Order. In this scenario, a product is created based on a standard design. The actual finalization of the product is based on customer's requests or specifications. Many auto factories and aircraft manufacturers use this approach.

Digital Copy- This is when certain products are labeled as digital assets. The inventory is usually managed with one digital master. Copies of the product can be created digitally or upon download from the customer. The customer is then able to store the copy on their own hard drive or personal files. Popular examples of a digital copy include E-books, music and software.

Assemble-To-Order- The customer will be able to give their input using this approach, however it will be from existing components that are already in stock. The product comes from a product architecture design which allows the product to be designed in a certain type of way. Manufacturers who build computers and laptops, will often use this approach.

Build-To-Forecast- Manufacturers usually depend on a set of predictions made by professionals before building the actual product. The finished product is sold to the customer based on how well they think the product is going to sell. Retail sectors and grocery stores often use this approach.

Other Definitions You Might Find With Product Fulfillment

When looking at the this subject, the subject might also find other definitions that are related to it, such as; sales quote, order booking, order acknowledgment and confirmation, order configuration, product inquiry, invoicing, order sourcing, order processing, settlement, returns and shipment.

Other ways that the product fulfillment strategy helps out is that it determines the decoupling point. This point is often found in the supply chain and can usually find the demand and supply for a product. It is also an inventory buffer that can solve any inaccurate reports for sales forecast and the forest error. It does the same thing for actual demand. In order to decrease the dependence on a forecast, the demand supply must be increased. Many successful business owners have used this model in order to create a dynamic company.