Transformation of E-Fulfilment Industry Capabilities

Abstract

Over the last decade, organisations have been forced to re-examine the role of ICT as a support tool and accept that it has become a major driver for business change (Ash & Burn, 2003, pp. 297-308.). Indeed, new business opportunities have arisen solely based on e-business: e-fulfilment is one such example (Alexander & Burn, 2004, p.1). These services were estimated to be worth US$1,006 Trillion in the United States alone, or 10.1% of their GDP in 2000 (Rogers, 2002). Furthermore, 21% of all logistics transactions are expected to be online by 2005, with the long-term possibility that traditional freight companies will ultimately cease to exist (Homs, Meringer, & Rehkopf, 2001). This article explores the concepts which are encompassed in the term e-fulfilment, and presents a model of e-fulfilment activities. This model is then validated through the analysis of e-fulfilment capabilities of 48 UK based e-fulfilment companies. The findings from this analysis lead to an extension of the model and suggest a long term transformation model for the industry as a whole.