ABSTRACT

The individual e-businesses need to understand the structur­ al barriers that exist before a viable LFMS can be implement­ ed. The problem is that many enterprises have an IT infra­ structure that is hampered by the heritage of its previous tradition­ al business implementations that has grown to a level o f complexity which is hard to manage, especially given the speed of change in today’s e-business environment. But, automation and technology that are capable of significantly accelerating the implementation o f the 3R.S are a must for the e-business model. A cut­ ting-edge system creates seamless connections from the beginning to the

end of the order process — order intake, pick-pack-ship, inventory man­ agement, and quality assurance such as a built-in bar-code or RFID (radio frequency identification) systems. The viable LFMS combines software, order fulfillment automation and bar-code technology (or its equivalent) in every fulfillment center within the value chain resulting in improved efficiency, high labor productivity and lower production fulfillment costs. Along with that comes the control of value chain member activities such as supplier lead times and shipper performance.