A systems approach to order fulfilment

Supply chain management aims to add value across the supply chain, and customer service is now a major strategic issue. Supply chains are complex and subject to variables of forecast, supply, process and transportation which can lead to problems, such as the Bullwhip effect, product lateness, damaged goods and stock outs. A key issue that companies are facing today is how to monitor and control performance across the chain. This paper presents design for six sigma (DFSS), which focuses on customer requirements from the onset, as an effective methodology for monitoring and controlling supply chain variables, optimising supply chain processes and meeting customer's requirements. By applying DFSS methodology to the key supply chain process of order fulfilment, a customised representation of detailed activities of order fulfilment processes is demonstrated providing key performance indicators. A theoretical transfer function for predicting the performance of the perfect order incorporating fuzzy set theory provides a way of monitoring supply chain performance.