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128 CHAPTER 5 The Fulfi llment Process

Figure 5-1: A basic fulfi llment process

In this chapter, we discuss the fulfi llment process in detail, with a spe-
cial focus on how an ERP system supports the process. We begin by identify-
ing the key organizational levels and the master data related to the process.
Next we examine the process steps in detail, and we explain how fulfi llment
is integrated with other processes. We conclude by discussing the various
reports related to fulfi llment. Unlike the previous chapter, this chapter does
not include a separate section on key concepts. The reason for this is that the
basic concepts associated with fulfi llment, such as goods movement, have been
addressed in previous chapters.
To illustrate the various concepts and process steps, we will use the fol-
lowing scenario throughout the chapter. Rocky Mountain Bikes (RMB), a
GBI customer located in Denver, Colorado, has placed an order for 40 silver
deluxe touring bikes and 100 t-shirts that it plans to sell at two racing events in
Colorado Springs, one to be held on May 15 and the other on June 20. Because
the bikes represent a signifi cant inventory and storage expense, RMB wants
GBI to deliver them directly to the racing location just a few days before each
race. Further, RMB anticipates that the May race will attract a much larger
crowd, so it expects to sell more bikes and t-shirts at that race. It has therefore
requested that GBI deliver 30 of the bikes on May 10 and the remaining 10 on
June 10. However, it wants GBI to deliver all 100 t-shirts in May so that it can
sell as many as possible at the fi rst race and then sell the remaining ones at the
second race. Unlike the bikes, t-shirts are relatively inexpensive and are easy
to store between races.

ORGANIZATIONAL DATA

Several organizational elements are essential to the fulfi llment process. These
are client, company code, sales area, plant, storage location, shipping point,
and credit control area. Three of these—sales area, shipping point, and credit
control area—are unique to fulfi llment. A sales area is a combination of three
other organizational elements—sales organization, distribution channel, and
division—that are also unique to fulfi llment. We discuss all of these organiza-
tional elements in this section.
Some elements—namely, client, company code, plant, and storage
location—are also relevant to other processes and have been discussed in

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