We will show that managing and balancing these objectives is as fundamental to the success of virtual supply chains as it has been to longstanding traditional models. To avoid inconsistencies among operational objectives, managers must carefully define their objectives, ensure that they are measurable, and rank them. Managers should consider all four and focus considerable attention on those that are most critical for competitive success. Before examining e-fulfillment for furniture, we must first consider the traditional model. The Traditional Retailer in the Furniture Industry Furniture manufacturing and distribution are notoriously difficult.
Items are bulky and often are handled many times in transit from the factory to the home.
The more handoffs in the supply chain, the more likely that items will be damaged or delayed. Returns can be troublesome as well. If a customer does not like a table once he or she sees it in the house, he or she may want to return it for another table or for cash. The table usually has to be repackaged, moved from the home to the truck, and then brought back to the store. Small case goods might be relatively easy to ship.