Digitalisation & Process Automation for E-Commerce Operations Flashcards

Topic 2B (28 cards)

1
Q

What is the fulfilment system and how does it operate?

A

A multi-layered, interconnected system linking digital and physical subsystems.

Each subsystem has a specific role (e.g. order processing, warehousing, delivery).

Success depends on seamless integration for smooth flow of information and goods.

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2
Q

What is the function of an Order Management System (OMS)?

A

Consolidates orders from multiple sales channels (online, mobile, marketplaces).

Uses API integration and RPA automation.

Measured by order accuracy and order processing speed.

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3
Q

What is the function of a Warehouse Management System (WMS)?

A

Manages storage, picking, packing, and stock tracking in real time.

Uses RFID, IoT sensors, and barcode scanners.

Measured by inventory accuracy and pick rate.

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4
Q

What is the function of a Transport Management System (TMS)?

A

Plans routes, assigns carriers, and tracks shipments to customers.

Uses GPS tracking and AI route optimization.

Measured by delivery reliability and fuel efficiency.

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5
Q

What is the function of a Customer Relationship Management (CRM) system?

A

Records customer details, purchase history, and after-sales service.

Uses AI chatbots and data analytics.

Measured by customer satisfaction and return rate.

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6
Q

What is the function of Business Intelligence (BI) tools?

A

Converts operational data into dashboards and insights.

Uses Power BI, Tableau, and Python analytics.

Measured by cycle time, cost per order, and ROI.

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7
Q

What is the contribution of inventory management to fulfilment operations?

A

Ensures products are available when customers want them without overstocking.

Balances between stock shortage (lost sales) and excess stock (high storage cost).

Uses Warehouse Management Systems (WMS) with RFID and IoT sensors for automated tracking.

Example: YCH Group’s Supply Chain City uses robotic shuttles and digital twins for real-time accuracy.

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8
Q

What key metrics and controls are used in inventory management?

A

Inventory Turnover = COGS ÷ Average Inventory

High ratio → efficient sales and stock use.

Fill Rate (%) = (Orders Fulfilled ÷ Total Orders) × 100

Low fill rate → demand forecasting or stock issues.

Reorder Point (ROP) system triggers automatic replenishment using safety stock buffers.

  • ROP = (Avg demand x lead time) + safety stock
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9
Q

How has automation improved the order processing stage in fulfilment?

A

Traditional manual entry (spreadsheets, stock matching) caused errors and delays.

Automation tools like Zapier or UiPath RPA now link e-commerce platforms with WMS and accounting systems.

Each order automatically triggers:
* inventory allocation
* invoice generation
* order confirmation emails
* data recording in ERP or Google Sheets

Results: Faster processing, fewer errors, and better data accuracy.

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10
Q

How do modern technologies improve the picking and packing process in fulfilment?

A

Most labour-intensive stage — requires accurate item retrieval and secure packaging.

Singapore examples: ST Logistics and Amazon Joo Koon.

Use Automated Storage and Retrieval Systems (ASRS) and Autonomous Mobile Robots (AMRs).

Robots use laser sensors and vision systems to locate and pick items.

Benefits:
* Reduced walking time for workers
* Lower picking errors
* Higher operational efficiency

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11
Q

How is shipping and delivery optimized in Singapore’s e-commerce fulfilment?

A

Determines speed and reliability of customer deliveries.

Singapore’s compact geography enables same-day or next-day delivery.

Uses Transport Management Systems (TMS) for route planning.

TMS algorithms optimize based on:
* Real-time traffic
* Parcel volume
* Vehicle capacity

Improves delivery efficiency and customer satisfaction.

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12
Q

How do modern fulfilment centres in Singapore handle returns and reverse logistics?

A

Returns = ~6% of total e-commerce orders (mainly size or defect issues).

Manual inspection is slow and inconsistent.

AI image recognition compares returned items to originals to detect:
* Damage
* Fraud

Reverse logistics software classifies returns as:
* Resellable
* Repairable
* Recyclable

Enables data-driven recovery planning and improves customer satisfaction.

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13
Q

How does technology replace manual fulfilment work?

A

Stock count → RFID & IoT → real-time accuracy

Order entry → RPA / Zapier → no data errors

Picking → Pick-to-Light / AMRs → faster picking

Label printing → API automation → quicker dispatch

Route planning → AI TMS → lower delivery cost

Return checks → AI image check → saves time & money

✅ Creates real-time visibility and smooth data flow across all systems.

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14
Q

How does system integration improve fulfilment visibility and performance?

A

Integration links OMS, WMS, TMS, and CRM data in Power BI dashboards.

Shows real-time metrics like:
* Avg. order cycle time
* Cost per order
* Delivery reliability
* Labour productivity
* Return trends

Managers can identify bottlenecks early (e.g., rising cycle times) and act quickly to maintain service levels.

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15
Q

What financial metrics are used to evaluate automation investments, and how are they calculated?

A

Return on Investment (ROI):
ROI = (Net Gain from Investment ÷ Investment Cost) × 100
→ Measures profitability (%).

Payback Period:
Payback Period = Investment Cost ÷ Annual Cash Inflow
→ Measures how long it takes to recover the initial investment.

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16
Q

How have Singapore companies applied technology in fulfilment operations?

A

YCH Supply Chain City: ASRS, Data Hub → +30% throughput

Ninja Van: AI route optimization → −20% fuel cost

Amazon SG (Joo Koon): Vision-guided robots → 99.9% picking accuracy

Shopee Xpress: OMS + Data Analytics → −25% lead time

ST Logistics: IoT warehouse sensors → 98% inventory accuracy

➡️ These examples show how Singapore firms use automation and analytics to improve efficiency and accuracy.

17
Q

What is the main takeaway about modern e-commerce fulfilment?

A

E-commerce fulfilment = data-driven, strategic process

Each stage (inventory → delivery) adds value, speed, efficiency, quality

Technology replaces manual work → real-time decisions, lower costs, transparency

Integration of OMS, WMS, TMS, BI = essential for competitiveness in Singapore

Professionals need operational + analytical skills

Goal: build systems that are faster, smarter, sustainable

18
Q

How has the growth of e-commerce changed fulfilment operations?

A

Shifted from simple back-end logistics to a strategic function

Became central to customer experience and competitiveness

19
Q

Why is order fulfilment now considered strategic?

A

Directly impacts customer loyalty

Influences profitability

Shapes brand reputation

20
Q

What drives strong e-commerce growth in Singapore?

A

High digital literacy

Government innovation support

Advanced infrastructure

21
Q

Which major platforms operate large-scale e-commerce in Singapore?

A

Shopee

Lazada

Qoo10

Amazon.sg

22
Q

What supports real-time fulfilment behind e-commerce platforms?

A

Warehouses

Technology systems (WMS, OMS, TMS)

Logistics partners

Data analytics platforms

23
Q

Why is data synchronization important in modern fulfilment?

A

Aligns digital orders with physical operations

Improves decision-making

Reduces cost and errors

Enhances delivery speed and service quality

24
Q

What happens from “buy now” to doorstep delivery?

A

Each step generates data

Data boosts accuracy, efficiency, and continuous improvement

25
Why is e-commerce fulfilment considered strategic?
Data-intensive discipline Directly adds value to the supply chain Improves efficiency, speed, and service quality
26
How does technology improve fulfilment operations?
Replaces manual work Enables real-time decision-making Optimizes costs Provides greater transparency
27
Why is system integration important in Singapore?
Highly connected logistics environment Integrates OMS, WMS, TMS, and analytics Ensures competitiveness Supports faster and accurate fulfilment
28
What skills must professionals have to manage modern fulfilment?
Operational expertise Analytical capabilities Ability to design faster, smarter, and sustainable systems