The Order Assignment Among Couriers For Small-medium E-commerce Company R

With the rapid development of e-commerce，more and more small-mediumsize enterprise and brands come into the competition in e-commerce business,and they wish to take market presence and share the interest cake. Among them,there are many foreign companies and brands which had never been come intodomestic market. The dramatic increase of e-commerce business also moverelated logistics development forward, including the warehousing, distributionand system management. During the process, they face many challenges. To mostsmall-medium size e-commerce companies who focus on brand image as well asconcerns about logistics cost, it is a unavoidable question for them to answer howto select suitable couriers, how to assign them orders from different channels,different areas with different requirements, how to link their performance withassigned order quantity and motivate them to increase the efficiency meanwhileto decrease the cost.Domestic Couriers are various greatly in domestic market. Many couriershave big different in coverage area, distribution timeline, distribution cost andquality, also they have different value-added services and market reputation. Thearticle firstly analysis courier market situation, and introduce currentsmall-medium e-commerce company order assignment status, then takingCompany R as an example to analysis e-commerce company requirements tocouriers, based on the theory of supplier evaluation factors and performanceindicators, select proper couriers for R, finalize the dynamic KPI and relatedcalculation method, which is very important to supplier management.The core part of the article is to study the order assignment solution based oncouriers KPI. Firstly to list factors which will impact the order assignment, thenestablish the initial order assignment model based on the analysis of each factorfrom two part of order itself and courier characters. Then to calculate theweighting with AHP and statistical averaging method, build up the orderassignment model and set it into OMS or WMS to assign orders automatically insystem. Finally to verify the model with actual orders of company R. The biggestinnovation point is that in this model, couriers’ order allocation linked with their KPI directly and dynamically, which makes couriers to improve theirperformance actively to get more orders. This has not been shown in other orderassignment solutions.Finally， the article summarize the order assignment solution as well as themodel built with some areas to be improved. Based on the distribution cost trendof company R in first half of2014, the order assignment solution and model wasverified to be valid and effective. With small adjustment of some parameters, theorder assignment model can be used to most small-medium e-commercecompanies as guide and reference.