Order Fulfillment - Transportation Companies Get Involved

Leading transportation companies like United Parcel Service and FedEx began to play more involved roles in e-commerce during the early 2000s. Going beyond the delivery of packages, each company established business units focusing on the fulfillment aspect of e-commerce. UPS created a subsidiary called e-Ventures to identify, test, and launch new e-commerce-related businesses within the company. The first such business to emerge from e-Ventures was UPS e-Logistics, a business unit that offered clients "turnkey supply chain management solutions," by taking advantage of its transportation and warehouse networks. The services it offered included inventory management, shipping and delivery, warehousing, order fulfillment (pick, pack and ship), management reporting, customer care and telephone support, and returns management. UPS previously offered similar services to large corporate customers like Nike.com.

In May 2000, FedEx Logistics announced that its FedEx Supply Chain Services, a third party provider of supply chain solutions, had created FedEx eLogistics—a new division focusing on providing e-commerce logistics solutions to businesses. According to Doug Witt, then vice president and general manager of new division, FedEx Supply Chain Services helped customers to decrease cycle times, improve the management of returns, and lower fulfillment costs.