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eCommerce Supply Chain Introduction

Learn about the flow of goods and services from raw materials to customers, the integral role of transportation, warehousing, and time efficiency, as well as resource utilization and financial matters. Understand how IT is involved in reducing costs, optimizing inventory, and enhancing productivity through software tools. Explore key components of Manufacturing Resource Planning (MRP) and Enterprise Resource Planning (ERP) software.

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eCommerce Supply Chain Introduction

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  1. eCommerceSupply Chain Introduction Dr. John P. Abraham UTRGV

  2. Definition • Management of flow of goods (services) from raw material to production to distribution to customers • Raw material suppliersManufacturerDistributorretailerCustomer • Included is flow of money and information in all directions • Also included merchandize return

  3. Integral to supply side management • Transportation • Warehousing • Service • Time (efficiency)

  4. Customer service level • How much stock is needed to satisfy customer needs • Sales lost because of not having enough stock • Backorder • Consider: • Raw materials on hand • Work-in-progress (unfinished) • Finished goods • Spare parts

  5. Resource utilization • Manufacturing • Storage • Loading, trucking, etc. • Personnel

  6. Financial matters • Cost of raw materials • Material handling, manufacturing costs • Inventory holding cost • Transportation cost • Cost of errors • Returned goods • Revenue for goods sold

  7. How IT is involved • Cost reduction • Just in time inventory • Increased productivity using tools and software • New ways of customer acquisition • Other • Barcode • Enterprise Resource Planning (ERP) software • Data warehousing • Big data analysis

  8. Manufacturing Resource Planning (MRP) software • Plan and calculate material requirements • Coordinate personnel and machines • Optimally plan purchasing • Inventory and production scheduling • Components: • Master production scheduling • Purchasing planning • Demand forecasting • Shop floor control • Equipment maintenance scheduling

  9. Enterprise resource management (ERP) • Suites of tools including limited MRP • MRP is narrow but highly specialized • ERP handles and organizations data management including accounting. Genius ERP, Oracle ERP, Microsoft Dynamics GP, SAP ERP • MRP software: • NetSuite (ERP and MRP) • IQMS • Fishbowl • SAP • QAD

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