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eCommerce Supply Chain Introduction. Dr. John P. Abraham UTRGV. Definition. Management of flow of goods (services) from raw material to production to distribution to customers Raw material suppliers ManufacturerDistributorretailerCustomer
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eCommerceSupply Chain Introduction Dr. John P. Abraham UTRGV
Definition • Management of flow of goods (services) from raw material to production to distribution to customers • Raw material suppliersManufacturerDistributorretailerCustomer • Included is flow of money and information in all directions • Also included merchandize return
Integral to supply side management • Transportation • Warehousing • Service • Time (efficiency)
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
Resource utilization • Manufacturing • Storage • Loading, trucking, etc. • Personnel
Financial matters • Cost of raw materials • Material handling, manufacturing costs • Inventory holding cost • Transportation cost • Cost of errors • Returned goods • Revenue for goods sold
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
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
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