Myers Inc. is a new training apparel and footwear retailer based out of New York.
They use Shopify as their e-commerce platform and Netsuite as their ERP. Their manufacturers are based in China and they distribute internationally to their customers.
Myers Inc. does not own any physical warehouses instead they use a 3rd Party Logistics company called ABC Logistics to store, receive and ship inventory. There are 5 ABC Logistics sites that service Myers Inc:
– ABC New Jersey (shipping to North American East Coast customers)
– ABC San Mateo (shipping to North American West Coast customers)
– ABC Medellin (shipping to South American customers)
– ABC Frankfurt (shipping to European customers)
– ABC Melbourne (shipping to Asian customers)
Myers Inc. will issue purchase orders to their suppliers in China and the goods can be shipped to any of the 5 ABC sites for inspection and receipt. In addition to this, based on sales demands, inventory may need to be transferred between these sites to ensure supply.
All orders are received through the Shopify platform and all orders are prepaid via credit card. When an order is placed in Shopify, the order is retrieved into netsuite and based on the shipping address of the customer the order it is sent to the appropriate ABC site to fulfill. Once ABC site receives the order details (name, shipping address, item, quantity), they will fulfill the order and send a ship confirmation back to Netsuite including shipment details and tracking numbers. At this point the customer is notified of the shipment and associated tracking numbers.
– Netsuite is integrated with Shopify
– Netsuite is integrated with all ABC Logistics sites
– Please document a detailed process flow for the following scenarios:
o Sales to customers
o Procurement from suppliers
o Transfer of inventory between ABC sites
o In the sales process, at what point should the revenue be recognized?
o In general, the inventory in Netsuite should match the inventory at ABC Logistics, but when there are integration failures between Netsuite and ABC Logistics, the inventory between the two systems may go out of sync. For example, Netsuite could show 10 units of item X at ABC New York. But ABC New York may have received an additional 4 units from the supplier but the receipt confirmation message from the supplier might have failed getting into netsuite. Propose a method for daily inventory reconciliation between the two systems.
– You will be asked to present your process flow during the interview where the interviewer will ask targeted questions to test your knowledge.
The purpose of this case study is not to test your Netsuite/Shopify/3PL specific knowledge you may not be experienced with any of these platforms. We are looking to test your research and analytical skills given a set of requirements involving an E-commerce platform, ERP and a 3PL.
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