Proposed Solution for Karnak Supply Company

1
Proposed Solution forKarnak Supply Company

• ProTek Presenters
• Jim Clarke
• Jim Hildenbrand
• Ryan Schussler
• Rick Wise

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Fellow Team Members

• Will Clark
• Teresa Costante
• Natalie Gendelman
• Steve Hark
• Shawn Johnson

• Antony Kravchuk
• Nikesh Patel
• Paul Philips
• Dave Weber

3
Agenda

• Introduction
• Problem Overview
• Project Description
• Business Process Reengineering
• Solution Details
• Prototype Demonstration
• Lessons Learned
• Question and Answer Session

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Introduction

• Karnak Supply Company (KSC) presently operates as
  an inventory based warehouse located in a major
  northeastern city.
• KSC lost its facilities due to eminent domain.
• Liquidation of company assets.

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Problem Overview

• Decided to move to a electronic order entry
  system.
• This includes the creation of a new enterprise
  resource system
• Earn government funding by employing at least 50
  handicapped persons as customer service agents.
• Develop relationships with both suppliers and
  customers to increase profitability.

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Project Description

• Develop Electronic Order Processing System
  Prototype
• Customer Relations Management
• Enterprise Resource Planning
• System Solution Documentation
• Functional and Technical Overview
• System Capabilities
• Security Considerations
• Cost Overview

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Business Process Reengineering

• Limitations with existing concept of operations
• Reengineer the existing business process
• Reduce limitations of existing business process
• Standard Reseller Distribution Operation
• More effective and efficient operating
  environment

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Existing Concept of Operations
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Business Process Reengineering Existing
Operations

• Advantages
• Not responsible for handling invoicing and
  customer payments
• Less Business Responsibilities
• Limited responsibility in accordance to Sarbanes
  Oxley accounting standards

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Business Process Reengineering Existing
Operations

• Disadvantages
• Contractual Competition causes limited vendor
  selection for competition
• No direct control over prices
• Seen as one business entity rather than a
  separate business entity from supplier
• Generate starting capital and credit through
  creditors cannot be established (or is limited)
• Since under a contract with one vendor, high risk
  of job stability
• Limited future growth
• Because of lack of competition, may lose
  customers to competition

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Proposed Concept of Operations
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Business Process Reengineering Proposed Solution

• Concept of Operation Breakdown

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Business Process Reengineering Quotation Process
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Business Process Reengineering Order Processing
Breakdown
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Business Process Reengineering Billing Process
Breakdown
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Proposed Concept of Operations

• Advantages
• Suppliers competition can be used towards
  companys advantage
• Ability to control pricing (shop around for best
  vendor pricing)
• Seen as separate entity from vendors. (Now
  considered reseller of products)
• Better ability to establish startup capital and
  credit from creditors
• Greater room for future organization growth
• Greater job stability
• Control Profit (not being paid on commission)

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Proposed Concept of Operations

• Disadvantages
• More business responsibility
• Have to follow accounting standards and processes
• Customer invoicing and payments must be tracked
• Need to establish vendor contacts and research
  product availability

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Business Justification for Proposed Solution

• Preliminary Solution Package identified as BS/1
  and Paradox Integrated.
• Encountered Difficulties
• Poor interface design
• Integration problems
• Poor customer service
• Flat-file data storage

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Business Justification for Proposed Solution
(continued)

• Major integration issues
• Purchase Order and Accounts Payable Modules
• No reference between purchase order and bill
• Risk of human error during Data re-entry
• Difficult referencing a particular bill to
  original purchase order

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Solution Details

• The system will utilize Commercial Off The Shelf
  Software (COTS) called Compiere
• Open Source ERP Software with integrated CRM
  Solutions
• Compiere provides a comprehensive solution for
  small-to-medium sized enterprises in distribution
  and service on a global basis and covers
• Supply Chain Management
• Customer Management
• Accounting Modules

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Solution DetailsFunctional Overview
Source http//compiere.org/functionality/qtc.htm
l
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Solution DetailsRequisition-to-Pay
Source http//compiere.org/functionality/rtp.htm
l
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Solution DetailsCustomer Relations
Source http//compiere.org/functionality/crm.htm
l
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Solution DetailsPartner Relations
Source http//compiere.org/functionality/pm.html
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Solution DetailsSupply Chain
Source http//compiere.org/functionality/scm.htm
l
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Solution DetailsPerformance Analysis
Source http//compiere.org/functionality/pa.html
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Solution DetailsWeb Store/Self Service
Source http//compiere.org/functionality/ws.html
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Solution DetailsCost Analysis
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Solution DetailsCost Analysis
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Technical Overview

• Compiere Specifications
• Server Specifications
• Client Requirements
• Remote Access
• Security Considerations

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Technical OverviewCompiere Specifications

• Open Source Solution
• Customizable Modules
• Built Using Java Technologies
• Oracle 10g Database
• Broader Database Support in Future
• Compiere Support Solutions Available

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Technical OverviewServer Specifications

• Dell PowerEdge 2800 Server
• Microsoft Windows 2003 Server Standard
• Includes Oracle 10g SE1 Database with 10 CALs
• MailEnable Standard e-mail Server Software
• Java Development Kit (JDK)

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Technical OverviewClient Requirements

• Windows 2000/XP Recommended Windows 98/ME and
  NT4 at a Minimum
• Java Runtime Environment (JRE)
• Compiere Client Application
• High-speed Internet Connection with Firewall
  Router

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Technical OverviewRemote Access

• VPN connectivity
• L2TP/IPSec Protocol

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Technical OverviewSecurity Specifications

• L2TP/IPSec
• EAP-TLS Certificate and/or Smart Card
  Authentication
• IPSec 168-bit Triple DES (3DES) Encryption
• Remote Access and Corporate Network Policies
• Logging
• Routers with Built in Firewalls and Intrusion
  Detection

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Prototype Demonstration
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Lessons Learned

• Customer Relations
• Project Management
• Time Management
• Overcoming obstacles
• Systems Analysis Procedures
• Software Evaluation and Testing

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Questions