Embed Size (px)
Citation preview
Request for Proposals:ERP Software Implementation
Issued by: Kevin Johnston
Company: Funky Chunky Furniture Limited. Address: Unit 10 Rolling Mill Road,
Jarrow,Tyne & Wear,NE32 3DP.
Copyright and Confidentiality Statements
This document is for the sole use of the recipient. Permission is required from Funky Chunky Furniture Ltd prior to disclosure to other parties. Neither the whole nor any part of this document may be reproduced or transmitted, in any form or by any means, except in a document replying to this project specification.
The information contained in this document is confidential. All intellectual property, business plans, product intentions, documents, methods of operation and information relating to the same for the purpose of conducting discussions or undertaking work, and the systems, procedures and products developed through the award of the contract will remain the property of Funky Chunky Furniture Ltd Organisations providing proposals for the project may be required to sign such a confidentiality undertaking. The successful developer will also acknowledge all Intellectual Property Rights to Funky Chunky Furniture Ltd in the contract for award of the project.
It is to be understood by the proposing organisations that no fees are payable by any party in the Project Proposal Request process.
Introduction to Funky Chunky Furniture.
About UsFunky Chunky Furniture started up in South Shields, North East England, in early 2013 with the view of creating top quality solid wood furniture for everyone to enjoy. From our humble beginnings, operating part time from a garage and making only one or two shelves per week, to then growing into a small workshop, providing our rustic furniture across the UK and parts of Europe.
Due to our rapid growth the small workshop became too small and we have now expanded into a much larger workshop, just up the river in Jarrow, Tyne & Wear. This grants us the capabilities to generate more jobs and create more new products. With our last year showing turnover of £1.3M we are now looking to further develop our own brand, as well as scale up our internal capability over the next 3 years.
What We DoAs the name suggests we do some hopefully funky and definitely chunky furniture, manufactured by our own joiners in our own workshop based the North East of England.
Whether you’d like some rustic living room furniture or chunky bedroom furniture we are sure to have something to suit your needs. Our current product range includes the likes of coffee tables, TV units, dining tables, bed frames, chests of drawers, floating shelves and mantels, with more items and lines to be added in the not too distant future.
Our TimberThe main thing needed to create chunky furniture is chunky wood. The chunky timber we choose is full of beautiful rustic character and features that make each piece truly one of a kind, so you can be sure that no one else will have anything identical to your own.
To make our furniture we use solid pine or solid oak. The pine is used to make the majority of our products, including coffee tables, dining tables and bed frames and the oak is used only to make our oak shelving and mantels. Check the item description of each product if you aren’t sure.
Things We're Proud OfWe use an independent review collection service, called Feefo, which allows our customers to leave service and product reviews. In February 2018 we were awarded Feefo’s most prestigious accolade, the Gold Trusted Service Award (following on from being awarded their previous highest accolade in 2016, the Gold Trusted Merchant, and the Gold Trusted Service Award in 2017).
To win this award companies needed to have collected at least 50 reviews in 2017 and achieved a service rating of at least 4.5. We collected 559 reviews with a service rating of 4.9, thanks to our wonderful customers!
Not only that, but in our short time we have also had products featured on national TV - Peter Andre's 60 Minute Makeover - and in magazines - Grazia and Your Home.
Who We Work WithOther than supplying direct customers with our chunky wooden furniture we have also worked with plenty of stores, designers and business owners to meet their own work needs.
This involves the likes of large department stores, small shops and mostly local and national stove and fireplace fitters, who constantly return for our solid oak shelving, mantels and rustic floating shelves.
For more info visit our website: https://www.funky-chunky-furniture.co.uk/
DEADLINE INFORMATION:We would request that companies receiving this proposal submit a response and a costed quotation by 12noon on Friday 3 rd May 2019.
a) About the project/ backgroundWe are currently reviewing the operational processes within the business, principally to increase the effectiveness of our internal teams and to ensure that we are operating as efficiently as possible as we are entering a significant period of growth. This has meant that we are looking to automate the bulk of our back-office processes as levels of customer service will need to increase to be successful in our own-labelled ranges. Current state processes have recently been mapped and are included within this specification.
b) Expectations of an integrated software solution.
Financial: Our main financial software is a customised version of Xero. We now believe that the existing systems are no longer fit for purpose and are not flexible enough to satisfy our requirements. From a financial perspective we find it difficult to monitor ongoing profit across multiple channels, products and customers so require further transparency within this.
Sales and Order Cycle:We are also using a software called Channel Grabber in order to bring the various on-line channels (Amazon, Ebay as well as our own web orders) together to support our ability to manufacture. This system can get to point of a list of todays requirements but cannot be integrated beyond this point. This has meant therefore that we are using a number of spreadsheets for main internal operational control and duplicating information across the business. We therefore are interested in looking at CRM systems which may become more important as we move forward with our brand development.
Also we see that a CRM could provide support for campaigns success, and ability to integrate with a sales order process and customer service area who may take manual enquiries on telephone, or by others attending site.
The ability to move from Quote to Sales Order in one click is preferred (for the B2B element of the business). This will become very important in the future developments.
Operations:
We currently manufacture approximately 22,000 shelves per year, and plan to increase the business outside of these as we move forward thus looking at mixed model planning for ranges as well as the shelves.
We would like to produce on a back-scheduling basis from delivery date backwards.
Procurement: We currently purchase all our wood and store it on-site, but have limited inventory control (as our systems do not currently allow it). Large spends need to be approved at a Senior level in the business. We would like to improve our procurement by having it set from improved scheduling and planning - MRP.
Stock is manually checked on a monthly basis. We do / do not operate an identification system for locations in the Warehouse area or in our buildings.
All stock is picked from goods in stock, processed then placed into a finished goods stock where they are individually packed. These are then picked and packed for a customer as required.
We have a very basic manual system of raising purchase orders on Xero but again this does not then link to anything, creating duplication.
Planning & Scheduling: There is no real scheduling and planning being completed beyond a spread-sheet based system which is in its infancy. We have very informal bills of material and a base understanding of our routings but again we believe an integrated system can ease this. Capabilities are in terms of labour (and their various skills). Most operations are related to individual skill-sets therefore these are a constraint on our scheduling. We wish to continue the development of labour, but also need to deploy these individuals in an efficient manner.
We would like to expand looking at RFID / Barcoding within production but need to align to a system in the future.
The potential to clock in and off a machine by an operator would be interesting in providing real standard times to both educate plan but also to keep a real track on downtime. This maybe a separate system to ERP but something that ideally we could integrate.
In future, there maybe a requirement for the organisation to run shifts also.
Business Processes & InformationProcess maps can be found at the rear of this document.
FCF Current State FCF Future State (this is a top level review of key requirements
only and not meant to stop good ideas from potential ERP partners).
We are keen in the future to explore the possible integration of Forms software, where we can design bespoke forms to input data into ERP and also export (near real time) data into third party Business Intelligence software. Please advise of your software’s integration potential with such solutions.
In the future we would like to look at investigating the possibility of allowing customers to securely login via our website to a ‘Customer Portal’ allowing them to e.g. Share documents/ change requests with us and receive invoices.
Design DocumentsWe would like explore, in future, how our Design software Solidworks may be able to be automated and integrated in the development of products and BOMs etc…
Employee Training and Certification for WorkWe are required to ensure our employees have the correct certification before undertaking complex production work and as such, are required to keep training records and also copies of any certificates issued.
Board / Management ReportsWe are required to report on a quarterly and annual basis with management reporting monthly.
Process Map – Current State.
System Requirements
Senior Person responsible for Production Name: James BrandPosition: Operations Director
No. of Users of the system and roles Total Number of users: 4 full users initially and other users with specific access, upto a total of 10 overall.
Systems Architecture
Web browser support (if applicable) Not applicable currently however future development.
PC & LAN requirements (if not hosted) No server facility on site.
Server Operating Systems and specification requirements (if not hosted)
See above LAN.
Offline client (if hosted) Sea above web browser.
Software Support
Provide complete turnkey on-site implementation and project management support
Turn-key solutions but not ongoing project management (as this can be provided locally).
Software support inclusions – please provide a copy of your Support T&C’s upfront
Training for super-users required.
Provide future software releases and updates to all applications as part of regular software maintenance fees
Maintenance contract to be quoted separately.
Support availability within UK office hours n/aSupport for increased numbers of users n/aSupport ODBC (Open Database Connectivity) protocols for data access
n/a
System Security
User Management- Customisable Roles with ability to
restrict access to specific data/ datasets
Yes
Online Access Security and Authentication (if applicable)
Yes.
Customer Information Requirements
Customer contact details StandardMultiple delivery addresses per customer B2B retailers & drop-shipment.Order history Upto 10 year (for own brand
products).Unique customer number Yes, B2B – retailers.
Recording of all correspondence (phone, email, letters, linked to Office365?)
CRM phase – will be needed but not immediate.
Estimating Requirements
Access to historical data on manufacturing operations to ensure profitability
Customer – yes. Operationally – yes for efficiency.
Saved price-lists, quotations and variations flexibility
Yes.
Unique quotation number, related to customer
Yes.
Multiple pricing and quantities per operation/ project
Yes.
Ability to add margin to items, operations YesAbility to attach documents of any type e.g. CAD, standard or custom T&C’s, Completed PQQ copy
CRM – B2B requirement as this is developed (own brand).
Ability to easily create simple overall estimate for the customer, to be sent as PDF via email (or access from own or specific Customer Portal), based on simple requirements.
Develop standard product list and pricing to align this to.
Ability to send estimate in different currencies (£, $, €)
Yes, £ & Euro.
Approval routes for estimates above value X (may be several people involved)
B2B – credit checks etc…
Quick conversion to Sales order Yes.
Sales Requirements
Sales Order ProcessingUnique Order number YesMultiple items/ operations available in one order
Yes
Automated updating of financial ledgers YesStandard pricing and discounting available
Yes
Sales Currency flexibility £, $ and € YesCustomer credit summary (link to Finance system payments)
N/A currently.
Customer Delivery Data e.g. dates, time slots
Yes.
Automated invoicing according to pre-agreed payment schedule
No.
Approval routes for high value sales No.
Purchasing Requirements
Purchase Order ProcessingUnique purchase order number, related to supplier
Yes.
Raw materials e.g. X WoodBought-in parts Fittings, metalwork etc…Consumables Fixings, pallets etc…
Sub-contract operationsApproved Vendor List (Name, Address, Bank Details, T&C’s) – linked to part numbers - and New Supplier application process
Yes
Access to historical data on purchases per part and per supplier
Yes
Ability to identify late deliveries Yes, in reporting.
Ability to identify purchasing requirements from existing orders(more detail required including alternatives?)
Yes.
Identify multiple potential suppliers where possible
Yes
Approval routes for high value purchases – should only receive Purchase Requisitions that are pre-approved
Yes
Inventory Control Requirements
Input for Bill of Materials generated from SO
Yes
Ability to understand part relationships – output from CAD (Solidworks)
No
Raw Material specifications and alternatives
B2B in the future.
Parts specifications and alternatives – identify parts by unique part number (provided by CAD)
Nice but not essential.
Produce Picklists for jobs Yes.
Estimated stock demand related to production plan and production schedules/ sub-schedules
Yes, MRP.
Full production traceability ref. ISO9001 or other standards
Yes.
Cost of materials/ parts to job sheet Not jobsheet, but access within inventory system.
GRN/ Delivery Note input Yes.
Ability to allocate stock to a job operation Yes.
Stock reporting- Item usage analysis- Stock valuation- Stock location- Stock audit – missing items- Kanban Min/Max rules- Expediting report – show all
goods due to be delivered from specific suppliers for specified date range
- Late deliveries from supplier
YesYesYesYes, list of stocked items.No.Yes.
Yes.
- Goods rejected through NCR(Refer to Returns process)
No.
Automated re-order level trigger to purchasing – minimum stock level for specified items
Yes.
Production Control Requirements
Production instructions/ routing for each standard product.
Yes
Related specifications, descriptions for products.
Yes
Generation of work order related to sales orders, including analysing actual vs forecast costs, times, processes. (Capacity plan to schedule link).
Yes
Defining of resource codes for items of machinery
Yes
Final test and inspection process and sign off by X
Yes, final QC.
Management of re-work to minimise cost Yes, offcuts for example.
Version control for latest CAD files from Design – linked to job/ works order
No.
Shop Floor Data Collection Requirements
Barcoding of scheduled job operations, linked to labour, materials and machine operations cost
Yes, but not initially
Real time visibility on shop floor operations/ WIP
Yes, but not initially
Production Scheduling Requirements
Available capacity calculated automatically but flexible enough to be manually changed easily
Yes
Capacity relating to labour, parts and materials availability, lead times and machine operation
Yes
Job Schedule based on a calendar view vs resources (capacity plan).
Yes
Ability to drill down and see elements of each job, purchase order, sales order
W.O and Job sheet (router).
Viewing of a real time production schedule on a large screen on shop floor
Yes.
Customer enquiries on job progress are easily answered
Yes.
Job Costing Requirements
Detailed job costing information available on all aspects of jobs
Yes.
Ability to identify jobs by profitability/ other factors…
Yes
Job costing and time comparisons between quotation, planned and actual – flags for large variations
No.
Availability easily calculable and forecast able to be generated using historical data
Yes, but product mix considerations too.
After Sales Service Requirements
Refer to Returns processIdentification of any after-sales issues Yes.Identification of issues: warranty or out with warranty
Yes.
Time and resource deployed to resolve issues
No.
Information feedback to Design/ Planning, Production etc.
No.
Customer Online Helpdesk - Trouble tickets
Yes,
Customer Service Activity & Quality Reporting thru Customer Service Monitoring e.g. How did we do? Give feedback
Yes.
WARRANTY ISSUESLogin to Online HelpdeskRMA No. issuedJob number notedAutomated ‘Thank you for submitting your ticket, ticket number etc’Closing of the ticket triggers an answer and How did we do?
No.
Organise Courier at XSend Tracking ID to client via email
Yes.
Provide productivity reporting of customer service metrics including time spent per call, # of calls per day, calls by type (e.g. return, order, product questions), etc.
No.
Provide ability to manually override restrictions on shipment of replacement items until original unit received
Yes (as an option)
Provide ability to enter receiving destination for third-party items requiring RMA (e.g. receive to stock or receive to repair)
N.A.
Maintenance
Provide ability to include maintenance and calibration tasks and activities (with expected start and finish times) in the production schedule
Potential as business grows.
The maintenance and calibration tasks must be planned and constrained by available capacity with production and other activities and maintenance parts
Potential as business grows.
Record labour and material consumption for maintenance and calibration with associated costs
Potential as business grows.
Provide ability to record history and statistics by line by machine by device for analysis
Potential as business grows.
Quality Control Support online entry to record quality information (e.g. items accepted, reworked, rejected, returned) and support electronic routing process/ email for required approvals
No.
Support problem resolution logging by unique part number
Yes.
Provide QC SOP's and sampling process. No.
Provide integration of all quality related data generated within multiple departments to be stored within one system
No.
Provide electronic time, date and inspector initial stamps for automated documentation within the system for the inspection process
No.
Forecasting Support horizontal forecasting with equal amounts for each period
90 days.
Provide ability to override forecast based on planner judgement
Yes
Provide ability to calculate standard deviation of the demand for an item over the lead time
No.
Calculate safety stock based on prior history of fluctuation from forecasts
No.
Print projection summary report showing aggregate projections over future years in units and standard cost for each product line, value class, or life cycle code
Yes. Business Intelligence.
Accounts Receivable Ingegration with Xero.Support for sales history tracking YesCalculate multi-level finance charges Yes.Calculate sales margins from invoices Yes.Support entry and processing of customer deductions, recording reason and customer debit or credit memo number
Yes
Provide option to print user-defined text on customer statements
Yes
Accounts Payable Support automatic assignment of vendor numbers
N/A
Ability to handle multiple divisions as separate entities with divisional and corporate-wide reporting
N/A
Track MTD and YTD total payments for current and prior year by vendor
Yes.
Print report of vendor invoices that exceed purchase order terms by user-defined criteria (e.g. price is 10% higher)
Yes.
Print trend analysis report showing summary of activity for current month, last twelve months, and YTD by vendor
Yes.
General Ledger Integrate with XeroProcess multiple general ledgers for multi-entity organisations
N/A
Maintain, analyse and report general ledger data for twelve or thirteen month periods
Yes.
Retain budget, actual, statistical and dollar amounts for 24 months of historical data
Yes.
Compare current month and YTD to prior year's month and YTD (and variances) on revenue and expense reports
Yes.
Supports uploading of data from standard file formats to general ledger system
N.A.
Fixed Assets Integrate with Xero.Support 12 or 13 period fiscal year Yes.Provide user-definable asset coding scheme by function, services, structure, cost centre, or operational group
Longer -term.
Maintain cost of improvements to existing assets as component of asset value
Longer-term.
Print asset recap showing cost, salvage value, accumulated & current depreciation, and book value
N/A
Maintain manufacturer data including serial number and model number in asset master file
N/A
Reporting Requirements
Production Effectiveness
Manufactured products, sub-assemblies and assemblies reports
Overall WIP reporting
Overall re-work analysis
General SFDC reports
including labour used/ cost per job
Customer requirements vs actual production reporting – On time in full delivery
Customer ReportingCustomer sales per month, per year, to date
Customer profitability per month, per year, to date
Campaign reports.
Sales order arrears
On time in full customer delivery performance
Supplier ReportingPurchase order arrears
Purchase order summary & spend.
Products ReportingSales reports per product per time periods
Product profitability reporting
Overall company reportingSales per month, per year, to datePer W.O. and all operations profitability per month, per year, to date
Proposed Software Recommendation
DescriptionBidders should describe the recommended solution in detail, including the following:
Product name(s) Primary features and benefits First release date Next release date How many sites are currently using the proposed system
Solution PricingBidders should provide detailed, pricing for all items included in the proposal. This should include an item description, quantity required, list price. Support services, professional services, integration, customisation and any travel or other costs should be identified separately. Identify any staging of costs e.g. deposit.
Annual maintenance costs should be identified as separate charges.
Total Cost of OwnershipWhat is the estimated five year total cost of ownership for the proposed solution? Please provide details of your calculation process.
Information SecurityDetails should be provided on how the company and software provide information security and protection against any threats. All data should be stored in the UK and subject to the UK legal system.
Implementation OverviewProvide a brief overview of your professional and integration services.
Methodology and ToolsInclude a description of your methodology, tools used to manage the project, change control procedures and common communication methods if applicable.
Project TimelineIdentify overall time and key dates for completing this project.
Project TeamProvide a biography of all key employees to be assigned to the project. Identify required resources from Funky Chunky Furniture Ltd.
Training ServicesDescribe your company’s training services and methods for delivering training. Is training curriculum tailored to implementation specifications or is it generic?
Customer Support Describe your company’s ongoing support and services. What are your support hours? Where is support based? Average
response time? Type of issue tracking system? Availability of on-site support and troubleshooting? Average response times for bug fixes and enhancement requests? How is documentation provided?
Business ContinuityPlease outline any IT requirements that will allow the system to be available in a 24/7/365 timeframe. If the data would be required to be inputted to a new (different) IT system in the future – how would this be achieved in practice?
ReferenceList at least 2 client references.
Include the company name, contact name and title, phone number, email address and brief project description for each reference.
References must be willing to discuss the technical and performance aspects of the installed solutions(s) with Funky Chunky Furniture Ltd.
Selection ProcessThe tender selection process will be determined by a scoring process. We will be evaluating suitability, future proofing, value for money, implementation allocation time, and compatibility with our preferences.
The tender will be awarded according to the following criteria: Criteria WeightingSustainability 20%Future proofing 20%Value for money 20%Implementation time 20%Compatibility with our preferences 20%
This project is supported by the European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020.
