Evaluating the erp requirements against one another

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Reference no: EM133800176

Assignment Instructions

Part 1: RFP Prep and Issuing
Contoso, a small golf ball manufacturer, successfully managed its supply chain in-house using basic tools like spreadsheets and accounting software. However, a new deal involving a multinational retailer, Contoso's production demands could increase by 10 times.

Contoso has identified two 3rd-party suppliers located in Sweden and Japan to provide parts for the golf balls.

As a new hire to Contoso and a recent graduate of SaskPolytech Supply Chain Management program, your job it is to help build Contoso's supply chain to meet current and future demand.

You have been asked to prepare an RFP (Request for Proposal) for an ERP system.

Senior management expects a written report that outlines your approach.
You will also prepare a presentation to share your analysis and final recommendation.

Report Requirements:
Departments to Consult: Identify the departments (HR, Finance, Sales, Production, etc. Get Instant Help!) you will talk to.

Departmental Requirements: Document 5 key requirements for each department, explaining why each requirement is critical to the department's operations and overall business goals.

Evaluation Criteria: Develop a weighted rubric for evaluating the ERP requirements against one another. Explain why each criterion is weighted the way it is.

Organizational Change Management (OCM): Propose strategies to:
Gain executive buy-in
Ensure smooth adoption of the new technology

Presentation Requirements:
Duration: 7-10 minutes
Provide a short analysis of your report findings (2-3 minutes).
Focus the majority of the time (5-7 minutes) on providing an in-depth overview of the recommended ERP solution, explaining why you chose it. Emphasize the benefits, any trade-offs, and how the solution addresses the company's key challenges.

Part 1: additional information:
John Johnson, is notoriously resistant to change and is currently happy with the state of his supply chain management using the basic tools.
Contoso had a stroke of good luck and struck a sourcing deal with multinational Golfing retailer.
Given the size and frequency of the order Contoso knows that they will not be able to produce the volume of golf balls necessary and have identified two 3rd-party external producers.
One will supply the core of the golf ball and is in Sweden.
The other is the maker of the golf ball's outer shell and is in Japan.
These components will be shipped to Contoso HQ and assembled on site and shipped to stores from there. If this roll out with the Golfing retailer is successful, and assume it will be, Contoso will have production volumes 10x current.
Contoso has HR, Finance, Sales, Production units

Part 2: Cost-Benefit Analysis
Use the provided cost and benefit details to perform a cost-benefit analysis over a 5-year term. You are expected to provide:
A table of project costs
A 5-year cost projection
A 5-year benefit projection
A comparison of costs and benefits
A recommendation for which ERP solution Contoso should choose

Company A: ERP Implementation Project 1
- Will be implemented on site at the Contoso head office. Will require the purchasing of $150,000 of hardware to operate properly.
- The software has a yearly license cost of $50,000 with no user limits
- Company A will be on site at Contoso HQ to install/configure its ERP for 8 wks for $30K.
- Contoso also decided to bring in Company A's org. change consultant for the same 8-week duration to help employees embrace the change the ERP will bring. This costs $20K.
- Company A also suggested other customers budget $10K a year for misc. maintenance
- It is expected that with Company A's ERP there would be a decrease in the number of HR people needed. This is expected to be a savings of $150,000 a year
- It is expected Company A's ERP will greatly improve demand forecasting. This should reduce carrying costs significantly. This is expected to be a savings of $1,000,000/year.
- Through overall efficiencies and improvements effectively utilizing Company A's ERP Contoso is expected to expand revenue by $3,000,000/year

Company B: ERP Implementation Project 2
- Implementation will take place in the cloud and is offered as Software as a service. So, there is no explicit hardware costs however there is a licensing fee of $200/user/month to access the service.
- Contoso is expected to need an average of 100 people licensed for the ERP solution.
- To improve response time of the solution, Contoso would have to upgrade its internet connection which would cost $1200/month.
- It is expected with Company B's ERP Warehousing software, Contoso will be able to use one less warehouse. This is expected to be a savings of $1,500,000/year.
- It is expected with Company B's ERP Warehousing software, Contoso will need 3 fewer accountants. This is expected to be a savings of $250,000/year.
- Through overall efficiencies and improvements effectively utilizing Company B's ERP Contoso is expected to expand revenue by $2,750,000/year

Reference no: EM133800176

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