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ERP Software - Request forInformationPrepared By: Vincent GismondiEnterprise Resource Consulting8 Crescent Circle Holbrook, NY 11741Tel: 631-244-6160On behalf ofSample Company777 Executive DriveAnaheim, CA(714) 555-12341/17/2017Page 0

Statement of Requirements ERP Project 2016Project PurposeThe management team of Sample Company have authorized an investigation into replacement ERP softwaresolutions to support our business going forward. The purpose of this Request for Information (RFI) is to collectwritten information about the capabilities of a number of ERP vendors, to determine a shortlist of three to sixvendors to be invited to provide a full proposal.The Sample Company nominated team leader for the ERP selection project is:David [email protected](714) 555-1234I am their Independent ERP Consultant. RFI responses, questions, and communications related to this projectshould be addressed to me. I can be contacted as shown below:Vincent Gismondi Independent ERP Consultant8 Crescent Circle, Holbrook, NY [email protected] Tel:: is Request for Information (RFI) is issued solely for information and planning purposes only, and does notconstitute a solicitation. Responses to the RFI will not be returned. Responses to this RFI are not an offer andcannot be accepted as a binding contract. Sample Company is not liable for any cost incurred by the vendor inresponse to this RFI.Page 1 of 25

Statement of Requirements ERP Project 2016ContentsProject Purpose . 1Introduction. 3Our Timetable. 3Current Technology . 3User Listing . 4Project Objectives . 5Modules to be Implemented .5Phase 2 - Possible Implementations .5Timeframe . 6Requirements by Module - Overview . 7Accounts Payable .8Accounts Receivable .9Business Intelligence / Report writing .10Capacity Planning .11General Ledger .12Inventory Management .13Manufacturing Requirement Planning .14Product Quality (Quality Assurance) .16Purchasing .17Quotations & Estimating .18Repair and Service .19Sales Analysis .20Sales Order Processing .21Shop Floor Control .22Requirements – Additional Questions . 23The Software .23Your Company .23Financial .24Budget . 25Notes and Instructions . 25Page 2 of 25

Statement of Requirements ERP Project 2016Summary of Sample CompanyIntroductionSample Company (www.SampleCompany.com) is a repetitive job shop that fabricates metal parts for the plumbing,hydraulic, aerospace, and heavy truck and equipment industries. Sample Company has three manufacturingfacilities, encompassing three different companies, in the US, totaling more than 200,000 square feet, and operatesmore than 250 state of the art production machines. The facilities are located in Anaheim CA, Topeka KS, andSecaucus NJ. Sample Company machines large quantities of complex parts in a variety of metals such as steel,aluminum, stainless steel, and brass, and in addition to its three locations, also works closely with joint venturesglobally.Our Timetable is:Bus. DaysRFI Issue Date:Email intention to respond no later than:Deadline for questions:Responses and indicative costing to be submitted:Shortlisted suppliers to be informed:Initial meetings and first demonstrations to be concluded:Conclude contract agreements & nominate winning vendor:Commence implementation:October 12, 2016October 20, 2016October 27, 2016November 21, 2016December 9, 2016January 20, 2017February 10, 2017February 24, 201765161327159Current TechnologySample Company is currently processing on System 2000 software from ADP. The three companies are part of asite based domain, but each company is segregated from each other based on user account security. The majorityof the system runs on MS SQL 2012 and is replicated nightly between the servers to create some redundancy.The three companies use Microsoft Office including Microsoft Outlook for eMail.They employ approximately 300 people, of which there are currently 88 users. (Please see User Listing below)Please base cost estimates on 50 concurrent users. We will expand the number of users as appropriate. Please alsoinclude the cost to add each user.Page 3 of 25

Statement of Requirements ERP Project 2016User Listing#DepartmentCompany /LocationUser ingCust SvcCust SvcCust SvcCust ufacturingPurchasingPurchasingQualityRaw MaterialsRaw MaterialsRaw ng/RcvngShipping/RcvngTool RoomTool RoomTrainingAnaheim CATopeka KSTopeka KSTopeka KSTopeka KSTopeka KSTopeka KSAnaheim CAAnaheim CASecaucus NJAnaheim CAAnaheim CASecaucus NJAnaheim CASecaucus NJTopeka KSSecaucus NJSecaucus NJAnaheim CAAnaheim CASecaucus NJAnaheim CAAnaheim CASecaucus NJAnaheim CASecaucus NJAnaheim CASecaucus NJAnaheim CASecaucus NJAnaheim CAAnaheim CAAnaheim CAAnaheim CAAnaheim CAAnaheim CASecaucus NJSecaucus NJSecaucus NJAnaheim CAAnaheim CASecaucus NJAnaheim CAAnaheim CAUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser nameUser TitleCost Cust Svc MgrOffice ManagerOffice ManagerOffice ManagerEngineerEngineerEngineerPresidentOwnerHR ManagerLean EngineerMaintenancePlant ManagerPlant ManagerPlant ManagerProduction SupvProduction SupvSchedulerPurchasingPurchasingQuality Mgr.WarehouseMaterial HandlerWarehouseEstimatorSales ManagerSales PersonShipping PersonShipping PersonShipping PersonShipping PersonShipping PersonShipping ManagerShipping ManagerTool MakerTool MakerTrainerSuper UserNameDevice(s)Manager 1Manager 1Manager 1Manager 1Manager 1Manager 1Manager 1PC OnlyManager 2Manager 2Manager 2Manager 2Manager 3Manager 3Manager 3Manager 4Manager 5Manager 5Manager 5Manager 5Manager 5Manager 5Manager 5Manager 5Manager 6Manager 6Manager 5Manager 7Manager 7Manager 7Manager 8Manager 8Manager 8Manager 9Manager 9Manager 9Manager 9Manager 9Manager 9Manager 9-LaptopPC OnlyPC OnlyPC OnlyLaptopPC OnlyPC OnlyLaptopLaptopPC/LaptopPC OnlyPC/LaptopPC/LaptopPC/LaptopPC OnlyPC OnlyPC OnlyPC OnlyPC OnlyPC OnlyPC OnlyPC OnlyPC OnlyPC OnlyLaptopLaptopPC OnlyPC OnlyPC OnlyPC OnlyPC OnlyPC OnlyPC OnlyPC OnlyPC OnlyLaptopPage 4 of 25

Statement of Requirements ERP Project 2016Project ObjectivesSample Company is looking for new software to achieve the following primary goals:Reduction in manufacturing costs in the areas of better equipment management, improved procurementprocedures, improved allocation of labor resources, and enhanced planning and control to shorten WIP times.The integration of the multiple systems existing at each plant (company), into one system, to allow forconsolidated reporting.Improve job costing and estimating accuracy.Reduction in selling, general, and administrative (SG&A) costs.Improve inventory accuracy.Modules to be Implemented Accounts PayableAccounts ReceivableBusiness Intelligence / Report writingCapacity PlanningGeneral LedgerInventory ManagementManufacturing Requirement PlanningProduct Quality (Quality Assurance)PurchasingQuotations & EstimatingRepair and ServiceSales AnalysisSales Order ProcessingShop Floor ControlPhase 2 - Possible Implementations Customer Relationship Management (CRM)Electronic Data Interchange (EDI)Enterprise Portal (for employees, vendors, customers)Finite SchedulingHuman ResourcesPayroll (Or Interface with payroll service)Warehouse Management SystemPage 5 of 25

Statement of Requirements ERP Project 2016Timeframe for acquiring and implementing new softwareWhile there is no specific timeframe which must be adhered to, and no new impending events driving the process,Sample Company anticipates that the new ERP software will be decided upon within 90 days of the “responsesdue” date.Given the size of Sample Company, the industry, and the number of locations (companies), we believe thatimplementation of “phase 1” is expected to fall in the range of 9 to 14 months.Page 6 of 25

Statement of Requirements ERP Project 2016Requirements by Module - OverviewThe following pages specify the software requirements at a departmental level, beyond those which are includedwith most ERP software offerings. Please respond to the requirements by inserting the appropriate number, asdefined below, in the “Vendor Response” column, and add any supporting comments or documentation you deemrelevant, regarding how your software will improve our processes.1 More information is required2 Yes. Functionality is provided out of the box, and is operational at other sites3 Requirement will be met by configuring existing software3 Functionality achieved via reports or screens generated using proposed Reporting Tools4 Accomplished through the implementation of Third Party software or Add on5 Functionality is provided through programming customization of the application6 Functionality is provided through a future release to be available within 1 year7 Functionality is not providedPage 7 of 25

Statement of Requirements ERP Project 2016Accounts PayableFeatureFactorDemoCentralized Accounts Payable – must sharesuppliers across the 3 companiesIntegrated Job Costing that allows trackingexpenses by specific jobMust be able to assign classifications to vendors6YMust allow for consolidated purchases andpayments for all companies at the corporatelevel6VendorRemarksResponse66E.g. raw materials, outsideservices, toolingYPage 8 of 25

Statement of Requirements ERP Project 2016Accounts ReceivableFeatureFactorCommissions are paid when invoice is paid. Rateis by customer. No commission is paid ontooling, surcharges, etc.Will be collecting sales tax. Software todetermine jurisdiction automatically from theship to address.Statements are sent only on a case-by-case,manual basisThere are no late fees charged to customersUS dollars only. Foreign customers pay in USD.65DemoVendorRemarksResponseFor Amazon customers411Canada, China, MexicoPage 9 of 25

Statement of Requirements ERP Project 2016Business Intelligence / Report writingFeatureFactorDemoAbility to export reports to Excel6ODBC capability6System must have extensive drilldowncapabilitiesAbility to "Slice & dice" data from parameterslike: Company, Customer, Item #, Item group,Sales Rep, Territory, Ship-to, State6Y6YVendorRemarksResponsePage 10 of 25

Statement of Requirements ERP Project 2016Capacity PlanningFeatureFactorDemoBOM structure needs the ability to containparts made in another facility (company)Manipulating the schedule directly from a dragand-drop visual scheduling boardNeed Make-to-Stock and Make-to-OrdercapabilityResources needed to include in planning:6Y6Y6Y6YNeed both Finite and Infinite CapacitySchedulingAnalyze effect of the forecast on machine,material and labor capacities.Long term capacity planningNeed to optimize production for specific partsusing all 3 plants, based on available resources5YVendorRemarksResponseIs the drag & drop permanent,or reset by next planning run?Tooling, machines, vendors,locations, and humanresources.Finite considers availability ofresources433YRough-cut planningTransfer of material or semifinished components toanother plant for completionPage 11 of 25

Statement of Requirements ERP Project 2016General LedgerFeatureFactorAnalyze Forecast Data: Demand, production,inventory needs, labor hours required, cashrequirements, part usageCurrent G/L account number structure mustchange to accommodate multi-companyDashboards, drill-down, slice & diceRegulatory requirements: US GAAP onlyReport writer capable of constructing balancesheets, P & L statements, budget reports, andperiod comparisonsRequires the ability to drill-down from journalto transaction sourceSales analysis comparisons by month, YTD, QTDSlice & dice by Company, Customer, Item #,Item group, Sales Rep, Territory, Ship-to, StateRequires an advanced allocations capability, toallow sophisticated allocation of cost andrevenue to multiple projects or equipment6Demo6666VendorRemarksResponseFor consolidated financialsY6665E.g. for cutting oil formachinesPage 12 of 25

Statement of Requirements ERP Project 2016Inventory ManagementFeatureFactorAbility for items to not maintain on handquantityAbility for the item master file to link to relatedengineering drawings and other documentsAbility to do mass changes to BOM'S? (Replaceone component everywhere)Ability to view past BOM revisionsAllows multiple stocking locations and multiplebinsCost sets required:Average, Last, Standard, FIFOCycle counting by A,B,C classesDrill down from item to see SO & PO detailFive decimal places are used for quantitiesLot Traceability: and recall managementLot Traceability: Ability to see each raw materialthat went into a job, including who the productwas shipped toPhysical Inventory with Tags and reconciliation tobook inventorySales projections by company for eachmanufactured item and customerVendor Lead Time ReportingAbility to centralize purchasing for all companies,while MRP is localLot Traceability: Products are never recalled6DemoVendorRemarksResponseE.g. Services appearing onPOs666666666666Y64Y1Page 13 of 25

Statement of Requirements ERP Project 2016Manufacturing Requirement PlanningFeatureFactorDemoAbility for planning to use inventory from all 3companies that may have it in stockAbility to reserve inventory by contract job andrequirement dateBased on On-hand, POs, MOs, firm demand,minimum qtys. Not seasonal.BOM needs 5 decimal placesBOM needs ability to store documents by userfunctionBOM routings need a minimum of 10 lines ofdescriptionCentralized Data Storage by coding dataaccording to site ownership.Forecast based on managers judgment andexperience. Mods may be necessaryKanban displayMaterials also need to be backflushed forassembly itemsOption to backflush materials by item (issuematerials to MOs when production is complete)Real time MRP system display, inquiries, &reportsRouting needs to distinguish processingperformed by outside subcontractorsShow MRP by vendor type or jobSupport for inter-company transfers ofinventory.Workflow alert for jobs that are behind scheduleAbility to flag MOs as "Firm"Ability to flag POs as "Firm"Ability to view workload by machineBOM needs options for costs to be updatedautomaticallyCalculation of EOQ for quantity to be runDrag and drop abilty for the run orderManufacturing Pegging Report to see therelationship between SOs & MOsOn hand minimum quantities should be updatedautomatically based on criteriaWIP to show where every part is for all steps6YVendorRemarksResponse666666Y666YY6Y66For example, plating or heattreating6665555555Y5Y5Page 14 of 25

Statement of Requirements ERP Project 2016MiscellaneousFeatureFactorDemoMobile access to ERPA Warehouse Management Module is neededfor future implementationFinite Scheduling module for possible futureimplementationEDI may be required in the futureOne logon gets user into desktop and ERPPayroll & HR modules (or interface to a service)are possible requirements for the futureFixed Assets is not requiredCan a non-programmer develop new processes,tailor screens, etc.?ECommerce (interface with Shopify)How many customers are on the latest release ofthe software and when was that release?What is the schedule of expected upgrades forthe product, and with a timetable?65YVendorRemarksResponsePhase 24Phase 2222Phase 2Currently PaycomPayroll SoftwareHR&1Page 15 of 25

Statement of Requirements ERP Project 2016Product Quality (Quality Assurance)FeatureFactorDemoAbility for inventory locations to be flagged asnon-conforming, don't allocate, etc.Ability to report on a vendor to keep track ofdelivery lead times, number of problems, etc.Ability to see cost details for machine downtime,pproduct returns, rejects, reworking, etc.Corrective Action Request documents arerequired6Y6Y6Y6YQuality checks must be completed beforeproduction can be recordedQuality tests for: measurements, weight, plating,heat treatment certifications, pass/failAbility to share Product Quality information withcustomers or suppliersAccess to suppliers to enter receivinginspections directly into the system66VendorRemarksResponseFor items currently in "holdcages"To document, schedule,manage, assign, and track allcorrective action eventsY33Page 16 of 25

Statement of Requirements ERP Project 2016PurchasingFeatureFactorAbility to issue blanket POs that are shipped inincrementsAbility to purchase non-stock items such assupplies, tooling, and servicesTrue landed cost with additional factors: inlandfreight, duty ,surcharges, etc. are included6DemoVendorRemarksResponse66YWith % calcs & pro-rating byweight or cubePage 17 of 25

Statement of Requirements ERP Project 2016Quotations & EstimatingFeatureFactorAbility to interface with ACT CRM softwareAbility to interface with MicroEstimatingsoftwareCRM moduleEstimating and Quoting moduleMES (Manufacturing Execution System) –automatic production monitoringSupport for Kanban from electronic TBDYAuto capture time by employee for efficiencyreporting and moreCosting to include surcharges, discounts,freight, etc.Auto calculate surcharges for metal prices6YIf we continue to use ACTIf we continue to useMicroEstimatingIf not using ACTIf not using MicroEstimatingNecessary? Are machinescapable?Necessary? Are machinescapable?Phase 2 possibly6YLanded cost can handle thisStandard cost rollupUse actual employee hourly rate to for laborrateData archiving and document storage:Customer and vendor web portal55YY32YY5No standard customer "deal"yetPhase 2Phase 2Page 18 of 25

Statement of Requirements ERP Project 2016Repair and ServiceFeatureFactorDemoAbility to see the history of all maintenanceperformed on equipmentAbility to track the labor for maintenanceEquipment TrackingMaintain files for parts associated with specificpieces, or types, of equipmentPreventive Maintenance tracking with alertsSpare Parts TrackingProducts are not serviced6Y666YYY661YYVendorRemarksResponseSample Company does notservice their productsPage 19 of 25

Statement of Requirements ERP Project 2016Sales AnalysisFeatureFactorDemoCustomer file must have a "master" customercapability for sales reporting & A/R5YVendorRemarksResponsePage 20 of 25

Statement of Requirements ERP Project 2016Sales Order ProcessingSales OrderProc.Sales OrderProc.Sales OrderProc.Sales OrderProc.Sales OrderProc.Sales OrderProc.Sales OrderProc.Sales OrderProc.Sales OrderProc.Sales OrderProc.Sales OrderProc.Sales OrderProc.Sales OrderProc.Sales OrderProc.Sales OrderProc.Sales OrderProc.Ability to add a customer-supplied "release#" to shipments, for each detail line shippedAbility to change the ship-to for each partialshipmentAbility to process blanket orders withmultiple ship datesCertain items require that standard textnotes be printed on order documentsPrices can have up to 5 decimal places6Pricing is by customer by item. There aresome items with generic pricing.The same item may be released daily foryears. At least 400 release capabilityrequiredAbility to have items that are not physical,and whose on-hand is always zeroAbility to import a "release #" fromcustomer portals (currently required by 10customers)Auto backorder fulfillment based onavailable inventoryAuto picking based on ship date, inventory,& customer priorityFlag customers and export "advanceshipping data" (8 customers currently)Item numbers are currently up to 25characters longSome item numbers contain specialcharacters, for example, a leading "."System "alerts" for exceptions about credit,inventory, margin, etc.Y/N flag for whether a given note shouldappear on customer documents66Y6Y66Y65Y55Y5Y5File format as required byeach customer5555Or another equally effectivemethodPage 21 of 25

Statement of Requirements ERP Project 2016Shop Floor ControlFeatureFactorAbility to push time and attendance datadirectly into payrollNeed “Parts Travelers” or “Move Tickets”6Need Barcode printing capabilityNeed the abailty to print or display calendars forwork centersTime and attendance, with labor collectionOutsourced Inventory Management tools66Manufacturing Execution System (MES)2Biometric supportThere are no items with a shelf life that expires11Demo663VendorRemarksResponseTo keep track of partsmovementYYTo keep track of productsbeing worked on at outsourcevendor locationsReal-Time ProductionMonitoringPage 22 of 25

Statement of Requirements ERP Project 2016Requirements – Additional QuestionsThe Software What training do you provide to the implementation team and users?What training delivery methods are available? (videos, webinars, train-the-trainer options, classroom, etc.)What is involved in customizing the software?Does the proposed software have development tools so that a non-programmer may develop a newbusiness process in the system? (E.g. new fields/files, changes to screens, new screens, etc.)Will you provide full source code in the price of the software?Is the software written in a commercially available development language which is still being enhanced andsupported by the supplier?Is your company the original author of the proposed software?What Database Management System does your software employ?When was the code base of the business logic originally developed?How many clients are you currently supporting who are utilizing this software?What percentage of your clients are on the latest release of the software, and when was the latest release?How often are upgrades to the software planned to be released?Please provide details of how the product is supported across multiple sites.What levels of support are available, and what are the hours of operation and response times?Where is your support team located, and what is their typical response time?Who will be supervising our implementation, and what is their experience in working with organizationslike ours?Please provide information on your implementation methodology.Please provide an estimate of the typical implementation time frame for a company of our size.Your Company How long has your company been in business?What is the major benefit of choosing your company rather than a competitor?What experience do you have working with companies in our industry?Are there any anticipated mergers or acquisitions pending?Contact Details:Company Name:Person responsible for Response:Email:Phone Number:Position:Page 23 of 25

Statement of Requirements ERP Project 2016Financial Are programming modifications done at a fixed cost?How are additional users added to the system and what costs are involved?Will you provide a written statement of work dictating what work will be performed as part of theimplementation?Is there a flat fee or capped number of hours associated with that work?What are your hourly rates for implementation?Are software upgrades free, or is there a cost?Will program customizations cause additional expense, in order to take advantage of software upgrades?What are the ongoing support costs?Page 24 of 25

Statement of Requirements ERP Project 2016BudgetOur anticipated budget will be determined after our review of the RFI responses. We shall provide hardwareagainst your specification via our existing hardware support company.Notes and InstructionsOur intention is to calculate the total cost of ownership over a ten year period. Please include budgetary pricing forthe software that appears to be needed to meet our requirements, sufficient to that end. All estimated costsshould be presented including software licenses, annual maintenance, implementation, program modifications,software upgrades, hardware, and training.It is anticipated that responses can be processed from the material in this document, but if you would like theopportunity to discuss the RFI or your response, a telephone conversation can be requested by [email protected] Written questions may also be submitted by email to [email protected]om to clarify anypoints which may not have been sufficiently clear.Shortlisted vendors will be expected to provide remote demonstration(s) to accommodate geographically diverseparticipants.Any use of subcontractors must be identified in the response.By responding to this Statement of Requirements, you acknowledge that it will be done completely at yourcompany expense, and no information other than that which is already in the public domain will be made availableto any third parties without express prior consent from Sample Company.Page 25 of 25

Statement of Requirements ERP Project 2016 Page 4 of 25 User Listing # Department Company / Location User Name User Title Super User Name Device(s) 1 Accounting Anaheim CA User name Cost Acct Manager 1 PC Only 2 Accounting Topeka KS User name CPA Manager 1 3 Accounting Topeka KS User name Controller Manager 1 4 Accounting Topeka KS User name CFO Manager 1 5 Accounting Topeka KS User name .