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ERP System for Richard Antiques Imports

For this assessment, you have selected Odoo Community edition for the given case study. You have been asked to prepare a report detailing the ERP implementation plan for the given case (Refer to the case study). Your report should include the following:

Delivery plan: Training materials, Management presentations, Publications, etc. Delivery plan outlines what (Training materials, Management presentations, Publications, etc.) needs to be delivered and when.

Case Study: 

Richard Antiques Imports (RAI) Richard owns and operates Richard Antiques Imports, which is a family run business operated by the Richard family for over 25 years. With a goal to offer a wide range of quality mid-century and antique furniture, Richard started this business 25 years ago with 50 employees. 

Richard imports reclaimed architectural and garden elements such as stained glass windows, cast iron gates, chimney pots and many other fascinating and interesting items. He purchases antiques and home furnishings in Asia, Europe and Africa, ships those items to a warehouse facility in Sydney and then to his stores in Melbourne, Sydney, Brisbane and Adelaide. Richard tracks all his purchases and subsequent shipments of these items to Sydney by using a manual system to keep a list of items purchased, shipments of the purchased items, and the items in each shipment.

Richard makes periodic buying trips to various countries in Asia, Europe and Africa. Prior to each trip, he goes through the local yellow pages and approaches his business contacts for potential antiques suppliers and their contact details such as Business name, contact person, address and contact number in respective countries. During the trips, he visits potential suppliers and selects items based on his experience and current market trends. He keeps notes about the items he purchased and basic data about their shipments including the item name, date of purchase, weight, packing instructions, cost, shipping company name, contact person in that country and also in Australia, shipping cost and approximate date of delivery. Richard has purchased hundreds of items over the years, and they have been shipped in dozens of different shipments.

Upon receiving the items at his warehouse in Sydney, each item will be labelled with Product code, Weight, Dimensions (height x width) and Retail price. Then, these are transported to one of the four metro stores where these items are displayed for sale. Recently, he hired a University student to compile a list of potential customers and send regular emails about the products available at each store.

Customers can purchase these items by calling one of the RAI stores and paying by credit card. At the time of ordering, one of the staff members collect customers details (customer first name, last name, address, email address and contact number) and their credit card details (card type, number, name on card, expiry date and 3 (or 4) digit code) at the time of purchase.

Walk-in customers select the items and pay by cash or credit card. RAI staff record the customers details at their first visit and provide each customer with a customer ID to offer discounts on subsequent purchases.

Currently RAI staff record all their customers’ details and relevant transactions manually into a register. Although, this manual system is working fine, recording data in the manual system is laborious and time consuming.

Richard makes his business stand out from the competition by providing unique antique items and excellent customer service. He has noticed significant growth in his business in the last couple of years in terms of sales and customer numbers. As a result, his staff at RAI stores were unable to manage customer data and provide the same level of service. Moreover, Richard is unable to keep track of suppliers, items he purchases on his visits, shipping company details and delivery dates. In addition to this, he is unable to provide quick answers to several questions relating to (1) Total number of items purchased by month/year (2) Total costs for each trip (3) Total number of customers at each location (4) Number of repeat customers and their frequency of visits (5) Busy periods and (6) Total expenses and the amount generated by each store and so on.

Richard attended a workshop about the benefits ERP systems offer to businesses such as his. With this, he wants to keep track of the suppliers, items he has purchased, their shipments, and eventually customers and sales. He believes that an ERP system will not only help him and his staff to record the transactions easily but also help them to generate reports to understand the total number of customers at each location, peak times, payments received/outstanding, total revenue generated, etc. In addition to this, they believe that an ERP system would be helpful in minimising inconsistencies with data and be able to manage cash flows effectively. Richard is keen to use the  technology and implement an ERP system with the help of an expert (you) to manage their operations. 

Answer

ERP IMPLEMENTATION PLAN

1.4 Project Team Establishing and Induction 

Delivery plan

Training materials 

Importance of ERP cant be ignored to gain competitive advantage for RAI. RAI is growing its business and with growing needs, it’s difficult to maintain data manually. Hence, decision to implement ERP in RAI is appreciative move. However, no system can ever be effectively implemented without corporation of employees. Hence, the training material should be easy to understand and tailored according to the need of various requirement of RAI employees. Harwood (2017, p. 17) commented that, ERP helps in effective resource management. users are potential customers of this firm thus training of users has been scheduled for a period of 3 days. Bintoro et al. (2015, p. 231) observed that, actors can influence the ERP implementation procedure remarkably. Hence, using this actors influence, RAI can develop its user training program. As for an example, celebrities can convey the effectiveness of ERP and thereby people can be enriched with appropriate knowledge. Similarly, using powerpoint presentation knowledge can be distributed among the users regarding training materials.

Introduction of ERP- ERP can be new to many employees. Hence, the first section of training must include the concept, advantage and flexibility of ERP. It will help to reduce the anxiety of many employees who are new to ICT. The content is suitable of all employees of RAI firm.

Accounting and finance-  This section of ERP will inform employees to keep track of total number of items purchased in month/ year, total revenue, invoice, cost of trips, total expenses and profit of each store as well over all organization. 

Business intelligence and reporting- This section of training will inform employees to take various reports and to analyze it for further decision making. It will help store managers to retrieve comparative profit and loss statement for consecutive months. Richard can retrieve comparative reports for all stores to evaluate performance.

Sales and customer management- The section will inform store managers and Richard to make marketing strategies. It will inform them to keep track of walk in and online customers, repeated customers, customer complaints and customer retentions.

Purchasing management-The section will inform Richard to keep track of bought items like weight, height, location, price, date of purchase and suppliers. The comprehensive picture or report will help him to make decision accordingly.

HR and Payroll- This section will help HR manager to keep record of employee attendance, payroll and their compensations. This will help Richard to design reward and compensation accordingly.

Inventory Management- The application will inform managers to keep track of items kept in other stores and common locations. It will keep all data of antiques centralized and easy to access.  


Management presentations 

In order to increase effectiveness of the training management presentation planning of implementation of ERP implementation is a vital step.. The schedule of the training period needs to be divided effectively an in proper phases. A typical overview of the schedule and presentation hour can be-

First Day of training-(25/9/2018)-Presentation on ERP

Introduction of ERP system- 30 minutes 

Accounting and finance-  1 hour

Business intelligence and reporting- 1hour

Sales and customer management- 1hour

Purchasing management-   1hour

HR and Payroll- 30min

Inventory Management- 1 hour

Recognition of resources- 6 hours

Final Day of Training-(26/9/2018)-Discussion and problem solving

Discussion on ERP system- 4 hours

Problem solving- 3.30 hours

Publications 

Sun, Ni & Lam (2015, p. 47) opined that, effective delivery plan can accelerate the ERP implementation process. A small and simple handbook regarding ERP and its application suitable to RAI will be published and distributed to employees. The handbook will consist FAQ and functioning of various applications. 

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