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Choosing a Next Generation Platform: New Balance’s Evaluation Process You Can’t Fit A Size 12 Foot Into a Size 5 Shoe!

Choosing a Next Generation Platform: New Balance’s Evaluation Process You Can’t Fit A Size 12 Foot Into a Size 5 Shoe! Robyn D'Addario, Assistant EC Manager, New Balance Athletic Shoe, Inc. Evroy Anglin, Senior EC Analyst, New Balance Athletic Shoe, Inc. Agenda . EDI at NB Why change?

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Choosing a Next Generation Platform: New Balance’s Evaluation Process You Can’t Fit A Size 12 Foot Into a Size 5 Shoe!

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  1. Choosing a Next Generation Platform: New Balance’s Evaluation ProcessYou Can’t Fit A Size 12 Foot Into a Size 5 Shoe! Robyn D'Addario, Assistant EC Manager, New Balance Athletic Shoe, Inc. Evroy Anglin, Senior EC Analyst, New Balance Athletic Shoe, Inc.

  2. Agenda • EDI at NB • Why change? • Software selection process • Lessons learned • Q&A

  3. The New Balance Family of Brands

  4. Systems Supported Seven Business Applications

  5. EDI Milestones • - EDI is 60% of business • Spreadsheet order processing for • Sample Orders • - IT Automated PO updates to XPC with pre-pack table • ASN for overseas footwear factory direct • shipments (print labels in factory) • Brand Security tongue label • Consolidated Invoices • On-line Visibility to EDI Error Recovery • Suspense reasons. • - Send ASN's hourly instead of once a day • Electronic Remittance (JC Penney • 1st account) • New EDI Software • - 500 Trading Partners 2002 2003 2004 2005 2006 2007 2008 2009 2010 2000 2001 • - 72 Accounts on EDI; • Email ASN to replace faxed • packing slip from warehouse - Start receiving customer Sell-thru • Ship Direct w/ASN's from Solar Link • AS2 Direct Connect communications • - Brine merged w/ Warrior • Dynamic DC Association • PO Acknowledgments • Added 1 headcount (from 3 to 4 EDI personnel) • Update pre-pack table off EDI PO - Allow processing of Hash Orders via • spreadsheet processing • EDI hits 56% - 24 Hour Orders implemented • (Hourly processing of EDI Orders) • - Canada Order Processing Spreadsheet orders

  6. Shared Services Group - 2001

  7. Shared Services Group - Current

  8. Determine Scope of software needed • Where we fall short today • Process monitors • Are we missing any documents • Did a process fail • Visibility

  9. Determine Scope 2 • EDI Mapping • Migrate Business Processes • Replace existing scripts • End-to-end mature package

  10. Limitations to be aware of • Corporate IT Limitations • Databases supported • Server OS/Platform • Limited access to firewall changes • Integrate with SAP

  11. Who are the major players? • Gartner magic quadrant • AMR conference call • Are consultants widely available? • Due diligence • General reputation of company and software • How long have they been in the industry • How widely known/used? • Any upheavals? i.e. mergers, retention of top-level executives

  12. Speak to actual users • Determine ease of use, ease of installation, availability of training, effectiveness of software • How complex were other companies requirements in comparison to ours? • Do users need to be rocket scientists to get work done?

  13. Assemble RFP • Create Functionality Checklist • Trading Partnership Management • Tables • Translation Capability • Reporting/Metrics • Communications • Process Monitoring • Security • Training • Installed Base

  14. Analyze RFP responses as a team • Put together scorecard spreadsheet of desired features and rate • Scorecard was developed AFTER we had seen at least one demo instead of in the beginning • At the end of the exercise, statistical dead heat

  15. Vendor Demos • In-house and web based • Evaluated from the viewpoints of a technical user and administrative (day-to-day operations) • What we could have done better

  16. How Much Training Needed? • Is there a painless migration path • Knowledge Transfer • Reference calls

  17. Decision Making • EDI Team roundtable • Take the pulse of the group • Who/what we liked/disliked and why • Perceived risks

  18. Other Decision Making Factors ($$$) • Licenses & support plan • Training • Consulting services (migration, implementation) • Pricing varies according to how work is allocated

  19. Lessons learned • Speak to a technical person in vendor demos • Can be a discrepancy between the marketing literature and the reality • Standardize a list of questions • So you can compare apples to apples • Don’t schedule the demos too far apart • You’ll forget a bunch of stuff • Harder to make an objective decision • Stick to deadlines • Contact more than one user

  20. Questions?

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