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QC
Logistics
5.2
Third Party Selection
Before QC met with suppliers they had a list of criteria
that needed to be incorporated into a package in order
for it to suit their business. Following the research
undertaken and, having met with six potential suppliers,
the decision was made to narrow it down to one, a
software developer based in Ireland with excellent
experience in developing warehouse software.
QC met with this very reputable software company on
a number of occasions over a period of a few months
to identify the exact requirements for the companys
stock system. This initial process also highlighted
areas in which there was a paper process that added
little or no value.
After much consideration it was decided that, although
this particular company had an excellent product,
it was just too expensive for QC at that point. The
benefit of having gone through the process with them
was that the team in QC knew exactly what they required
from a system. At that time, Michael Phelan, an external
consultant that QC had worked with previously, having
seen QCs requirements and the product developed
by Ion Technologies, introduced the two.
The Ion product was an off-the-shelf stock management
system with some modifications made to suit the QC
client requirement and was significantly cheaper than
the alternatives. More importantly, it offered all
the functionality required by QC Logistics and Ion
was also able to tweak their system to further meet
functional requirements.
5.3 The Project Team
Internal project team
The management team made a point of involving all
members of staff in the specification of the new system.
This ensured that the system fully met the needs of
the staff that were on the front line.
Specific members of the project team included:
- George
Banks, Operations Director/Susan OMahony,
Services Director George and Susan were responsible
for the management of the project. They were also
the main contacts for Ion and developed detailed
specifications for the software and hardware. Most
importantly, they understood the warehouse process
and therefore knew what needed to be done to make
it more effective.
- John Delaney,
Managing Director John had overall financial
responsibility, and was the main contact with Enterprise
Ireland.
- Eamonn
Walsh Transport Manager with responsibility
for the day to day shipment both in and out of the
warehouse.
- Philip
OToole, Warehouse manager Philip had
responsibility for labelling specification and day-to-day
operations of the warehouse.
- Helena
Hagan, Administration Helena provided admin
support and back-up for the system including weekly
generation of reports for internal and client use.
- Christine
Leamy, Financial Controller Christine oversaw
the link from IonData to Sage for the invoicing
portion of the project.
External
project team
- Neilius
Phelan, Ion Technologies Ion provided IonData
Lite and assisted in the implementation of that
system. Ion also provides ongoing support for the
implementation in QC Logistics.
- Michael
Phelan, IMCS QC had retained Michael since
1998 for provision of consulting services in the
areas of business development and marketing. On
the eBusiness project, Michael provided advice on
issues of process management and system selection.
5.4
Timeline
Development of the requirements specification was started
prior to QC Logistics application for the Enterprise
Ireland eBusiness Acceleration Fund. Development of
the specification and the search for a suitable vendor
took around 18 months. It should be noted that work
on the system was not full-time for this period. At
time of writing, IonData Lite was being piloted by QC
Logistics with a view to rolling the system out companywide
in the coming months. The plan to date was as the company
expected. The eBusiness project has opened their minds
to the potential of what could be done in the future.
5.5
Budget
Overall, the QC Logistics eBusiness project came in
on budget. Although the company exceeded budgets slightly
on research and development, they opted to implement
a less costly system than originally thought and therefore
saved on the capital expenditure.
The
overall budget was broken down into the following categories.
Also indicated is the percentage of budget allocated
to each category:
- Training
9%
- Research
and Development 11%
- Feasibility
14%
-
Capital Expenditure 66%
5.6
System Rollout
It is likely that QC Logistics will encounter resistance
from customers, especially around the integration of
their two systems. As discussed earlier, this resistance
will be due primarily to the potential risks posed by
hackers.
Integration problems are in no way insurmountable,
its a matter of winning the confidence of our
clients, commented Banks. As in the beginning,
it took one client to come on board before others followed
suit. In the same way, once one client has allowed their
system to be integrated into the QC Logistics stock
system, it is likely that other clients will consider
the idea.
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