bryan kilpatrick senior account manager alexey yermilov ... · the team is comprised of bryan...

Bryan Kilpatrick Senior Account Manager Stephen Martino Network Systems

Ella Buitrago Senior Integration Specialist Alexey Yermilov Senior Application Developer

© 2013 GLOCO – Confidential and Proprietary

HUES Enterprise Consultants

GLOCO Warehouse Integration Proposal

HUES Enterprise Consultants Warehouse Integration

Proposal

©2013GLOCO–ConfidentialandProprietary Page|

Table of Contents

ExecutiveSummary..................................................................................................................3

PartI.BusinessRequirements......................................................................................................5BusinessContext....................................................................................................................................5

UseCase1:GLOCOCustomerOrderFulfillmentProcess(As-is).........................................................5

UseCase1:GLOCOCustomerOrderFulfillmentProcess(To-be).......................................................5

UseCase2:GLOCOInventoryReplenishmentProcess(As-is).............................................................6

UseCase2:GLOCOInventoryReplenishmentProcess(To-be)...........................................................6

RequiredFunctionality...........................................................................................................................7

BusinessBenefitJustification.................................................................................................................7

CustomerOrderFulfillment-AutomationBusinessBenefits:..............................................................7

CustomersandVendors-AutomationBusinessBenefits:...................................................................7

InventoryReplenishment-AutomationBusinessBenefitsforGLOCO:...............................................7

ReducedCapitalExpenditures&LaborCosts-AutomationBusinessBenefitsforGLOCO:...............8

Currentvs.SolutionWarehouseCostComparison..................................................................................8

CapitalandOperatingSolutionCosts.....................................................................................................8

SolutionBenefits....................................................................................................................................9

FINALCapital,OperatingandRevenueBenefits.....................................................................................9

SuccessMetrics....................................................................................................................................10

PartII.TechnicalSpecificationandPrototype....................................................................11ArchitecturalApproach........................................................................................................................11

SoftwareComponents.........................................................................................................................14

AmazonCloudServices............................................................................................................................15

DataExchangeTechnology...................................................................................................................................15DataSecurityandTransport.................................................................................................................................15

DevelopmentPlatform.............................................................................................................................16

SoftwareSolutions...............................................................................................................................16

Moduleview.............................................................................................................................................16

ComponentConnectorView....................................................................................................................18

AllocationView........................................................................................................................................19

SystemMetrics.........................................................................................................................................20


Proposal

©2013GLOCO–ConfidentialandProprietary Page|i

Integrationwithexistingenterprisesystems........................................................................................21

CustomerOrderFulfillmentIntegration..................................................................................................21

InventoryReplenishmentIntegration......................................................................................................22

DataDesignandManagement.............................................................................................................23

OrderFulfillmentDataDesign..................................................................................................................23

Reporting..................................................................................................................................................24

SolutionDemonstration.......................................................................................................................26

PartIII.ImplementationPlan.....................................................................................................27ProjectDevelopmentandDeployment................................................................................................27

ProjectDevelopmentTimeline.................................................................................................................27

Figure11:GLOCOWarehouseIntegrationTimeline.............................................................................................28Figure12:ProjectMilestones...............................................................................................................................29

ProjectDeliverables.................................................................................................................................29

ProjectDeployment.................................................................................................................................30

SoftwareDesign....................................................................................................................................................30BusinessProcessRedesign....................................................................................................................................31

OperationalGovernance......................................................................................................................31

Resources.................................................................................................................................................31

ExceptionResolutionFlow....................................................................................................................................32GLOCO,HUESEnterpriseConsultantsandKivaProjectTeam..............................................................................32

GLOCOStakeholders................................................................................................................................35

CommunicationsDashboard....................................................................................................................37

GoLiveandPostGoLiveCommunicationsPlan......................................................................................37

RiskManagement....................................................................................................................................38

DependenciesandConstraints.................................................................................................................39

SupportingNon-FunctionalComponents.................................................................................................40

BackgroundProcessesHealthMonitoring............................................................................................................40OrdersExecutionMonitoring...............................................................................................................................40S3andSQSServicesAccessManagement............................................................................................................41TechnicalSupportandDisasterRecovery.............................................................................................................41

UsersSupportandHelpDesk...................................................................................................................41

MHSSoftwareandHardwareSupport.....................................................................................................41

UserEnablementandTraining.............................................................................................................42

DataandContentManagement...............................................................................................................43


Proposal

©2013GLOCO–ConfidentialandProprietary Page|ii

KivaSystemDataandManagement.....................................................................................................................43ERP–MHSDataandManagement......................................................................................................................43AmazonStorageDataManagement.....................................................................................................................44AmazonSimpleQueueService(SQS)DataManagement....................................................................................44SystemAdministrationDataandManagement....................................................................................................44KivaSoftwareUpdates..........................................................................................................................................44SystemPatchUpdates..........................................................................................................................................44

SuccessMetrics....................................................................................................................................45

AppendixA.GLOCOSoftwareIntegrationScripts.......................................................................46UploadaFiletoAmazonS3..................................................................................................................46

DownloadaFilefromAmazonS3andsaveittoafile...........................................................................46

SendMessage-PHPCodeforAmazonSimpleQueueService...............................................................47

ReceiveMessage-PHPCodeforAmazonSimpleQueueService..........................................................47

DeleteMessage-PHPCodeforAmazonSimpleQueueService............................................................47

GLOCOERPXMLImportScriptForCustomerOrderFulfillment............................................................48

GLOCOERPXMLImportScriptForInventoryReplenishment...............................................................48

AppendixB.GLOCOControlDocuments&DataDescriptions....................................................50CustomerOrderFulfillmentDocuments...............................................................................................50

CustomerOrderFulfillmentControlDocuments.....................................................................................50

GLOCODataDescriptionStandards.........................................................................................................50

InventoryReplenishmentDataDesignAndControlDocuments...........................................................51

InventoryReplenishmentDataDesign.....................................................................................................51

Reporting..................................................................................................................................................51

InventoryReplenishmentControlDocuments.........................................................................................53

InventoryReplenishmentDataDescriptionStandards............................................................................54

AppendixC.GLOCOXMLDocumentTypeSamples....................................................................55GLOCOXMLDocumentTypes..............................................................................................................55

EventMessageDocumentSample...........................................................................................................55

ShipmentOrderDocumentSample.........................................................................................................55

ShipmentOrderResultDocumentSample..............................................................................................55

InventoryReplenishmentPurchaseOrderDocumentinXMLFormat.....................................................56


Proposal

©2013GLOCO–ConfidentialandProprietary Page|3

ExecutiveSummaryClientHeadquarteredinCambridgeMassachusettswithmanufacturingplantsanddistributioncentersintheAsia-Pacific

Region,SouthAmericaandEurope,GLOCOisoneofthelargestmanufacturesofmedicalequipmentintheworld.

Boasting7Billiondollarsintotalrevenue,GLOCOemploys29,000employeeswith110companysitesworldwide.

MichelleMatus,thenewChiefInformationOfficer(CIO)ischargedwithensuringthesuccessofbusinessobjectives

throughtheuseoftechnologysolutions.

SolutionProviderHUESEnterpriseConsultantsisanexpertinsupplychainautomationforglobalcorporationsandisthepreferred

ValueAddedReseller(VAR)forKivaSystems.TheteamiscomprisedofBryanKilpatrick,SeniorAccountManager,

StephenMartino,NetworkSystems,EllaBuitrago,SeniorSystemsIntegrationSpecialist,andAlexYermilov,Senior

ApplicationDeveloper.

BusinessProblemWithinGLOCO’sB2BandB2CMedicalSupplyDivisions,50%oflaborcostsassociatedwithorderfulfillmentarea

resultofworkerswalkingaroundthewarehouselocatingracks,shelves,andpickingandpackingthecorrect

productstofulfillorders.Thismanualorderexecutionhasresultedinthefollowingspecificfulfillmentdeficiencies.

1. InefficientUseofEmployeeLabor:Employeesspendupto70%oftheirdaywalkingthewarehouse.

2. OrderFulfillmentInefficiency:GLOCOemployeescurrentlyworkonasingleorderatatime.

3. InaccurateOrderFulfillment:GLOCO’sorderfulfillmentaccuracyis95%.

4. Sub-standardInventoryControl:Theinabilitytoaccuratelymanageinventoryresultsinlostsales,and

customerdissatisfaction.

ProposedSolutionHUESEnterpriseConsultantsisproposingaProofofConceptimplementationofaworld-classAutomatedMaterial

HandlingSystemthatutilizestheKivaMobileRoboticFulfillmentSystem.Kivaisatotalfulfillmentsolutionthat

incorporateshardwareandsoftwareelementstoperformreplenishment,picking,andshippingsortation.The

systemiscomprisedofaroboticfleetofKivaRobotsandPods(mobileracks)thatreportbackorderandoperational

transactionsstatusutilizingKiva’ssoftwareagentasthebridge(Figure1)toGLOCO’sMaterialHandlingSystem.The

Kiva(MRFS)isagoodstopersonautomationsystemthatwilladdressGLOCO’sbusinessidentifiedproblemsby:

• Eliminate99%ofemployeewarehousewalking. • Increasetheinventoryaccuracyfrom94%to99.9%.

• Doublethedailyorderspickedbyeachemployee. • Increasetheorderfulfillmentaccuracyfrom95%to99.9%.


Proposal


GLOCOTotalFulfillmentSolutionandEnterpriseSystemIntegration

Figure1

HUESEnterpriseConsultantswillbedesigningandimplementinga

TotalFulfillmentAutomatedSolutionthatwillmigratethefollowing

GLOCO’scurrentin-houseWarehouseManagementSystem

functionstotheKIVAMaterialHandlingSystem(KHS):

OrderPicking Slotting OrderPacking

QualityControl StockReplenishment LaborManagement

TheoutlinedissueswillbeaddressedbyreplacingGLOCO’smanualpersontogoodsorderfulfillmentprocesswithKiva’s

innovativegoodstopersonMaterialHandlingSystem(MHS);TheHUESEnterpriseConsultantsteamwillworkwith

GLOCO’sICTteamtoensurethecompleteandsmoothintegrationofthedifferentintegrationpointstotheGLOCO'sWMS.

GLOCO’sWMSßàMHSBridge

TheWMSßàMHSbridgethroughtheuseof

standardmessagingprotocols(FTP,JavaMS,

Custom,MQSeries)willprovidetwo-wayintegration

usingfilebased(text,flat,orXML)messaginginthe

synchronizationofSKU,Operator,Replenishment,

Orders,Management,Adjustments,andReport

statuses.(Figure2).

Figure2


Proposal


PartI.BusinessRequirementsBusinessContext

• UseCase1:CustomerOrderFulfillment• UseCase2:InventoryReplenishment

UseCase1:GLOCOCustomerOrderFulfillmentProcess(As-is)ThefollowingdiagramshowstheGLOCOAS-isorderfulfillmentprocessforpicking5items.Thepickerselectsacustomerorder,repeatstheprocessingtasks,andclosestheorder,thentransferstheordertoOrderPacking.

Figure3:As-isFlowDiagram(UseCase1)

UseCase1:GLOCOCustomerOrderFulfillmentProcess(To-be)ThefollowingdiagramshowsGLOCO’sAutomatedMaterialHandlingSystemthatwillautomatetheorderfulfillmentprocess.Thesolutionwillraisefulfillmentaccuracyby5.4%,andtransforma2-persontaskintoasingletask.

Figure4:To-beFlowDiagram(UseCase1)


Proposal


UseCase2:GLOCOInventoryReplenishmentProcess(As-is)Thefollowingdiagramshowsthereceivingworkercheckinginandtransferringstocktothereplenishworkerwho

repeatsthereplenishmentprocess5timestoputawayallofthereceivedstockintheproperbinlocations.

Figure5:As-isFlowDiagram(UseCase2)

UseCase2:GLOCOInventoryReplenishmentProcess(To-be)ThefollowingdiagramshowsGLOCO’sAutomatedInventoryReplenishmentSystemthatwillautomatethereceivingstock.Thesolutionwillincreasetheinventoryaccuracyby5.4%,andtransforma2-persontaskintoasingleone.

Figure6:To-beFlowDiagram(UseCase2)


Proposal


RequiredFunctionalityThefollowingpointsoutlinetheITfunctionalitytobeprovidedunderthisproposal:

1. MHSmustbeabletoimportandperiodicallyupdatebyrequestsfromERP/WMScoredata(inventory,customers,users,security).

2. GLOCOERPmodulesmustsupporttheimportofXMLdocumentsbyrequest.3. MHSmustbeabletoreceivenotificationsandstartprocessingnewfulfillmentandreplenishment

ordersrequests.4. MHSmustnotifyWMSaboutfollowingprocessescompletion/events:orderfulfillment,replenishment,

andinventoryadjust/reconciliation.5. MHSshouldstarttoprocessneworderslessthan30secafternotification.6. MHSmustgeneratesummaryreportsofdailyactivityandreconcileitwithWMSsystemwiththe

abilitytodeliverviaInternetmail.7. MHSmustbeabletohandlenewinventoryitemsatreplenishmentprocessandexportthemto

ERP/WMS8. MHSmustintegrateintoGLOCOerrors/notificationssystem.9. MHSmustsupportPDFandXMLreportformatstointegrateintoGLOCOERPreportingsystem.10. GLOCOERPmustbeabletosavetheCustomer’sorderform(WebinterfaceandAPI).11. GLOCOERPmustbeabletosavetheVendor’sfulfillmentorder(webinterfaceandAPI).

BusinessBenefitJustificationCustomerOrderFulfillment-AutomationBusinessBenefits:

• Customerorderprocessingwillincreaseby4xtheorderlinespickedperday.

• TheMHSwilldecreaseaverageorder-to-shiptimeby1day.

• Customersalesrevenuewillincrease2%duetocustomersatisfactionwithGLOCO’sfastorder-to-ship

times.

• Theprofitmarginpercustomerorderwillincreaseby2%asaresultofahigherfulfillmentratethatwill

reduceorderre-print,packing,andshippingcostsforbackordereditems.

• TheMaterialHandlingSystemwillcuttheorderfulfillmenttimeby5minutesperorder.

• GLOCO’scustomerservicerepresentativeswillbeabletoprovidereal-timeorderstatustoitscustomers.

• Newlyimplementedautomationwillreduceannualoperatingcostsbyreducingemployeepayrollby60%.

• Newefficiencieswiththeautomatedfulfillmentsystemwillleadtoareducedneedforcapitaldesignatedfor

newwarehouseconstruction.

CustomersandVendors-AutomationBusinessBenefits:• CustomersandVendorswillhaveandAPIandawebinterfacetosubmitorderstoGLOCO.

InventoryReplenishment-AutomationBusinessBenefitsforGLOCO:• CustomerSalesrevenuewillincreasethoughimprovedIn-StockInventoryaccuracy.

• A5.4%increaseincashflowwillberealizedasaresultofimprovinginventorymanagement.

• InventorywillbereplenishedtotheMHSfasterthatwillreduceout-of-stockitemsby5%.


Proposal


ReducedCapitalExpenditures&LaborCosts-AutomationBusinessBenefitsforGLOCO:• Newlyimplementedautomationwillreduceannualoperatingcostsbyreducingemployeepayrollby60%.

• Newefficiencieswiththeautomatedfulfillmentsystemwillleadtoareducedneedforcapitaldesignatedfor

newwarehouseconstruction.

Currentvs.SolutionWarehouseCostComparisonThefollowingtableshowsacostcomparisonbetweenthecurrentoperatingsystemandtheproposedsolution.

CapitalExpenditures&OperatingCosts3YearComparison

Description QTY YearlyCost 3YearTotalOldSystem

3YearTotalAutomatedSystem

Warehouseemployeespayroll(TotalNumberofemployees)

100/40

$4,000,000/$1,600,000

$12,000,000 $4,800,000

LandPurchase/Lease–EachSite 2 $1,000,000 $2,000,000 $0NewConstruction/EachWarehouse 2 $1,000,000 $2,000,000 $0WarehouseOperatingEquipment 2 $500,000 $1,000,000 $2,025,000OperatingExpenseslessLabor–EachWarehouse

2 $400,000 $800,000 $1,858,500

TotalWarehouseExpenditures $17,800,000 $8,683,500

TotalOperatingSavingsOldSystemà NewSystem

*Oldwarehouseyearlyoperatingcosts=$12,800,000-$9,116,500

CapitalandOperatingSolutionCostsThefollowingtableshowstheGLOCOAutomatedMaterialHandlingSystemSolutionBenefitcostsinfinancialterms.

CapitalCostsDescription Qty. ExtendedInitialCost AnnualCost

Bots(StandardDuty) 35 $875,000 $131,250

Pods(Standard) 500 $500,000 $75,000

ErgonomicWorkStations 5 $50,000 $7,500

WirelessNetworkEquipment 4 $75,000 $11,250

KIVAMaterialHandlingControlSoftware 1 $400,000 $60,000

KivaMaterialHandlingEnvironmentSoftware 1 $125,000 $18,750

ProfessionalServices(WMSintegration) 1 Included $0

HardwareandSoftwareTraining 1 Included $0

TotalCapitalCosts $2,025,000 $303,750


Proposal


OperatingCosts

Description Qty. PerUnitCost AnnualCostBotsAnnualHardwareMaintenance 35 $3,750 $131,250

PodsAnnualHardwareMaintenance 500 $150 $75,000

ErgonomicWorkStationsAnnualHardwareMaintenance 5 $1,500 $7,500

WirelessNetworkEquipmentAnnualHdweMaintenance 4 $2,812.50 $11,250

KIVAMaterialHandlingControlSoftwareMaintenance 1 $60,000 $60,000

KivaMaterialHandlingEnvironmentSftwMaintenance 1 $18,750 $18,750

ProfessionalServices(WMSintegration) 1 $0 $0

ProjectManagementCosts 1 $12,000 $12,000

HardwareandSoftwareTraining 1 $0 $0

TotalOperatingCosts $98,962.50 $315,750.00

SolutionBenefitsThefollowingtableshowstheGLOCOAutomatedMaterialHandlingSystemSolutionRevenuebenefitsinfinancial

terms.

DescriptionEstimatedYear1Benefit

EstimatedYear2Benefit

EstimatedYear3Benefit

IncreasedCustomerSatisfaction(2%increasedrevenue) $468,000 $514,800 $566,280

Pickersjoboptimization(5FTE) $250,000 $250,000 $250,000

IncreasedCustomerOrderProfitMargins–3% $121,680 $158,184 $205,639

IncreasedCashFlow–5.4%(InventoryValueof$1,500,000) $105,300 $136,890 $177,957

TotalRevenueBenefits $944,980 $1,059,874 $1,199,876

FINALCapital,OperatingandRevenueBenefitsThefollowingtableshowstheGLOCOAutomatedMaterialHandlingSystemSolutionBenefitsinfinancialtermsover

3years.

Description EstimatedBenefits

TotalCapital&OperatingCostsSavings(3Year) -$9,116,500TotalRevenueBenefits(3Year) $3,204,730

Totalrealizedfinancialbenefitfromnewsolution $12,321,230


Proposal


SuccessMetricsThisproposaloffersthefollowingmetricsformeasuringthesuccessoftheproject:

GLOCOMetrics GLOCOGoals

IncreasedRevenue Customerorderprocessingwillincreaseby4xtheorderlinespickedperday.

IncreasedRevenue Increaseorderfulfillmentaccuracyfrom95%to99.9%.

ImprovedCustomerExperience TheMHSwilldecreaseaverageorder-to-shiptimeby1day.

InsuranceCostReduction DecreaseGLOCO’sInsurancePremiumCostsby5%.

CashFlow IncreaseGLOCO’scashflowby5.4%.

InventoryAccuracy Increasetheinventoryaccuracyfrom94%to99.9%.

OrderFulfillmentPickingRates IncreaseGLOCO’sOrderFulfillmentrateby5.4%.


Proposal


PartII.TechnicalSpecificationandPrototypeAfteranextensiveRFPprocessofAutomatedMaterialHandlingSystems(MHS)andin-depthanalysisofGLOCO’s

orderfulfillmentandinventoryreplenishmentbusinessrequirements,GLOCOandHUESEnterpriseConsultants

havechosenKivaSystemsasitsAutomatedMHS.Thefollowingsectionswilldescribethetechnicalspecifications

thatwillenabletheintegrationsofKivaSystemsintoGLOCO’senterprisesystems.

• Architecturalapproach:abroadoverviewofthesolutionanditscomponents.

• Softwarecomponents:adetaileddescriptionofsoftwarecomponentsandtheirinteractions.

• Softwaresolutions:adiscussionofspecificsoftwarepackages.

• Integrationwithexistingenterprisesystems:interfacesbetweennewandexistingcomponents.

• Datadesignandmanagement:architectureandflowofdatabetweencomponents.

• Solutiondemonstration:aguidedtourofuserinterfacesforthesolution.

ArchitecturalApproachThefollowingfigureprovidesahighlevelarchitecturalapproachofGLOCO’sOrderFulfillmentProcessusing

AmazonCloudServices.Asastandardapproach,allcommunicationsbetweencomponentsuseRESTWebService

protocol.Thefigurecanbebestunderstoodbyexaminingthelifecycleoftheorderfulfillmentprocess.

1. AGLOCOB2BERPSystem,B2CCustomerorInsideSalespersonplacesandorderwithintheOrder

FulfillmentPortal.

2. ThecustomerorderdataissavedinXMLformatonAmazon’sSimpleStorageService.

3. AnOrderEventMessagefromtheAmazonSimpleStorage(usingAmazon’sMessagingService)issentto

GLOCO’sERPsystemthatanorderhasbeenplaced.

4. GLOCO’sERPsystemretrievesthecustomerorderandstoresitintheERP–WMSdatabases.

5. MHSreceivesnotificationfromERPandstartsprocessingnewfulfillmentorderswithin30seconds.

Figure7:GLOCOOrderFulfillmentHighLevelArchitecture


Proposal


ThesecondfigureprovidesahighlevelarchitecturalapproachofGLOCO’sInventoryReplenishmentProcessusing

AmazonCloudServices.Theprocesscanbebestunderstoodbyexaminingthelifecycleoftheinventory

replenishmentprocess.

1. ApurchaseorderemployeecreatesaPOusingGLOCO’sERPPurchasingModule.

2. ThepurchaseorderdataissavedinXMLformatonAmazon’sSimpleStorageService.

3. APurchaseOrderEventMessageissentfromtheAmazonSimpleStorage(usingAmazon’sMessaging

Service)tothevendorsERPsystemthatapurchaseorderhasbeenplaced.

4. ThevendorERPsystemretrievesthecustomerorderandstoresitintheirERPdatabases,readyfor

fulfillment.

5. VendorShipstheordertoGLOCO’sShipping&Receivingaddress.

6. GLOCOInventoryReplenishmentemployeescanstheinventoryintotheKivaMHSSystem.

7. TheKivaMHSSystemExportsPurchaseOrder&InventoryDatatoGLOCO’sERPandWMSsystems.

Figure8:GLOCOInventoryReplenishmentHighLevelArchitecture


Proposal


Figure9:GLOCODetailedTechnicalArchitecture


Proposal


SoftwareComponentsTheinstallationoftheKivaMHSsoftwarewillbeanenhancement/wraparoundtoGLOCO’scurrentERPandWMS

Systemsbyautomatingtheorderfulfillmentandinventoryreplenishmentbusinessprocesses.Theintegrationof

GLOCO’sEnterpriseSystems(ERPandWMS)withKiva’sMaterialHandlingSystem(MHS)andAmazon’sS3services

willrequireextensionstoexistingsoftware.

• TheApplicationServersrunningGLOCO’sERPSoftwareareexistingapplicationserversrunningERP

modulesthat:

o AcceptsCustomerOrderDatafromtheOrderFulfillmentPortalWebServers.

o UpdatesCustomerOrderDataDatabasesReceivedfromKivaMHSApplicationDatabases.

o TransferscustomerorderdatatoKivaMHSApplicationDatabasestoERPDatabases.

o StoresXMLformattedcustomerandPurchaseorderstoAmazon’sSimpleStorageService(Via

ProxyServer).

o SendsCustomerOrderorInventoryEventMessagestoAmazon’sMessagingService(ViaProxy

Server).

• TheApplicationServersrunningGLOCO’sWMSSystemsisanexistingsupplychainapplicationthat:

o ReceivesCustomerOrderDatafromKivaMHSApplicationServers.

(Note:TheexistingWMSSystemsmustremaininexistencefornon-KivaAutomatedInventory)

• TheApplicationServersrunningGLOCOKivaMHSSystemsisanautomatedMaterialHandlingSystem

(MHS)applicationthat:

o Importsandperiodicallyupdatescustomer&inventoryreplenishmentorderdatafromGLOCO’s

ERPandWMSsystems.

o UsesaMHStoERPscriptthatrunscontinuouslyto:

§ ReceiveNewCustomerOrderDataNotificationsfromERPDatabasestoMHSDatabases.

§ TransferCompletedOrderDatafromMHSDatabasestoERPDatabases.

§ TransferInventoryReceivedDatafromMHSDatabasestoERPDatabases.

§ NotifyWMS&ERPonprocesscompletion/events(OrderFulfillment,replenishment,etc.)

o SupportsCustomerOrderLinesPickedReports,dailyactivityandreconcilewithWMS.

o IntegratesandreportstostandardGLOCOerrornotificationandhandling.

o SupportstheimportofXMLformattedfiles.

o ProcessesreceivedERPorderswithin30Secondsofthecustomerorderimport.

• TheWebServersrunningGLOCO’sOrderFulfillmentPortalSoftwareisanexistingsystemthat:

o Providesawebinterfaceforcustomerandinsidesalesordering.

o WebServerStatistics:


Proposal


§ WebSiteHitsperDay.

§ WebBrowserTypesAccessingtheOrderFulfillmentPortal.

§ GeographicalLocationofUsersUtilizingtheOrderFulfillmentPortal.

§ Eventtime.

• TheProxyServerwillprovideProxyServicesforGLOCO’sERPSystemsandperformthefollowing:

o SetupasecureSSLsessionwithAmazon’sS3services.

o PassGLOCO’sAmazonCredentialsforAuthorizationandAuthentication.

o ProvideaSecurityLayerontopofGLOCOEnterpriseSystems.

• TherewillbeS3AmazonspecificscriptsthatwillberunningonGLOCO’sERPandWebSystemsthatsend

thefollowingdatatoAmazonS3AmazonCloudservicevia(ProxyServer)usingasecureSSLconnection.

o Immediately:AnXMLformattedCustomerOrderFulfillmentorInventoryReplenishmentDocument.

o Immediately:ACustomerOrderorInventoryReplenishmentEventMessage.

Amazon Cloud Services Manycloudsolutionprovidersexistthatprovidestoragerelatedservices.Belowarethreesolutionsthatprovide

theseservices:

1. WindowsAzureStorage(http://msdn.microsoft.com/en-us/...)

2. AmazonSimpleStorageService(http://aws.amazon.com/s3/)

3. GoogleCloudStorage(http://cloud.google.com/products...)

ThemainreasonthatHUESEnterpriseConsultantsselectedAmazon’sSimpleStorageServiceisthatWebServices

(AWS)alsooffersanintegratedMessagingService,whichiskeytosignalingGLOCO’sERPsystemsofneworders.

SecondlyHUESEnterpriseConsultantshasstronginternalPHPscriptingsupportandhaveimplementedAmazon’s

SimpleStorageandSimpleQueueServicesatpreviousclientsutilizingKiva’sMHSSoftwarewithgreatsuccess.

FurtherdetailofthefeaturesandsecurityservicesofAmazon’sS3Servicesareasfollows:

DataExchangeTechnology

GLOCOusesstandardwebservicetechnologytofacilitatethepreviouslydescribedprocessesusingRESTprotocols.

Theunderlyingstorage(SimpleStorageService)andcommunications(SimpleQueueService)technologyis

providedviaAWS.

DataSecurityandTransport

Alltransactionsareprotectedbymultiplesecuritymethods,oneofwhichisaGLOCOCustomer-assignedkey.The

servicescansecurelyupload/downloaddatatoAmazonS3viatheSSLencryptedendpointsusingtheHTTPS

protocol.AmazonS3alsoprovidesmultipleoptionsforencryptionofdataatrest.

• TheAmazonSimpleStorageService(S3)providesBlackboardServicesthat:


Proposal


o StoreXMLdocumentsasobjectswithinS3.GLOCOprovidestwosecuredocumentspacesforeachcustomer,

onefortestingandoneforproduction.

o GLOCOandcustomerscanread,write,anddeleteobjectsfromtheS3customerobjects.

o GLOCOandcustomerobjectsarestoredinabucketandretrievedviaaunique,Customer-assignedkey.

o Customerbucketscanbestoredinseveralregionstoaddresslatency,costandregulatoryrequirements.

o Dataupload/downloadandencryptionofdataatrestareprovidedforadditionaldataprotection.

• TheAmazonMessagingService,SimpleQueueService(SQS)provides:

o MessageexchangetoalertofCustomerOrdersandInventoryPO’sviaAmazon(SQS)toexchangemessage

objectswhereonepartyoriginatesmessagesandtheotherreceivesthem.

o Twoqueuesfordocumentcontrol,onethatactsasanoriginatorandtheotherasarecipient.

o Aqueuethatcanbecreatedinanyregionandthemessagebodycancontain64KBoftextinanyformat.

o Messagescanbesent,receivedordeletedinbatchesofupto10messagesor64kb.

o Messagescanberetainedinqueuesforupto14days.

o Messagescanbesentandreadsimultaneously.

Development Platform TheGLOCOCustomerWebPortal’spresentationlayermustbecross-browsercompatibleandsupportboththe

MacintoshandWindowsoperatingsystems.ToensurecompatibilityontheclientsideweareusingHTML5with

CSS3standardsandjQuerywithjQueryUIlibraries.OnserversideweareusingApacheSoftwareFoundationby

usingtheApacheCocoonserializeXMLtoHTMLpages.MicrosoftSQL2012wasselectedasthedatabaseserver

platformbecauseofitsAlwaysOnSQLServerFailoverClusterInstancesandAvailabilityGroupsfeatures,and

integrationwithGLOCO’scurrentSQLServerenvironmentfortheirERPsystems.

SoftwareSolutionsModule view PresentationLayer:Thislayeriscomprisedofthemainuserinterfacemodules,whichareresponsibleforsending

thepresentationaspectsofthesolutiontotheuser’sbrowser.Thislayerreceivesinformationandtransaction

resultsfromtheapplication/businesslogiclayeranddisplaysallsysteminformationtotheuser.Thislayeralsohas

directinteractionwiththecrosscomponentservicessuchassecurity,operationalmanagement,communications,

andreporting.

Application/BusinessLogicLayer:ThislayerorchestratesallofGLOCO’sbusinessrequirementsandworkflows

forthecustomerorderfulfillmentandinventoryreplenishmentprocesses.Informationresultingfromthebusiness

processesandworkflowsaresharedwiththeintegrationlayerforeventnotifications,datastorageviathedata

layer,anddatatransformation.Thislayeralsomakesuseofthecrosscomponentservices.


Proposal


IntegrationandDataLayer:Thislayerprovidesthecorescripting,dataprocessing,XMLTransformation,anddata

storageservices.Thislayerisresponsibleforensuringdataintegrityandappropriatestorageineachrespective

softwarecomponentdatabase.Thislayeralsomakesuseofthecrosscomponentservices.


Proposal


Component Connector View Thecomponentconnectorviewillustratesthelogicalruntimeconnectionsandprotocolsusedformodule

intercommunication.TheWebBrowserperformsRESTinvocationsoverHTTP(s)viatheJQuerylibrariestothe

GLOCOWebServicesresidingonthewebservers.Thewebserversactasmainrequestproxyservices,which

implementthecommonservicessuchassecurity.Oncetherequestisvalidatedandarouteisdetermined,theweb

serverissuesaRESTinvocationviaHTTP(S)totheapplication/businesslogiclayer.Dependingontheworkflows

executedbytheapplication/businesslogiclayer,thislayerwillthenissuetheappropriateinvocationsviaRESTover

HTTP(s)totheintegratedGLOCOandthirdpartyservices.Oncethisprocesshasbeencompleted,the

application/businesslogiclayersendsXMLdocumentsoverRESTtotheintegration/datalayerforXMLprocessing,

transformation,andstorage.ThedatalayerutilizesADO.NETtoissuetheappropriateSQLqueriestopersistthedata

intherespectivedatabases.


Proposal


Allocation View Thewebbrowserswillbehostedandexecutedonuser’smobile,laptop,ordesktopcomputers.Amazonwillbe

hostingthethirdpartyS3andSQSservices,andwillallocatetheappropriatehardwareandsoftwarenecessaryfor

thesecommonservices.GLOCOisresponsibleforinstallingandconfiguringthenetworkdevicesnecessaryfor

inboundInternetorthirdpartyHTTP(s)traffic.Thesedevicesmayincludebutarenotlimitedtofirewalls,load

balancers,andapplicationlayerfirewalls.GLOCOwillbehostinghardwareandsoftwarefortheApachewebservers,

whichhostthehttp(s)proxies.Thewebserverswillbeallocatedinthedemilitarizedzone(DMZ).Theapplication

serverswillbehostedandallocatedinGLOCO’sinternalsecuredprivatenetwork,whichmayonlybeaccessedby

theGLOCOwebserversintheDMZ.TheGLOCOIntegrationanddataserversarealsohostedintheinternalprivate

network.TheMicrosoftSQLserverswillbeconfiguredinclusteredandfaulttolerantmodeandwillhostallthe

respectivedatabasesforthesolution.


Proposal


System Metrics

GLOCOSystemMetricsFactor EstimatedValue

NumberofUsers

TheprojectednumberofusersthatwillutilizetheKivaMHSsystemis247.Thisisderived

from190Internetcustomers,50GLOCOvendors,5orderpickers,and2inventory

replenishmentworkers.

CustomerOrder

Transactions

GLOCOwillprocessesabout216ordersper8-hourdaybasedonanaverageof12

linesperorder.Thiswilltranslateinto78,840ordersperyearbeingshippedand

processedthroughGLOCO’sERP-WMSandKivaMHSsystems.

InventoryReplenishment

Transactions

GLOCOhas50authorizedvendors,eachofwhichreceives24PurchaseOrdersperyear

thataverage800inventorylineitems.TheKivaMHSandGLOCOERP-WMSsystemswill

receiveandprocess960,000inventorylinesperyear.

LinesPerDay

Itisestimatedthateachworkerwillpick65inventorylinesperhourperKivaworkstation

(Totalof5workstations)resultinginatotalof2,600transactionslinesbeingprocessedby

theKivaMHSandGLOCOERP-WMSsystemsper8-hourday.

SystemResponseTime

GLOCOcustomerresponsetimeusingtheOrderFulfillmentPortalwillbebasedontheir

InternetconnectivityspeedsandGLOCO’swebserverresponsetimes.

ThePage-LoadSpeed/CostCalculatorwasintroducedduringthisengagementbyBryan

KilpatricktoGLOCOandtestingwithastandardbroadbandconnectionshowsthat

GLOCO’swebpageloadsaverage1.4seconds.GLOCOcontinuestomonitortheend-to-end

pageloadaveragesandaddadditionalwebservers(ifnecessary)intotheloadbalancer

webinfrastructuretoensurepredictablewebserverresponsetimes.

ServerAvailability

GLOCO’sERP-WMSandKivaMHSsystemsaredesignedinaserverclusterenvironment

thatallowsGLOCOtofailoverservernodesforsystemhardwarereplacement,software

patchingandOperatingSystempatching.Thisensures100%uptimeofGLOCO’scritical

processingsystems.

DatabaseAvailability

GLOCOcurrentlyutilizesSQLServer2012foritsERPsystemsthatutilizetheAlwaysOn

SQLServerFailoverClusterInstancesandAvailabilityGroupsfeaturesthatensurehigh

availabilityfortheirdatabaseinfrastructure.TheKivaMHSdatabasesinstanceswillbe

addedtoGLOCO’sexistingSQLServerinfrastructuretoensure100%uptimeofGLOCO’s

criticaldatabaseinfrastructurethatsupportstheERP-WMSandKivaMHSapplications.

NetworkAvailability

TheKivaMHSsystemutilizesExtricom’swirelessnetworkswitchesandwirelessaccess

pointsthatareinstalledina2Nconfiguration.Thedesigndeploys2wirelessaccess

switches,eachofwhichprovideaprimaryandsecondarywirelessaccesspointtothe

wirelesscoverageareaswithinGLOCO’swarehouse.

KivaRobots Atotalof35Kivarobotsexistintheconfiguration,eachrequiring5minutesofbattery


Proposal


rechargeevery2hours.Duringan8-hourshifteachrobotwillbeunavailableforatotalof

40minutesforrechargingpurposesresultingin23.33hours(approx.3robots)of

downtime.Thesystemdesignrequires30robotstomeettheorderpickingandinventory

replenishmentbusinessrequirementsofGLOCOandfactorsin5additionalrobots.The5

additionalrobotsallowGLOCOtocontinuetomeettheirbusinessrequirementsby

providing3robotsduringbatterymaintenanceperiods,and2robotsintheeventofrobot

failure.

Integrationwithexistingenterprisesystems

Customer Order Fulfillment Integration TheKivaMHScoresoftwarecomponentsutilizetheKiva’sWMSAPItointegrateintoGLOCO’sEnterpriseERP-WMS

module.Uponthecompletionofthecustomerfulfillmentprocess,theMHScustomerorderfulfillmentrecordis

updatedtotheappropriateERPmodulesonGLOCO’ssystems.


Proposal


Inventory Replenishment Integration TheKivaMHScoresoftwarecomponentsutilizetheKiva’sERPAPItointegrateintoGLOCO’sEnterpriseERP

systems.Uponthecompletionoftheinventoryreplenishmentprocess,theMHSinventoryrecordisupdatedtothe

appropriateERPmodulesonGLOCO’ssystems.


Proposal


DataDesignandManagement

Order Fulfillment Data Design TheOrderFulfillmentXMLdocumentstoresthenecessaryinformationneededbytheGLOCOERPsystemtoprocess

anorder.BelowisatabledepictingthedatafieldsnecessarytocreateanXMLformattedOrderFulfillment

document.DuringtheImplementationPhase,adatafieldmappingexercisewilloccurbetweenGLOCO’sERP

systems,KivaSystemsandthebelowXMLfieldstoensurecrosssystemcompatibility.SeeAppendixBforGLOCO

attributenamingstandardsandAppendixCforadescriptionofthexmlattributes.

CustomerID CustomercodeassignedbyGLOCOBusinessUnit CustomerbusinessunitidentifierassignedbyGLOCOOrderNumber CustomerassignedordernumberOrderType SO=SalesOrderOrderDate CustomerOrderDate(dateandtimetheorderwasplaced)ShipDate GLOCOshipmentdateComments FreeformcommentsCarrier CarriercodeServiceLevel Carrierservicelevelcode–Ground,Air

Thebelowdiagram(Figure10)showstheCustomerOrderFulfillmentDataFlowforacustomerlocatedonthe

Internet.Thestartofdataflowbeginswithacustomer(afterauthentication)beingpresentedwiththeOrder

FulfillmentDataEntryScreenfromtheOrderFulfillmentWebServeroverasecureconnection.Thecustomerneeds

toenterintheinformationfromtheprevioustable(CustomerID,BusinessUnit,etc.)onthecustomerorderweb

formandthencompletetheorder.Uponordercompletion,theOrderFulfillmentPortalstorestheCustomerOrder

inXMLformatonAmazon’sSimpleStorageServicebyusingtheProxyServerAmazoncredentials.TheOrder

FulfillmentPortaladditionallyplacesaCustomerOrderEventMessageinGLOCO’smessagingqueuewithin

Amazon’sSimpleQueueService(SQS).Amazon’sMessagingServicethensendsanEventMessagetoGLOCO’sERP

systemthatinitiatesacontinuouslyrunningPHPscript(SeeAppendixAforscriptdetails)thatdownloadsthe

CustomerOrderandimportsitintoGLOCO’sERPandWMSdatabases.FinallyacontinuouslyrunningPHPscript

runningontheKivaMHSdownloadsthenewcustomerorderandimmediatelybeginsorderprocessing.


Proposal


Reporting DuringtheRequiredFunctionalityphaseoftheprojectitwasidentifiedthattheKivaMHSsystemmustsupportPDF

andXMLreportformatstointegratewithGLOCOERPreportingsystems.TheAPI’softheKivaMHSandERP

systemsallowforthetransportoftheXMLdatabetweeneachofthesystems,thusenablingGLOCOtocontinueto

useitsERPreportingsystems.

Figure10:GLOCOOrderFulfillmentDataFlow


Proposal


GLOCOERPDatabaseEntities:ThefollowingGLOCOERPdatabaseentitiesareupdatedduringtheabove

dataflow:

SalesDatabase InventoryControlDatabase ShippingDatabase

***NOTE:SeeInventoryReplenishmentDataDesigninAppendixBfortheInventoryReplenishmentDataDesign.


Proposal


SolutionDemonstrationThe following figure shows an image of the MHS<->WMS Integration Dashboard. The dashboard shows the

inventoryreplenishmentformanditsgraphicflowthoughthearchitectureinvolvedintheprocess.TheDashboard

tap shows theMHS Synchronization status of inventory, inventory replenishment and orders. The Inventory and

Inventory replenishment tap show the synchronization status detail of these tasks and theXMLdocuments used

duringthesametasks.TheOrderstapshowsthexmldocumentslogaswell.

Sitewithdemonstrationlocatedathttp://hues.gloco.ermilov.com


Proposal


PartIII.ImplementationPlan Thispartoftheproposaldescribestheimplementationplanforthesolution.

• Projectdevelopmentanddeploymentdescribestheapproach,timeline,andmilestones.

• Operational governance identifies theproject team, describes how stakeholderswill stay involved, anddescribesplansforhandlingrisks,communication,andchangeduringtheproject.

• Userenablementandtrainingdescribeshowtotrainpeopleforusingthesystem.

• Successmetricsexplainshowtheoutcomesoftheprojectaremeasuredandreported.

ProjectDevelopmentandDeploymentThe GLOCO Warehouse Integration project automates both a hardware and software component of the order

fulfillment and inventory replenishment services within GLOCO. While the implementation of Kiva robots and

inventory pod hardwarewill automate the pick and replenish functions, it is equally important to automate the

customerand inventorydata integrationandsynchronization intoGLOCO’sEnterpriseERPSystems. A three-day

designmeetingwilloccurduringthehardwareandsoftwaredesignphasesbetweentheteamsresponsibleforeach

ofthefivephaseswithintheproposedproofofconcept(POC)toensureseamlessintegrationbetweenKivaSystems,

GLOCOERPandVendorEnterpriseSystems.

Project Development Timeline The timelinebelow reflects the fivemajorphasesnecessary for the successful implementationof theWarehouse

IntegrationPOCProjectfortheGLOCO’swarehousechosenasthepilotsite.Thefirstphasewillincludeallproject

stakeholdersandownersofeachwarehousefunctionalareatokickoffboththeprojectandrequirementsgathering

and documentation phase. The second phase will be designing the applicable Kiva and GLOCO hardware and

software architecture and interfaces including the requireddatadefinition templates (i.e. fieldmappingandXML

documents) and database schema. The third phase will be configuring and installing the major hardware and

softwarecomponentsof theKivarobots,podsandwireless infrastructure inadditiontothe integrationinterfaces

with theWMSandAmazonWebServices. The fourthphase involves testing the system,businessprocesses, and

interfaces,whichcomprisetheentireproposedsolution.Thefinalphasewillprovidetrainingfortheendusersand

administrator in conjunction with the subsequent Go-Live of the POC environment. The project manager will

consistentlycommunicateprojectstatustostakeholdersviaaprojectstatusdashboard.

ThetrainingforthisprojectwillconsistofBusinessProcesstrainingandProofofConceptsystemtrainingsessions

to ensure that all hardware, business process, and data integration are operational and clearly understood by

GLOCOpersonnel. ThebusinessprocesstrainingwilloccuronAugust28th–September3rdto introducethenew

automated processes that are replacing themanual ones. Order Fulfillment, InventoryReplenishment, andERP

DatabasePOCtrainingwilloccursimultaneously.TheactualGo-LiveandGO-LivesupportfortheGLOCOWarehouse

IntegrationProjectwillbeonSeptember20th –October4thwith theHUESEnterpriseConsultantTeamon-site to

providecontinuedsupport,andtraining.


Proposal


Figure11:GLOCOWarehouseIntegrationTimeline


Proposal


Figure12:ProjectMilestones

Project Deliverables Table3.1ProjectDeliverables

GLOCOWarehouseIntegrationProofofConceptDeliverables Phases Deliverables

Kickoff,RequirementsGatheringandDocumentation

• BusinessRequirementsandConstraintsDocument• WMS–ERP–MHSUseCases• SystemActors(Operators,KivaRobots,andSystems)• RiskAnalysis• PreliminaryProjectPlan(SeeFigure11)• GLOCOandKivaSoftwareandHardwareDesigns• POCImplementation• GoLive,andPostLiveSupportImplementationPlans.

HardwareandSoftwareDesign • KivaPodandBotDesigns• InventoryReplenishmentUseCases• CustomerOrderFulfillmentUseCases• IterationRequirementsWorkshops• WMS-MHSSoftwareArchitecture• KivaHardwareArchitecture• UpdatedProjectPlan• UpdatedRiskAnalysis• PreliminaryTestPlan• PreliminaryGLOCOWarehouseIntegrationTrainingPlan• PreliminaryHUES–KIVASupportPlan


Proposal


HardwareandSoftwareInstallation • InstalledKIVAHardwareComponents• InstalledMHSSoftwareComponents• IntegrationofKivahardwareandWMS-MHSSoftware• ExtendedTestPlan• ExtendedTrainingPlan• ExtendedSupportPlan

SystemandInterfaceTesting • MHSSoftwareandKIVAHardwareTestResults&TestResultsModifications

• UpdatedProjectPlan• IdentifiedConstraints,BottlenecksandRisksimpacting

finaltrainingandGoLive.TrainingandPOCGolive • SystemTrainingManual

• PersonnelTrainingResultReport• KIVASupportManual• OperationsTrainingw/ServiceManagementConcepts• HelpdeskTraining• Incident&ProblemManagementTraining.

Project Deployment The GLOCOWarehouse Integration Project will be a flash cut of GLOCO’s Medical Supply Order Fulfillment and

Inventory Replenishment product lines from a manual input process to an automated process using Amazon

servicesandXMLdocuments. A flashcutdateandtimewillbedefinedtoceaseallmanualprocedures fororder

fulfillmentandinventoryreplenishmentandcutovertothenewautomatedprocedures.Unfinishedorderswillbe

bulk loaded into Amazon S3 services for automated order fulfillment and inventory replenishment. A coinciding

Green-Field installation of Kiva Hardwarewill take place in one of GLOCO’s 100,000 square foot facilities. The

majormigrationstepsfortheprojectdeploymentareasfollows.

SoftwareDesign

This phase will involve designing an XML formatted “Customer Order Fulfillment Document” and an “Inventory

ReplenishmentPurchaseOrderDocument” thatmaptoGLOCO’sERPDatabase fields. The following taskswillbe

requiredtosuccessfullycompletethisphase:

Table3.2SoftwareDesignTasks

Task Dependency

MappingofERPDatabasefieldstoMHSDatabases None.

MapERPdatabase fields toXMLOrderDocument |MapERPdatabasefieldstoXMLInventoryDocument

DependsontheinitialMappingofERPDatabasefieldstoMHSDatabases

ERPScriptsDesignedtoreflectDatabaseMappings Depends on all database and XML mappings to becomplete.

CustomerWebPortalCodeUpdatedToOutputXML Depends on all database and XML mappings to becomplete.

SalesWebPortalCodeUpdatedtoOutputXML Depends on all database and XML mappings to becomplete.

UpdateScreenInterfacesforMedicalLine Thistaskdependsonpreviousrecordedandapprovedinterfacerequirements.

OrderLinesPickedandInventoryReplenishreports Depends on all database and XML mappings to becomplete. In addition, this task depends on previous


Proposal


recordedandapprovedreportingrequirements.

BusinessProcessRedesign

ManyofGLOCO’smanualbusinessprocesseswillbereplacedbyautomatedhardwareorsoftwarecomponentsof

theproject.DuringthePOCphasethemanualbusinessprocessesbelowwillbeflashcuttotheautomatedprocess.

BelowisamappingofGLOCO’smanualtoautomatedprocessesforthisproject.

Table3.3GLOCOBusinessProcesses

GLOCOBusinessProcesses ManualProcess AutomatedProcess

CustomerOrderEntry CustomerOrderEntryWebPortal

SalesOrderEntry SalesOrderEntryWebPortal(MedicalDevicesOnly)

InventoryReplenishmentDatabaseStockReceived AutomatedInventoryDatabaseUpdateUponScanning

CustomerOrderItemsShippedDatabaseUpdates AutomatedItemsShippedDatabaseUpdates

CustomerOrderPickandPack RoboticGoodsToPersonandPack

SalesOrderdatabasesupdatedwithCustomerOrderdata CustomerOrderDatawillupdatefromtheMHStotheERPSalesOrderDatabaseautomatically.

PurchaseOrderdatabasesupdatedwithvendorreceiveddata

PurchaseorderreceiveddatawillupdatefromtheMHStotheERPPurchaseOrderdatabaseautomatically

CalculationofandReportingonorderlinespicked Automatedorderlinespickedreport

OperationalGovernanceThissectiondescribesoperationalgovernancefortheproject.Thissection:

• Identifiesneededresources.• Describeshowstakeholderswillstayinvolved.• Describesplansforhandlingchange,communication,andriskduringtheproject.

Resources Themain resources required to complete thisproject are staff fromGLOCO, teammembers fromKiva andHUES

EnterpriseConsultants.

GLOCO Executive sponsorship and oversight is a key element for the success of the project, their support and

managementincreasestheprobabilityofsuccessandenablesbettermanagementofrisks.

HUES will recommend to GLOCO a full project governance model which includes and executive and steering

committee;thetablebelowdescribesderolesincludedinthecommittees.


Proposal


Table3.4ProjectTeam

ProjectGovernanceRoles Role Description

GLOCOExecutiveSponsor

ThispersonprovidesfinalapprovalformajorprojectchangessuchastheImplementationTimeLineandtheoverallprojectbudget.Inaddition,theExecutiveSponsorapprovesanyexceptionsthatareescalatedbytheGLOCOSteeringCommittee.

GLOCOSteeringCommittee(BusinessRepresentative)

ThisroleensuresthattheprojectisdirectlyalignedwithGLOCO’sbusinessdrivers,requirements,andoutcomes.InadditionthisroleistheliaisonbetweentheSteeringCommittee,technicalrepresentativesandtheGLOCOExecutivesponsor.

GLOCOSteeringCommittee(TechnicalRepresentative)

ThisroleensurethatthetechniclasolutionisalignedtoGLOCO’sbusinessdrivers,requirements,andoutcomes.Inaddition,thisroleistheliaisontotheextendedtechnicalmembersoftheprojectteam.

ExceptionResolutionFlow

Theflowoftheexceptionresolution,decision-makinganddisputeresolutionwillbeprimarilygovernedbythe

steeringcommittee.Ifanexceptionarisesfromwithintheextendedteamthisexceptionissubmittedtothesteering

committeeforevaluationandresolution.Iftheexceptionisrelatedtoatechnicaltopicthenthetechnical

representativeisresponsibleforresolvingtheexceptionandthebusinessrepresentativewillberesponsiblefor

resolvingthebusinessrelatedexceptions.

Iftheexceptioncannotberesolvedwithinthesteeringcommittee,itwillbeescalatedtotheexecutivesponsor,

whichwillprovidethefinaldecision.

GLOCO,HUESEnterpriseConsultantsandKivaProjectTeam

Thetablebelowprovidesalistingofthekeyindividualsneededtocompletetheproject.Eachpositionshowsabasicareaofresponsibility.

Table3.5ProjectTeam

GLOCO,HUESEnterpriseandKivaProjectTeam Role Responsibility

HUESEnterpriseConsultantsProjectManager

Works with Stakeholders and Product development team inunderstandingbusinessneedsand transforming into technicaldetailswithbetterprojecttimelines.

GLOCOSoftwareEngineer Develop and maintain the software systems satisfying all therequirementsthathavebeendefined.

GLOCOSoftwareArchitect

Establishes the basic structure of the computer system, defining theessential core design features and elements ensuring that the newsystemcomponentsintegratewiththeexistingsoftwarepieces.

GLOCODatabaseEngineer Defines the tables, indexes, views, constraints, triggers, storedprocedures, storage parameters, and other entities needed to store,retrieve,anddeletepersistentobjects fromthedatabasesused in theproject.


Proposal


GLOCOHardwareArchitect Establishes the basic structure of the computer system, defining theessentialcoredesignfeaturesandelements.

GLOCOSystemAdministrator Maintainandoperateacomputersystemand/ornetwork.

GLOCOHardwareEngineer Assemble and maintain the hardware systems satisfying all therequirementsthathavebeendefined.

HUESImplementationLead Overseesanddirectsthedeploymentofthenewproducts,servicesandcomponentsfortheproject.

HUESBusinessAnalyst Analyzes the existing environment and design of systems, includingbusinesses, departments, and organizations assessing new businessmodelsandtheirintegrationwithnewprojecttechnology.

GLOCOQAManager Provides end user support and dispatches tickets to servicetechnicians.

GLOCOTechnicalSupport Responsible for top-tier customer and technical support to clientsworking remotely using email, phone, chat and videoconferencing toresolveissues.

HUESTechnicalClerk Organize and maintain project requirements as well as security andtraining records. Scheduling and producing progress reports andreviewingtechnicaldocumentation.

KivaImplementationManager Managingonsiteclientrelationshipsfromimplementationthroughformalcustomeracceptanceofsystem

KivaArchitect Ensuresthatthebasicstructureofthecomputersystem,definingtheessentialcoredesignfeaturesandelementsmeettheKivaimplementationstandards.

KivaTrainer ProvidestrainingontheKivaproductcomponentstokeypersonnel.GLOCOWebDesigner ProduceandmaintainallnewWebpagesandportalsassociatedwith

theproject.GLOCOSoftwareQAEngineer Monitoring the software engineering processes andmethods used to

ensurequality.GLOCODocumentationWriter Developsallprojectdocumentation.GLOCOInformationSecurityEngineer Focusesonthesecurityaspectsinthedesignofallsystems.


Proposal


Figure13:ProjectTeam


Proposal


GLOCO Stakeholders AsGLOCOimplementstheKivasystemtherewillbeaconsiderablenumberofpeoplewithintheorganizationthat

willbeeffected.Toadegreeallofthemwillbestakeholdershowever,therewillbeseveralkeyindividualsthatwillplaya

criticalroleinmakingsurethatthesystemisdeployedandrunningsmoothly.

Table3.6GLOCOStakeholders

Group KeyPersonnel Activities

GLOCOExecutiveTeam CEO,COO,CFO,CIO Alignstheprojectwithcompanystrategyandgoals.

GLOCOSystem SystemArchitectSystemAdministratorHardwareEngineerSystemAnalyst

WorkswithKivaandHuestoensuredevelopmentandimplementationofallrequirements.

Helpstodesignanddeliverthefinalsolution.

GLOCOTechnical SoftwareEngineer

DatabaseEngineer

Provideprojectmanagementsupporttodeliverprojectswithintheestablishedbudgetandtimeline.Developandmaintainthesoftwaresystemssatisfyingalltherequirementsthathavebeendefined.Suggestscoursecorrectionsasneeded.

GLOCOTraining TechnicalSupportQAManager

Providestheend-userstakeholdertrainingneededtorunthenewfulfillmentsystemfromeveryinvolveddepartment.

GLOCODevelopment Designer

SoftwareQAEngineer

DocumentationLead

InformationSecurityEngineer

Providesthefinaldeliverablesforallstakeholderstoconsiderfromthetopdown.Effectschangesasneededtoaccommodateanynewdevelopmentsorobstacles.

HuesProjectManagement

ProjectManager

ProjectSpecialist

Followscommunicationplan.

Followsriskmanagementplan.

Monitorshealthofproject.

Reportstosupervisorystakeholders.

Holdsnodirectresponsibilityfortheproject.

HuesImplementation RequirementsAnalystBusinessAnalystTechnicalClerk

Generatesprojectdocumentsandensuresthattheprojectfollowsthepreviouslyidentifiedgoalsfromthemajorstakeholders.

Kiva ImplementationManager

Trainer

Ensuresthattheimplementationfollowstheprescribedprocessforallintegrationandworknecessarytocompletetheprojectandhanditoff.

WarehouseEndUsers Warehousefulfillmentworkers,Warehousereplenishmentworkers

Theendusersofthesystemsandhardwarethatistobeimplemented.Theseworkerswillprovidefeedbackonthenewsystemsandhowtheyarefunctioningprovidingpossiblerecommendationsonissuesthatmayneedtobeaddressed.


Proposal


Thechartbelowdepictsthevariousstakeholderswithintheprojectteam.Specialnoteshouldbemaderegarding

theHUESimplementationteamandtheKivateamshowninorange,bothofwhichwillbeservingasconsultants

throughouttheprojectbutwillhavenoinvolvementoncetheimplementationiscomplete.Theteamhasvarying

degreesofinvolvementfromthetop,whichwillhavetheleastamountofhandsonresponsibilities,tothebottom,

whereindividualswillbeworkingverycloselywithdifferentelementsoftheproject.However,regardlessofthe

positionwithinthechartallofthestakeholdershaveavestedinterestinseeingtheimplementationthroughtoa

successfulend.

Figure14Stakeholders


Proposal


Communications Dashboard During the length of the project one of the primary mediums of communication will be the GLOCOWarehouse

IntegrationDashboard.Thisdashboardwillbeupdatedonaweeklybasisandwillserveasakeyproject tracking

mechanism.Thedashboardwillcontainoverallred,amber,green(RAG)statusinadditiontoaGanttchart,Ongoing

Activities,HighLevelMilestoneChart,RiskLogandanIssueTracker.

Go Live and Post Go Live Communications Plan

AspartofthePOCTrainingandGoLivephase,anOperationstraining/workshopwillbeprovidedtoidentify

appropriateincidentandproblemmanagementprocedures.Asanoutputofthisphase,aHelpdeskTrainingand

EscalationProceduresDocumentwillbedefined.Tomitigaterisk,allprocedureswillbebasedonservice

managementconcepts(ITSM)withtheexpectationthattheGoLivepersonnelwillfollowthesedocumented

procedures.

FortheGo-liveandPostGo-Livephasestheprojectwillimplementaprocesstoresolveissuesandanykindof

changethatcouldbeneededinatimelymanner,deliveringquickresolutions.Thestrategyisdevelopedfocusedon

endusersandenablingthemtoaccessthecorrectinformationandassistancetocompletethetasksrelatedtotheir

jobs.

Figure15:CommunicationsDashboard


Proposal


IntheearlyinstancesofGo-Livedefinedasthefirst3weeks,theprojectteamwillofferOn-siteassistancetokey

areasintheimplementation;thoseareasare:GLOCODatacenteroperations,GLOCOServiceCenterincluding

customerandvendorsupport,InfrastructureServiceswhichincludesalltheKIVAhardwareimplementationand

basicandadvancedHelpdesk.

Duringthisearlystagetheinvolvedstaffwillattenddailymeetingstoallowthemtoreporttheidentifiedincidents

andissuesintheirrespectiveareas.Thesemeetingswillenabletheresolutionproblemprocessresultinginacourse

ofaction.Thepresenceofthestaffinthismeetingiskeyforthefastandsuccessfulresolutionoftheissues;the

personnelmustinclude:

• BusinessOwner/ProcessManager

• ProductManager

• ProjectManager

• SupportManager

• DataCentermanager

• Projectteammembers

• Othersthatcouldbekeytotheresolutionoftheissue.

Afterthego-liveandpost-golivestages,anychangeintheimplementationwillbemanagedthroughanescalation

andresolutionprocessgivingemphasistotheeventcriteriaandmeasurement.Theissueatstakewillbeevaluated

againstthepreviouslyidentifiedrisksandiftheissueisnon-disruptivetheissuewillbeescalatedtotheproduct

managerforhe/shetotakecorrectiveactionincollaborationwiththeimpactedmanagers.Iftheissuerepresents

multipleidentifiedrisksandthesystemisexperiencingsignificantissues,theproductmanagermusttakeimmediate

actionincollaborationwiththeimpactedmanagersandifnecessaryperformimmediateallocationofresources.

Thepostgo-liveprocessesandescalationmustadheretotheoperationalgovernanceframeworkdefinedin

OperationGovernance:ExceptionResolutionFlow

Risk Management RiskmanagementiscrucialforthesuccessoftheGLOCOWarehouseIntegrationProject.Itwillbeusedaspartofthe

projectplanningandcontrolandisatoolthatwillhelptoreducetheprobabilityofprojectfailure.Thissection

showsthetop10risksidentifiedforthisprojectfromRequirements,PlanandControl,Organization,User,Cloud,

Team,Databaseandthemanagementstrategyforeachone.


Proposal


Table3.7ProjectRisks

GLOCOWarehouseIntegrationProofofConceptRiskArea RiskDescription Likeli

hood Impact ManagementStrategy

Requirements Continuouschangeofrequirements Medium High

Iterativegatheringofrequirementsandsignoffs.

Requirements

SystemRequirementsnotcorrectlyidentified Low High

Requirementcheckpointsthroughouttherequirementsgatheringphase.

Requirements UnclearSystemRequirements Low High Prototypevalidationsduringthephasestoconfirmthattherequirementsarebeingmet.

PlanandControl

Projectprogressnotmonitoredadequately Low High

Consistentuseoftheprojectstatusdashboardonaweeklybasis.

PlanandControl Inadequateestimationof

Resources High High

Resourceidentificationandconfirmationshouldbedoneatleast3weeksbeforethephasestarts.

PlanandControl

Overrunoftimeallocatedforeachphase Medium High

Consistentlyidentifyandremediatebottlenecksandconstrains.

Organization

Changeinorganizationalenvironmentduringtheproject Medium Medium

Addenoughbuffertimeintheprojectplantoallowforvariabilityofprojectexecution.

User UserResistancetoChange High High

Strongstakeholdersponsorshipandstrongusertrainingandenablementiniterationsduringallphasesofprojectplan.Stakeholdersanduserswillbeconsistentlyexposedtoallsystemsduringallphasesofimplementation.

Team TeamMemberslackofSpecializedskillrequired Low High

DuringResourceidentificationtherewillbeaskillsassessmenttoensuretheproperresourcesareallocated.

Cloud NetworkConnectivitytoAWSfailure Low High

Specificnetworkconnectivitytestwillbeperformedduringthesystem-testingphase.

Dependencies and Constraints ThesuccessfulimplementationoftheGLOCOwarehouseintegrationPOCwillbepossibleifthefullsetofbusiness

requirementsareidentifiedandincludedintothedesign,installationandintegrationprocess.Thesuccessofthe

POCwillbedirectlytiedtothecorrectallocationofhumanandfinancialresourcesbyGLOCO.HUESsuccessin

identifyingrequirementsanddevelopingthecompletePOCisdirectlytiedtoGLOCOexecutiveandusercommunity

sponsorship.HUESandGLOCOwilldevelopanddelivertheappropriatedocumentationtosupportthestartand

finalizationofeachoftheprojectphases.


Proposal


Supporting Non-Functional Components BackgroundProcessesHealthMonitoring

ScriptshavebeenimplementedtosynchronizeXMLdatabetweenERPandAmazonS3.Amazon’sSimpleQueue

Service(SQS)willprovidethefunctionalitytoconnectAmazonservicestoGLOCO’sIBMTivoliLiveMonitoringService.

IntheeventofAmazonService

connectionissuesorscriptfailures,

theLiveMonitoringServicewillsend

notificationtotheITteamandanalert

willberaisedinTivoliapplication

dashboard.

TheITsupportteamwillhaveaccess

toAWSandMHSSynchronization

Dashboardpageswithdetailed

informationaboutcurrentlyexecuted

scriptsandquickaccesstothelogsof

recentoperations.IBMTivoliLiveMonitoringService

OrdersExecutionMonitoring

Ordersandreplenishmentordersexecutionstatuswillbetrackedondifferentlevels:

ApplicationlevelMHS-Constantlogmonitoringwatchesforeachorderexecutiontimeandsendsnotificationin

caseofhighaverageexecutiontimeorwhensomeorderexecutiontimeisoveradefinedthreshold.

AnotherdimensionofcheckisperpositionQtyreport:StartofdayStyandreservedSty,Styreceived,Styordered,

Stycanceled,Styshipped,endofdayStyandreservedqty.

• EndofdayStymustbeequalStartofdaySty+receivedSty-shippedqty.

• EndofdayreservedStymustbeequalstartofdayreservedSty+orderedSty-shippedSty-canceled

orders.

LocalWarehouseLevel-WMShasdailyreports,whichincludestatisticsbasedonWMSdatabaseaboutorders

received,ordersexecuted,andorderstransferredtothenextday.Ifbalanceisnotequal,detailedinvestigation

basedonMHSlogsshouldbeexecuted.

EnterpriseLevel-EachclientandvendorintheERPsystemwillhaveabalancereportwherewecanseeorders

andpaymentsstatusallocatedpereachinvoice.Tracking"non-closed"invoicesallowustocatchupnon-paid,non-

shippedandnon-processedorders.


Proposal


Aswecansee,theapplicationlevelgiveusperpositionintegrity,thewarehouselevelgiveusperorderintegrityand

warehousegivesusperinvoiceintegrity.Thisapproachallowsustocatchmostproblemswithordersand

replenishmentrequests.

S3andSQSServicesAccessManagement

TheAWSandMHSSynchronizationDashboardwillprovidethefunctionalityformanagingaclient’saccesstodata

byadjustingtheusers’accessrightswiththeAWSIdentityandAccessManagement(IAM)API.

http://docs.aws.amazon.com/IAM/latest/APIReference/

TechnicalSupportandDisasterRecovery

TheTechnicaldocumentationwillprovideGLOCO’sITsupportteamswithafulllistofscripts,theirlocationand

scheduleparameters.Itwillalsoincludethesystemrequirementsfortheexecutionenvironment(hardwareand

software)andinstallationinstructions.

Users Support and Help Desk TwonewsupportareaswillbeassignedtotheGLOCOHelpDeskTeam:

1. CustomersandVendorsOrdersWebPortal

2. CustomersandVendorsERPconnectioninterfacetoGLOCOOrdersInterchange

AllHelpDeskrequestsaboutFulfillmentorReplenishmentOrdersWebPortalfunctionalitywillbedirectedto

GLOCO’smulti-lineHelpDeskSupportLine,onlinechatorsupporte-mail.

RequestsrelatedtocommunicationsbetweenremoteERPsystemsandGLOCO’sERPusingAWSS3andSQLservices

willbetransferredtotheGLOCOB2Bsupportteam.ASolutionsKnowledgeBasewillrecordtherequestsand

prescribedsolutionstoensurefastresolutioninthefuture.

HUESConsultantswillprovidethedocumentationrelatedtotheOrdersWebPortalfunctionalityandAPI

descriptionswithsamplescriptsfortheERPOrdersInformationExchange.

MHS Software and Hardware Support Kivaoffershardwareandsoftwareserviceandsupport.Thereare3waystorequestsupport:

• Phone:Kivasupportisavailable24hoursaday,sevendaysaweek.

• Email:[email protected]

• KivaSupportPortal(Salesforcesolution).


Proposal


UserEnablementandTrainingHUESConsultantsworkingwithKivaSystemswillprovideacertifiedenablementandtrainingprograminaddition

to aKiva Support Specialistwho is available 24x7x365 to address any operational issues.HUESConsultants and

KivaSystemswillsupportanyissuesrelatedtotheWMS<->MHSintegration,GLOCOOrderFulfillmentPortal,MHS

Servers,Robots,StationsandPeripherals.ConsumableandrepairpartsforKivaHardwarecanbeorderedusingthe

Kivaonlineorderingsystems.KivaSystemsoffersseveralsoftwareupdatesayearandthosewillbevalidatedand

testedbyHUESaspartoftheongoingsupportandmaintenancepackage.

All members of GLOCO related to the project like SystemManagers, Station Operators, ReplenishmentWorkers,

GLOCO ITSupport, andGLOCOVendor ITwill receivebasic training in their respective areason-siteprior to the

systemGo-Live. Thiswill ensure thatall the systemusers canapply thebestpractices tohandle the systemand

guaranteeing the best results. In addition GLOCO warehouse supervisors and GLOCO IT personnel will receive

advancedtraining.

AspartoftheprofessionalservicesengagementHUES–KIVAwillberesponsiblefor:

• StandardOperatingProcedureTraining

• VirtualTestSystemTraining

• SoftwareandHardwareInitialTraining

• Consultativeservicesafterclient“GoLive”eventstovalidatethetrainingeffectiveness

Thetrainingmethodsincludedintheplanare:

• Individualhands-oninstructortraining–TheHUESorKivainstructorwillwalkeachindividualthrough

the order fulfillment or Inventory replenishment processes. The instructor will guide each individual

throughcommontasksineachprocessandbeavailabletoansweranyquestions.

• Hands-Oninclassroomtraining -TheclasswillconsistofWarehouseManagers,WarehouseOperators,

and GLOCO IT Personnel. The trainer will demonstrate to the class the complete Order Fulfillment and

InventoryReplenishmentbusinessprocessesthroughlabexercisesthatshowusershowthesoftwareand

hardwarecomponentsofthesysteminteract.Thismethodcanincludeatestlabsetting.

• WebSeminar -This trainingwillbe forsalesandvendor individuals thatarenotonsiteanddon’tneed

directcontactwiththecompletesystem.

• ComputerBasedtraining-ThistrainingisdirectlyaimedatGLOCO’sITpersonnelandprovidescomplete

interactive lessons that take them through Order Fulfillment and Inventory Replenishment automated

processes.

• BookBased–Theenduserswillhaveaccess tosystemdocumentation, trouble-shootingdocumentsand

trainingmaterialinPDFformattosupportGLOCO’sgo-greencampaign.

BasedontheGLOCOWarehouseIntegrationProposalTimelinethemilestonesrelatedtothetrainingprocessare:

• Businessprocesstrainingdocumentationdeliveryby08/21/13

• Businessprocesstrainingstarts8/28/13


Proposal


• OrderFulfillment,InventoryReplenishmentandDBtrainingstarts8/28/2013

• SystemtrainingManualdeliveryby9/4/2013

• ProofofConceptSystemTrainingby9/11/2013

Data and Content Management

KivaSystemDataandManagement

• GLOCO’swarehousemanagersandoperatorsmanagetheKivaMaterialHandlingSystem(MHS)customerorder

andinventoryreplenishmentdata.

o Databaseviewsofthedataprovidetrendingandsecurityviewsandreportstouppermanagement.

TheKivaManagementConsoleprovidesthebelowDatabaseViews,Descriptions,DataandArchiveRetention

Schedules.DataRetentiondataisstoredinthemainKivaSystemdatabasesandautomaticallyarchivedbasedonthe

ArchiveRetentionScheduletoArchiveDatabaseinstances.

Table3.8RetentionsSchedules

KivaSystemDataRetentionSchedules DatabaseViews Description DataRetention

ScheduleArchiveRetention

Schedule

OrderView ProvidesTotalCurrentOrders,OrderDetail,TotalOrdersCompleted 1Year 10Years

OperatorView ProvidesOperatorLastLogin,LoginSessionTime,TotalOperatorOrdersProcessed 1Year 3Years

ItemView ProvidesItemDetail,TotalLinesProcessed,Top25ItemsPicked,In-StockSty,On-OrderSty 1Year 10Years

SystemView ProvidesTotalOrdersFulfilled,TotalOrdersReplenished,TotalRobotsManaged,TotalUptime, 1Year 2Years

RobotView ProvidesTotalItemsPicked,TotalItemsReplenished,TotalOperationalTime,LastBatteryCharge 1Year 2Years

ERP–MHSDataandManagement

• TheERPorderfulfillmentresultsdataisimportedinfromtheKivaMHSsystemdatabasesandismanagedby

GLOCO’sERPSystemAdministratorsandInventoryControlandSalesAnalysts.

o ProvidesCustomerOrderResults,InventoryControl,andSalesdatainputstotheGLOCOERPModules.

o TheGLOCOERPsystemsfollowthesameDataandArchiveRetentionschedulesasnotedTable3.7.

• TheERPpurchasingdataisimportedinfromtheKivaMHSsystemdatabasesandismanagedbyGLOCO’s

SystemAdministratorsandPurchasingAnalysts.

o ProvidesPurchaseOrderandInventoryControldatainputstotheGLOCOERPModules.

o TheGLOCOERPsystemsfollowthesameDataandArchiveRetentionschedulesasnotedTable3.7.


Proposal


AmazonStorageDataManagement

• ThecustomerorderfulfillmentandinventoryreplenishmentXMLdocumentsarecreatedbyGLOCOERPscripts

andstoredonAmazonSimpleStorageService.

o ProvidesCustomerOrderFulfillmentandInventoryReplenishmentXMLfilesasaninputintoGLOCO’s

ERPandVendormodules.

o AmazonWebServices(AWS)providesamanagementconsoletodefinethedataretentionandarchive

scheduleforthesedocuments.

§ TheAWSarchivalstrategyforXMLdocumentsis30days,astheGLOCOERPSystemsserveas

thesystemofrecord.

AmazonSimpleQueueService(SQS)DataManagement

• GLOCOERPscriptscreatecustomerorderandinventoryreplenishmenteventmessagesusingtheAmazon’sSQS

servicetoalerttheGLOCO’sERPsystemsofnewcustomerorders,andGLOCO’svendorsofnewpurchase

orders.

o MessagesthatarestoredinAmazonSQSaredeletedimmediatelybyAmazon’smessagingsystemupon

receivingaReceiveMessagecommandfromGLOCO’sERPRESTscripts.

SystemAdministrationDataandManagement

• TheGLOCOLogRotationScripts&SystemSchedulerrotatesthewebserveraccessanderrorlogdataforall

GLOCOservers.

o Thelogsarerotatedevery30days.SeeAppendixAformoredetail.

KivaSoftwareUpdates

• GLOCOSystemAdministratorstestandapplytheKivaMHSsoftwareupdatesthatareprovidedbyKivaSystems

onaquarterlybasis.

o Theupdatesprovidefeatureenhancementandbugresolutionswillbeappliedduringadefined

softwarereleaseschedule.

SystemPatchUpdates

• TheGLOCO’sSoftwareUpdateServerprovidesOperatingSystempatchupdatesthatareinitiallytestedand

reviewedbyGLOCO’sSystemAdministratorsbeforebeingappliedtoGLOCO’sproductionservers.

o Theupdatesprovidefeatureenhancement,bugresolutionandsecurityresolutionsandwillbeapplied

duringGLOCO’salreadyestablishedpatchwindows(Saturday4am–6am).


Proposal


SuccessMetricsThefollowingtableshowsthemetricsthisprojectwillusetomeasuresuccess.

Table3.9ProjectSuccessMetrics

GLOCOMetric GLOCOGoal

IncreasedRevenue

IncreaseGLOCO’sCustomerOrderrevenues2%-3%.

WiththeimplementationoftheKivaAutomatedMaterialHandlingSystem,GLOCOwillbeabletoincreasetheorderfulfillmentrateforthemedicalsupplylinewithinthePOCdistributioncenterby17%thusreducingtheturnaroundtimefororders.Currentlysalesdemandforthemedicalsupplylinecausesa3-dayorderturnaroundwiththeexistingmanualprocessthatwillbereducedtoasingledaywiththeKivaautomatedsolution.ThiswillallowGLOCOtoforgobuildingoutadditionalwarehousespacetomeetthecurrentdemandformedicalsupplyorders.TherewillbeanincreaseinrevenuefromcustomersatisfactionandtimetoshipconfidencewithintheB2CandB2Bmarketthatwillberealized.Theestimatedincreaseexpectedis4%consideringtheimprovedcustomersatisfactionandreductioninunnecessarywork.

CostReduction

IncreaseGLOCO’sOrderFulfillmentrateby5.4%.

ThroughtheimplementationanduseoftheKivaSystem,expectationsarethattherewillbeanoverallincreaseintheorderfulfillmentrate.Workerswhowouldnormallytendtoworkononeorderatatimewillnowbeabletohandlemultipleorders,thusincreasingorderthroughput.Thebottomlineresultofthisfulfillmentrateincreasewillbeabout9%withrespecttooverallrevenue.ThiswillhelptodecreaseGLOCO’scostperorderattributedtoorderprocessingby3%.

GLOCOwillrealizea3%reductioninorderprocessingcostsduetotheeliminationoforderprintingtime,paperreduction,orderpickingtimes,andorderrekeyingofshippeditemswhenprocessedthroughthenewautomatedsystem.

IncreasetheorderfulfillmentrateforthemedicalsupplylinewithinthePOCdistributioncenterby17%thusreducingtheturnaroundtimefororders.

ThereductioninturnaroundtimewillallowGLOCOtoforgobuildingoutadditionalwarehousespacetomeetthecurrentdemandformedicalsupplyorders.Thisreductionwillallowforthere-investmentofCapitaldollarsassociatedwithwarehouseconstructionandOperatingsalariesandbenefitsdollarscanbeplacedintoinventorystocktoincreaseorderfulfillmentrates.

ImprovedCashFlow

IncreaseGLOCO’scashflowby5.4%.

Improvementsininventoryreplenishmentwillsubstantiallyreducethetimeandcoststhatareassociatedwithkeepingoptimallevelsofinventory.A5.4%increaseincashflowwillresult.

Improvetheinventoryaccuracyfrom94%to99.9%.

Animprovementininventoryaccuracyfrom94%to99.9%alongwiththeabilitytomovetoajustintimeinventorypolicy,willresultinanoverallreductionininventoryholdingcostsofapproximately15%thusimprovingcashflow.


Proposal


AppendixA.GLOCOSoftwareIntegrationScripts

UploadaFiletoAmazonS3<?phprequire'vendor/autoload.php';useAws\Common\Aws;useAws\S3\Enum\CannedAcl;useAws\S3\Exception\S3Exception;//InstantiateanS3client$s3=Aws::factory('/path/to/config.php')->get('s3');//Uploadapubliclyaccessiblefile.Filesize,filetype,andMD5hashareautomaticallycalculatedbytheSDKtry{

$s3->putObject(array('Bucket'=>'my-bucket','Key'=>'my-object','Body'=>fopen('/path/to/file','r'),'ACL'=>CannedAcl::PUBLIC_READ));

}catch(S3Exception$e){echoThefilewasnotuploaded.\n;

}

DownloadaFilefromAmazonS3andsaveittoafile<?php

require'vendor/autoload.php';

useAws\Common\Aws;

useAws\S3\Enum\CannedAcl;

useAws\S3\Exception\S3Exception;

//Instantiatetheclass.$s3=newAmazonS3();

$response=$s3->get_object($bucket,$keyname);

//Getarangeofbytes.

$response=$s3->get_object(

$bucket,

$keyname,

array('range'=>'0-10'));

//Saveobjecttoafile.

$response=$s3->get_object(

$bucket,


Proposal


$keyname,

array('fileDownload'=>$filepath));

}

SendMessage-PHPCodeforAmazonSimpleQueueService*SENDMESSAGE**************************///SendamessagetothequeueusingtheAWS-PHP-SDKfunction,send_message.$sndmessage=$sqs->send_message($url,'HAVEANICEDAY');//ThemessagebodyisanarrayelementintheCFResponseObject[header].$message=$sndmessage->header['x-aws-body'];echo'<h2>SENDMESSAGE</h2>';print'<pre>'.print_r($message,true).'</pre><br/></br/>';

ReceiveMessage-PHPCodeforAmazonSimpleQueueService/****************************RECEIVEMESSAGE**************************/$received=$sqs->receive_message($url);echo'<h2>RECEIVEMESSAGE</h2>';print'<pre>'.print_r($received,true).'</pre><br/></br/>';//Storethereceipthandle,whichisaCFSimpleXMLobjectfilteredfromthe//CFSimpleXML[body].$receipthandle=$received->body->ReceiveMessageResult->Message->ReceiptHandle;echo'<h2>ReceiptHandle</h2>';//Printreceipthandle.echo'<pre>'.print_r($receipthandle,true).'</pre><br/><br/>';

DeleteMessage-PHPCodeforAmazonSimpleQueueService/****************************DELETEMESSAGE


Proposal


**************************///Deletesamessagefromaspecificqueueusingthereceipthandle$deletemessage=$sqs->delete_message($url,$receipthandle);echo'<h2>DELETEMESSAGE</h2>';echo'<pre>'.print_r($deletemessage,true).'</pre>';

GLOCOERPXMLImportScriptForCustomerOrderFulfillment<?php$oDOM=newDOMDocument();$oDOM->loadXML(file_get_contents('glococustorder.xml'));foreach($oDOM->getElementsByTagName('ShipOrderDocument')as$ShipOrderNode){printf(

"INSERTINTOSales(CustomerID,BusinessUnit,OrderNumber,OrderType,OrderDate,ShipDate,Comments,ShipToCompany,ShipToContact,ShipToAddress1,ShipToCity,ShipToState,ShipToPostalCode,ShipToCountry,ShipToEmail,BillToCompany,BillToContact,BillToAddress1,BillToCity,BillToState,BillToPostalCode,BillToCountry,BillToEmail,DeclaredValue,ItemNumber,QuantityOrdered,QuantityToShip,UOM,Price)VALUES('%s','%s','%s','%s','%s','%s','%s','%s','%s','%s','%s','%s','%s','%s')",

"INSERTINTOInvCtrl(ItemNumber,QuantityToShip,Price)VALUES('%s','%s')",

"INSERTINTOCustShip(CustomerID,Carrier,ServiceLevel,DeclaredValue)VALUES('%s','%s','%s',‘%s’)",

mysql_real_escape_string($ShipOrderNode->getElementsByTagName('CustomerID')->item(0)->nodeValue),mysql_real_escape_string($ShipOrderNode->getElementsByTagName('BusinessUnit')->item(0)->nodeValue),mysql_real_escape_string($ShipOrderNode->getElementsByTagName('OrderHeader')->item(0)->nodeValue),mysql_real_escape_string($$ShipOrderNode->getElementsByTagName('OrderDetails')->item(0)->nodeValue));}?>

GLOCOERPXMLImportScriptForInventoryReplenishment<?php$oDOM=newDOMDocument();$oDOM->loadXML(file_get_contents('glocoinvreplenish.xml'));foreach($oDOM->getElementsByTagName('PurchaseOrderDocument')as$POrderNode){printf(

"INSERTINTOPurchasing(VendorID,PoNumber,BusinesUnit,OrderDate,ClientID,Company,ShipToCompany,Address1,City,State,PostalCode,ItemNumber,ItemDescription,OrderQuantity,UnitCost,Comments)VALUES('%s','%s','%s','%s','%s','%s','%s','%s','%s','%s','%s','%s','%s',’%s’,'%s')",

"INSERTINTOInvCtrl(VendorID,ItemNumber,ItemDescription,OrderQuantity,UnitCost)VALUES('%s','%s','%s','%s','%s')",


Proposal


"INSERTINTOPurShip(VendorID,PoNumber,Carrier,ServiceLevel,Warehouse,PrimaryTrackingid)VALUES('%s','%s','%s',‘%s’,'%s','%s')",

mysql_real_escape_string($POrderNode->getElementsByTagName('POHeader')->item(0)->nodeValue),mysql_real_escape_string($POrderNode->getElementsByTagName('PODetails')->item(0)->nodeValue));}?>


Proposal


AppendixB.GLOCOControlDocuments&DataDescriptionsEachserviceprovidedbyGLOCOhasacorrespondingcontroldocumenttosettheparametersforthebusiness

process.Thesedocumentshavebeendesignedtohandlecommonbusinessprocessesfororderfulfillmentand

inventorycontrolandarecreatedandstoredasXMLdocuments.ThefollowingtablesdefinetheCustomerOrder

FulfillmentandInventoryReplenishmentdocumentsstructureanddatadescriptionstandards.

CustomerOrderFulfillmentDocuments

Customer Order Fulfillment Control Documents

GLOCOCustomerOrderControlDocuments

CustomerOrderFulfillmentEvents(INBOUNDToGLOCO)EventMessage Description

ShipmentOrder ThismessageistransmittedbythecustomertoGLOCOtonotifythataShipmentOrderhasbeenwrittentotheblackboard.

ShipmentOrderChange ThismessageistransmittedbythecustomertoGLOCOtonotifythataShipmentOrderChangehasbeenwrittentotheblackboard.

ShipmentOrderCancel ThismessageistransmittedbythecustomertoGLOCOtonotifythataShipmentOrderCancelhasbeenwrittentotheblackboard.

CustomerOrderFulfillmentEvents(OUTBOUNDFromGLOCO)EventMessage Description

ShipmentOrderResult TheShipmentorderresultidentifiestheproductsandquantitiesshipped,orderpackagingaswellascarriertrackinginformation.

ShipmentOrderCancelResult Theshipmentordercancelresultindicatesthatanorderhasbeencancelled,andwillnotbeprocessedbyGLOCO

*SeeAppendixCfordetailedXMLexamplesofcustomerorderfulfillmentdocuments.

GLOCO Data Description Standards TheDataDescriptionsfor“CustomerOrdersdocumentsareXMLattributesthatarerequiredtobuildXMLShipment

OrdersandInventoryReplenishmentDocuments.SeetheexamplebelowandforGLOCOattributenaming

standardsandadescriptionofthexmlattributes.

CustomerOrderFulfillmentDataDescriptionStandards Attribute Description

CustomerID CustomercodeassignedbyGLOCOBusinessUnit CustomerbusinessunitidentifierassignedbyGLOCOOrderNumber CustomerassignedordernumberOrderType SO=SalesOrderOrderDate CustomerOrderDate(dateandtimetheorderwasplaced)


Proposal


ShipDate GLOCOshipmentdateComments FreeformcommentsCarrier CarriercodeServiceLevel Carrierservicelevelcode–Ground,AirShipTo TheshippingaddressfortheorderBillTo ThebillingaddressfortheorderDeclaredValue ValueofshipmentforinsurancepurposesItemNumber GLOCOItemNumberQuantityOrdered CustomerquantityonorderQuantityToShip Customerquantitytoshipfortheorder

InventoryReplenishmentDataDesignandControlDocumentsInventory Replenishment Data Design TheInventoryReplenishmentXMLdocumentstoresthenecessaryinformationneededbytheGLOCOERPsystemto

processinventoryreplenishment.BelowisatabledepictingthedatafieldsnecessarytocreateanXMLformatted

InventoryReplenishmentdocument.SeeAppendixBforGLOCOattributenamingstandardsandAppendixCfora

descriptionofthexmlattributes.

PoNumber GLOCOassignedpurchaseordernumberBusinessUnit CustomerbusinessunitidentifierassignedbyGLOCOOrderDate DateandtimetheorderoriginatedCarrier Requestedcarriercodefordelivery(UPS,FedEx)ServiceLevel Carrierservicelevelcode(Air,Ground)Warehouse WarehousewherethispurchaseorderistobereceivedClientId GLOCOClientIDforthevendorPoNumber GLOCOassignedpurchaseordernumberBusinessUnit CustomerbusinessunitidentifierassignedbyGLOCO

ThediagrambelowshowstheInventoryReplenishmentDataFlowforapurchaseordermadebyaGLOCO

employee.Thedataflowbeginswithanemployee(afterauthentication)beingpresentedwiththeinventory

replenishmentDataEntryScreenfromtheOrderFulfillmentWebServeroverasecureconnection.Theemployee

needstoenterintheinformationfromtheprevioustable(BusinessUnit,OrderDateetc.)ontheinventory

replenishmentwebformandthencompletetheorder.Uponordercompletion,theVendorSupplyChainPortal

storestheVendorPurchaseOrderinXMLformatonAmazon’sSimpleStorageServicebyusingtheProxyServer

Amazoncredentials.Amazon’sMessagingServicethensendsanEventMessagetothevendor’sEventMessage

QueueonAmazonthatnotifiesthevendorthatanInventoryReplenishmentDocumenthasbeencreatedbyGLOCO

andisreadytoprocess.Dependingonthevendor,theInventoryReplenishmentDocumentiseitherdownloaded

automaticallyusingsimilarPHPscripts(SeeAppendixAforscriptdetails),ormanuallydownloadedandprocessed

bytheVendorERPsystem.Whentheorderisfulfilledbythevendor,GLOCO’sERPsystemisnotifiedbyAmazon’s

messagingservicesanditwillretrievethepurchaseOrdershippedresults.FinallyacontinuouslyrunningPHP

scriptrunningontheKivaMHSdownloadsthereplenishmentorderandimmediatelybeginsitsprocessing.

Reporting DuringtheRequiredFunctionalityphaseoftheprojectitwasidentifiedthattheKivaMHSsystemmustsupportPDF

andXMLreportformatstointegratewithGLOCOERPreportingsystems.TheAPI’softheKivaMHSandERP


Proposal


systemsallowforthetransportoftheXMLdatabetweeneachofthesystems,thusenablingGLOCOtocontinueto

useitsERPreportingsystems.

Figure11:GLOCOInventoryReplenishmentDataFlow


Proposal


GLOCOERPDatabaseEntities:ThefollowingGLOCOERPdatabaseentitiesareupdatedduringtheabovedataflow:

PurchaseOrderDatabase InventoryControlDatabase ShippingDatabase

Inventory Replenishment Control Documents TheDataDescriptionsforCustomerOrdersdocumentsareXMLattributesthatarerequiredtobuildXMLShipment

OrdersandInventoryReplenishmentDocuments.SeetheexamplebelowandforGLOCOattributenaming

standardsandadescriptionofthexmlattributes.

GLOCOInventoryReplenishmentControlDocuments

InventoryReplenishmentEvents(OutboundFromGLOCO)EventMessage Description

PurchaseOrder ThismessageistransmittedbyGLOCOtothevendorandidentifiesproductstobereceivedfromthevendor.

PurchaseOrderChange ThismessageistransmittedbyGLOCOtonotifythevendorthataShipmentOrderChangehasbeenwrittentotheblackboard.

PurchaseOrderStart ThepurchaseorderstartreceiptisanindicationthatthepurchaseorderisonthereceivingdockreadytobescannedintotheKivaMHS.

PurchaseOrderCancel ThismessageistransmittedbyGLOCOtothevendortoindicatethatapurchaseorderhasbeencancelledandshouldnolongerbereceivedagainst.

PurchaseOrderClose ThismessageistransmittedbyGLOCOtothevendortoindicatethatapurchaseorderhasbeenclosed.

InventoryReplenishmentEvents(INBOUNDToGLOCO)


Proposal


EventMessage DescriptionShipmentOrderResult(FromVendor) TheShipmentorderresultidentifiestheproductsand

quantitiesshipped,orderpackagingaswellascarriertrackinginformation.

ShipmentOrderCancelResult(FromVendor) Theshipmentordercancelresultindicatesthatanorderhasbeencancelled,andwillnotbeprocessedbythevendor.

*SeeAppendixCfordetailedXMLexamplesofinventoryreplenishmentdocuments.

Inventory Replenishment Data Description Standards

InventoryReplenishmentDataDescriptionStandards Attribute Description

PoNumber GLOCOassignedpurchaseordernumberBusinessUnit CustomerbusinessunitidentifierassignedbyGLOCOOrderDate DateandtimetheorderoriginatedCarrier Requestedcarriercodefordelivery(UPS,FedEx)ServiceLevel Carrierservicelevelcode(Air,Ground)Warehouse WarehousewherethispurchaseorderistobereceivedClientId GLOCOClientIDforthevendorPrimaryTrackingId ReferencecodefordeliverytrackingID GLOCOVendorIDCompany VendorCompanyNameAddress1 Vendoraddressline1City VendorCityState VendorStatePostalCode VendorpostalcodeItemNumber DetailassigneditemnumberItemDescription DetailassigneditemdescriptionOrderQuantity QuantityorderedofitemnumberUnitCost CostofitemnumberComments Freeformcommentfield


Proposal


AppendixC.GLOCOXMLDocumentTypeSamples

GLOCOXMLDocumentTypesEvent Message Document Sample <?xmlversion="1.0"encoding="utf-8"?>

<EventMessagexmlns="http://schemas.gloco.com/V2/EventMessage.xsd"ClientId="G12345"

BusinessUnit="Medical"DocumentName="987654.xml"DocumentType="CustomerOrder"

MessageId="EF1CE966-38A2-428b-BA67-EFF23AF22F57"Warehouse="CORP1"MessageDate="2013-05-

01T12:00:00Z">

</EventMessage>

Shipment Order Document Sample <?xmlversion="1.0"encoding="utf-8"?><ShipOrderDocumentxmlns="http://schemas.quietlogistics.com/V2/ShipmentOrder.xsd">

<CustomerID>G12345</CustomerID><BusinessUnit>Medical</BusinessUnit><OrderHeaderOrderNumber="987654"OrderType="SO"OrderDate="2013-05-01T22:00:00Z"

ShipDate="2013-05-01T00:00:00Z"><Comments>CongratulationsOnGraduatingfromHarvardExtensionSchool</Comments><ShipModeCarrier="UPS"ServiceLevel="GROUND"/><ShipToCompany=""Contact="Dr.Smith"Address1="123MainSt"City="Anchorage"State="AK"PostalCode="11111"Country="US"Email="[email protected]"/><BillToCompany=""Contact="Dr.Smith"Address1="123MainSt"City="Anchorage"State="AK"PostalCode="11111"Country="US"Email="[email protected]"/><DeclaredValue>125.00</DeclaredValue>

</OrderHeader><OrderDetailsItemNumber="123456"Line="1"QuantityOrdered="1"QuantityToShip="1"UOM="EA"Price="50.00"/><OrderDetailsItemNumber="123457"Line="2"QuantityOrdered="2"QuantityToShip="1"UOM="EA"Price="95.50"/>

</ShipOrderDocument>

Shipment Order Result Document Sample <?xmlversion="1.0"encoding="utf-8"?>

<SOResultxmlns="http://schemas.gloco.com/V2/SOResultDocument.xsd"ClientID="G12345"

BusinessUnit=”Medical”CartonCount="1"DateShipped="2013-05-01T00:00:00Z"FreightCost="10.00"OrderNumber="987654"> <LineLine="1"Quantity="1"/><LineLine="2"Quantity="1"/><CartonCarrier="UPSGround"CartonId="S12345678901"CartonNumber="1"FreightCost="10.00"ServiceLevel="FIRST"TrackingId="40000000000"Weight="0.66"><ContentLine="1"Quantity="1"/> <ContentLine="2"Quantity="1"/></Carton>

</SOResult>


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Inventory Replenishment Purchase Order Document in XML Format <?xmlversion="1.0"encoding="utf-8"?><PurchaseOrderDocumentxmlns="http://schemas.gloco.com/V2/PurchaseOrder.xsd"ClientID="V5493GL"

BusinessUnit="Medical"><POHeader

Carrier="UPS"ServiceLevel="GROUND"PoNumber="G13H45"OrderDate="2009-09-01T00:00:00Z"PrimaryTrackingId="1ZABC1230326546459"Comments="comment"> <VendorID="AAA"Company="A123"Address1="123AStreet"City="WestEasterly"Contact="Fred"State="MA"Country="US"Email="[email protected]"PostalCode="12345"/>

</POHeader> <PODetailsLine="1"ItemNumber="12345"ItemDescription="something"OrderQuantity="1"UnitCost="10.00"> </PODetails> <PODetailsLine="2"ItemNumber="12346"ItemDescription="else"OrderQuantity="2"UnitCost="5.00"/>

</PurchaseOrderDocument>