Short essay about users of the Priority Software

Dick’s Sporting Goods is an American sporting goods retailer offering an extensive assortment of high-quality sporting equipment, apparel, footwear and accessories through a blend of brick and mortar in-store services, unique specialty shop-in-shops as having a strong online presence. The Company operates approximately 650 stores in 47 states and employs approximately 30,000 employees. Revenues for 2018 were $7.2 billion.

The Company desire to leveraging all of its sales channels to deliver a consistent, seamless and high-quality customer experience across its store, on the web and via mobile technology. This experience is designed to differentiate the Company from its online-only competitors. As a result, the Company continually seeks to upgrade website functionality, expand assortment and content and invest in new capabilities to maximize device shift and leverage its store network. This will provide customers with an enhanced shopping experience that will enable the Company’s customers to buy and receive products where, when and how they want. The Company is also transitioning its eCommerce platform to one that will allow it to fully control the customer experience and maximize profitability, while continuing store growth

Current Systems Environment

The company operates using separate software packages for finance and accounting, inventory, and its sales order/supply chain management processes. Currently, much of the Company’s forecasting and sales analysis is done in a custom software package built internally. It is cumbersome and requires much manual manipulation of data once uploaded into the system. On occasion due to the timing of uploads from the financial system, errors have been noted in the reports as forecasts are not run on the most current information. Reports are not visually appealing and contain large amounts of information that is not well organized.

The Company has experienced issues with manual input errors and an inability to coordinate the work of various departments. Under the current competitive market conditions, the Company needs a software system that will help it operate efficiently and productively. Our proposal recommends the implementation of Microsoft Dynamics GP 2018 Enterprise Resource Planning (ERP) package. It will integrate all available software resources to minimize labor costs and maximize profits. ERP provides an integrated information system for the company, enabling them to share business data and resources. Microsoft Dynamics GP is a complete enterprise resource planning (ERP) solution for small to medium sized business. Dynamic GP will help the Company gain control over its primary business drivers – from financials and human resource management to operations. We are recommending the Dynamics GP solution as the Dynamics Partners will assist with the planning, implementation, customization and support services aimed at optimizing the solution for the Dick’s Sporting Goods specific business.

Business Process Flows:

Sporting Goods currently has 3 separate software applications handling its 3 main business processes. currently outsources its payroll to a 3rd party vendor – Paychex. Our proposal recommends we bring this process in house as the last phase of the implementation.

Financial Management Supply Chain Management

· General Ledger Inventory Control

· Fixed Asset Management PO Generator

· Payables Management Purchase Order Processing/Receiving

· Receivables Management Extend Materials

· Revenue/Expense Deferrals

· Cash Flow Management Human Resource Management (Final Phase)

· Bank Reconciliation

· Budgeting

· Benefits Management

· Human Resources

· PTO Manager

· Payroll

Purchase Order Process:

Dick’s existing Accounting Package is Peachtree and the Forecasting process is a custom built in-house software. The main processes can be summarized with the document flow chart presented below:

(Document Flowchart)

After the customer places an order, they are able to view a digital copy of their sales invoice in the order history tab of their account. Copies of the same invoice (in document format) reaches the sales, warehouse, and accounting departments. The sales department verifies whether the payment method can be charged successfully with the customer’s available (if any) funds. One copy of the sale is filed alphabetically. Next, the warehouse department views the same invoice in order to locate the items the customer purchased and updates inventory data within the in-house inventory software. They package the items and allow FedEx or UPS to take care of the shipping process, delivering the package to the customer in a timely manner. Finally, the accounting department examines the same invoice and records the transaction in Peachtree, and then files it numerically.

With the proposed system, transactions that will be easily integrated are fulfilling customer orders and tracking of inventory. The new AIS will eliminate much of the errors related to manual input, upload of non-current information and delays in obtaining current user friendly reports that Dick’s has been experiencing. The integration of the accounting and related functions will provide for quicker and more efficient business processes.

System Flowchart

Microsoft Dynamics GP aims to provide its core financial and distribution functionality to the users. Improvements to online inventory and online shipping will help to automate the sales ordering process. As a result, it would help to improve customer service, control fulfillment and invoicing, and minimize shipping and labor costs. The below system flow chart, demonstrates the process for purchase requisitions from the request to the payment process. This would be one of the processes transitioned to the GP ERP. The Company understands the value of documenting each of the processes prior to the system implementation. Dynamic Partners will review these processes and assist with customizing the components best suited to the Dick’s Sporting Goods environment.

Prior to consideration of an ERP package, customer information was tracked in a separate customer relationship management package. Upon implementation of the GP ERP package, processing sales and updating inventory and online shipments will be integrated with a single entry point for data. Initiation of a purchase order will being with purchase requisition that will be keyed into the system. The system will run the keyed data and check it against a master list of pre-approved customers and the master inventory database. The inventory item would get scanned upon receipt. The system would post the shipment to update the inventory goods. Upon receipt of the invoice, the system would match the purchase order, receiving order and invoice to proceed to payment processing when the 3 documents are matched.

Data Overview

Previously everything was entered manually. The employees would have to type in what items are being ordered, the item code, how many items, and etc. If an employee mistakenly typed a letter wrong then the customer would have gotten the wrong item, the inventory would also deduct the wrong item and things will get complicated. However, by using Dynamics G, inputting inventory and customer orders or information can be done more efficiently. The new types of data that will be required by the system are listed below:

A. Barcodes:

As DICK’S Sporting Goods expands it product offerings, it becomes harder to track the item codes and amount for each product in the in-house built system. The Warehouse Management System (WMS) of Dynamics GP provides the Barcoding Solution for users to customize barcodes to fit the Company’s needs. In terms of inventory control, receiving and shipping processes, barcoding can help to avoid manual errors when it comes to the key data.

Inventory items will have barcode information to make it easier and quicker to scan items into the database rather than manually. It becomes more efficient to manage warehouse inventory as with each purchase or sale, the inventory will be automatically updated. This lets employees know when to restock inventory along with totals sales for the month.

The barcodes will include information about goods name, category, manufacturer, and pricing. DICK’S Sporting Goods’ employees could use the barcode scanner to input the data and then use the Barcoding Solution to convert this information into a digital barcode. Dynamics GP will help the scanners to interface the system to be able to read the barcodes on inventory. The format of the barcode that will be set up will follow this template: 123 XXXXXYYYYYZZ.

· 123 identifies that the product is part of our inventory.

· XXXXX is a five-digit reference number to the name of the product.

· YYYYY is a five-digit reference number to the category of the product.

· ZZ is a two-digit reference number to the price of the product.

· 00 is a two-digit reference number to the check digit.

B. Employee Working Hours

As DICK’S Sporting Goods expanding, there will be more employees working within various departments. It will be hard to track everyone’s working time. Recoding the timecard manually may lead to mistakes and result in extra work for managers. Under the new system, all employees will scan their finger in the fingerprint scanner whenever they start work and end work. The data obtained from scanner would be directly transferred to Dynamics GP system to keep tracking each worker’s working hours. The system will then calculate their monthly salary using the rate that each person has, including the overtime and compensations. Employee absences can disrupt the flow of work. By using Moniroo, a time and expense system integrated with Dynamics GP, it helps simplify the process by calculating accruals and manage employee absences through pre-configured vacation plan details. This approach makes the whole process easy-tracking.

C. Tracking Orders:

Dynamics GP provides a comprehensive inventory tracking and management system.

DICK’S Sporting Goods will use the system to help monitor and keep track of the new data types. The new data types that will be required by the system include shipping rates and package tracking and shipment. First is being able to monitor package shipping/tracking along with determining current shipping rates. By using the Inventory system, employees can monitor the status of the item from when it leaves the warehouse until it reaches the customer’s door. Because DICK’S Sporting Goods mainly uses FedEx and UPS in the meantime, we will integrate with shipping modules, such as the FedEx or UPS manager to have access to real time shipping rates and order tracking. There will also be an interface through the barcodes that can be tracked by both DICK’S Sporting Goods and the customer so that both parties can have the information about the order. This could be done by setting up an interface where tracking can be linked to the customer portal so that customers can track their own orders. The inventory management system will also be able to keep track of customer sales orders along with any purchases from vendors. Also, if the company decides to integrate to other online storefronts such as ebay or Amazon, Dynamic GP makes it easy to directly import data from these third party stores.

Controls Requirements

· Financial Transactions (segregation of duties)

One of the benefits of implementing the MicroSoft GP ERP is the account level security which is part of the Financial Management module. This feature enhances security features and account views by allowing users to enter, edit, and view information from a reduced account set, based on the access granted for General Ledger accounts on a per-user basis. Thus, role based security can be implemented and segregation of duties enforced by the system based on role assignments and the respective access granted with the role. Segregation of duties provides for a strong control structure and does not allow for overlapping duties that can result in fraudulent transactions and misappropriation of assets.

The ERP package will also integrate all transactions with a central database, thus single entry of data and will eliminate the need to download financial information and then upload into a separate system. This will provide greater accuracy and better reporting for decision making. The package also includes an analytical accounting tool which allows for analyzing financial data by designated criteria we would identify for better reporting and flexibility. This will allow for tracking of financial data by different dimensions – such as region or product line.

· Inventory Protection (Physical protection of assets)

The purchase order processing and receiving module will also help management commitments and build lasting vendor relationships with automated purchasing and approval processes, flexible extended pricing and blanket purchase orders. It enables the Company to receive partial shipments with discounts, landed costs and prepayments to better manage your purchasing and receiving process. The package has embedded tolerance handling allowing the receipt of items within a threshold percent of the purchase order for more flexible receive and better purchasing management. This tolerance threshold will allow a purchase order to be processed for payment if a partial receipt arrives as long as within the tolerance thresholds providing a control over the receipts and authorization of payments

· Human Resources and Payroll

We are recommending the implementation of the Human Resources module of the package and a staged implementation of the Payroll module after completion of the initial implementation to allow for a plan for bringing the Payroll process back in house. With 30,000 employees and constant expansion of the workforce, it is critical we have a package that can efficiently and productively assist with the process of attracting and retaining top talent. This package offers customizable hiring processes, schedule pay rates and performance evaluation tools to assist with the management and employee evaluation process after onboarding is complete. We currently use an outside company to help with our annual benefits enrollment process. This package will allow us to automate the process, reduce paperwork and manual entry by moving the process online – including the annual enrollment, status changes and other updates to the employee profile. Implementing the role based security will also allow for only authorized employees to view sensitive personal data – addressing the risk of protecting HIPPA data and preventing users from creating fraudulent employees as the employee creation is in the human resources module and payment of employees will be in the payroll module (currently outsourced to Paychex )

· System Controls for Access and Security

Another benefit of implementing the Microsoft GP ERP will be the configurable password and access security. This password security will address the risk of unauthorized users gaining access to the Company’s system. The password parameters available are robust and in keeping with best practices. We would recommend that Dicks implement a policy of:

Minimum length 7 characters. Lockout Threshold 5 failed attempts. Lockout duration 30 minutes. Passwords must be changed every 90 days. New password must be different than last 10 passwords. Complexity to be enforced – 1 upper case character, 1 lower case character, 1 number, 1 special character.

Users

Dynamics GP is the application of information technology to achieve the integrated management of enterprise resources on the basis of advanced enterprise management ideas. Under the premise of optimal allocation of enterprise resources, it integrates all operating activities within the enterprise to achieve the goal of an efficient operation. The major users of Dynamics GP in the DICK’S Sporting Goods would be mainly concentrated on the following departments:

· Sales Department

Sales department could use Microsoft Dynamic GP to precisely record each sales order, which could be used to track the entire business process. The sales dept could take advantage of the sales management module to accomplish the main work of order generation and the subsequent delivery of the orders. Sales staff can enter sales orders through the sales management system after inquiring the product quotation and communicating with customers. The integrated use of sales management and inventory management enables salesmen to search the current inventory of the company in real time. According to the customers’ requirements, the sales department takes the customer purchase plan and checks the inventory at any time. They can query the status of sales orders and track them through the sales management system. To be in the state of no delivery of orders for urgent delivery, the completed sales orders can be manually or automatically closed. Dynamic GP can improve the efficiency and level of sales management and make enterprise sales more standardized and efficient.

· Inventory Department:

The managers or the staffs of the inventory department are able to use Microsoft Dynamics GP to input, modify and delete any of the relevant inventory document or data. The online inventory quantity shall be updated so that users can check the most real-time inventory at any time. And there is inventory closing or opening operations, to avoid the careless changes, affect the inventory account information. The inventory management module can help the inventory managers comprehensively control the daily warehouse management such as the warehousing, transferring, adjusting, stocktaking, loaning of inventory items. Also, it has the seamless connection with the application systems of other dept, such as purchasing, production management, business, and finance, etc., keep abreast of the latest inventory information at any time, which could effectively avoid overstocking or shortage of inventory items, and ensure the smooth progress of production.

· Financial Departments:

The financial system of Dynamics GP is a set of financial software developed according to accounting principles and combined with the practical operation process planning experience of professional accounting managers. The finance dept can know the cash collection and credit sales quota of daily operation and sales in real time and clear the current account in time. The financial dept needs to collect and input data in accordance with the correct method, and timely integrate accounting vouchers to ensure the authenticity and real-time accounting data. The financial dept could obtain various financial reports which could be used to have in-depth analysis and make decisions. By saving a lot of simple work in traditional financial work, such as collecting and making bills, the financial staff can spare more time to process and analyze data, which could reduce unnecessary duplication of work and improve efficiency.

· Human Resource:

The advanced payroll model contributes to helping the human resource dept more efficiently record, track, manage and analyze the mechanisms of the employee’s working process of DICK’S Sporting Goods. The payroll module includes personnel recruitment, personnel data and personnel changes. Additionally, Dynamics GP provides flexible demands for staff shift, flexible setting for overtime work and setting of late and early leave to satisfy the working requirements for the managers. Also, the managers could browse the organizational structure composition of any time, including the dept and personal information. The HR managers could use the payroll module to calculate the salary of each employee according to different salary items and attendance rules. Job, food and other categories of allowances can be set by the managers, or whether the tax is deducted, paid on behalf of others, fixed amount or variable amount. For different overtime hours and holidays, different pay rates can be set by the managers to get the payment for overtime.

Conclusion

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