Management Information System Decision Support

Student Name, Student Name, Student Name, and Student Name

MGT 311

Dr. Bhargavi Bandi

25 April 2016

21 April 2016

Table of Contents

Executive Summary 2 Company Profile 2 Company Problems 3 Project Scope 4 Enterprise Applications 5 Option 1: TradeGecko 6 Services 6 Implementation Timeline 9 Budget 9 Risks 10 Pros 11 Cons 11 Option 2: ShipStation 12 Services 12 Features 12 Implementation Timeline 13 Budget 13 Risks 14 Pros 14 Cons 15 Final Verdict 16 Works Cited 17

Executive Summary

Company Profile

Sevenly was founded in 2011 by Dale Partridge and Aaron Chavez. The company operates as an online retailer based out of Fullerton, California and is known as one of the world’s leading “social good” companies. This label is indicative of its weekly cause activation platform, in which a charity of the week is selected and has a spotlight for seven days. During those seven days, Sevenly donates $7 for each product sold to that charity. At the end of the week, the charity will receive a check. Each year, Sevenly selects 52 charities and designs custom t-shirts, mugs, and other accessories and apparel for each charity. Each charity receives one week in the spotlight, but its products will continue to be sold for the rest of the year. If a purchase is made in the name of a charity that is not currently in the spotlight, Sevenly donates 7% of the sales from that product to that charity. Due to this unique business model, Sevenly is widely recognized as “an organic funding movement to raise capital and awareness for the world’s greatest causes.”[footnoteRef:1] [1: Sevenly. (2016). About Us. Retrieved April 20, 2016, from https://www.sevenly.org/pages/about-us]

Company Problems

While Sevenly is a wonderful company devoted to great causes and putting people first, its customers are not too happy at the moment. The company has been facing a massive supply chain issue that stems from its outdated model for an eCommerce business. The effects of this outdated model include problems with order fulfillment—namely, a huge backlog of orders—shipping delays, and poor communication with suppliers and customers. The problems and complaints got so bad that Sevenly’s Marketing and Creative Director hosted an AMA on the company blog.[footnoteRef:2] In the past year, the Better Business Bureau has recorded 233 complaints that have been lodged against the company. For a company as small as Sevenly, that is a huge number of dissatisfied customers. A breakdown of the complaints can be seen in the chart below. Of those 233 complaints, 158 of them are due to delivery issues—an overwhelming majority. Looking into the complaints more closely, however, our team discovered that the majority of the complaints stemmed from late delivery. Customers were mad—and rightfully so—that it took 3 months to ship them their products![footnoteRef:3] [2: Laubhan, L. (2016, March 18). Sevenly AMA [Web log post]. Retrieved April 20, 2016, from http://blog.sevenly.org/sevenly-ama] [3: Better Business Bureau. (2016). BBB Business Review for Sevenly Inc. Retrieved April 20, 2016, from http://www.bbb.org/sdoc/business-reviews/online-retailer/sevenly-inc-in-fullerton-ca-1011025]

Project Scope

Clearly, something must be done to rectify Sevenly’s supply chain problems. As of now, Sevenly does not have a viable supply chain management model. In fact, the company is currently trying to revamp its supply chain model. Our goal is to successfully transform Sevenly’s supply chain model into an efficient, cost-effective, and customer-approved set of business processes. We have identified two types of MIS software, examined the advantages and disadvantages of each, and chosen one solution as our final verdict for the company.

Enterprise Applications

The use of enterprise applications will help Sevenly fix many of its problems. There are a great variety of applications that can be used. An enterprise application is defined as:

“A large software system platform designed to operate in a…business or government…Enterprise Application software consists of a group of programs with shared business applications and organizational modeling utilities designed for unparalleled functionalities.”[footnoteRef:4] [4: Techopedia. What is an Enterprise Application? (n.d.). Retrieved April 20, 2016, from https://www.techopedia.com/definition/24804/enterprise-application-ea]

This kind of software is important in any information system that is computer-based. This is important because Sevenly was founded online and does not have a “brick and mortar” store. Similar applications improve productivity and can be very cost effective. Many small businesses do not have the funds to hire someone to be in charge of their inventory or just create reports. These apps let anyone in the business take charge of day-to-day functions. Because these apps are so easy to use, it allows any level employee to use them. This means that the company can save money because they don’t need to spend extra time training employees on specialized applications. The company will stop losing business due to processing errors because the applications are so streamlined and will help correct errors. Many enterprise applications are customizable to each business. This allows for each company to use what they need. Enterprise applications are useful for all businesses—exactly why they will help us improve Sevenly.

Option 1: TradeGecko

Services

TradeGecko is a cloud-based inventory management platform geared towards retailers wanting effortless e-commerce capabilities. Its software as a service (SaaS) fuses inventory management operations, critical business applications, and online commerce to build the central core of business operations. In the past, small and medium businesses have had the choice between using ledger books or spreadsheets to manage their inventory. Managing hundreds or thousands of products this way is inefficient and of course prone to human error. This complexity can be multiplied hundredfold when dealing with multiple warehouses, multiple selling channels, and if more than one person is involved. Rather than using ledgers or spreadsheets, companies such as Sevenly can improve their business processes by using software to manage their inventory and track shipping and order fulfillment.

This software company’s intuitive cloud-based software combines the most powerful inventory management suite with integrations that are essential to business—thus freeing management and employees to focus on what makes their business special. TradeGecko supports businesses that operate with multi-users, multi-currencies and tax requirements, and multi-warehouses, as well as CRM tools and integrations that are essential to business such as QuickBooks, Xero, Shopify, Bigcommerce and more. However, Sevenly is in need of several specific solutions: inventory management, order management and fulfillment, and multichannel sales.

The first major service that TradeGecko provides is inventory management. The software would allow Sevenly to improve inventory control through automatically updated stock levels whenever sales and purchases are made. This is done using inventory control features such as inventory lists, product details, product history, variants, barcode scanning, and incoming stock reports. Inventory lists will enable the user to view all of the company’s products as a complete list or as organized by custom filters. Every product on the list displays its stock on hand, committed stock, cost, moving average cost, reorder point, and stock history. The product details screen allows each product to be edited to include information—image, variants, SKU code, barcode, supplier code, color, size, weight, buy price, wholesale price, retail price, sellable option, taxable option, description, and notes. The product history screen reports each product’s stock history, making it easy to see a comprehensive restock log. Additionally, barcode scanning can be used to search products by barcode, immediately entering item information into sales and purchase orders. TradeGecko works with all standard barcode scanners, making it simple and cost-effective to implement.[footnoteRef:5] [5: TradeGecko. (2016). Inventory Control. Retrieved April 20, 2016, from https://www.tradegecko.com/product-tour/inventory-control-system]

TradeGecko also has order management software that makes it extremely easy to track and manage orders. For a company that is having issues with shipping and fulfillment—like Sevenly—this software would be a welcome relief. From order creation to fulfillment, TradeGecko’s software allows the company to track every step of the process. Use of this software enables companies to access all of their sales channels at once, access sales reports in real time, and create sales orders quickly, even outside of the office! The ease and efficiency which this software provides will go a long way towards successfully revamping Sevenly’s supply chain process.[footnoteRef:6] [6: TradeGecko. (2016). Order Management Software. Retrieved April 20, 2016, from https://www.tradegecko.com/product-tour/order-management-software]

In addition to order management, TradeGecko provides order fulfillment software that “allows you to delight your customers.”[footnoteRef:7] This software enables companies to fulfill orders faster, in greater volume, and at lower costs. This trifecta of order fulfillment is an absolute must for Sevenly, given its massive amount of complaints about order fulfillment. The features that this software package includes are professional shipping documents, partial fulfillment, and automated shipments.[footnoteRef:8] [7: TradeGecko. (2016). Order Fulfillment Software. Retrieved April 20, 2016, from https://www.tradegecko.com/product-tour/order-fulfillment-software] [8: TradeGecko. (2016). Order Fulfillment Software. Retrieved April 20, 2016, from https://www.tradegecko.com/product-tour/order-fulfillment-software]

Another benefit to using TradeGecko is the possibility of multichannel sales. TradeGecko will allow Sevenly to sell on the following sales channels: Shopify, WooCommerce, Amazon, and mobile sale apps. As a result, Sevenly would only need to update its products on TradeGecko for the information to get pushed automatically to all e-Commerce channels. Thus, Sevenly online shops will always reflect the latest product details, available products, and the exact stock on hand for each item—all without the company having to update each and every channel at a time.[footnoteRef:9] [9: TradeGecko. (2016). Multichannel Sales. Retrieved April 20, 2016, from https://www.tradegecko.com/product-tour/multichannel-sales]

Implementation Timeline

There are five phases to a software implementation project, and these phases can and probably will overlap. Based on a 10- to 12-week implementation, our team has come up with an approximate percentage of time a company spends on each.

· Project Preparation – 10%

· Business Blueprint – 9%

· Project Realization – 10%

· Final Preparation – 11%

· Go-Live and Support – 60%

Budget

TradeGecko offers four different types of price packages. The first package is the Basic Package, which is the cheapest with a starting rate of $79 per month. The package includes ecommerce integrations, accounting integrations, unlimited orders, currencies, support offering through email, and one warehouse tracker. The second plan is the Business Package, which has a price tag of $199 per month. At this price, businesses would receive everything in the Basic package as well as multiple warehouse tracker and B2B ordering. The third package is the Business Premium, priced at $359 per month. This package includes all the features of the aforementioned packages in addition to iPhone/iPod Sales App, Account Manager, API access, advanced warehousing, sales force integration, and order history. Finally, the Enterprise Package, priced at $799 a month, includes everything in the Business Premium package as well as multiple brands and 24/7 support offering. The Business package is the most popular of these four packages. TradeGecko also offers a unique 14 day trial for those who want to test the company and its product offerings out.[footnoteRef:10] [10: TradeGecko. (2016). Pricing. Retrieved April 20, 2016, from https://www.tradegecko.com/pricing]

Risks

· Support

· Advice and guidance for the customer on the products/applications in operation. It can include a helpdesk, website, bug fixes and patches. Depending on the criticality of the application to the business support can be provided to meet the business requirements.

· Maintenance

· Provides the customer with an upgrade path to the next version of software as it is made available by the software owner

Pros[footnoteRef:11] [11: Hansen, R. (2016). TradeGecko Small Business Review 2016. Retrieved April 20, 2016, from http://inventory-software-review.toptenreviews.com/tradegecko-review.html]

· Full inventory control including real-time stock level update, various sales channels, and product history visibility

· Multi-warehouse feature that allows syncing of multiple inventories in different warehouses

· Multi-channel sales feature that places all sales data in one location for easy access and monitoring

· Analytics that generate sales reports, among others, to identify best products, best performing sales channels, and top-grossing sales teams

· System integrations to allow for complete order fulfillment—purchased orders, shipping, and reorders

· More robust features besides inventory management—CRM, sales reports, and accounting

· Easy to use and very accessible

Cons[footnoteRef:12] [12: Hansen, R. (2016). TradeGecko Small Business Review 2016. Retrieved April 20, 2016, from http://inventory-software-review.toptenreviews.com/tradegecko-review.html]

· TradeGecko doesn’t offer an option for on premise deployment, which can be a problem for some companies

· TradeGecko offers only 14 days free trial instead of 30 days like other similar tools

· The customer support of this inventory and sales management solution does not offer phone support for Starter plan users

· Very slow support team response to problems that arise

Option 2: ShipStation

Services

ShipStation is a shipping software company that is designed to help online retailers and other eCommerce businesses consolidate their ability to process, fulfill, and ship orders from all the major eCommerce marketplaces and shopping cart platforms. It offers seamless integration that allows synchronizing with payment gateways, mail carriers, and more.[footnoteRef:13] Sevenly’s USPS postage account would be built into the ShipStation account at no cost with access to premium features. These premium features include all USPS mail classes, access to first class mail rates, flat rate and regional rate pricing, USPS scan form support, and hidden postage costs.[footnoteRef:14] This software is Cloud-based and automatically imports orders and order updates, exports shipment and tracking information, and chooses the best shipping option based on the criteria that the business specifies.[footnoteRef:15] [13: ShipStation Review 2016. (2016). Retrieved April 20, 2016, from http://www.merchantmaverick.com/reviews/shipstation-review/] [14: ECommerce Fulfillment & Shipping Services. (2016). Retrieved April 20, 2016, from http://www.shipstation.com/features/] [15: ECommerce Fulfillment & Shipping Services. (2016). Retrieved April 20, 2016, from http://www.shipstation.com/features/]

Features[footnoteRef:16] [16: ECommerce Fulfillment & Shipping Services. (2016). Retrieved April 20, 2016, from http://www.shipstation.com/features/]

· Integrations for all mail carrier accounts

· Integrations for all major online shopping carts

· API access

· Automatic order retrieval

· Customized confirmations and tracking information

· Batch-printing

· Shipping rates calculated in real time

· Returns processing with single click

Implementation Timeline

Because the software is on the Cloud, there is no need to download software. Thus, the installation time is less than a few minutes. The implementation time is approximately 2 to 5 days. After the implementation stage, businesses can expect to launch their new services in one day.[footnoteRef:17] [17: ECommerce Fulfillment & Shipping Services. (2016). Retrieved April 20, 2016, from http://www.shipstation.com/features/]

Budget

The most popular option is the Gold membership, which is $65 per month. This is considerably lower than what Sevenly is paying already, due to the fact that this software is Cloud-based so it is instantly cheaper. However, this only covers 3,000 shipments per month. On the other hand, it is very simple and easy to upgrade packages. The next package is the platinum membership at $95 per month, which includes 6,000 shipments per month. There is also an enterprise membership that allows unlimited shipments per month.[footnoteRef:18] [18: ECommerce Fulfillment & Shipping Services. (2016). Retrieved April 20, 2016, from http://www.shipstation.com/features/]

Risks

· Maintenance

· Application has been known to malfunction with large volume orders

· Security

· Cloud is not secure yet, so additional precautions would need to be taken

Pros[footnoteRef:19] [19: ECommerce Fulfillment & Shipping Services. (2016). Retrieved April 20, 2016, from http://www.shipstation.com/features/]

· No hardware or software required for installation

· Plenty of video tutorials to get company started

· Excellent customer service

· Create custom views

· Automation

· Virtually no work is needed to ship a product

· Website employs HTTPS encryption

· Makes shipping quicker and easier

Cons[footnoteRef:20] [20: ECommerce Fulfillment & Shipping Services. (2016). Retrieved April 20, 2016, from http://www.shipstation.com/features/]

· Cloud is not that secure yet

· The app could malfunction—resulting in a huge shipping delay

· Only deals with the shipping aspect of the business, nothing else

· Does not handle high order volume very well

· However, it does now have an option for an add on for orders bigger than 10,000

· Hard to figure out at first

· Complicated to set up the automation

Final Verdict

TradeGecko is the clear winner for Sevenly’s needs. Sevenly’s main problem was with its outdated eCommerce business model. It was negatively affecting order fulfillment and caused shipping delays and poor communication with suppliers and customers. ShipStation helps with the customer database and order management. TradeGecko does that and more! The main reason that this solution is so great for Sevenly is because it also has the capability to work with barcoding and RFID tags which provides so many more opportunities for Sevenly to grow.

ShipStation:

TradeGecko:

Works Cited

Better Business Bureau. (2016). BBB Business Review for Sevenly Inc. Retrieved April 20, 2016, from http://www.bbb.org/sdoc/business-reviews/online-retailer/sevenly-inc-in-fullerton-ca-1011025

Cloud Services. (n.d.). Retrieved April 19, 2016, from https://www.logility.com/solutions/cloud-services

ECommerce Fulfillment & Shipping Services. (2016). Retrieved April 20, 2016, from http://www.shipstation.com/features/

Hansen, R. (2016). TradeGecko Small Business Review 2016. Retrieved April 20, 2016, from http://inventory-software-review.toptenreviews.com/tradegecko-review.html

Laubhan, L. (2016, March 18). Sevenly AMA [Web log post]. Retrieved April 20, 2016, from http://blog.sevenly.org/sevenly-ama

Sevenly. (2016). About Us. Retrieved April 20, 2016, from https://www.sevenly.org/pages/about-us

ShipStation Review 2016. (2016). Retrieved April 20, 2016, from http://www.merchantmaverick.com/reviews/shipstation-review/