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TurtleSpice ERP! (Week 1)
TurtleSpice ERP! (Week 1)
July 9 2008
, our new series on software selection!
We’ll follow one company’s software selection process, from beginning to end—with your help.
In fact, the fate of the company’s software selection project is in your hands.
Cast your vote at the bottom of the post
, and next week I’ll move the scenario forward based on the winning answer.
Here’s the scenario
In just six years, Westchester, California (US)-based
has grown from a single-kitchen weekend project to a multi-million dollar manufacturer.
The secret of its success:
, an innovative condiment that can be used as a dressing for everything from fish, poultry, and red meat, to pasta and pizza, to iceberg lettuce and carrot sticks.
TurtleSpice is now a major supplier of sauce packets to airlines, and during busy periods ships upwards of 5,000 orders a day in various configurations, including single-serving packets, bulk containers, and jars.
Today is a Friday like any other at TurtleSpice.
Except that today,
Mike Chelonia, TurtleSpice’s comptroller
, is struggling to wrap his head around the latest action item to hit his desk.
He knew it was coming, but that doesn’t make it any easier.
Mike’s CFO has mandated him to select an ERP system for TurtleSpice in order to overcome its current lack of manufacturing and reporting abilities, to enhance the overall operational efficiency of the company, and to better handle compliance issues.
In fact, compliance is becoming nearly unmanageable thanks to an expanding product line (although current product expansion is a debacle, Mike thinks, with its proposed new product—
—being possibly one of the most disgusting beverages ever conceived).
Unfortunately, Mike has no idea where to start with the task at hand.
As far as he can tell, he’s been landed with this action item for no better reason than that he’s “Mr. Efficiency,” and that he’s a good “numbers guy.”
But right now he’s not feeling so efficient. He’s heard horror stories about ERP selections, and he’s not thrilled with the prospect of being
Currently, TurtleSpice’s traceability system is paper-based, with data being handwritten onto batch sheets. TurtleSpice is also using Excel for financials, and an in-house-developed order entry system that’s showing its age.
TurtleSpice faces a number of compliance issues, including FDA regulations, facility inspections (HACCP compliance), labeling language requirements for Canada and Mexico, multi-currency billing and invoice capabilities, and occupational health and safety requirements.
Since 2004, TurtleSpice has outsourced its distribution to a third-party logistics (3PL) provider for logistics and freight, having made the change when its delivery volume started to exceed the capacity of its single delivery truck.
Useful TurtleSpice stats:
manufacturing, warehouse, and corporate HQ facilities all located on one site
$50 million in revenues for FY 2007
120 employees, 85 system users
budget for licenses, implementation, and maintenance: $500,000-$750,000
seeking training, support, and yearly maintenance
implementation time frame: 6-12 months
Back-of-napkin business requirements (in no particular order):
automate financial processes
tracking of compliance issues
manage employee records and payroll
track maintenance and repair for equipment and fixed assets
warehouse and inventory management
improve e-commerce capabilities
better tracking of customer service and support
record and track sales orders
manage recipes for new products
Voting has ended for this episode.
Find out what happened next!
This scenario has been created for informational purposes only. Any resemblance to actual food and beverage companies and products is purely coincidental. Data and outcomes backed up by our expert analyst and project delivery teams, scenario created by our lunatic writing team.
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