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Page 1: Implementing  E-commerce Solutions

Implementing E-commerce Solutions

Presented toUMSL e-Commerce Seminar

March 13 - 15, 2000

Page 2: Implementing  E-commerce Solutions

Process Flow Initial project Scope change Managing risk Planning & design Emerging opportunities

Page 3: Implementing  E-commerce Solutions

Initial Project

Start up Internet pharmacy A great vision – No money

Not just selling drugs Selling medical alliance with the

consumer Source an accounting application

Oracle compatible Can be installed in 3 weeks

Page 4: Implementing  E-commerce Solutions

Scope Changes Accounting Distribution Fulfillment Warehouse design Flow racks Inventory control EDI Process procedures

Interim controller Hardware sales Network installation Project

management Interfaces Requirements

definition Bar coding

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Managing Risk Requirements definition process Use experts Complete project plan Client expectations

Can the software do this? Keep the client informed Follow up

Page 6: Implementing  E-commerce Solutions

Design Accuracy Review requirements

Gap Analysis Map processes

Flow validation Review with the experts

Team consensus Present to the client

Buy off

Page 7: Implementing  E-commerce Solutions

Web OrderCreated

Customerexists in Flux

No

Add newcustomer

Flux

New Order YesHas customerdata changed

No

Call storedprocedure

customer balance

YesCall stored

procedure ARMaster

PlatinumDatabase

Update customerdata

Return flag customerupdated

Request customer ARbalanceReturn customer AR

balance

All items andquantities are

available

Call storedprocedure verify

and commitinventory

Verify inventory quantity isavailable

Return ItemAvailability

YesReply to Flux

to processthe order

Process order to SIBaker

SI Baker processcustomer order

Order Processed

All items areavailable on

the shelfYes Ship Order

Send to Flux ordershipped

Reply toFlux

No

Customeradded

UpdateComplete

Two step processfirst this will be

manual exceptionafter September

will makeautomatic

No

Demand placed inplatinum, line itemadded to the PO

Que.

Create PO byzone

PO isMcKesson

unique items

Yes

No

Page2 "A"

Page2 "B"

1SP

RXINVCOMMIT

2SP

RXINVSHIP

3SP

RXINVOICINGCUST/TPA AR

4SP

PAYONACOUNT

2

Error messagesent to Flux for

any SP which fails

Order approved toprocess

Flux

2A

11A

Add newcustomerPlatinum

SP ARMASTER

SP ARMASTER

SP RXGETARBAL

Exception Filecreated/updated

Re-run ordersafter

shipmentsare receivedand put away

All items andquantities are

available

No

Yes

This process of verifiyig andcommitting inventory is

called from the conductor inNextRx prior to processing

the order is SI Baker

SP RXINVSTAT

SPRXTRANSHISTORY

3

Process Flow Diagram

Page 8: Implementing  E-commerce Solutions

Emerging Technologies Internet

Another store front Virtual inventory Market opportunities

Same old distribution New concept – same day delivery

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Traditional Logistics Commerce Site LogisticsShipment type Bulk Parcel

Customer Strategic UnknownDemand style Push Pull

Inventory/order flow Unidirectional Bi-directionalAverage order amount More than $1,000 Less than $100

Destinations Concentrated Highly dispersedDemand Stable, consistent Highly seasonal, fragmented

Accountability One link Through the entire supply chain

Source: Forrester Research, Inc.

Logistics is ChangingLogistics is Changing

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Emerging Opportunities Distribution network has not

changed FedEx, UPS, RPS, USPS

Revolutionary concept Too expensive? Dynamic partnerships How do we do it?

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CustomerInformation Systems

W eb ServerOrder Entry Database

(Oracle)

Fulfillment Center(Oracle)

ArcLogistics RouteNT Server

ArcView GISTracking Analyst

HoustonDelivery Vehicle

w/GPS

Customer Service Reps(10 people)

Routing Manager

Automated

GeoCoding Periodic Routing M anifest

Generation

Customer qualifies forsame day delivery viazip

Customer fills-in orderinformation

Au

tom

ate

dA

uto

mate

d

Export Routesas Shape Files

Packagingof Tote

M anifest

Pre

scriptions

GPS Receiver

DFW

Austin Airport

HOU

W ide Area W ireless

Customer Home

CSR monitorsdelivery location/status

Provides ordertracking informationto customer

Austin, TXDelivery Vehicle

w/ GPS

Dallas-Fort W orthDelivery Vehicle

w/GPS

Customer Home

Customer Home

W ide Area W ireless

Customer Home

Customer HomeCustomer HomeCustomer Home

In itia l Implementation

R x.com D elivery M odel

The Boldface and Red Font Areasare desired ESRI customization byend of Q1

Implementation Dates: Austin, TX - Jan. 17, 2000 Dallas, TX - by end of Q1 Houston, TX - by end of Q1

Delivery Order Volume: 50 - 250 per day per city

Solution proposed by Jim Skirvin ofBaird, Kurtz & Dobson for Rx.com(314) 231-5544 ext. 246jskirvin@ bkd.com

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Conclusion “BKD is not just an accounting firm, but a business

partner. We first sought BKD’s expertise in selecting a robust financial package supporting our e-commerce enterprise. BKD provided much more and was instrumental in our success in meeting our targeted start up dates. BKD provided us with the financial application, distribution package, EDI with our vendors, bar code scanning of 25,000 SKUs, project management in the development of interfaces across multiple applications and daily business consultants. And when we decided to pilot test a revolutionary logistics distribution model, we did not hesitate to call BKD.”

Jef Fowler, Senior VP & CFO, RX.COM


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