Moore Medical Corporation

Luis J Rodriguez MIS 427

Moore Medical Corporation WCA

2/26/2008

 

Moore Medical Corporation WCA

In late 2000, Moore Medical Corporation established a performance measurement system called "the perfect order." The perfect order called for having all items in stock. In addition the perfect order was shipped on time, shipped from the closet distribution center (DC), and arrived at the customer's location on time and damage free. Moore Medical tracked this performance and found it met the "perfect percentage" 68% of the time. The remaining 32% consisted of; 17% split shipments; 10% back orders; and 5% late shipments. Moore believed that a proactive demand planning system would be key to improving the perfect percentage by making sure the right product is available at the right time from the right location. In 2001, Moore Medical Corporation implemented a $7 million dollar enterprise resource planning (ERP) system from J.D. Edwards. The new system would automate and facilitate many internal processes such as finance and logistics and work to improve the perfect order percentages.

Additional modules should be added for the Marketing area, because the current ERP system does not provide a solution to manage marketing efforts such as trade show materials, catalogs, or promotional flyers. In addition, the ERP's Advance Pricing module is not conducive to Moore Medical's method of pricing. Additional modifications to existing modules can be applied to the order entry system to minimize the difficulty of use for Moore Medical's customer service representatives (CSRs). During the order entry, CSRs have to use many function keys and drill down to customer or item information in accessing information. This has caused the order entry process to be longer than previously under the previous legacy system. Other modifications to recommend are in the process of setting up new accounts, which is lengthy and adds time to customer calls. In addition, there is no process which cross validates among existing accounts to eliminate duplicate accounts in the customer database.

Justification for investing in CRM is that Moore Medical feels it has problems with servicing its customers. Moore Medical has several business and technical problems, which are interrelated between demand planning and customer service. Some of Moore Medical customer service problems are directly related to problems in demand planning. Moore Medical order problems (32% of all orders) are because of product availability. The products are available at only one of the DC or are out of stock. The product availability problem leads to high costs and late order fulfillment. Moore Medical feels that a CRM system can be leveraged in utilizing proper management of inventory and suppliers.

Moore Medical must define the flow of material from supplier