Download - Request for Proposal(RFP)
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ABC Textiles
Limited
REQUEST FOR PROPOSALREQUEST FOR PROPOSAL
ERP System Acquisition andImplementation
Proposal Release Date: 01 Feb 2013Proposal Due Date: 15 July 2013
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TABLE OF CONTENTS
1 INTRODUCTION ......................................................................................4
2 STATEMENT OF PURPOSE ...................................................................5
3 EXISTING ENVIRONMENT .....................................................................6
3.1 BACKGROUND.................. .................... .................... ..................... .................... ............. ...... ...... ..... 6
4 SUPPLIER REQUIREMENTS & INSTRUCTIONS....................................8
4.1 RFP QUESTIONS................... .................... ..................... .................... .................... .............. ...... ..... 84.2 RESPONSE FORMAT, DEADLINE, AND DELIVERY..................................................................................8
5 TERMS AND CONDITIONS .....................................................................9
5.1 INFORMATION ACCESS...................................................................................................................95.2 GENERAL CONDITIONS..................................................................................................................... 9
5.3 BID
EVALUATION
AND
NEGOTIATION
.................................................................................................95.4 FORMAL PRESENTATION................. ..................... .................... .................... .................... .............. . 105.5 BID EFFECTIVENESS......................................................................................................................105.6 ACCEPTANCEOR REJECTION.................. .................... .................... ..................... ........... ...... ...... .... 105.7 CONTRACT PROVISIONS................................................................................................................. 105.8 RESPONSIBILITIESAS INDEPENDENT CONTRACTOR............................................................................105.9 STAFFING .................................................................................................................................... 115.10 INSURANCE................................................................................................................................. 115.11 EQUIPMENT.................. .................... .................... .................... .................... .................. ..... ...... .. 115.12 INTENTTOBID .................... ..................... .................... .................... .................... ........ ...... ...... ... 125.13 CONTRACT ITEM COSTS.................. .................... ..................... .................... .................. ...... ...... . 12
6 SCOPE OF THE RFP.............................................................................13
6.1 PRODUCT SOFTWARE PRICING........................................................................................................136.2 PROJECT MANAGEMENT................... .................... .................... ..................... .................... ........... .. 136.3 MENTORINGTECHNICALSTAFF........................................................................................................146.4 FUNCTIONALEXPERTISE.................................................................................................................146.5 OPTIONAL SERVICES.................... .................... ..................... .................... .................... ............. .... 14
7 PROCESS SUMMARY:..........................................................................14
8 BUSINESS FLOW:..................................................................................15
9 SAP - PROCESS MAPPING:
1. THIS ENTIRE FLOW GENERALLY IS KEPT SIMPLE.2. YOU WILL HAVE SIMPLE BOM WITH RAW COTTON ANDPROCESSED COTTON IN THE OUTPUT.3. THE MATERIAL CODIFICATION FOR THE OUTPUT WILL BE KEPTSIMPLE SO THAT IT CAN BE IDENTIFIED EASILY4.WE CAN WORK WITH A DISCRETE ENVIRONMENT ANDPRODUCTION ORDERS CAN BE CREATED ON A MONTHLY BASIS.. 15
9.1 KEY CHALLENGES................... .................... .................... ..................... .................... ...... ...... ...... ... 15
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9.2 ELIMINATEOFFLINEDATASYNCHRONIZATION...................................................................................16
10 SUPPLIER QUESTIONNAIRE .............................................................16
SUPPLIER BACKGROUND.................. ..................... .................... .................... ................... ...... ...... ..... .. 1610.2 CUSTOMER BASEAND REFERENCES..............................................................................................1710.3 PRICING STRUCTURE...................................................................................................................17
10.4 IMPLEMENTATION SERVICES.........................................................................................................1810.5 TECHNOLOGY................... .................... .................... ..................... .................... ............... ...... ..... 1910.6 INVOICING................... .................... .................... .................... ..................... ........... ...... ...... ..... ... 1910.7 DETAILED SYSTEM REQUIREMENTS...............................................................................................19
11 NOTE TO SUPPLIER ...........................................................................20
12 APPENDICES.......................................................................................21
12.1 APPENDIX A - COMPANYAND TRANSACTIONAL DETAIL................................................................2112.2 APPENDIX B - REQUIRED PROPOSAL OUTLINE.............................................................................2112.3 APPENDIX C - ABC DETAILED SYSTEM REQUIREMENTS..............................................................23
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ABC Textile LimitedIndia Request for Proposal (RFP)
1 INTRODUCTION
ABC Textiles limited, with its headquarters in Goa, India, is a leading textile manufacturingcompany .Hereinafter, ABC textiles will be referred to as ABC as a matter of convenience
and reporting.
Based upon our current growth agenda, it has become essential that all of our businessinformation systems be integrated into a single technology platform using a common databaseand common development environment. The first step in this process is for us to establish acommon set of processes throughout our organization. This strategy is particularly focused onimplementing a corporate-wide Enterprise Resource Planning package or ERP softwaresystem, which will form (define) the core technology, database, and development environmentto be utilized by the organization.
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2 STATEMENT OF PURPOSE
The purpose of this document is to solicit proposals for supplying an ERP software solution toABC textile limited. This solution is intended to form the basis for all future systems andprograms within ABC for the next 05 years. All existing systems within ABC will be replaced by
the selected ERP system.
The current system(s) in use by ABC textile limited are failing to meet the business needs ofthe organization in the following areas:
1. The systems consist of a series of non-interconnected applications in which the sameinformation is often keyed-in manually into multiple systems.
2. Benefit from regular support package updates, especially those in legal, tax, humanresources, payroll areas.
3. Information generated by the system for the same items (e.g., sales of gaculators inthe first quarter) is available from different parts of the system and, therefore,
essentially never agrees with that generated from some other portion of the system.
4. There is no accurate inventory information available to ABCs customer service,shipping, or manufacturing departments.
5. ABC is currently unable to meet customer and industry requirements such as EDI,barcode compliance labeling, and RFID management.
Our primary objectives in implementing a new ERP system are as follows:
1. Define a single technology platform, including infrastructure as well as database anddevelopment, which will define the basis for supporting the business objectives of theorganization
2. Improve our ability to service our customers by leveraging technology to achieve acompetitive advantage
3. Improve operational efficiencies throughout the organization
4. Reduce overall operational costs
Based upon a preliminary review, we have selected your organization to receive thisformal Request for Proposal (RFP). We are asking that you submit a formal proposal,using the forms provided, which addresses the costs for the procurement andimplementation of software from your organization. We have specifically defined certainstructural items within this RFP. These include items such as hardware configuration,
operating system environment, and telecommunications infrastructure. This has beendone solely to provide an apples to apples cost comparison between the varioussuppliers. Although the actual operating environment may ultimately differ significantlybased upon the specific recommendations of the selected supplier, we ask that youquote the listed configuration explicitly.
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3 EXISTING ENVIRONMENT
3.1 Background
3.1.1 Current ABC Locations and Employee Count
ABC Textiles Ltd is a subsidiary of Grasim Industries Ltd having strong presence inmanufacturing of Polyester Viscose fabric catering the market under brands ABCGRAVIERA as also exporting its fabric to various reputed brands.
The company has its manufacturing facility in Panjim, Goa and its Marketing & SalesOffice at New Delhi. The company is spread across the geography through a largenetwork of dealers, agents and retail outlets.
The company utilizes strong manufacturing facilities comprising of Fibre Dying, YarnSpinning, Weaving, Processing and Folding with state-of-the-art machines, processesand professional environment.
The company also has strong presence in International market catering to the fabricneed of International brands.
The company has strong Design and Development team which conceptualizes anddevelops designs as per fashion standards and market needs.
The company also has its product range of RMG Readymade Garments with exclusivedesign and qualities.
3.1.2 Current Computing Environment
The current legacy systems are a combination of numerous in-house developed RPG
applications running on a series of IBM AS/400 platforms. These applications have beendeveloped over the course of the past 20 years, and service all aspects of the organizationfrom accounting to manufacturing and distribution. There are approximately 100 concurrentusers of the legacy systems.
ABC uses Microsoft Outlook as its corporate-wide e-mail application. Microsoft Office suite isthe corporate standard desktop application. The majority of desktops are running variousflavors of the Windows operating system (95/95/ME/NT/2000/XP).
The desired corporate-wide business system will be targeted for the following infrastructureand platform environment:
Sun SOLARIS X.X Operating System Oracle Data Base engine Network Switched Ethernet TCP/IP Frame Relay MS Browser
We are looking for an ERP software system that uses a GUI interface. The ideal system willsupport both a thin and a thick client environment, as well as allow for internet based access.
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The system also needs to support various RF and bar coding technologies within themanufacturing and distribution facilities.
In terms of an integrated business system, it is estimated our company-wide profile ofsystem users would consist of 100 concurrent users (i.e., 100 individuals who would besimultaneously accessing the ERP application). This would consist of approximately 75
full-time (named) users as well as 50 casual users (no more than 25 of who would beutilizing the system at any one time).
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4 SUPPLIER REQUIREMENTS & INSTRUCTIONS
Information is to be provided for all sections within this document as defined within eachsection. Please provide your responses using the spreadsheet only. You may includeadditional supplemental information as part of your proposal. However, it should be clearly
separate from your spreadsheet responses.
4.1 RFP Questions
Our objective is to insure that we provide you with all of the information you need in order foryou to provide the most complete response to this RFP as possible. As such, we welcome anyand all questions which you might have. Questions or requests for clarification must beemailed to: [email protected] by 01 July 2013 by 4:00 PM EDT. A copy of allquestions and their associated responses will be e-mailed to all participants as they arereceived and addressed by ABC.
4.2 Response Format, Deadline, and Delivery
4.2.1 DeliveryResponses to the attached spreadsheet should be e-mailed to the address listed below. If youare submitting any supplemental information, please submit a total of three (3) hard copies andone electronic copy of this material to the address listed below. All RFP responses (both thespreadsheet and any other supplemental information) must be submitted no later than 15 July2013 at 4:00 PM EDT.
Please submit to:
ABC textilesAttn: Atmaram Borkar Road,
Panjim, Goa
E-mail address: [email protected]
4.2.2 Presentation
It is requested that any supplemental information accompanying your proposal be bound in a3-ring binder. Number pages consecutively within a section, using section and pagenumbering as listed in Appendix B. In addition, the spreadsheet RFPResponse.xls must befilled-out and form the basis for your response.
4.2.3 Important Due Dates
Date to be Received Items to be Returned
4:00 PM EDT, 01 July 2013 Supplier Questions and Clarification Requests Due
4:00 PM EDT, 15 July 2013 Completed Response to RFP Due
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5 TERMS AND CONDITIONS
Suppliers are required to adhere to the below terms and conditions.
5.1 Information Access
The information provided within this, or any other document supplied by ABC, is to beconsidered strictly confidential and shall be considered proprietary to ABC. This information isnot to be shared with individuals outside of your organization unless ABC has specificallyprovided either written or verbal consent allowing said individuals access to this information.
Should your company decide not to respond to this RFP, please return all materials and anyduplicates to your contact at ABC textiles.
5.2 General Conditions
5.2.1 Contract Duration
For purposes of this RFP, prices quoted for software and services to be provided by your
organization, or contracted through your organization, are to be valid for a minimum period six(6) months.
5.2.2 Expenses
Any costs incurred by you in preparing and providing a response to this RFP are solely theresponsibility of your organization. In addition, should your organization be chosen as one ofthe organizations asked to provide an onsite demonstration of your software, the costsassociated with that process will similarly be the sole responsibility of your organization.
5.2.3 Response Preparation
You response should clearly state the ability of your organization to satisfy the requirements
defined within this document. In addition, you should provide your most aggressive pricingrelated to the various components of this RFP. It is the intent of ABC to use this pricing bothas a key element in the ultimate decision regarding the selection of a supplier, as well as a partof the determination of the budget for the project. In each case in which a specificconfiguration (of hardware, software, network, etc.) is provided, you should quote a price forthe defined configuration only. While you may recommend, and we may ultimately end-upwith, a configuration substantially different than what is defined within this document, we wantto achieve a specific apples to apples comparison of pricing. This will help us to insure thatevery organization is judged against exactly the same set of criteria.
5.3 Bid Evaluation and Negotiation
5.3.1 Evaluation Criteria
This request for proposal is designed to provide ABC textile with the ability to make asdetermination of which potential supplier will best satisfy the requirements of ABC as possible.Each supplier will be evaluated against exactly the same set of criteria, and will be provided ascore for each category in the evaluation. The categories associated with the evaluation arelisted below.5.3.2 SUPPLIER RANKING
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Category Criteria Score
1. Software Product
Financials 5
Customer References 4
Ease of Use 3
Compatibility 3Fitness for Use 15
Section Total 30
2. Implementation Services
Implementation Plan & Methodology 10
Data Conversion 7
Documentation 5
Training 8
Section Total 30
3. Pricing 40
GRAND TOTAL 100
5.4 Formal Presentation
Based upon an evaluation of all of the proposals received, ABC expects to invite one or twosuppliers to make a formal presentation regarding their proposal to a team of ABCrepresentatives. These meetings will be arranged in advance by ABC.
5.5 Bid Effectiveness
Your formal response to this RFP shall constitute your official bid regarding the definedopportunity presented within this document. The formal bid submitted by supplier must, in noway, be contingent upon any review or approval by supplier.
5.6 Acceptance or Rejection
ABC, at its sole discretion, reserves the right to either accept or reject any and all proposals.The existence of this request for proposal shall not, in any way, obligate ABC to take anyaction regarding any response submitted by a supplier to this request.
5.7 Contract Provisions
In the event that a proposed solution is accepted by ABC, it is the intent of ABC to incorporate
the spreadsheet RFPResponse.xls, as well as any other supplemental material provided aspart of this RFP response, in their entirety, into the final contract with the supplier.
5.8 Responsibilities as Independent Contractor
Any personnel provided by supplier shall be considered to be personnel or agents of thesupplier. Under no circumstances will said personnel be considered to be agents or personnelof ABC. However, ABC reserves the right to demand the removal and potential replacement ofany one or group of individuals provided by supplier to work on the project.
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If your organization intends to utilize a third party organization to perform any of the tasksassociated with any aspect of the proposal, this intent must be disclosed as part of theproposal. For example, if it is your intent to have an organization other than your own performimplementation and project management services as part of the proposed engagement, youmust indicate this as part of the proposal. In addition, responsibility for any items or activities
provided by any subcontracting or third party entity must be assumed by your organization. Forpurposes of this engagement, ABC intends to contract exclusively with your organization forthe support functions required to insure a successful implementation. This means that yourorganization will be the sole contact concerning contractual matters, invoicing and associatedpayments.
5.9 Staffing
As part of this engagement, it is assumed that your organization will assign project personnelthat possess the necessary skills to make significant contributions to the completion of theproject. Which personnel are assigned to the project shall be completely at the discretion ofyour organization. However, ABC reserves the right to require the supplier to remove and
possibly replace personnel who are not meeting expectations or who do not interact in apositive manner with other project personnel.
5.10 Insurance
In order to provide services to ABC, your organization must maintain the following insurance:
Workers Compensation and Employers Liability Insurance in accordance with the applicablelaws of the state of Ohio or the state in which the work is to be performed, or in accordancewith the applicable laws of the state in which the contractor is obligated to pay compensationto employees engaged in the performance of the work. The policy limit under the EmployersLiability Insurance section shall not be less than one million dollars ($1,000,000.00) for anyone accident.
Commercial General Liability Insurance covering the work, the performance of the work andeverything incidental thereto, with limits of not less than five million dollars ($5,000,000.00) peroccurrence combined single limit, or in whatever higher amounts as may be required by ABC.
This policy shall be endorsed to cover:
Contractual liability assumed by the contractor under the indemnity agreement set forth below.If any of the work is sub-contracted, independent contractors liability providing coverage inconnection with such portion of the work, which may be sub-contracted, broad form propertydamage liability, and personal injury liability.
Automobile Liability and Property Damage Insurance, including coverage on owned, hired, andnon-owned automobiles and other vehicles, if used in connection with the performance of thework, with bodily injury and property damage limits of not less than five million dollars($5,000,000.00) per occurrence combined single limit.
5.11 Equipment
As part of this proposal, the supplier will be required to submit a quote for a defined hardware,operating system, and infrastructure environment. The various configurations are defined in
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the spreadsheet RFPResponse.xls which accompanies this document. We understand thatthis may not be the operating environment which is ultimately chosen. However, in order toprovide a direct comparison between the various supplier proposals, it is important that thespecified configurations be quoted. Unless specifically stated, you can choose any supplieryou want for the equipment, so long as the quoted equipment meets the stated specifications.
ABC reserves the right to purchase any and all required hardware, operating systems, andinfrastructure hardware and services from a supplier of its choice. Awarding of the businessfor the ERP system to a given supplier should not be construed as an award for procurementof the hardware and associated services from that supplier.
5.12 Intent to bid
Unless required by the action of a court of law, supplier agrees that all material which has andwill be disclosed regarding ABC, its customers, products, finances, marketing programs andthe like are the confidential and proprietary information of ABC. As such, supplier agrees tomaintain the confidentiality of this information.
In the event that your organization chooses not to respond to this RFP, all material providedwithin this RFP should be immediately returned to the listed ABC contact individual.
5.13 Contract Item Costs
5.13.1 General
We regard this process as one in which ABC will choose a partner to assist it in implementinga new business information system. As such, ABC will look to the chosen supplier to activelyand aggressively pursue those practices which will serve to minimize the cost to ABC bothduring implementation and in the future operation of its business.
5.13.2 Price Protection
The rates for software and services provided by supplier in response to this RFP must be validfor a period of six (6) months. Furthermore, once a proposal has been accepted, all definedrates for services to be provided under any resulting agreement must be guaranteed at theproposed rate for a period of two (2) years from the date of project initiation.
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6 SCOPE OF THE RFP
This RFP is a solicitation for information regarding the purchase, implementation, andmaintenance of an ERP software system. As such, our objectives are as follows:
Identify the software product that has the best out of the box fit to our definedbusiness requirements for a new business information system accessed through aquantitative features and function evaluation process.
Identify the organization which we feel will represent the best partner for ourorganization in implementing a new business information system by conductingquantitative interviews with current customers.
Utilize the core business processes inherent within the chosen software to provide thebasis for changing our existing internal business processes.
Purchase and implement new software, including re-engineering of the necessarybusiness processes to be in line with the processes of the new system.
The purpose of this section is to provide some additional insight into the information contentwhich should be included in your response to the RFP. This information should be in additionto the response to the specific items detailed in Section 7 of this document.
As you prepare your proposal, it is also important for you to understand that it is our objectiveto have the option of operating independently of the software supplier at some point in thefuture, should we desire to do so. This would include the ability to add new sub-systems ontothe existing application as well as (potentially) customizing the application itself.
6.1 Product Software Pricing
This section of your response should define the detail of how you price your product. It should
include the price to purchase the software as well as any costs associated with installation ofthe software and training of both users and technical personnel in the use, operation, andmaintenance of the proposed product(s). Costing should also be provided for an unlimiteduser license of the software with no restrictions on number of installations of the applicationwithin our organization.
Also included should be any costs associated with other products (integration tools,development tools, operating system software, etc.) that you believe are required in order toimplement and efficiently operate the new business information system.
The warranty period associated with the software should also be defined within this section.Make sure to specify not only the duration of the warranty period, but also the relationshipbetween the warranty period and the onset of a maintenance and support agreement.
If the software is sold with source code, please indicate any incremental cost associated withthis feature. In addition, if source code is not available, you should define whether an escrowprocess for the software and supporting documentation is available as an integral part of thelicensing agreement, and the costs associated with this service.
6.2 Project Management
The activities to be provided by the supplier project manager shall include the following:
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Development of an overall implementation strategy
Development of technical standards for modifications, security, conversion, and systemadministration for all modules
Development of a comprehensive implementation plan, including allocation of neededresources
Project timeline, staging and scheduling
Task management and tracking
Project meetings and documentation
6.3 Mentoring technical staff
As part of the implementation process, we would like our technical personnel to becomefamiliar with the application in the following areas:
Application programming, including but not limited to development tools, utilities, queries,interfaces etc.
System administration especially in the initial stages of testing and implementation
Oracle Database Administration, during the initial stages of implementation andsubsequent performance tuning later in the implementation
Workflow and GUI customization support
Release management support
6.4 Functional expertise
During the course of the implementation, we will need to be able to understand how thevarious aspects of your system can best be utilized by our organization. In order tocontinue with process improvement exercises after the completion of the implementation,our personnel must develop knowledge in these areas:
Assistance and guidance with development of the business rules and applying them tothe software
Fit and gap analysis and systems analysis
Assistance in the development of data interfaces to/from external entities
Assistance in the conversion of existing data
6.5 Optional Services
In addition to the standard items listed above, we expect to need assistance in a varietyof other areas. These may include, but will not necessarily be limited to, the following:
Where needed and justified, customized design and programming for supportedmodifications
Any other implementation support required for the on time, on budget, and successfulcompletion of the project
7 PROCESS SUMMARY:
Spinning -> Dyeing ->Weaving->Garment.
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8 BUSINESS FLOW:
The first process in the formation Cotton fabric formation is the preparation of the rawmaterial. Cotton is the raw material for the cotton fabrics. We knew that the cotton iscultivated in various parts of the world and the flower is collected from the plan by thefarmers and bundled in raw form and send to the ginning units.
There are different varieties of the cotton and few of the important parameters that isimportant to segregate the cotton is based on the Staple length, Moisture, Maturity leveletc. Based on this these are segregated and processed in the gins and packed separately.
This processing is called ginning. In this process the main activity is to remove theimpurities from the cotton without affecting their basic properties. Lot of dust, Husk etcwhich is there in the cotton needs to be removed and then bundled in BALES.
9 SAP - PROCESS MAPPING:
1. This entire flow generally is kept simple.2. You will have simple BOM with raw cotton and processed cotton in the Output.3. The material codification for the output will be kept simple so that it can be identifiedeasily4.We can work with a discrete environment and Production orders can be created on a
monthly basis.
9.1 Key Challenges
Standardize non uniform business processes.
Ensure better visibility into operations.
Improve data availability and reliability.
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Integrate online manufacturing processes with head-office operations as seamlessly as
possible.
Expedite the reconciliation and closing processes.
9.2 Eliminate offline data synchronization
10 SUPPLIER QUESTIONNAIRE
In order to provide a direct comparison between the various suppliers, a standardized RFPResponse form has been provided along with this RFP (RFPResponse.xls). Please completethis form in detail. This form will be the only means whereby data provided by yourorganization can be compared to that of other organizations. In addition, it is the only placefrom which information specific to your organization will be taken from for purposes ofevaluating the various potential suppliers. It is important, therefore, that this spreadsheet becompleted properly and that the appropriate amount of time be committed to this task.
Supplier Background
In this section, we are seeking information regarding the background of your organization inorder to access the ability of your organization to bring the project to a successful conclusion.
10.1.1 Financials/General Information
Supplier should provide the following information regarding your organization:
a. Provide company name and headquarters location. Provide length of time in the softwareproduct, software services, and consulting business.
b. Provide the names, telephone, and fax numbers of persons authorized by your companyto conduct negotiations with ABC.
c. Disclose fully all your relationships with any and all subcontractors and other related
companies.d. If you are a current supplier to ABC, please include current volumes and billable amounts
over the past two years.
e. Indicate whether your company is currently being investigated by any governmentalagency.
f. Indicate whether your company is currently in litigation with any organization regardingfulfillment of contractual obligations, performance, or copyright and patent infringement.
g. Conflict of Interest Certification: certify that your firm has no real or potential conflicts ofinterest which would prevent the supplier from acting in the best interests of ABC.
h. If you are a public company, provide audited financial statements for the past 2 years.Include annual reports and 10-K filings if available. If you are the subsidiary of a large
corporation, include the holding company annual report. If you are a privately heldcompany and will not disclose any financial information, provide the informationindicated using either true dollars or percentage information. If you are providing dataon a percentage basis, make sure that you scale everything to total sales. That is,assume total sales represents 100% and scale all sales and cost items as a percentageof this number.
i. Organization chart and senior management profiles.
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j. Relative size of this project in comparison to current customer base (revenue, processing,etc.).
k. Any additional information the supplier deems useful for ABCs evaluation of the suppliersqualifications.
10.2 Customer Base and ReferencesProvide a list of three references that have contracted for the same or similar services.
ABC will contact these references only at the end of the software selection process aspart of the due diligence phase of supplier selection. In addition, ABC will only contactthese references after the supplier has specifically been asked to arrange for suchcontact to occur.
Include for each reference:
Company name
Contact name
Company Address
Contact telephone number and FAX number
Contact e-mail address
The identified customers should be willing to answer questions concerning yourcompany's performance and services.
10.3 Pricing Structure
All pricing information should reflect a five (5) year cost. Show costs for each of the five yearsfor each cost element, as well as a total five year cost of ownership.
10.3.1 Product Software Pricing
In this section, please define the pricing structure for the associated software costs, whichincludes license fees or other pricing methods, and other required features such asmaintenance, upgrades, consultation and support fees, and post-implementation training costsand services. Identify a breakdown of the pricing elements over the life of the contract.Provide a cost for the stated number of concurrent users as well as a cost for an unlimited usersite license for the software. Costs for both options must be included in the proposal. Inaddition, include a guaranteed cost per user for any incremental user licenses which must bepurchased in the future as a result of business growth. If there is any discount available onadditional licenses as a result of purchasing these additional licenses in blocks of users (e.g.,ten (10) user increments), this should also be stated.
10.3.2 Implementation & Consulting Costs
Since ABC intends to utilize the selected software supplier heavily throughout theimplementation process, costs associated with the implementation are expected to represent asignificant fraction of the total cost. For the categories listed on the attached spreadsheet(RFPResponse.xls), please indicate the total estimate for the number of hours you expect theimplementation to consume, the hourly cost for an individual in each category, and theestimated total cost. Please make sure that your cost is both reasonable and verifiable. It isthe intent of ABC, as part of its due diligence process, to talk to existing customers anddetermine how close the actual implementation costs came to the original estimates. It is
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important, therefore, that your numbers be realistic given the size and transaction volume ofour organization.
10.3.3 Hardware and Equipment Pricing
You are asked to define pricing for two hardware and infrastructure configurations. First, we
ask that you provide your pricing for the hardware and infrastructure defined in the attachedspreadsheet (RFP Response.xls). Make sure to quote the configuration exactly as specified.In the second scenario, we ask that you provide pricing for your recommended hardware andinfrastructure configuration.
10.4 Implementation Services
10.4.1 Methodology
In this section, we ask that you provide information regarding the implementation methodologywhich your organization utilized. This should be framed in terms of the various stagesassociated with the implementation (e.g., software installation, training, process definition,etc.). In addition, you should identify the tools which your organization utilizes for maintaining
the project schedule and required resources.
10.4.2 Technology Transfer
As part of the implementation process, it is the hope of ABC that its existing informationsystems personnel can gain significant expertise in both the technology used by theapplication as well as the inner workings of the application itself. Within this section, pleaseidentify the steps involved in getting our IT personnel familiar with all aspects of yourapplication. This should include any recommendations which your organization might haveregarding training programs.
10.4.3 Documentation
In this section, you should define the type of documentation that is available within yoursystem. Specifically, is there on-line documentation at both the screen and field level? Is therea data dictionary available for the system? To what extent can ABC modify the help text? Aredata flow and process flow diagrams available?
10.4.4 Data Conversion
This section should define the approach you plan to take relative to the conversion of existingABC data to the new system.
This should include:
Database analysis and data mapping
Conversion program writing
Data integrity checking and audit methodology
Post-conversion clean up
Methodologies used to keep data in sync between the new and legacy systems duringimplementation
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10.4.5 Project Management
ABC will assign an internal project manager who will be responsible for the overall projectmanagement of this process. The ABC designated individual, in concert with the selectedsupplier Project Manager(s) will provide the oversight to insure the successful implementationof the system. This will include the necessary scheduling of ABC resources to insure their
availability at the appropriate time throughout the duration of the project.
10.4.6 ABC Resources
Within this section, we ask that you identify the recommended resources (both technical andfunctional user areas) that ABC should consider for the successful completion of this project.
This should include:
By job title, the number and percentage of dedication full-time employees (FTEs) for allABC employees recommended for this project.
The minimum and optimum recommended resources
A comprehensive organizational chart and anticipated team reporting structure reflectingboth supplier and ABC staffing
Identify the physical resources needed and any other requirements of ABC
10.5 Technology
Define the technology platform(s) used by the proposed solution.
This should include:
The application development environment
The database(s) supported
Database server operating system(s) supported Client or end-user operating system(s) supported
Network environment(s) supported
10.6 Invoicing
Describe your proposed fee schedule and terms. Indicate payment terms in regard to anyavailable percentage discount for early payment. ABCs standard payment term is net 45days. Make sure to identify any differences between payment terms and conditions associatedwith software purchases compared to implementation services, hardware. Within this section,also define any acceptance period during which ABC has the opportunity to exercise thesoftware and receive a full refund on software payments made in the event that the software
does not perform as specified during the sales process.
10.7 Detailed System Requirements
The supplier is requested to complete the detailed system requirements as a part of the RFPresponse (See Appendix C). The questionnaire further conveys ABCs interests andrequirements for system functionality and provides an indication of the software productscurrent capabilities and future state.
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11 NOTE TO SUPPLIER
It is expected that all proposals submitted would be in accordance with what has been clearlyoutlined in the RFP. Once a bid proposal has been submitted it is final. The time for questionswill be from the date you receive the RFP to the date stipulated at the beginning of this
request.
Once you have completed your proposal, your signature or that of a duly authorized individualof your company must be affixed, in order for us to acknowledge the fact that you have readthe RFP thoroughly and have completed the proposal within the stipulated guidelines.
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12 APPENDICES
12.1 APPENDIX A - Company and Transactional Detail
The following information describes the ABC textiles and the number and type transactions itroutinely processes:
Company Name: ABC textiles
Address: Atmaram Borkar Road, Panjim
Primary SIC: Textile manufacturing
Facility Locations: Panjim, Goa,India
Company Wide Transactions per Month:
Average Customer Orders 6,000
Average Order Line Items 30,000Max Customer Orders 12,000Max Customer Line Items 45,000
Average Purchase Orders 1,000Average PO Line Items 3,000Max Purchase Orders 1,500Max PO Line Items 4,000
Average Shipments 6,600Average Shipment Line Items 35,000Max Shipments 14,000
Max Shipment Line Items 50,000
Average Pick Transactions 39,000Max Pick Transactions 58,000
Active Customers 10,000Active Vendors 350Active Products 30,000
Average Sales Order Lead Time 4 DaysMinimum Sales Order Lead Time 1 Day
Average Inventory Turns / Year 12
12.2 APPENDIX B - Required Proposal Outline
The following table summarizes the format requirement for your proposal. In addition,attached to this document you should receive an Excel based spreadsheet (RFP
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Response.xls) which contains a series of forms for you to complete. There is one form (tab)associated with each section of the proposal. Please complete the information on thisspreadsheet and return it in electronic form along with the electronic copy of your proposal.
Section Section Title Section Content
0 Executive Summary Executive Summary
1 Supplier Background & Company Financials Response to Section 7.1
2 Customer Base & References Response to Section 7.2
3 Qualifications of Personnel Response to Section 7.3
4 Pricing Structure Response to Section 7.4
5 Implementation Services Response to Section 7.5
6 Technology Response to Section 7.6
7 Invoicing Response to Section 7.7
8 Detailed System Requirements Response to Appendix B
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12.3 APPENDIX C - ABC Detailed System Requirements
Complete the detailed system requirements by indicating a value for each question based onthe following:
3 - Currently available2 - Available through a partner1 - Available in the next release (six to nine month window)0 - No planned availability
Use attached spreadsheet entitled Supplier Requirements.
END OF DOCUMENT