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REQUEST FOR PROPOSAL

June 2019
EQI LTD.

REQUEST FOR PROPOSAL

Table of Contents

I. BACKGROUND ................................................................................................................................................3

II. GUIDELINES FOR RESPONSE .....................................................................................................................5

III. FUNCTIONAL REQUIREMENTS ............................................................................................................8


A. GENERAL SYSTEM REQUIREMENTS ..................................................................................................................9
Language and Currency ..................................................................................................................................... 17
B. SALES FORECASTING ..................................................................................................................................... 20
C. ORDER MANAGEMENT ................................................................................................................................... 23
Customer RFQ and Estimating .......................................................................................................................... 23
Order Entry ........................................................................................................................................................ 26
Customer Comments and Notes ......................................................................................................................... 31
Pricing................................................................................................................................................................ 32
Shipping ............................................................................................................................................................. 34
Credit Memos, Rework Orders, and Returns ..................................................................................................... 37
D. SALES & INVENTORY ANALYSIS .................................................................................................................... 40
Sales KPI’s & Measures .................................................................................................................................... 40
Inventory ............................................................................................................................................................ 42
E. INVOICING, ACCOUNTS RECEIVABLE AND CREDIT MANAGEMENT ................................................................ 44
F. ITEM SETUP AND ENGINEERING ..................................................................................................................... 48
Bills of Material ................................................................................................................................................. 49
Work Centers ..................................................................................................................................................... 50
Routings and Work Instructions ......................................................................................................................... 51
Features and Options ......................................................................................................................................... 51
Engineering Change Management ..................................................................................................................... 52
Tooling ............................................................................................................................................................... 53
G. INVENTORY CONTROL AND CYCLE COUNTING .............................................................................................. 55
Cycle Counting ................................................................................................................................................... 59
H. WAREHOUSE MANAGEMENT AND FREIGHT MANAGEMENT ........................................................................... 61
Freight Management .......................................................................................................................................... 63
I. PURCHASING AND RECEIVING ........................................................................................................................ 65
Supplier PO Portal............................................................................................................................................. 73
Supplier RFQ & Portal ...................................................................................................................................... 73
J. MATERIAL REQUIREMENTS PLANNING .......................................................................................................... 76
K. PART COSTING AND COST MANAGEMENT ..................................................................................................... 78
L. GENERAL LEDGER, FINANCIAL REPORTING AND BUDGETING ....................................................................... 81
M. ACCOUNTS PAYABLE ..................................................................................................................................... 85
N. FIXED ASSETS ................................................................................................................................................ 91
IV. VENDOR PROFILE ................................................................................................................................... 93

V. APPLICATION PROFILE ............................................................................................................................. 96

VI. INSTALLED CUSTOMERS ...................................................................................................................... 98

VII. CONTRACTS .............................................................................................................................................. 99

VIII. COST SUMMARY .................................................................................................................................... 100


I. BACKGROUND

A. EQI Ltd. Profile

EQI Ltd. (EQI) provides globally sourced casting solutions. The parts sourced and services
used are tailored for each customer’s unique requirements. They assist or completely manage
all aspects of development and sourcing products, to meet each customer’s needs. The EQI
team manages the engineering, production requirements, supplier network optimization,
quality approvals, inventory planning, purchase orders to suppliers, in country quality
inspection, logistics, inventory, finishing, and customer delivery.

EQI offers a vendor managed inventory (VMI) model utilized by most customers. Though their
employees don’t directly produce or warehouse any products, customers see EQI as the
primary source for their castings, just as if they were a traditional manufacturer.

Castings are frequently large, filling a container with under 50 parts, though they also source
smaller products with 1,000+ products in a container.

Organization:
EQI is based in Norton Shores, Michigan and has a wholly owned operation in China,
comprising two legal entities. The supplier network reaches China, Vietnam, India, the United
Kingdom, and is expanding rapidly. Additional legal entities for India, Vietnam, France, and
other countries are in the strategic plan.

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B. Current System Overview

EQI currently utilizes Sage 300 to manage accounting, sales orders, purchasing, and inventory in
both the USA and China.

Sage is augmented with…


 Stonefield &/or Excel – for various financial and operational reporting
 Paychex – payroll (USA)
 True Commerce / Transaction Manager - EDI
 Supplier/WIP Portal – php web app (China)

SharePoint and Office 365 are leveraged for the following ERP related processes…
 Request for Quote (including a significant Nintex workflow)
 Quality APQP/PPAP
 Quality Alerts & Non-Conforming Log
 Inspection Report & Rework Log
 Deviation Approvals
 Customer Contract Reviews
 Foundry Quality Metrics
 Vendor Scorecards

In addition, SharePoint and Office 365 are used for a range of processes in Sales, Engineering,
Quality, Human Resource, as well as general document management.

Additional applications EQI leverages (not necessarily integrated with the ERP)…
 Solidworks – CAD Modeling
 EKKcapcast – Metal casting simulations
 Minitab – statistical analysis

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II. GUIDELINES FOR RESPONSE

This section briefly describes the basic information that must be included in your response to this
Request for Proposal (RFP). Please note it is the intent of EQI Ltd. to utilize the selected solution
at the two current and all future company locations. EQI also intends to use the system at any
future acquired subsidiaries, joint ventures, or affiliate companies.

Please base your pricing on 45 concurrent users across all locations.

Please return the following sections of the RFP or the information requested in that section (e.g.,
contracts):

Section III—Functional Requirements

Enclosed, for your convenience, is a Word and Excel formats of this document. Please use the
response ratings at the beginning of Section III. and return all pages in Section III. completed
with your response.

Section IV—Vendor Profile

Answer all questions to the best of your knowledge.

Section V—Package Profile

Answer all questions to the best of your knowledge.

Section VI—Installed Customers

Provide a list of companies who are similar to EQI and are currently using your system.

Section VII—Contracts

Include all contracts that would be necessary if your system were acquired. Please note the
following essential contract requirements. These are critical concepts that must be part of the
EQI agreement with the selected system provider.

1. Implementation Plan. Fixed dates for delivery, installation and other “milestone” activities.

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2. Acceptance Tests:

a. Right to perform tests following completion of defined implementation activities.

b. Tests based not only on specifications within standard vendor documentation, but also
specifications within other defined materials (e.g., RFP and proposal response, key
demonstration scripts, …).

c. Tests to include specific time periods for initial tests, error corrections and retests, with
express remedies if there is a failure to timely correct errors.

3. Pricing based on number of named or concurrent users, independent of the number of EQI
server configurations, database size, test instances or physical sites using the software.

4. Vendor assurances as to continuity of vendor project management personnel.

5. Assurance of continuing vendor support for the proposed solution (with limitations on
periodic support fee increases), if requested by EQI.

6. Proprietary rights indemnification.

Section VIII—Cost Summary

Complete with all known costs to the best of your knowledge at this point. Estimate costs
where appropriate and define any steps required to solidify estimates.

Please provide a copy of your statement of technical direction for your platform. EQI considers
this an essential element of your proposal.

In addition to the above, please include all the information discussed in the following paragraphs.

Application Programs

Provide a description of the packages and programs that would be supplied to satisfy the
application requirements described in the Functional Requirements section. Include a software
description for each application.

If third-party software is necessary for key functions or to meet Functional Requirements, please
describe in detail how these packages are integrated into the ERP solution. For those not already
integrated, please estimate the scope of work for the implementation.

Documentation & Training

Describe the extent of the user, administrative, and technical development documentation and
online training materials provided with the solution. Include a table of contents, index, links or
samples with your proposal materials as appropriate.

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Contract Obligations

All information and responses must be submitted in writing. All information and responses will be
incorporated into and made a part of any final agreement between EQI and the successful bidder.
No information should be submitted that cannot be so incorporated into the agreement.

Vendor understands and agrees that it has a duty to explain and clarify any and all conditions
imposed on or included in its responses to the questions in this RFP. Vendor further understands
and agrees that it has an affirmative duty to inquire about and clarify any RFP questions that vendor
does not fully understand or that vendor reasonably believes may be susceptible to more than one
interpretation.

The contents of your responses will become contractual obligations if you are the selected vendor
and a written agreement is duly executed. The failure of the vendor to accept and comply with this
obligation in the purchase agreement, delivery order or similar acquisition instrument may result
in the cancellation of the contract.

Proprietary Rights

All material submitted as part of your response will become the property of EQI. EQI reserves the
right to use one or all the ideas and methods presented.

Modification Rights

EQI reserves the right to modify the specifications contained in the RFP at any time prior to the
actual written execution of the contract and to award a contract in accordance with the
subsequently modified specifications.

Following are certain conditions related to this RFP. These represent obligations and limitations
with respect to the RFP that apply to any vendor who prepares a response.

Obligations

EQI reserves the right to reject any and all responses received as a result of this request. EQI shall
not be obligated to accept a contract solely on the basis of a response made to this RFP, nor shall
EQI be obligated to pay for any cost incurred in the preparation of vendor responses.

Deadline Date

Responses must be received by EQI by the date specified in the cover letter.

Selection Criteria

EQI reserves the right to make an award based solely on the information received or to negotiate
further with one or more vendors. The vendor selected will be chosen on the basis of the greatest
benefit to EQI, not necessarily on the basis of lowest price.

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III. FUNCTIONAL REQUIREMENTS

Section III contains a list of critical features and functions required to support business processes.
The checklists identify critical needs by application. Your response must include a copy of the
pages in this section, including a candid answer as to whether your system can address each
requirement noted on the following pages, using the ratings listed below:

5 = Exists in proposed system (current release) as stated

4 = Functional equivalent in proposed system, differences noted

3 = Planned in future release update (give release version and estimated release date)

2 = Modification required (indicate complexity)

0 = Not feasible to provide function as stated

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FUNCTIONAL REQUIREMENTS

A. General System Requirements Response

The system should provide the ability to:

A. General System Requirements

1. Allow full functional clients to run under Windows 8.1 or higher with a
modern browser and extremely limited or no local client installation 5
requirements.

2. Support 100% of functionality using modern web browsers as the client, with
full functionality on both Windows (Chrome, FireFox) and Macintosh
(Chrome, Safari, Firefox) computers. 5

3. Support multiple web browser sessions for the same user account, allowing
independent windows for access to different screens on different monitors 5
simultaneously.

4. Provide a SaaS based solution running in a recognized cloud environment 5


and 100% supported by the ERP vendor and their authorized partners.

5. Provide vendor managed cloud backup and recovery as part of the SaaS
solution.

6. What other SaaS options exist beyond the primary offering? How do these
and any on-premise or private cloud options impact pricing? Please attach
detailed secondary option pricing for these alternatives.

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

7. Support OLE-DB, ODBC, or similar native connectivity for data access, 5


reporting, and read level connectivity.

8. Support data access and update capabilities through API’s, REST calls, or 5
other open and flexible methods for integrating with

9. Does the application utilize a relational database concept? Yes ___ No ___

Identify the database platform and technologies used to deliver the solution,
including any benefits and/or limitations for non-SQL technologies?

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

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FUNCTIONAL REQUIREMENTS

A. General System Requirements Response

The system should provide the ability to:

10. In what development languages and frameworks is the application written?

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

11. Is any applications source code provided? Yes ___ No ___


If yes, include in pricing, detailing any additional costs or options:

_____________________________________________________________
_____________________________________________________________

12. Have on-line/real-time inquiry and update capabilities for all modules and 5
functions? Please detail any exceptions for functions or operations where
batch processing or manual posting are required…

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

13. Does the system utilize a 100% modern browser and graphical user interface
for all functions? Yes ___ No ___
Are shell scripts or non-browser interfaces required for any user or
administrative functionality? Yes ___ No ___ Explain:

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

14. Does the system have a facility to create, re-arrange, and add fields and
additional logic to the existing web forms? Please describe/link details:

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

15. Does the application have context sensitive Help facility at all levels?
____________Application ____________Form ____________Field

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FUNCTIONAL REQUIREMENTS

A. General System Requirements Response

The system should provide the ability to:

16. Is the Help and Documentation indexed and fully searchable? Please identify
specific modules or functions with Wizards or other advanced assistance
features.

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

17. Is there an active user community and support forum with significant daily
activity and active participation from vendor support resources?
Yes ___ No __ Please explain and share a link/access for our review:

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

18. Does the application conform to all international, federal and state mandated
reporting requirements? Is it compliant with all USA, India and China
regulations?

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

19. Does the support agreement include updates for changes in state, federal, and
international laws? Please specify all supported countries and any
limitations.

_____________________________________________________________
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_____________________________________________________________

20. What is the native operating system under which the application was
originally developed? When was the applications base code originally
developed? Do multiple vendor supported SaaS options exist?

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

21. Provide shortcuts or menu navigation customizations to simplify navigation


across different forms and functions.

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FUNCTIONAL REQUIREMENTS

A. General System Requirements Response

The system should provide the ability to:

22. Provide on-line editing of data entry and have all changes reflect last
modified date and user Audit reporting for all financial and inventory
transactions.

23. Provide on-line editing of all data entry and have all changes reflect last
modified date and user.

24. Audit reporting for all financial and inventory transactions.

25. Provide automated application and power fail routines (recover/restart) to


ensure no data loss.

26. Allow multiple users to simultaneously access the same file, with record
lock-out protection only at the record level and not preventing read-only
access.

27. Provide multiple levels of security and multiple user groups or classifications
for access to modules, functions, and fields.

28. Please describe security levels in applications and what levels of security can
be assigned, including levels of granularity:

_____________________________________________________________
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29. Is Azure Active Directory integration an available single-sign-on (SSO)


option for all applications and add-ons? Yes ___ No __
Please detail your SSO and application access options (with links or details).

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

30. Is support provided by a single vendor or multiple? Yes ___ No __


How many providers are involved in training, implementation assistance and
ongoing support? Please describe:

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

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FUNCTIONAL REQUIREMENTS

A. General System Requirements Response

The system should provide the ability to:

31. Enforce “referential integrity” to ensure that data cannot be deleted without
adequate cross-checks.

32. The following system-wide security controls are desired:

a. Controlled access to application to be accessed through a combination of


user id, password, device type used, screen, and field to be accessed.

b. Maintain a log of all access attempts for both authorized and


unauthorized users.

33. Please specify your recommendation for information technology personnel


needed to implement and support this solution (number of FTEs and
commitment level for what time period):

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

34. Is a full-time systems administrator required or recommended for on-going


support of your solution for this many users & complexity? Yes ___ No ___

If no, what portion of a Full Time Employee (FTE) is recommended? _____

35. All master files should support an unlimited or very high number of records.

36. The system should allow scheduled jobs and off-hours processing for
resource intensive or schedule sensitive jobs (ex. MRP).
Are there audit logs and administrative level visibility to all job schedules?
Yes ___ No ___

37. The system can queue or background process large processing or reports and
not tie up web application access while processing.

38. Identify the Electronic Data Interchange (EDI) interface transaction


documents that can be integrated into the applications (ex. EDI 850, 860,
810, etc.):

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

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FUNCTIONAL REQUIREMENTS

A. General System Requirements Response

The system should provide the ability to:

39. Have an Electronic Data Interchange (EDI) interface module as well as


support for third party EDI packages. Can you integrate with Transaction
Manager (Foundry/cloud version)? Please detail all EDI packages with
existing integration, including your recommended solution:

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

40. Offer XML or JSON based import and export of business objects for
integration with the supply chain and additional EQI applications. Please
describe and provide links. Is this incremental, or in lieu of an integrated EDI
solution:

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

41. Allow multiple simultaneous users with read access to the same record and
modify access to different records in the same table.

42. Perform automated cleanup activities if a user session is hung or aborts—


closing files and clearing memory and session variables as appropriate.

43. Describe support for Microsoft Office 365 integration, including generating
e-mail merges, Excel or word file generation, SharePoint support, etc.:

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

44. Describe support for generating PDF’s and any other file connectivity to PCs,
including any upload or download capabilities:

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

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FUNCTIONAL REQUIREMENTS

A. General System Requirements Response

The system should provide the ability to:

45. Describe the application development and user extension capabilities


provided with the solution. Can new tables and relationships be established
with existing tables?
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46. Allow reports with parameter outputs and search screen results to be
generated to .CSV, PDF, or Excel for dynamic download.

47. Allow reports with custom options and parameters to be saved for reuse,
scheduled, and e-mailed in .CSV, PDF, or Excel.

48. Detail which functional areas of the application are mobile iOS/Android
enabled? Are these designed/oriented for a phone &/or tablet touch screen
interface or are they full size screens rendered responsively?

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49. Provide details around custom reporting & analysis capabilities, including
explaining customized data modeling and analytics tools for areas such as:
a. Sales Analysis
b. Purchasing & Receiving
c. Inventory
d. RFQ
Please indicate if these tools are used for customized reporting directly linked
into your functional navigation & menus. We are targeting modern analytics
tools such as Power BI, Tableau, Qlik or similar. Please identify the
supported tools and provide links to relevant references:
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

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FUNCTIONAL REQUIREMENTS

A. General System Requirements Response

The system should provide the ability to:

50. Detail any portals or functional areas that are specifically designed for
customers, vendors, warehouse/VMI, or other partners to directly access
functionality. Please describe/link details, including any customization or
branding capabilities?

_____________________________________________________________
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_____________________________________________________________

51. Support transaction log (records of all data entry) by:

a. User
b. Application
c. Table
d. Transaction
e. Date

52. Support training and testing environments that utilizes a unique copy of the
database that will not affect the production database. Describe how the
production database copies are generated/updated and any limitations:
_____________________________________________________________
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53. Support record of changes for customizations & custom applications:

a. Date program created


b. Dates changed
c. Who performed change
d. Description of the change

54. Track usage activity for specific application forms and reports, including:

a. User and last date used


b. Frequency of use

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FUNCTIONAL REQUIREMENTS

A. General System Requirements Response

The system should provide the ability to:

Language and Currency

55. Provide native applications support for the following languages

a. English
b. Simplified Chinese
c. Vietnamese
d. French
e. Please detail other languages supported…
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

56. Support additional parallel language fields and translations for base tables,
dimensional tables, and transaction tables, including part descriptions,
routing steps, dimensional elements, etc.

Specify the number of additional languages and specific fields supported…


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57. Generate commercial documents (Purchase Orders, Invoices, Packing Slips,


etc.) in multiple additional languages based on the preference of the vendor
or customer

Specify the number of additional languages and specific documents…


_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

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FUNCTIONAL REQUIREMENTS

A. General System Requirements Response

The system should provide the ability to:

58. Meet all country legal and fiscal reporting requirements for all the defined
applications and functional areas, including 3rd party add-ons, needed to meet
the Functional Requirements

a. USA
b. China
c. Vietnam
d. France
e. India
f. Other supported countries & if available natively or via 3rd party add-on…
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

59. Support multiple currencies, including establishing a different base currency


for each legal entity…

a. USD
c. EUR
d. CNH (China yuan renminbi)
e. VND (Viet Nam Dong)
f. INR (India rupee)
g. GBP (pound sterling)
e. Additional currencies supported…
_____________________________________________________________
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60. Provide currency Exchange Rate/FX integration to harvest currency rates


from external sources. Provide Intranet sources & details…

_____________________________________________________________
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61. Evaluate prior vs. new currency rates and impacts. Process currency/FX
valuation updates against…
 Inventory
 Accounts Receivable
Accounts Payable
_____________________________________________________________

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FUNCTIONAL REQUIREMENTS

A. General System Requirements Response

The system should provide the ability to:

62. Evaluate prior vs. new currency rates and impacts against customer pricing
and vendor pricing. Identify valuation changes for potential price
adjustments.

_____________________________________________________________
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_____________________________________________________________

63. Provide Material Index integration to harvest Index rates from external
sources. Provide supported Intranet sources and any technical interface
requirements…

_____________________________________________________________
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_____________________________________________________________

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FUNCTIONAL REQUIREMENTS

B. Sales Forecasting Response

The system should provide the ability to:

B. Sales Forecasting

1. Generate forecasts for customer and part, incorporating trends and detecting
seasonality. 5

2. Forecasts should incorporate units, tonnage, and sales revenue projections to


allow isolating material and currency fluctuations from actual changes in 5
sales demand/volumes.

3. Include the ability to add notes to highlight specifics of loaded forecasts like
what may seem illogical, etc. to flag others. 2 (Low to
Medium
complexity)

4. Utilize sales history for previous years and the year to date in developing the 5
forecast. This would include sales by customer and part.

5. Combine part history / demand across EQI companies (USA, China, etc.) to
reach a consolidated forecast. 5

6. Allow copying historical data to a forecast, then manipulating the data to


finalize the forecast. 2 (low to
medium
complexity)

7. Support variable forecast period size:

a. Weekly
b. Month
c. Quarter
d. Year
e. Rolling twelve months

8. Choose to manage forecasts for select customers and parts by uploading


customer provided forecasts from .XLSX or .CSV file formats, including the
ability to compare and flag differences between previous and newly loaded
forecasts. Also support this through integration with XML data or EDI
830’s.

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FUNCTIONAL REQUIREMENTS

B. Sales Forecasting Response

The system should provide the ability to:

9. Choose to manage forecasts for select customers and parts via sales history. 5
The forecasts should be in units, dollars, and tonnage to help segregate price
volatility from actual volume shifts. (keep units & $’s with reasoning)

10. Store and use sales history for forecasting calculations and analysis. Length
of historical data to be used should be user definable. 5

11. Analyze sales histories against multiple forecasting algorithms and select the
best one for forecasting. 5

12. Store multiple forecasts for use in “what-if” simulations. Include margin 5
analysis in forecasts, so that scenarios such as raw material percentage
increases/reductions or tariff increases/reductions can be analyzed.

13. Q
Maintain a record of all demand, including lost quotes and orders. 5

14. Provide a suggested plan in monthly buckets for estimating next year’s sales,
costs and profits, using forecasting tools based on sales demand. 5

15. Generate a gross sales forecast in dollars for the next year in monthly buckets Possible to run
for a part or mix of parts by any of the following parameters: Predictive
sales and use
a. Company consolidated - All of EQI of filters.
b. Legal Entity - Regional
c. Market - Aerial Lift/ Fork Truck/ Machine Tool/Oil and Gas 5
d. Sales representative
e. Customer
f. Part
g. Business Unit Manager (similar to a product line / market engineering
manager, aka. BUM)
h. Region of Supply
i. Material Classification

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FUNCTIONAL REQUIREMENTS

B. Sales Forecasting Response

The system should provide the ability to:

16. Allow adjustments to generated forecasts with the ability to review changes What if
and compare forecasts to history by: analysis and
use of filters
a. Company consolidated
b. Legal entity
c. Market
d. Sales representative 5
e. Customer
f. Part
g. BUM
h. Region of Supply
i. Material Classification

17. Compare the planning forecast with sales analysis reporting for comparison Embedded
of actual to forecast sales. Include allowing reports and comparisons to let Analytics
the user select which months will be shown using actual sales vs. budget or 5
forecast.

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FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

C. Order Management
Customer RFQ and Estimating

1. Allow sending quotes to prospective customers. Includes price and Basis BP data
availability quotations without establishing a completely entered/verified would suffice
customer master. This should include a customer status or other mechanism for Sales
to limit creating financial transactions prior to the customer reaching an quotation.
appropriate approval status.
5

2. Create partial part masters for RFQs with the ability to add initial part 2 (Low to
specifications in ‘RFQ’ status (limited item data entered). Provide part Medium
descriptions, customer part numbers, dimensions, material and production complexity)
specifications, and part drawings. Allow details such as currency & exchange
rate, HTS (Harmonized Tariff System) code, port of entry, payment terms,
etc. to be captured. Set appropriate status codes to prevent sales order,
purchase order, inventory, and similar financial transactions until the full
part-master requirements are updated.

3. Allow this quoted part (with all its item attributes) to be transitioned to a 5
fully approved part number later in the process if we are awarded the work.

4. Support ‘drag and drop’ to add customer provided attachments and industry 5
specifications to an RFQ.

5. Accept multi-line RFQ’s, bundling multiple customer parts into a an RFQ


“package”. Allow the bundle to be used in both pushing the “Supplier RFQ” 5
out in a package and in the final proposal being prepared for the customer.
Customer proposals may be combined to bundle multiple supplier bids into a
single customer proposal.

6. Provide quotes with a default number of days before expiration with override Monitoring
capability. Include automated reminders/follow up for items for the due date. analytics

And valid till


functionality
5

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FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

7. Provide RFQ workflow routing and tracking capabilities for quotations, 2 (Low to
including: Medium
a. Association to the original Sales representative, Customer Service complexity)
representative, Engineer, and Business Unit Manager
b. Configurable routing to the appropriate representative based on the
customer for a specific line-item
c. Free form quotation notes at header and line-item levels
d. Quotation templates

8. Allow configurable RFQ routing and tracking workflows for both enforced
and free-flowing RFQ processes:
a. Enforced RFQ’s have some mandated steps requiring completion before 2 (Low to
the RFQ can proceed. Medium
b. Allow “Quick Quotes” with a more open process for rapidly quoting complexity)
some scenarios: Requotes/updates; ECN revisions of exiting parts; Rough
Order of Magnitude (ROM) estimates; Counter weights Quotes
(consistent & repeatable requirements)

9. Support RFQ status for tracking and follow up using statuses values like: 2 (Low to
a. New/needs detail Medium
b. Technical Review complexity)
c. Waiting Supplier Responses
d. Preparing QRM/Customer Quote
e. Waiting Customer Response
f. Revisions/Pending Award
g. Won
h. Lost

10. Search and filter to find status of RFQ using customer name, part number, 5
RFQ number, Business Unit Manager, Engineer, and other quote attributes.

11. Copy proposals and estimates to create new estimates. 5

12. Offer estimates showing multiple quantity/price break combinations. 2 (Low to


Medium
complexity)

13. Firewall EQI team access to RFQs. Allow customer facing representatives to 5
see both customer and supplier RFQ data BUT prevent supplier facing EQI
team members from seeing customer facing requirements, contacts, pricing,
and other elements that are not explicitly exposed and accessible for the
Supply team.
EQI Ltd. 24 DRAFT
FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

14. Support translation of Technical Specifications, part details, and other Output form
documents into multiple local language before distribution to suppliers. language and
Allow secondary languages to be included in Supplier RFQ packages based BRF rules for
on their preferred language. output.

2 (Low to
Medium
complexity)

15. Support generating multiple RFQ’s to different types of suppliers for Output
different elements of the same Customer RFQ, including sending secondary control
(non-casting) lines items as RFQ’s for tooling, first run costs, APQP, PPAP, through BRF
machining, packaging, and combining these into a single Customer RFQ rules
estimate and response.

2 (Low to
Medium
complexity)

16. Allow creation of special material, labor or outside processing costs by Based on
estimate for packaging, machining, shipping and handling and special Bom and
processing charges (finishing, assembly) production
version.
5

17. Support a centralized database of industry (ex. ISO, ASTM, etc.) and 2 (High to
customer specific specifications. Allow updating and review of part quotes Medium
based on updates to related specifications. Support translation of complexity)
specifications into additional languages and country equivalent
specifications.

18. By customer, place automatic holds on new customer orders if the order Credit Limit
value is greater than a user defined value. and credit
block

EQI Ltd. 25 DRAFT


FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

19. Establish limits for approving RFQ proposals/estimates based on total value
and/or estimated profitability/profit margin. Trigger approval workflows as 5
needed when proposal targets are outside assigned limits.

20. Supplier responses to the quotes are uploaded and contained within the ERP
system for easy retrieval later and easy transition into the full part number 2 (Low to
later (if eventually awarded). Medium
complexity)
Order Entry

21. Support customized order types to modify order flows and set those as a
customer specific default order type, including the ability to select non-
default order types at customer entry. Basic order types include…

a. Direct to customer order flow – no warehouse/3PL 5


b. Warehouse/VMI order flow – customer shipped from local inventory
c. Return order flow
d. Rework order flow
e. APQP / sample order flow – inspection steps and approvals required as
user defined points in the order flow

22. Offer customer order lookups based on:

a. Partial Customer name 5


b. Partial Customer or internal part number
c. Primary or secondary phone number
d. E-mail address
e. Partial employee/contact name
f. Customer PO#
g. Date

23. Support on-line customer credit checking at order entry. The checks need to
take into consideration open/unshipped orders as well as unpaid invoices and 5
the new order’s value. Independently, be able to place a customer on hold for
credit or other reasons.

24. For held orders, allow entry of the order but prevent releases for shipping 5
purposes until management approves and releases the order.

EQI Ltd. 26 DRAFT


FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

25. Accommodate orders with the following:

a. Multiple quantities and ship dates 5


b. Multiple ship-to addresses
c. Line item value of zero (no charge for PPAP / sample items)
d. Price overrides with the ability to track those lines where an override
occurred.
e. Multiple sell prices to support two or more active prices for the same part,
based on the primary customer or that customer’s supplier ordering
(different bill-to and ship-to).
f. Part prices of up to four decimal places.

26. Support blanket sales orders:


a. Orders with multiple quantity and ship dates, and hold/forecast lines 4
b. Enter release orders against blanket orders (recognize open blankets and
auto-link by default) Use contracts
c. Split blanket quantities and release individual lines or scheduling
d. Partial shipment with the option to carry over remaining quantities to a agreement
new line.

27. Assign Inside Sales/CSL to customer/part and maintain performance analysis


data including: 5

a. Sales by buyer Embedded


b. Number of customers being managed Analytics
c. Number of products being managed and total value of sales/units YTD

28. Allow part search by:

a. Description, partial description (key word search) 5


c. Customer
d. Customer Part Embedded
e. Internal Part Analytics

29. Provide cumulative order totals as the order entry process is performed. 5

Embedded
Analytics

EQI Ltd. 27 DRAFT


FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

30. Allow loading (importing) orders or blanket orders from spreadsheets and 2 (Low to
customer provided files Medium
complexity)

31. For backordered items, send notification to the CSL. Provide options to:

a. Automatically ship backordered items when inventory becomes available. 5

b. Combine backordered items with next order. (Tie backorder to original 4 (can
sales order and reference original purchase order number from sales develop
order. Associate a backorder to another existing order.) functionality
based on
c Allow elimination of backorders. Return backordered quantities to blanket delivery
order. schedules -
Vendor)

4–
Backorder
rule can be
set as lose
quantities.

32. Easily view all open blanket order quantities and backorders by customer by 5–
item. Embedded
Analytics

33. Automatically allocate inventory at completion of order entry. 5 – Product


allocation
customizatio
n

EQI Ltd. 28 DRAFT


FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

34. Search/view open/all sales orders by any of the following:

a. Billing customer 2 ( Modify


b. Shipping customer or address (access by city, state, zip) embedded
c. Customer purchase order number analytics and
d. Part number add new
e. Sales representative filters as
f. Customer service representative required)
g. Engineer Low to
h. Market Medium
i. Ship date Complexity
j. Entry date

35. Provide easy access into order detail by customer, order line, date shipped
and invoiced. 5

36. Allow routing pick lists and shipping paperwork to route to specific printers
based on user defaults or wareho 5 – Output
configuration
(BRF rules)

use defaults.

37. Access all order information using either the shipper number, the invoice 5 – Process
number or the customer’s purchase order number to provide a complete life Flow
cycle of the order on one web form.

38. Support the following payment types: 5- Might


a. On account need add ons
b. ACH o
c. Wire transfer
c. COD
d. Letter of credit

EQI Ltd. 29 DRAFT


FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

Status of order line to include:


39. (1) Open 4
(2) Pick list assigned
(3) Shipped (can use
(4) Invoiced process flow.
(5) Canceled Only
(6) Backordered backordered
(7) Other status not
possible)

40. Track sales order changes in a transaction log or audit file. 5 – change
log

41. View available to promise for a product—free stock levels for a SKU in date
sequence, including on hand, outstanding sales orders, planned purchase 5
orders, distribution orders, and any open purchase orders.

42. Automatically select, schedule and release order lines for picking and
producing shipping documents based on requested ship date for specific line 5 (embedded
items. WMS

43. Allow partial shipments of an order by allowing releasing of individual line


items on the order. 5–
Partial
delivery
possible

44. Support shipping schedules by line-item, allowing multiple independently 5- Partial


dated shipments from a single line-item. delivery
possible

45. Track detail of multiple shipments on a sales order. 5–


Document
Flow
functionality

EQI Ltd. 30 DRAFT


FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

46. Track the following additional information for each sales order release:

a. Release date 5–
b. Who released order or system generated Workflow
c. Release status functionality
or block
removal

47. Maintain complete sales history records by customer (length of history


maintained should be at EQI’s discretion):

a. Sales units and dollars 5–


b. All debit and credit memos by reason code Embedded
c. Sales value, units, gross margin by month, year to date Analytics /
d. Sales value, units, gross margin by same month last year, last year to date filters
e. Sales value, units, gross margin by market, customer, supplier, part
f. Full order details with purchase order, invoice, shipper, BOL, and all date
and quantity details

48. View list of all customer purchases and current and/or historical pricing.

Customer Comments and Notes

49. Accommodate pre-stored shipping instructions or customer comments by


ship-to-address.

50. Include an indicator by shipping instruction line of where to print to include


the following documents:

a. Pick list 4–
b. Shipper Communicati
c. Shipping labels on
d. Invoice strategy of
e. All documents output
f. Inquiries only (for internal information)

EQI Ltd. 31 DRAFT


FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

51. Record contact comments with dates for: 5–


Embedded
a. Credit contacts Analytics
b. Sales contacts

52. Record date & specific comments by invoice. 2 – Custom


report

53. Support multiple comment sources on shipping and invoice documents 5 – Text
including customer master comments, bill-to comments, and ship-to feature in
comments. various
documents

Pricing

54. Establish price for each part at item master with multiple sell price options
based on:
- quantity discount 4 – Pricing
- location (warehouse 1 vs warehouse 2) Condition
- customer, when same part number sold to multiple customers (ex. Part types and
sold to manufacturer’s plant or part sold to manufacturers supplier) records

55. Verify price at time of order entry against active customer/item price list and 4 – manual
planned order delivery date. Allow pricing to be assigned by part and Pricing
revision level in addition to just part number. condition
type

56. Optionally allow override of price at order entry and enforce reason codes for 4 = manual
price overrides at order entry. pricing
condition
type and
reason code/
work flow for
pricing
change.

EQI Ltd. 32 DRAFT


FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

57. Support pricing schedules with effectivity dates to support planned price
changes due to supplier and/or exchange rate fluctuations. 5 – Pricing
condition
records with
validity dates

58. Price new order lines based on price list effective date so future orders are 5 – Pricing
placed using new pricing. list condition
records with
validity dates

59. Support identification, evaluation, and allow updating of existing order lines 2 – Update
impacted by new pricing. pricing at
delivery
creation (low
to medium
complexity)

60. Allow volume-based price breaks based on tonnage or quantity to extend to 2- cumulative
all transactions for the customer once the volume level is achieved. sales
tonnage/
quantity
based
discount

61. Support for pricing specific units of measure, including:


a. Each 5
b. Per Box/Packing unit (define based on item Box quantity)

62. Allow mass price changes with percent increase/decrease, using a price
effectivity date, including combinations of: 2- Medium to
High
a. By market complexity
b. By customer
c. By part
d. By supplier
e. By date
f. By material type

EQI Ltd. 33 DRAFT


FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

63. Support price change impact analysis including gross dollar and margin 2 – whatif
analysis based on future price list effective dates and historical sales. analytics

64. Store price change history for auditing of customer/part price changes. 2 (medium
complexity)

65. Process material price changes due to exchange rate/FX and commodity cost
movements of components. Review impact and process percentage-based 2 (medium
customer price increases. complexity)

66. Support volume-based pricing schedules using either the accumulated part
purchase value or by customer using the total accumulated purchase value 2 (medium
across parts. Allow defined windows (typically calendar year) for volume complexity)
discounts to be applied.

67. Allow price change approval workflows to trigger notification, review and 5
approval of pending price changes (including Business Unit Manager,
Finance, CSL/Customer Service, etc.)

68. Process customer price changes based on material price changes due to
exchange rate/FX and commodity cost movements of components. Review 2 (medium
impact and process percentage-based customer price increases. complexity)
Shipping

69. Automatically select, schedule and release orders for picking and producing
shipping documents based on requested ship date (using any orders inside the 5
date window with available inventory).

70. Produce appropriate shipping document sets automatically at ship


confirmation based on carrier. 4 – Output
configuration

71. Produce shipping labels at the time a pick list is printed. 4 – output
form
configuration

72. Print comments and special instructions on picking documents. 4 – output


form design

EQI Ltd. 34 DRAFT


FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

73. Produce bar coded shipping documents including labels…


a. Barcode labels with Advance Ship Notice formats
b. Custom barcode labels, with dynamic formats auto-selected based on the 4 – Output
customer ship-to adobe
c. PDF-417 and other two-dimensional bar code formats. forms

74. Produce shipping labels and packing slips with customized data based on the
customer assigned documents, with customer specific formatting, fields and 2 (medium
bar codes and layout out documents with multiple languages. complexity)

75. Allow printing of shipping documents in different languages, dynamically


selecting the language at run time, including a default based on ship to 2 (medium
location. complexity)

76. Support integration of mobile phones as scanning devices for paperless


picking and shipping. 4 – Using
Fiori Apps
for RFID

77. Support a final review order step, configured by order type, with
confirmation of the shipment for each order. 3 – SAP
Process flow
not designed
like this.
Order clerk
role is
different
from
transport
planning.

78. Do not allow order line changes after shipment confirmation without
acknowledging the order override. 5

79. Automatically generate invoices after shipment confirmation and update


accounts receivable. Include a verification process in shipping that confirms 2 (medium
order quantities to the appropriate order lines, active price list, margin complexity)
containment rules. Trigger invoicing only when all required match steps
have been confirmed.

80. Partially ship a line item. Support backorder handling rules by order type. 5

EQI Ltd. 35 DRAFT


FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

81. Handle multiple shipments per order and invoice each shipment separately or
consolidated, based on order type. 5

82. Query and create planned shipping line-ups, consolidating multiple orders to
match search criteria, including selected customer, destination, and open
orders within delivery dates. Optionally show orders without available 4 – Transport
inventory. Planning and
Management
to build
optimized
shipments

83. Assign planned shipping line-ups to a container shipper or planned load. 4 – Transport
Optionally show orders without available inventory. Planning and
Management
to build
optimized
shipments.
Deliveries
created only
when ATP
quantities
available.

Use order
fulfilment
monitor for
handling
exceptions

84. Automatically calculate the cubic volume and weights based on the part 4 – Transport
shipping weight and packaging outer dimensions based on the planned management
shipment quantity.

85. Decrease inventory from the stocking location at the time of confirmation of 4 – shipment
the shipment. Assign picked inventory to a shipper/BOL. post goods
issue

EQI Ltd. 36 DRAFT


FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

86. Allow for post shipment entry of freight charges, port fees, or expedite fees 4 – shipment
prior to invoicing. Based on order type, hold invoicing if freight charges are and freight
assigned. cost
settlement

Credit Memos, Rework Orders, and Returns

87. Track claims for credit memos, rework orders, and returns by:

a. By customer 5–
b. By warehouse Embedded
c. By part number Analytics
d. By date range
e. By non-conforming #

88. Completely integrate into the AR system, when/if credit/customer debit is to 5


be issued so there’s visibility when applying payments.

89. Support credit memo, rework, and return order types, tracking from the
original credit entry through quality review/approval (if applicable), goods 5 – process
receipt (if applicable), and issuing of applicable credit. flow

90. Allow assignment of un-invoiced shipping costs on rework and return order
types. 3 – SAP
process
design
ensures that
shipping cost
is captured in
the customer
invoice.

91. Maintain notes related to a credit/rework/return and flag notes as internal or 4 – Text
external. configuration
in credit/
debit memo
request/
return orders

EQI Ltd. 37 DRAFT


FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

92. Support linking returns to a specific invoice, sales order, shipper/BOL, or


customer purchase order. 4 – return
order created
with
reference to
Invoice

93. Allow partial and miscellaneous credits to be issued on an order to 4 – Credit


accommodate re-work, partial credits, etc. Including credits which don’t memo
impact inventory (scrap). request

94. Support user definable reason codes for credits, rework orders, and returns. 5

95. Specify which general ledger accounts will be debited for different types of 5
credit/rework/return credits.

Customer Portal

96. Allow customers to access a secure Customer Portal where they can see the
status of their orders and inventory for their assigned parts, including…

a. Current open orders, referencing by their P.O. number 4 -C4C or


b. Current on-hand inventory by warehouse and in-transit (“on the water”). Hybris -
c. Show with on-hold inventory not visible by default. ECommerce
d. Showing their part number and revision level.
e. Showing stock inventory status (Green/yellow/red) based on an EQI
defined on-hand requirement (contractual commitment) for each part
f. By date range

97. Present open Accounts Payable balance, open payment details, and past 4 -C4C or
payments received. Hybris -
Include access to invoice and shipper / proof-of-delivery requirements. ECommerce

98. Support a KPI for on-time-delivery and its supporting details to be shown or 4 -C4C or
hidden based on customer parameters. Hybris -
ECommerce

99. Allow customers to subscribe (or EQI to enroll) verified customer e-mails 4 -C4C or
into a shipment notifications queue to provide Advance Shipment Hybris -
Notification (ASN) e-mails when new shipments are sent to selected ship-to ECommerce
locations.

EQI Ltd. 38 DRAFT


FUNCTIONAL REQUIREMENTS

C. Order Management Response

The system should provide the ability to:

EQI Ltd. 39 DRAFT


FUNCTIONAL REQUIREMENTS

D. Sales & Inventory Analysis Response

The system should provide the ability to:

D. Sales & Inventory Analysis

Sales KPI’s & Measures

1. Provide online views of sales, cost of sales, gross profit and units by any 5–
combination of the following for user defined time periods: Embedded
a. Market Analytics
b. Supplier
c. Part
d. Customer Part
e. Customer Bill-to/Ship-to
f. Sales representative
g. Geographic territory (country, state, city)
h. Company
i. Legal entity
j. Material
k. Operations Step/Process Type (ex. Vacuum casting, No bake, Investment
Casting, etc.)
l. Commodity
m. metric tonnage
n. average cost per lb. per material

2. Compare this year to last year sales and this month to previous month for any 5–
of the categories mentioned in item #1 above Embedded
Analytics

3. Compare this month and year to budget for this month and year for any of the 5–
categories mentioned in item #1 above Embedded
Analytics

4. Provide ranked profitability analysis by customer, market, and part number 5–


Embedded
Analytics

EQI Ltd. 40 DRAFT


FUNCTIONAL REQUIREMENTS

D. Sales & Inventory Analysis Response

The system should provide the ability to:

5. Provide all sales order, part, values, quantity, delivery, BOL, freight charge, 5 – can use
credit/return details in a pre-built data model for sales analysis and reporting Embed
using a modern analytics tools such as Power BI, Tableau, Qlik or similar. ded
Please identify the supported tools and provide links to relevant references: analytic
_____________________________________________________________ s or
_____________________________________________________________ BW to
_____________________________________________________________ connect
to BI
tools

6. Provide ranked profitability analysis by customer class and customer and part 5
number

7. The length of the sales history detail that is maintained should be at EQI 5 – hot and
discretion limited only by disk space. warm data

8. Optionally exclude unusual orders (specified by user) from sales analysis


reporting. In addition, allow separating tooling into a product class that can 5–
be tracked, but not included in the production sales analysis so margin/part Embedded
sales aren’t skewed. analytics
using filters

9. Generate profit & loss statements by customer, material, process, business 5–


unit, market, part, warehouse, and supplier. Embedded
analytics

EQI Ltd. 41 DRAFT


FUNCTIONAL REQUIREMENTS

D. Sales & Inventory Analysis Response

The system should provide the ability to:

10. Measure the following based on a user-specified time interval and option to
select by market, customer, supplier, or part:

a. Blanket orders vs. actual order releases. Value, quantity & percent 5–
over/under blanket orders. Embedded
Analytics
b. Fill rate on customer orders. This is the total quantity shipped versus the
quantity requested by the customer, expressed as a percentage.

c. Order cycle time: Time from actual date of order to actual ship date of Contract
order. fulfilment

d. Overall order on-time delivery: Percent of time that ship date equals Order
promise date. fulfilment

e. Returns, rework, and credit as a percentage of sales:


(1) This year
(2) Last year

f. Returns by reason code.


Inventory

11. Analyze inventory turns, extrapolating 12 months sales for items without new 5–
inventory. Be able to filter and group by customer. embedded
analytics

12. Analyze inventory value per ton and trend over time. Filtering and grouping 5–
by: embedded
a. Customer analytics
b. Market and filters
c. Supplier
d. Material
e. Warehouse
f. On-hand vs in-transit

13. Project inventory value and turns using the latest forecasts vs. current 5–
inventory and on-order quantities embedded
analytics

EQI Ltd. 42 DRAFT


FUNCTIONAL REQUIREMENTS

D. Sales & Inventory Analysis Response

The system should provide the ability to:

14. Analyze sales vs. purchases and vs. inventory by supplier in both $, units, 5–
and tons embedded
analytics

15. Compare on-hand inventory against a rolling 12 months sales and 5–


dynamically selected sales date range embedded
analytics

EQI Ltd. 43 DRAFT


FUNCTIONAL REQUIREMENTS

E. Invoicing, Accounts Receivable and Credit Management Response

The system should provide the ability to:

E. Invoicing, Accounts Receivable and Credit Management

1. For customers with multiple locations, option to:


a. Invoice a bill-to location. 5
b. Invoice each ship-to location and also send summary to primary (bill-to)
customer location. 2 – output
form low to
medium
complexity

2. System generated invoice packet which includes invoice, packing slip and 4 – Invoice
BOL in pdf form to email to customer. output from
customer
invoice.
Packing
slip and
BOL adobe
output from
shipping
document

3. Process miscellaneous invoices. 4 – service


or invoice
types

4. For no charge order types, optionally show the charge, credit and reason for
no-charge on the customer invoice. 2 – low to
medium
complexity

5. Assign reason codes to accounts receivable adjustments for analysis.


2 – low to
medium
complexity

6. Have option to flag a customer account to produce an open item statement,


balance forward statement, or no statement. 2–
medium
complexity

EQI Ltd. 44 DRAFT


FUNCTIONAL REQUIREMENTS

E. Invoicing, Accounts Receivable and Credit Management Response

The system should provide the ability to:

7. Have option to automatically apply interest and late charge to customer’s


outstanding balance. Provide the ability to easily reverse as necessary. 2 – low to
medium
complexity

8. Allow cash payments/deposits on account without applying to outstanding


invoices.

9. Accept partial payments and overpayments for invoices.

10. Offer an immediate write-off of the invoice balance due upon entry of a
partial payment, if the balance due is below a user configured threshold.

11. Easily view the following during application of cash to customer account:
a. Invoice
b. Customer’s account balance
c. Credit memos and notes
d. Customer and invoice notes

12. Support applying ACH payments and wire transfers to invoices.

13. Allow inquiry into all AR transactions by customer for a user defined time
period.

14. Apply full or partial credit memos to invoices during cash application.

15. Apply a single credit to more than one invoice.

16. Enter reason codes and comments for any transaction:


a. Cash application
b. Credit application
c. Adjustments

17. Allow sorting and filtering of customer A/R detail by aged dollar amount _
past due (high to low), past due over user defined amount, invoice date, due
date, invoice number, salesperson, Business Unit Manager, customer, or
market

18. Flag customer accounts for different collection letters based upon the past-
due status of the account.

EQI Ltd. 45 DRAFT


FUNCTIONAL REQUIREMENTS

E. Invoicing, Accounts Receivable and Credit Management Response

The system should provide the ability to:

19. Automatically generate summary statements with attached past due invoice
and shipment/delivery documentation to be sent to customer.

20. Optionally override general ledger default posting account during posting,
based on user authorization.

21. Configurable option to post invoicing, accounts receivable and credit


transactions to general ledger with full detail.

22. Provide a transaction log/audit file for inquiry/reporting of detail of


transactions.

23. Produce a detail aging, listing open document amounts for each customer’s
account in user defined aging buckets.

24. Produce a summary of customer trial balance, showing a summary of each


customer’s account in user defined aging buckets.

25. Provide a credit summary by account for each customer:

a. Year-to-date high outstanding balance.

b. Weighted average for days paid (average days paid):

(1) For previous 12 months.


(2) For current month.
(3) For user-defined time period.

c. Current outstanding balance.

d. Outstanding sales orders amount.

e. Date and amount of last payment

26. Ability to invoice by receiving container. (Used primarily for direct ship
customers where EQI never takes possession).

EQI Ltd. 46 DRAFT


FUNCTIONAL REQUIREMENTS

E. Invoicing, Accounts Receivable and Credit Management Response

The system should provide the ability to:

EQI Ltd. 47 DRAFT


FUNCTIONAL REQUIREMENTS

F. Item Setup and Engineering Response

The system should provide the ability to:

F. Item Setup and Engineering

1. Flag new parts added to the database for completion of engineering,


planning, purchasing and costing information.

2. Allow user-defined part status fields to manage parts in RFQ, Development


(APQP), Conditional Approval, Full Approval, Scan Approval, EPC, Phase
out, Inactive

3. Assign “allowed processing (restrictions)” by user-defined part status for:


RFQ, Development (APQP), Conditional Approval, Full Approval, Scan
Approval, EPC, Phase out, Inactive

4. Maintain multiple dimensional fields for a part, including weight, length,


width, height as well as packaged/shipping weight, length, width, height for
the racked/packaged part (both metric and standard system units of
measurement need to be available simultaneously)

5. Handle item specific units of measure ratios to override default ratios for
items where the specific ratios are defined (ex. default item Box=1 unit, item
specific Box=25 units). Optionally enforce order quantity multiples to a
default inventory unit of measure (ex. full box quantities, etc.).

6. Offer user defined packaging units of measure by item with a default


inventory unit of measure code for supplier P.O.’s, inventory, and shipping

7. Allow assignment of HTS (Harmonized Tariff System) codes to parts. Allow


tracking and searching for parts by HTS code.

8. Identify and attach drawing numbers for parts and part revisions.

9. Attach files and objects to parts for use in purchasing, shipping, and customer
documents:

a. CAD Drawings / Models


b. Customer specifications and requirements
c. Web or SharePoint links to related files
d. Part outlines/icons for inclusion in customer documentation and labels

EQI Ltd. 48 DRAFT


FUNCTIONAL REQUIREMENTS

F. Item Setup and Engineering Response

The system should provide the ability to:

10. Dynamically view extended part information, including drawings, extended


descriptions, detailed specifications and item details through part links
accessible wherever a part number is referenced in Purchasing, Inventory,
and Order management.

11. Allow copying parts to carry over all existing part details, BOM’s, routings,
specifications, and attachments to a new part.

12. Permit part archiving for inactive parts, but only when the item no longer
exists in an active bill of material, the on-hand quantity is zero, the item is
not on an open PO or sales order, and there are no open invoices. (quality
holds need be allowed at any time)

13. Quality and user defined part holds need to be allowed at any time.

14. Perform partial part number, customer part number, or description searches
including views with the inventory, open PO’s, open orders, forecasts, and
costing information.

15. Allow work orders to be issued for purchased parts and purchase orders to be
issued for manufactured parts.

16. Support unlimited descriptions/notes and to be associated with a part number


and classified as internal or external.

Bills of Material

17. Maintain quantity per information precision with up to 4-digit accuracy to the
right of the decimal. Weight needs to be recorded for casting materials (4-
digit decimal accuracy) both metric and standard system units

18. Provide single level and indented “where used” reports/screens.

19. See the exact BOM components and specifications effective for a purchased
or manufactured part on a specific date.

20. Support a full BOM structure/costing under a purchased or manufactured


part.

EQI Ltd. 49 DRAFT


FUNCTIONAL REQUIREMENTS

F. Item Setup and Engineering Response

The system should provide the ability to:

21. Allow phantom items on the bill of material (rack components, etc.) that are
reflected as specifications but don’t generate planned purchase orders.

22. Support unlimited comments associated with the bill of material.

23. Provide forecasting for BOM subcomponents (planned orders and committed
volumes)

24. Inventory management for BOM subcomponents (Safety Stock vs. order lead
time)

Work Centers

25. Assign a supplier/work center calendar. Leverage to include supplier


availability while calculating time phased order requirements in inventory
planning and MRP. (exclude Chinese New Year, etc.)

26. Assign a supplier to a Work Center to designated supplier/outside processes.

27. Assign supplier skill codes (aka. capabilities or operations) to a Work Center
to designate the capabilities of a specific supplier/outside processes.

28. Standard lead-times defined for supplier for approved parts. Also allow
adjusting for a specific foundry and part number or dynamically calculating
based on the collective operations lead-time.

29. Designate the tooling to be used based on a work center assignment,


including cavity identification, if applicable, with granularity of approval
status by cavity (pattern/core), revision status of tooling to match drawing
and revision letter are required for all tooling by work center.

30. Support multiple tools with the same supplier and part/revision.

31. Maintain information on required skills codes by supplier/work center….


maintained in supplier setup, but details of certifications needed against
various standards. [ex. Supplier x-ray to ISO specifications tracked as a
Supplier skill code].

EQI Ltd. 50 DRAFT


FUNCTIONAL REQUIREMENTS

F. Item Setup and Engineering Response

The system should provide the ability to:

32. Maintain standard labor costs, variable burden and fixed burden by work
center.

33. Define supplier/Work Center known maximum capacity and EQI’s allotted
capacity. Calculate estimates of open capacity against currently planned
orders by week or month

Routings and Work Instructions

34. Support multiple alternate routings with alternate work instructions.

35. Designate an alternate routing as default based on the supplier used for a
purchase order. With capability to be altered by permitted members of team

36. Assign unique setup/per order and per unit costs for routing steps assigned to
suppliers to support unique costs based on each unique supplier.

37. Assign outside processing steps and/or costs to a part placed on a sales order
to support finishing and light assembly operations prior to shipping from a
3PL warehouse

38. Support outside processing for all or part of a routing.

39. Provide “where-used” capability for routing operations and work


instructions. Useful for finding tooling, x-ray, or other elements such as
references to ISO specifications with versions, etc. so they can be identified
later & updated, etc.

40. Support unlimited work instructions associated with a routing step.

Features and Options

41. Support sales order features and options for identifying a part
finishing/painting and light assembly, including cross-docking

42. Automatically generate routings for configured products based upon


configuration choices, defining the steps necessary for manufacturing or
finishing, capability of being over-ridden by authorized parties

EQI Ltd. 51 DRAFT


FUNCTIONAL REQUIREMENTS

F. Item Setup and Engineering Response

The system should provide the ability to:

43. Automatically generate parts and bills of material for configured products
based upon configuration logic.

44. Use a consistent part number (“option code”) to consistently id parts with the
same features. Used to support common inventory part numbers for barcode
and RFID purposes and to distinctly identify the configuration of a product.

45. Support selectively using “option code” parts as if they are a permanent part
number. For example, ordering a John Deere part AT12345. If an option
code: GREEN could be used for a green finish, and ORANGE option code
for an orange finish.

Engineering Change Management

46. Track item level history (primarily revision levels but also part number
changes) with effective date, engineering change number (ECN), and
description of change.

47. Maintain received, approved, quoted, inactive dates for part numbers and
revision levels.

48. Record/manage planned effectivity dates and allow rolling effective dates for
inventory scenarios. Handle inventory transition scenarios: Use up, obsolete,
rework/modify, rolling, deviation

49. Maintain engineering change order history and retain history for all previous
revisions.

50. View all affected parts structured to a specific engineering change. All
related assemblies, kitted or otherwise related higher / lower level
components

51. Support part revisions in item inventory and place sales orders, purchase
orders, and shipments based on all inventoried revision levels

52. Enable or prevent revision substitutions at the ECN level

53. Store and facilitate controlled access to all controlled documents (drawings,
spec, models, etc.).

EQI Ltd. 52 DRAFT


FUNCTIONAL REQUIREMENTS

F. Item Setup and Engineering Response

The system should provide the ability to:

54. ERP to default to current approved revision for placing sales orders, purchase
orders and shipments. Revision changes must be overwritten with
permission restriction

55. Facilitate managing the ECN process with automated workflows to support
an interactive process for reviewing and approving new parts and part
revisions.
(ex. upload new documentation, detail ECN change, communicate change,
solicit vendor quotes, submit customer proposals, receive customer PO, run
sample parts, customer revision approval, move ECN to production)

Tooling

56. Maintain a log of tools and their sizes., including all tooling materials
(fixtures, gages, hand-helds, core boxes, patterns [cavities], etc.) – life of
tooling and ownership

57. Track tool usage and record volumes by part and mold, by cavity, including
shot life flags (manually edited also)

58. Maintain a “where-used” record for tools showing the products in which they
are used.

59. Track the usage history (shot tracking & maintenance history), location and
cost of tools, including gaging calibration requirements as a bigger system

60. Include gage usage and tracking, including re-calibration needed, and re-
calibration logging.

61. Single pattern capable of producing multiple finished part numbers and
tracking shot life/history – creation of tooling asset id#. Patterns and core
boxes can be used in combination to create multiple parts.

62. Revision change of customer part number could use the same tooling – need
to allow for tooling to transfer into the new part number – creation of tooling
asset id number. (ex. For a revised part, possibly involving tool re-work, keep
prior usage so the tool id history and usage continues).

EQI Ltd. 53 DRAFT


FUNCTIONAL REQUIREMENTS

F. Item Setup and Engineering Response

The system should provide the ability to:

63. Maintain tooling status in the item setup, including noting cavity status,
approval/APQP process by cavity, and revisions tools by cavity to provide
visibility to new part revisions.

EQI Ltd. 54 DRAFT


FUNCTIONAL REQUIREMENTS

G. Inventory Control and Cycle Counting Response

The system should provide the ability to:

G. Inventory Control and Cycle Counting

1. Support for unlimited warehouses and allow sales orders to be filled from
any warehouse. 4–
warehouse
determined
by plant

2. Value inventory using average costing techniques. 4–


Material
valuation
by
standard,
moving or
actual cost

3. Support different inventory valuation methods for book vs. tax purposes, 5–
including LIFO and FIFO. material
valuation /
material
ledger in

4. Support a part number cross-reference including: 4–


Customer
a. Customer number to EQI number (current revision) material
b. Primary supplier number to EQI number number and
c. Secondary supplier number to EQI number available
fields in the
product
master

5. Maintain a perpetual inventory balance by item, revision, warehouse, and 5


location.

6. Allow designating by item if revisions are relevant to that parts inventory


transactions and enforce/confirm only if multiple revisions exist in inventory.

EQI Ltd. 55 DRAFT


FUNCTIONAL REQUIREMENTS

G. Inventory Control and Cycle Counting Response

The system should provide the ability to:

7. Support the use of minimum/maximum reorder point inventory logic at the


warehouse level. 5

8. Generate time-phased purchase order suggestions based on min-max, and


EOQ (Economic Order Quantity) formulas, including order multiples for
ordering in rack or container quantities depending on the part and its ordering 5–
pattern. consumptio
n based
Planning

9. Consider existing sales order demand, PO planned dates, distribution order


transfer lead-times, and delivery lead-times based on the unique supply chain
for each part/supplier combination. (China and India suppliers will have 5
different lead-times for the same part due to default supplier lead-times and
container transit times).

10. Support unit of measure conversions (purchase in racks and accept sales 5
orders for units).

11. Allow selection of any unit-of-measure defined for an item for all inventory
and cycle counting transactions (ex. units, racks, boxes, etc.) 5

12. Calculate days on hand on an item basis, based on:


5–
a. Historical usage embedded
b. Open orders and forecasted demand analytics

13. Produce a stock status report by warehouse, showing quantity on hand, on


purchase orders, distribution orders, sales order, committed to customers, and 5–
forecasted demand. Embedded
analytics

14. Allow inquiry and search by: 5-


a. Item number Embedded
b. Partial item description analytics
c. Partial item extended description
d. Market
e. Supplier
f. Customer

EQI Ltd. 56 DRAFT


FUNCTIONAL REQUIREMENTS

G. Inventory Control and Cycle Counting Response

The system should provide the ability to:

15. Support user defined item status codes such as: active, inactive, quality 2–
inspection required, quality hold, etc. Assign status codes to locations or all medium
items in a warehouse. complex

16. Allow entry of miscellaneous inventory transactions such as scrap or 2–


adjustments with reason codes for any miscellaneous transactions. medium
complex

17. Reduce inventory available to promise levels when a sales order or work 5 – ATP
order is confirmed. configurati
on

18. Reduce on-hand quantities when goods are shipped. 5

19. Support non-nettable inventory locations excluded from available to promise


and order planning logic (quality hold). 4 – Global
ATP
settings

20. Provide stock status inquiry which includes on hand, on order by warehouse, 4 – Custom
allocated, and available to promise. Analytical
report

21. Allow distribution transfer orders between suppliers and warehouses,


supporting planned shipping date (port departure) and planned arrival 4- Stock
(VMI/3PL receipt). transfer
orders and
cross
docking

22. Assign distribution transfer orders and purchase orders to containers to track 4–
inventory availability and on-the-water quantities (EQI owned inventory). Integration
with GPS
or transport
tracking

EQI Ltd. 57 DRAFT


FUNCTIONAL REQUIREMENTS

G. Inventory Control and Cycle Counting Response

The system should provide the ability to:

23. Provide online/workbench dynamic filtering and grouping of purchase orders


by destination, departure port, supplier, part, and/or date to interactively build 4–
a container for a distribution transfer order or customer shipment. Transport
manageme
nt

24. Calculate total container weight for orders selected for a container. 4–
Transport
manageme
nt

25. Generate BOL/manifest documents for distribution transfer orders and 4 – Output
customer shipments by consolidated shipping container configurati
on using
BRF
framework

26. Revise all planned order arrival dates for customer orders or distribution 4–
orders by updating the container’s planned departure/arrival dates Transportat
ion
manageme
nt

27. Generate time-phased, planned supply orders for warehouse stock 4–


replenishment utilizing the following information: Production
planning/
a. On-hand quantities Distributed
b. Scheduled receipts scheduling
c. Customer backlog/open orders
d. Excluding Quality Hold & other non-nettable locations from on-hand
d. Forecast demand and Min/Max inventory quantities (set per part)
e. Distribution Requirements Planning/transfer orders

EQI Ltd. 58 DRAFT


FUNCTIONAL REQUIREMENTS

G. Inventory Control and Cycle Counting Response

The system should provide the ability to:

28. Produce an inactive inventory report listing all parts without any activity over
a user specified time period. 4 – filters
in
embedded
analytics
Cycle Counting

29. Allow system to assign ABC codes by warehouse, based on user-defined


parameters (as a percent of total), including:
a. Usage in units 5
b. Usage in dollars
c. Dollar value of individual units
d. Dollar value of on-hand quantity

30. Use ABC logic to auto select items for cycle counting. 5

31. Support selection of items for cycle counting based on market or supplier. 5

32. Define cycle count frequency for each item, based on ABC code, and the
next cycle count date will be automatically calculated by the system. 5

33. Provide cycle count tools such as: 4 – SAP


extended
a. Count worksheets warehouse
b. Schedules manageme
c. Adjustment records nt cycle
d. Barcode and RFID based cycle counting count
feature

34. Handle cycle counting a specific location for an item, without blocking other 4 – SAP
locations with that item from completing inventory transactions. extended
warehouse
manageme
nt cycle
count
feature

EQI Ltd. 59 DRAFT


FUNCTIONAL REQUIREMENTS

G. Inventory Control and Cycle Counting Response

The system should provide the ability to:

35. Allow jumping to move transactions while performing cycle counts. 4 – SAP
extended
warehouse
manageme
nt cycle
count
feature

36. Support physical inventories and cycle counting using:

a. Blank tags (for independent count) 4 – SAP


b. System-generated tags (for verification counts) extended
c. Scanned / Tag-less counts for serialized and non-serialized items warehouse
d. RFID readers for serially controlled products manageme
nt

37. “Hold” physical counts for editing and validation before the final update of 4 – SAP
the perpetual inventory. During this hold period, the systems should be able extended
to accept other inventory transactions. warehouse
manageme
nt cycle
count
feature

EQI Ltd. 60 DRAFT


FUNCTIONAL REQUIREMENTS

H. Warehouse Management and Freight Management Response

The system should provide the ability to:

H. Warehouse Management and Freight Management

1. Predefine valid inventory locations within warehouses 5

2. Generate labels for shipments as received, referencing purchase order data or 4–


other information as necessary. embedded
warehouse
manageme
nt Labels

3. Allow multiple locations for the same item in the same warehouse. 5

4. Have primary picking location by item and multiple secondary locations as 4–


needed within a warehouse. Warehouse
manageme
nt picking
from
storage
locations

5. Support identifying storage attributes for locations with corresponding item 4–


attributes for limiting put-away locations. (ex. locations tagged ‘Outside’ not Warehouse
valid for ‘Box’ items) manageme
nt putaway
strategies

6. Allow designating storage locations as supporting fixed items, dynamic 4 – e-


items, or multiple items. Warehouse
manageme
nt storage
types

EQI Ltd. 61 DRAFT


FUNCTIONAL REQUIREMENTS

H. Warehouse Management and Freight Management Response

The system should provide the ability to:

7. Capture serial numbers for serially controlled parts for all inventory
transactions (production completion, distribution transfer in/out, PO receipt, 4 – e-
sales order shipment, returns, miscellaneous adjustments, etc.) warehouse
manageme
nt Serial
number
functionalit
y

8. Automate data collection (put away and pick functions) with handheld 4–
phones (Android/iOS) using their cameras as scanners extended
warehouse
manageme
nt mobile
functionalit
y

9. Support handheld barcode and RFID scanners for use in inventory receiving,
shipping, cycle counting, etc. If only specific scanners and RFID equipment
4–
are supported, please identify makes and models supported: extended
warehouse
_____________________________________________________________ manageme
_____________________________________________________________ nt RFID
functionalit
y

10. Interface with bar code printing equipment. Identify preferred/supported


4–
makes and models: extended
warehouse
_____________________________________________________________ manageme
_____________________________________________________________ nt bar code
functionalit
y

EQI Ltd. 62 DRAFT


FUNCTIONAL REQUIREMENTS

H. Warehouse Management and Freight Management Response

The system should provide the ability to:

11. Provide scanned confirmation of picked items using product label or serial 4- pick
number scan, including RFID code scans for serially controlled products. wave and
pick
confirmatio
n

12. Allow picking orders in any sequence. 4 – pick


wave
determinati
on

13. Allow over and under picking with operator alerts. 4–


Handling
unit and
packing
station
monitor
Freight Management

14. Support creation, transmission, printing, and re-printing of carrier BOL’s,


packing lists, manifests, and creation of Advanced Ship Notices (EDI and/or 4–
e-mail) with configuration for each customer’s required detail to be entered Transport
on each of these document. Allow automated notification to AR for invoice. Manageme
nt output
through
BRF rules

15. Landed Costs - assign AP costs for freight forwarding, shipment, and storage
to a Container, which will often be multiple invoices. Allocate these costs
based on part weight across multiple customers, parts, and order lines. 4- Actual
These freight forwarding costs become part of the costs carried in inventory shipment
(distribution orders) or assigned as freight costs (either billable or not) to the cost
sales orders.

16. Record sales order and distribution order freight/delivery charges using 4 – Actual
estimated or actual costs. shipment
cost

EQI Ltd. 63 DRAFT


FUNCTIONAL REQUIREMENTS

H. Warehouse Management and Freight Management Response

The system should provide the ability to:

17. Auto-match the shipper/BOL with AP invoice shipper/BOL to auto-assign 4 – Actual


freight costs to a shipment. shipment
cost to the
customer
invoice

18. Record and report carrier usage in total and by shipment type including 4 – Freight
freight class, customer charges, EQI costs, number of deliveries, and sales cost
dollars. determinati
on

EQI Ltd. 64 DRAFT


FUNCTIONAL REQUIREMENTS

I. Purchasing and Receiving Response

The system should provide the ability to:

I. Purchasing and Receiving

1. Support different Purchase Order types (Customer drop-ship, Customer direct


order, Stock replenishment, Blanket P.O., Cust-X Order, etc.) with different 5
order steps and rules for different P.O. types

2. Allow selecting specific default P.O. order types based on part, supplier, or 5
linked Sales Order type. Include the ability to select non-default order types
at P.O. entry. Support for the order types should include

a. Customer Order/Direct P.O. – customer S.O. linked to supplier P.O.


b. Customer Direct – customer shipped direct from the supplier (no
customer P.O.)
c. Blanket order flow – customer blanket P.O. with corresponding Supplier
blanket P.O. Releases orders triggered when the supplier blanket will
ship.
c. Return order flow
e. APQP / sample order flow – inspection steps and approvals required as
user defined points in the order flow

3. Allow inventory ownership and value to transfer to EQI based on a defined


order type and steps (inspection, departure, receiving, etc.) 4 – SAP
good issue
and good
receipt
functinality

4. Allow the following receiving transactions:


4 – SAP
a. Receipt to stock. material
b. Pre-receipt inspection required and forced based on vendor or item. movement
c. Receipt to inspection—Inventory visibility, but not included in available transaction,
to promise calculations. blocked or
d. Drop ship/direct to customer —paper receipt or no receipt required. unrestricted
g. Partial receipt (close short or allow multiple receipts, default based on inventory
order type).
h. Refused shipment.

EQI Ltd. 65 DRAFT


FUNCTIONAL REQUIREMENTS

I. Purchasing and Receiving Response

The system should provide the ability to:

5. Require a supplier to be both a certified supplier AND actively approved for


a specific part and revision before a purchase order can be issued to that 4–
supplier. Allow retracting supplier/part approval. interface
with vendor
through
Ariba.
Vendor
RFQ
process and
qualificatio
n.

6. Optionally combine multiple suggested purchase orders lines for one supplier 4–
into one purchase order line or split into multiple purchase order lines. purchasing
contract or
scheduling
agreement
with
vendors

7. Calculate total part weight and cube (as packaged/racked) for consolidated 4 – inbound
purchase orders to help identify multi-part container quantities transport
managemen
t

8. Recommend purchase orders based on inventory stock levels, sales forecast 4–


and inventory reorder points. (Include on-hand, open sales orders, Consumpti
distribution orders, open PO’s, forecasts and minimum safety stock for a on based
user-defined time period.) planning

9. Support a Purchasing Workbench for evaluating parts and PO requirements, 4–


including the ability to filter and support based on part due date, country, analytics
supplier, customer service rep, engineer, and other factors. for
shortages
and Insight
based
reactions

EQI Ltd. 66 DRAFT


FUNCTIONAL REQUIREMENTS

I. Purchasing and Receiving Response

The system should provide the ability to:

10. For parts with multiple approved suppliers, recommend a PO and supplier
based on: Country, Price, Quality (Supplier Scorecard), Volume, and Lead-
time, foundry capacity. Allow dynamic filtering of orders using these 4 – SAP
parameters plus due-dates to accept PO recommendations or change PO rules and
dates, quantities, and suppliers. Allow splitting PO’s across multiple inbuilt
suppliers. steps for
source
selection

11. Allow assigning recommended PO’s to Purchase Order Requisitions and 5 – SAP
assigning them to EQI supply team members for additional sourcing analysis. purchasing
PO Requisitions should be restricted to assigned supply team member group and
(procurement groups). Purchasing
organizatio
n

12. EQI’s supply side team members must be restricted from viewing sales, 5–
customer pricing, margin analysis, or other customer side pricing and authorizatio
profitability data. n based
controls

13. Assign supplier calendars/schedules (either directly or through work centers)


to support properly time-phasing inventory plans and recommended orders to 4–
work around the Chinese New Year. assignment
of factory
calendar
and define
working
hours

14. Easily create purchase order documents from suggested purchase orders. 4–
purchase
requisitions
to purchase
orders

EQI Ltd. 67 DRAFT


FUNCTIONAL REQUIREMENTS

I. Purchasing and Receiving Response

The system should provide the ability to:

15. Support blanket purchase orders with multiple releases and time-phased 4–
releases with unique due dates and quantities. purchase
contracts or
scheduling
agreements

16. Track cumulative receipts/requisitions of product from a supplier against a 4- Delivery


blanket purchase order. schedules
for
purchasing
contracts or
scheduling
agreement

17. Produce schedules for suppliers, showing the open quantities and delivery 4 – MPR
dates. generated
delivery
schedules
and
purchase
requisition

18. Generate BOL/manifest and customer documents for Direct/drop-ship 4 – 3PL


customer shipments process

19. Support over and under receiving with default tolerances by supplier and/or 5
part.

20. Automatically fill backorders when new stock is received and inspected, 4–
produce shipping documents for required quantities. Backorder
strategies

21. Support serial number tracking for serially controlled items. 4 – serial
number
control

22. Support easy conversion of requisitions into purchase orders. 5

EQI Ltd. 68 DRAFT


FUNCTIONAL REQUIREMENTS

I. Purchasing and Receiving Response

The system should provide the ability to:

23. Use a table for relating either inventory part numbers or inventory locations 4 – material
to general ledger accounts for purchased items. and
universal
ledger

24. Require a general ledger account on all purchase orders or requisitions. 4 – material
and
universal
ledger4 –
material
and
universal
ledger

25. Assign a customer PO/blanket PO number to a purchase requisition/order 2 – medium


created from customer demand. complexity

26. Generate a material price variance prior to purchase order closing (i.e., with 2 – medium
each receipt). complexity

27. Allow MRO / non-inventory purchase items (no item numbers) for special
orders, samples, tooling, maintenance/rework, administrative items, capital 4-
projects, service contracts, etc.). purchasing
non stock
itsms

28. Provide purchase status inquiries/reports, including:

a. Open PO recommendations with status: planned, firm planned, etc. 4-


b. Requisition numbers related to purchase order Embedded
c. Open purchase orders analytics
d. Blanket / partial PO’s
e. Completed orders
f. Closed orders
g. Project number

EQI Ltd. 69 DRAFT


FUNCTIONAL REQUIREMENTS

I. Purchasing and Receiving Response

The system should provide the ability to:

29. PO Status inquiry (at summary level) with both units and dollar values. 4-
Embedded
analytics

30. Allow changes to quantities or costs on items already received. 4- based on


tolerance
limits
defined
during
Invoice
verification

31. Maintain primary suppliers, with unlimited alternate suppliers for each 5
purchased item.

32. Maintain primary supplier, with ability to “spread” an order to multiple 5


vendors or “rotate” order through approved suppliers.

33. Maintain supplier score cards and performance analysis:

a. On time completions 4–
b. Non-conforming quantities and ppm Embedded
b. Rework/return units and dollars vs. total purchased units and dollars Analytics

34. Assign buyer/PCL to supplier/part and maintain performance analysis data


including: 4–
Embedded
a. Purchases by buyer Analytics
b. Number of suppliers being purchased from
c. Number of products being managed and total value of purchases YTD

35. Maintain unlimited notes associated with a supplier. 4- test in


vendor
master

36. Maintain unlimited notes associated with a supplier/part number combo 4 – text in
the product
master

EQI Ltd. 70 DRAFT


FUNCTIONAL REQUIREMENTS

I. Purchasing and Receiving Response

The system should provide the ability to:

37. Maintain unlimited notes associated to the PO and PO line-item 4 – text in


the
purchase
order
header and
item

38. Display historical information (usage, purchases, pricing, fill rate) by 4-


supplier. embedded
analytics

39. Produce reasonability check on pricing, quantities and due dates. 4-


embedded
analytics

40. Maintain in-depth PO pricing history with affective dates by part 2–


analytics
medium
complexity

41. View all parts purchased from a supplier, by value or quantity 4–


Embedded
Analytics

42. View primary and alternate suppliers for a part, showing supplier approval 5- source of
status for a part. supply
determinati
on

43. Support pricing with quantity breaks and dollar volume breaks. 2 – medium
complexity

44. All supplier price changes and pricing tables to be entered with effectivity 4 – pricing
dates. scheme
validity
dates

EQI Ltd. 71 DRAFT


FUNCTIONAL REQUIREMENTS

I. Purchasing and Receiving Response

The system should provide the ability to:

45. Physical container/ASN based receiving and Transfers with explosion 4 – ASN
through to receive all purchase orders based on container details. based
goods
receipt

46. Support quality inspection test setup and data capture based on item quality 4 – Quality
requirements. (dimensions, diameter, weight, visual inspections) Manageme
nt

47. Handle automatic e-mailing of purchase order to suppliers 4 – Output


schema

48. Handle unit of measure conversions, for purchasing, receiving and issuing
items:

a. Buy in one quantity, stock in another, sell in another 4–


b. Buy in eaches, racks, boxes, containers Handling
c. Sell in eaches, racks, boxes, containers unit

49. Copy existing purchase orders into the new purchase orders. 5

50. Highlight changes on amended purchase orders. 4 – change


log

51. Report accumulated supplier purchases by part & revision. Display by month 4–
and year-to-date. Embedded
analytics

52. Allow drop shipment purchase orders. Link drop-ship addresses directly to 4 – Drop
original sales orders and provide notifications to purchasing of sales order shipment
changes. third party
purchase
orders

53. Generate projected cash commitments, placed into planned accounting


periods.

EQI Ltd. 72 DRAFT


FUNCTIONAL REQUIREMENTS

I. Purchasing and Receiving Response

The system should provide the ability to:

54. Process returns to suppliers including notification to accounts payable on 4 – SAP


pending invoice credits. vendor
return
process
Supplier PO Portal

55. Supplier PO Portal - secure web access, restricted to each supplier’s assigned 4 – SAP
PO’s (view or update determined for each login). Access EQI’s open PO Ariba based
quantities, planned departure dates, purchase/technical specifications and vendor
drawings… portal
a. Notify suppliers via e-mail as new PO’s are assigned or existing PO’s are
adjusted. Provide part, quantity, and date details sufficient for PO review and
acceptance.
b. Require suppliers to Acknowledge PO lines online, either as issued or
with proposed changes to planned dates or quantities, which triggers
workflow for review and acceptance).
c. Provide PO numbers and final documents for the PO only after the PO
has been acknowledged by the supplier.
d. Ability to submit completions/status updates on assigned PO’s / Outside
Processing orders.
e. Assign PO line quantities to a planned container
f. Revise planned departure dates – workflow for PCL/buyer approval
g. Revise planned quantity – workflow for PCL/buyer approval
h. Generate part & customer specific labeling and paperwork

56. Supplier PO portal – Enable customized workflows around portal activities, 4 – SAP
including the ability for internal EQI employees to review and accept or Ariba based
reject a supplier’s proposed changes, retract a PO, or place all activities for a RFQ
PO on a “Hold”, including preventing the supplier from generating process
paperwork, assigning a PO, or updating quantities.

Supplier RFQ & Portal

EQI Ltd. 73 DRAFT


FUNCTIONAL REQUIREMENTS

I. Purchasing and Receiving Response

The system should provide the ability to:

57. Search/sort/select Supplier RFQ recipients from existing and potential 4 – SAP
suppliers based on geography, supplier capabilities, part attributes (volume, Ariba based
weight capacity, CWT), quality scorecards, markets, and past RFQ history. vendor
qualificatio
n

58. Support EQI defined supplier capabilities/skills codes/operations that allow 4 – SAP
matching potential suppliers to key RFQ attributes. Assign multiple supplier Ariba based
types to each supplier representing their capabilities (ex. foundry, machining, vendor
VMI/warehouse, finish/painting, freight/shipping) qualificatio
n

59. Support translating technical and part specifications into local languages,
allowing both original and secondary languages to be produced in Supplier 4–
RFQ packages. RFQ output
control in
multiple
languages

60. Generate RFQ packages with e-mail notification to selected recipients. 4 – SAP
Bundle multiple RFQ lines (related parts) to match Customer RFQ part Ariba
bundles. Ability to pass recipients a link to the Supplier RFQ Portal with
secure access for online review of quote requirements.

61. Generate RFQ specifications based on component part or services required, 4 – SAP
allowing multiple supplier types to be used to generate multiple Supplier Ariba
RFQ’s for the same part or part package. (ex. One RFQ package to foundries
for sourcing the casting and additional RFQ packages to machining,
assembly, painting/finishing, or shipping suppliers.)

62. RFQ Supplier Portal - Access for suppliers to complete responses online,
including pricing, capacity, attaching any support documents, or reason for 4–
not quoting. Optionally allow suppliers to be e-mailed or download templates SAP
to complete the supplier RFQ details. Ariba

EQI Ltd. 74 DRAFT


FUNCTIONAL REQUIREMENTS

I. Purchasing and Receiving Response

The system should provide the ability to:

63. RFQ Supplier Portal - Allow suppliers to dialog with the EQI team members
through the portal in order to ask questions and clarify requirements. Support 4–
both EQI Sales and Supply team members seeing and responding to SAP
inquiries. Ariba

64. RFQ Supplier Portal – Allow EQI defined questions to be asked of suppliers
based on the supplier type and edited prior to issuing the RFQ to suppliers. 4 – SAP
This will be leveraged to assure suppliers positively affirm key elements of Ariba
the Technical Specification and RFQ requirements.

65. RFQ Supplier Portal - Track suppliers portal usage by RFQ, identifying
which assigned suppliers have reviewed or downloaded an RFQ package, 4 – SAP
which suppliers have asked questions, and which suppliers have completed a Ariba
response.

66. Review Supplier RFQ Responses – Allow EQI supply team and customer
team members to review responses and identify preferred responses based on:
optimum price, quantity, quality scorecard, completeness of required 4 – SAP
responses. Ariba

67. Review Supplier RFQ Responses - The ability to attach the RFQ responses to 4 – SAP
a part, flagging the preferred response, and convert a response into a purchase Ariba
contract, including…
a. Split quantities and award one RFQ to multiple vendors.
b. Identify winning RFQ and begin supplier approval process (new
part/supplier)
c. Identify winning RFQ and update part/supplier pricing (existing
part/supplier)

EQI Ltd. 75 DRAFT


FUNCTIONAL REQUIREMENTS

J. Material Requirements Planning Response

The system should provide the ability to:

J. Material Requirements Planning

1. Peg recommended order requirements to demand on a single level or 5


through all levels (through to the top-level plan/schedule for a part).

2. Ignore non-nettable inventory locations in reviewing inventory availability. 5

3. Consider engineering change effectivity dates. 5

4. Allow variable planning horizons:

a. Week 5
b. Month
c. Annual
d. Quarterly
e. Rolling 12 months

5. Generate requirements and planned orders based on:

a. Net demand 5
b. Reorder points
c. Safety stocks
d. Min/Max
e. Forecast

6. Recognize scheduled receipts on blanket purchase orders. 5

7. Allow application of dynamic planning time fences to support planning and 4 – PP/ DS
firming orders only within the defined planning window.

8. Generate action reports by entity, warehouse, CSL/planner:

a. Production schedule change 4 – Analytics


b. Recommend purchase order release insight driven
c. Recommend rescheduling/canceling purchase orders actions
d. Warn of shortages within time fence
e. Warn of overstock situation

EQI Ltd. 76 DRAFT


FUNCTIONAL REQUIREMENTS

J. Material Requirements Planning Response

The system should provide the ability to:

9. Allow the user to set custom nervousness parameters governing action 4 – SAP
messages to eliminate recommended action messages/re-planning warnings Monitor
for insignificant changes (ex. less than 2 weeks, less than 2 units, etc.). shortages
app

10. Recognize inventory lot sizing and order multiples but provide visibility to 5
exposed (uncommitted) amounts.

11. Generate and release purchase orders / work orders based on planned
orders within a user defined time period or item specific time fence. 5

12. Generate recommendations against blanket purchase orders 4 – delivery


schedules
generated
during MRP
runs

13. Establish a PO or work order directly linked to a sales order for parts 5 – MRP
without a forecast or inventory plan. strategy
Make to
order

14. Leverage supplier/work center calendars for planning to include supplier 2 – medium
availability in recommended order planning. complexity

EQI Ltd. 77 DRAFT


FUNCTIONAL REQUIREMENTS

K. Part Costing and Cost Management Response

The system should provide the ability to:

K. Part Costing and Cost Management

1. Roll up part/work order costs through the entry process on-line, looking
through any specific operation and at the parts top-level. This would show all
part and material costs (foundry, freight, painting, storage, tariffs, etc.) to
allow reviewing a parts cost at any phase in the process.

2. Perform individual product cost roll-up live through multiple levels of the bill
of material and routing (generation of costs on new products and ECN’s).

3. Roll-up costs for products using alternate bills of material, alternate routings,
and alternate suppliers to compare costs of current vs. pending changes.

4. Utilize statistical accounts in the general ledger for cost allocation purposes.

Produce an Inventory Movement Report for inventory cost analysis. View…


a. Inventory adjustments for freight cost assignment into inventory value
b. Price change impacts, isolating currency conversions

5. Explode the master schedule at planned unit sales dollars and standard costs
to aid in financial forecasting. Should be by entity, customer, part number,
material and/or market.

6. Explode sales forecasts by planned unit sales dollars and standard costs to aid
in financial forecasting. Should be by entity, customer, part number, material
and/or market.

7. Reconcile inventory by part in both units and value showing:

a. Beginning amounts
b. Received
c. Applied freight costs increasing value (same quantity)
d. Shipped / distribution transferred
e. Issued/WIP
f. Exchange rate changes
g. Miscellaneous inventory adjustments
h. Other transactions
i. Ending amounts

EQI Ltd. 78 DRAFT


FUNCTIONAL REQUIREMENTS

K. Part Costing and Cost Management Response

The system should provide the ability to:

8. Support the following types of costs at the part level and maintain the
integrity of cost elements through the cost roll-up process:

a. Average
b. Actual
c. Overhead
d. Last actual cost
e. Estimated

9. Extrapolate and analyze cost changes based on exchange rate fluctuations to


evaluate impact and choose to apply as inventory price adjustments

10. Review pending cost changes and analyze based on…


a. Planned/projected exchange rate fluctuations
b. Future/projected supplier pricing changes. Through price lists with future
dates or dynamically entered percentage increases.

11. Revalue inventory for new average cost and provide changes at part level and
through cost roll-ups.

12. Manage and track HTS tariff costs, freight costs, and other similar costs.
Allow them to be treated uniquely for each part, according to customer
requirements…
a. Embedded and rolled up into the part cost and hidden from customers
b. Presented as an external cost or surcharge and “added” as a dependent
line or sub-component that is presented on the sales order and invoice.

13. Regardless of which way HTS tariff costs, freight costs, etc. are presented to
customers, allow them to be searched for and reviewed as a group so that
tariffs and similar costs can be identified and analyzed based on selected
customers, product types, part numbers, source countries, etc.

EQI Ltd. 79 DRAFT


FUNCTIONAL REQUIREMENTS

K. Part Costing and Cost Management Response

The system should provide the ability to:

14. Produce a history for materials, showing:

a. Supplier
b. Part
c. Description
d. Date shipped, received
e. Serial number
f. Purchase order number
g. Price per unit
h. Invoice number
i. Quantity received
j. Extended dollar amount
k. Where used and when used
l. HTS code

15. Utilize statistical accounts in the general ledger for cost allocation purposes.

Produce an Inventory Movement Report for inventory cost analysis. View…


a. Inventory adjustments for freight cost assignment into inventory value
b. Price change impacts, isolating currency conversions

EQI Ltd. 80 DRAFT


FUNCTIONAL REQUIREMENTS

L. General Ledger, Financial Reporting and Budgeting Response

The system should provide the ability to:

L. General Ledger, Financial Reporting and Budgeting


1.
Download/upload journal entries, subledgers and general ledger account
balances to/from a PC spreadsheet (to support entering actual and budget
entries, preparing schedules and providing off-line analysis).

2. Download/upload prior years’ information for reporting purposes.

3. Support consolidated and individual reporting for multiple companies, with


multiple divisions and locations within companies.

4. Allow user definition of account structure and length:

a. Company/division (multiple)
b. Cost center (location)
c. Department
d. Market
e. Natural account What does this mean?
f. Subaccount
g. Project (optional)

5. Map accounts from other related companies with different structures to


consolidate results.

6. Manage multiple currencies, supporting exchange rate translation and


consolidated values based on active exchange rate.

7. Add and delete (or archive/deactivate) general ledger accounts to support


changes in organization, new product lines, major capital projects and new
financing or debt structure. Track date account change was made.

8. Report financial information by natural accounts across departments within a


broad financial statement category,

9. Customize financial report formats:


a. Accounts included in report.
b. Sequence of accounts in report.
c. Ability to create non-posting total accounts and define specific accounts
that will accumulate into the total accounts (useful for cross-entity
consolidations, etc.).

EQI Ltd. 81 DRAFT


FUNCTIONAL REQUIREMENTS

L. General Ledger, Financial Reporting and Budgeting Response

The system should provide the ability to:

10. Produce financial reports for selected time periods, such as the latest 4
months, year to date, etc..

11. Support generating the following monthly reports:


a. Income statement for: Consolidated company, Entity, Division
b. Income statements for: specific customers, part number, and market
c. Balance sheet
d. Statement of cash flows
e. Budget versus actual reports by company, entity, market, location,
department and class of account

12. Present financial statements containing any or all of the following columns of
information on one report:

a. Current month actual dollar amount


b. Current month variance dollar amount
c. Current month planned dollar amount
d. Same month from prior year actual dollar amount
e. Year-to-date actual dollar amount
f. Year-to-date variance dollar amount
g. Year-to-date planned dollar amount
h. Prior year’s year-to-date actual dollar amount
i. Current month actual percent of sales
j. Current month planned percent of sales
k. Same month from prior year percent of sales
l. Year-to-date actual percent of sales
m. Year-to-date planned percent of sales
n. Year-to-date prior year percent of sales
o. Annual planned dollar amount
p. Annual planned percent of sales
q. Prior year actual dollar amount
r. Prior year percent of sales

13. Support a 13-period fiscal calendar or other user-defined fiscal calendar that
is different from a monthly calendar.

14. Allow different calendars for different companies within the same
system/database.

EQI Ltd. 82 DRAFT


FUNCTIONAL REQUIREMENTS

L. General Ledger, Financial Reporting and Budgeting Response

The system should provide the ability to:

15. Provide a repository within the general ledger for retention of several
versions (e.g., original and revised) of a financial budget, which is posted at
the same level as expenses and revenue to be posted during the execution of
that budget.

16. Provide ability to produce a monthly flexible budget using drivers at the
department and natural account level:

a. Drive flexible budget from amounts in other financial accounts


b. Drive flexible budget from amounts in statistical accounts

17. Maintain control over budget information by restricting users’ access only to
appropriate accounts and budget revisions for “what-if?” analysis and budget
development.

18. Provide actual versus budget reports at the lowest level of detail maintained
in the general ledger (i.e., project or account detail).

19. Generate budget worksheets that list last year’s budget and actual, selected
current budget and year-to-date actuals plus projected actuals through year
end and space for user’s input estimate of next year’s budget.

20. Provide alternative methods of budget spreading:

a. Enter an annual amount and have it spread evenly across all months.

b. Enter an annual amount and have it spread based upon another account’s
spread (possibly a posting account, a total account or a statistical
account).

c. % of another account.

d. Allow the user to enter individual month amounts.

e. Enter amount based on net of two other accounts.

21. Maintain statistical or other nonfinancial accounts for product volumes,


processing times or other user-defined statistics for products, departments,
projects or activities.

EQI Ltd. 83 DRAFT


FUNCTIONAL REQUIREMENTS

L. General Ledger, Financial Reporting and Budgeting Response

The system should provide the ability to:

22. Allow use of statistical accounts to record or budget activity levels.

23. Download/upload statistical account information to/from a PC spreadsheet.

24. Be integrated with all appropriate subsystems and receive transactions in


detail or in summary at the discretion of the user.

25. Enter transactions for two periods simultaneously (current period and period
end adjustments for prior period).

26. Keep the old year and new year books open simultaneously to make accruals
and adjustments to close out the old year.

27. Handle allocation entries based on user specified amounts, dollar account
balances, and statistical account balances.

28. Support step down allocation calculations.

29. Provide a financial accounting report writer in addition to the system wide
analytics and reporting solution.

30. Integrate with payroll provider/software so payroll entries can be uploaded


into general ledger. Is Paychex, the current provider, supported?

31. Financial dashboard with current snapshot of KPI’s (month-to-date sales,


inventory, cash balances, actions such as items requiring approval, etc.).

EQI Ltd. 84 DRAFT


FUNCTIONAL REQUIREMENTS

M. Accounts Payable Response

The system should provide the ability to:

M. Accounts Payable

1. Support multiple companies and divisions.

2. Support multiple bank accounts within a company.

3. Allow vendors to be assigned a primary bank account, with user ability to


override the bank account used for a specific transaction.

4. Record wire transfers to suppliers and appropriately update accounts payable


records.

5. Maintain a hierarchy of payment terms:

a. System default terms to use if not otherwise specified


b. Vendor specific terms
c. Transaction specific terms

6. Change or override payment terms previously assigned to a vendor or a


specific transaction.

7. Verify account numbers for validity against the general ledger.

8. Produce 1099 forms and reports of these for appropriate vendors.

9. Generate 1099 electronic filing documents.

10. Override payment due dates and discount dates to provide full user control
over a transaction.

11. Support matching without receipt for direct/drop shipments, based on vendor
and purchase order flags. This should allow an AP match based on P.O., AP
Invoice, and a related customer Sales Order.

12. Trigger customer invoice review upon receipt of vendor’s invoice for
direct/drop shipments, including a mandatory review step.

13. Store and maintain extensive free-form comments and notes on a vendor.

14. Store and maintain extensive free-form comments and notes on a transaction.

EQI Ltd. 85 DRAFT


FUNCTIONAL REQUIREMENTS

M. Accounts Payable Response

The system should provide the ability to:

15. Require entry of a purchase order number for vendors based on a user
defined dollar amount, including allowing vendor specific dollar thresholds.

16. Optionally by vendor master flag, combine payments to the same vendor
location, with details on the remittance advice.

17. View payments made by purchase order.

18. Maintain the purchase order and receiver number (which was entered at the
time of receipt) on invoice detail file maintained in the system.

19. Allow entry of credit memos to be applied against open invoices and/or
subsequent payments.

20. Distribute vendor invoice amount to one or more purchase order line items
and/or one or more general ledger accounts.

21. Allow vendor invoice amounts to be split across multiple companies and
divisions.

22. Record inventory receipts to a vouchers payable account and when invoice is
received, reduce vouchers payable and record accounts payable.

23. Perform an automated matching function comparing quantity and price by


item on purchase order, receiver and invoice.

24. Calculate and report discrepancies between purchase order prices and invoice
prices to purchasing.

25. Provide for electronic payment authorization capability with user-defined


limits.

26. Authorize electronic (EFT) payment to vendors:

a. Interface with bank software for transfer of funds


b. Interface with GL and post accounts.
c. Interface with AP and update invoice payment

27. Record payments made by wire transfer, with posting to general ledger.

EQI Ltd. 86 DRAFT


FUNCTIONAL REQUIREMENTS

M. Accounts Payable Response

The system should provide the ability to:

28. Support an electronic bank interface for check clearing authorizations


including amounts, allowing the bank to offer check control processing.

29. Allow entry of manually written checks entered into accounts payable
system, with posting to general ledger.

30. Report open invoices by user-defined future time periods (week, month).

31. Select invoices to be paid in any given check run based on due date.

32. Select individual invoices to be paid regardless of due date.

33. Select invoices to be paid by specified bank account.

34. Select invoices for payment based on user-defined selection criteria.

35. Support multiple remit-to addresses for a vendor.

36. Generate a report of payables to be paid according to due dates or user


defined dates.

37. Restrict check printing to authorized printers only.

38. Print checks in multiple authorized locations.

39. Print checks for invoices selected for payment.

40. Produce a check detail report for payment details exceeding a check stub.

41. Print a check register indicating the distribution of charges to general ledger
accounts.

42. Calculate and take discounts, when applicable, for invoices marked for
payment.

43. Optionally allow for expired discounts to be taken using parameters for the
number of days past discount expiration.

44. Provide report of discounts not taken.

EQI Ltd. 87 DRAFT


FUNCTIONAL REQUIREMENTS

M. Accounts Payable Response

The system should provide the ability to:

45. Allow user override to take or not take discounts, even if beyond the discount
period.

46. Distribute vendor credit memos to one or more open invoices and/or one or
more general ledger accounts.

47. Accrue vendor credit memo information prior to receiving credit memo from
a vendor.

48. Void checks which are identified in the system as having been printed, with
the option of voiding or not voiding the associated invoice.

49. Generate a list of outstanding checks by bank account number to support


bank statement reconciliation.

50. Interface electronically with bank for recording checks that have cleared the
bank.

51. Generate an Open Payables report based on user-defined time periods, sorted
by:

a. Bank account
b. Vendor
c. Due date
d. General ledger account number
e. Currency

52. Prepare an aged accounts payable report according to user-defined time


periods.

53. Support reconciling payables to vendor-provided statements by listing


invoices according to one or more criteria, such as:

a. Invoice number
b. Statuses: approved, on hold, paid, canceled
c. Invoice date
d. Received date
e. Due date
f. Pay date
g. Amount paid

EQI Ltd. 88 DRAFT


FUNCTIONAL REQUIREMENTS

M. Accounts Payable Response

The system should provide the ability to:

54. Generate closing entries for posting to general ledger at the end of each
accounting period.

55. Generate the following reports monthly and on user-defined periods:

a. Check register
b. Open payables report
c. Aged accounts payable report

56. Report “open receivers” (receivers for which materials have been received
but not yet matched to a vendor’s invoice).

57. Associate all invoices related to a capital improvement project to a specific


project number.

58. Generate a report of all credit memos received by vendor.

59. Create recurring payment vouchers scheduled for payment in the future and
associated with future accounting periods.

60. Enter a hold on a vendor or transaction to prevent payment.

61. Access supplier accounts by name or account/vendor number.

62. Handle inter-company payables.

63. Support international payment wire transfers and currency conversions.

64. Provide a warning for duplicate invoice numbers entered.

65. Provide a duplicate payment warning for identical dollar amount entries for
the same vendor. Optionally disable this warning for a vendor.

66. Generate a report of invoices paid that tracks actual invoice terms and dates
paid.

67. Generate discounts taken per vendor, per user-defined period.

68. Produce detailed reports of expired discounts that were taken, by vendor for a
user defined period.

EQI Ltd. 89 DRAFT


FUNCTIONAL REQUIREMENTS

M. Accounts Payable Response

The system should provide the ability to:

69. Permit invoice entry for current period transactions prior to closing a
previous accounting period.

70. Modify transactions in the prior month. Require authorization if the month is
closed and have the adjustments posted through the current month.

71. Allow for restart at any point in the check-writing run.

72. Process recurring fixed payments with multi-divisional account split


mapping.

73. Ability to reverse an invoice along with the associated general ledger
postings (even if multiple accounts).

74. Provide a method for looking up a container, by container number or a


transaction related to that container. From this see an inquiry or report with
all the related transactions for the container and their related document
numbers and status. (ex. Look up container and see Sales Orders, Invoices,
Purchase Orders, and Receivers related to the container.)

EQI Ltd. 90 DRAFT


FUNCTIONAL REQUIREMENTS

N. Fixed Assets Response

The system should provide the ability to:

N. Fixed Assets

1. Integrate directly with accounts payable and recognize project numbers in


accounts payable used for assigning fixed asset purchases to asset numbers.

2. Integrate directly with general ledger for recording additions, retirements,


transfers and depreciation.

3. Maintain unlimited sets of depreciation records for tax purposes


corresponding to all federal tax schedules and computations.

4. Maintain book depreciation records using straight-line, declining balance and


multiple user-defined tax calculations.

5. Maintain an asset inventory by entity, location, etc.

6. Maintain detailed asset information including information such as:

a. Asset number
b. Source vendor
c. Acquisition date
d. Description
e. Information on all vendors and invoices associated with the asset
f. Original cost
g. Extensive notes
h. Asset class
i. Depreciation life

7. Classify spare assets at locations and maintain a cross-location inventory of


these assets that are available for use.

8. Maintain templates of standard asset configurations, and track activity


(primarily purchases) in these groups of assets.

9. Support property tax reporting by location, noting asset amounts by year


purchased.

10. Transfer assets between locations, with the depreciation records transferring
with the asset.

EQI Ltd. 91 DRAFT


FUNCTIONAL REQUIREMENTS

N. Fixed Assets Response

The system should provide the ability to:

11. Perform mass maintenance on groups of assets (such as transferring many or


all assets from one location to another).

12. Allocate one purchase to multiple fixed assets in multiple locations.

13. Recognize the quantity of an asset purchased.

14. Allow partial sales or dispositions of assets.

15. Easily access asset information using inquiry and report-writing tools.

16. Forecast depreciation amounts for the current and future years.

17. Associate all invoices related to a capital improvement project to a specific


project number.

18. Generate a report of payments per project, per user-defined period.

19. Identify asset location within a division, department and work center for
automatically distributing monthly depreciation expenses.

20. Forecast depreciation expense for rolling 6 quarters and next 3 years.

EQI Ltd. 92 DRAFT


IV. VENDOR PROFILE

Please provide the following information about your company. If more than one vendor software
package is recommended to meet the needs defined in the RFP or if ongoing support would be
provided by another company, please complete a vendor profile for each company.

1. Number of years in business under present name: _______________________________

2. Parent company, if applicable: ______________________________________________

3. Location of main head quarters: _____________________________________________

4. Phone number: __________________________________________________________

5. Location of nearest branch office: ___________________________________________

6. Number of employees:

a. For telephone support: _________________________________________________

b. For user training: _____________________________________________________

c. For customization: ____________________________________________________

d. For customer account management:

Other: ______________________________________________________________

e. Total: ______________________________________________________________

7. Phone number: __________________________________________________________

8. Total number of employees: ________________________________________________

9. Total number of customer support employees: _________________________________

a. For telephone support: _________________________________________________

b. For user training: _____________________________________________________

c. For customization: ____________________________________________________

93
d. For customer account management: _______________________________________

Other: ______________________________________________________________

e. Total: ______________________________________________________________

10. If your company sells multiple software packages or product lines, please list products
and other services your company offers:

Products/Services Percent of Total Dollars in Sales

11. Describe the integration of the various products with the primary software package.
Describe responsibilities of related third-party software suppliers and primary contacts for
the customer:

12. Indicate the dollars in sales for the proposed system, and total corporate dollars in sales
for the past three years:

Year Proposed System Total Sales

13. Indicate the annual budget for product research and development: __________________

14. What is the annual cost for a software maintenance agreement? (Include information
regarding the support options you offer.) _______________________________________

a. During what hours do you provide telephone support? ________________________

b. What is your staffing level for telephone support for the proposed system? _______

94
c. What is the standard billing rate for custom programming services? _____________

d. What is the standard billing rate for on-site training and consulting? (Please attach a
rate schedule which summarizes all your current hourly rates) __________________

15. Total number of customers currently using the proposed system: __________________

16. Number of similar companies (industrial distributors) using the proposed system:
________________________________________________________________________
________________________________________________________________________

17. Total installed customer base for all products and services offered: __________________

18. What is the target market for this product?

________________________________________________________________________
________________________________________________________________________

19. Please attach copies of your audited financial statements for the most recent past two years.
This is necessary in order to be considered further for this project.

20. If you utilize third-party system integrators, please list your preferred partners for this
project:

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

21. a. What is the total number of customers (not users) who have purchased this package?
_____________________________________________________________________

b. How many of those are still using the package? ______________________________

c. How many are still on support? ___________________________________________

95
V. APPLICATION PROFILE

Please answer the following questions regarding the proposed application package. If more than
one SaaS package is recommended to meet the needs defined in this RFP, please complete a
package profile for each application. Your responses in this section should apply only to the
proposed system.

1. Date of first release under current operating environment: _________________________

2. Last major release date: ____________________________________________________

3. Last release version number: ________________________________________________

4. Next planned release date: __________________________________________________

5. Next release version number: ________________________________________________

6. Frequency of:

Major releases: ___________________________________________________________

Minor releases: ___________________________________________________________

7. Programming language: ____________________________________________________

or application tools: _______________________________________________________

8. Native operating environment:

(a) Server Hardware/OS: __________________________________________________


____________________________________________________________________

(b) Client Hardware/OS: __________________________________________________


____________________________________________________________________

9. Did you translate the software from the previous environment or rewrite it? ___________

10. Server Database management system: _________________________________________

11. Client Database management system: _________________________________________

12. GUI: ___________________________________________________________________

13. Network support: _________________________________________________________

96
14. Server development tools: __________________________________________________

15. Client development tools: (Please attach information on the conversion/migration tools
available.) _______________________________________________________________

16. Warranty period (included in purchase price): __________________________________

17. Existence of national users’ group: Yes No

Contact: ________________________________________________________________

Location: _______________________________________________________________

18. Existence of local users’ group: Yes No

Contact: ________________________________________________________________

Location: _______________________________________________________________

19. Based on your experience with similar companies, provide the average length of time
required to implement the system (e.g., 3 – 6 months). Please provide a best case and worst
case scenario.

Best: ___________________________________________________________________

Worst: __________________________________________________________________

20. Estimate the number of implementation consulting and training days recommended for a
successful implementation: _________________________________________________

Implementation consulting: _________________________________________________

Training (user and information services): ______________________________________

21. Additional modules available (not part of proposed solution):

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

97
VI. INSTALLED CUSTOMERS

Please attach a list of at least three installed customers who are using the proposed solution on the
same SaaS environment. These companies will be contacted as references for vendors who make
the short list. These customers should be as similar to EQI as possible:

1. Name of company: _________________________________________________________

2. Location: _________________________________________________________________

3. Contact name and title: ______________________________________________________

4. Phone: ___________________________________________________________________

5. Business type: _____________________________________________________________

6. Date system was acquired: ___________________________________________________

7. Level of implementation (i.e., modules implemented, version number, date that customer
went live): ________________________________________________________________

98
VII. CONTRACTS

Please attach a copy of your company’s standard software license and support agreement(s),
integration services agreements, as well as any other required agreements, as appropriate.

99
VIII. COST SUMMARY

Annual Costs*

SaaS Applications Environment:


Production (# of users )
Development (# of users )
Office 365 Integration
Application development tools
Backup and recovery costs (if beyond other SaaS costs)
Analytics & Reporting Tools (# of users ____)
Performance monitoring software
Total – SaaS Applications Environment

SaaS Application software:


Number of Users: ____ (all modules)
Sales Forecasting
Order Management
Sales Analysis
Invoicing, Accounts Receivable, Credit Management
Engineering
Inventory Control
Warehouse and Freight Management (# of users ___)
Purchasing and Receiving
Material Requirements Planning
Part Costing and Part Management
General Ledger, Financial Reporting, and Budgeting
Accounts Payable
Fixed Assets
Total SaaS Applications:

* If you have 1st year vs. on-going licensing alternatives you wish to present,
please duplicate this section

* You may choose to provide the costs estimate in your own proposal
format but please address all the identified cost elements above.

100
Implementation & One-time Costs*

Interface installation and/or development incremental costs:


Paychex payroll interface
EDI interface
Customer Portal customization
PO Portal customization
RFQ Portal customization
Warehouse management system
Forms Customizations (Invoice, PO, BOL, etc. …)
______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________
Other Interfaces / Customizations: ___________________
______________________________________________
______________________________________________
______________________________________________

Total interface & customization costs

Implementation & other one-time costs:


Installation & SaaS environment establishment
Roadmap & pre-implementation design
Implementation project management/consulting
Implementation – Phase #1 ___________________________
Implementation – Phase #2 ___________________________
Implementation – Phase #3 ___________________________
Data Migration & Conversion
User training
User procedures/processes documentation development
Source code
Total other one-time costs

Total initial costs

Annual Recurring Costs

Annual SaaS Costs (summary of above)___________________


SaaS Redundancy costs (show options)____________________
_________________________________________________
_________________________________________________
Other annual recurring costs (describe): __________________

101
_________________________________________________
_________________________________________________
_________________________________________________
Total annual recurring costs
Total First Year Costs

* If a detailed analysis can’t be performed, please provide a


range estimate, given the requirements listed in this RFP

* You may choose to provide the costs estimate in your own proposal
format but please address all the identified cost elements above.

102