Implementing
E-commerce Solutions
Presented to
UMSL e-Commerce Seminar
March 13 - 15, 2000
Process Flow
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Initial project
Scope change
Managing risk
Planning & design
Emerging opportunities
Initial Project
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Start up Internet pharmacy
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Not just selling drugs
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A great vision – No money
Selling medical alliance with the consumer
Source an accounting application
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Oracle compatible
Can be installed in 3 weeks
Scope Changes
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Accounting
Distribution
Fulfillment
Warehouse design
Flow racks
Inventory control
EDI
Process procedures
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Interim controller
Hardware sales
Network installation
Project management
 Interfaces
 Requirements
definition
Bar coding
Managing Risk
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Requirements definition process
Use experts
Complete project plan
Client expectations
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Can the software do this?
Keep the client informed
Follow up
Design Accuracy
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Review requirements
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Map processes
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Flow validation
Review with the experts
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Gap Analysis
Team consensus
Present to the client
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Buy off
Process Flow Diagram
Flux
Web Order
Created
New Order
3
SP
RXTRANSHISTORY
Customer
exists in Flux
Order approved to
process
Yes
Has customer
data changed
Customer
added
1
No
1A
Process order to SI
Baker
Add new
customer
Platinum
Reply to
Flux
No
Call stored
procedure AR
Master
Yes
Update
Complete
Return f lag customer
updated
SP RXGETARBAL
Add new
customer
Flux
Request customer AR
balance
Return
customer AR
balance
Call stored
procedure
customer balance
SP ARMASTER
SP ARMASTER
Update customer
data
Platinum
Database
SI Baker process
customer order
This process of verif iyig and
committing inventory is
called f rom the conductor in
NextRx prior to processing
the order is SI Baker
2
2A
Call stored
procedure verif y
and commit
inventory
Verif y inventory quantity is
available
Send to Flux order
shipped
Order Processed
Return Item
Availability
Yes
Reply to Flux
to process
the order
All items are
available on
the shelf
Yes
All items and
quantities are
available
All items and
quantities are
available
No
Ship Order
No
1
SP
RXINVCOMMIT
No
Tw o step process
f irst this w ill be
manual exception
af ter September
w ill make
automatic
Yes
4
SP
PAYONACOUNT
Demand placed in
platinum, line item
added to the PO
Que.
Re-run orders
af ter
shipments
are received
and put aw ay
Exception File
created/updated
SP RXINVSTAT
Error message
sent to Flux f or
any SP w hich f ails
Yes
2
SP
RXINVSHIP
3
SP
RXINVOICING
CUST/TPA AR
Create PO by
zone
PO is
McKesson
unique items
No
Page
2 "B"
Page
2 "A"
Emerging Technologies
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Internet
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Another store front
Virtual inventory
Market opportunities
Same old distribution
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New concept – same day delivery
Logistics is Changing
Shipment type
Customer
Demand style
Inventory/order flow
Average order amount
Destinations
Demand
Accountability
Traditional Logistics
Commerce Site Logistics
Bulk
Strategic
Push
Unidirectional
More than $1,000
Concentrated
Stable, consistent
One link
Parcel
Unknown
Pull
Bi-directional
Less than $100
Highly dispersed
Highly seasonal, fragmented
Through the entire supply chain
Source: Forrester Research, Inc.
Emerging Opportunities
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Distribution network has not changed
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FedEx, UPS, RPS, USPS
Revolutionary concept
Too expensive?
Dynamic partnerships
How do we do it?
Rx.com Delivery Model
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Initial Implementation
Customer qualifies for
same day delivery via
zip
Customer fills-in order
information
Customer Home
Fulfillment Center
(Oracle)
Customer
GeoCoding
Periodic Routing
Manifest
Generation
Automated
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Customer Home
Prescriptions
Information Systems
W eb Server
Order Entry Database
(Oracle)
Customer Home
Manifest
an
ife
st
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CSR monitors
delivery location/
status
Provides order
tracking information
to customer
M
Ÿ
Packaging
of Tote
Automated
Customer Service Reps
(10 people)
Austin, TX
Delivery Vehicle
w/ GPS
Export Routes
as Shape Files
Automated
ArcLogistics Route
NT Server
Routing Manager
Austin Airport
ArcView GIS
Tracking Analyst
HOU
GPS Receiver
Delivery Order Volume:
50 - 250 per day per city
DFW
Houston
Delivery Vehicle
w/GPS
Implementation Dates:
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Austin, TX - Jan. 17, 2000
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Dallas, TX - by end of Q1
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Houston, TX - by end of Q1
The Boldface and Red Font Areas
are desired ESRI customization by
end of Q1
Solution proposed by Jim Skirvin of
Baird, Kurtz & Dobson for Rx.com
(314) 231-5544 ext. 246
jskirvin@bkd.com
W ide Area W ireless
Dallas-Fort W orth
Delivery Vehicle
w/GPS
W ide Area W ireless
Customer Home
Customer Home
Customer Home
Customer Home
Conclusion
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“BKD is not just an accounting firm, but a business partner.
We first sought BKD’s expertise in selecting a robust financial
package supporting our e-commerce enterprise. BKD provided
much more and was instrumental in our success in
meeting our targeted start up dates. BKD provided us with the
financial application, distribution package, EDI with our vendors,
bar code scanning of 25,000 SKUs, project management in the
development of interfaces across multiple applications and daily
business consultants. And when we decided to pilot test a
revolutionary logistics distribution model, we did not
hesitate to call BKD.”
Jef Fowler, Senior VP & CFO, RX.COM