Riordan Manufacturing Service Request SR-rm-012

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Riordan Manufacturing Service Request SR-rm-012 1
Riordan Manufacturing Service Request SR-rm-012
Learning Team C
Tracie Butte
Matthew Pavelchik
Collin Williams
University of Phoenix Online
BSA310-Business Systems
May 6, 2012
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Company Overview
Riordan Manufacturing is a global plastics manufacture with around 550 employees,
Riordan annual earnings is project to be 46 million. Riordan Manufacturing is owned by Riordan
Industries, a fortune 1000 company based in San Jose California with more than 1 billion in
revenues. Dr. Riordan a chemistry professor founded the company in 1991 and it has grown to a
global organization with locations in Michigan, Georgia, and China. In 1992 the company got its
name after Dr. Riordan obtained venture capital and purchased a fan manufacturing plant in
Pontiac, Michigan.
Mission Statement
Riordan Manufacturing mission is to be the leader in using polymer materials to provide
solutions to their customer challenges and to be the leader in identifying trends. Riordan
customer focus is to build long-term relationships through maintaining quality controls,
innovative solutions, a responsive business attitude, and reasonable in price. The company
committee to maintaining an innovative and team orientated work environment providing a
climate focused on the long term growth of the company.
Service Request
Riordan Manufacturing placed a service request for all locations to review existing
business systems. All areas within the organization are using various business systems; all of
which represent challenges. The organization needs to identify problem areas and integrate
solutions. The current systems differ at each location creating compatibility issues; the Michigan
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plant's application system developer is no longer in business leaving no access to updates or
troubleshooting. San Jose accounting application contains no source code eliminating the ability
to modify the program.
Finance/Accounting
Riordan Manufacturing has many issues regarding their Finance and Accounting
department. Although they have implemented some basic components to each system that
include: General ledger; Accounts Payable; Accounts Receivable; Order Entry; Procurements;
Sales and Purchasing History; Invoicing and Shipping; Payroll; Financial Reporting; EDI; Bar
Code Reading; and EDSS (Executive Decision Support System), the EDI, Bar Code Reading,
and EDSS are only implemented in their San Jose location.
Another area of concern regarding Riordan Manufacturing Finance and Accounting
department is the lack of system compatibility between the company’s four locations. Each
location uses independent software to handle their financial operations. The current system
creates an extra workload and creates further issues such as requiring reports to be generated
manually, data is provided through hardcopy reports requiring them to be re-entered, and data
that is provided by data files must be converted to the correct account codes (Apollo Group,
2007).
Riordan manufacturing is wasting valuable time and money by not updating the system
so that it is compatible between all four locations. The implementation of a compatible system
will create less work and generate a higher quality of data with fewer errors. The following, are
suggested requirements that will provide Riordan with a more profitable and stable Finance and
Accounting department:
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
Provide all locations and work stations with compatible hardware/software
programs

Implement the EDI, Bar Code Reading, and EDSS in all three operating entities
(Georgia, Michigan, and California)
The Income Statement for Riordan shows a profit loss in 2005 versus 2004
although sales in 2005 where higher. Operating expenses have risen significantly between the
two years which directly effects profit. Implementation of the suggested requirements will lower
Riordan Manufacturing’s operating expenses which will result in a higher profit margin.
Sales and Marketing
At the present moment, Riordan Manufacturing is attempting to consolidate all of its
customer information into a CRM system. Currently, most of the organizations records are
located in disparate databases, in paper files, and microfiche which result in inaccurate,
problematic or even missing records.
The implementation of a CRM system within Riordan will allow the company to keep
more accurate records and databases. The information that Riordan Manufacturing plans to
consolidate into the CRM system include:

Historical Sales; Dates (order, delivery, and payments), Unit and Dollar amounts of
each product, Sales by customer (price paid, cost, margin, and discounts)

Past Marketing Research, Marketing Plans, and Design Awards

Sales Database

Production Records

Profit and Loss Statements
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
Marketing Budget/Marketing Budget Anticipated Results
Additionally, Riordan Manufacturing has drawn up a Sales Plan to help the Sales
Department prioritize activities in order to meet or exceed the sales objectives. The Sales Plan
has a goal of making $50 million in revenue within two years by increasing sales to existing
customers and expanding sales to new customers.
It is recommended that Riordan Manufacturing should first implement the CRM System
before continuing on with their Sales Plan. With the additional files and data that the Sales Plan
will accumulate, poor record keeping and untimely data exchange may hinder the goals that are
included in the Sales Plan, therefore causing it to fail.
Legal
Riordan Manufacturing is a Fortune 1000 enterprise that employs 550 people and brings
in revenues in excess of $1 billion. Potential legal issues should be one of the company’s main
concerns. Legal issues could arise in a vast amount of areas including industry and government
regulations, contract breeches, patent and copyright issues, and potential law suits made by
employees and customers. Therefore, it is in Riordan Manufacturing’s best interest to be
prepared for any legal issues that may arise.
All legal matters are overseen by Chief Legal Counsel Lowell Bradford and Litteral &
Finkel, the law firm that is currently retained by Riordan Manufacturing. Mr. Bradford is in
charge of patent applications while Litteral & Finkel handles litigation, tax issues, employment
laws, and real estate transactions.
One area of concern regarding the legal aspect of Riordan Manufacturing is the lack of
proper information storage. It is recommended that Riordan updates its Information System and
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implements a Security Policy to keep all sensitive material safe and away from potential threats
that may cause legal issues.
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