. BPI’s VP of sales want to utilize the information that PBI has about stations and their members. BPI has been working with many of their customer stations for years

. BPI’s VP of sales want to utilize the information that PBI has about stations and their members. BPI has been working with many of their customer stations for years and in many cases decades, he believes BPI has more information about the members than the stations do.  Formulate a plan for a Business Intelligence application that would be made available to member stations on a subscription basis. Consider access, database security and the instance where a member of one station may be a member of others as well kind of data might they have that would be useful to the stations?    Consider especially the smaller stations who have limited technology, databases, etc. PB Incentives (PBI) sells discounted and retail products through a wide variety of fulfillment services. The company was started 30 years ago with a mission to service the needs of Public Broadcasting television & radio stations. Today they are a for-profit company working mostly in the non-profit sector; a very small percentage of PBI business is in the retail world although this will likely change. Today they are the leader in their industry offering unique and cost effective solutions for their non-profit customers. A key factor in their success is that PBI has built its business processes around the needs of its customers and will continue to do so in the future. Flexibility is crucial for the business as their customers’ needs are constantly evolving and they rely on PBI to meet their customer’s unique requirements. Over the years PBI developed specific expertise in warehousing, fulfillment, content creation and duplication which differentiate them from competitors. For example PBI is the only company in their industry offering direct fulfillment (PBI Direct) to station members for you gifts. As PBI looks to leverage these and other strengths and pursue growth in existing as well as new markets they are looking to upgrade existing systems. Currently they are running “In Order” from Morse, affectionately called Ducks (as in “Ducks In Order”) by the staff. However, because of many custom enhancements, PBI is forced to run an outdated and unsupported version of the software as the difficulty and cost of upgrading has become unbearable. Additionally, the relationship with the VAR (Value Added Reseller) that supports PBI have been strained. • PBI provides ” you” gifts for approximately 200 of the larger Public TV and Radio stations in the U.S. and Canada. • PBI traditionally has been strongest on the TV Side and views Radio as a growth area. • Physical Fulfillment of Books, Music, and Movies has been a large part of PBI’s business portfolio in the past. Digital fulfillment over the WEB is viewed as a strategic direction. • At least 80 % of PBI orders are received via their WEB interface. • PBI employs approximately 25 dedicated team members at one location/one warehouse. • PBI has strong supplier relationships with major publishers, who offer many media products at deep discount to the Not for Profit sector through PBI, because they know where the products are going and because no returns are processed. (PBI generally works with a backordered status as gifts are generally offered with 6 to 8 weeks delivery by the PB Stations.) PBI Customers are predominantly not for profit Public Radio and TV stations who offer gifts to their members. PBI works with many stations across the country ing them set up promotional campaigns and selecting products relating to programming made available from national organizations as well as local programming staffs. There is also a small amount of retail business conducted through the website, mostly related to 3rd party product inventory in the PBI Warehouse. Primary Customer categories include: • Non-profit television stations • Non-profit radio stations • Non-profit joint licensees • Producers of television/radio programs • Public Broadcasting National Organizations (PBS, NPR, etc) • Other – Libraries, Schools, Learning institutions • Consignment Partners – While they serve as content providers and therefore appear as suppliers, PBI offers duplication, authoring, and artwork services to Consignment Partners to them make their material available to PBI Public TV and Radio customers. Their goods then appear in the PBI on line catalog and material is shipped to the PBI warehouse for later fulfillment. These partners are therefore also consumers of PBI services and belong on this list as customers as well as suppliers. • PBS/NPR stations have fund drives throughout the year to generate member donations and subscriptions. • “Pledge Programs” are aired that have the potential appeal to a wide audience. The main goal is for the audience to become members of the station at one of several levels of support. • During breaks within the show, items or “premiums” are offered as ” you” gifts in return for a membership level donation. • It is in the interest of the stations to provide premium ” you” gifts to their members in the best way possible. • At a minimum PBI Stations require: o Branding/Logos on orders o Real time communication about order status to both member & station o Confidentiality of their members’ information • Additionally for Some stations PBI will also provide: o Membership cards o Window clings, stickers, key chains and other membership related paraphernalia o Brochures and printed material related to membership. o (These items have to be maintained in the warehouse, or be printed on demand.) • Orders & communications to members must look as if it is coming from the station, not PBI. • Stations look to PBI not only to purchase ” you” gifts but to also facilitate in shaping their members’ experience. PBI publishes a catalog quarterly throughout the year which is available both in print and online to member stations. Member Public Broadcasting Stations use the catalog to plan their pledge drives which are planned one to two quarters in advance. Typically, an independent station will identify a series of programs to be aired and associated with a set of “gift offerings” for pledges from the PBI catalog. 1) Station shows a run of Barbara Streisand Movies over a long weekend (3 days) – they then break in to ask for pledges throughout the programs. A 25$ donation allows donor to choose a hat or umbrella with station logo. A 50$ donor gets to choose from a selection of Barbara Streisand Movies on DVD, a 100$ donation might offer a movie of the donor’s choice and a music CD. 250$ donation might get the new Barbara Streisand Book and a Music CD. 500$ donor gets all three selections (plus hat and umbrella.) 2) 1950’s movies are always popular. So during a run of 50’s classic movies a 50$ donation offers a 50’s Music CD. 100$ donor gets music CD and a copy of the movie Rebel Without a Cause. 250$ donation gets Music, Movie and a book on 50’s music and muscle cars. All selectins come with a mug with station logo and a membership card and a window cling (plastic sticker for car window) with “I support Station Logo”. The first process step would be the stations identifying the titles they want to use, and selecting umbrellas, mugs and tote bags they want to make available. In some cases, they will provide the membership cards for PBI to print and include with the order along with any other material they want to include about membership. See custom imprint orders below, Sageworld is used to find vendors who will manufacture/print logos on shirts, mugs, umbrellas, tote bags etc. These are then usually stored in the PBI warehouse to be fulfilled along with other gift items selected by the donors. PBI would then charge a fee to set up the manufacturing and store the items in the warehouse, along with a fee for fulfilling the order. Next step would be the PBS stations would air the fund drive. Showing the programming and offering the gifts to donors. Pledge periods would generally run from a few days to a week. During pledging orders from the stations would be uploaded usually, at night after all the programming is completed for the day. An Excel spreadsheet template would be downloaded from the PBI website, filled in by the station, and then uploaded to the PBI website (requires credentials). Depending on the station size orders could be up to 4000 orders per day during a drive. Those would be 4,000 line items (orders) specifying the gift and donor name and shipping address to ship to. For digital orders an email would be provided. Some smaller stations might still fax or call in smaller orders to the customer service department. A book or CD and a mug and umbrella would be 3 items going to the same donor address and would be considered a kit to be picked and packed together. PBI makes no margin on the items, but instead charges the station a fee for each order processed. The book, CD, DVD, or digital download would pass to the station at cost. PBI has 80% of the PBS stations in the US. Thousands of items are going out of the warehouse daily at a fulfillment cost of $1.50 or $2.00 per item plus shipping charges. The fulfillment charges add up quickly and the company is profitable every year. Normally, book and music publishers have standard discounts offered to the retail channels that fulfill orders to the public (at a profit.) As an example, your typical independent bookstore may purchase books from the publishers at 25% – 30% discount from the list price (on the book) with the ability to return titles that don’t sell. Publishers have traditionally allowed returns as a way to get new others and new work out to the buying public without risk to the bookstore. Large chains like Barnes and Noble might get 30% – 35% discount with returns. Along comes Amazon with an amazing catalog and many engaged buyers, demanding 45% discount from the publishers who must agree or risk disenfranchising a large part of the book buying public. PBI would go to the same publisher and say we want to order these titles. There will be no returns, all the times will be going to non-profit stations with no markup. And they would routinely get 60% to 65% discounts for their member stations. This means a $24 book title might cost the station $8.40 plus $1.50 fulfillment fee and shipping to deliver to the donor. Everyone is happy; donor gets a book clearly marked at $24.00, PBI gets $1.50 plus the $8.40 cost of the book and the station has delivered a gift at substantially less cost than they could have done on their own. This is the main business model, everything else is ancillary. For example, if I have a selection of 50’s music I might reach out to PBI and ask to have it included in the digital catalog so the stations could order it. To facilitate this, I might ship a truckload of the CD’s to the warehouse. PBI would charge me for storing them in the warehouse as well as a small fee for each one shipped, of course the station would also pay to fulfill the order the CD went into. Now suppose I don’t have a CD but I do have the license rights to the material, PBI would me get the CD’s produced, this is called replication services and might include the disk, the jewel case, the cover art, etc. Again done for a fee and then shipped and stored in the PBI warehouse, for a fee, and fulfilled for a fee to the stations. Hopefully this give you an idea of how the operating model at PBI works. One last note, as the qualifier on the stations orders tells the donor to expect 6-8 weeks for delivery, PBI does not have to place orders to the publishers for the titles until they have the orders from the stations. This allows PBI to operate in a “backordered” state. This is bad in many industries today, especially for companies like Amazon who work from a customer satisfaction of instant gratification. But for PBI it works to their advantage. PBI only orders the books, CD, that they will need and then fill the orders as the shipments arrive (no need for returns.) In fact, if you were to tour the warehouse, you would fine few books, CD’s or DVD’s. But lots of window clings, tote bags, mugs, and Cd’s that were created by replication services. PBI provides premium ” you” gifts, the items offered today include primarily, books, audio CD’s, DVD’s & Blue Ray discs, digital music, and custom imprint (logoed) items such as mugs, clothing, umbrellas etc. Development is currently underway to provide digital books and video downloads and for streaming media. – Service open to all Public Broadcasting stations. PBI direct products, ordered by the stations, are shipped directly to the members (recipients). The station is the “Ordered By” account while the member is the “Ship To” address on the order. Stations are charged for everything (cost of product, shipping/handling) on these orders. These orders look to the end user as if the station, not PBI, provided this service. PBI Direct™ orders are processed through PBI’s main website by batch upload. Internal orders are only processed due to correctional purposes. Items from PBI inventory are fulfilled directly to station members (includes digital downloads.) o – Service open to all Public Broadcasting stations. PBI Bulk products are shipped in bulk directly to stations (one ship to address). Multiple customer purchase orders may be combined into one bulk shipment. PBI combines these sales orders onto one packing slip based upon certain criteria (common “Ordered By” account, Ship To address & shipping method). Bulk orders can be processed through PBI’s main website or through internal data entry (phone or written order.) o – Service open to all Public Broadcasting stations only through PBI main website. The concept is to provide codes for digital download use. These codes can be purchased in “Bulk” in which case a series of codes is presented to the station through a report after the order is placed. -OR- The codes can also be purchased through the PBI Direct™ service whereby the member would directly receive the code via email. The codes are generated by PBI and the web site translates these into provider codes when the products are claimed. – Service open to only certain Public Broadcasting stations at this time. PBI Plus products are stationed owned but stored in the PBI warehouse. Orders are shipped directly to the members (end users) and consist of “Station Owned” product. PBI Direct Plus™ orders mimic – all the standard business processes & key points apply. Generally PBI Plus inventory is only available to the stations that have procured the product and shipped it to the PBI warehouse. Stations are charged for fulfillment and shipping and usually a warehousing fee. But there is no charge for the product itself as the station would have already purchased it before shipping to PBI. – Service open to all Public Broadcasting stations & PBI’s other customers. The concept is to create custom imprinted items based upon stations’ parameters. PBI Product Development Department uses contract manufacturers to create these products. Once the custom imprinted product is manufactured, it is either drop shipped to the station by the manufacturer or sent to PBI’s warehouse for distribution (see PBI Direct Custom™). Generally, items are selected from the Online catalog powered by SageWorld’s online catalog software (ASI currently moving to SageWorld). **Both Replication & Custom Imprinting may be able to utilize outside processing to facilitate work flow. – When Custom Imprint items are ordered and shipped to the PBI warehouse for fulfillment of station orders they are PBI Custom Orders. Generally the station has paid in full for the items manufactured with branding/logos when they come into the PBI warehouse. These items are very similar to Plus inventory except they have different pricing rules. – – Service open to all Public Broadcasting stations, producers of programs & other PBI customers. It is a process in which DVD’s, CDs, Blu-Rays are duplicated from a master. PBI also offers book printing as a service. PBI’s Product Development Department uses replicators and printers to facilitate the process. Product is either drop shipped to the owner or shipped to PBI for warehousing & distribution where it will be treated as a consignment. Content is provided and PBI replicates CD’s and DVD’s for distribution. If authoring is required that can be provided as part of the service **Both Replication & Custom Imprinting may be able to utilize outside processing to facilitate work flow. – Inventory is shipped and held in PBI Warehouse and available to stations as premium product. Consignment Inventory is usually offered to stations via the printed and on-line catalogs. – This service is open to Retailers (producers of programs, artists) who wish to have PBI fulfill web based orders. The concept is to warehouse retailers’ product, process web orders (credit card authorizations) and ship to the end users. In some cases, PBI will actually build a web store for a retailer. PBI charges a fulfillment fee to the Retailer for each order. This is the only service at the moment that provides web access directly to the consumer. – PBI has a creative department that makes graphic design and other creative services available on a RPH (rate per hour) basis, primarily to consumers of PBI’s Custom Imprint and Replication services. At times PBI may create custom product and makes available to stations via catalogue and may procure stock for warehouse. Example a custom mug with program logo “Doc Marten” that PBI creates and owns and fulfills for stations. In this case royalty payments may apply for use of logo/names etc. – Service to allow stations to pre-buy units in advance of a programming campaign to effectively reserve or guarantee inventory (might be scarce) for their upcoming pledge drive. Concept is that the station would pay in advance for the inventory which would be held in the PBI warehouse. When the pledge drive runs and orders for members are fulfilled then the station would be charged for fulfillment and Shipping and Handling only on those orders. This is a new service and has only been sold a few times. Essentially inventory is treated similarly to Plus inventory with different inventory charges. Inventory in the warehouse includes a wide variety of Books, CD’s DVD’s, Pamphlets, Brochures, Offer cards, Mugs, Tote Bags, umbrellas, clothing, window clings, offer response envelopes, etc. Individual items are inventoried in located in bins in the warehouse. Frequently items are bundled together as a kit. PBI supports both Virtual and Physical kits. Virtual kits are assembled at pack and are not packed separately. These most often are going in bulk orders where many items are going in a carton to a station to be distributed to members. PKits (Physical Kits) on the other hand, are collections of goods that will be packed together and fulfilled to a member in a single package. There are the following types of Inventory in the PBI Warehouse: • PBI Owned – product bought from vendors/manufacturers or created by PBI and owned by PBI. -product that PBI warehouses and distributes but does not own. Sometime after the point of sale, PBI pays the owner (aka Contract Holder) a set amount for the product minus a fulfillment fee. These products are open to wide distribution in the Public Broadcasting world although there are some ordering restrictions in a small amount of instances. – product that warrants payment to parties other than the owner when it is sold. Sometime after the point of sale, PBI pays the parties a set amount. These parties would also be considered Contract Holders. Product can be either PBI Owned or Consignment and is generally open to wide distribution in the Public Broadcasting world. (Station Owned) – product that a station (television/radio/joint licensee) owns which PBI warehouses & distributes. This product is distributed only to the station’s members. At the time of receiving in the product into the warehouse, PBI charges the station a handling/fulfillment/warehousing fee. – “virtual” product which generate codes that are ultimately used for downloading. These codes need to be complex and secure. • Labels – slips, return labels or flyers that go into an order. • Sample – product that is not used for selling purposes. • Employee Only – product meant for employee purchases only. – Custom Imprint goods created by PBI for a Station and placed in the Warehouse for distribution – owned by station. Paid for by station when created as custom imprint work. This is conceptually the same as PBI Plus except that different pricing rules apply. • Programs on PBS have specific airing rights. That is, there is only a certain period of time in which stations can air a program and offer specific ” you” gifts or premiums associated with the program. As a result, PBI must stay keenly aware of when programs and products are able to be sold and shown on the website. PBI needs the ability to easily remove a program and/or product from the website (interactive on-line catalogue.) • Most inventory items are associated with a television/radio program(s). For example, the John Denver: Essential CD is associated with the “John Denver: Song’s Best Friend” program. The Essential CD is offered as a ” you” gift during the airing of the “John Denver: Song’s Best Friend” program on PBS. Both the programs and their attached premiums need to be reflected on PBI’s website. • As it relates to the program, inventory items can be classified as having bonus material, being a pledge drive exclusive, and/or companion premium, etc. • PBI products have a plethora of information attached to them – program, PBI SKU, description, type (CD, DVD, etc.) images, special messages, track lists, vendor, vendor SKU, UPC/ISBN#, vendor price, station cost, PBI cost, country of origin, harmonized code, play length, availability/street date, artist, catalog assignment, line list in PBI catalog, market (TV or radio), etc. Certain product information needs to be shown on the PBI website. This needs to be configurable by PBI employees who manage catalog content (physical and digital catalog.) • The information attached to the inventory item must be exportable in order to create a physical catalog for marketing purposes as well as a web based version. • Inventory must also be classified so that only certain stations can order/see their products (Station Owned) on the PBI website. • Content Providers – PBI works with both large and small publishing houses, and order directly and receive products in the PBI warehouse. o Book Publishers o Music Labels o Movie studios o Digital distributors of Books, Music and Movies o Providers of streaming video services • Consignment Partners • Custom Imprint Merchandise Providers – Logoed you gifts including Mugs, Clothing, Umbrellas, etc • Digital Authoring and Replication Service Providers – Large organizations like CINRAM who offer digital replication at a wholesale level at large scale. • USPS – shipping • Software Vendors – products utilized • Other plant related service providers – Janitorial, Landlord, HVAC, etc. PBI receives orders several ways: Website – stations log in with credentials: • Select products and quantities from the online catalog. Can be bulk, PBI Direct, or digital. If Direct Fulfillment is selected member address information is entered for each line item/SKU. • Upload orders for PBI Direct. Orders are uploaded in a supplied Excel template by stations continuously as their campaigns are running. Orders received by PBI often exceed 3000 items per day. In the case of PBI Direct a single order may contain more than 3,000 individual line items, each line being a PBI SKU to be delivered to a different member. • Request from stations for PBI to Research Items not currently in the catalog to be added to catalog so it can be ordered as a premium. Sageworld Website – Accessed from PBI Main website PBincentives.com. Used to request quotes for Custom Imprint Premiums with station Logo to be either Direct Shipped to Station, or shipped to PBI Warehouse (PBI Custom) for distribution. A quote is presented and an order placed using the SageWorld software today. Other – Orders are received by Email or Fax on occasion by Customer Support or the Sales Team. Bulk orders are packed and shipped (in large boxes) directly to the station for distribution. Orders list volumes of specific PBI Product #’s (SKUs) each Line on the order represents one SKU with a quantity to be shipped for bulk delivery to the station (usually). PBI Direct, the largest category, orders are shipped directly to the station member and may involve multiple items (could be kits) and marketing information, window decals, etc. PBI Direct orders are created by uploading a document from an Excel template available on the PBI website. For PBI Direct each line item on an order is an individual SKU (can be single item or Kit) to be shipped to a station member. 80% of PBI volume is in PBI Direct where an order may have thousands of line items, each a SKU going to a different ship-to address (member). The current system uses a process where it fulfills all orders where stock can be allocated and then opens child orders (backorders) when stock is not available. A single order can then have multiple child orders and children of child orders creating a hierarchy of orders that is unwieldy. Stations can indicate ship complete which means that the shipment won’t go out until all line items for a member are available to allocate. This combined with KITs processing creates a backorder process that is extremely complex. Today PBI uses a FIFO method to decide how to allocate stock. When backordered items arrive at the warehouse manual iterations of looking at PKit, VKit and open back orders are required to maintain FIFO. Today a separate process cycle to identify and assemble PKits is required each time before an order fulfillment cycle is run and tickets are printed, to make sure backordered inventory that arrives is available for PKits on A FIFO basis before non PKit orders area allocated to. (This also requires receiving be closed from when PKits are assembled until orders have printed pick tickets.) This is primarily due to the inability of the current system to “see through” a PKIT and identify required components and maintain FIFO processing. As part of the implementation the team must evaluate whether each PBI Direct line item should instead be an order which could then be processed separately from other orders. This would significantly reduce pick and pack effort and smooth out warehouse process. One additional issue here regards member data. Today members are not stored in the system as accounts. When a station sends orders there is no attempt to match a current shipment to a member with a prior shipment to the same member. Since members do not carry and unique identifier in the system it is difficult for CSRs (Customer Service Representatives) to research individual orders to respond to issues called in by the stations. This is also complicated by the fact that an individual could be a member of more than one station. Real Time: Reporting • Real time reporting for both web & internal use based upon ERP & ConnectShip processes. • Reports include: Open Orders, Shipped Orders, Inventory Reports, etc. • Requires real time Receiving Reports to be automatically sent to vendors & customers. Station Reports Available today: • Order Details – Filters for: o Order Type (all, open, shipped) o Start/End Ship Date o Donor Name o Station Premium Code o Invoice Number o Shipping Number o Purchase Order Number o Donor Number • Cost Report – Details and Cost information for products, shipping and handling and donor information. o Start/End Invoice Date • Data Files “reports” for Shipped info to be uploaded into Donor Records in: o Team Approach o Allegiance o MemSys o SalesForce • Digital Download Codes – Filters for: o Start/End Date o Donor Name o Door Email o Donor Number • Order Details – Filters for: o Order Type (all, open, shipped) o Start/End Ship Date o Invoice Number o Shipping Number o Purchase Order Number Invoicing is triggered by shipments. Everything is processed today in Ducks. Generally, when an order has been shipped ADSI shipping software will update the order in Ducks confirming shipment and adding the shipping charge on the order (uses a double rate shopping method), this process takes about 1 second to occur. AR clerk then sees the confirmed shipment in Ducks and submits the invoice to process via invoice button on the order screen. The main difference between Bulk and PBI Direct is about the order detail, the process is basically the same. The Bulk order has multiple items in one large order (maybe multiple cartons) with shipping charges added for the order as shipped. The PBI Direct order will have full detail for all order lines. For a PBI Direct Order with 2500 line items on it (ship to’s) there will be 2500 line items with shipping and handling charges on each. When shipment confirmation has occurred an invoice will be created. Runs in batch today, when a batch runs multiple line items on a direct order will be satisfied and an invoice will be sent. As some items may be back ordered and will be shipped in the future multiple invoices may be related to one PBI Direct order. They are tied together by the order #. Some larger station customers have asked for and receive a Consolidated Invoices Report in the form of an Excel File showing summarized data. This is available on request only and is generated manually so it is not available on the website today. PBI would like to be able to offer summarized reporting on request via Customer Portal. • For Bulk service, PBI charges the credit card of the station after the shipment has been made & after an invoice has been generated. (PBI sometimes send the invoices to the station who in turn contacts us after the fact to authorize a charge on their credit card.) • For Retail Web Orders, real time credit card authorization is needed. However, must be able to take orders & not charge a credit card if product is on backorder. Require ability to authorize the card when product is available to ship. • Today PBI uses ConnectShip through ADSI to process packages in real time. Processing should take less than a second. • Up to the minute shipping information (tracking, shipping cost for PBI & station, etc.) is passed along from ConnectShip to ERP system to update orders. • Information from ERP also needs to pass along to ConnectShip as well. For instance, if an order is put on Hold after a packing slip has printed, the ERP should notify ConnectShip when processing the package. • Tracking numbers have to be stored and available for query. Customer service needs capability to look up an order (today line item on an order) by tracking #. Sometimes that is all that is available. • Utilize a double rate shopping method to find the lowest rate available for PBI and the lowest rate available for the customer. The lowest rate available for the customer is then charged to the order. • Each station/producer has one main account by which all orders are placed. This is considered the “Ordered By” account. • “Ordered By” accounts house vital information such as the customized Logo & you message which are reflected on Packing Slips, Emails & Postcards. Certain billing reports are also generated from the “Ordered By” account. • Many station employees need to have access to their station’s main account for web ordering & reporting purposes. PBI website is password protected & restricted. Each station employee must have his/her own unique password giving rights for appropriate access. • For Bulk Orders the station/producer is the “Ordered By” account, while the ship to address is either the station or their fulfillment company. The Ship To account must tie back to the Ordered By account. • For Direct Orders the station/producer is the “Ordered By” account, while the ship to address is the member (end user). • For Retail Web Orders, the producer is the “Ordered By” account, while the ship to address is the end user. PBI must be able to charge the end user’s credit card, with the correct address, for these orders even though the end user is not considered the “Ordered By” account. This required custom programming from the current software company. • Address Verification – Today using Melissa Data, PBI requires real time address verification on website & within any new ERP anytime an address is added to the database. • Require customized Order and Shipping Acknowledgement emails to be sent to either the “Ordered By” accounts and/or Ship To Accounts (end users) in real time based upon ERP and ConnectShip processes. • Require customized Backorder emails to be generated based upon specific parameters as per customer requirements. • Require customized automatic Backorder Postcard generation based upon specific parameters as per customer requirements. • Purging Information – Stations are extremely sensitive of their member’s personal information. Names & addresses of members cannot be made public. PBI is under contract with certain stations to “purge” all of their member information from PBI database. These set intervals are dictated by each station. PBI’s main website includes the following distribution services: Bulk, PBI Direct™, and PBI Digital Premiums™. • PBI’s main website is password protected and used only by PBS/NPR stations who are PBI customers. • A batch upload process is available for both PBI Direct and PBI Digital. Customers upload a batch file. There is a sample batch file template and instructions for creating a suitable file from Team Approach on the website. • The website works in real time (inventory additions, changes, real time order information, reporting). • Stations have the option to choose which Distribution service they wish to use while on the website. They can go into each “portal” at any given moment. • As noted previously, there is one main Account (“Ordered By”) for stations but there may be several station employees who have access to the account; each with separate logins, passwords & ordering privileges. These logins and passwords should reside within the PBI database in an encrypted format. • Order Classes play a major role in web ordering since a station can order 3 different kinds of services through the website. The ERP system must be able to know the difference between a Bulk, PBI Direct™, and PBI Digital Premiums™ order as the order is passed to the system. • Station Owned product can only be viewed and ordered by the station who owns the product. PBI Incentives has multiple order types that drive several different types of Inventory (as described in section IV). These can be viewed as either PBI Incentive owned inventory or Consignment inventory the majority of inventory on hand is usually Consignment owned. PBI Owned inventory is usually ordered JIT for fulfillment to station members and therefore there are not usually large stock levels of PBI Owned Inventory. • PBI Incentives procured (order to ship – Just In Time) – majority o Provided by Independent Producers – consignment o PBI fulfills and charges station for fulfillment and product value and remits to producer o Provided by National Organization o PBI fulfills and charges station for fulfillment and value (may differ by contract) o Plus = Station provided o PBI fulfills and charges a fulfillment fee and warehouse fee only o PBI Custom – Ordered and supplied to WH via Custom Imprint, paid for by station at creation time. Charged warehouse fee and fulfilment fees. o Storage fees – PBI Consignment, Plus and Custom Contracts generally provide for a storage fee to be charged. Requirements for ERP include the ability to measure the amount of time consignment items have been stored and to compare against contract rules to calculate fees to be charged. Consignment, Plus and PBI Custom. o Royalty items – Doc Martin Mugs? License fee/Royalty per mug to Acorn. • Receiving o Put Away o Bin to Bin transfer o Kitting o PBI Direct o Bulk o Cycle Counting – not done today o Physical Inventory o Scan Item o Enter PO o Enter Quantity o Indicate Damage (if any, enter quantity) o Create a transfer label (separate one for damaged items – different destinations – damaged items to damaged bins.) – done manually today. o Generate put away transactions o Is there a method whereby receiving can continue during Kitting process? o Can PBI hard allocate or hold inventory for kits and move to wave picking. Support desired for wave picking where orders are released in waves throughout the day? Kit orders would have to be held and inventory hard allocated and held until PKIT build has finished, then release PKIT orders in their own wave. – PBI Uses dynamic bins – if there is no product in warehouse there is no bin assigned. Bin numbers are reassigned as needed. o Standard Put Away functions are required. o PBI often receives and stages for immediate pack and ship. System needs to recognize activity level or order status for incoming items. Items heavily used or about to go right back out are put away on “RCarts” (Receiving Carts) these items are then picked right from these carts which have been wheeled to the packing area. o If over time items remain on the receiving carts PBI requires the ability to generate a manual transaction to put away remaining items on cart to free up physical cart for new incoming stock. o Put away process has to distinguish between RCarts (RCRT01)and RPallets (RPAL01). Done manually by receiving clerk today. o System also needs to understand Bin Size and item dimensions. Some bins are set up for CD’s or DVD’s only. o Have an RF function for materials movement, with rules that can be specified. o Receive damaged inventory identified during pick process, per RF, per system logic (update inventory etc.) o System will only allow items that fit into appropriate bin s (size/item dimension) o Materials movements need to be schedulable as task, when employee logs in task would come up and he/she is then directed to complete move. o Need rules for different types of inventory, CD, food items, etc. – Kits at PBI are comprised of groups of items being shipped to one location. May include any combination of books, CD’s DVD’s and other premium items (mugs, shirts, umbrellas etc. usually between 2 and 8 items at most). 2 basic kinds of Kits Physical and Virtual. o Physical- or PKITS – Items are assembled and put into inventory as a kit. They are removed from inventory as individual items and put back into inventory as 1 kitted item. ▪Creation of PKITs is triggered by a production order from Cust. Service when Agent seesall items are available (ordering report). ▪Can be difficult to decide when to allocate stock to kits. Requires a better view into allrequirements for items that are to be kitted than available today. Inventory can beallocated to Single orders, PKITs and Virtual kits. (Observe FIFO as a practice and createprocesses that support it as a general rule.) oVirtual Kit – is not assembled but is considered a logical grouping of products that will be shippedtogether. •Basically kits are for simplicity of ordering for station = 1 sku •PKITs are boxed together and shipped as a kit. •While a single Virtual kit will be shipped as a box. If a station orders a group of virtual kits say for example10.10 of each item will be shipped in a large box (unassembled.) Similar to a bulk shipment of like items •There may be a substantial difference in fulfillment cost for a PKIT vs. Virtual Kit. PKIT incurs 1 fulfillmentfee, virtual kit may incur a fulfillment fee for each item (only for PBI Direct, bulk is always done as a % ofStation Price.) •Kit Transparency is a desired characteristic. At times items are allocated to a kit that is missing somecomponents and therefore will be essentially held. While a single item line item could be fulfilled ifinventory were unallocated for the single item for the kit. Today all these decisions are made looselybased on a FIFO approach. At times it might be useful to be able to consider other alternatives and to notrely on a CSR to make a decision. Current order report does not provide enough data to make thisdecision effectively. – Support several methods and require RF capability to handheld device (Terminal, Tablet, armband, etc.). Require the ability to scan with scanner along with order presented on tablet/device (RF) to validate correct item was picked. For PBI Direct require scanning every item on orders with high variability. With low variability, or bulk, require the ability to disable scan or set scan for sample rates. • – oPick by order – 1 order at a time oPick Like items across multiple Bulk orders – would require logic in system to figure out which orders(with like items) can be combined for picking. Several options for picking would be to just bulk pickand sort out by orders later, bulk pick and assemble order in cart by location, by shelf, etc. Printing – today print pick summary and packing slips all in one large batch. To enable batch picking for bulk orders would require RF for pick summaries first and packing slips later. – Support different methods oBulk – single line orders (1 piece each) oWave Picking oBatch Picking – depending on conditions offer the capability to release groups of orders for picking in wavesbased on rules selected by the Warehouse manager, ideally from some kind of dashboard showing metrics orperformance indicators for the warehouse. Order size, staff available, warehouse activity may all be factors indeciding how to release batches for picking. IE. Large numbers of same single item could be grouped andpicked into a large bin and separated and license plated at packing station. Kits might be assembled in a cartwith positions for a large number of kits and LP would be created in advance for each kit to be built so thatthey are actually assembled on the cart before they go to pack. – Today tickets are printed on statement paper forms that are labels. Bottom of form is adetachable label which includes the bar coded identifier (W#) that tells the current system what order it is andwhat shipping label to print. A more cost effective solution in an RF environment would be to take a pre-printed unique label and apply it to the order in cart or at pack and scan it to associate it with the order in the system at the time it is applied to the order. Open to other cost effective solutions. • RF strategy would have a way to associate locations with orders (Order #, Bin #, Quantity) so picker can be directed to go to bin; scan location once scan item once (to make sure right item from right location) then scan items into orders on cart. • Will need the ability to store and utilize a rule structure to decide how to pick (method to use) based on environment variables, how packed (CD only, DVD only, etc.), such as how busy, how many workers are available, time left in day, etc. I.E. Wave Templates – single line CD, single line DVD, single line with inserts, PKITs, etc. • Require the ability to override or create picking exceptions • Cancel orders that have not yet been picked. (can’t do this today as entire batch is printed at once at the beginning of the pick process (could be thousands of “lines”). • Require processes for Short Pick? (employee allowed) • Allow for identification and transfer of damaged inventory at pick. – Require capability to scan with scanner along with order presented on tablet/device (RF) to validate correct item was picked. PBI Direct requires scanning every item on orders with high variability. With low variability, or bulk, require the ability to disable scan or set scan for sample rates. • – o Require a way to validate that the right product was picked and packed. Bar code created that ties order to completed package – scan and ship. o Create Carton content label (Bar Coded) prefer a system generated carton content label and system assign box #. Should include: ▪ Who is it going to ▪ Contents ▪ Box # ▪ Barcode o Will need to allow shipment of cartons as completed (get them out of the way of the line). But can’t rate the shipment until order is complete with all cartons (different charges for multiple vs single, etc.). o After last box – master packing list created. Would be nice if PBI can specify barcode/non barcode so they can manually create a missing barcode. – Uses different methodologies for direct shipments. o Always need a packing list and shipping label. o Require the ability to print on demand – Package inserts and membership cards. Identify who/what to print on the equipment that will print. Unique membership #’s Station logos, etc. Create membership #’s in system? o Require a process for packing large batches of like items all going to different ship addresses/customers one at a time. Could be packed on multiple packing lines/stations but all picked together. Need as much flexibility as possible across lines. All – require ability to create identifier to travel with package from packing to shipping scan code that relates to the order, recipient, address, ship method, etc. Will generate this info at shipping station terminal/device. – Need to be able to support both: (without stopping entire line). o Receiving can still occur o Orders for the item can still be received. o Freeze item bring counted, no picking, no put away. o Other items can still be put away, picked, packed and shipped o Based on movement velocity of inventory items. It also needs to be dollar driven (high-value items). • Need to be able to define/maintain specific locations that are forward pick areas or zones. • Define how many units are to be held in that area/zone and at what level to replenish the forward pick location. • When inventory falls below replenishment level generate transaction to automatically replenish forward pick area. Auto assign task. – Require ability to create identifier to travel with package from packing to shipping scan code that relates to the order, recipient, address, ship method, etc. Will generate this info at shipping station terminal/device. • Today Using Connectship & ADSI – rate shopping, shopping for lowest rate, of services that PBI can use and shops lowest rate for customer charge. And selects shipping charge/method and rate to charge customer. • CRM and VRM • PBI believes that digital distribution will be the next phase of evolution. o Digital Downloads for Books, Movies and Streaming Video. o “Selection of the month” subscription services o Credential Brokering for download & streaming codes • “EDI” Integration to Station Front End Donor Systems • PBI hopes to continue serving not only PBS/NPR stations but other non-profits as well as new for-profit markets • White Label Webstores for stations and artists – Move to Retail transactions as a larger percentage of total goods. • PBI is seeing more and more complex Royalty arrangements including recently production blankets requiring support for complex creative royalty contract arrangements • Transparency, many relationships are unique and may call for unique configuration of information for Stations, suppliers, and customers. PBI requires flexibility to be able to create portal solutions to allow access to basically any account information deemed necessary as well as the opportunity to easily create web pages and white label stores with information available and easy content management whereby complex, expensive, technical programmers are not required. – Today there is basically one strategy which involves printing all pick tickets in one large batch and then picking, packing, and shipping that batch until complete. Pick Tickets are printed on statement paper size forms with a sticker attached that is eventually removed and placed on the box when the order is packed. Desire is to move to a flexible system, allowing warehouse operations to decide how to group orders for picking based on environment variables, including staff on hand, order size, SKU groupings, Warehouse activity, etc. Desire an RF based system eliminating the need to pre-print tickets and adhesive labels in advance. PBI would also prefer a more fluid system that does not require large batches and create inactive periods for certain areas while batches are being processed.

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