Riordan Manufacturing - Outsourcing Plan
Riordan Manufacturing, Inc. leads the industry in plastic injection molding. Riordan has six manufacturing locations in the United States, and one location in China. Riordan creates innovative plastic designs using state-of-the-art technologies that have earned them international acclaim. The various business entities of Riordan Manufacturing are using different Financial and Accounting applications and their incompatibility is causing many issues in the day to day operations of the company. In order to improve the productivity and efficiency of the business entities, Riordan management is considering outsourcing the Financial and Accounting ...view middle of the document...
Monthly auditing has become very costly and compliance with government regulations has become a challenge. Riordan management has recognized the need for a solution or other alternatives to resolve these operational issues. This solution needs to meet all of the requirements of the business and users as well as being a cost effective solution.
The existing F&A systems implemented at the operating entities of Riordan Manufacturing have the following modules; General Ledger, Accounts Payable, Accounts Receivable, Order Entry, Procurement, Sales and Purchasing History, Invoicing and Shipping, Payroll, and Financial Reporting. F&A systems implemented at the corporate office also include the modules for EDI, Bar Code Reading, and EDSS (Executive Decision Support System). The proposed solution should provide all of these modules, and more. Since the operating entities are in different time zones and countries, the new application should provide the features like multi-currency, multi-time zones, etc. to support a global implementation. The proposed application should be compatible with the existing applications implemented at Riordan Manufacturing while performance, scalability, and modularity are also deciding factors in the selection of the new application. The expectation is that the process of consolidating the close of the general ledger and subsequently the income statement and balance sheet report generation will be straight forward and it can support the requirements of the external auditors. The effective management of the general ledger can provide greater control over the accounts receivables, accounts payable, payroll expenses and much more. At present each entity is maintaining invoicing, payments, etc. for their customers and suppliers. The new application also should support this business process, so that the entities can continue to manage invoicing and payments for their customers and suppliers. These types of tools provide a much more accurate time and cost accounting as well as a better management of departmental budgets. The cost of the proposed solution should be reasonable and the return of investment (ROI) should be attractive so that the Riordan Manufacturing Executive Committee approves the project.
The implementation of a financing and accounting software package is an important step in the Riordan Manufacturing outsourcing plan. Many factors go into properly implementing a new software package including company budgets, available support and software package reputation. One key factor to consider with such an implementation plan is the level of interruption this may cause for the daily financial activities that take place in the company. It is important that new financial management software be implemented as quickly as possible with minimal training since financial processes cannot allow much time for disruption. Rolling out a new financial software package...