Plugging The Black Hole

Have you ever wondered

what happened to that TV you shipped back to the company because its colors were off, or

because its screen was too small for your den? Are you sure that, in an attempt to soften

the impact of returns on its bottomline, the company didn't just put your TV set back on

the shelf?

In order to deal with

such returns, a company usually uses a system, commonly called RMA, or return merchandise

authorization system. Such systems vary widely in scope and efficiency, few unfortunately

are first class. In fact, according to Drew Robinson, Credit Manager at Creative Labs,

"RMAs are a black hole for most businesses."

Handling returns can

be a complicated process. Just how complicated depends on the number of items involved,

the terms of the sale, special product characteristics, value at the time of return,

reason for return, status of warranty, and the kind of satisfaction, that the customer

wants-replacement, refund or repair.

The first application

to automate every conceivable step in this process has been developed by Progress partner

JAS Systems Inc. It's called Jas Ensemble and among its first users was Creative Labs Inc,

producer of the ubiquitous sound blaster PC audio system. Now the flagship of a

diversified multimedia line, sound blaster has been an industry standard for over a

decade. But despite the product's success, Creative Labs was far from satisfied with the

cost of handling returns. "No matter how good your product," says Robinson,

"if you're in the consumer business, some of the units you ship will come back.

Dealers order too many. Shippers pack the wrong model or size. Customers misunderstand

your specs."

Creative Labs had been

using a manual system tied to a database that was not shared by their other applications

like accounts payable or inventory. And, as indicated by Robinson, Creative Labs wasn't

alone in being financially encumbered by an inadequate RAM system.

Zeroing

in on the opportunity



When you visit JAS website (www.jasinc.com), you'll see the slogan, "when it is an
easy job, our competition gets it. When it is impossible, they all come here." It was

in this spirit that Tony Lim, President, founded JAS seven years ago in San Jose,

California. He sought to solve problems that other developers and consultants couldn't or

hadn't chosen to address. Today, his company employs 25 people, and generates revenues in

millions. The company specializes in packaged and custom applications, training, and

support for helping manufacturers better align their information systems with their

business objectives and managing their software assets better.

For some clients, this

means reducing material shortages or improving distribution logistics. For others, it's

providing more responsive customer service, which was the unanswered need that JAS was

called on to fill three years ago with a real RMA system to track and manage returned

merchandise.

While looking at RMA

applications, recalls Lim, "they were usually just modules of ERPs (solutions). They

were neither efficient nor flexible. There was the helpdesk type that, instead of

automating the process, stepped the user through it manually. And there were workarounds

that handled returns as negative orders." Believe it or not, he continues,

"these recorded negative quantities and negative dollars. When an item was returned

to a warehouse, the system would produce a sales order in reverse."

Here, JAS saw the kind

of unanswered need automating the RMA Process that it was committed to confronting.

Today's JAS Ensemble, developed in Progress Version 8, is actually the fifth iteration of

an RMA product. The first three were written in FORTRAN as custom applications for clients

using FORTRAN-based ERP systems. "As you can imagine," Lim notes, "those

weren't quick or easy jobs. But each was a decided improvement over the preceding.

"Then, when the

fourth opportunity arose, we decided to give it a Windows front end and make it flexible

enough to work in any business. So, we switched to Progress version 7, and developed our

first packaged RMA application. Creative Labs was our first customer-as it was for the

current JAS Ensemble, developed in Version 8."

Saving

time and money



JAS Ensemble is designed to meet 80% of the needs of any manufacturer. It is compatible
with standard databases and interfaces with a broad range of file servers and enterprise

information systems. The remaining 20% of functionality and connectivity can be satisfied

by JAS on a client-by-client basis.

JAS Ensemble not only

processes calls, validates product warranties, and automatically handles thousands of RMAs

a day, it also routes products to preassigned repair centers, tracks multiple return and

repair histories for both serialized and non-serialized products and manages credit,

advance replacements and upgrades. Moreover, its tracking capabilities are a decided asset

in quality control programs.

Running on MS Windows,

Windows NT, Unix and NetWare, Jas Ensemble's user-friendly graphical user interface (GUI)

reduces the learning curve for all who use it and speeds their data input with dropdown

selection lists and powerful search browsers.

Since implementing JAS

Ensemble and interfacing it with the corporate information system (MANMAN), Creative Labs

has realized significant returns on its investment. According to Robinson. "We had

always done a great job with inventory and receiving of raw materials. Now we are doing

equally well with inventory and receiving of returned product."

Simplifying

development and deployment



The first version of JAS Ensemble more than fulfilled its promise. By October 1996, JAS
had decided to refine the front end and substantially restructure the database using

Progress version 8. Since part of the plan was to move Creative Labs to the new version,

everything had to be up and running by the fiscal year end, May 31, 1997. "In just

seven months, we were going to design a new Progress database and provide enhancements to

our front end-plus convert Creative Labs database from one version to another and provide

them with training," says Lim. "It was a serious challenge, and one that I don't

think we could have met in any environment but Progress."

Eddic Tran, Senior

Software Engineer at JAS, does recall a moment when they actually considered building

their first non-FORTRAN RMA application in VisualBasic or PowerBuilder. "But it was

only for a moment," he says, "because we needed a complete solution, 4GL

scalability, and especially important, profitability, so that we could shift platforms or

operating systems without having to change source code."

When work on the new

JAS Ensemble began, several Progress Version 8 features stood out. First were Progress

Smart Objects, reusable components that automate the building of simple and complex

business applications. Ready-to-use smart objects are included with the Progress User

Interface Builder (UIB), which also provides the tools that JAS used to build additional

tools of its own. All in all, according to Tran, the reusability of the Smart Objects

dramatically reduced coding time. "They made it fast and efficient," he says.

Smart Objects facilitated component-based development without the usual component-based

complexity.

A second feature that

sped development was Progress's prototyping ability. "Because Creative Labs was

running our previous version," Tran explains, "we were able to quickly develop

prototypes for weekly feedback on our changes. That was invaluable in determining whether

or not we were on track with user needs. Imagine doing it in FORTRAN or C++."

Broad

success, bright future



Creative Labs isn't alone in streamlining its RMA system with JAS Ensemble. Among the
others on a growing list of users is SyQuest Technology Inc, a leading supplier of

removable cartridge hard disk drives for PCs, workstations and servers. Like Creative

Labs, SyQuest realized that its system was woefully inadequate, generating mountains of

paperwork and leaving long queues of product to be processed, thus increasing the need for

additional warehouse space.

With JAS Ensemble

SyQuest now handles returns promptly and profitably. Phone agents can determine with a

customer on the line whether their return is or is not under warranty. Warehouse personnel

compare what is returned with what should have been returned. Thus many warranty repairs

are invoiced and credit is withheld for missing items. No longer is either considered a

write-off.

Future versions of JAS

Ensemble will have even greater functionality. Tran indicates that JAS is open to

incorporating in the packaged product any refinement requested by a user if it has wide

enough application. An example is an internet-based front end that would allow customers

to request and receive RMAs from a web site. Already Creative Labs has shown interest.

Their current system, which is primarily for distributors and resellers, isn't yet open to

end-users. So says Amy Lin, MIS Manager at Creative Labs, "An internet solution for

end-user returns would be interesting, indeed." She continues, "When we selected

JAS Ensemble we were looking at three or four packages. All fit our needs, but this one

was the most flexible, required the least customization and we like the future features

that were planned."

JAS is already well

into developing the internet extension, for which they will use WebSpeed. Other 'future

features' will be in areas of reporting and database updates and extractions. "As a

Progress partner," Lim concludes, "we feel confident that we'll get the direct

help that these initiatives require. When you're a small company that often finds itself

going up against consulting groups from 'Big Six' accounting firms, it's nice to know you

have this level of backing."

Courtesy: Progress

Software