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Case Study
Background
Originally, FVC assembled its software kits in-house as required and internally handled all order processing and product fulfillment. To reduce costs, FVC was faced with the challenge of how to most cost-effectively manufacture and fulfill its software products. FVC could either reengineer their internal operations or outsource them to Gung-Ho – a turnkey manufacturer and distributor of software kits.
Challenge
Would it be more cost-effective for FVC, an on-demand software publisher, to reengineer their internal manufacturing and fulfillment operations or to outsource these activities to Gung-Ho?
Solution
After considering all of the costs involved, FVC decided it would be most cost-effective to outsource their software manufacturing and fulfillment to Gung-Ho based upon Gung-Ho’s solutions to their unique requirements:
A Web-based order entry system is needed for FVC’s worldwide sales force. Gung-Ho enhanced GOLD, the "Gung-Ho On-Line Data" system, so it could be used as an easy Web-based order entry system for FVC and its worldwide sales force. Orders placed in GOLD are electronically transferred to FVC’s complex accounting system and, once approved by FVC, they are electronically sent to GENIE, the "Gung-Ho Enterprise Network and Information Exchange" system, for order management and fulfillment by Gung-Ho.
Specific registration codes and license keys must be assigned by item number on an individual order basis. Gung-Ho enhanced GENIE so it could dynamically generate registration codes and multiple license keys based upon client-specific bills of materials. The codes and keys are generated at the line item and unit level and are used for both shippable and non-shippable (e.g., subscriptions, support, training, etc.) items. All codes and keys are client-viewable and searchable in GOLD.
Individual orders must be built on demand. Gung-Ho enhanced its Demand Publishing capabilities to include the on-demand printing of warranty cards with registration codes, multiple license keys, and bar codes based upon client-specific bills of materials for as few as one unit at a time. All codes and keys are client-viewable and searchable in GOLD.
Individual orders must be fulfilled on demand. Gung-Ho launched Go-Station – a workstation that provides
on-demand order processing and fulfillment for orders that require custom graphics and dynamically generated serial numbers, registration codes, license keys,
license agreements, support, training, or subscription information.
All custom-generated information is electronically transmitted via GENIE and accessed using GOLD.
Shipping documents must be available locally at FVC. Gung-Ho enhanced GOLD so FVC could locally view, print, and e-mail copies of the packing lists, commercial invoices, and shipper’s export declarations that accompany their shipments.
Accuracy is essential for FVC's frequent big-ticket orders. Gung-Ho utilized GOAL, "Gung-Ho's Order Allocation Logic,” GET IT, "Gung-Ho's Electronic Transfer of Information Technology," and GATE, "Gung-Ho's Automatic Transmission of E-mail," to ensure attention to detail, accuracy, and immediate processing and fulfillment of every custom-built order. Achieving this accuracy was essential for FVC because a single order could represent hundreds of thousands of dollars of revenue. Since this program started, FVC has not reported a single customer order that has been inaccurately built or fulfilled by Gung-Ho. | 
