Reference no: EM131311 , Length: Word Count: 2000

Case Study: Equip Hire

Equip Hire is a commercial and domestic equipment hire company with 11 branches across metropolitan Sydney, Newcastle, and Wollongong. The family owned business was started 18 years ago by two brothers. The company employs 78 staff in a variety of fulltime and part time roles. Equip Hire recorded turnover of just over $18 million for the financial year ended 2012. About eight years ago the company invested in a sales and hire system (Hire IT). Unfortunately the Hire IT system is becoming increasingly difficult to maintain. The Hire IT system has proved also difficult to modify for the changing business environment. Moreover, the business wishes to take equipment hire bookings and payments via the internet and the Hire IT system does not readily support online transactions.

Approximately 70% of the sales are to the commercial sector (i.e., construction, engineering, and building trades), although home DIY sales are now the fastest growing part of the business. Equip Hire has a range of building and engineering tools (e.g., concrete cutters, chainsaws, nail guns, wielding gear, and dumpy levels), plant (e.g., compressors, mobile platforms, generators, small excavators, and trenchers), and other equipment (e.g., glassware for party hire, tables and chairs, high capacity heaters, and marquee tents).

The costing for large and long term hires is carried out on an ad hoc basis using spreadsheets. Managing the company's inventory of plant for hire is a particular challenge. The company finances most of its large plant with third parties, thus it needs to ensure high equipment utilisation rates (i.e., sales) to service this financing. The company is struggling to make good decisions around how much plant they should hold (in total and by location) to meet the demand for hire. The demand for plant and equipment hire is seasonal and also affected by fluctuating construction activity. The company has recognised that the quality of equipment checking and maintenance is not consistent enough to ensure good levels of ongoing repeat customer business.

The business uses QuickBooks to run their accounts and equipment maintenance is run through an Access database. The delivery and pick up of equipment is carried out manually using carbon-copy receipt books. This data is then manually transferred into Hire IT. For general computing the company operates desktop and laptop computers operating Microsoft XP and Office 2007.

The company directors recognise that a review of the Equip Hire's business information system needs is required, especially given that the Hire IT system is getting to the end of its useful life. You have been asked by the Equip Hire's directors to write a preliminary report that: (a) outlines the company's business information system (BIS) requirements, and (b) makes recommendations on the core systems that would meet these BIS requirements.

Key questions to address:

1. What are the main activities that the business undertakes?

2. Where in the business are the crucial decisions made?

3. What types of information does the business require to operate successfully?

4. What are the requirements for the:

• Transaction processing system?
• Sales and customer relationship management (CRM)?
• Inventory?
• Planning and scheduling?
• Accounts?
• Decision support and management information systems?

5. What are the different types of business information systems could be used to effectively meet these requirements?

6. What core information systems do you recommend the business adopt?