Client Success Story: eCommerce Supply Chain Procurement

Web-based procurement system linking suppliers with buyers

The Challenge

Many industries are fraught with supply chain inefficiencies. The procurement of materials and labor expenses represent a substantial cost for many businesses. The challenge was to help buyers and sellers in the construction industry reduce material procurement and labor costs in areas that include:

• Reduce shipments of incorrect product or incorrect quantity.
• Eliminate incorrect pricing.
• Improve shipment tracking.
• Improve procurement control through reconciliation and accurate management reporting.

To enable these goals, a highly scaleable eCommerce procurement system was developed that allowed seamless communication and integration between existing buying and selling partners in the construction industry.

The Solution

A comprehensive procurement system was developed in leading technologies that allow for platform independence and massive scalability. The system covers all phases of the ordering process from pre-order tasks to ordering, and PO management to post order advance ship notices and reconciliation. The system links existing buy-sell partnerships into a fully electronic framework to drive down procurement costs and maximize efficiencies. These tools that allow fast integration into existing transport mechanisms, such as EDI and existing financial systems to preserve customers' back-office investments.

The Technologies

• Application based on J2EE framework.
• Cross system integration using XML data transfer.
• WebLogic application server for hosting EJB’s and Java servlets/JSP’s.
• Multi-tier web application architecture encompassing database layer, database independent data access layer, business logic layer, facade layer for high security and transaction control, and web front-end allows for maximum flexibility and fast deployment.
• Initial database deployment on SQL Server 2000, independent data access layer allows deployment on other SQL databases including Oracle and Sybase.
• Web front-end implemented with model view controller (mvc) pattern to provide a clean separation between presentation and application flow logic.
• Junit frame work for automated regression testing.
• Transform and transport functionality for easy EDI integration.
• Data integration and validation utility for easy legacy back office systems integration.

The Results

• Buyers are able to electronically transact business with multiple selling partners.
• Easy searching of accurate pricing eliminates pricing errors.
• Electronic advance shipment notices can be sent from suppliers allowing buyers to verify shipment information before materials were transported.
• Electronic reconciliation capabilities allow buyers to easily reconcile many purchase orders with invoices, advance shipment notices, and material receipts to quickly catch any costly discrepancies.
• Through EDI links and systems integration, purchase orders, advance shipment notices (asn's), and invoices, seamlessly pass through to accounting system back-ends.