The Solution: A Web-Based Supply-Chain System

As a result, the company conducted a survey to identify its customers' key requirements for an EDI system. The most apparent were the need for stock information, order-progress information, and order entry. To address these needs, H&R Johnson worked with Microsoft Certified Solution Provider (MCSP) ABS to create an e-commerce solution.
Using advanced client/server environment (ACE) from ABS, the two companies developed a Web-based supply-chain system using Microsoft Windows NT® Server as a gateway to the existing AS/400 system. Because ACE is a development environment for Microsoft Windows® operating systems, it enables programmers to concentrate on the business logic and user interface by generating much of the application code automatically.
The business-to-business system, which is based on the Microsoft BackOffice® family of server applications, allows H&R Johnson's smaller distributors, which could not previously access the EDI system, to enter orders via the Internet, check stock levels, and track the progress of their orders.
Mike Coxon, IT manager for H&R Johnson, says, "An EDI system is fine for many of our larger customers but we have other, smaller distributors who do not have the technical infrastructure or know-how to work in this way. This is where our online ordering system is so useful. Any shop can check stock, place an order, and track delivery for no more than the price of a local phone call."
Because its distributors already hold an account with the company, H&R Johnson has not had to address online payment and security. Once an order is placed, the credit control department co-ordinates invoices in the same way that it would for orders made by fax, mail, or telephone.
ABS marketing manager Sue Banks says, "The project proved that business-to-business Internet commerce was being successfully implemented. Right from the start, the company achieved real value from its virtual supply chain and this value has not diminished. This is largely thanks to the reliability and quality of the Microsoft products which were used and which allowed the company to adapt and integrate its existing infrastructure with the online commerce systems."
Thanks to the online success of the Web-based stock control and ordering system between H&R Johnson and its distributors, the company more recently decided to extend the system to include its own suppliers. Once again the company enlisted ABS. A prototype has been developed which will enable H&R Johnson's established suppliers to monitor internal stock requirements. The system, which will integrate packaging and raw materials suppliers into the supply chain, will mean that the company no longer needs to devote unnecessary effort to monitoring stock levels and processing orders. While these materials are critical to its business, the company cannot hold large amounts of stock. Improving the lines of communication with its suppliers means that they can take responsibility for anticipating when the stock will need replenishing.