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Information Builders > Case Studies > Murphy-Hoffman Company: Real-Time B2B Communication Initiatives

Murphy-Hoffman Company: Real-Time B2B Communication Initiatives

Technology Category

Application Infrastructure & Middleware - API Integration & Management
Application Infrastructure & Middleware - Data Exchange & Integration

Applicable Industries

Automotive

Applicable Functions

Procurement

Use Cases

Inventory Management
Supply Chain Visibility

Services

Software Design & Engineering Services
System Integration

The Challenge

Murphy-Hoffman Company (MHC) was facing challenges with its manual B2B processes, particularly in the exchange of common business documents such as purchase orders and parts catalogues. The purchase-order process was governed by an RPG program, which built a flat file and sent it to Caterpillar, one of its leading parts suppliers, via FTP. Caterpillar parsed the file and used e-mail to relay individual orders to its dealerships. Each Caterpillar supplier had to manually rekey the purchase-order information and fulfill the order, and MHC often lost track of the order status details. In other instances, MHC representatives had to phone Caterpillar to request parts from inventory, keeping customers waiting for as long as 20 minutes to determine availability. MHC wanted to use XML and Web technologies to streamline the parts-ordering process by automating the exchange of purchase orders and related business documents.

About The Customer

Murphy-Hoffman Company (MHC) is one of the largest dealers of Kenworth trucks in North America. The company has established a multistate network of Kenworth dealers, providing more than 40,000 customers with a full range of trucks and truck-related services. The company operates in the central United States with more than 33 dealerships, three full-service transport refrigeration locations, 12 full-service leasing and rental operations, one maintenance facility, and a finance company. MHC takes advantage of new technologies to meet customer needs. Each of its dealers is linked directly to manufacturers’ parts distribution and technical centers via frame relay, and the IT staff has developed customized software solutions for a variety of customer needs, from bar-code scanners to vehicle dispatch systems to just-in-time inventory management applications.

The Solution

MHC decided to establish a general-purpose EAI architecture for industry standards to create automated workflow processes between MHC and its major vendors. They purchased the iWay Adapter Manager along with the iWay Read/Write Adapter for DB2/400, iWay Utility Adapter Bundle, iWay ANSI X12 EDI Adapter, and the iWay Internet Protocols Adapter. They also hired iWay Consulting to develop a prototype for the purchase-order process. The team began the project on November 10, 2003, and completed the bulk of the integration work just four days later. The new iWay-driven purchase-order process is now online, essentially making Caterpillar’s inventory an extension of MHC’s inventory. Customers learn about the availability of the parts they need immediately. This not only helps to boost sales, but also increases customer satisfaction.

Operational Impact

The new iWay-driven purchase-order process is now online, essentially making Caterpillar’s inventory an extension of MHC’s inventory.
Customers learn about the availability of the parts they need immediately. This not only helps to boost sales, but also increases customer satisfaction.
MHC has used iWay to complete several other EAI projects. For example, iWay enables MHC to receive and process dozens of EDI 810 invoices each day from PACCAR, the automotive manufacturer that produces Kenworth trucks. They also use iWay to combine parts information from many different vendors into a common electronic catalogue.

Quantitative Benefit

The first application, created in just 10 days, met rigid requirements.
MHC developers estimate it would have taken between 90 and 120 days to accomplish what took only 10 days using iWay.