EDS Makes 7-Eleven Supply Chain Process Easy As 1-2-3
The systems integrator, based here, is implementing an XML-based integration system to automate the supply chain process for 7-Eleven's more than 1,700 suppliers, said Deepak Patel, integration service line director at EDS.
When EDS launched the project in November 2001, 7-Eleven was communicating with about 250 large suppliers through an electronic data interchange (EDI) system that would lose its vendor support in February 2002, said Patel. And small suppliers that couldn't afford the system were keeping track of their transactions with 7-Eleven the old-fashioned way,via printed invoices.
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EDS' Deepak Patel says new systems will automate process for 1,700 suppliers.
"There were a lot of manual processes around taking all these invoices, entering them into the system and dealing with payment," said Patel.
Keith Morrow, vice president of information systems at 7-Eleven, said his company wanted a solution that would accomplish two things: moving large suppliers from EDI to an XML-based framework and making it easier for smaller suppliers to take advantage of an automated supply chain process.
Even though the relationship between 7-Eleven and EDS stretches as far back as 1993, 7-Eleven still evaluated multiple vendor solutions before choosing a systems integrator, said Morrow, adding that the combined efforts of EDS and webMethods, the vendor with which EDS collaborated to develop its solution, sealed the deal. "They were the most aggressive; they had a proven solution," he said.
The EDS-webMethods team also priced its solution reasonably and did not try to rope its client into buying more software and hardware than it needed, said Morrow. "Everyone else wanted the whole enchilada,they wanted us to buy the server, the [developer seat licenses,and pursued the deal more that way," said Morrow. "EDS and webMethods were a lot more creative in how they put their solution together."
ANATOMY OF A SOLUTION
>> COMPANY: EDS, Plano, Texas
>> FOCUS: E-solutions consulting and service>> ANNUAL REVENUE: $21.5 billion
>> PROBELM and SOLUTION: 7-Eleven wanted to move large suppliers from EDI to XML, and allow smaller suppliers to take advantage of an automated supply chain process. EDS, webMethods deployed a solution that any supplier can use.
>> PRODUCTS& SERVICES USED: EDS services, webMethods Integration Platform
>> LESSON LEARNED:
> XML can provide a faster, less-expensive alternative to EDI.
> EDI and XML can be used together until supplier transition to XML.
> Migration to a new system doesn't happen overnight.
With the new system, which is being rolled out slowly, small suppliers can log on to a secure Web site and use an ID and password to submit invoices and track their progress, said Morrow. Large suppliers can transition from EDI to webMethods' XML-based Integration Platform over a period of time so that all of their systems eventually will be able to communicate with 7-Eleven using XML for data transfer.
"[The large suppliers initially will be able to transact using EDI the way they used to, but create a path that if suppliers want to get rid of those [EDI network charges, all the framework and everything is in place to get rid of those expenses and use XML," said Patel.
Morrow said the project is being piloted with a small number of suppliers. He acknowledged that the process to get all of 7-Eleven's suppliers hooked up to the system might take some time and expects the new system to be fully operational over the next six months.
"We wouldn't be naive enough to think we'd have a lot of the small players converted that fast," said Morrow. "We deal with suppliers that go only to a handful of stores."
On the whole, Morrow said 7-Eleven is pleased with the work EDS and webMethods have done.
"I think [the process was very collaborative," said Morrow. "We were able to describe our needs, work through the process and get the business deal taken care of. It was a really smooth process to put the solution together, get it implemented and get it rolled out to our customers."