UCS rolls out new business-to-business solution at JD Group

Universal Computer Services, a division of the JSE-listed UCS Group Limited, has developed a new B2B e-commerce solution which is being rolled out for the JD Group. This will enable the retailer to streamline business transactions with their furniture manufacturers. In future, suppliers will receive orders and in turn, make order confirmations via the Internet, allowing JD Group to drive its stock management operations digitally via an innovative e-commerce solution.

The new B2B order management system interfaces seamlessly with JD Group`s existing application software solutions developed by UCS, generating orders electronically to enable speedier business transactions.

Operating the Bradlows, Russells, Joshua Doore, Price & Pride and Giddys Electric Express chains, JD Group recently agreed to start with a pilot in collaboration with suppliers Defy, Sealy and Panasonic, in order to test the software`s resilience for 30 days before utilising it for `upstream` transactions.

"Previously, orders had to be faxed to suppliers. Whereas quantity and quality instructions had to be confirmed telephonically, with follow-up calls to determine progress and delivery, the new software provides a number of checks-and-balances where the enforced business discipline now reassures us that orders are being processed according to specifications," explains Alec Goodman, JDG Trading Director: Special Projects.

The furniture industry is not a highly transacted commercial environment, and bulk orders at JD Group vary between 500 and 600 per business unit per month. "Orders are generated both centrally and at store level and passed on in real-time to head office, where stock requirements are centralised. This is then communicated to suppliers as bulk orders, where the software generates an electronic order using industry-standard XML technology, which is sent via the Internet to the supplier. Eliminating error, the methodology also allows suppliers to prioritise incoming orders," says Goodman.

"Ongoing technological advances necessitate that manufacturers conform to the changing environment. To cater for different levels of computing sophistication among suppliers, Universal`s solution offers three possible trading methods: firstly, sending the order directly via the Internet to the supplier who executes it via an e-commerce front-end; secondly, sending the order via a trading exchange which will then forward it to the same front end processor; and lastly, by accessing a customised, secure Web page to select the applicable transactions and business terms."

Acting as an extension to JD Group`s own systems, the solution is non-intrusive since the electronic transaction interfaces with the suppliers` front-end, and only where permissible, enters through the firewall into their manufacturing software systems.

Easirun, another UCS Group subsidiary company, has developed the front-end solution that runs at the supplier`s side and is in a position to provide the software and value-added services to assist the manufacturer to take advantage of this B2B initiative.

"In essence, JD Group and UCS are bringing an affordable solution to enhance the manufacturer`s supply chain activities. Benefits of the B2B-system include time-savings and greater transparency, allowing a complete order trail by accessing the web browser. The other benefits will materialise after the pilot phase when additional transactions like proof-of-delivery, invoices and electronic payments are incorporated," explains UCS Group director, Peter Terblanche.

"We believe that we can add value to our clients. The B2B solution can act as a platform for launching new logistic solutions in future, as well as improving planning activities at manufacturing level. Standardisation will lead to a simpler solution over time; one which may be beneficial to the entire furniture industry," Terblanche concludes.