The California and Hawaiian Sugar Refining Co. set up shop in 1906 in the town of Crockett, Calif., occupying a 19th century refinery that would become the headquarters of C&H Sugar. In those days, the refinery's 490 employees produced about 67,000 tons of refined cane sugar. Today, although C&H produces 700,000 tons annually and supplies about 8 percent of the U.S. market for refined sugar, the company still runs its business out of its headquarters at that same refinery building in Crockett, located on an inlet in the San Francisco Bay. But as the company prepares to mark the 100th anniversary of its founding, it has also been working to bring its information technology infrastructure into the 21st century by implementing enterprise resource planning and B2B integration technology that will ensure another 100 years of sweet success.
Looking for Scalable EDI
The heart of C&H's IT infrastructure, until recently, was a legacy mainframe system, along with an add-on application for electronic data interchange (EDI) with the company's customers through a value-added network (VAN). The mainframe's manufacturer had long since stopped providing maintenance for the system, and C&H relied on a single employee to support the equipment. A second employee supported the company's EDI messaging, doing a considerable amount of manual processing to keep the transactions running because of message failures and other hiccups in the system. In short, the legacy platform was "unsupported, unstable and very difficult to manage," according to Gary Walden, chief information officer at C&H.
The sugar company originally brought in Walden at the end of 2002 to evaluate C&H's options for replacing the mainframe system with an up-to-date enterprise resource planning (ERP) system. C&H wanted not only to gain better visibility into its production and inventory by deploying a new system but also to be better able to collaborate with its trading partners and to be more responsive to its customers. After evaluating various systems, in early 2003 C&H selected a hosted version of mySAP ERP system from German enterprise solution provider SAP, and the company asked Walden to stay on to run the project.
With the decision made to go with SAP, C&H began looking at options to update its EDI network, too. Electronic data interchange is mission-critical for C&H, particularly on the retail side of the business, where as much as 70 percent of incoming orders are transmitted electronically via EDI. In addition, outside warehouses that receive and ship C&H products on the company's behalf also wanted to begin using EDI to communicate, so the sugar company needed a solution that would allow it to scale up its EDI usage over time.
The Value of a Relationship
After evaluating the different vendors offering B2B connectivity solutions and services, C&H ultimately tapped SEEBURGER, a company founded in 1986 and with U.S. headquarters in Atlanta. Walden says that the choice fell to SEEBURGER to an extent based on a side-by-side comparison of features with the one other provider that C&H considered. But what closed the deal in SEEBURGER's favor, Walden says, was the solution provider's close relationship with SAP. "Technically there were differences between the two products, and there were some pros and cons," Walden explains. "But when you look at third-party products you look at a couple of business factors that are beyond the technology, regarding the longevity of the company as well as their relationships with your other technology vendors."
On the first point, C&H eliminated several vendors out of the gate because their customer bases were still small and their long-term survival looked uncertain. On the second point, Walden says, "From everything I could see, SEEBURGER had a much closer and better working relationship with SAP." SEEBURGER, in fact, has been working with SAP for more than 10 years and has more than 1,500 joint customers with SAP as integration vendor.