EDI with SMEs

Distributor Hughes Supply uses ADX to connect electronically with small, midsize suppliers

Newark, CA  June 3, 2002  Wholesale distributor Hughes Supply has tapped Advanced Data Exchange (ADX) to handle all electronic data interchange (EDI) translation for its small and mid-sized suppliers.

Hughes Supply distributes construction and industrial materials, equipment and supplies to construction, industrial and public infrastructure markets in North America. The company distributes more than 240,000 products through more than 430 branches located in 34 states and Mexico.

A complex supplier base, made up of more than 13,000 companies, backs the company's vast supply network. A large percentage of these suppliers are unable to exchange documents electronically due to the costs and complexities of traditional EDI systems.

Recognizing an opportunity to improve business processes throughout its supply chain, Hughes tapped ADX's outsourced services to extend EDI to its entire supply chain. Working with ADX, Hughes is able to leverage its existing EDI systems to develop electronic trading relationships with its small and mid-sized suppliers to reduce trading errors, achieve greater efficiency, cut costs and increase profitability.

"As a leader in the distribution industry, Hughes is constantly seeking new approaches and technologies to support our commitment to business process efficiency," said Bob Machaby, senior vice president of supplier development at Hughes Supply. "With ADX, we've found a partner that directly supports our business goals and, for the first time ever, will cost-effectively bring EDI to all of our suppliers. This is a significant strategic initiative at Hughes and we're confident in ADX's ability to help us cut costs and improve business processes."

"Until now, only the largest suppliers have had the ability to connect with large distribution companies like Hughes, leaving the small and medium companies out of the EDI equation," said Andrew Duncan, president and CEO of ADX. "We've solved this problem, and by electronically enabling these suppliers, ADX will help drive cost reductions and efficiencies throughout the entire Hughes organization."