Boeing Targets Supply Chain Integration

Adopts Hubspan solution as platform for eBuy@Boeing e-business initiative

Seattle — March 13, 2003 — The Boeing Co. is using an integration solution from Hubspan as the technology and service platform behind eBuy@Boeing, a companywide e-business initiative to connect the aerospace giant to its supply base through the Internet.

With more than 20 disparate procurement systems operating independently in over 50 global sites, more than 8,000 worldwide trading partners targeted for integration utilizing electronic data interchange (EDI) and XML technologies, millions of transactions processed annually, and more than 40 unique supply chain and financial business processes targeted for automation with Exostar, an aerospace trading exchange, Boeing required a comprehensive, secure and highly scalable external integration solution.

Boeing selected Hubspan after an in-depth evaluation of multiple integration approaches, such as value-added networks (VANs) and software-based methods. "After a detailed analysis and evaluation of whether Boeing should develop middleware as a core competency or outsource to third party with an established competency, we decided to outsource," said Paul Pasquier, Boeing director of the eBuy@Boeing program. "Hubspan's selection was based on their ability to meet our challenges by implementing cost effective, reliable technology in a manner that brings about high customer satisfaction."

In addition to Boeing's key selection criteria, rapid time to market was another driver of the initiative, as there were a variety of external factors requiring aggressive implementation timelines. With Hubspan, Boeing was processing live transactions in a production environment in four months.

Hubspan said that its service-based integration solution enable Boeing business systems to exchange transactions with diverse trading partners around the world through a single point of integration. The initial deployment has involved real-time integration with a range of suppliers through Exostar and an EDI VAN.

Jon Derome, program manager at technology consultancy Yankee Group, cited the Boeing implementation as an example of a company deriving business value by working to reach its entire supply chain community through a single point of integration. "Companies are looking to suppliers like Hubspan to deliver unified net connections that leverage existing technology investments, minimize total cost of ownership of integration and maximize supply chain responsiveness," Derome said.