End-to-End Visibility and Control over Inbound and Outbound Logistics Operations Allows Heinz to Transform How it Serves its Customers and Suppliers

San Antonio, Texas, Sterling Commerce Customer Connection – April 29, 2009 – At its customer conference, Sterling Commerce, an AT&T Inc (NYSE:T) company, today announced that H. J. Heinz Company (Heinz) has transformed its logistics operations with Sterling Commerce business integration and supply chain execution applications.  Heinz now manages its complex logistics network of more than 1,200 unique suppliers shipping to more than 20 U.S. plant locations and then on to hundreds of customers from end-to-end.  With this transformation, Heinz now utilizes its carriers more efficiently, gets full real-time visibility into associated costs and physical movements, improves service to its plants, and serves as a better supply chain partner to its suppliers and customers.

Heinz, one of the world’s leading marketers and producers of healthy, convenient and affordable foods specializing in ketchup, sauces, meals, soups, snacks and infant nutrition, has implemented components of Sterling Business Integration Suite and Sterling Transportation Management System (TMS) from Sterling Selling and Fulfillment Suite as the foundation for its world-class logistics operations implementation.  In 2006, its inbound logistics operations were managed by Heinz’ suppliers and carriers. However, Heinz had a vision that by taking control of those operations, the company could gain synergies between its raw goods and finished goods sides of the business.  The company recently implemented the freight payment module of Sterling TMS, a final step that completes the end-to-end process by automating the freight invoicing and payment processes with its carriers.

“Gaining control over our inbound logistics has been ‘game changing’ for Heinz.  Connectivity was key.  We started to gain a clearer view into the way our network works, and saw the easiest and greatest opportunities for making the network more efficient with minimal service interruption,” said David White, manager, dry warehousing, for Heinz.  “From there, Sterling TMS provided us with complete control over our inbound freight, enabling us to take advantage of cost-savings opportunities more efficiently.”

It was Heinz’ vision to have a single system manage all the company’s logistics operations – from order through fulfillment – involving more than 1,200 unique suppliers shipping to more than 20 U.S. plant locations and then on to hundreds of customers.  The company started with two components of Sterling Business Integration Suite –Sterling Integrator (formerly Gentran Integration Suite), a flexible integration solution, and Sterling Collaboration Network, the company’s hosted service that provides secure connectivity and collaboration between businesses – to gain connectivity between Heinz and its business partners. The company then implemented Sterling TMS, the world’s largest on-demand transportation management solution, for its freight payment, auditing, and claims management functions provided in a manage-by-exception environment.

"We needed to manage our transportation operations by exception. A network the size of Heinz is almost impossible to manage any other way," adds White.  With the new systems, Heinz has been able to decrease planned downtime by more than 80 percent and increase efficiency gains for on-boarding trading partners and administering the system by more than 30 percent.

“Heinz demonstrates the value manufacturers can achieve by optimizing their business collaboration network,” said Richard Douglass, global manufacturing industry executive, Sterling Commerce. “By streamlining their inbound logistics process with Sterling Commerce integration solutions and applications, Heinz is better prepared to minimize costs, inventory and achieve perfect orders.”

About Sterling Commerce
Sterling Commerce, an AT&T Inc (NYSE:T) company, helps companies optimize and transform their Business Collaboration Network to accelerate revenues and reduce costs.  More than 30,000 customers worldwide use Sterling Commerce applications and integration solutions to connect, communicate and collaborate inside and outside their enterprise.  Headquartered in Columbus, Ohio, Sterling Commerce has offices in 24 countries. More information can be found at www.sterlingcommerce.com.

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