Snap-on Inc. Chooses Client/Server Solution from HP and Baan to Replace Legacy Mainframe System; New System Integrates Supply Chain, Order Processing and Distribution for Improved Competitiveness

Business Wire, August 6, 1996

ANAHEIM, Calif.--(BUSINESS WIRE)--Aug. 6, 1996--Hewlett-Packard Company today announced that Snap-on Incorporated of Kenosha, Wis., is implementing an HP-designed, open, distributed-computing architecture that runs Baan's manufacturing-solution software. The expansive client/server computing solution, which runs all of Snap-on's business-critical applications, will completely replace the company's legacy IBM mainframe-based system. The announcement was made here at the HP World '96 Conference and Expo, which is being held from Aug. 4 to Aug. 9.

The new system, currently installed in seven of Snap-on's 37 North American sites, runs Baan applications and Oracle database software on HP 9000 servers. Snap-on, which provides solutions to the automotive repair industry, is replacing all corporate applications in the migration to client/server computing. These include financial, distribution, manufacturing, order-entry and order processing packages.

Snap-on said its primary objective in using the HP system is to enhance communication within the company and with suppliers and franchisees by integrating all key corporate functions. The new system, which provides an easy-to-access, timely flow of information, focuses on enhanced supply-chain management and customer satisfaction.

"We needed better information to run our business, to be more responsive to our customers and to work more closely with our suppliers," said Larry G. Panatera, vice president and chief information officer of Snap-on. "Our customers, our franchisees and our industrial sales reps are concerned primarily with receiving our products when they need them. With the new system, we can hook our suppliers directly to that customer demand. We can make sure the product shows up at the right time at the right place. And if that's not possible, we can, at least, tell the franchisees when to expect it."

The HP and Baan solution tracks supply information for the approximately 20,000 products Snap-on sells, including those it manufactures and those supplied by other vendors. Supply information is provided by the external vendors and by Snap-on's manufacturing plants. The client/server system lets the company use a single set of databases to track products from the time material arrives at a Snap-on plant to the time a customer receives an item, with automatic tracking of all related financials.

This solution replaces a mainframe-based environment in which distribution, order processing and finance all used separate systems that could not communicate with each other. Today, the company can track the flow of supplies easily while anticipating and satisfying demand.

"Snap-on is world-renowned for its high-quality products and services," said Keith E. Goodwin, general manager of HP's Computer Systems Organization America's Sales and Marketing. "With HP's Professional Service Organization's assistance, the company has successfully created a conduit between its customers and suppliers. The client/server system significantly strengthens Snap-on's supply chain. It helps the company's franchisees manage their businesses by giving them better information about what they're buying, what they're selling and how they can leverage the parent company's financial capabilities."

Three HP 9000 T520 business servers are located in Snap-on distribution centers throughout the United States. The distribution centers are connected via wide area network to customer-service centers, which handle order entry, franchisee accounting and customer service. Each distribution center has its own Oracle database engine running on an HP server.

In addition, Snap-on has installed 18 HP 9000 Model K410 servers in its eight customer service centers and in 11 manufacturing plants. In the plants, these platforms act as both application and database servers. In the customer-service centers, they act as application servers feeding the database server.

To augment the new system, Snap-on says it is developing a comprehensive electronic-commerce strategy using electronic data-interchange technology from Baan. The system is expected to further enhance supply-chain management by electronically providing suppliers with Snap-on inventory information.

For future projects, Snap-on said it plans to continue to work closely with HP's Professional Services Organization. "In general, companies make the mistake of putting the hardware vendor toward the end of the selection process, when it should be at the beginning," said Snap-on's Panatera. "We believe it is important to leverage HP's client/server expertise at the early stages of software evaluation to streamline the overall implementation. HP understands the intricacies of implementing client/server software and managing the performance of various application and database packages."

With more than 10,000 employees worldwide, Snap-on Inc. is a total solutions provider to the automotive repair industry. The company services more than 300,000 repair shops in the U.S. and Canada and sells it products worldwide through a sales organization of 5,400 franchisees and sales representatives. In fiscal 1995, the company enjoyed revenue of $1.3 billion.