The UK's leading construction firms and building suppliers have
joined forces to develop an XML-based order system to cut red tape
and costs in their supply chain.
Nick HuberIn a major step forward for common e-business standards,
builders, suppliers and software developers are to test an
electronic order system based on the Internet data exchange
standard XML.
Analysts hailed the industry initiative - called eBuild-XML - as
a turning point for the XML data standard, which has been seen as
the future backbone for exchanging information over the Web.
House building giants including Alfred McAlpine, suppliers such
as Jewson and software suppliers including SAP are all members of
the XML standards project. A pilot scheme is due to begin over the
next few months.
The new order standard will handle millions of pounds worth of
orders every month and replace the existing purchasing system,
which is largely paper-based. EBuild-XML will be based on an
existing message standard from accountancy software suppliers
association Basda and written into procurement packages.
The new standard should also mean that suppliers do not have to
re-key data into their back-office systems when they receive an
order from a building company.
John Miller, IT director for house builder Redrow, said, "We are
likely to save costs and reduce unnecessary administration for work
that needs to be carried out.
'To build a house we have to purchase very many items in the
standard paper-based way."
A raft of XML-based systems are emerging in the building
industry. But the sector lacks a common standard for all companies
to buy into, which can cause confusion for suppliers.
"You would have an incompatible set of standards and hubs
between suppliers [without the new XML initiative]," Miller added.
"To make any progress you need to get a critical mass
involved."
IT analysts welcomed the industry standards drive.
"It's a terrific idea and a step forward," said Mark Simmons, a
senior analyst at Bloor Research. "A lot of software companies are
providing XML as a base line and using XML messaging but the thing
that is missing is a standard for different applications."
nick.huber@rbi.co.uk