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Source: Industrial Distribution online, December 7, 2001

Prophet 21 Trading Partner Connect, an Internet trading network, has more than 100 distributors as members, 200 manufacturers lines rationalized, and more than $8 million dollars of transactions processed since July 2001, the company said.

Streamlining the commerce process between distributors, manufacturers/suppliers, and customers, Trading Partner Connect increases sales and improves customer service while reducing operating costs. Distributors benefit from dead stock reduction, lower EDI/VAN costs, and access to millions of items, enabling them to compete on a larger scale and improve customer service.

"I believe that Trading Partner Connect provides the first real technological opportunity to help distributors solve the dead stock problem," says Nick Powell, president of Salem Tools, headquartered in Salem, VA.

Salem Tools is one of 14 distributors trading dead stock on Trading Partner Connect.

Rationalized catalog

The secret to the success of Trading Partner Connect is a rationalized catalog with access to millions of items. Rather than expect members to conform to standard product codes or descriptions, Prophet 21 has created relationship management tools that act as translators for each member.

Upon joining Trading Partner Connect, distributors' inventory data is rationalized against this catalog. Once their data is rationalized, distributors may set up trading alliances with fellow distributors and manufacturers/suppliers. Exchange of information can take place in seconds through the network, making real-time e-commerce a reality.

Web based storefront solution

Distributors may also develop Web sites that provide on-line customer service as well as ordering capabilities 24 hours a day, seven days a week. Called B2B Seller, Prophet 21 has developed Web sites for more than 100 distributors. Distributors see almost immediate results.

"Our customer service representatives used to spend 70 percent of their time on the phone answering routine questions and putting out fires," says Michael LaPorte, vice president of Bergen Industrial Supply, based in Elmwood Park, N.J. "Today with B2B Seller, Prophet 21's Web-based storefront solution, we've significantly reduced this time and associated costs and our customers have access to all of their pertinent information online - 24 hours a day, seven days a week."

Manufacturer/supplier benefits

Manufacturers/suppliers benefit as well, by improving their ability to interact with distributors and more accurately predict consumer usage of their products.

"Trading Partner Connect reduces transaction costs for the distributor and the manufacturer/supplier," says Doug Lescarbeau, director of e-business for Henkel Loctite Corp., a national industrial manufacturer/supplier based in Connecticut.

"It is also a high-speed conduit for the business-critical information that improves customer service and support. We understand that by being more effective earlier in the supply chain our products will have greater value further down the supply chain. We believe this will give a direct positive benefit to our revenue," he said.

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