News

Internet Trading Network Helps Distributors Grow and Prosper

Source: Distributor's Link, Winter 2002

Prophet 21 Trading Partner Connect, an Internet trading network, is rapidly becoming an invaluable tool for distributors. With more than 100 distributors as members, 200 manufacturers lines rationalized, and over $8 million of transactions processed since July 2001, Trading Partner Connect has gained acceptance within the supply chain.

Dead Stock Reduction

Streamlining the commerce process between distributors, manufacturers/suppliers, and customers, Trading Partner Connect increases sales and improve 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 fourteen 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 ecommerce 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 results almost immediately.

"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, NJ. "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 benefits 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 Corporation, 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."

About Prophet 21

Since 1967, Prophet 21 has been a leader in providing durable goods distributors with innovative, adaptive solutions essential for running their businesses. With more than 2,000 customers and 70,000 users conducting over $35 billion in highly complex supply chain transactions annually, Prophet 21 is a true business partner, helping companies of all sizes leverage technologies and maintain a competitive advantage. Through its business technology and services, Prophet 21 seeks to streamline customers' business processes and reduce transaction costs to maximize profit and growth.

Prophet 21 offers enterprise software solutions for Microsoft Windows NT/2000 and UNIX. Prophet 21's enterprise software solutions provide organizations with powerful, customizable applications designed to improve customer service and maximize their return on investment. In addition, the company offers an Internet trading network that streamlines the commerce process between distributors, their manufacturers/suppliers, and customers. All Prophet 21 solutions are backed by a complete line of professional services.

For more information about Prophet 21, visit www.p21.com or call 1-800-776-7438, ext. 3120.

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