News

Internet Trading Network Can Help Reduce Dead Stock

YARDLEY, PA, November 1, 2001 -- Prophet 21, Inc. today introduced Trading Partner Connect version 6.0, the latest version of the company's Internet trading network designed to help distributors and manufacturers/suppliers streamline the commerce process in a collaborative environment.

In addition to the already established core Trading Partner Connect functions - including eliminating electronic data interchange (EDI) value added network (VAN) charges and trading partner management - v6.0 addresses the issue of dead stock.

"For more than 34 years, Prophet 21 has watched distributors struggle with the negative impact dead stock has on their businesses," says Chuck Boyle, president and chief executive officer of Prophet 21. "Using the knowledge we gained from our observations and working with distributors, we developed a technological solution to this problem."

Prophet 21 recently conducted a study of 16 Trading Partner Connect members to determine the relationship between the dollar amount of dead stock removed from the distribution channel and the bottom line benefit realized by both the buying and selling distributor.

The study concluded that Trading Partner Connect can save distributors carrying costs, while at the same time, depending on the discounts given to the dead stock, provide additional margin.

"Specifically, the 16 distributors in this study saved more than $83,000 in carrying costs and added $20,000 to $40,000 in additional margin," says Boyle. "When you take those numbers and apply them to the more than 2,000 distributors and more than 6,000 supplier/manufactures that Prophet 21 is connecting through Trading Partner Connect, the issue of dead stock is significantly reduced."

Distributors agree. "For years, distributors have been unable to properly deal with the issue of dead stock," says Lee Eagan, Jr., chairman and CEO of Oliver Van Horn Inc., LLC, based in New Orleans, LA. "With the advent of Trading Partner Connect, we are able to have identified for us items that are 'dead' at our company, but are actively moving at other distributors in the country. With an estimated 20 to 25 percent of many distributors' inventory dead, or not moving, this is a tremendous resource that will, in part, re-capitalize and reenergize the industry. Having already sold dead inventory utilizing Trading Partner Connect, I am excited about this opportunity."

Pricing and Availability

Trading Partner Connect v6.0 is currently available. For additional information and pricing, please visit www.p21.com or call 1-800-776-7438. Existing customers can contact their Prophet 21 Inside Sales Representative directly.

Prophet 21 Internet Trading Network

Trading Partner Connect streamlines the commerce process between distributors, manufacturers/suppliers, and customers. Like Prophet 21's enterprise solutions, it enables distributors to increase sales and improve customer service while reducing operating costs. Trading Partner Connect offers several components:

• B2B Marketplace - Provides relationship management tools and a rationalized catalog with access to millions of items.
• B2B Buyer - Streamlines the purchasing process between manufacturers/suppliers and distributors.
• B2B Alliance - Provides distributors with the opportunity to engage in collaborative commerce with other distributors of their choice and paves the way to clear away excess inventory or dead stock by allowing them to sell or purchase items amongst themselves.
• B2B Seller - Provides distributors with a fully hosted and integrated Web-based storefront solution that services existing and prospective customers, 24 hours a day, seven days a week.
• B2B Gateway - Provides interconnectivity to other purchasing platforms and trading communities with whom distributors choose to do business

Prophet 21 CommerceCenter and Prophet 21 Acclaim are fully interoperable with Trading Partner Connect.

Press Contact Kimberly Meiser Activant Solutions, Inc. 215-493-8900, ext. 3170 kim.meiser@activant.com

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