October 8, 2002, 12:00 AM

Paying to connect small suppliers to a web-based supply chain pays off

Trilegiant, a distributor of merchandise for loyalty programs, is saving "hundreds of thousands of dollars" after paying for small suppliers to enter its web-based supply chain, the company says.

Kurt Peters

Executive Editor

 

Many retailers have turned their attention to small suppliers in an effort to move their dealings with them onto the web and make them more efficient.

Some are eager enough to become totally web-enabled in their supply chain that they are willing to underwrite some of the costs of connecting with their small suppliers. Trilegiant Corp., a distributor of merchandise for loyalty programs, is saving "hundreds of thousands of dollars" after paying for small suppliers to enter the web-enabled supply chain, Evan Guttman, vice president of retail operations, tells Internet Retailer.

Two years ago, Trilegiant spent a few hundred thousand dollars to subsidize the set-up fees for small vendors to link into SPS Commerce Inc.’s supply chain translation program. Small vendors can now submit their data to Trilegiant in any format they want through SPS, and SPS will translate it into the format that Trilegiant desires.

Guttman says the investment has already paid for itself.

 

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