GENCO and Slingshot Solutions Announce Groundbreaking Retail Distribution Channel for the Internet
Pilot Program a Major Win for Retailer, Manufacturer and Consumer
Philadelphia, PA – October 1, 2001—GENCO Distribution System, one of the
world’s largest retail distribution services firms, and Slingshot Solutions
today announced a new venture that creates a new distribution channel for
retailers and manufacturers which allows auction bidders to always be
winners.
The agreement introduces Slingshot’s proprietary inventory disposition
system and incorporates it with Genco’s extensive liquidation channel
network, creating a major new distribution channel for retailers and
manufacturers over the Internet. The initial cooperative venture is an
auction management service that helps retailers and manufacturers move
substantial merchandise volume by matching their excess inventory and
refurbished/returned goods with bidders at online auctions.
In contrast to other online liquidation systems Slingshot Solutions
integrates into Genco’s vast global logistics and warehousing system, and
opens the door to a variety of existing distribution channels. With access
to multiple channels, including overseas liquidators, off-price retailers,
and online consumer auctions, Slingshot Solutions’ can provide its customers
an optimal mix of asset recovery. Additionally for online channels,
Slingshot Solutions offers a unique selection of branding options, managing
sales via the increasingly popular Slingshotman brand, or with any other
branding preference desired by the retailer.
The auction management service is designed to provide retailers,
manufacturers, and distributors with a new way to dispose of excess
higher-value consumer durables, such as electronic equipment. The Slingshot
service determines products that are appropriate to be sold through online
auctions, develops individual online promotions for each product and manages
all pre- and post-sale customer service. Proprietary Slingshot algorithms
define optimal promotion timing, placement, and dynamic pricing to ensure
the highest return for each product. GENCO completes the process by
providing a full range of logistics expertise and services to warehouse
products and ship them to consumers.
The Slingshot system creates a win-win scenario for retailers and consumers.
Retailers can offer slow-moving and returned merchandise directly to
qualified customers at prices substantially above the traditional bulk
liquidation alternative, without incurring costly fulfillment and service
obligations. Consumers can now bid on popular quality merchandise at
bargain prices well before the end of the product life cycle.
“GENCO has over 100 years of experience providing retailers with the highest
possible return on their inventory surplus and returned merchandise. The
Slingshot system gives us a new way to serve our clients, giving them the
best possible price for their merchandise,” said Tim Konrad, GENCO VP of
Alliances.
Slingshot Solutions, which will introduce a full suite of merchandise
pricing services over the coming year, currently provides the auction
management service to retailers, asset recovery companies, and
manufacturers.
The prototype of Slingshot’s auction management service was developed in the
fall of 2000 and was successfully launched in pilot tests in early 2001.
Since the pilot tests, Slingshot Solutions has effectively directed and
managed thousands of online auctions in partnership with GENCO Distribution
System. “Early testing of the Slingshot system has generated remarkable
results, such as more than tripling gross revenue on surplus inventory
liquidation,” said Bob Hornsby, Slingshot Solutions co-founder and
president.
About GENCO Distribution System
GENCO Distribution System is one of North America’s leading providers of
Product Life Cycle logistics services. GENCO services retailers and
manufacturers with a variety of direct and reverse logistics services. The
company’s direct logistics services include distribution center management,
warehouse management systems, co-pack and fulfillment operations and freight
forwarding. GENCO’s reverse logistics services include e-returns, return
center management, return center software, asset recovery services and
transportation management.
About Slingshot Solutions
Slingshot Solutions provides a patent-pending inventory disposition
technology for large multi-channel retailers, asset recovery specialists and
online auction providers. The Slingshot system increases liquidation
opportunities by helping vendors move high volumes of excess consumer
durables inventory through online consumer auctions. Slingshot Solutions is
headquartered in Philadelphia, PA. More information can be found at
www.slingshotsolutions.com.
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