8/15/05

Vitacost Increases Throughput with HighJump Software`s Supply Chain Execution Solutions

Paul Demery , Managing Editor, B2B E-commerce

Fast-Growing Vitamin Retailer Benefits by Selecting Best-of-Breed System Over ERP Warehouse Modules

EDEN PRAIRIE, Minn.--Aug. 9, 2005--HighJump Software, a 3M company, the global leader in providing highly adaptable, best-of-breed supply chain execution solutions, today announced that Vitacost has achieved significant and measurable operational improvements using HighJump`s Supply Chain Advantage solutions. Vitacost, which sells vitamins as well as diet and natural health products through catalogs and over the Internet, implemented HighJump`s system in its Boynton Beach, Fla. facility. After evaluating several ERP warehouse modules, Vitacost selected HighJump`s solutions due to their breadth of functionality and HighJump`s cost-effective approach to making business process changes. Both are key to supporting the company`s rapidly growing volumes and ongoing competitive advantage.

Vitacost has seen strong improvements in productivity since implementing Supply Chain Advantage, increasing throughput approximately 33 percent while keeping labor constant. The HighJump system has helped streamline the receiving process for thousands of items arriving daily from more than 200 suppliers. Additional efficiencies have come in the area of inventory management. The system`s robust track and trace functionality empowers Vitacost to account for each item`s precise location at each stage of the supply chain, essential to carrying out fast recalls if required.

With its HighJump solutions in place, Vitacost has transformed paper-based operations into an optimized, wireless warehouse environment. The company recently implemented a pick-to-light system that interfaces directly with Supply Chain Advantage to direct picking and replenishment. Vitacost is also planning to roll the HighJump system out to multiple locations in the United States, followed by several facilities abroad.

"We did our due diligence in evaluating ERP warehouse modules, but HighJump`s best-of-breed solutions provided a level of functionality and adaptability the others did not," said Wayne Gorsek, CEO of Vitacost. "Vitacost is thrilled to see such immediate improvements with the system. It has allowed us to transform our supply chain operation into a truly forward-thinking entity that will effectively support our growth."

"Vitacost, like many HighJump customers, has found our best-of-breed supply chain execution solutions to offer robust, standard functionality that ERP warehouse modules simply do not include," said Chris Heim, president of HighJump Software. "We`re impressed with the results Vitacost has achieved and believe the company`s commitment to supply chain excellence will propel it to further growth and success."

About Vitacost
Vitacost.com, Inc., founded in 1994, is a leading direct-to-consumer retailer that competes in the over $16 billion vitamin, mineral, herbal, diet and miscellaneous dietary supplement market. Vitacost distributes approximately 6,000 products provided by over 200 nationally known manufacturers, as well as over 200 unique NSI branded products, developed by its wholly owned subsidiary, Nutraceutical Sciences Institute.

About HighJump Software, a 3M Company
HighJump Software, a 3M company, is the global leader in providing highly adaptable, best-of-breed supply chain execution solutions that streamline manufacturing and distribution from the point of source through consumption. HighJump`s tightly integrated solutions empower operational excellence in the warehouse and optimize the flow of inventory throughout the supply chain by facilitating collaboration with customers, suppliers and trading partners. These comprehensive solutions combine robust, standard functionality; a best practices-based implementation methodology; and a uniquely adaptable architecture that facilitates fast, cost-effective system modifications. The result: the industry`s lowest total cost of ownership for more than 700 satisfied customers worldwide. As an independent subsidiary in the 3M family of companies, HighJump leads the SCE software industry in financial strength and delivers on an unmatched commitment to innovation and quality. HighJump leverages these advantages to continually expand its solution footprint and empower operational excellence for domestic and multinational customers. For more information about HighJump, visit www.highjump.com.

About 3M -- A Global, Diversified Technology Company
Every day, 3M people find new ways to make amazing things happen. Wherever they are, whatever they do, the company`s customers know they can rely on 3M to help make their lives better. 3M`s brands include Scotch, Post-it, Scotchgard, Thinsulate, Scotch-Brite, Filtrete, Command and Vikuiti. Serving customers in more than 200 countries around the world, the company`s 67,000 people use their expertise, technologies and global strength to lead in major markets including consumer and office; display and graphics; electronics and telecommunications; safety, security and protection services; health care; industrial and transportation. For more information, including the latest product and technology news, visit www.3M.com.

3M, Scotch, Post-it, Scotchgard, Thinsulate, Scotch-Brite, Filtrete, Command, Vikuiti, HighJump Software and Supply Chain Advantage are trademarks of 3M.

Other trademarks or names may be the property of their owners.

Mike Devine
senior manager, public relations
HighJump Software, a 3M Company
952.563.5122
mike.devine@hj3m.com

Topics:

3M, business finance, Dow Jones Industrial Average, supply chain management, Technology

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