Kurt Peters

--Direct-to-Consumer, Buyer-Managed and Vendor-Managed Inventory in New Suite Aimed at Improving e-Commerce Transactions for Companies and their Small- to Mid-Sized Suppliers--

St. Paul, Minn., November 6, 2001 - SPS Commerce, the leading Supply Chain Integration Service provider, today announced the launch of three multi-channel order management packages as part of its Supply Chain Integration Service. SPS` Direct-to-Consumer, Buyer-Managed and Vendor-Managed Inventory packages comprise the new suite of Order Management transactions that are designed specifically to improve e-commerce transactions between large buyers and their small- and mid-sized (SME) suppliers in the retail and distribution markets.

Retailers, catalogers and distributors have found new avenues to expand their sales, including the web storefront channels, and have recognized that these avenues often require suppliers to deliver goods directly to the consumer. However, delivering products directly to consumers bypasses the buyer`s warehouse inventory control and information systems, making it difficult for enterprises to control vital purchase order, billing and delivery information. SPS` Direct-to-Consumer hosted Internet service enables suppliers and buyers to electronically share order, tracking and payment information for low unit per order shipments, reducing costly inventory overhead and fulfillment lead times of all orders regardless of size or destination. SPS Commerce is currently providing this new service to several companies, including W. W. Grainger, Inc., the leading North American provider of maintenance, repair and industrial supplies.

"SPS` support for multiple order management models is appealing to Grainger for communicating documents electronically to both the drop ship and ship to inventory portions of our business. The new Direct-to-Consumer service helps us effectively manage our automated supply chain," said Fred Loepp, vice president, product management at Grainger.

Each of SPS` Transaction Services packages` Order Management offerings are browser-based and automated to provide a cost-effective solution for conducting electronic commerce with their largest customers to small and mid-sized suppliers.

The Multi-Channel Order Management offerings include:

· The Direct-to-Consumer service - Due to logistics requirements inherent to direct-to-consumer transactions, the vital order information bypasses the inventory step at the retailer. SPS helps suppliers share order information while drop shipping orders on behalf of their large retail and distribution customers.
· The Buyer-Managed Inventory service - Allows retailers to directly manage their inventory where suppliers ship their orders to inventory at the warehouse, distribution center or to the store;
· The Vendor-Managed Inventory service - Empowers suppliers to be responsible for placing orders that keep their retail and distribution customers inventory level at an optimal level.

"Enterprises need to have all the relevant order information, regardless of whether its shipped direct-to-consumer, to the warehouse or to the store, available at their fingertips," said Jim Frome, SPS Commerce executive vice president and chief strategy officer. "Providing the order confirmation, logistics, inventory, delivery and status information in a timely manner via a hosted Internet service allows both suppliers and buyers to improve their business processes and maintain positive relationships with their customers."

SPS` supply chain services are designed specifically for small to mid-sized enterprises that have traditionally exchanged product information with large buyers via phone, fax or mail. Suppliers who use SPS` Buyer-Managed and Vendor-Managed Inventory services pay a low, flat monthly fee with flexible contract terms and seasonal conditions, making adoption affordable and seamless to implement. The Direct-to-Consumer service incorporates a restructured pricing model that takes into consideration the unique nature of the direct-to-consumer order process, where the cost of processing low unit per order transactions is reduced.

"Enterprises are increasingly looking for vendors who are able to service multiple channels within their organization," said Jon Derome, Senior Analyst, BtoB Commerce & Application Strategies of The Yankee Group. "With this new offering, SPS Commerce demonstrates in-depth understanding of the relationships, business concerns, and complex processes that drive transactions between large buyers and their small- to mid- sized suppliers."

For more information on SPS` new Multi-Channel Order Management offerings, please visit the Company at www.spscommerce.com or call (651) 603-4400.

About SPS Commerce

SPS Commerce is the leading Supply Chain Integration Service provider. The Company specializes in helping large enterprises optimize their supply chains by providing transaction management, application integration and supply chain services to their small- and mid-size trading partners via a hosted Internet service. It has helped key enterprises, including Grainger, Kmart, Target Corp., REI and Dura Automotive, electronically enable and integrate over 35,000 small and mid-sized trading partners into their e-supply chain. SPS Commerce is headquartered in St. Paul, MN. For more information, visit the Company at www.spscommerce.com or call (651) 603-4400.

SPS Commerce and the SPS Commerce logo are the property of SPS Commerce, Inc. All other names and trademarks are the property of their respective holders.



drop shipping, Online shopping, Purchasing, supply chain, Technology Internet