Northern Tool + Equipment automates its supply chain with sps commerce’s community enablement

Kurt Peters

Leading Do-It-Yourself Retailer to Gain Better Visibility to Orders from More Than 700 Vendors

Minneapolis, Minn., April 25, 2005 – SPS Commerce, the market leader in hosted supply chain and Electronic Data Interchange (EDI) services, announced today that Northern Tool + Equipment Co., a leading supplier of high-quality tools, light industrial equipment and do-it-yourself supplies, will electronically integrate more than 700 members of its supplier community by July 1, 2005, using SPS Commerce’s Community Enablement service. The rollout will include integration with Northern’s internal Oracle (formerly JD Edwards) systems.

With more than 50 retail stores nationwide, combined with a thriving catalog and online business, Northern saw significant advantages to increasing the number of its suppliers sending order information including advance ship notices (ASNs) electronically. Integrating this information from its vendors will enable Northern to have better control and visibility of its incoming orders and ensure a high level of customer service for its drop-ship orders.

“With business continuing to grow rapidly for our company, we wanted to streamline the order management process with our vendors,” said Mark Kaufman, vice president of merchandising, Northern Tool + Equipment Co. “We are well on our way to achieving the goal of having virtually all of our repeat suppliers’ transactions automated by July 1st. Having worked successfully with SPS in the past, we knew they could execute a successful campaign and offer our vendors a cost-effective and simple means to test their EDI solution or EDI-enable them using SPS’ hosted EDI software. Our vendors have been pleased with SPS’ professional approach and expressed their appreciation for introducing them to SPS Commerce as a reliable EDI solution without the traditional costs of hardware, staffing and more.”

SPS’ Community Enablement campaign will enable more than 700 of Northern’s regular vendors to conduct electronic transactions with the company in 2005. The program includes four distinct order management models including Ship to Consumer, Ship to Store, Ship to DC and Ship to DC Cross-Dock. Suppliers may use SPS’ Testing Service to certify their existing solution, or they can choose to employ SPS Commerce’s hosted EDI services. With thousands of suppliers already online, SPS Commerce’s hosted EDI service is proven to eliminate the time and expense of implementing an in-house EDI and enables organizations to more rapidly comply with customer requirements.

“We are pleased to have Northern and its suppliers as a part of our community,” said Archie Black, chief executive officer of SPS Commerce. “With a proven program to test or EDI-enable suppliers of any size, SPS Commerce aims to make EDI enablement as simple, cost-effective and hands-free as possible for the vendor and the retailer alike. In addition, by using SPS’ reporting and alert capabilities, Northern can easily and efficiently monitor the status of their orders and be alerted to any exceptions needing their attention.”

About Northern Tool + Equipment
Northern Tool + Equipment has been a supplier of high-quality tools and equipment for more than 23 years, selling products through direct mail, the Internet and at more than 50 retail locations in 10 states. Along with a deep selection of hand, power and air tools, Northern Tool + Equipment carries a wide variety of products, including generators, pressure washers, air compressors, hydraulics, small engines, trailers, water pumps, tractors, welding equipment and much more. The company also serves as the exclusive distributor of NorthStarTM brand equipment, which is fabricated and assembled at the company’s 250,000 sq. ft. manufacturing facility in Faribault, Minn. Northern Tool + Equipment’s corporate headquarters are located in Burnsville, Minn. For more information, please visit www.northerntool.com.

About SPS Commerce
SPS Commerce is the leading provider of Hosted Integration Services to the retail and distribution supply chain. Through its online service platform, SPSCommerce.net delivers technologies like EDI, UPC Catalogs, Item Synchronization and Online Ordering sites. SPS Commerce dramatically lowers the setup and on-going costs, along with the time and risks of supply chain integration by providing a superior alternative to complicated, lengthy and expensive traditional software deployments. To date, more than 52,000 manufacturers have used SPSCommerce.net to help integrate to their supply chains of more than 700 retailers and distributors. SPSCommerce.net is widely used and integrated by companies running a variety of ERP systems including Epicor, Great Plains, QuickBooks, Macola, MAS 90/200 & 500, Microsoft Business Solutions applications, Peachtree and many more. SPS Commerce is headquartered in Minneapolis/St. Paul, Minn. For additional information, please contact SPS Commerce at 651-603- 4400 or visit www.spscommerce.com.

SPS Commerce is a registered trademark of SPS Commerce Inc. SPSCommerce.net and the SPS Commerce logo are the property of SPS Commerce, Inc. All other names and trademarks are the property of their respective holders.


business, Computer networking, Electronic business, Electronic Data Interchange, Enablement