On-Demand Supply Chain Management Momentum Rivals That of Sales Force Automation According to New Aberdeen Report

Gaithersburg, Md. – March 28, 2006 — GXS™, a leading provider of business-to-business e-commerce solutions, and AberdeenGroup today announced the availability of new analysis from Aberdeen, highlighting increased demand for software-as-a-service supply chain management (SCM) applications, such as the visibility and data synchronisation solutions offered by GXS. The “On-Demand Tipping Point in Supply Chain,”1 reports that software-as-a-service or on-demand applications for SCM are becoming more widely available, and that those companies considered to have superior supply chain performance have been the most common adopters. In addition, many companies have implemented on-demand models for customer relationship management (CRM) or sales force automation (SFA), but have not yet done so for SCM. However, 51 percent of companies surveyed for the report are considering using an on-demand application for SCM.

The report, sponsored in part by GXS and available via the Aberdeen Web site identifies ‘supply chain visibility’ as one of the top supply chain execution areas for those companies currently using on-demand SCM. For those companies considering deploying on-demand SCM, 80 percent said they would consider using it for supply chain visibility. GXS’ visibility applications provide visibility into all phases of the supply chain including the order lifecycle, inventory status, invoices and payments and manufacturing processes. Other popular functions for on-demand SCM include data synchronisation and demand-supply synchronisation with suppliers and manufacturers. GXS offers a range of product information management and data synchronisation solutions for both suppliers/manufacturers and retailers. GXS’ solutions empower businesses of all sizes to improve interaction and collabouration with their global customers and suppliers, increase product data accuracy and timeliness, gain better knowledge and control over manufacturing, payment and shipment functions and reduce operating costs.

“Based on our study, on demand SCM provides overwhelming benefits especially in implementation speed, maintenance ease and return-on-investment (ROI). This is a market that is attracting interest from companies of all sizes in nearly all verticals,” said Beth Enslow, senior vice president of Enterprise Research at AberdeenGroup. “Vendors like GXS that have an established base of customers and a range of on-demand SCM services are likely to reap the benefits of this upsurge in interest. Aberdeen’s report provides guidance to businesses considering the on-demand model for SCM, highlighting the best methods for adoption and the expected benefits.”

Another important finding of this report is that nearly half of the respondents will look to vendors specialising in on-demand SCM, such as GXS, as their provider of solutions versus their existing ERP and logistics services vendors. In addition, about half of the respondents view on-demand SCM as their long-term application deployment strategy. The benefits of this model include a lower total cost of ownership, faster implementation speed and easy, low-cost access to new versions and service enhancements. In addition, nearly all (92 percent) of the top supply chain performers surveyed say that one aspect of the on-demand model that interests them is the concept of a community of connected parties. Potential benefits of this model include business partner discovery, best practice sharing, shared data content and industry benchmarking. The GXS Trading Grid® is the world’s largest electronic business community and a prime resource for several of these potential community benefits. The Trading Grid helps customers automate global trading communities and facilitates visibility and access into cross-company inventory levels, manufacturing processes, transportation logistics and order compliance. All GXS services are available as hosted, on-demand applications, eliminating the need for investments or upgrades in costly hardware or software tools.

“This report definitively establishes the distinct surge in momentum of on-demand SCM applications. GXS has an unmatched history of providing a range of SCM and B2B solutions that not only increases customers’ efficiency, but also can improve their bottom lines,” said Bobby Patrick, senior vice president and chief marketing officer at GXS. “The success of on-demand SFA and CRM applications has proven the value of this model and its applicability in the supply chain and B2B space. This research has brought to light the potential of this technology and has shown its viability and value in the marketplace.”

The GXS Trading Grid is GXS’ unique global integration platform that enables and streamlines cross-enterprise business processes. The Trading Grid is the world’s largest electronic business community, used by more than 40,000 trading partners every day to exchange goods and services. As a services-oriented B2B network, Trading Grid helps customers automate global trading communities by shielding complexity from rapidly changing standards, eliminating manual and duplicative efforts and enabling a new level of process integration and business intelligence. With the Trading Grid, GXS offers innovative On-Demand SCM solutions today that help customers extend their supply network globally, optimise product launches, automate warehouse receiving, lower supply chain costs and manage payments and cash flow.

About GXS
GXS is a leading global provider of B2B e-commerce solutions that simplify and enhance business process integration and collabouration. Organisations worldwide, including more than 75 percent of the Fortune 500, leverage GXS Trading Grid® to achieve balance between supply and demand. Active in the global standards arena, GXS solutions enable customers both large and small, to connect with global partners, synchronise product information, optimise inventory levels and demand forecasts, and accelerate the execution of supply chains.

Headquartered in Gaithersburg, Md., GXS provides sales and support to businesses and their partners worldwide. For more information about GXS visit www.gxs.co.uk.