GXS Announces 25 B2B Managed Services Customer Wins in 2006

Sunbury, United Kingdom — January 16, 2007 — GXS™, a leading provider of business-to-business (B2B) e-commerce solutions, today announced that in 2006, 25 new customers selected GXS Managed Services, the company’s comprehensive B2B outsourcing solution. Enterprises, as well as small and mid-sized businesses (SMBs) worldwide, across a wide range of industry verticals including high tech, manufacturing, retail and consumer packaged goods, chose GXS Managed Services as the foundation for their global B2B trading partner networks. Customers look to GXS Managed Services to address a wide variety of business problems, including enhancing B2B capabilities, automating additional trading partners around the globe, improving customer service levels and extending supply chain visibility. Customer wins in 2006 include Avago Technologies, Carlisle Companies, Inc., CNH Global N.V., Delta Galil, Drug Fair, PepsiAmericas, Sainsbury’s and Super Cheap Auto.

In a recent survey of the GXS Managed Services customer base, respondents identified the top reasons for outsourcing the management of their B2B networks and the benefits achieved as a result. The findings reflect a shift in motivations for B2B outsourcing, from a tactical, cost-cutting activity to a strategic initiative focused on creating value. Many of the most significant findings were related to the business value achieved through B2B outsourcing, such as enhancing customer service levels, greater B2B functionality and the ability to connect trading partners around the world. In fact, survey respondents averaged a 42 percent return on investment (ROI) in operational cost savings. Respondents reported additional ROI achieved through B2B outsourcing that included:

an average 39 percent increase in customer satisfaction;
an average 38 percent improvement in B2B system uptime/availability;
an average 30 percent improvement in responsiveness to new trading partner requirements; and
an average 24 percent increase in the number of trading partners integrated via the outsourced systems.

The GXS Managed Services survey included respondents from a wide variety of companies. Two-thirds of the respondents were from companies with greater than $1 billion in annual revenue, while nearly 20 percent had less than $100 million in annual revenue. All three major geographic regions were represented with respondents from North America, Europe and Asia Pacific. Other areas of value noted by respondents to the survey included the elimination of redundant B2B systems and networks around the world; the redeployment of limited resources to focus on key business differentiators; visibility into supply chain processes and B2B transactions; and reduced inventory levels.

“B2B outsourcing is gaining global momentum across industries and companies of all sizes. The increase in GXS Managed Services’ customer base and the fact that Managed Services is one of our fastest-growing businesses is testament to the market’s recognition that B2B outsourcing has significant impact on a business’ top and bottom lines,” said Steve Keifer, vice president of industry solutions marketing at GXS. “In addition, the B2B function is clearly gaining importance and visibility within organisations as more businesses rely on remote business partner participation for key manufacturing and customer support functions. Businesses now realise that they need to have greater B2B expertise than would be practical to develop and support in-house, so they have turned to the expert in the field: GXS.”

As part of its Managed Services offering, GXS provides the people, processes and technology to perform all day-to-day management of an organisation’s global B2B operations. This includes an on-demand data translation service that provides any-to-any data format and protocol conversion; daily global B2B operations conducted via world-class and geographically-dispersed data centres; a trading community on-boarding service enabling customers to reach 100 percent of their trading partners; B2B transaction visibility for document tracking and reporting; and B2B process visibility that provides actionable information and capabilities for supply chain planning and execution. In addition, dedicated program managers execute customers’ global B2B programs and bring the expertise and best practices honed during GXS’ nearly 40 years in B2B e-commerce and nearly 20 years’ experience in supporting full-service B2B outsourcing programs.

According to Gartner1, “For many e-commerce projects, supply chain integration outsourcing is emerging as a viable way — particularly for small and midsize businesses — to outsource the deployment and management of the IT infrastructure necessary to support multi-enterprise process integration. Supply chain integration outsourcing involves the externally managed outsourcing of some combination of technology, people and processes that integrate subprocesses or end-to-end processes (for example, for procurement) across two or more enterprises. Supply chain integration outsourcing is typically fulfilled via a hybrid combination of professional services and an application-on-demand model for hosted integration services.”

Organisations that use GXS Managed Services are empowered to free up internal resources to focus on core business objectives, reduce costs and fill gaps in a customer’s internal expertise. Companies currently using GXS Managed Services around the world include Avago Technologies, Bank of Montreal, BB&T, Eight O’Clock Coffee, Exel Consolidated Services, Miller Brewing Company, National Instruments, Royal Bank of Canada and Thomson Consumer Electronics. GXS Managed Services leverages the GXS Trading Grid® to provide customers with world-class B2B program management. The GXS Trading Grid is a global B2B e-commerce and integration platform that supports the creation and adoption of on-demand supply chain management solutions for companies of any size.

About GXS

GXS is a leading global provider of B2B e-commerce solutions that simplify and enhance business process integration, synchronisation and collabouration among trading partners. Organisations worldwide, including 75 percent of the Fortune 500, leverage the GXS Trading Grid® to extend supply networks, optimise product launches, automate warehouse receiving, manage electronic payments and gain supply chain visibility. With an unmatched global presence, proven trading partner management and B2B outsourcing services, GXS’ on-demand solutions maximise the benefits of integration for businesses.

Based in Gaithersburg, Md., GXS’ extensive global network serves customers throughout the Americas, Europe, the Middle East and Africa and Asia Pacific regions. GXS can be found on the Web at www.gxs.co.uk.

All products and services mentioned are trademarks of their respective companies.

1 Gartner “Who’s Who in Supply Chain Integration Outsourcing, 2Q06” by Benoit Lheureux, July 20, 2006.


For further information please contact:

Alistair Kent, Harvard Public Relations Ltd.
Tel: +44 (0) 20 8759 0005 Email: gxs@harvard.co.uk

Denise Oakley, Director, Marketing Programmes International GXS
Tel – +44 (0) 1932 776408 / +44 (0) 7768 537 481 Email: denise.oakley@gxs.com