LG Electronics Selects GXS to Support Global ERP and B2B Consolidation

Sunbury, United Kingdom — July 16, 2008 — GXS™, a leading provider of business-to-business (B2B) e-commerce solutions, today announced that LG Electronics, a global leader and technology innovator in consumer electronics, home appliances and mobile communications, has chosen GXS Trading Grid® to consolidate and centralise its interactions with more than 200 global trading partners. The move is part of a broader LG strategy to reduce complexity in its supply chain operations by centralising its geographically-dispersed enterprise resource planning (ERP) systems in Europe, the United States, South America and Asia-Pacific at its headquarters in Seoul, South Korea and to centralise its B2B e-commerce functions onto a unified global platform.

LG reported revenues of $44B in 2007 from four business units – Mobile Communications, Digital Appliances, Digital Display and Digital Media. As a leader in the highly competitive consumer electronics sector, LG’s success depends upon its ability to coordinate supply chain activities and share real-time information with a network of contract manufacturers, third party logistics providers and consumer electronics retailers around the world. GXS Trading Grid supports a broad range of e-commerce standards (e.g., EDI, XML, KEDIFACT, RosettaNet and AS2) and extensive global reach throughout Asia, Europe and the Americas. Consolidation of B2B transactions onto a single vendor, GXS, provides LG’s IT organisation with centralised operations in Korea to support its trading partners based in more than 70 countries.

“Since 2001 GXS has consistently provided LG Electronics with reliable and effective B2B integration services,” said SunYoung (Sarah) Oh, assistant manager, Information Strategy Teamof LG Electronics. “As we’ve grown as a company in the last 50 years, so has the complexity of our supply chain. Reducing that complexity was as important to our company as ensuring global integration capabilities and increasing real-time visibility into our trading partner network. GXS is the only B2B integration vendor we have found that can easily support all three of these initiatives.”

Prior to consolidating with GXS, LG Electronics used multiple B2B e-commerce providers that were managed independently by local B2B centres distributed around the world. The use of multiple vendors led to duplicate processes and inconsistent capabilities, complicating LG’s efforts to manage its trading partner network. Furthermore, the company was slow to respond to trading partner needs and incurred higher costs because of duplicate traffic and an inability to leverage its total transaction volume to reduce its overall B2B e-commerce costs.

“Through its move to consolidate its ERP systems and B2B networks, LG is standing as an example of how a truly global company can operate efficiently and effectively,” said Raymond Teh, vice president of Asia Pacific for GXS, “Many companies operate in geographic silos when it comes to their trading partner networks and as a result, they have no idea of the scope of their networks and cannot gain real-time visibility into activities. The consolidation of LG’s ERP systems will give the company a competitive advantage in the marketplace. As a global B2B provider with a local presence in Korea and throughout Asia Pacific, GXS is well positioned to help other multi-national corporations based in Asia, and anywhere in the world, consolidate their B2B e-commerce networks.”

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. As the world’s largest electronic business community, GXS Trading Grid is used by more than 30,000 customers to exchange goods and services, gain visibility into global logistics operations and to synchronise product data. Trading Grid helps customers automate global trading communities by shielding complexity from rapidly changing standards, eliminating manual and duplicative processes and enabling the highest levels of B2B integration and collabouration.

About LG Electronics
Established in 1958, LG Electronics, Inc. (LG) is a global leader and technology innovator in consumer electronics, home appliances and mobile communications, employing more than 82,000 people working in over 114 operations including 82 subsidiaries around the world. With 2007 global sales of USD 44 billion, LG is comprised of four business units – Mobile Communications, Digital Appliance, Digital Display and Digital Media. LG is the world’s leading producer of Mobile handsets, air conditioners, front-loading washing machines, optical storage products, DVD players, flat panel TVs and home theater systems.

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.


For further information please contact:

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