Six Enterprising Companies Named 2008 GXS Customer Innovation Award Winners

Sunbury, United Kingdom — November 21, 2008 — GXS™, a leading provider of business-to-business (B2B) e-commerce solutions, today announced the winners of its 2008 Customer Innovation Awards. Now in its third year, these awards recognise companies making innovative use of GXS’ services and solutions. The award categories are Best Use of GXS Trading Grid® to Increase B2B e-Commerce Automation, Best Use of B2B Outsourcing to Accelerate Competitive Differentiation, Best Use of GXS Trading Grid to Enhance Global Supply Chain Visibility, Best Use of GXS Trading Grid to Accelerate Supply Chain Globalisation, Best Use of GXS Trading Grid to Reduce Environmental Impact and Best Use of GXS Trading Grid to Improve Data Accuracy. This year’s honored, award recipients include Sainbury’s, Best Buy, Henkel, DHL and Circuit City Stores.

Nominees for the 2008 GXS Customer Innovation Awards were evaluated by a panel of judges that included Andrew Reese, editor of Supply & Demand Chain Executive magazine; Clive Longbottom, service director at analyst firm, Quocirca; and John Radko, GXS’ chief technology strategist. Representing a variety of industry verticals and geographic markets, the winners have demonstrated best practices in B2B e-commerce and B2B outsourcing to advance and streamline their global supply chains.

“The winners of the GXS customer awards exemplify the value and return of investing in B2B e-commerce and automation, especially in tough economic times. Each of these companies have achieved something exceptional and are models for other companies to follow,” said Reese.

The winners were:

Best Use of GXS Trading Grid to Reduce Environmental Impact: Sainsbury’s. This award recognises companies that are using GXS Trading Grid to reduce their environmental impact by minimising paper-based transactions and/or streamlining their supply chain operations to minimise their use of oil, gas and carbon-emitting energy resources. As one of the largest supermarket chains in the UK, Sainsbury’s strives to reduce environmental waste and to be a leader among UK companies for its environmentally-friendly operations. B2B electronic trading via GXS Trading Grid® plays an integral role in reducing the retailer’s overall environmental impact. In recent years, Sainsbury’s has stepped up its EDI use, primarily as the company’s business has expanded beyond the core grocery sector. The company also has rolled out the use of Advanced Shipment Notices (ASN) which have provided clear environmental gains by increasing visibility throughout the supply chain. The increased automation and supply chain visibility improves scheduling and helps drive down emissions (i.e., fewer trucks idling at delivery or pick-up sites). Sainsbury’s has published specific targets for improving the efficiency of its supply chain. The stated goals are to reduce CO2 emissions per case transported by five percent by March 2009, and to reduce the distance fleet and suppliers travel by five million km by 2010, through increased backhaul activity.

Best Use of GXS Trading Grid to Improve Data Accuracy: Best Buy Co, Inc. This award recognises companies that have made the best use of managing their product data using dynamic business rules to enhance customer loyalty, protect brand equity and reduce operational costs in their extended supply chain. Previously, Best Buy US had determined that between 30 to 60 percent of the item data in their item master files contained errors, leading to significantly increased costs in their supply chain. Best Buy recognised that product data errors have a profound impact on supply chain costs and customer satisfaction. For example, if a consumer purchases a plasma or LCD display television and then finds upon delivery that the dimensions are incorrect, and the item does not fit in its intended space, the result is a returned product and a dissatisfied customer. Best Buy selected GXS Product Data Quality (PDQ) service to provide an information firewall to ensure the accuracy of product data specific to Best Buy’s requirements prior to entry into its systems via the Global Data Synchronisation Network. The data is passed through business rules for validation, and exceptions are managed by the GXS Data Quality Center of Excellence. As a result of ‘clean and accurate’ product data, Best Buy is building on its customer centricity and efficient enterprise goals, gaining a strategic competitive advantage.

Best Use of GXS Trading Grid to Accelerate Supply Chain Globalisation: Henkel. This award recognises companies that have leveraged GXS Trading Grid to successfully build and sustain highly-competitive global supply chains in an increasingly flat world. Headquartered in Düsseldorf, Germany, Henkel’s B2B strategy has been an important contributor to international business growth. As an indication of B2B’s role, the volume of Henkel’s EDI traffic has been growing at an impressive rate of 15 percent per year. This year, Henkel expects to exchange between 200,000 and 300,000 messages a month with about 1,000 principal customers. A key contributor to the success of Henkel’s B2B platform was the decision to shift away from a variety of localised EDI implementations and instead consolidate on one player with a global footprint, GXS. These improvements were primarily from growth regions outside Europe and North America, highlighting the importance of a global strategy.

Best Use of GXS Trading Grid to Enhance Global Supply Chain Visibility: DHL. This award recognises companies that have enhanced visibility into their supply chain processes, such as the order lifecycle, logistics, invoicing or payments, with quantifiable operational costs savings. In 2006, DHL began a far-reaching program that has radically re-envisioned the company’s core B2B platform and transformed it from a technical infrastructure into a visibility engine that provides value-added services to the business. GXS Trading Grid is at the core of this B2B platform that services the needs of DHL’s largest customers worldwide. The platform handles about 50 million transactions per month and is rapidly rising as DHL adds new customers. In this complex global business, being able to track Key Performance Indicators (KPIs) from start to finish represents the route to success. For example, one of DHL’s customers has a contract in place that states that it will route an EDI message to DHL’s B2B gateway and expect an acknowledgement within 120 seconds. If that fails, the contract specifies that the customer will immediately switch business to a DHL competitor. Superior service levels and crystal clear visibility into the processes are essential to DHL’s business success.

Best Use of B2B Outsourcing to Accelerate Competitive Differentiation: Circuit City Stores. This award recognises companies that are using GXS Managed Service in innovative and beneficial ways to further the benefits of e‑commerce. With 680 stores in the U.S., Circuit City has hundreds of suppliers ranging from major, well-known manufacturers of consumer electronics to smaller, seasonal suppliers. As of 2006, the retailer was processing approximately five million paper invoices per year and growing. Prior to selecting GXS, Circuit City was only able to send or receive documents electronically from some suppliers, causing inefficiencies, increasing costs and leading to errors in the supply chain. To enable all its suppliers to conduct e-commerce, Circuit City is using GXS Intelligent Web Forms, an Internet-based forms solution that enables companies to trade electronically by simply filling out fields in a customised web-form. As a result, Circuit City has completely eliminated paper invoices and has managed a five-fold increase in invoice volume without adding Accounts Payable staff.

“B2B is often thought of as a necessary evil, but the customers represented in these awards show how B2B can actually give companies competitive advantages and true business benefits,” said Clive Longbottom of Quocirca. “The variety of strategies and results here demonstrate the vast applicability of B2B e-commerce services and the innovation of the companies that deployed them.”

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.

“Our customers continue to reach new heights of innovation in B2B e-commerce. The results achieved by these winners went well beyond cost-saving automation. They included sustainability benefits, improved customer service, lower product return rates, and greater employee satisfaction,” said John Radko, chief technology strategist at GXS. “At GXS, we are extremely proud of the role our services play in helping our customers achieve success and we are constantly innovating—as they are—to increase the positive impact we have on their businesses. We hope that these winners will serve as strong examples for the extraordinary possibilities of B2B e-commerce.”

About GXS

GXS is a leading global provider of B2B e-commerce solutions that simplify and enhance business process integration and collabouration among trading partners. Organisations worldwide, including 75 percent of the Fortune 500, leverage the on-demand services on GXS Trading Grid® to extend supply chain networks, optimise product launches, automate warehouse receiving, manage electronic payments and gain supply chain visibility. GXS Managed Services, GXS’ B2B outsourcing solution, empowers customers with the expertise, technical infrastructure and program support to conduct B2B e-commerce with trading partners globally.
Based in Gaithersburg, Md., GXS has an extensive global network and has local offices in the Americas, Europe 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.

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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