WorldWide Retail Exchange Partners With Visagent

The WorldWide Retail Exchange (WWRE), a business-to-business exchange for retailers and suppliers, in conjunction with the Visagent Corporation, a builder of industry operating systems (I-OPS) for online procurement and distribution, announced the launch of the Surplus Goods Exchange (SGE), the retail industry's first Web-based platform for the secure trading of surplus, excess and closeout consumer packaged goods (CPG).

WWRE members H-E-B, Safeway Winn-Dixie and others, along with the WWRE, Visagent and several leading CPG suppliers worked together in developing the SGE to address the common desire to reduce surplus goods in the retail supply chain.

By using the SGE, sellers can achieve potential savings of more than 80% on redistribution costs, while buyers can save up to 60% on procurement costs.

"Ineffective promotions, forecast errors, and seasonal variances perpetuate imbalances throughout the retail supply chain," said Peter Jueptner, chief commercial officer for the WWRE. "However, currentsecondary market trading channels have limitations and involve expensive intermediaries. To address this problem and the general need in the industry, the WWRE selected Visagent's I-OPS as the basis for the SGE's platform to facilitate surplus goods trading without jeopardizing retailer-supplier relationships."

"The SGE provides retailers and suppliers with an efficient, cost-effective and equitable channel for moving excess goods," stated Mark Rubin, ceo of Visagent Corporation. "Visagent has helped WWRE bring its members and leading CPG suppliers a simple electronic solution that delivers an immediate, positive impact on the industry."

The SGE offers an efficient, low-cost and neutral end-to-end online trading process that integrates all aspects of freight logistics, financial settlement and dispute resolution.

The SGE is an electronic bulletin board that seamlessly brings suppliers and retailers together by identifying common product matches, facilitating terms and contract negotiation and providing the support services necessary to complete transactions.

"This Web-based approach is an easy to access, organized and efficient means of dealing with surplus merchandise," said Alan Markert, vp of e-commerce and data integrity for San Antonio, TX-based grocer H-E-B. "It is much easier and faster to execute a transaction through this Web-based service than through non-web based alternatives. The management of the transaction through Visagent also helps ensure the transaction will be completed as expected by both the seller and buyer."

The SGE can be used off the shelf or integrated directly into back office processes, such as procurement and logistics, where goods are identified for sale or purchase by users' criteria. Sellers post surplus goods or excess goods to the SGE by UPC code and quantity, then choose from a list of potential buying audiences, such as internal divisions, other retailers, dollar stores, exporters, etc.

Buyers choose goods for purchase that are presented complete with all costs, including transport to their loading docks, via service integration with Landstar Logistics, one of the largest logistics services providers in the U.S.

"Safeway realized an opportunity to work with our trading partners to streamline a very inefficient process, and as a result, got involved early in the development of the SGE," said Howard Befort, corporate vp of marketing operations for Safeway.

Buyers and sellers who participate in the SGE can directly affect their organization's bottom line. Excess goods resulting from a retailer's inaccurate forecasts or a supplier's production overrun can be sold over the SGE, thus converting non-performing assets into cash.

On the buy side, the SGE serves as a trusted third party to provide organizations with unparalleled visibility to opportunistic and promotional buys. There is no fee to sell goods on the SGE, and when buying goods, a small, transparent transaction fee is built in, representing a 70% to 90% reduction in fees compared to traditional disposal channels.

The SGE has been under development since Q1 2001. A formal SGE pilot program is now underway, focusing on grocery; health, beauty and cosmetics; and general merchandise, with the official launch for all WWRE members, non-member retailers and suppliers, and leading discount/dollar store chains taking place this month.

The WWRE and Visagent will begin preparing for the SGE rollout to European retailers and suppliers in Q2 2002.

Visagent will continue to manage and coordinate all of the SGE's day-to-day operations, training, transportation arrangements and future exchange enhancements.

Visagent Corporation, based in Jacksonville, FL, develops online applications and real-time exchange infrastructures for theconsumer packaged goods (CPG) industry. Visagent's Industry Operating Systems (I-OPS) solve critical procurement and distribution deficiencies that handicap major CPG organizations in the pursuit of supply chain efficiency.

Visagent I-OPS build transactions for buyers and sellers, uniting all necessary support services from best-of-breed providers in technology, banking, logistics and dispute resolution services into one simple transaction. For more information, visit www.visagent.com.

The WWRE is the premier Internet-based business-to-business exchange in the retail e-marketplace. The Exchange was created with the fundamental purpose of reducing costs and improving efficiencies throughout the supply chain, employing product and service solutions typical of a global procurement and supply operation.

Designed to facilitate and simplify trading between retailers, suppliers, partners and distributors, the WWRE currently consists of 59 retail members from Africa, Asia, Europe, North America and South America with combined sales of over U.S. $845 billion. To date, the WWRE has saved its members over $270 million through the use of online negotiations, its first product offering.