The CPG Industry's First Web-based Platform For Trading Surplus
and Excess Goods
Created By and For Retailers and Suppliers
San Diego, Ca.--Marketechnics--February 4, 2002 -- The WorldWide
Retail Exchange (WWREâ), the premier business-to-business
exchange for retailers and suppliers, in conjunction with the
Visagent Corporation, the premier builder of industry operating
systems (I-OPS) for online procurement and distribution, today
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 percent
on redistribution costs, while buyers can save up to 60 percent
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, current secondary 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, chief executive officer 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, vice president of e-commerce and data integrity
for San Antonio, Texas-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 vice president 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 percent to 90 percent 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.
About Visagent
Visagent Corporation, based in Jacksonville, Florida, develops
online applications and real-time exchange infrastructures for
the consumer 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.
About the WWRE®
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. For
more information, visit the website at www.wwre.org
or www.worldwideretailexchange.org
WWRE® is a registered trademark of the WorldWide Retail Exchange.
Surplus Goods Exchange(TM) is a trademark of the Visagent Corporation
WorldWide Retail Exchange, LLC. All rights reserved.