Thompson Catalog Group Selects VendorNet To Automate Order Communications With Its Broad Network Of Suppliers

Delray Beach, FL., August 18, 2004 - VendorNet, a supply chain collaboration solution provider today announced that Thompson Catalog Group has selected VendorNet Commerce Suite to automate and manage its dropship and stock purchase order processes. Thompson Catalog Group is a leading catalog and Internet retailer founded in 1915 whose companies include linensource, Casual Living USA, and the oldest mail order cigar company in the country, Thompson Cigar.

In a phased implementation plan, Thompson Catalog Group is already reaping the cost saving benefits of VendorNet Dropship Manager with 25 of its largest suppliers, and plans to streamline its bulk inventory processes using VendorNet Stock PO Manager by January 2005. With VendorNet technology, Thompson Catalog Group will fully automate its dropship and inventory orders with more than 200 suppliers.

VendorNet Dropship and Stock PO Manager are part of VendorNet's suite of supply chain collaboration products that electronically integrate retailers and suppliers for real-time communication of critical order, fulfillment, shipping and invoicing information. VendorNet automates labor-intensive order transaction activities via a web-based platform to standardize and synchronize the exchange of information.

"Five years ago, as the Internet became a more prevalent component in our sales endeavors, it was our belief someone would figure out how to make a good Internet-based supplier interface that would be flexible, yet simple enough to accommodate a broad range of suppliers regardless of size or IT sophistication levels. VendorNet developed exactly that, and for us it is an ideal solution," stated Doug Grant, Vice President, Inventory Control at Thompson Catalog Group. Grant went on to add, "In my experience, good outside software packages typically deliver 85 percent of the functionality you are looking for. VendorNet Commerce Suite is closer to providing us with nearly 100 percent of the automated dropship and stock purchase order supply chain collaboration capabilities we desire. Equally impressive is the seamless manner in which VendorNet's technology integrated with our in-house developed order and inventory management system; it's a real credit to the VendorNet team."

VendorNet Dropship Manager and Stock PO Manager will allow Thompson Catalog Group to communicate with its larger suppliers via EDI, medium suppliers via customized file exchanges, and smaller suppliers via VendorNet's browser-based interface. In addition to the significant savings Thompson is realizing by reducing if not eliminating fax, mail, and phone expenses, Thompson believes it will also see reductions in in-house inventory costs. "If we apply VendorNet Dropship Manager technology to a percentage of our items that we normally stock, the paybacks could be substantial. We could essentially test new products with minimal financial risks," said Grant.

"We're pleased to have such a prestigious company as Thompson Catalog Group as a VendorNet client. By working closely with the Thompson Catalog Group dropship and inventory management team, we were able to deliver a solution that fortifies Thompson's strategic goal to run its business more cost effectively by aligning itself closer to its suppliers through improved communications and work flow," added Sharon Gardner, President of VendorNet.


About VendorNet
VendorNet delivers web-based supply chain management solutions to multi-channel retailers enabling real-time collaboration with suppliers. Its flagship product, VendorNet Commerce Suite establishes a powerful foundation for solutions that dramatically improve supply chain processes, reduce costs, and strengthen retailer/supplier relationships. Its open and flexible platform enables retailers to electronically link to suppliers regardless of their level of IT sophistication. VendorNet's client base includes leading retail, catalog and e-commerce companies such as FrontGate, Levenger, The Swiss Colony, Hammacher Schlemmer, Red Envelope, Gall's, National Business Furniture, TigerDirect, CompactAppliance.com, and The Wine Enthusiast Company. For more information, visit www.vendornet.com


Contact:
VendorNet
Louisa Rupp
954-767-8228
lrupp@vendornet.com