The Shopping Channel More Than Triples Its Dropship Sales And Expands Merchandise By More Than Fifty Percent Using VendorNet Dropship Manager

Delray Beach, FL., March 20, 2007 - VendorNet, a supply chain collaboration solutions provider, today announced The Shopping Channel, a Rogers Communications company, and Canada's only televised shopping service is significantly expanding its dropship business model, increasing sales, slashing accounting cycles, and minimizing new product introduction costs using VendorNet Dropship Manager.

The Shopping Channel's rigorous daily schedule of 18 hours of live on-air programming, and taped sessions overnight dictates the need for keeping things fresh and consistently showing customers new products. That means introducing 30 to 60 new items per day - an expensive and risky proposition if inventorying the merchandise. The Shopping Channel decided that expanding its dropship network would overcome this inherent expense and risk, and open the door to new product sales. However, the feasibility of this decision was predicated on automating its dropship processes.

Mike Smith, Director of IT Operations for The Shopping Channel explains, "Dropshipping for our business makes perfect sense because it allows us to introduce a large number of new products without incurring the upfront inventory costs and warehouse handling and facility expenses. Our old dropship model was bogged down with manual, labor-intensive processes, and we knew we could not sustain an increase in dropship activities unless we automated our processes. For example, we offer products that are dropshipped from well-known, large vendors like Dell and Bose. We may feature one of their products as "Today's Showstopper®", and we might easily sell thousands of units in a single day. In our old dropship model, we received various files of shipped orders or shipment reports from the vendors, and then we would have to do all of the invoice matching and payments manually. That process took literally a month. VendorNet Dropship Manager has slashed that time down to 1 day.

With VendorNet, The Shopping Channel has grown its dropship vendor network, which includes many large established suppliers as well as small niche suppliers by more than 300 percent, added over 50 percent more dropship skus to its product base, significantly improved the revenue recognition process for both The Shopping Channel and its vendors, and expanded its cross sell opportunities by leveraging its dropship vendor's entire inventory.

The Shopping Channel isn't the only VendorNet user that is happy; its vendors are equally pleased. According to Smith after some initial reservations by a few vendors that were resistant to change, there's not a vendor it deals with today that hasn't embraced VendorNet. A confidential vendor of The Shopping Channel concurred, "Prior to VendorNet, the process of receiving and processing orders was so long and arduous, we were actually evaluating whether our cost to process and ship orders versus our recognized revenue justified continuing our relationship with The Shopping Channel. The Shopping Channel's implementation of VendorNet Dropship Manager reversed that. We have significantly reduced our cost of doing business, increased sales, and improved customer service. In fact, VendorNet has allowed us to reduce our contractual obligation with The Shopping Channel for order fulfillment by 50 percent."

The Shopping Channel is also leveraging the tremendous opportunity the Internet presents to test new dropship products before it incurs the significant expense of bringing the product on-air. Andrew Natale, Project Manager at The Shopping Channel elaborates, "Our air time is our bread and butter so it is very important that the products we feature on-air generate a profitable return. To minimize our risk, we use our web site to gauge a new product's demand. We're now at the point where we are bringing some of these products to air. We recently televised a product that we first tested online, and we sold over 10,000 units in a single day - units we did not have to warehouse or handle because of VendorNet Dropship Manager."

Sharon Gardner, President of VendorNet comments, "By using its front-end website to test new products and the VendorNet backend portal to communicate with its dropship vendors, The Shopping Channel is truly leveraging an underlying, revenue-impacting benefit of VendorNet - increasing the depth and breadth of its product selection while avoiding the traditional costs associated with testing new products. It's a powerful combination. We're pleased to provide the technology that not only solves The Shopping Channel's automation challenge, but also fuels revenue growth through new sales"

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. VendorNet's client base includes leading retail, catalog, and e-commerce companies such as Plow & Hearth/1-800-Flowers, Neiman Marcus, Norm Thompson, Swiss Colony, FrontGate, Levenger, Gevalia/Kraft, Hammacher Schlemmer, RedEnvelope, Uline, Orvis, and Lands' End. For more information, visit www.vendornet.com


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