03/23/2004

Advanced Data Exchange says 84 Lumber Company has reduced its supplier transaction processing costs by 20% after implementing a supply chain integration initiative with ADX. 84 Lumber is the largest privately held retailer of building materials in the U.S., with 453 stores in 34 states and annual sales of more than $2 billion.

“In just 18 months, 84 Lumber increased the percentage of suppliers connected electronically from less than 15% to more than 64%,” ADX says. “Today, the company exchanges over 250,000 invoices and purchase orders with more than 600 suppliers annually through the ADX Network. Additionally, ADX has helped 84 Lumber attain an overall rate of 85% of inbound invoices processed electronically, resulting in significant business process gains and improved supply chain relationships.”

“As a result of going with ADX, we’ve already seen a 20% reduction in processing costs and we expect another 15% next year,” said Dan Wallach, CFO of 84 Lumber Company. “That’s the kind of savings that makes me smile.”

According to ADX, “Prior to working with ADX, 84 Lumber used electronic data interchange (EDI) to transmit purchase orders with only a limited group of suppliers. After several years of working with EDI, fewer than 150 of 84 Lumber’s suppliers were trading electronically, limiting the benefits of electronic document exchange and creating complicated processes that still required extensive paper processing.”

“ADX has been a valuable and strategic business partner for 84 Lumber for several years,” said Rick Grimes, director of e-commerce for 84 Lumber. “Working with ADX has delivered hard dollar benefits, more efficient and integrated relationships with important suppliers, and streamlined our supply chain processes,” continued Grimes. “We’re looking forward to expanding our relationship with ADX and seeing an even bigger impact to our bottom line in the future.”

“84 Lumber’s success underscores ADX’s outstanding delivery of supply chain solutions to the building materials and supplies industry,” said David Michaud, vice president of marketing for ADX. “Today, 9 of the top 10 hardlines and home improvement retailers in North America are active on the ADX Network, meaning we’ve successfully aggregated a critical mass of this industry, linking suppliers, wholesalers and major retailers into thousands of trading relationships for supply chain integration success.”