GT Nexus Goes Live at KB Toys

Leading toy retailer deploys GT Nexus technology to drive improved global supply chain visibility, tighter event management, and shorter cycle times

Pittsfield, Mass. and Alameda, California, November 13, 2002 —

GT Nexus, a leading provider of supply chain execution software, announced today that KB Toys, the nation's largest combined mall-based and online specialty toy retailer, has successfully deployed GT Nexus Enterprise Series 7 (ES 7) to manage all cross-border shipments in its global supply chain.

KB Toys has purchased and deployed GT Nexus Orders and GT Nexus Analytics, the global visibility, supply chain event management and performance management product lines within ES 7. The implementation was completed on schedule, in time to provide KB Toys with end-to-end supply chain visibility for its three month pre-Christmas peak season period, during which time it ships the majority of its annual product volume.

The project called for GT Nexus to configure and deploy a global private logistics network specifically for KB Toys and its supply chain partners, which include ocean, air and truck carriers, 3PLs, customs brokers, suppliers and its five U.S. distribution centers. GT Nexus collaborative supply chain applications are hosted on this private logistics network, which serves as a global data repository and integration platform for KB Toys.

“GT Nexus offered a suite of products that aligned well with our business strategies and goals,” said Bob Hassen, vice president of distribution for KB Toys. “GT Nexus also helped us develop a business case that was real and credible,” noted Hassen, who also cited the GT Nexus Configurable Milestone Model™ architecture as an important factor in KB Toys’ decision.

“GT Nexus has built a uniquely powerful supply chain modeling capability that allows our customers to set benchmarks and then measure actual performance against optimal performance goals. That provides our customers with the basis for driving continuous improvement. This modeling capability is a real differentiator for us,” said Peter Weis, vice president, supply chain solutions for GT Nexus.

Weis explained that timely and accurate product SKU-level visibility, combined with the ability to identify exceptions early in the supply chain and then proactively manage them to closure, is difficult but crucial for retailers. Peak season demands also create unique logistics challenges. Effective supply chain execution often spells the difference between getting products to customers precisely on time to meet peak demand, or goods that arrive late. The impact goes directly to the retailer’s bottom line: goods that would have commanded high margins during peak demand now must be deeply discounted to move them out of the stores.

KB Toys selected GT Nexus in May 2002. Implementation work began in June. The system went live in August. This rapid global deployment was successfully carried out by a joint KB Toys/GT Nexus implementation team. Among the key differentiators of the GT Nexus ES 7 solution were:

  • Rapid Integration Carrier integrations already in place were leveraged, requiring fewer new integrations. Proven methods and tools for integrating multiple, disparate systems were applied, which accelerated deployment.
  • Focus on Data Quality This is a critical success factor for supply chain execution implementations. Data quality issues were identified, addressed and resolved through a formalized process, ensuring business benefits were captured.
  • Customized Views A flexible, intuitive interface with configurable views allows multiple participants within the customer’s organization – merchandisers, logistics and finance personnel – to view relevant information in a timely manner.
  • Controlled Inter-Enterprise Collaboration. A sophisticated roles and permissions architecture built on top of an inter-company workflow model allows the customer to effectively coordinate and manage partner performance.

Weis commented, “We have been pleased with market interest in our solutions and our approach to demonstrating credible ROI. We are gratified that KB Toys has selected GT Nexus as a key element of their business strategy. We look forward to helping them realize their vision for global supply chain execution with best-in-class technology.”

Terms of the contract were not disclosed.

About KB TOYS

KB Toys is the nation’s largest combined mall-based and online specialty toy retailer, operating more than 1,300 stores in all 50 states, the American Territory of Guam and the Commonwealth of Puerto Rico. KB Toys operates retail stores under the names KB Toys®, KB Toy Works®, KB Toy Outlet™, Toy Liquidators®, KB Toy Express® and offers online shopping through KBtoys.com™ (www.kbtoys.com) and eToys® (www.etoys.com). KB Holdings, Inc., the parent corporation, is a privately held company headquartered in Pittsfield, Massachusetts.

About GT Nexus

GT Nexus offers a cloud-based platform that the world's biggest companies use to drive efficiency and agility across the global supply chain. Leaders in manufacturing, retail and logistics services all share GT Nexus as their standard, multi-enterprise collaboration platform. Users operate against a core set of information across multiple supply chain functions to optimize the flow of goods and trade information, from order point to final payment. Customers include Xerox, Williams-Sonoma, Nestlé, DHL, Sears, Caterpillar, Kraft Foods and The Home Depot. For information, visit www.gtnexus.com.

Contact

Greg Kefer
Director, Corporate Marketing
GT Nexus
Office: +1 510 808 2229
E-mail: keferg@gtnexus.com

John P. Reilly
KB Holdings, Inc.
413.496.3427
jreilly@kbtoys.com

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