GAITHERSBURG, Md. - July 31, 2006 — GXS, a leading provider of business-to-business (B2B) e-commerce solutions, today announced that Miller Brewing Company has deployed GXS Managed Services to enable a network of independent distributors of Miller products to conduct e-commerce with retailers. On an increasing basis, retailers have requested or, in some cases mandated, that food and beverage distributors become electronic data interchange (EDI)-enabled. Many of the distributors that distribute Miller products are businesses with limited IT staffs. To aid them in addressing B2B e-commerce pressures, Miller came to GXS to create a B2B integration hub that simplifies the order-to-cash process between distributors and retailers, while shielding distributors from the increasing complexities of B2B e-commerce. 

Founded in 1855, Miller is the second largest brewer in the United States. To assist its distributors in working effectively with retailers, Miller is paying a portion of the cost of enabling their distributors to support EDI. In addition, with six major breweries located throughout the United States, a network of distributors and more than 40 brands, maintaining control and visibility of, and to, Miller’s demand chain was becoming increasingly complex.

“Although Miller is an established company with modest beginnings, we always have seized the opportunity for growth and innovation. Doing so has helped us become one of the largest breweries in the world. Our selection of GXS Managed Services was the next step in our mission to streamline the supply chain process, and improve transaction processing,” said Dave Baumann, vice president of Information Systems at Miller Brewing Company. “We value our distributor partners as the face of this company with retailers, and acknowledge the value of their ability to do business electronically. Ultimately, we expect GXS Managed Services to be a major asset for supporting growth and efficiencies, both for our business and for that of the distributors.”

According to a recent report¹ from analyst firm, AMR Research, entitled Brewer Battle Will be Won with Superior Supply Chains, “Brewers need to focus on the fundamentals of new supply chain thinking: the Demand-Driven Supply Network (DDSN) of efficient supply chains that are flexible, agile and can quickly sense and respond to customer demands.”

By using GXS Managed Services, Miller and distributors of Miller products are taking the first step toward the DDSN vision. They now can benefit from reduced operational costs, increased productivity and improved business performance, all without implementing additional headcount. Specific benefits include a reduction in cost and complexity for the entire Miller distribution system; the ability for retail customers to automate purchasing, receiving and payment processes; and improved sales and merchandising as a result of increased order accuracy. In addition, Miller and the distributors now will have automated order fulfillment, shipping, invoicing and accounting processes which lower cost and complexity; reduce the number of invoice discrepancies and shorten direct store delivery time frames. For distributors of Miller products, the new distribution hub will enable e-commerce for its entire assortment of products including non-Miller brands and speed time to shelf for all products.

Miller selected the GXS solution because of the company's proven track record established through more than 18 years as a B2B outsourcing services provider. GXS has extensive experience working with a variety of major grocery and convenience store chains, an important factor for Miller and beverage distributors in ensuring continued positive relationships with those retailers.

“Miller’s new B2B integration hub lays the foundation for real-time exchange of information across the supply chain. GXS Managed Services offers a platform to handle the varying emerging e-commerce requirements of Miller’s retail customers,” said Steve Keifer, vice president of industry and product marketing for GXS. “As we are now in the midst of the successful execution of this project, we are pleased to see that Miller distributors are reaping the benefits of e-commerce enablement, including shorter direct-store-delivery times and automated order fulfillment. The successful integration of a three tier trading partner network will offer Miller and its distributors a competitive advantage as they stay ahead of the curve in e-commerce technology enablement and have a solid baseline for additional supply chain efficiencies.”

GXS Managed Services delivers unique business value in industries where business success often is driven by the effective deployment of B2B e-commerce transactions. Organizations that use GXS Managed Services are empowered to free up internal resources to focus on core business objectives, reduce costs and fill gaps in internal expertise by utilizing the service as an extension of the IT department. GXS has nearly 20 years experience and more than 100 clients currently using GXS Managed Services around the world, including Actaris, Bank of Montreal, BB&T, Eight O’Clock Coffee, Exel Consolidated Services, Miller Brewing Company, National Instruments, Royal Bank of Canada and Thomson Consumer Electronics. As a key component of the GXS Trading Grid^®, Managed Services offers the technical infrastructure to conduct a global B2B program, including transaction management, data translation, systems administration and supplier performance reporting capabilities. In addition, GXS Managed Services provide customers with the B2B experts to deliver world-class B2B program management, trading community management, and customer support. GXS Trading Grid^® is GXS’ unique global integration platform that enables and streamlines cross-enterprise business processes and is used by more than 40,000 trading partners every day to exchange goods and services.

About Miller Brewing Company
As one of America’s oldest brewers, Miller Brewing Company continues the commitment of founder Frederick J. Miller to brew 'confoundedly good beers' with 'uncompromising quality.' Through more than 150 years of innovation and brewing excellence, Miller has built a broad portfolio of award-winning beers that capture approximately 18% of the U.S. beer market. Miller’s flagship brand, Miller Lite, is the great tasting, less filling beer that defined the American
light beer category in 1975. The company also brews smooth, golden rich Miller Genuine Draft using a unique cold-filtering process Miller introduced in 1985. Miller's oldest brew is Miller High Life, the champagne of beers. Miller imports Peroni Nastro Azzurro, Pilsner Urquell and Foster's, and brews regional craft beers Leinenkugel's and Henry Weinhard's. Near-premium beers include Milwaukee's Best Light, Olde English 800, Mickey's Malt Liquor, Icehouse and Sharp's, a non-alcohol brew. Miller is a wholly owned subsidiary of SABMiller plc, the world's second largest brewer. For more information, visit www.MillerBrewing.com.

GXS is a leading global provider of B2B e-commerce solutions that simplify and enhance business process integration, synchronization and collaboration among trading partners. Organizations worldwide, including 75 percent of the Fortune 500, leverage the GXS Trading Grid^® to extend supply networks, optimize product launches, automate warehouse receiving, manage electronic payments and gain supply chain visibility. With an unmatched global presence, proven trading partner management and B2B outsourcing services, GXS' on-demand solutions maximize the benefits of integration for businesses.

Based in Gaithersburg, Md., GXS' extensive global network serves customers throughout the Americas, Europe, the Middle East and Africa and Asia Pacific regions. GXS can be found on the Web at www.gxs.com.

 

1 AMR Research, Brewer Battle Will be Won With Superior Supply Chains, by Roddy Martin, August 2, 2005