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Covast B2B Suite for Logistics & Distribution to Reduce Supply Chain Costs by $20K per Month for Cardinal Logistics Management Corp.
Covast improves supply chain visibility, eliminates third-party VAN charges

ATLANTA - November 30, 2006 - Covast, a leading provider of business-to-business (B2B) integration solutions, today announced that Cardinal Logistics Management Corp. has deployed the Covast B2B Suite for Logistics & Distribution. Designed to integrate all external supply chain systems and communications onto a single integration platform, the Covast B2B Suite allows the company to conduct and manage supply chain communications more quickly, cost-effectively and flexibly. As a result, Cardinal Logistics expects to save up to $20,000 per month in B2B transaction costs.

Cardinal Logistics is a leading provider of third-party logistics (3PL), transportation and supply chain solutions. Clients include large manufacturers and retailers such as KraftMaid Cabinetry, The Home Depot and Coca-Cola. The company recently decided to implement a new B2B integration solution that could reduce supply chain costs and better support an increase in the volume of electronic data interchange (EDI) transactions. Because Cardinal Logistics provides customers with multiple status updates on every load transported, value added network (VAN) character charges had become a hefty expense. Additionally, the company needed a more reliable solution to provide improved visibility and reporting at every step of the transaction transmission process.

Since deploying the Covast B2B Suite for Logistics & Distribution more than four months ago, Cardinal Logistics has realized the following benefits:

  • Lower B2B Transaction Costs: The Covast solution has significantly decreased the company's B2B transaction costs, such as EDI and VAN character charges. By mid-2007, Cardinal Logistics estimates they will be saving up to $20,000 each month.

  • Less Time to Add New Trading Partners: As Cardinal Logistics' business grows, adding trading partners to the network can be cumbersome. The Covast solution allows the company to add new trading partners to its B2B systems in 50 percent less time.

  • Increased Flexibility and Customization Capabilities: Cardinal Logistics can now quickly adapt to their customers' supply chain requirements. The Covast solution allows Cardinal Logistics to easily make changes to functions such as document mapping, reporting and verifications.

  • Simplified Invoicing and Tracking: The ability to see and sort transaction detail has allowed Cardinal Logistics to expedite and simplify its invoicing and collection process.

Cardinal Logistics selected the Covast B2B Suite for Logistics & Distribution for several reasons. The solution, which includes the Covast AS2 Adapter and the Covast EDI Accelerator, integrates seamlessly with Microsoft BizTalk Server. Cardinal Logistics can now connect to trading partners via the AS2 adapter while enjoying accelerated EDI transactions to support its transportation services. Additionally, the company can now create custom reports that provide improved visibility into critical delivery information.

The supply chain has become a target for cost reduction initiatives. Many companies are starting to realize that in-house B2B integration solutions are an easy way to cut costs, while making the supply chain more responsive and less problematic," said Daan Scheer, CEO, Covast.

To learn more about the Covast B2B Suite for Logistics & Distribution, please visit www.covast.com.

About Covast

Covast is a leading provider of business-to-business (B2B) integration solutions for collaborative business environments. The company provides integration solutions that bridge the gap between legacy B2B applications and today's new Internet standards. The suite of products that Covast offers is designed to facilitate fast and cost-effective B2B integration with single platform environments, such as those supported by Microsoft BizTalk Server and IBM WebSphere. Covast is a Microsoft Gold Certified Partner and an IBM Business Partner. With its European headquarters in the Netherlands and its U.S. headquarters in Atlanta, Covast has strategic relationships with partners and customers including GXS, Accenture, EDS, HP, Citrix and Siemens. For more information, visit http://www.covast.com.

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