SOURCE: CommerceHub

August 01, 2005 08:00 ET

CommerceHub and Costco Extend Relationship for Supply Chain Support

Leading Retailer Leverages Drop-Ship Master Suite to Streamline Fulfillment of Online Orders

ALBANY, NY -- (MARKET WIRE) -- August 1, 2005 -- CommerceHub, a leading provider of fulfillment and integration solutions for retailers operating in multi-channel environments, today announced a contract expansion with Costco, a leading international operator of membership warehouses, to continue support of the company's United States and Canadian .com operations. The extension is a result of the successes Costco has achieved to date through use of CommerceHub's drop-ship supplier integration and fulfillment solutions.

Under the terms of the agreement, Costco will continue to leverage CommerceHub's Drop-Ship Master application suite to rapidly integrate new suppliers and streamline the fulfillment process for online orders. By enabling suppliers to fulfill orders directly based on requirements established by Costco, Drop-Ship Master allows the company to expand its online product selection and revenues without taking on any new inventory or risk. CommerceHub provides Costco with a single point of integration with all of its suppliers and complete visibility into online orders through the delivery process.

"By extending our relationship with CommerceHub, Costco will continue to move forward with aggressive plans for expansion of our .com offering in the U.S., Canada and overseas, as well as stay true to our commitment of providing exceptional service to our customers," said Mike Pollard, Vice President of Costco.com. "CommerceHub is one of the most forward-thinking companies in the retail supply chain arena and based on the outstanding results we have achieved with the DropShip Master product to date, we are excited to extend this partnership to further grow our business."

"We are thrilled to continue our work with Costco, as this extension further validates CommerceHub's innovation and leading position in drop-ship integration and fulfillment management," said Frank Poore, President and CEO of CommerceHub. "Over the years, we have had an extremely successful relationship with Costco and will continue to provide enhanced capabilities and tools that will help the company accomplish their business objectives, meet customer demand and achieve a competitive advantage in the marketplace."

About Costco

Costco Wholesale Corporation operates an international chain of membership warehouses, mainly under the "Costco Wholesale" name, that carry quality, brand name merchandise at substantially lower prices than are typically found at conventional wholesale or retail sources. The warehouses are designed to help small-to-medium-sized businesses reduce costs in purchasing for resale and for everyday business use. Individuals may also purchase for their personal needs.

Costco's warehouses present one of the largest and most exclusive product category selections to be found under a single roof. Categories include groceries, candy, appliances, television and media, automotive supplies, tires, toys, hardware, sporting goods, jewelry, watches, cameras, books, housewares, apparel, health and beauty aids, tobacco, furniture, office supplies and office equipment. Costco is known for carrying top quality national and regional brands, with 100% satisfaction guaranteed, at prices consistently below traditional wholesale or retail outlets.

Costco currently operates 456 warehouses, including 336 in the United States and Puerto Rico, 65 in Canada, 16 in the United Kingdom, five in Korea, four in Taiwan, five in Japan and 25 in Mexico. The Company also operates Costco.com, an electronic commerce web site, at www.costco.com.

About CommerceHub

CommerceHub is the industry's leading provider of fulfillment and integration solutions for retailers operating in multi-channel environments. A proven pioneer and visionary in drop-ship integration solutions, CommerceHub provides a universal platform for connecting with suppliers of all shapes and sizes and managing the delivery of goods regardless of the fulfillment model and back-end systems involved. CommerceHub delivers both real-time visibility into the supply chain and advanced, exception-based management applications to overcome the complexities associated with multi-channel retailing and ensure that orders reach their end destination in the most efficient manner possible without sacrificing quality or service levels.

CommerceHub's any-to-any translation and integration platform allows every supplier to become 100% compliant with its retail partners' specifications regardless of disparate IT systems and capabilities. The company's drop- and bulk-shipping integration solutions facilitate a dramatically improved fulfillment process, resulting in significant savings and improved customer service for retailers and merchants.

With nearly a decade of experience working with Top 25 retailers and a wide array of major brand name suppliers, CommerceHub manages nearly 1 billion in goods annually on behalf of such industry leaders as Costco, QVC, Staples, Circuit City, eToys, KB Toys, Kmart, Macys, Sears, Target, Walgreens, Dell, Toshiba, Sanyo, Minolta, Gateway and Little Tikes.

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