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Verizon gets into supply chain management

By Jim Duffy , Network World , 06/05/2007
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Verizon Business this week entered the supply chain management market through a resale arrangement with GXS, a provider of business-to-business (B2B) e-commerce systems.

Verizon Business will provide large business customers with GXS’s integrated supply chain management services via two new managed service offerings: Custom Supply Chain Managed Services and Invoice Automation Service. Custom Supply Chain Managed Services is intended to automate supply chain processes with or between enterprises; Invoice Automation Service is designed to help customers automate the invoice process and control costs by removing manual processes.

Verizon Business will be the single point of contact and contractor for these services. GXS will step in when specialized supply chain management support is required, the carrier said.

The GXS offerings support B2B e-commerce standards and protocols, including Electronic Data Interchange (EDI), Extensible Markup Language (XML), AS2 and proprietary formats.

Pricing for the services through Verizon Business depend on the customer’s specific requirements, the carrier said. But as an example, the Invoice Automation Service can cost $15,000 to $100,000 per month for 1 million or more documents, the carrier said.

Verizon Business and GXS have an existing relationship. In May, Verizon Business announced that it is providing networking and professional services to support the GXS Trading Grid, the company’s global B2B services platform that allows more than 35,000 business customers to exchange goods and services.

As part of the agreement, Verizon Business is supplying GXS with managed services for its core business network infrastructure.

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