Duane Reade develops supplier extranet

Drug Store News, Nov 13, 2000

NEW YORK -- Duane Reade is the latest drug chain to develop an extranet for its suppliers. The goal is to use the extranet to make it possible for suppliers to electronically process purchase orders and invoices over the Internet. The chain anticipates having the system up and ready by year's end and to begin converting suppliers to the extranet in the first quarter of 2001.

Chief financial officer John Henry estimated that at least several hundred of Duane Reade's small- to mid-sized suppliers will convert to the system, which should be more cost effective for suppliers transmitting transactions over the Internet.

To implement the system, Duane Reade is using an e-commerce technology solution called ExchangeBuy, developed by eB2B Commerce, which is based in New York.

Henry said that Duane Reade expects to lower its EDI costs significantly through ExchangeBuy while also lowering the transaction processing costs.

In addition to Duane Reade, Rite Aid, Phar-Mor, Happy Harry's and Drug Fair are also using Exchange-Buy to communicate with suppliers.

Duane Reade's chairman and chief executive Anthony Cuti described the service as "EDI over the Internet, providing a common vehicle for us to interface with our vendors." Cuti said the system will "speed up the transmissions process while eliminating errors."