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When Wal-Mart speaks

Staff -- Industrial Distribution, 11/1/2003

NEW YORK — A move by Wal-Mart to use software to connect with its suppliers is giving a lift to the depressed supply chain software sector. Wal-Mart's suppliers are scrambling to purchase software to do business with the company, which is moving from a maze of private networks to an Internet-based system.

The new system, supplied by Dallas-based iSoft Corp., will be used to exchange information such as purchase orders and invoices around the world. The announcement was made a year ago, but Wal-Mart set a deadline for its suppliers to be up and running on it by the end of 2003.

While the traditional electronic data exchange over private networks operate via various standards, the Internet-based exchange uses a single standard, simplifying matters and keeping costs low.

"It's something we really use and depend on," said Wal-Mart spokesman Tom Williams. He added that the new system allows suppliers to check sales details, "item by item, day by day."

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