Hubbell Reduces Cost and Effort with Datalliance Vendor Managed Inventory (VMI) Service

• Datalliance replaces Hubbell's first-generation VMI system - providing latest technology at much lower cost
• Hubbell distributors realize increased service levels, improved inventory turns, decreased stock-outs, increased sales and reduced transaction costs

Cincinnati, Ohio, November 10, 2008 - Hubbell Incorporated, an international manufacturer of quality electrical and electronic products for a broad range of non-residential and residential construction, recently replaced their first generation VMI system with the Datalliance VMI service. The result has been reduced cost and effort while improving business results.

Hubbell's first generation VMI system was a traditional software package. Hubbell dedicated three full-time IT resources to maintain the IT infrastructure required to keep their VMI program running smoothly. John Riley, Manager of ePrograms, Hubbell Incorporated, says "It worked OK, but only with considerable support from our in-house IT organization. This effort and its associated cost provided no value to our business and was an additional overhead expense for our VMI program."

Though Hubbell was realizing value from their VMI program, the costs and effort to support and maintain the system were high. "We moved to Datalliance to take advantage of the latest technology and the Software as a Service (SaaS) approach," says Riley. "It gave us all the benefits of our existing VMI program and more - but at a much lower cost. By taking the IT system and infrastructure costs out of the picture, we dramatically reduced the costs of running our VMI program."

"Eliminating the IT resources and costs has allowed us to re-allocate those resources to direct value-added activities in the form of VMI customer service reps. We are now able to focus 100% of our activity directly on customers. Our VMI reps work with our field reps to fine tune the VMI process with each distributor. This enhances customer relationships and makes our VMI program more successful in terms of increased business for both our distributors and Hubbell."

Hubbell found that the VMI logic in Datalliance to smooth inventory and calculate the correct product mix is more sophisticated than their first generation VMI software. "Each distributor relationship is unique and Datalliance gives us the tools to fine tune the product mix for each individual customer based on a variety of factors and variables that differ from distributor to distributor," explains Riley. "Datalliance is also much easier to use and more intuitive than our original VMI system."

"All of our second generation VMI distributor relationships have realized increased service levels, improved inventory turns, decreased stock-outs, increased sales, and reduced transaction costs. The increase in sales and improved turns is a direct reflection of our refined ability to have the right mix of product on our customer's shelves when they need it.", concluded John Riley.

About Datalliance

Datalliance is the world's largest independent VMI service provider, processing over $4.8 billion in orders, 10.2 million SKUs, and 25,300 locations. Delivered as a managed service via the Internet using the 'Software as a Service' (SaaS) model, Datalliance VMI makes it easy for suppliers and their customers to establish effective VMI relationships that fully align business objectives, improve collaboration, and streamline supply chain operations. Datalliance serves leading Fortune 1000 companies in a number of different industries. For more information about Datalliance and VMI, visit www.datalliance.com

Contact: Brian Lindner, Datalliance
513-791-7272 or blindner@datalliance.com