The NY/NJ EDI User Group Meeting

October 18, 2005

Web-based EDI

Today and Tomorrow

Presented by

Marc Kalman

Chief Executive Officer

eZCom Software Inc.

Who is eZCom?

The Beginning of Web EDI

Web EDI Today

Industry Trends

Advantages of Web EDI Solutions

The Future

Presentation Overview

BEGINNING

What is EDI?

A set of managed standards that allow Buyers and Sellers to exchange business critical documents electronically.

Originally targeted to Large Vendors

BuyersSellers

Electronic Data Interchange

Web Forms Surface

EDI initially between large retailers and large vendors

Too Cost Prohibitive for Small and Medium

Web Forms Surface

Solutions Providers developed specific HTML Interfaces

Only from the Retailer perspective for Compliance

Chargebacks Assessed; Retailers Distanced from Providers

Web Forms Surface

Single Document Processing

Not designed for Vendor Efficiency

Having to Manage Multiple Interfaces

Expensive Fax Machine

TODAY

More Affordable Internet

Internet

Improved Internet; Lower Costs; Broadband More Common

Applications Moving Online (ASPs)Sales Force Automation

Customer Relation Management

Warehouse Management

Order Management

EDI Providers Step it Up

Transition from EDI Web-Forms to Enterprise Applications

More Features

More Document Types

Enhanced Business Rules Validation

Faster Performance and Improved Efficiency

Case Study #1

“Vendor A” using EDI Web-FormProcessing 1 ASN for 1 Order at a Time

Very Tedious & Time Consuming Process

Took 5 Business Days to Create ASNs from Orders for 1 Retailer

“Vendor A” switches to eZCom’s Capable of Batch Processing over 1,000 Documents

Defaults and Customized Settings Help Streamline

1,000 Standard Pack ASNs Created in under 10 Minutes

No EDI Compliance Chargebacks

Industry Trends

RetailersRapidly Increasing EDI/EC Demands

Additional Document Types

Faster Deployment

Retailers Expecting More from SMB Vendors

Lines of Distinction between Small and Large Vendors are Blurring

Technology AdvancementsVAN ◄► AS2 ◄► Secure FTP

EDI X12 ◄► EDIFACT ◄► XML ◄► Proprietary Formats

EDI vs XML

EDI is a process, not a technology

X12 is not being replaced any time soon

Companies have large investments in current EDI infrastructure

XML is better for parsing data

XML widely used to compliment X12, not replace it

Can’t We All Just Get Along?

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Hosted Solutions

I/T Trends are leaning towards hosting/outsourcing

Companies conserving Costs

Offshore Development Common

Hosted Solutions

“CIOs are addressing users' IT demands by finding service providers that will host,

maintain, and upgrade applications and systems for them. “

“Many multibillion-dollar organizations are turning to hosted software and systems for the same cost savings and convenience—except on a larger scale.”

Host with the Most

Hosted Solutions

“U.S. spending on software as a service topped $3 billion in 2003, growing 32% over the previous year. It will reach $9

billion by 2008.”

SOURCE: IDC

Hosted Application Benefits

EDI is not a Vendor’s core function

Allows Vendors to stay focused on Business Aspects of EDI

One application supports all technologies

Rapid Deployment (setups within 24 hours)

Hosted Application Benefits

Hosted Solutions are In-House – Outsourcing Hybrids

Keeps up with changes, minimizing complexities for Vendors

Systems and requirements are maintained and upgraded with no impact

Access to Industry Experts that Become Extension to Company

Case Study #2

“Vendor B” has In-House EDI SystemHas Gentran Director supporting multiple Trading Partners

Integrates with Back-Office System

Has In-House EDI Coordinator/Mapper

“Vendor B” Needs Quick Path to Production with New Partner Vendor registers with eZCom

Within 24 hours, Vendor was in Production with New Partner via

Next Trading Partner, Vendor spent 1 month working on In-House

Then had eZCom setup, and was in production within a few days

TOMORROW

Additional Features

Data Mining Tools, Sales Analysis

Data Synchronization, RFID

Additional Automation

Improved Intelligence

Additional Features

Real-time Collaboration

Overseas – International Shipping Management

Full 3PL Integration and WMS Capabilities

Convergence of Disparate Systems

Q & A

Contact Information:

Marc Kalman

Chief Executive Officer

877.765.3564 ext 6850

www.ezcomsoftware.com

“Trade Made Fluent”