Compliance Networks Announces Release of New Retail Distribution Management Solution and Go-Live at Burlington Coat Factory

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Distribution Management Solution to drive service level improvements

Compliance Networks, a Houston, Texas-based software company, announced the release of a new Retail Distribution Management Solution (DMS) to coincide with a live implementation of DMS at Burlington Coat Factory planned for Fall 2004. Burlington Coat Factory currently uses Compliance Networks’ Vendor Compliance Management Solution and is the first installation for DMS.

DMS is a new product offering in the Warehouse Management arena tailored to the retail flow distribution model. DMS fully supports the activities of central distribution centers, 3rd party logistics providers, and store receiving operations in both direct-to-store and central distribution models. DMS also fully supports pre- and post-distributed purchasing models. The design emphasis on retail-centric supply chains yields superior support for vendor performance verification, floor-ready service support, and same-platform integrated store receiving functionality; in short, a single-source view of the retail logistics organization.

DMS is built on an open source platform which results in faster, less disruptive and therefore less expensive implementations. Designed to adapt to the enterprise instead of forcing the enterprise to adapt to the software, DMS uses a best-practices process model and a best-of-breed exception detection/notification/resolution facility to leverage advance shipment information and optimize the retailer's investment in centralized distribution capacity.

Dave Sanford, VP of Distribution Services for Burlington Coat Factory notes, “We are pleased with our partnership with Compliance Networks. We believe Compliance Networks’ solutions have dramatically increased our performance from cost and service level perspectives. Burlington Coat Factory did an extensive search of the traditional WMS solutions and found them to be originally architected for a traditional manufacturer or wholesale distributor environment, with the retail functionality layered in. We concluded that other WMS solutions did not provide a cost-effective, user-friendly system that allowed us to leverage EDI/ASN distribution. The DMS solution also allows us to optimize opportunistic cross-docking, which will dramatically improve service levels and reduce operating costs. DMS provides comprehensive supply chain visibility from PO generation to point of sale. A real strength of DMS is its ability to proactively identify problems with shipments, as early as receipt of the ASN, and to notify the appropriate user to resolve the issue, thus minimizing negative impact on service levels. Compliance Networks presented us with a fresh new architecture with a 100% retail focus which goes beyond the normal WMS boundaries and allows us to manage our entire distribution enterprise. This additional functionality supports our “push and pull” environment and has the capability to significantly improve our service levels. Their products reflect a strong understanding of the retail industry and we look forward to a continued relationship with Compliance Networks.”

Greg Holder, President of Compliance Networks, states "Installing the Compliance Management System at Burlington Coat Factory was a no-risk opportunity for Burlington and an opportunity for Compliance to build a solid foundation with a good partner. There is no doubt that the success of our CMS implementation at Burlington helped establish a relationship and a comfort level on both sides that allowed Burlington to be our beta for the Distribution Management System. We continue to be excited about working with Burlington, we are excited about the DMS product and we are excited about how we expect DMS to transform the receiving process for Burlington and the retail industry."

About Burlington Coat Factory

Burlington Coat Factory is a national retailer offering clothing, footwear, and accessories for the entire family. The company, founded and incorporated in 1972, owns and operates over 340 stores, including subsidiaries, nationwide. The company has been publicly traded since 1983, and is presently traded on the New York Stock Exchange under the symbol "BCF." Burlington Coat Factory can be found online at http://www.coat.com.

About Compliance Networks

Compliance Networks (CN), Houston, TX based company, offers innovative supply chain solutions designed for retailers. Compliance Networks solutions are centered on the concept of “Visibility, Accountability and Predictability. Compliance Networks is one of the first companies in the supply chain sector to offer no capital investment, self-funding solution. This revolutionary approach to process improvement allows leading edge retailers to reap unprecedented savings in their ongoing supply chain operations while forgoing virtually all of the risks associated with traditional software companies. For the Retailer, the results are a short time to benefit and a low risk, low effort solution that can achieve results in as little as 120 days. For more information visit our website at http://www.compliancenetworks.com

For more information contact:

Pat Beaird

Marketing Director

Compliance Networks

11 Corporate Hill Drive Suite 111

Little Rock, AR 72202

501-247-8696

pat.beaird@compliancenetworks.com

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