Philadelphia, PA November 7, 2001 GENCO Distribution System, a retail distribution services firms, announced that it has made a significant investment in technology start-up Slingshot Solutions to develop new Web-based distribution solutions.
GENCO maintains a physical distribution network, which helps major retailers and manufacturers liquidate more than five billion dollars of inventory annually. The investment allows Slingshot to accelerate development of its digital distribution channel technology, which leverages online auctions and exchanges to offer retailers and manufacturers new distribution channels that can provide higher return on liquidated merchandise.
The investment follows the October 1 GENCO/Slingshot announcement of a pilot program to develop digital distribution channels for GENCO. This partnership allows GENCO to offer its customers a full complement of solutions by adding to its suite of services.
When properly developed and managed, digital channels provide an ideal balance to physical liquidation networks, said Bob Hornsby, Slingshot Solutions president. The value gained by increasing product exposure to end-user consumers without requiring multiple physical movements of the merchandise is very compelling to our customers. For minimal incremental investment, we are seeing dramatic increases in asset recovery results using the optimization process we have put in place.
Slingshot Solutions, which will introduce a full suite of merchandise pricing services over the coming year, currently provides the auction management service to retailers, asset recovery companies, and manufacturers.