Philadelphia, PA October 3, 2001 GENCO Distribution System, one of the world's largest retail distribution services firms, and Slingshot Solutions today announced a new venture that creates a new distribution channel for retailers and manufacturers which allows auction bidders to always be winners.
The big deal about this is that, unlike other more tentative deals we see by online retailers like Amazon and companies like FairMarket, or Retek, this agreement is the first step to integrating GENCO's total distribution system, which goes far beyond online auctions for liquidation, and involves such channels as overseas liquidators and off-price retailers (such as TJ Maxx), with a software-based solution that will help retailers secure the best price for their goods.
The agreement introduces Slingshot's proprietary inventory disposition system and incorporates it with Genco's extensive liquidation channel network, creating a major new distribution channel for retailers and manufacturers over the Internet. The initial cooperative venture is an auction management service that helps retailers and manufacturers move substantial merchandise volume by matching their excess inventory and refurbished/returned goods with bidders at online auctions.
In contrast to other online liquidation systems Slingshot Solutions integrates into Genco's vast global logistics and warehousing system, and opens the door to a variety of existing distribution channels. With access to multiple channels, including overseas liquidators, off-price retailers, and online consumer auctions, Slingshot Solutions' can provide its customers an optimal mix of asset recovery. Additionally for online channels, Slingshot Solutions offers a unique selection of branding options, managing sales via the increasingly popular Slingshotman brand, or with any other branding preference desired by the retailer.
GENCO has over 100 years of experience providing retailers with the highest possible return on their inventory surplus and returned merchandise. The Slingshot system gives us a new way to serve our clients, giving them the best possible price for their merchandise, said Tim Konrad, GENCO VP of Alliances.
The prototype of Slingshot's auction management service was developed in the fall of 2000 and was successfully launched in pilot tests in early 2001. Since the pilot tests, Slingshot Solutions has effectively directed and managed thousands of online auctions in partnership with GENCO Distribution System. Early testing of the Slingshot system has generated remarkable results, such as more than tripling gross revenue on surplus inventory liquidation, said Bob Hornsby, Slingshot Solutions co-founder and president.