COST COMPARISON BETWEEN E-COM SYSTEMS AND TRADITIONAL VANS

E-Com Systems offers a much lower transaction cost per kilocharacter of information transmitted than that of the higher cost traditional VANs. The immediate savings that are made possible through the adoption of the E-Com Systems' approach are reflected in the three sample cost comparisons of three different traditional VAN services that appear below. These comparisons are based upon actual information provided to E-Com Systems by customers as they made their decision to utilize E-Com Systems, Inc. as the provider of their Internet-based EDI services.

* Traditional VAN A - A customer of this VAN indicated that in a given period they had transmitted 15,257 kilocharacters through their VAN. For this service they were billed a total of $5,175.41, which amounts to an effective per kilocharacter rate of $0.339. For the same amount of traffic with E-Com Systems, they would be billed a total of $2,288.55 - which works out to a 55.8% savings of $2,886.86.

* Traditional VAN B - A customer of this VAN indicated that in a given period they had transmitted 14,303 kilocharacters through their VAN. For this service they were billed a total of $3,468.17, which amounts to an effective per kilocharacter rate of $0.242. For the same amount of traffic with E-Com Systems, they would be billed a total of $2,145.45 - which works out to a 38.1% savings of $1,322.72.

* Traditional VAN C - A customer of this VAN indicated that in a given period they had transmitted 29,841.5 kilocharacters through their VAN. For this service they were billed a total of $10,983.60, which amounts to an effective per kilocharacter rate of $0.368. For the same amount of traffic with E-Com Systems, they would be billed a total of $4,476.23 - which works out to a 59.2% savings of $6,507.37.

As can be seen from the above examples, the savings in transaction costs that will be achieved by contracting with E-Com Systems to be your EDI service provider are substantial.