This presentation is geared to retail and distribution organizations with complex supply chains. It helps teh senior executive team (CFO, Merchants, Supply Chain executives and CIOs) understand the benefits from supply chain integration and provides a "how to" guide for modern EDI integration B2B e-commerce

1. SPICE Group, Inc. 1-888-400-7950
www.spiceTG.com
excited@spiceTG.com
Head Office
2601 Matheson Boulevard E. , Unit 39
Mississauga, ON L4W 5A8
Cloud Solutions Centre
940 Sheldon Court, Suite 200
Burlington, ON, L7L 5K6
India DevelopmentCentre
S-23, Krishna Marg,
Jaipur, INDIA
Practical Innovation for Retailers, Manufacturers and Distributors
Building a 21st Century Retail Supply Chain
The “Case” for EDI in Retail

2. EDI – A Connected Supply Chain
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Simple I Fast I Affordable
Table Of Contents
 Why EDI?
 What are Best in Class Retailers Doing
 What is EDI?
 Wins for Merchandising, Finance, Supply Chain & IT
 Common Retail EDI Processes
 Developing a Business Case for EDI
 Sample Roadmap for Implementation
 Implementing EDI – “The Plan” & What to expect

3. Why EDI?
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While ERP Streamlines (Internal) Workflow …
• Retailers benefit immediately by streamlining
internal workflow and communications
…Trading Partner (External) Data Not Addressed
• Reduces business case realization for ERP
• Paper, phone calls and faxes propagate
• Affects all departments dealing with Suppliers and
alternate customer channels
Net Result –Still Paper, Spreadsheets, Faxes
• Merchandising affected
• Supply Chain and Logistics affected
• Finance affected
Most best-in-class retailers have automated supply chains with EDI/eBusiness
Disconnected Channels

4. What are “Best in Class” Retailers Doing?
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What Best in Class Retailers Have in Place What Best in Class Retailers Plan to Do Next

5. What is EDI/e-Business
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An automated exchange of business data
• Electronic Data Interchange (EDI) is a program whereby
Trading Partners (such as suppliers, transporters and others)
send and receive data in different formats, directly to and
from Retailer’s ERP systems and in accordance with
Retailer’s business rules.
• This results in improved data exchange between by retailer
and all Trading Partners. Benefit: a significant reduction in
errors, exceptions, manual work and lead times/safety
stock throughout the supply chain.
• EDI is interchangeably described as e-Business and B2B
(business-to-business ecommerce, utilizing modern
internet-based technology). They all mean the same thing.

6. Wins for the CFO
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Accounts Payable
• Significant headcount reduction in labour
• Faster and more accurate 3-way match-and-
attach process
• Savings from automatic checking of negotiated
costs.
• Capture of early payment discounts
• Reduction in vendor inquiries
Evaluated Receipts Settlement (ERS)
• An advanced retailer-supplier workflow where
merchandise is paid for based on issued PO &
DC/Store Receipt (and not on invoice).
• AP headcount reduction and early payment
discount capture
Trade Allowances & Discounts
• Fast capture and reconciliation of special
allowances , discounts and promotions
• Streamlined management and settlement of
chargebacks and vendor deductions
Finance & Reporting
• Accurate and timely accruals of purchases
• Improved inventory & shrink accuracy
• Faster month end closings
Working Capital
• Reduced inventory due to shorter lead times

7. Wins for VP Merchandising
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New Product Listing
• Automated and timely exchange of retailer-supplier data
to reduce timelines associated with new product listings,
get new product to market faster, improve online accuracy
….and receive/process vendor merchandise quickly at the
DC or store
Replenishment & Inventory Management
• Automated PO distribution to suppliers with PO
receipt acknowledgements and delivery date
confirmations significantly improves inbound
visibility, reduces ordering lead time and improves
in-stock positions.
Collaborative Forecasting & Sales Data
• Collaborative Forecasting and sharing of POS data
with suppliers significantly improves in-stock
positions and the customer experience.
Scan-based Trading (pay-per-scan)
• An advanced system of trading that allows suppliers to
manage replenishment of certain categories/SKUs.
Significant cost reductions throughout system.
“Endless Aisle” & Drop-Ship Execution
• Tight EDI/B2B integration with vendors allows for
smoother consumer drop-ship program.

8. Wins for VP Supply Chain & Distribution
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Smooth Inbound Logistics & DC/Store Receiving
• Automated inbound receiving using Advance Ship
Notice (ASN); Significantly improves inbound
visibility and associated operating costs for internal
DC or 3PL
X-Dock and Flow-through Logistics
• Significant reduction in system-wide inventory and
DC Labour costs. EDI enables smooth X-dock
program and enables functioning of a mechanized
DC.
Inbound/Outbound Freight
• Automated management of
transportation contracts and
simplified freight invoice
management.
Promotions Execution
• Ensure promotional items are in-store by
promotional date; reduce expediting costs, and
improve the customer experience.
Reverse Logistics (returns, recalls, repairs)
• Automated execution of return to vendor (RTV)
process; fast execution of product recalls and
streamlined repairs and services.
Source-to-Shelf Visibility for
Exceptions
• Exceptions-based visibility of
product flow from overseas to
shelf or consumer channel and
all points in between.

9. Wins for VP Information Technology
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Improved ERP Utilization
• Utilize several unused features of the
ERP with supplier data integration for
improved overall systems capability in
inventory management, finance and
warehouse management
Improved Master Data Quality &
Business Reporting
• Suppliers and other external partners
generate over 40% -60% of the data that
affects ERP. Data quality and reporting is
a time-honored “IT headache!”
• Automated rules based exchange of data
with trading partners vastly improves
data quality and reporting accuracy.
Modern EDI/e-Business is hassle-free …
• Cloud EDI/e-Business solutions from SPICE allows you to
fully leverage your ERP investments, minimize IT
disruptions and rollout EDI/e-Business to your trading
partners quickly and cost affectively.
…and now inexpensive and fast
• Innovative business models from SPICE allow you
to have your trading partners participate in the
costs of EDI (since they benefit as well – and often
require EDI).
• SPICE provides all the technology and services
needed to deliver a turnkey solution
• No hardware
• No software
• No new IT resources

10. Common Retail EDI Processes
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 Catalogue Update
 POS Data
 Freight Invoice
 Application Error Advise
 PO Change Acceptance
 Text Messages
 New Store Openings
 Motor Carrier Shipment Status
 Purchase Order
 Purchase Order Acknowledgement
 Invoice
 Remittance Advise
 PO Change
 Advanced Ship Notice
 Request for Pick Up Appointment
 Freight PO

11. Developing a Business Case
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1. Reduced Lead Times
[Inventory/WOS]
2. Reduced FTE
3. Reduced Cost Per Case
4. Increased GMROI
5. Increased Turns
6. Increased Sales
7. Increased Margins
8. Increased Working Capital
9. Improved Franchisee
Experience
Your Business Case

12. Building a Roadmap of Benefits
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An Example of an
EDI/B2B Implementation
Roadmap
Merch. Procure-to-Pay
PO, PO-Ack, ASN, MH-10 label,
Invoice, Vendor Catalogue
Benefits: FTE, DC Labour,
Inventory
CPFR & ERS
POS Data, PO Change, Supplier PO
Change, Change Acceptance, Remittance
Advise [eliminate Invoice]
Benefits: FTE, DC Labour, Inventory
Scan-based Trading
Implement for certain categories
Supplier Score-carding
Benefits: FTE, DC Labour, Inventory
6-12 months
6-12 months
6-12 months
Capture low
hanging fruit

13. Implementing EDI: “The Plan”
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BUSINESS IMPACT
SET
• Business Case
• Usually a Pilot with a few large vendors
• Either CFO or Chief Merchant (or both) provide an EDI
mandate to suppliers with timelines.
READY
• A (business) Project Coordinator is assigned to manage
internal task coordination (Merchant or Finance Team)
• SPICE Technical development and rollout tools
configuration
• Inform suppliers of initiative.
GO
• Go for low hanging fruit first
• Test & enable suppliers
• SPICE manages the heavy lifting - rollout to suppliers.
Technology Infrastructure Impact
• Outsourcing EDI to SPICE means SPICE will deal with
complexities of “translating and transforming data” to
and from the many supplier systems to Retailer’s ERP.
• Minimal IT impact to retailer - no hardware, software or
additional IT resources needed. Just need to integrate
once with SPICE Connect Cloud, we will manage
everything else from there on.
SPICE’s Set – Ready – Go EDI Implementation
Framework & Vendor Enablement Tools
reduce your effort and speed up timelines

14. Mirrored Case Studies
SPICE understands the complexitiesof supply chain integration
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