The Proaction Group 9 box Workshop

Turn and Earn – an 80/20
approach to inventory and
customers
October, 2016

2
The One Thing
Today we will explore an established, reliable methodology to highlight
and quantify opportunities to improve earnings and reduce inventory, after
evaluating the effectiveness of current SKU, pricing strategy and customer
management.
What is the One Thing you want to come away with from this workshop?

4
Introduction
• Segmentation
• Triangulation
• Experience

5
Workshop Agenda
• Introduction
• Discussion – To segment or not to segment. The 9
Boxes.
• Review 9-Box methodology
• Group Exercise
• Advanced Topics – Fully Leverage the Data
– Slotting strategies
– DC Optimization
• Conclusion

6
“9-Box” Analysis – Summary
• These 9 boxes profile inventory in segments
based on volume and volatility
• ABC Volume Segmentation is calculated based
on COGS
– A Items – First 80% of COGS
– B Items – Next 15% of COGS
– C Items – Final 5% of COGS
• Volatility Segmentation incorporates the
standard deviation of weekly shipments
• Low Volatility – Ratio of StDev of weekly shipments to
average weekly shipments < .7
• Medium – Ratio is between .71 and 1.0
• High – Ratio is above 1.0
Low  High
Volatility
Volume
HighLow
• We profile each segment in terms of:
– Total Sales
– Number of transactions
– Number of SKUs
– Gross Margin
– Inventory Investment ($)
– Return on Inventory (Turn and Earn)
– Days on Hand

7
“9-Box” – Differentiated Inventory Strategy Development
 Make little and often
 Block scheduling
 Calculated safety stock
 Visual / demand triggers
L M H
A
B
C
Usage
Demand Volatility
 Make / buy bigger batches
 Automate replenishment
triggers
 Block scheduling for
base demand
 Minimize response
time to demand
triggers
 Additional safety stock
 SKU Rationalization
 Product substitution
 Pricing / terms
 Inventory disposition
options

8
“9-Box” – Analysis Logic
• Data taken from TTM (annualized for items with less than 1 year of
history)
• Average demand and volatility are calculated excluding weeks in
which there is no demand (0 demand weeks are not included in the
calculation).
• “Transactions” summarizes the number of lines on which the part was
included during the year.
• “Turn and Earn” is a measure of return on the investment in inventory.
The formula used is:
– Inventory turns (based on COGS) * Gross Margin %
– A turn and earn ratio of 120 is generally considered a minimum level for
distributors
• Operating Margin estimated by allocated $160.82 to each transaction.
The intent is to spread COMPANY’s cost for Labor, Service and Burden
over all orders.

9-Box Example: Finished Goods
Highlighting:
Full Company vs. Product Family
Full Company vs. Facility
Volatility AND Customer Segmentations
Pricing and Inventory Improvement Calculations

10
Inventory FG / Raw Breakdown
Developing the Summary
Show total Inventory and how it
breaks down between FG, Raw, New
products, dead products

11
9-Box Summary Notes
• Analysis is based on 52 weeks of sales history data starting 7.1.2014
through 6.28.2015 and associated inventory values at the end of the
period.
• Client business is highly seasonal driven by weather
• Mixing fees for both internal and external mixing and vendor-direct
mixing are not included in the COGS data. NOTE: analysis showed impact at
this time is negligible.
• Average demand and volatility are calculated excluding weeks in
which there is no demand (0 demand weeks are not included in the
calculation).
• “Lines” summarizes the number of lines on which the part was
included during the year.
• “Turn and Earn” is a measure of return on the investment in
inventory. The formula used is:
 Inventory turns (based on COGS) * Gross Margin %
 A turn and earn ratio of 120 (based on Gross Margin) is generally considered a
minimum level for distributors.

• Good
 High return on Inventory
for “A” items
 Margins tend to
increase with lower
volume items
 Realizing 80% of sales
on 16% of total items
• Opportunities
 38% of Total Sales are
from high volume / high
volatility items
 Margin opportunity on
high volatility / D-Volt
items ref: next slide
 13% of Total Sales are
from D-volatility (i.e.,
less than 5 weeks of
COGS) items
 All B and C volume
segments have poor
return on inventory
9-Box Volume vs. Volatility – All Facilities / Products
ABC Data Low Medium High D <5wks Orders Totals
Sales 14,589,764$ 25,455,758$ 41,109,124$ 4,616,244$ 85,770,890$
% of Total Sales 14% 24% 38% 4% 80%
COGS (10,540,162)$ (17,877,248)$ (29,064,138)$ (3,263,604)$ (60,745,152)$
Transactions 13,814 25,576 32,248 300 71,938
$ / Transaction 1,056$ 995$ 1,275$ 15,387$ 1,192$
SKUs 126 210 204 54 594
$ / SKU 115,792$ 121,218$ 201,515$ 85,486$ 144,395$
Gross Margin 4,049,604$ 7,578,510$ 12,044,992$ 1,352,640$ 25,025,746$
GM% 28% 30% 29% 29% 29%
GM / Transaction 293$ 296$ 374$ 4,509$ 348$
GM / SKU 32,140$ 36,088$ 59,044$ 25,049$ 42,131$
Turn and Earn 143 105 136 550 131
Inventory $ 2,049,226$ 5,064,332$ 6,263,358$ 173,779$ 13,550,695$
Days of Inventory 71 103 79 19 81
Total Sales 3,306,880$ 4,085,328$ 3,625,748$ 5,351,236$ 16,369,192$
% of Sales 3% 4% 3% 4.99% 15%
COGS (2,326,446)$ (2,649,944)$ (2,527,906)$ (3,818,462)$ (11,322,758)$
Transactions 5,392 9,668 7,390 1,224 23,674
$ / Transaction 613$ 423$ 491$ 4,372$ 691$
SKUs 188 212 198 362 960
$ / SKU 17,590$ 19,270$ 18,312$ 14,782$ 17,051$
Gross Margin 980,434$ 1,425,384$ 1,097,844$ 1,532,774$ 5,036,436$
GM% 30% 35% 30% 29% 31%
GM / Transaction 182$ 147$ 149$ 1,252$ 213$
GM / SKU 5,215$ 6,724$ 5,545$ 4,234$ 5,246$
Turn and Earn 62 67 52 169 75
Inventory $ 1,109,228$ 1,389,047$ 1,474,867$ 648,933$ 4,622,075$
Total Sales 601,000$ 389,888$ 467,890$ 3,545,818$ 5,004,596$
% of Sales 1% 0% 0% 3.31% 5%
COGS (404,730)$ (247,922)$ (250,652)$ (2,501,076)$ (3,404,380)$
Transactions 1,926 2,162 1,418 3,744 9,250
$ / Transaction 312$ 180.34$ 329.96$ 947.07$ 541.04$
SKUs 178 110 104 1,796 2,188
$ / SKU 3,376$ 3,544$ 4,499$ 1,974$ 2,287$
Gross Margin 196,270$ 141,966$ 217,240$ 1,044,742$ 1,600,218$
GM% 33% 36% 46% 29% 32%
GM / Transaction 102$ 66$ 153$ 279$ 173$
GM / SKU 1,103$ 1,291$ 2,089$ 582$ 731$
Turn and Earn 33 30 16 33 30
Inventory $ 405,526$ 300,024$ 724,559$ 2,239,022$ 3,669,132$
Days of Inventory 366 442 1,055 327 393
Total Sales 18,497,644$ 29,930,974$ 45,202,762$ 13,514,525$ 107,145,905$
% of Sales 17% 28% 42% 13% 100%
COGS (13,271,338)$ (20,775,114)$ (31,842,696)$ (9,583,142)$ (75,472,290)$
Transactions 21,132 37,406 41,056 5,274 104,868
$ / Transaction 875$ 800$ 1,101$ 2,562$ 1,022$
SKUs 492 532 506 2,214 3,744
$ / SKU 37,597$ 56,261$ 89,334$ 6,104$ 28,618$
Gross Margin 5,226,308$ 9,145,860$ 13,360,076$ 3,932,610$ 31,664,854$
GM% 28% 31% 30% 29% 30%
GM / Transaction 247$ 245$ 325$ 746$ 302$
GM / SKU 10,623$ 17,191$ 26,403$ 1,776$ 8,457$
Turn and Earn (GM) 105 94 111 91 102
Inventory $ 3,563,980$ 6,753,403$ 8,462,785$ 3,061,734$ 21,841,902$
6,785,990$
Inventory $$ Part not in Sales History
VOLATILITY
A (Top 80% of
COGS)
B (Next 15% of
COGS)
C (Final 5% of
COGS)

• Good
 Solid margins with
large customers and
increase with smaller
customers
 65% of sales come
from high volume /
large customers (AA)
 88% of sales comes
from high volume /
large customers (AA,
AB, BA)
• Opportunities
 16% of total
customers make-up
80% of sales –
excellent opportunity
to create unique
program offerings to
these select
customers
9-Box: Volume vs. Customer – All Facilities / Products
ABC Data Large Medium Small Totals
Total Sales 70,051,126$ 12,135,830$ 3,583,936$ 85,770,892$
% of Sales 65% 11% 3.3% 80%
COGS (50,022,648)$ (8,261,654)$ (2,460,472)$ (60,745,148)$
# of Customers 666 1,022 2,246 3,936
Transactions 46,162 15,868 9,904 71,938
Sales / Transaction 1,518$ 765$ 362$ 1,192$
Gross Margin 20,028,478$ 3,874,176$ 1,123,464$ 25,025,744$
GM% 29% 32% 31% 29%
GM / Transaction 434$ 244$ 113$ 348$
Turn and Earn (GM) 131
Inventory $ 13,550,695$ TURNS
Days of Inventory 81 4.5
Total Sales 13,081,690$ 2,526,346$ 761,158$ 16,369,194$
% of Sales 12% 2% 1% 15%
COGS (9,100,708)$ (1,723,488)$ (498,254)$ (11,322,758)$
# of Customers 622 810 1,350 2,786
Transactions 14,468 5,364 3,838 23,674
Sales / Transaction 904$ 471$ 198$ 691$
Gross Margin 3,980,982$ 802,858$ 262,904$ 5,046,436$
GM% 30% 32% 35% 31%
GM / Transaction 275$ 150$ 69$ 213$
Total Sales 3,110,600$ 1,409,326$ 484,672$ 5,004,598$
% of Sales 3% 1% 0% 5%
COGS (2,104,658)$ (968,048)$ (331,272)$ (3,404,380)$
# of Customers 540 584 728 1,854
Transactions 5,268 2,478 1,498 9,250
Gross Margin 1,005,942$ 441,278$ 153,400$ 1,600,218$
GM% 32% 31% 32% 32%
GM / Transaction 191$ 178$ 102$ 173$
Total Sales 86,245,870$ 16,071,502$ 4,829,766$ 107,147,138$
% of Sales 80% 15% 5% 100%
COGS (61,228,014)$ (10,953,190)$ (3,289,998)$ (75,472,286)$
# of Customers 334 528 1,261 2,126
Transactions 65,904 23,710 15,240 104,868
Gross Margin 25,017,856$ 5,118,312$ 1,539,768$ 31,674,852$
GM% 29% 32% 32% 30%
GM / Transaction 380$ 216$ 101$ 302$
Inventory $ $21,841,902
6,785,990$ 685
Days of Inventory 138 INV SKUs w/o COGS
CUSTOMER
A (Top 80% of
COGS)
$13,550,695
B (Next 15% of
COGS)
$4,622,075
C (Final 5% of
COGS)
$3,669,132
$21,841,902

Raw Material / Consumption 9-Box
NOTES
TOTAL "Consumed" Item #s: 1934
• 1312 can be both consumed (RM) &
sold as FGs
• 622 have no FG COGS (i.e., just RM
OR not sold in past year)
• The 622 Items that have "just" RM
Consumption make up $ 5,220,298
• of the $20,921,510 TOTAL Inventory
shown here (i.e., 25%)
OPPORTUNITY
• A total reduction of $9,953,457
• in ABC VOLT Raw Material INV by
meeting DOH targets
• An additional $431,798 can be
safely reduced from the $5,730,748
• D VOLT INV without impacting
service level (probably much higher,
this is cursory review).
RESULTING TOTAL INVENTORY
REDUCTION for 1934 “Consumed”
Item Numbers: $10,169,356
Less Than
ABC Data Low Medium High 5 Wks Consumption Totals
SKUs 36 54 74 32 196
Usage (COST) (6,692,582)$ (7,176,715)$ (12,103,511)$ (2,855,813)$ (28,828,622)$
FG COGS (2,373,686)$ (3,721,010)$ (9,297,582)$ (553,366)$ (15,945,644)$
Inventory 1,524,632$ 5,486,170$ 3,126,676$ 880,514$ 11,017,992$
Pounds (LBS) (32,551,479) (6,574,024) (8,418,118) (2,635,540) (50,179,162)
Days 61 184 53 94 90
Target Days 30 30 30 -
Reductions 779,459$ 4,590,467$ 1,367,682$ 6,737,608$
SKUs 44 54 84 104 286
Usage (COST) (574,283)$ (645,378)$ (1,044,389)$ (1,136,482)$ (3,400,531)$
FG COGS (2,252,712)$ (1,216,200)$ (3,079,476)$ (6,413,722)$ (12,962,110)$
Inventory 337,688$ 865,122$ 1,021,774$ 609,143$ 2,833,727$
Pounds (LBS) (2,588,077) (600,752) (1,703,623) (1,440,353) (6,332,805)
Days 44 170 90 29 63
Target Days 30 45 45 - 120
Reductions 105,332$ 635,612$ 513,352$ 1,254,297$
SKUs 150 116 74 1110 1,450
Usage (COST) (216,731)$ (238,338)$ (159,823)$ (1,111,209)$ (1,726,102)$
FG COGS (2,828,376)$ (2,174,598)$ (1,394,690)$ (11,454,800)$ (17,852,464)$
Inventory 1,298,788$ 948,178$ 581,734$ 4,241,087$ 7,069,787$
Pounds (LBS) (1,207,673) (319,616) (280,175) (1,192,235) (2,999,699)
Days 156 143 137 123 132
Target Days 60 60 60 - 180
Reductions 858,779$ 753,081$ 349,693$ 1,961,552$
SKUs 230 224 232 1,248 1,934
Usage (COST) (7,483,596)$ (8,060,431)$ (13,307,723)$ (5,103,504)$ (33,955,255)$
FG COGS (9,828,460)$ (10,832,818)$ (23,069,330)$ (18,975,254)$ (46,760,218)$
Inventory 3,161,108$ 7,299,470$ 4,730,184$ 5,730,749$ 20,921,510$
Pounds (LBS) (36,347,229) (7,494,393) (10,401,916) (5,268,178) (59,511,717)
Days 67 141 47 87 95
Target Days 120 135 135 - 390
Reductions 1,743,570$ 5,979,159$ 2,230,727$ 215,899$ 10,169,356$
TOTALS
VOLATILITY
A (Top 80% of
USAGE)
B (Next 15% of
USAGE)
C (Final 5% of
USAGE)

Year-to-Year Volatility
 Data reflects little to no variability between years
 Spring Peak Season: Mid FEB to Mid MAY (12 Weeks)
 Fall Peak Season: 3rd Week JUL to End SEP (10 Weeks)
 Spring Season AVG COGS / Week is 1.8x Higher than Fall Peak Season
Fall Peak
Season
Spring
Peak
Season

17
9-Box Example – FG: Inventory Improvement Summary
- Full Company
• Company has over $18 million in Inventory.
Recalculating based on Segmented Analysis shows they
need $9 million.
Current Days A B C Current Inv A B C
A 71 103 79 A 2,049,226$ 5,064,332$ 6,263,358$
B 174 191 213 B 1,109,228$ 1,389,047$ 1,474,867$
C 366 442 1,055 C 405,526$ 300,024$ 724,559$
18,780,168$
Target Days A B C Target Inv A B C
A 30 45 60 A 866,315$ 2,204,044$ 4,777,667$
B 60 75 90 B 382,429$ 544,509$ 623,319$
C 120 140 180 C 133,062$ 95,093$ 123,609$
9,750,048$
Days
Reduced
A B C
Resulting
Inv
Reduction
A B C
A 41 58 19 A 1,182,911$ 2,860,287$ 1,485,692$
B 114 116 123 B 726,799$ 844,538$ 851,548$
C 246 302 875 C 272,464$ 204,931$ 600,950$
9,030,120$
Current State
Proposed State
Net Change

Division A 9-Box: Volume & Volatility Notes:
All Segments with the
exception of AC and BD have
low or poor T&E Ratios which
is most likely attributable to
high inventory levels.
Margins look good with
exception of BA which only
represents 1% of total sales.
A rather large number of A
volume SKUs (372 of 1002)
make up 87% of sales.
A Volume SKUs receive 6.4x
more sales versus B SKUs
and 38x more sales than C
SKUs.
There is risk with 33% of total
sales in the AC Segment.
Scheduling and / Inventory
Strategy should be reviewed
to reduce OOS situations.
See "INV Plan" tab for an
opportunity to reduce
inventory by $1,313,316.
This opportunity DOES NOT
include the $245,036 of
inventory w/o sales in past
year (does NOT factor in
consumption data).
There are is a sizeable
amount of new(?) SKUs
(2,212 of ) with less than 5
weeks of orders making up
23% of total sales. REF "D
Volatility" column.
Sales 937,497$ 6,887,659$ 6,186,254$ -$ 14,011,409$ Sales
% of Total Sales 6% 43% 38% 0% 87% 87%
COGS (625,844)$ (4,837,604)$ (4,175,236)$ -$ (9,638,683)$ Trans %
Transactions 1,426 7,522 7,638 - 16,586 72%
$ / Transaction 657$ 916$ 810$ #DIV/0! 845$ SKU %
SKUs 56 162 154 - 372 37%
$ / SKU 16,741$ 42,516$ 40,170$ #DIV/0! 37,665$ % TOT GM
Gross Margin 311,653$ 2,050,055$ 2,011,018$ -$ 4,372,726$ 86%
GM% 33% 30% 33% #DIV/0! 31% AVG INV / SKU
GM / Transaction 219$ 273$ 263$ #DIV/0! 264$ $6,560
GM / SKU 5,565$ 12,655$ 13,059$ #DIV/0! 11,755$
Turn and Earn (GM) 74 117 146 #DIV/0! 123
Inventory $ 282,064$ 1,231,771$ 926,607$ -$ 2,440,441$ TURNS
Days of Inventory (45) 165 93 81 #DIV/0! 92 3.9
Total Sales 194,106$ 713,600$ 693,997$ 165,311$ 1,767,015$ Sales
% of Sales 1% 4% 4% 1.03% 11% 11%
COGS (142,324)$ (465,936)$ (455,787)$ (115,284)$ (1,179,331)$ % TRANS
Transactions 658 2,324 2,018 90 5,090 22%
$ / Transaction 295$ 307$ 344$ 1,837$ 347$ % SKUs
SKUs 40 116 128 16 300 30%
$ / SKU 4,853$ 6,152$ 5,422$ 10,332$ 5,890$ % TOT GM
Gross Margin 51,782$ 247,665$ 238,210$ 50,027$ 587,684$ 12%
GM% 27% 35% 34% 30% 33% AVG INV / SKU
GM / Transaction 79$ 107$ 118$ 556$ 115$ $1,459
GM / SKU 1,295$ 2,135$ 1,861$ 3,127$ 1,959$
Turn and Earn (GM) 59 90 89 179 90
Inventory $ 64,005$ 178,831$ 175,329$ 19,507$ 437,672$ TURNS
Days of Inventory (90) 164 140 140 62 135 2.7
Total Sales 72,419$ 65,157$ 55,358$ 131,079$ 324,012$ Sales %
% of Sales 0% 0% 0% 0.81% 2% 2%
COGS (47,959)$ (38,657)$ (38,646)$ (88,844)$ (214,106)$ % TRANS
Transactions 320 400 328 354 1,402 6%
$ / Transaction 226$ 162.89$ 168.77$ 370.28$ 231.11$ % SKUs
SKUs 40 62 50 176 328 33%
$ / SKU 1,810$ 1,051$ 1,107$ 745$ 988$ % TOT GM
Gross Margin 24,460$ 26,500$ 16,712$ 42,235$ 109,906$ 2%
GM% 34% 41% 30% 32% 34% AVG INV / SKU
GM / Transaction 76$ 66$ 51$ 119$ 78$ $618
GM / SKU 611$ 427$ 334$ 240$ 335$
Turn and Earn (GM) 70 51 73 22 36
Inventory $ 23,271$ 30,883$ 15,926$ 132,581$ 202,661$ TURNS
Total Sales 1,204,021$ 7,666,416$ 6,935,609$ 298,844$ 16,104,890$
% of Sales 7% 48% 43% 2% 100%
COGS (816,127)$ (5,342,196)$ (4,669,668)$ (204,129)$ (11,032,120)$
Transactions 2,404 10,246 9,984 450 23,084
$ / Transaction 501$ 748$ 695$ 664$ 698$
SKUs 136 340 332 194 1,002
$ / SKU 8,853$ 22,548$ 20,890$ 1,540$ 16,073$
Gross Margin 387,895$ 2,324,220$ 2,265,940$ 94,716$ 5,072,771$
GM% 32% 30% 33% 32% 31%
GM / Transaction 161$ 227$ 227$ 210$ 220$
GM / SKU 2,852$ 6,836$ 6,825$ 488$ 5,063$
Turn and Earn (GM) 71 112 136 43 113 TOTAL INV
Inventory $ 369,339$ 1,441,485$ 1,117,863$ 152,088$ 3,080,774$ 3,325,811$
245,036$ 308
Days of Inventory 165 98 87 272 102 INV SKUs w/o COGS
VOLATILITY
A (Top 80% of
COGS)
B (Next 15% of
COGS)
C (Final 5% of
COGS)

Division A 9-Box: Volume & Customer
Notes:
Margins look good for all
Segments: increasing with
smaller customers and
increasing with smaller
volume SKUs. Exception
with the CA Segment.
B and C Volume SKUs
have too much inventory.
See V&V 9-Box for
possible scenarios to
improve.
400 of 1590 (25%) of Large
Customers (A) make-up
76% of Sales - like other
DCs, opportunity to create
unique program offerings to
these customers.
AA: High Volume SKUs /
Large Customers make up
67% of Sales.
764 of 992
39%
ABC Data Large Medium Small No / Neg Sales Totals
Total Sales 10,724,292$ 2,384,733$ 902,385$ -$ 14,011,409$
% of Sales 67% 15% 5.6% 0.00% 87% v 80%
COGS (7,368,050)$ (1,654,990)$ (615,643)$ -$ (9,638,683)$ 87%
# of Customers 200 189 405 1 795
Transactions 10,856 3,206 2,524 - 16,586
Sales / Transaction 988$ 744$ 358$ #DIV/0! 845$
Gross Margin 3,356,241$ 729,743$ 286,742$ -$ 4,372,726$
GM% 31% 31% 32% #DIV/0! 31%
GM / Transaction 309$ 228$ 114$ #DIV/0! 264$
Total Sales 1,311,474$ 274,811$ 180,730$ -$ 1,767,015$
% of Sales 8% 2% 1% 0.00% 11%
COGS (873,581)$ (185,193)$ (120,280)$ (276)$ (1,179,331)$
# of Customers 200 189 405 1 795
Transactions 3,290 868 930 2 5,090
Sales / Transaction 399$ 317$ 194$ -$ 347$
Gross Margin 437,893$ 89,618$ 60,450$ (276)$ 587,684$
GM% 33% 33% 33% #DIV/0! 33%
GM / Transaction 133$ 103$ 65$ (138)$ 115$
Inventory $ 437,672$ TURNS
Total Sales 183,465$ 61,776$ 78,771$ -$ 324,012$
% of Sales 1% 0% 0% 0.00% 2%
COGS (117,206)$ (42,250)$ (54,247)$ (402)$ (214,106)$
# of Customers 200 189 405 1 795
Transactions 812 224 360 6 1,402
Gross Margin 66,259$ 19,525$ 24,524$ (402)$ 109,906$
GM% 36% 32% 31% #DIV/0! 34%
GM / Transaction 82$ 87$ 68$ (67)$ 78$
Total Sales 12,221,685$ 2,721,319$ 1,161,886$ -$ 16,104,890$ 764
% of Sales 76% 17% 7% 0% 100% 580
COGS (8,358,838)$ (1,882,433)$ (790,170)$ (679)$ (11,032,120)$ 580 of 1984
# of Customers 200 189 405 2 796 29%
Transactions 14,964 4,298 3,814 8 23,084
Gross Margin 3,862,847$ 838,886$ 371,716$ (679)$ 5,072,771$
GM% 32% 31% 32% #DIV/0! 31%
GM / Transaction 258$ 195$ 97$ (85)$ 220$
Turn and Earn (GM) 104 TOTAL INV
Inventory $ $3,080,774 3,325,811$
245,036$ 308
CUSTOMER
A (Top 80% of
COGS)
$2,440,441
B (Next 15% of
COGS)
$437,672
C (Final 5% of
COGS)
$202,661
$3,080,774

21
Division A 9-Box: Inventory Target Calculation Summary
Current
Days A B C Current Inv A B C
A 165 93 81 A 282,064$ 1,231,771$ 926,607$
B 164 140 140 B 64,005$ 178,831$ 175,329$
C 177 292 150 C 23,271$ 30,883$ 15,926$
2,928,686$
A 30 45 60 A 51,439$ 596,417$ 686,340$
B 60 75 90 B 23,396$ 95,740$ 112,386$
C 120 140 180 C 15,767$ 14,827$ 19,058$
1,615,371$
Days
Reduced
A B C
Resulting
Inv
Reduction
A B C
A 135 48 21 A 230,624$ 635,354$ 240,267$
B 104 65 50 B 40,609$ 83,090$ 62,943$
C 57 152 (30) C 7,503$ 16,056$ (3,132)$
1,313,315$
Notes:
This analysis calculates the current days of sales in inventory by Volume and Volatility Segment. The Proposed
State highlighted in Yellow shows the target inventory levels by segment. The Net Change section calculates the
increase or decrease in inventory by segment based on the target levels.
Current State
Proposed State
Net Change

22
Division A 9-Box: Target Pricing Calculation Summary
Current
Margin
A B C
Current
Sales
A B C
A 33% 30% 33% A 937,497$ 6,887,659$ 6,186,254$
B 27% 35% 34% B 194,106$ 713,600$ 693,997$
C 34% 41% 30% C 72,419$ 65,157$ 55,358$
15,806,046$
Targeted
Margin A B C
Resultant
Sales A B C
A 33% 34% 35% A 937,497$ 7,196,154$ 6,355,465$
B 34% 35% 36% B 208,792$ 713,600$ 703,588$
C 34% 41% 42% C 72,419$ 65,157$ 61,896$
16,314,568$
Increased
Margin Pts
A B C
Increased
Sales
A B C
A 0% 4% 3% A -$ 308,495$ 169,212$
B 8% 0% 1% B 14,686$ -$ 9,591$
C 0% 0% 12% C -$ -$ 6,538$ Increase In Sales
508,522$ 3%
Notes:
Current State
Proposed State
Net Change
This analysis calculates the marginal sales / EBITDA that would come from ensuring that smaller customers and
SKU's have at least the same margin as A customers / A SKU's.

Division B 9-Box: Volume & Volatility
Notes:
84% of sales come from A volume
SKUs w/ 37% in the high volatility
segment. As with the overall 9-
Box - careful planning and
inventory management is needed
to avoid out-of-stock (oos) events
for both AB and AC segments.
A Volume SKUs receive 5x more
sales versus B SKUs and 16.5x
more sales than C SKUs.
All 9 segments have poor T/Es
which clearly is a result of high INV
in all segments.
Margins look good: improving with
lower volume SKUs and increasing
Volatility.
As mentioned above, all segments
have large amounts of inventory
days on hand.
opportunity to reduce inventory by
$1,642,959.
include the $383,970 of inventory
for the 428 SKUs without sales in
the past year. Data does not factor
consumption for RM.
Sales 1,563,196$ 2,796,838$ 3,441,654$ -$ 7,801,688$ Sales
% of Total Sales 17% 30% 37% 0% 84% 84%
COGS (1,099,897)$ (1,908,918)$ (2,384,668)$ -$ (5,393,483)$ Trans %
Transactions 1,774 2,914 3,290 - 7,978 74%
$ / Transaction 881$ 960$ 1,046$ #DIV/0! 978$ SKU %
SKUs 44 134 142 - 320 42%
$ / SKU 35,527$ 20,872$ 24,237$ #DIV/0! 24,380$ % TOT GM
Gross Margin 463,299$ 887,920$ 1,056,986$ -$ 2,408,205$ 83%
GM% 30% 32% 31% #DIV/0! 31% AVG INV / SKU
GM / SKU 10,530$ 6,626$ 7,444$ #DIV/0! 7,526$
Inventory $ 346,632$ 926,012$ 731,286$ -$ 2,003,930$ TURNS
% of Sales 3% 5% 3% 1.79% 13% 13%
COGS (189,140)$ (293,575)$ (211,885)$ (116,730)$ (811,330)$ % TRANS
Transactions 336 1,098 576 60 2,070 19%
SKUs 44 108 68 20 240 31%
$ / SKU 6,156$ 4,008$ 4,786$ 8,340$ 4,983$ % TOT GM
Gross Margin 81,708$ 139,292$ 113,578$ 50,064$ 384,642$ 13%
GM% 30% 32% 35% 30% 32% AVG INV / SKU
GM / Transaction 243$ 127$ 197$ 834$ 186$ $2,001
GM / SKU 1,857$ 1,290$ 1,670$ 2,503$ 1,603$
Turn and Earn (GM) 34 49 76 169 54
Inventory $ 169,682$ 192,893$ 97,031$ 20,746$ 480,351$ TURNS
% of Sales 1% 0% 1% 1.56% 3% 3%
COGS (52,412)$ (27,694)$ (26,089)$ (101,274)$ (207,469)$ % TRANS
Transactions 230 150 94 208 682 6%
SKUs 38 40 18 114 210 27%
$ / SKU 2,018$ 1,017$ 2,631$ 1,276$ 1,477$ % TOT GM
Gross Margin 24,261$ 12,969$ 21,262$ 44,183$ 102,676$ 4%
GM% 32% 32% 45% 30% 33% AVG INV / SKU
GM / Transaction 105$ 86$ 226$ 212$ 151$ $1,337
GM / SKU 638$ 324$ 1,181$ 388$ 489$
Turn and Earn (GM) 90 45 27 15 24
Inventory $ 18,432$ 19,768$ 43,355$ 199,216$ 280,770$ TURNS
Total Sales 1,910,718$ 3,270,368$ 3,814,469$ 312,251$ 9,307,806$
% of Sales 21% 35% 41% 3% 100%
COGS (1,341,450)$ (2,230,187)$ (2,622,642)$ (218,004)$ (6,412,283)$
Transactions 2,340 4,162 3,960 268 10,730
$ / Transaction 817$ 786$ 963$ 1,165$ 867$
SKUs 126 282 228 134 770
$ / SKU 15,164$ 11,597$ 16,730$ 2,330$ 12,088$
Gross Margin 569,268$ 1,040,181$ 1,191,827$ 94,247$ 2,895,523$
GM% 30% 32% 31% 30% 31%
GM / Transaction 243$ 250$ 301$ 352$ 270$
GM / SKU 4,518$ 3,689$ 5,227$ 703$ 3,760$
Inventory $ 534,746$ 1,138,672$ 871,671$ 219,963$ 2,765,051$ 3,149,021$
383,970$ 428
VOLATILITY
A (Top 80% of
COGS)
B (Next 15% of
COGS)
C (Final 5% of
COGS)

Division B 9-Box: Volume & Customer
Notes:
All ABC Volume SKUs
have low T/E ratios -
see below for inventory
opportunities.
64% of Total Sales are
High Volume / Large
Customers (110 Large
Cust) - AA Segment.
Theses same (A) Large
Customers also
comprise 10% of the B
Volume and 2% of
C Volume SKUs.
76% of all sales come
from 220 customers
Like in the V&C 9-Box,
all segments have too
much inventory. See
V&V 9-Box for
possible scenarios to
improve.
Total Sales 5,971,179$ 1,408,003$ 422,507$ -$ 7,801,688$
% of Sales 64% 15% 4.5% 0.00% 84%
COGS (4,149,410)$ (965,550)$ (278,523)$ -$ (5,393,483)$
# of Customers 220 194 326 - 740
Transactions 5,232 1,700 1,046 - 7,978
Sales / Transaction 1,141$ 828$ 404$ #DIV/0! 978$
Gross Margin 1,821,769$ 442,452$ 143,984$ -$ 2,408,205$
GM% 31% 31% 34% #DIV/0! 31%
Total Sales 950,221$ 173,881$ 71,869$ -$ 1,195,972$
% of Sales 10% 2% 1% 0.00% 13%
COGS (643,089)$ (120,967)$ (47,275)$ -$ (811,330)$
# of Customers 220 194 326 - 740
Transactions 1,274 424 372 0 2,070
Gross Margin 307,133$ 52,914$ 24,595$ -$ 384,642$
GM% 32% 30% 34% #DIV/0! 32%
Total Sales 171,333$ 65,877$ 72,935$ -$ 310,145$
% of Sales 2% 1% 1% 0.00% 3%
COGS (112,804)$ (45,974)$ (48,691)$ -$ (207,469)$
# of Customers 220 194 326 - 740
Transactions 350 148 184 - 682
Gross Margin 58,530$ 19,902$ 24,244$ -$ 102,676$
GM% 34% 30% 33% #DIV/0! 33%
Total Sales 7,092,733$ 1,647,761$ 567,312$ -$ 9,307,806$
% of Sales 76% 18% 6% 0% 100%
COGS (4,905,302)$ (1,132,492)$ (374,489)$ -$ (6,412,283)$
# of Customers 220 194 326 - 740
Transactions 6,856 2,272 1,602 - 10,730
Sales / Transaction 1,035$ 725$ 354$ #DIV/0! 867$
Gross Margin 2,187,431$ 515,269$ 192,823$ -$ 2,895,523$
GM% 31% 31% 34% #DIV/0! 31%
Inventory $ $2,765,051 3,149,021$
383,970$ 428
CUSTOMER
A (Top 80% of
COGS)
$2,003,930
B (Next 15% of
COGS)
$480,351
C (Final 5% of
COGS)
$280,770
$2,765,051

25
Division B 9-Box: Inventory Target Calculation Summary
A B C
A 74% 75% 46%
B 82% 69% 46%
C 7% 46% 70%
REDUCING CURRENT INVENTORY BY:
A B C
A 26% 25% 54%
B 18% 31% 54%
C 93% 54% 30%
RESULTING INVENTORY
Current
A 115 177 112 A 346,632$ 926,012$ 731,286$
B 327 240 167 B 169,682$ 192,893$ 97,031$
C 128 261 607 C 18,432$ 19,768$ 43,355$
2,545,088$
A 30 45 60 A 90,403$ 235,346$ 392,000$
B 60 75 90 B 31,092$ 60,324$ 52,246$
C 120 140 180 C 17,231$ 10,622$ 12,866$
902,129$
Days
Reduced
A B C
Resulting
Inv
Reduction
A B C
A 85 132 52 A 256,230$ 690,665$ 339,285$
B 267 165 77 B 138,590$ 132,569$ 44,785$
C 8 121 427 C 1,200$ 9,145$ 30,489$
1,642,959$
Notes:
Current State
Proposed State
Net Change

26
Division B 9-Box: Target Pricing Calculation Summary
Current
Margin
A B C
Current
Sales
A B C
A 30% 32% 31% A 1,563,196$ 2,796,838$ 3,441,654$
B 30% 32% 35% B 270,848$ 432,866$ 325,463$
C 32% 32% 45% C 76,674$ 40,663$ 47,351$
8,995,554$
Targeted
Margin A B C
Resultant
Sales A B C
A 30% 33% 35% A 1,563,196$ 2,831,875$ 3,589,247$
B 31% 34% 36% B 272,123$ 440,749$ 329,051$
C 32% 36% 45% C 76,674$ 42,333$ 47,351$
9,192,598$
Increased
Margin Pts
A B C
Increased
Sales
A B C
A 0% 1% 4% A -$ 35,036$ 147,593$
B 0% 2% 1% B 1,274$ 7,883$ 3,588$
C 0% 4% 0% C -$ 1,669$ -$ Increase In Sales
197,044$ 2%
Notes:
Current State
Proposed State
Net Change

Division C 9-Box: Volume & Volatility
Notes:
72% of Total Sales and 70% of
Total GM come from 296 A
Volume SKUs.
The AC Segment (High Volume /
High Volatility) represents 29% of
all sales from just 128 AC SKUs.
A Volume SKUs receive 2.6x more
sales versus B SKUs and 10x
more sales than C SKUs.
7 of 9 segments have
unacceptable T/Es and similar to
Division D's, Division C's margins
appear to be good, but rather
chaotic.
REF “XX Pricing Plan" tab for
opportunity to improve margin.
Most segments (exceptions AC &
CC) have large amounts of
inventory days on hand.
$477,098 (43% of total).
include the $81,050 of inventory
for the 104 SKUs without sales in
the past year nor the $60,036 in D-
Volatility inventory. Data does not
factor consumption for RM.
BD and CD Segments represent
7% of sales and 168 SKUs. These
SKUs with less than 5 weeks of
COGs during the year coupled with
C Volatility SKUs represent 40% of
sales - from high volatility or rarely
ordered SKUs. Planning and
inventory management of these
SKUs is very important and should
be further explored.
Sales 1,043,977$ 1,808,738$ 1,893,740$ -$ 4,746,455$ Sales
% of Total Sales 16% 27% 29% 0% 72% 72%
COGS (734,922)$ (1,311,753)$ (1,397,926)$ -$ (3,444,600)$ Trans %
Transactions 1,698 2,738 2,346 - 6,782 68%
SKUs 48 120 128 - 296 37%
$ / SKU 21,750$ 15,073$ 14,795$ #DIV/0! 16,035$ % TOT GM
Gross Margin 309,056$ 496,985$ 495,814$ -$ 1,301,855$ 70%
GM% 30% 27% 26% #DIV/0! 27% AVG INV / SKU
GM / SKU 6,439$ 4,142$ 3,874$ #DIV/0! 4,398$
Inventory $ 195,662$ 347,537$ 194,498$ -$ 737,698$ TURNS
% of Sales 8% 8% 4% 3% 22% 22%
COGS (370,383)$ (328,708)$ (204,188)$ (125,863)$ (1,029,142)$ % TRANS
Transactions 630 1,164 490 52 2,336 24%
SKUs 54 98 72 18 242 30%
$ / SKU 9,425$ 5,143$ 3,914$ 9,623$ 6,066$ % TOT GM
Gross Margin 138,571$ 175,289$ 77,598$ 47,358$ 438,816$ 24%
GM% 27% 35% 28% 27% 30% AVG INV / SKU
GM / Transaction 220$ 151$ 158$ 911$ 188$ $1,391
GM / SKU 2,566$ 1,789$ 1,078$ 2,631$ 1,813$
Turn and Earn (GM) 76 133 56 190 91
Inventory $ 132,570$ 85,793$ 100,182$ 18,080$ 336,626$ TURNS
% of Sales 1% 1% 0% 4% 6% 6%
COGS (61,237)$ (24,265)$ (9,341)$ (193,912)$ (288,756)$ % TRANS
Transactions 294 152 94 264 804 8%
$ / Transaction 306$ 240.42$ 144.12$ 1,038$ 515.27$ % SKUs
SKUs 46 30 32 150 258 32%
$ / SKU 1,958$ 1,218$ 423$ 1,828$ 1,606$ % TOT GM
Gross Margin 28,810$ 12,280$ 4,206$ 80,229$ 125,524$ 7%
GM% 32% 34% 31% 29% 30% AVG INV / SKU
GM / Transaction 98$ 81$ 45$ 304$ 156$ $374
GM / SKU 626$ 409$ 131$ 535$ 487$
Turn and Earn (GM) 65 49 75 123 91
Inventory $ 29,960$ 16,575$ 3,880$ 45,955$ 96,371$ TURNS
Total Sales 1,642,978$ 2,349,280$ 2,189,073$ 447,362$ 6,628,693$
% of Sales 25% 35% 33% 7% 100%
COGS (1,166,542)$ (1,664,726)$ (1,611,456)$ (319,775)$ (4,762,498)$
Transactions 2,622 4,054 2,930 316 9,922
$ / Transaction 627$ 579$ 747$ 1,416$ 668$
SKUs 148 248 232 168 796
$ / SKU 11,101$ 9,473$ 9,436$ 2,663$ 8,328$
Gross Margin 476,436$ 684,554$ 577,617$ 127,587$ 1,866,195$
GM% 29% 29% 26% 29% 28%
GM / Transaction 182$ 169$ 197$ 404$ 188$
GM / SKU 3,219$ 2,760$ 2,490$ 759$ 2,344$
Inventory $ 358,193$ 449,905$ 298,561$ 64,036$ 1,170,694$ $1,251,744
81,050$ 208
VOLATILITY
A (Top 80% of
COGS)
B (Next 15% of
COGS)
C (Final 5% of
COGS)

Division C 9-Box: Volume & Customer
Notes:
Margins look good for all
Segments with some
slight opportunity for CB
and CC Segments that
should be further
explored.
REF “XX Pricing Plan"
for one option to explore
in order to increase
margin.
B and C Volume SKUs
have poor T/E ratios -
See V&V 9-Box NOTES
for possible
scenarios to improve
inventory levels.
62% of Total Sales come
from the 122 Large
Customers (A) -
definitely an opportunity
to create unique program
offerings to these
customers.
Total Sales 2,869,872$ 1,415,116$ 461,468$ 4,746,455$
% of Sales 43% 21% 7% 72%
COGS (2,110,088)$ (1,010,465)$ (324,047)$ (3,444,600)$
# of Customers 122 170 278 570
Transactions 3,420 2,076 1,286 6,782
Gross Margin 759,784$ 404,650$ 137,421$ 1,301,855$
GM% 26% 29% 30% 27%
GM / Transaction 222$ 195$ 107$ 192$
Total Sales 1,079,210$ 306,728$ 82,020$ 1,467,958$
% of Sales 16% 5% 1% 22%
COGS (760,613)$ (211,683)$ (56,846)$ (1,029,142)$
# of Customers 122 170 278 570
Transactions 1,366 606 364 2,336
Gross Margin 318,597$ 95,044$ 25,174$ 438,816$
GM% 30% 31% 31% 30%
GM / Transaction 233$ 157$ 69$ 188$
Total Sales 178,813$ 204,277$ 31,190$ 414,280$
% of Sales 3% 3% 0% 6%
COGS (125,242)$ (142,376)$ (21,137)$ (288,756)$
# of Customers 122 170 278 570
Transactions 430 250 124 804
Gross Margin 53,571$ 61,901$ 10,053$ 125,524$
GM% 30% 30% 32% 30%
GM / Transaction 125$ 248$ 81$ 156$
Total Sales 4,127,895$ 1,926,120$ 574,678$ 6,628,693$
% of Sales 62% 29% 9% 100%
COGS (2,995,943)$ (1,364,525)$ (402,030)$ (4,762,498)$
# of Customers 122 170 278 570
Sales / Customer 33,835$ 11,330$ 2,067$ 11,629$
Transactions 5,216 2,932 1,774 9,922
Gross Margin 1,131,952$ 561,596$ 172,648$ 1,866,195$
GM% 27% 29% 30% 28%
GM / Transaction 217$ 192$ 97$ 188$
Inventory $ $1,170,694 $1,251,744
81,050$ 208
CUSTOMER
A (Top 80% of
COGS)
$737,698
B (Next 15% of
COGS)
$336,626
C (Final 5% of
COGS)
$96,371
$1,170,694

29
Division C 9-Box: Inventory Target Calculation Summary
Current
A 97 97 51 A 195,662$ 347,537$ 194,498$
B 131 95 179 B 132,570$ 85,793$ 100,182$
C 249 249 152 C 29,960$ 16,575$ 3,880$
1,106,658$
A 30 45 51 A 60,405$ 161,723$ 195,327$
B 60 75 90 B 60,885$ 67,543$ 50,348$
C 120 140 152 C 14,420$ 9,307$ 3,890$
623,847$
Days
Reduced
A B C
Resulting
Inv
Reduction
A B C
A 67 52 (0) A 135,258$ 185,815$ (828)$
B 71 20 89 B 71,685$ 18,250$ 49,834$
C 129 109 (0) C 15,540$ 7,268$ (10)$
482,812$
Notes:
Current State
Proposed State
Net Change

30
Division C 9-Box: Target Pricing Calculation Summary
Current
Margin
A B C
Current
Sales
A B C
A 30% 27% 26% A 1,043,977$ 1,808,738$ 1,893,740$
B 27% 35% 28% B 508,954$ 503,997$ 281,786$
C 32% 34% 31% C 90,047$ 36,544$ 13,547$
6,181,331$
Targeted
Margin A B C
Resultant
Sales A B C
A 30% 31% 32% A 1,043,977$ 1,865,293$ 1,996,417$
B 31% 35% 36% B 526,142$ 503,997$ 305,011$
C 37% 38% 39% C 94,555$ 38,152$ 14,625$
6,388,169$
Increased
Margin Pts
A B C
Increased
Sales
A B C
A 0% 3% 5% A -$ 56,555$ 102,678$
B 3% 0% 8% B 17,188$ -$ 23,225$
C 5% 4% 8% C 4,508$ 1,607$ 1,078$ Increase In Sales
206,838$ 3%
Notes:
Current State
Proposed State
Net Change

Notes:
79% of Total Sales and 77% of Total
GM come from 370 A Volume SKUs.
The AA Segment (High Volume / Low
Volatility) represents 30% of all sales
from just 66 AA SKUs.
A Volume SKUs receive 4.4x more
sales versus B SKUs and 13.7x more
sales than C SKUs.
8 of 9 segments have poor T/Es and
unlike many of the other DC's, Division
D's Margins are not as high and they
appear to be rather chaotic in nature.
REF "MD Pricing Plan" tab for
opportunity to improve margin.
All segments have large amounts of
inventory days on hand.
See "INV Plan" tab for an opportunity to
reduce inventory by $1,004,588.
This opportunity DOES NOT include the
$792,090 of inventory for the 478 SKUs
without sales in the past year. Data
does not factor consumption for RM.
BD and CD Segments represent 6% of
sales and 266 SKUs. These SKUs with
less than 5 weeks of COGs during the
year coupled with C Volatility SKUs
represent 37% of sales - from high
volatility or rarely ordered SKUs.
Planning and inventory
management of these SKUs is very
important and should be further
explored.
Division D 9-Box: Volume & Volatility
Sales 2,180,710$ 1,705,675$ 1,884,361$ -$ 5,770,746$ Sales
% of Total Sales 30% 23% 26% 0% 79% 79%
COGS ######### ######### ######### -$ (4,108,697)$ Trans %
Transactions 2,536 2,196 2,936 - 7,668 64%
SKUs 66 162 142 - 370 33%
$ / SKU 33,041$ 10,529$ 13,270$ #DIV/0! 15,597$ % TOT GM
Gross Margin 643,714$ 473,255$ 545,080$ -$ 1,662,049$ 77%
GM% 30% 28% 29% #DIV/0! 29% AVG INV / SKU
GM / SKU 9,753$ 2,921$ 3,839$ #DIV/0! 4,492$
Inventory $ 312,730$ 382,598$ 548,045$ -$ 1,243,373$ TURNS
% of Sales 4% 4% 4% 2% 15% 15%
COGS (224,056)$ (174,181)$ (229,638)$ (102,518)$ (730,393)$ % TRANS
Transactions 806 1,106 1,026 50 2,988 25%
SKUs 60 112 104 26 302 27%
$ / SKU 5,268$ 2,614$ 3,120$ 5,375$ 3,553$ % TOT GM
Gross Margin 91,997$ 118,544$ 94,848$ 37,240$ 342,629$ 16%
GM% 29% 40% 29% 27% 32% AVG INV / SKU
GM / Transaction 114$ 107$ 92$ 745$ 115$ $1,135
GM / SKU 1,533$ 1,058$ 912$ 1,432$ 1,135$
Turn and Earn (GM) 72 81 51 84 68
Inventory $ 90,940$ 87,027$ 132,325$ 32,415$ 342,708$ TURNS
% of Sales 1% 1% 1% 5% 7% 7%
COGS (45,028)$ (34,390)$ (31,391)$ (234,858)$ (345,667)$ % TRANS
Transactions 232 398 176 520 1,326 11%
SKUs 46 58 52 280 436 39%
$ / SKU 1,345$ 927$ 862$ 1,202$ 1,140$ % TOT GM
Gross Margin 16,849$ 19,395$ 13,437$ 101,676$ 151,358$ 7%
GM% 27% 36% 30% 30% 30% AVG INV / SKU
GM / Transaction 73$ 49$ 76$ 196$ 114$ $587
GM / SKU 366$ 334$ 258$ 363$ 347$
Turn and Earn (GM) 17 81 28 53 41
Inventory $ 73,280$ 15,309$ 33,481$ 133,930$ 255,999$ TURNS
Total Sales 2,558,641$ 2,052,185$ 2,253,674$ 476,293$ 7,340,793$
% of Sales 35% 28% 31% 6% 100%
COGS ######### ######### ######### (337,376)$ (5,184,757)$
Transactions 3,574 3,700 4,138 570 11,982
$ / Transaction 716$ 555$ 545$ 836$ 613$
SKUs 172 332 298 306 1,108
$ / SKU 14,876$ 6,181$ 7,563$ 1,557$ 6,625$
Gross Margin 752,560$ 611,194$ 653,365$ 138,917$ 2,156,036$
GM% 29% 30% 29% 29% 29%
GM / Transaction 211$ 165$ 158$ 244$ 180$
GM / SKU 4,375$ 1,841$ 2,193$ 454$ 1,946$
Inventory $ 476,949$ 484,934$ 713,850$ 166,345$ 1,842,080$ $2,634,169
792,089$ 478
VOLATILITY
A (Top 80% of
COGS)
B (Next 15% of
COGS)
C (Final 5% of
COGS)

Division D 9-Box: Volume & Customer
Notes:
Margins look good for A and B
Volume Segments. C volume
margins should be further
explored as there appears to be
some opportunity to improve
margins on lower volume SKUs
and smaller customers.
All segments have too much
inventory and this is reflected in
poor T/E ratios.
See V&V 9-Box for possible
scenarios to improve.
70% of Total Sales come from
the 586 Large Customers (A) -
definitely an opportunity to
create unique program offerings
to these customers.
Sales per transaction from
Large customers are 1.6x
higher vs MED (B) Customers
and 3x more sales per
transaction versus Small (C)
Customers
Total Sales 4,214,600$ 1,098,569$ 457,577$ 5,770,746$
% of Sales 57% 15% 6% 79% v 80%
COGS (3,071,367)$ (737,808)$ (299,523)$ (4,108,697)$ 79%
# of Customers 284 252 346 882
Transactions 4,282 2,010 1,376 7,668
Gross Margin 1,143,233$ 360,762$ 158,054$ 1,662,049$
GM% 27% 33% 35% 29%
GM / Transaction 267$ 179$ 115$ 217$
Total Sales 688,278$ 288,142$ 96,603$ 1,073,023$
% of Sales 9% 4% 1% 15%
COGS (473,802)$ (195,171)$ (61,420)$ (730,393)$
# of Customers 284 252 346 882
Transactions 1,548 816 624 2,988
Gross Margin 214,476$ 92,970$ 35,183$ 342,629$
GM% 31% 32% 36% 32%
GM / Transaction 139$ 114$ 56$ 115$
Total Sales 256,888$ 208,266$ 31,871$ 497,025$
% of Sales 3% 3% 0% 7%
COGS (181,329)$ (142,671)$ (21,667)$ (345,667)$
# of Customers 284 252 346 882
Transactions 720 414 192 1,326
Gross Margin 75,559$ 65,595$ 10,204$ 151,358$
GM% 29% 31% 32% 30%
GM / Transaction 105$ 158$ 53$ 114$
Total Sales 5,159,766$ 1,594,977$ 586,051$ 7,340,793$
% of Sales 70% 22% 8% 100%
COGS (3,726,497)$ (1,075,650)$ (382,610)$ (5,184,757)$
# of Customers 284 252 346 882
Transactions 6,550 3,240 2,192 11,982
Gross Margin 1,433,268$ 519,327$ 203,440$ 2,156,036$
GM% 28% 33% 35% 29%
GM / Transaction 219$ 160$ 93$ 180$
Inventory $ $1,842,080 2,634,169$
792,089$ 478
CUSTOMER
A (Top 80% of
COGS)
$1,243,373
B (Next 15% of
COGS)
$342,708
C (Final 5% of
COGS)
$255,999
$1,842,080

33
Division D 9-Box: Inventory Target Calculation Summary
Current
A 74 113 149 A 312,730$ 382,598$ 548,045$
B 148 182 210 B 90,940$ 87,027$ 132,325$
C 594 162 389 C 73,280$ 15,309$ 33,481$
1,675,734$
A 30 45 60 A 126,328$ 151,942$ 220,156$
B 60 75 90 B 36,831$ 35,791$ 56,623$
C 120 140 180 C 14,804$ 13,191$ 15,480$
671,146$
Days
Reduced
A B C
Resulting
Inv
Reduction
A B C
A 44 68 89 A 186,401$ 230,656$ 327,889$
B 88 107 120 B 54,109$ 51,237$ 75,702$
C 474 22 209 C 58,476$ 2,118$ 18,000$
1,004,588$
Notes:
Current State
Proposed State
Net Change

34
Division D 9-Box: Target Pricing Calculation Summary
Current
Margin
A B C
Current
Sales
A B C
A 30% 28% 29% A 2,180,710$ 1,705,675$ 1,884,361$
B 29% 40% 29% B 316,053$ 292,725$ 324,486$
C 27% 36% 30% C 61,877$ 53,785$ 44,828$
6,864,500$
Targeted
Margin A B C
Resultant
Sales A B C
A 30% 31% 32% A 2,180,710$ 1,752,967$ 1,933,204$
B 31% 40% 41% B 320,511$ 292,725$ 364,289$
C 41% 42% 43% C 70,398$ 56,980$ 50,666$
7,022,450$
Increased
Margin Pts
A B C
Increased
Sales
A B C
A 0% 3% 3% A -$ 47,292$ 48,843$
B 1% 0% 12% B 4,458$ -$ 39,803$
C 14% 6% 13% C 8,521$ 3,194$ 5,839$ Increase In Sales
157,950$ 2%
Notes:
Current State
Proposed State
Net Change

Division E 9-Box: Volume & Volatility
Notes:
50% of sales come from one
segment: AB, high volume
and volatility. As with the
overall 9-Box - careful planning
and inventory management is
needed to avoid out-of-stock
(oos) events.
A Volume SKUs receive 5x
more sales versus B SKUs
and 16x more sales than C
SKUs.
5 of 9 segments have poor T/E
Ratios
Margins look good: improving
with lower volume SKUs and
increasing Volatility.
Inventory levels are high for
both B and C Volume SKUs.
opportunity to reduce inventory
by $690,342.
inventory for the 986 SKUs
without sales in the past year.
Data does not factor
consumption for RM.
Sales 1,259,832$ 1,884,916$ 5,197,023$ 52,884$ 8,394,655$ Sales
% of Total Sales 12% 18% 50% 1% 80% 80%
COGS (847,979)$ (1,337,412)$ (3,456,595)$ (52,509)$ (5,694,495)$ Trans %
Transactions 942 2,264 4,180 26 7,412 69%
$ / Transaction 1,337$ 833$ 1,243$ 2,034$ 1,133$ SKU %
SKUs 64 132 138 2 336 34%
$ / SKU 19,685$ 14,280$ 37,660$ 26,442$ 24,984$ % TOT GM
Gross Margin 411,853$ 547,504$ 1,740,428$ 375$ 2,700,160$ 81%
GM% 33% 29% 33% 1% 32% AVG INV / SKU
GM / Transaction 437$ 242$ 416$ 14$ 364$ $3,175
GM / SKU 6,435$ 4,148$ 12,612$ 187$ 8,036$
Inventory $ 227,575$ 370,805$ 468,481$ -$ 1,066,860$ TURNS
% of Sales 4% 3% 5% 2.29% 15% 15%
COGS (251,422)$ (248,021)$ (401,736)$ (178,089)$ (1,079,267)$ % TRANS
Transactions 424 800 882 86 2,192 21%
SKUs 48 114 120 28 310 32%
$ / SKU 7,937$ 3,213$ 4,550$ 8,567$ 4,946$ % TOT GM
Gross Margin 129,563$ 118,298$ 144,321$ 61,792$ 453,973$ 14%
GM% 34% 32% 26% 26% 30% AVG INV / SKU
GM / Transaction 306$ 148$ 164$ 719$ 207$ $1,604
GM / SKU 2,699$ 1,038$ 1,203$ 2,207$ 1,464$
Turn and Earn (GM) 105 54 42 256 64
Inventory $ 81,464$ 147,847$ 250,174$ 17,901$ 497,386$ TURNS
% of Sales 0% 1% 1% 3.15% 5% 5%
COGS (23,612)$ (42,940)$ (69,837)$ (230,694)$ (367,084)$ % TRANS
Transactions 124 242 236 464 1,066 10%
SKUs 26 52 42 218 338 34%
$ / SKU 1,433$ 1,286$ 2,495$ 1,512$ 1,593$ % TOT GM
Gross Margin 13,638$ 23,945$ 34,965$ 98,829$ 171,377$ 5%
GM% 37% 36% 33% 30% 32% AVG INV / SKU
GM / Transaction 110$ 99$ 148$ 213$ 161$ $1,061
GM / SKU 525$ 460$ 832$ 453$ 507$
Turn and Earn (GM) 41 33 18 43 33
Inventory $ 20,881$ 46,059$ 129,871$ 161,781$ 358,593$ TURNS
Total Sales 1,678,067$ 2,318,120$ 5,847,882$ 622,288$ 10,466,356$
% of Sales 16% 22% 56% 6% 100%
COGS (1,123,013)$ (1,628,373)$ (3,928,168)$ (461,292)$ (7,140,846)$
Transactions 1,490 3,306 5,298 576 10,670
$ / Transaction 1,126$ 701$ 1,104$ 1,080$ 981$
SKUs 138 298 300 248 984
$ / SKU 12,160$ 7,779$ 19,493$ 2,509$ 10,637$
Gross Margin 555,054$ 689,747$ 1,919,714$ 160,996$ 3,325,510$
GM% 33% 30% 33% 26% 32%
GM / Transaction 373$ 209$ 362$ 280$ 312$
GM / SKU 4,022$ 2,315$ 6,399$ 649$ 3,380$
Inventory $ 329,921$ 564,711$ 848,526$ 179,682$ 1,922,839$ $2,137,976
215,137$ 586
VOLATILITY
A (Top 80% of COGS)
B (Next 15% of COGS)
C (Final 5% of COGS)

Division E 9-Box: Volume & Customer
Notes:
Margins are a concern with Small
Customers (representing 39% of
TOT CUST):
The company is experiencing
significantly lower margins on A
and C Volume items with small
customers relative to their
medium and large customers.
Along these same lines:
64% of Total Sales are High
Volume / Large Customers (150)
- AA Segment. These same (A)
Large Customers also comprise
11% of the B Volume and 3% of
C Volume SKUs.
Bottom line - 70% of customers
comprise 20% of sales and the
company is receiving lower
margins from these customers.
B and C Volume SKUs have too
much inventory. See V&V 9-Box
for possible scenarios to
improve.
A Volume segments have an
acceptable T/E Ratio while the B
and C volume segments have
poor T/E ratios - again, most
likely attributable to high
inventory levels.
Total Sales 6,740,527$ 1,272,526$ 381,603$ 8,394,655$
% of Sales 64% 12% 3.6% 80%
COGS (4,553,430)$ (844,364)$ (296,701)$ (5,694,495)$
# of Customers 300 248 352 900
Transactions 4,876 1,490 1,046 7,412
Gross Margin 2,187,097$ 428,162$ 84,901$ 2,700,160$
GM% 32% 34% 22% 32%
GM / Transaction 449$ 287$ 81$ 364$
Total Sales 1,125,474$ 308,760$ 99,006$ 1,533,240$
% of Sales 11% 3% 1% 15%
COGS (804,058)$ (215,839)$ (59,370)$ (1,079,267)$
# of Customers 300 248 352 900
Transactions 1,294 492 406 2,192
Gross Margin 321,416$ 92,921$ 39,636$ 453,973$
GM% 29% 30% 40% 30%
GM / Transaction 248$ 189$ 98$ 207$
Total Sales 360,041$ 143,264$ 35,156$ 538,461$
% of Sales 3% 1% 0% 5%
COGS (247,856)$ (94,377)$ (24,851)$ (367,084)$
# of Customers 300 248 352 900
Transactions 610 304 152 1,066
Gross Margin 112,185$ 48,887$ 10,305$ 171,377$
GM% 31% 34% 29% 32%
GM / Transaction 184$ 161$ 68$ 161$
Total Sales 8,226,041$ 1,724,550$ 515,765$ 10,466,356$
% of Sales 79% 16% 5% 100%
COGS (5,605,343)$ (1,154,580)$ (380,923)$ (7,140,846)$
# of Customers 300 248 352 900
Transactions 6,780 2,286 1,604 10,670
Sales / Transaction 1,213$ 754$ 322$ 981$
Gross Margin 2,620,699$ 569,970$ 134,842$ 3,325,510$
GM% 32% 33% 26% 32%
GM / Transaction 387$ 249$ 84$ 312$
Inventory $ $1,922,839 2,137,976$
215,137$ 586
CUSTOMER
A (Top 80% of
COGS)
$1,066,860
B (Next 15% of
COGS)
$497,386
C (Final 5% of
COGS)
$358,593
$1,922,839

37
Division E 9-Box: Inventory Target Calculation Summary
Current
A 98 101 49 A 227,575$ 370,805$ 468,481$
B 118 218 227 B 81,464$ 147,847$ 250,174$
C 323 392 679 C 20,881$ 46,059$ 129,871$
1,743,157$
A 30 45 60 A 69,697$ 164,886$ 568,207$
B 60 75 90 B 41,330$ 50,963$ 99,058$
C 120 140 180 C 7,763$ 16,470$ 34,440$
1,052,815$
Days
Reduced
A B C
Resulting
Inv
Reduction
A B C
A 68 56 (11) A 157,878$ 205,918$ (99,727)$
B 58 143 137 B 40,135$ 96,884$ 151,115$
C 203 252 499 C 13,119$ 29,589$ 95,431$
690,342$
Notes:
Current State
Proposed State
Net Change

38
Division E 9-Box: Target Pricing Calculation Summary
Current
Margin
A B C
Current
Sales
A B C
A 33% 29% 33% A 1,259,832$ 1,884,916$ 5,197,023$
B 34% 32% 26% B 380,984$ 366,318$ 546,057$
C 37% 36% 30% C 37,250$ 66,886$ 104,802$
9,844,069$
Targeted
Margin A B C
Resultant
Sales A B C
A 33% 34% 35% A 1,259,832$ 1,972,460$ 5,259,498$
B 34% 35% 36% B 379,779$ 376,232$ 601,976$
C 37% 38% 39% C 37,250$ 68,357$ 114,243$
10,069,629$
Increased
Margin Pts
A B C
Increased
Sales
A B C
A 0% 5% 1% A -$ 87,545$ 62,475$
B 0% 3% 10% B (1,205)$ 9,914$ 55,919$
C 0% 2% 9% C -$ 1,471$ 9,441$ Increase In Sales
225,561$ 2%
Notes:
Current State
Proposed State
Net Change

All Other DCs 9-Box: Volume & Volatility
(includes Vendor Direct Ship, Location F,
Consignment, Location G and Location H)
Notes:
It should be noted that SHIP-
DIRECT from Vendors makes up:
96% of TOTAL Sales and COGS;
93% of Gross Margin; and 72% of
Transactions and Inventory.
Given the majority of this 9-Box is
related to Direct Ships from
vendors, all inventory assessment,
T/E and Days of Inventory are
somewhat not applicable.
89% of Total Sales are from A
Volume SKUs.
The AC (High Volume / High
Volatility) and AD (High Volume /
<5 Wks of Orders) segments
represents 60% of Total Sales - a
thorough review of the planning
and inventory management of the
direct ship business is highly
recommended.
Margins for this "site" are the
lowest in the company. It is highly
recommended that further analysis
been conducted regarding the
Direct Ship Business.
Although inventory from sales was
not assessed, it should be noted
that there is a significant amount of
inventory ($641,058) for 358 SKUs
not having any sales in the past
year. NOTE: Data does not factor
consumption for raw material
SKUs.
Sales 2,729,285$ 1,715,689$ 8,758,979$ 697,316$ 13,901,269$ Sales
% of Total Sales 17% 11% 56% 4% 89% 89%
COGS (2,379,206)$ (1,194,010)$ (6,976,035)$ (532,895)$ (11,082,147)$ Trans %
Transactions 642 694 2,262 42 3,640 80%
$ / Transaction 4,251$ 2,472$ 3,872$ 16,603$ 3,819$ SKU %
SKUs 52 100 120 12 284 38%
$ / SKU 52,486$ 17,157$ 72,991$ 58,110$ 48,948$ % TOT GM
Gross Margin 350,079$ 521,678$ 1,782,943$ 164,421$ 2,819,122$ 87%
GM% 13% 30% 20% 24% 20% AVG INV / SKU
GM / Transaction 545$ 752$ 788$ 3,915$ 774$ $526
GM / SKU 6,732$ 5,217$ 14,858$ 13,702$ 9,926$
Turn and Earn (GM) 836 927 1,927 #DIV/0! 1,505
Inventory $ 36,514$ 39,152$ 73,695$ -$ 149,361$ TURNS
% of Sales 1% 1% 2% 5% 9% 9%
COGS (142,718)$ (125,090)$ (229,769)$ (606,362)$ (1,103,939)$ % TRANS
Transactions 90 120 202 118 530 12%
$ / Transaction 1,661$ 1,573$ 1,512$ 7,045$ 2,783$ % SKUs
SKUs 32 48 58 62 200 27%
$ / SKU 4,672$ 3,933$ 5,267$ 13,408$ 7,375$ % TOT GM
Gross Margin 6,772$ 63,700$ 75,746$ 224,929$ 371,146$ 11%
GM% 5% 34% 25% 27% 25% AVG INV / SKU
GM / Transaction 75$ 531$ 375$ 1,906$ 700$ $179
GM / SKU 212$ 1,327$ 1,306$ 3,628$ 1,856$
Turn and Earn (GM) 38 422 1,185 4,013 776
Inventory $ 16,917$ 9,999$ 4,809$ 4,089$ 35,814$ TURNS
Total Sales -$ 10,271$ 21,363$ 275,723$ 307,357$ Sales %
% of Sales 0% 0% 0% 2% 2% 2%
COGS -$ (7,641)$ (14,324)$ (229,967)$ (251,931)$ % TRANS
Transactions - 58 32 304 394 9%
$ / Transaction #DIV/0! 177.09$ 667.60$ 906.98$ 780.09$ % SKUs
SKUs - 18 22 218 258 35%
$ / SKU #DIV/0! 571$ 971$ 1,265$ 1,191$ % TOT GM
Gross Margin -$ 2,630$ 7,039$ 45,756$ 55,425$ 2%
GM% #DIV/0! 26% 33% 17% 18% AVG INV / SKU
GM / Transaction #DIV/0! 45$ 220$ 151$ 141$ $260
GM / SKU #DIV/0! 146$ 320$ 210$ 215$
Turn and Earn (GM) #DIV/0! 65 #DIV/0! 60 68
Inventory $ -$ 2,992$ -$ 64,010$ 67,002$ TURNS
Days of Inventory (180) #DIV/0! 143 #DIV/0! 102 97 3.8
Total Sales 2,878,775$ 1,914,750$ 9,085,856$ 1,804,329$ 15,683,710$
% of Sales 18% 12% 58% 12% 100%
COGS (2,521,924)$ (1,326,741)$ (7,220,128)$ (1,369,224)$ (12,438,017)$
Transactions 732 872 2,496 464 4,564
$ / Transaction 3,933$ 2,196$ 3,640$ 3,889$ 3,436$
SKUs 84 166 200 292 742
$ / SKU 34,271$ 11,535$ 45,429$ 6,179$ 21,137$
Gross Margin 356,851$ 588,008$ 1,865,728$ 435,106$ 3,245,693$
GM% 12% 31% 21% 24% 21%
GM / Transaction 488$ 674$ 747$ 938$ 711$
GM / SKU 4,248$ 3,542$ 9,329$ 1,490$ 4,374$
Turn and Earn (GM) 585 781 1,889 485 1,021 TOTAL INV
Inventory $ 53,432$ 52,143$ 78,503$ 68,099$ 252,177$ 893,235$
641,058$ 358
VOLATILITY
A (Top 80% of
COGS)
B (Next 15% of
COGS)
C (Final 5% of
COGS)

All Other DCs 9-Box: Volume & Customer
Notes:
It should be noted that
SHIP-DIRECT from
Vendors makes up: 96% of
TOTAL Sales and COGS;
93% of Gross Margin; and
72% of Transactions and
Inventory.
Given the majority of this 9-
Box is related to Direct
Ships from vendors, all
inventory assessment, T/E
and Days of Inventory are
somewhat not applicable.
Margins for this "site" are
the lowest in the company.
It is highly recommended
that further analysis been
conducted regarding the
Direct Ship Business.
92% of Total Sales come
from 374 "A" or Large
Customers, with a low
margin (20%) relative to
other "Sites.“
REF "All Others Pricing
Plan" for one option to
explore in order to increase
margin.
(includes Vendor Direct Ship, Location F,
Total Sales 12,962,073$ 831,831$ 107,364$ 13,901,269$
% of Sales 83% 5% 1% 89% v 80%
COGS (10,378,603)$ (610,543)$ (93,000)$ (11,082,147)$ 89%
# of Customers 374 182 90 646
Transactions 2,862 634 144 3,640
Sales / Transaction 4,529$ 1,312$ 746$ 3,819$
Gross Margin 2,583,470$ 221,288$ 14,364$ 2,819,122$
GM% 20% 27% 13% 20%
GM / Transaction 903$ 349$ 100$ 774$
Turn and Earn (GM) 1,505
Total Sales 1,288,391$ 178,888$ 7,806$ 1,475,085$
% of Sales 8% 1% 0% 9%
COGS (963,826)$ (129,449)$ (10,663)$ (1,103,939)$
# of Customers 374 182 90 646
Gross Margin 324,565$ 49,439$ (2,857)$ 371,146$
GM% 25% 28% -37% 25%
GM / Transaction 792$ 515$ (119)$ 700$
Total Sales 202,501$ 75,766$ 29,090$ 307,357$
% of Sales 1% 0% 0% 2%
COGS (158,501)$ (71,795)$ (21,635)$ (251,931)$
# of Customers 374 182 90 646
Sales / Transaction 946$ 486$ 1,212$ 780$
Gross Margin 44,000$ 3,970$ 7,455$ 55,425$
GM% 22% 5% 26% 18%
GM / Transaction 206$ 25$ 311$ 141$
Total Sales 14,452,966$ 1,086,484$ 144,260$ 15,683,710$
% of Sales 92% 7% 1% 100%
COGS (11,500,931)$ (811,788)$ (125,298)$ (12,438,017)$
# of Customers 290 318 382 992
Transactions 3,486 886 192 4,564
Gross Margin 2,952,035$ 274,697$ 18,962$ 3,245,693$
GM% 20% 25% 13% 21%
GM / Transaction 847$ 310$ 99$ 711$
Inventory $ $252,177 893,235$
641,058$ 358
CUSTOMER
A (Top 80% of
COGS)
$149,361
B (Next 15% of
COGS)
$35,814
C (Final 5% of
COGS)
$67,002
$252,177

41
All Other DCs 9-Box: Inventory Target Calculation
Summary (includes Vendor Direct Ship, Location F,
Not Applicable for this "BU"
Current
A 6 12 4 A 36,514$ 39,152$ 73,695$
B 43 29 8 B 16,917$ 9,999$ 4,809$
C #DIV/0! 143 #DIV/0! C -$ 2,992$ -$
184,078$
A 30 45 60 A 195,551$ 147,207$ 1,146,746$
B 60 75 90 B 23,461$ 25,703$ 56,655$
C 120 140 180 C 2,931$
1,598,253$
Days
Reduced
A B C
Resulting
Inv
Reduction
A B C
A (24) (33) (56) A (159,037)$ (108,055)$ (1,073,051)$
B (17) (46) (82) B (6,543)$ (15,705)$ (51,846)$
C 3 C 61$
(1,414,175)$
Notes:
Current State
Proposed State
Net Change

42
All Other DCs 9-Box: Target Pricing Calculation
Summary (includes Vendor Direct Ship, Location F,
Current
Margin
A B C
Current
Sales
A B C
A 13% 30% 20% A 2,729,285$ 1,715,689$ 8,758,979$
B 5% 34% 25% B 149,490$ 188,790$ 305,514$
C #DIV/0! 26% 33% C -$ 10,271$ 21,363$
13,879,381$
Targeted
Margin A B C
Resultant
Sales A B C
A 28% 30% 31% A 3,143,406$ 1,708,717$ 9,691,319$
B 29% 34% 35% B 186,070$ 188,790$ 335,908$
C #DIV/0! 35% 36% C - 11,236$ 22,015$
15,287,460$
Increased
Margin Pts
A B C
Increased
Sales
A B C
A 15% 0% 11% A 414,121$ (6,972)$ 932,340$
B 24% 0% 10% B 36,580$ -$ 30,394$
C #DIV/0! 9% 3% C - 965$ 652$ Increase In Sales
1,408,079$ 10%
Notes:
Current State
Proposed State
Net Change

Product Group U 9-Box: Volume & Volatility
Notes:
All Segments with the exception
of AC and AD have low or poor
T&E Ratios which is most likely
attributable to high inventory
levels.
Margins are chaotic and seem to
lack policy or standardization.
See “U Pricing Plan“ tab for
recommendation as to how to
increase sales by up to:
$2,909,760
There is tremendous risk with
this product line (U) having over
58% of Total sales
in High (C) Volatility (43%) & D-
Volt SKUs (15%) - those only
ordered 4 or less x / year.
Careful supply and demand
planning should occur to reduce
out-of-stock situations while
avoiding unnecessary built up
after the FALL Peak Season.
by $3,317,896.
include the $4,194,746 of
inventory w/o sales in past year
nor does it include the D - Volt
inventory of $1,132,892 below.
Sales 3,537,509$ 13,845,533$ 19,003,336$ 2,973,146$ 39,359,524$ Sales
% of Total Sales 8% 30% 41% 6% 85% 85%
COGS (2,226,608)$ (9,739,650)$ ########## (2,091,727)$ (27,261,834)$ Trans %
Transactions 2,438 10,818 14,648 80 27,984 82%
$ / Transaction 1,451$ 1,280$ 1,297$ 37,164$ 1,407$ SKU %
SKUs 28 102 100 24 254 25%
$ / SKU 126,340$ 135,741$ 190,033$ 123,881$ 154,959$ % TOT GM
Gross Margin 1,310,901$ 4,105,883$ 5,799,487$ 881,419$ 12,097,689$ 84%
GM% 37% 30% 31% 30% 31% AVG INV / SKU
GM / Transaction 538$ 380$ 396$ 11,018$ 432$ $22,118
GM / SKU 46,818$ 40,254$ 57,995$ 36,726$ 47,629$
Turn and Earn 112 107 185 30,174 149
Inventory $ 737,900$ 2,701,293$ 2,176,646$ 2,055$ 5,617,894$ TURNS
Days of Inventory 121 101 60 0 75 4.9
Total Sales 451,905$ 1,474,895$ 1,100,421$ 2,695,775$ 5,722,995$ Sales
% of Sales 1% 3% 2% 6% 12% 12%
COGS (295,666)$ (903,721)$ (757,328)$ (1,907,745)$ (3,864,459)$ % TRANS
Transactions 470 2,208 1,570 484 4,732 14%
$ / Transaction 962$ 668$ 701$ 5,570$ 1,209$ % SKUs
SKUs 26 68 54 164 312 31%
$ / SKU 17,381$ 21,690$ 20,378$ 16,438$ 18,343$ % TOT GM
Gross Margin 156,239$ 571,174$ 343,093$ 788,030$ 1,858,536$ 13%
GM% 35% 39% 31% 29% 32% AVG INV / SKU
GM / Transaction 332$ 259$ 219$ 1,628$ 393$ $5,882
GM / SKU 6,009$ 8,400$ 6,354$ 4,805$ 5,957$
Turn and Earn 60 57 44 108 68
Inventory $ 171,403$ 615,308$ 531,391$ 517,105$ 1,835,207$ TURNS
Total Sales 100,210$ 111,708$ 69,391$ 1,143,106$ 1,424,414$ Sales %
% of Sales 0% 0% 0% 2% 3% 3%
COGS (60,349)$ (60,382)$ (41,229)$ (779,241)$ (941,202)$ % TRANS
Transactions 256 390 178 732 1,556 5%
$ / Transaction 391$ 286.43$ 389.84$ 1,561.62$ 915.43$ % SKUs
SKUs 20 26 16 392 454 45%
$ / SKU 5,011$ 4,296$ 4,337$ 2,916$ 3,137$ % TOT GM
Gross Margin 39,861$ 51,325$ 28,161$ 363,865$ 483,212$ 3%
GM% 40% 46% 41% 32% 34% AVG INV / SKU
GM / Transaction 156$ 132$ 158$ 497$ 311$ $1,665
GM / SKU 1,993$ 1,974$ 1,760$ 928$ 1,064$
Turn and Earn 56 55 34 40 42
Inventory $ 42,636$ 50,290$ 49,180$ 613,733$ 755,838$ TURNS
Total Sales 4,089,625$ 15,432,135$ 20,173,148$ 6,812,026$ 46,506,934$
% of Sales 9% 33% 43% 15% 100%
COGS (2,582,623)$ (10,703,753)$ ########## (4,778,713)$ (32,067,496)$
Transactions 3,164 13,416 16,396 1,296 34,272
$ / Transaction 1,293$ 1,150$ 1,230$ 5,256$ 1,357$
SKUs 74 196 170 580 1,020
$ / SKU 55,265$ 78,735$ 118,666$ 11,745$ 45,595$
Gross Margin 1,507,002$ 4,728,382$ 6,170,741$ 2,033,313$ 14,439,438$
GM% 37% 31% 31% 30% 31%
GM / Transaction 476$ 352$ 376$ 1,569$ 421$
GM / SKU 20,365$ 24,124$ 36,298$ 3,506$ 14,156$
Inventory $ 951,939$ 3,366,891$ 2,757,217$ 1,132,893$ 8,208,940$ 12,403,686$
4,194,746$ 420
VOLATILITY
A (Top 80% of
COGS)
B (Next 15% of
COGS)
C (Final 5% of
COGS)

Product Group U 9-Box: Volume & Customer
Notes:
Margins appear chaotic and don't
seem to illustrate a policy
recognizing higher volume and /
or larger customers. REF V&V
9-Box for opportunities
to increase sales.
much inventory. See V&V 9-Box
for possible scenarios to reduce
inventory.
596 of 2,814 (21%) of Large
Customers (A) make-up 84% of
Sales – Nice opportunity to
create unique program offerings
to these customers.
AA: High Volume SKUs / Large
Customers make up 71% of
Sales.
Total Sales 33,155,007$ 5,251,188$ 953,328$ 39,359,524$
% of Sales 71% 11% 2% 85% v 80%
COGS (23,089,735)$ (3,501,903)$ (670,196)$ (27,261,834)$
# of Customers 294 345 366 1,005
Transactions 20,280 5,746 1,958 27,984
Gross Margin 10,065,272$ 1,749,285$ 283,132$ 12,097,689$
GM% 30% 33% 30% 31%
GM / Transaction 496$ 304$ 145$ 432$
Turn and Earn 149
Total Sales 4,991,787$ 628,890$ 102,319$ 5,722,995$
% of Sales 11% 1% 0% 12%
COGS (3,401,485)$ (399,730)$ (62,968)$ (3,864,459)$
# of Customers 243 183 114 541
Transactions 3,478 934 318 4,732
Gross Margin 1,590,302$ 229,160$ 39,351$ 1,858,536$
GM% 32% 36% 38% 32%
GM / Transaction 457$ 245$ 124$ 393$
Turn and Earn 68
Total Sales 1,106,881$ 264,222$ 53,311$ 1,424,414$
% of Sales 2% 1% 0% 3%
COGS (729,335)$ (177,017)$ (34,650)$ (941,202)$
# of Customers 163 81 47 292
Transactions 1,120 332 102 1,556
Gross Margin 377,546$ 87,205$ 18,661$ 483,212$
GM% 34% 33% 35% 34%
GM / Transaction 337$ 263$ 183$ 311$
Turn and Earn 42
Total Sales 39,253,675$ 6,144,300$ 1,108,958$ 46,506,934$
% of Sales 84% 13% 2% 100%
COGS (27,220,556)$ (4,078,650)$ (767,814)$ (32,067,496)$
# of Customers 596 724 818 2,140
Transactions 24,878 7,012 2,378 34,272
Gross Margin 12,033,120$ 2,065,650$ 341,144$ 14,439,438$
GM% 31% 34% 31% 31%
GM / Transaction 484$ 295$ 143$ 421$
Inventory $ $8,208,940 12,403,686$
4,194,746$ 420
$755,838
$8,208,940
CUSTOMER
A (Top 80% of
COGS)
$5,617,894
B (Next 15% of
COGS)
$1,835,207

46
Product Group U 9-Box: Inventory Target Calculation
Summary
Current
A 121 101 60 A 737,900$ 2,701,293$ 2,176,646$
B 212 249 256 B 171,403$ 615,308$ 531,391$
C 258 304 435 C 42,636$ 50,290$ 49,180$
7,076,047$
A 30 45 60 A 183,009$ 1,200,779$ 2,170,496$
B 60 75 90 B 48,603$ 185,696$ 186,738$
C 120 140 180 C 19,841$ 23,160$ 20,332$
4,038,654$
Days
Reduced
A B C
Resulting
Inv
Reduction
A B C
A 91 56 0 A 554,891$ 1,500,515$ 6,150$
B 152 174 166 B 122,800$ 429,612$ 344,653$
C 138 164 255 C 22,795$ 27,130$ 28,847$
3,037,393$
Notes:
Current State
Proposed State
Net Change

47
Product Group U 9-Box: Target Pricing Calculation
Summary
Current
Margin
A B C
Current
Sales
A B C
A 37% 30% 31% A 3,537,509$ 13,845,533$ 19,003,336$
B 35% 39% 31% B 451,905$ 1,474,895$ 1,100,421$
C 40% 46% 41% C 100,210$ 111,708$ 69,391$
39,694,907$
Targeted
Margin A B C
Resultant
Sales A B C
A 37% 38% 39% A 3,537,509$ 15,008,869$ 20,626,017$
B 38% 39% 40% B 467,648$ 1,479,773$ 1,198,126$
C 41% 46% 47% C 101,213$ 111,708$ 73,806$
42,604,667$
Increased
Margin Pts
A B C
Increased
Sales
A B C
A 0% 8% 9% A -$ 1,163,336$ 1,622,680$
B 3% 0% 9% B 15,743$ 4,878$ 97,705$
C 1% 0% 6% C 1,002$ -$ 4,415$ Increase In Sales
2,909,760$ 7%
Notes:
Current State
Proposed State
Net Change
This analysis calculates the marginal sales / EBITDA that would come from ensuring that smaller customers and SKU's
have at least the same margin as A customers / A SKU's.

Product Group V 9-Box: Volume & Volatility
Notes:
All Segments with the exception of
AD and BD have low or poor T&E
Ratios.
lack policy or standardization. See
“V Pricing Plan“ tab for
increase sales by 2%.
There is tremendous risk with this
product line (V) having over 70% of
sales in High Volatility (59%) and
with D-Volt SKUs - those only
avoiding unnecessary built up after
the very high volume FALL Season
for COVER.
$2,292,622.
This opportunity DOES NOT include
the $238,432 of inventory w/o sales
in past year nor does it include any
of the $499,926 in D-Volatility
inventory.
A Items - 9x more sales versus B
items; A Items 76x more sales v C
Items
Sales 645,013$ 3,488,870$ 9,189,606$ 902,939$ 14,226,428$ Sales
% of Total Sales 4% 22% 57% 6% 88% 88%
COGS (456,904)$ (2,266,975)$ (6,108,153)$ (577,362)$ (9,409,394)$ Trans %
Transactions 168 2,496 8,992 44 11,700 86%
$ / Transaction 3,839$ 1,398$ 1,022$ 20,521$ 1,216$ SKU %
SKUs 8 24 34 14 80 31%
$ / SKU 80,627$ 145,370$ 270,283$ 64,496$ 177,830$ % TOT GM
Gross Margin 188,109$ 1,221,895$ 3,081,453$ 325,577$ 4,817,035$ 88%
GM% 29% 35% 34% 36% 34% AVG INV / SKU
GM / Transaction 1,120$ 490$ 343$ 7,399$ 412$ $41,340
GM / SKU 23,514$ 50,912$ 90,631$ 23,255$ 60,213$
Turn and Earn 115 109 89 124 96
Inventory $ 115,767$ 730,994$ 2,293,194$ 167,229$ 3,307,184$ TURNS
% of Sales 2% 2% 2% 4% 10% 10%
COGS (221,702)$ (194,229)$ (201,412)$ (459,822)$ (1,077,165)$ % TRANS
Transactions 362 454 688 114 1,618 12%
$ / Transaction 944$ 666$ 435$ 6,274$ 1,025$ % SKUs
SKUs 18 14 14 38 84 32%
$ / SKU 18,994$ 21,596$ 21,385$ 18,821$ 19,748$ % TOT GM
Gross Margin 120,198$ 108,115$ 97,979$ 255,377$ 581,668$ 11%
GM% 35% 36% 33% 36% 35% AVG INV / SKU
GM / Transaction 332$ 238$ 142$ 2,240$ 359$ $5,554
GM / SKU 6,678$ 7,722$ 6,998$ 6,720$ 6,925$
Turn and Earn 38 56 51 1,628 81
Inventory $ 202,834$ 123,979$ 129,638$ 10,083$ 466,534$ TURNS
% of Sales 0% 0% 0% 1% 1% 1%
COGS (15,131)$ (8,987)$ (10,079)$ (131,389)$ (165,586)$ % TRANS
Transactions 40 48 42 220 350 3%
$ / Transaction 449$ 254.95$ 340.75$ 813$ 638$ % SKUs
SKUs 4 4 4 84 96 37%
$ / SKU 4,493$ 3,059$ 3,578$ 2,129$ 2,327$ % TOT GM
Gross Margin 2,840$ 3,251$ 4,232$ 47,482$ 57,805$ 1%
GM% 16% 27% 30% 27% 26% AVG INV / SKU
GM / Transaction 71$ 68$ 101$ 216$ 165$ $4,785
GM / SKU 710$ 813$ 1,058$ 565$ 602$
Turn and Earn 21 2 6 12 9
Inventory $ 11,516$ 97,821$ 47,413$ 302,614$ 459,364$ TURNS
Days of Inventory 278 3,973 1,717 841 1,013 0.4
Total Sales 1,004,884$ 3,803,452$ 9,503,307$ 1,797,009$ 16,108,652$
% of Sales 6% 24% 59% 11% 100%
COGS (693,737)$ (2,470,191)$ (6,319,643)$ (1,168,574)$ (10,652,145)$
Transactions 570 2,998 9,722 378 13,668
$ / Transaction 1,763$ 1,269$ 978$ 4,754$ 1,179$
SKUs 30 42 52 136 260
$ / SKU 33,496$ 90,558$ 182,756$ 13,213$ 61,956$
Gross Margin 311,147$ 1,333,260$ 3,183,664$ 628,436$ 5,456,507$
GM% 31% 35% 34% 35% 34%
GM / Transaction 546$ 445$ 327$ 1,663$ 399$
GM / SKU 10,372$ 31,744$ 61,224$ 4,621$ 20,987$
Inventory $ 330,118$ 952,793$ 2,470,245$ 479,926$ 4,233,082$ 4,471,604$
238,521$ 42
VOLATILITY
A (Top 80%
of COGS)
B (Next 15%
of COGS)
C (Final 5% of
COGS)

Product Group V 9-Box: Volume & Customer
Notes:
All ABC Volume SKUs have
poor T/E Ratios.
Margins appear chaotic and
don't seem to illustrate a policy
recognizing higher volume and /
or larger customers. REF V&V
9-Box for opportunities to
increase sales.
much inventory. See V&V 9-
Box for possible scenarios to
reduce inventory.
506 (A) Large Customers of
1442 Total PG V Customers
make-up 85% of Sales - Nice
opportunity to create unique
program offerings to these
customers.
AA: High Volume SKUs / Large
Customers make up 75% of
Sales.
Small Customers (434) make
up only 2% of sales yet
comprise 7% of total
transactions - $204 in GM per
transaction.
Total Sales 12,018,518$ 1,954,091$ 253,818$ 14,226,428$
% of Sales 75% 12% 2% 88% v 80%
COGS (7,934,578)$ (1,306,364)$ (168,451)$ (9,409,394)$ 88%
# of Customers 242 237 189 668
Transactions 8,700 2,188 812 11,700
Gross Margin 4,083,940$ 647,728$ 85,367$ 4,817,035$
GM% 34% 33% 34% 34%
GM / Transaction 469$ 296$ 105$ 412$
Turn and Earn 96
Total Sales 1,476,499$ 138,663$ 43,671$ 1,658,833$
% of Sales 9% 1% 0% 10%
COGS (949,906)$ (97,582)$ (29,676)$ (1,077,165)$
# of Customers 140 74 54 268
Transactions 1,214 244 160 1,618
Gross Margin 526,593$ 41,081$ 13,994$ 581,668$
GM% 36% 30% 32% 35%
GM / Transaction 434$ 168$ 87$ 359$
Turn and Earn 81
Total Sales 163,660$ 52,417$ 7,314$ 223,391$
% of Sales 1% 0% 0% 1%
COGS (120,849)$ (39,688)$ (5,049)$ (165,586)$
# of Customers 48 25 7 80
Gross Margin 42,811$ 12,729$ 2,265$ 57,805$
GM% 26% 24% 31% 26%
GM / Transaction 185$ 133$ 103$ 165$
Turn and Earn 9
Days of Inventory 1,013 0.4
Total Sales 13,658,677$ 2,145,172$ 304,803$ 16,108,652$
% of Sales 85% 13% 2% 100%
COGS (9,005,333)$ (1,443,635)$ (203,177)$ (10,652,145)$
# of Customers 506 502 434 1,442
Transactions 10,146 2,528 994 13,668
Gross Margin 4,653,344$ 701,537$ 101,626$ 5,456,507$
GM% 34% 33% 33% 34%
GM / Transaction 459$ 278$ 102$ 399$
Inventory $ $4,233,082 4,471,604$
238,521$ 42
CUSTOMER
A (Top 80% of
COGS)
$3,307,184
B (Next 15% of
COGS)
$466,534
$459,364
$4,233,082

50
Product Group V 9-Box: Inventory Target Calculation
Summary
Current
A 92 118 137 A 115,767$ 730,994$ 2,293,194$
B 334 233 235 B 202,834$ 123,979$ 129,638$
C 278 3,973 1,717 C 11,516$ 97,821$ 47,413$
3,753,156$
A 30 45 60 A 37,554$ 279,490$ 1,004,080$
B 60 75 90 B 36,444$ 39,910$ 49,663$
C 120 140 180 C 4,975$ 3,447$ 4,970$
1,460,533$
Days
Reduced
A B C
Resulting
Inv
Reduction
A B C
A 62 73 77 A 78,214$ 451,504$ 1,289,114$
B 274 158 145 B 166,390$ 84,069$ 79,975$
C 158 3,833 1,537 C 6,541$ 94,374$ 42,443$
2,292,623$
Notes:
Current State
Proposed State
Net Change

51
Product Group V 9-Box: Target Pricing Calculation
Summary
Current
Margin
A B C D
Current
Sales
A B C D
A 29% 35% 34% 36% A 645,013$ 3,488,870$ 9,189,606$ 902,939$
B 35% 36% 33% 36% B 341,900$ 302,343$ 299,390$ 715,199$
C 16% 27% 30% 27% C 17,971$ 12,238$ 14,311$ 178,871$
16,108,652$
Targeted
Margin
A B C D
Resultant
Sales
A B C D
A 29% 35% 36% 37% A 645,013$ 3,488,870$ 9,418,492$ 911,654$
B 35% 36% 37% 38% B 341,900$ 303,543$ 312,653$ 732,712$
C 36% 37% 38% 39% C 21,628$ 13,534$ 15,540$ 201,428$
16,406,968$
Increased
Margin Pts
A B C D
Increased
Sales
A B C D
A 0% 0% 2% 1% A -$ -$ 228,886$ 8,715$
B 0% 0% 4% 2% B -$ 1,200$ 13,262$ 17,513$
C 20% 11% 9% 13% C 3,658$ 1,297$ 1,228$ 22,557$ Increase In Sales
298,316$ 2%
Notes:
Current State
Proposed State
Net Change
This analysis calculates the marginal sales / EBITDA that would come from ensuring that smaller customers and SKU's
have at least the same margin as A customers / A SKU's.

Product Group W 9-Box: Volume & Volatility
Notes:
All Segments with the
exception of AA (+D-Volt: AD,
BD) have low or poor T&E
Ratios.
Margins are chaotic and seem
to lack policy or
standardization. See “W
Pricing Plan“ tab for
increase sales by 2%.
Unlike other Product Groups, W
does not have as high % sales
from High Volatility (17%) and
D-Volt (15%) SKUs - those only
Although not as high, with 32%
of sales coming from these two
segments there's still a need for
careful supply and demand
avoiding unnecessary built up
after the FALL Season for W.
by $5,127,436.
nor does it include any of the
$621,580 in D-Volatility
inventory.
A Items - 6.6x more sales
versus B items; A Items 46.6x
more sales v C Items
Sales 6,873,741$ 5,577,379$ 2,927,775$ 514,682$ 15,893,576$ Sales
% of Total Sales 30% 24% 13% 2% 70% 70%
COGS (4,966,776)$ (3,937,403)$ (2,231,057)$ (402,442)$ (11,537,679)$ Trans %
Transactions 8,394 7,614 2,854 54 18,916 66%
$ / Transaction 819$ 733$ 1,026$ 9,531$ 840$ SKU %
SKUs 60 52 30 12 154 11%
$ / SKU 114,562$ 107,257$ 97,593$ 42,890$ 103,205$ % TOT GM
Gross Margin 1,906,964$ 1,639,975$ 696,719$ 112,239$ 4,355,897$ 68%
GM% 28% 29% 24% 22% 27% AVG INV / SKU
GM / Transaction 227$ 215$ 244$ 2,079$ 230$ $23,232
GM / SKU 31,783$ 31,538$ 23,224$ 9,353$ 28,285$
Turn and Earn 135 98 39 77,066 88
Inventory $ 1,019,577$ 1,184,285$ 1,373,810$ 114$ 3,577,786$ TURNS
Total Sales 1,803,296$ 929,957$ 825,432$ 1,283,341$ 4,842,025$ Sales
% of Sales 8% 4% 4% 6% 21% 21%
COGS (1,317,618)$ (618,836)$ (572,448)$ (950,508)$ (3,459,411)$ % TRANS
Transactions 1,236 2,712 1,922 364 6,234 22%
$ / Transaction 1,459$ 343$ 429$ 3,526$ 777$ % SKUs
SKUs 106 50 44 108 308 22%
$ / SKU 17,012$ 18,599$ 18,760$ 11,883$ 15,721$ % TOT GM
Gross Margin 485,678$ 311,121$ 252,983$ 332,833$ 1,382,615$ 22%
GM% 27% 33% 31% 26% 29% AVG INV / SKU
GM / Transaction 393$ 115$ 132$ 914$ 222$ $4,395
GM / SKU 4,582$ 6,222$ 5,750$ 3,082$ 4,489$
Turn and Earn 66 67 41 308 73
Inventory $ 535,291$ 309,454$ 428,683$ 80,138$ 1,353,566$ TURNS
Total Sales 320,342$ 118,889$ 90,511$ 1,545,454$ 2,075,195$ Sales %
% of Sales 1% 1% 0% 7% 9% 9%
COGS (209,531)$ (80,368)$ (63,799)$ (1,079,116)$ (1,432,814)$ % TRANS
Transactions 1,000 586 258 1,630 3,474 12%
SKUs 98 32 22 784 936 67%
$ / SKU 3,269$ 3,715$ 4,114$ 1,971$ 2,217$ % TOT GM
Gross Margin 110,810$ 38,521$ 26,712$ 466,338$ 642,381$ 10%
GM% 35% 32% 30% 30% 31% AVG INV / SKU
GM / Transaction 111$ 66$ 104$ 286$ 185$ $1,397
GM / SKU 1,131$ 1,204$ 1,214$ 595$ 686$
Turn and Earn 30 44 4 60 34
Inventory $ 241,546$ 58,716$ 465,989$ 541,328$ 1,307,578$ TURNS
Days of Inventory 421 267 2,666 183 333 1.1
Total Sales 8,997,378$ 6,626,225$ 3,843,718$ 3,343,476$ 22,810,797$
% of Sales 39% 29% 17% 15% 100%
COGS (6,493,926)$ (4,636,608)$ (2,867,304)$ (2,432,066)$ (16,429,903)$
Transactions 10,630 10,912 5,034 2,048 28,624
$ / Transaction 846$ 607$ 764$ 1,633$ 797$
SKUs 264 134 96 904 1,398
$ / SKU 34,081$ 49,449$ 40,039$ 3,699$ 16,317$
Gross Margin 2,503,452$ 1,989,617$ 976,414$ 911,410$ 6,380,894$
GM% 28% 30% 25% 27% 28%
GM / Transaction 236$ 182$ 194$ 445$ 223$
GM / SKU 9,483$ 14,848$ 10,171$ 1,008$ 4,564$
Inventory $ 1,796,414$ 1,552,455$ 2,268,482$ 621,580$ 6,238,930$ 6,705,850$
466,919$ 214
VOLATILITY
A (Top 80% of
COGS)
B (Next 15% of
COGS)
C (Final 5% of
COGS)

Product Group W 9-Box: Volume & Customer
Notes:
All ABC Volume SKUs have
poor T/E Ratios.
With the exception of Segment
AC, Customer Margins look
good with increasing margins
with smaller customers and
lower volume SKUs.
All Volume Segments have too
much inventory. See V&V 9-
Box for possible scenarios to
reduce inventory.
550 (A) Large Customers of
2,988 Total PG W Customers
make-up 70% of Sales -
Nice opportunity to create
unique program offerings to
these customers.
57% of Total PG W Customers
are considered Small and make
up 10% of Sales.
These many Small customers
have a GM / Transaction of
$220 - less than half of the GM /
Transaction ($556) for Large
Customers.
Total Sales 10,960,022$ 3,245,012$ 1,688,542$ 15,893,576$
% of Sales 48% 14% 7% 70% v 80%
COGS (8,185,356)$ (2,218,727)$ (1,133,221)$ (11,537,679)$
# of Customers 520 682 1,504 2,708
Transactions 9,128 5,132 4,652 18,916
Gross Margin 2,774,666$ 1,026,284$ 555,321$ 4,355,897$
GM% 25% 32% 33% 27%
GM / Transaction 304$ 200$ 119$ 230$
Turn and Earn 88
Total Sales 3,890,590$ 708,269$ 243,167$ 4,842,025$
% of Sales 17% 3% 1% 21%
COGS (2,812,706)$ (491,753)$ (154,952)$ (3,459,411)$
# of Customers 370 352 522 1,244
Transactions 3,674 1,320 1,240 6,234
Gross Margin 1,077,885$ 216,515$ 88,215$ 1,382,615$
GM% 28% 31% 36% 29%
GM / Transaction 293$ 164$ 71$ 222$
Turn and Earn 73
Total Sales 1,121,275$ 670,698$ 283,223$ 2,075,195$
% of Sales 5% 3% 1% 9%
COGS (782,701)$ (455,202)$ (194,911)$ (1,432,814)$
# of Customers 312 234 320 866
Transactions 1,782 956 736 3,474
Gross Margin 338,573$ 215,496$ 88,312$ 642,381$
GM% 30% 32% 31% 31%
GM / Transaction 190$ 225$ 120$ 185$
Turn and Earn 34
Total Sales 15,971,887$ 4,623,978$ 2,214,932$ 22,810,797$
% of Sales 70% 20% 10% 100%
COGS (11,780,763)$ (3,165,682)$ (1,483,084)$ (16,429,903)$
# of Customers 550 742 1,694 2,988
Transactions 14,584 7,408 6,628 28,624
Gross Margin 4,191,124$ 1,458,296$ 731,848$ 6,380,894$
GM% 26% 32% 33% 28%
GM / Transaction 287$ 197$ 110$ 223$
Inventory $ $6,238,930 6,705,850$
466,919$ 214
C (Final 5% of
COGS)
$1,307,578
$6,238,930
CUSTOMER
A (Top 80% of
COGS)
$3,577,786
B (Next 15% of
COGS)
$1,353,566

54
Product Group W 9-Box: Inventory Target Calculation
Summary
Current
A 75 110 225 A 1,019,577$ 1,184,285$ 1,373,810$
B 148 183 273 B 1,803,296$ 929,957$ 825,432$
C 421 267 2,666 C 241,546$ 58,716$ 465,989$
7,902,607$
A 30 45 60 A 408,228$ 485,433$ 366,749$
B 60 75 90 B 729,668$ 382,129$ 271,788$
C 120 140 180 C 68,887$ 30,826$ 31,462$
2,775,172$
Days
Reduced
A B C
Resulting
Inv
Reduction
A B C
A 45 65 165 A 611,349$ 698,851$ 1,007,061$
B 88 108 183 B 1,073,628$ 547,828$ 553,643$
C 301 127 2,486 C 172,659$ 27,889$ 434,526$
5,127,435$
Notes:
Current State
Proposed State
Net Change

55
Product Group W 9-Box: Target Pricing Calculation
Summary
Current
Margin
A B C D
Current
Sales
A B C D
A 28% 29% 24% 22% A 6,873,741$ 5,577,379$ 2,927,775$ 514,682$
B 27% 33% 31% 26% B 1,803,296$ 929,957$ 825,432$ 1,283,341$
C 35% 32% 30% 30% C 320,342$ 118,889$ 90,511$ 1,545,454$
22,810,797$
Targeted
Margin
A B C D
Resultant
Sales
A B C D
A 28% 29% 30% 31% A 6,873,741$ 5,577,379$ 3,121,219$ 564,073$
B 29% 33% 34% 35% B 1,835,935$ 929,957$ 856,854$ 1,405,521$
C 35% 36% 37% 38% C 320,342$ 122,682$ 96,918$ 1,660,071$
23,364,690$
Increased
Margin Pts
A B C D
Increased
Sales
A B C D
A 0% 0% 7% 10% A -$ -$ 193,443$ 49,392$
B 2% 0% 4% 10% B 32,639$ -$ 31,422$ 122,180$
C 0% 3% 7% 7% C -$ 3,793$ 6,407$ 114,617$ Increase In Sales
553,893$ 2%
Notes:
Current State
Proposed State
Net Change
This analysis calculates the marginal sales / EBITDA that would come from ensuring that smaller customers and SKU's have at least
the same margin as A customers / A SKU's.

Product Group X 9-Box: Volume & Volatility
Notes:
Excellent T/E Ratios for All A
Volm Product Group X
Segments - AA, AB, AC (and
AD).
Margins are chaotic and seem
to lack policy or standardization.
See “X Pricing Plan"
tab for recommendation as to
how to increase PG X sales by
up to 8%.
Like most other Product
Groups, a large % of PG X
Sales (85%) come from High
Volatility (79%) and D-Volt (6%)
SKUs - those only ordered less
than 5x per year.
out-of-stock situations and to
avoid unnecessary built up after
the FALL Season for PG X.
by $397,100.
This opportunity does not
include the $176926 of
nor does it include any of the
$213,582 in D-Volatility
inventory.
A Items - 19x more sales versus
B items; A Items 271x more
sales v C Items
Sales 355,820$ 99,660$ 6,518,452$ 103,464$ 7,077,396$ Sales
% of Total Sales 4% 1% 74% 1% 80% 80%
COGS (277,545)$ (65,058)$ (4,864,871)$ (82,221)$ (5,289,695)$ Trans %
Transactions 116 302 2,500 200 3,118 30%
$ / Transaction 3,067$ 330$ 2,607$ 517$ 2,270$ SKU %
SKUs 4 2 10 2 18 5%
$ / SKU 88,955$ 49,830$ 651,845$ 51,732$ 393,189$ % TOT GM
Gross Margin 78,275$ 34,602$ 1,653,581$ 21,243$ 1,787,702$ 73%
GM% 22% 35% 25% 21% 25% AVG INV / SKU
GM / Transaction 675$ 115$ 661$ 106$ 573$ $7,847
GM / SKU 19,569$ 17,301$ 165,358$ 10,622$ 99,317$
Turn and Earn 293 561 1,076 1,005 946
Inventory $ 20,864$ 4,027$ 114,669$ 1,680$ 141,240$ TURNS
% of Sales 2% 6% 4% 2% 15% 15%
COGS (146,325)$ (298,057)$ (263,911)$ (127,628)$ (835,921)$ % TRANS
Transactions 1,298 2,480 1,262 172 5,212 51%
SKUs 10 26 22 8 66 17%
$ / SKU 21,639$ 20,816$ 17,774$ 23,264$ 20,223$ % TOT GM
Gross Margin 70,064$ 243,168$ 127,109$ 58,483$ 498,825$ 20%
GM% 32% 45% 33% 31% 37% AVG INV / SKU
GM / Transaction 54$ 98$ 101$ 340$ 96$ $6,530
GM / SKU 7,006$ 9,353$ 5,778$ 7,310$ 7,558$
Turn and Earn 90 71 47 438 72
Inventory $ 52,482$ 188,224$ 181,097$ 9,153$ 430,956$ TURNS
% of Sales 1% 1% 1% 3% 5% 5%
COGS (37,922)$ (36,308)$ (55,068)$ (169,177)$ (298,474)$ % TRANS
Transactions 204 342 412 936 1,894 19%
SKUs 18 18 28 246 310 79%
$ / SKU 3,009$ 3,362$ 3,214$ 996$ 1,451$ % TOT GM
Gross Margin 16,234$ 24,201$ 34,937$ 75,829$ 151,201$ 6%
GM% 30% 40% 39% 31% 34% AVG INV / SKU
GM / Transaction 80$ 71$ 85$ 81$ 80$ $1,232
GM / SKU 902$ 1,344$ 1,248$ 308$ 488$
Turn and Earn 53 33 19 26 26
Inventory $ 21,320$ 44,502$ 113,397$ 202,748$ 381,968$ TURNS
Total Sales 626,365$ 701,395$ 6,999,476$ 534,582$ 8,861,818$
% of Sales 7% 8% 79% 6% 100%
COGS (461,792)$ (399,423)$ (5,183,849)$ (379,026)$ (6,424,091)$
Transactions 1,618 3,124 4,174 1,308 10,224
$ / Transaction 387$ 225$ 1,677$ 409$ 867$
SKUs 32 46 60 256 394
$ / SKU 19,574$ 15,248$ 116,658$ 2,088$ 22,492$
Gross Margin 164,573$ 301,971$ 1,815,627$ 155,555$ 2,437,727$
GM% 26% 43% 26% 29% 28%
GM / Transaction 102$ 97$ 435$ 119$ 238$
GM / SKU 5,143$ 6,565$ 30,260$ 608$ 6,187$
Inventory $ 94,666$ 236,753$ 409,164$ 213,581$ 954,164$ 1,131,091$
176,927$ 186
VOLATILITY
A (Top 80% of
COGS)
B (Next 15% of
COGS)
C (Final 5% of
COGS)

Product Group X 9-Box: Volume & Customer
Notes:
Solid T/E Ratio from
High Volume SKUs;
Poor T/E from BC
Volume SKUs.
With the exception of
Segment AC,
Customer Margins
look good with
increasing margins
with smaller
customers and lower
volume SKUs.
BC Volume Segments
have too much
inventory. See V&V
9-Box for possible
scenarios to reduce
inventory.
36% of PG X
Customers are
considered Large (A)
and comprise 88% of
Sales - Nice
opportunity to create
unique program
offerings to these
customers.
Total Sales 6,523,720$ 473,134$ 80,543$ -$ 7,077,396$
% of Sales 74% 5% 1% 0% 80% v 80%
COGS (4,886,724)$ (343,391)$ (59,580)$ -$ (5,289,695)$
# of Customers 175 123 46 - 344
Transactions 2,384 504 130 - 3,018
Sales / Transaction 2,736$ 939$ 620$ #DIV/0! 2,345$
Gross Margin 1,636,996$ 129,743$ 20,963$ -$ 1,787,702$
GM% 25% 27% 26% #DIV/0! 25%
Turn and Earn 946
Total Sales 993,792$ 250,708$ 90,246$ -$ 1,334,746$
% of Sales 11% 3% 1% 0% 15%
COGS (639,526)$ (145,565)$ (50,799)$ (32)$ (835,921)$
# of Customers 209 182 144 1 536
Transactions 3,318 1,178 628 1 5,125
Gross Margin 354,267$ 105,143$ 39,447$ (32)$ 498,825$
GM% 36% 42% 44% #DIV/0! 37%
GM / Transaction 107$ 89$ 63$ (32)$ 97$
Turn and Earn 72
Total Sales 273,239$ 144,419$ 32,017$ -$ 449,675$
% of Sales 3% 2% 0% 0% 5%
COGS (189,241)$ (92,443)$ (16,791)$ -$ (298,474)$
# of Customers 117 83 55 - 255
Transactions 856 404 166 - 1,426
Gross Margin 83,999$ 51,976$ 15,226$ -$ 151,201$
GM% 31% 36% 48% #DIV/0! 34%
Turn and Earn 26
Total Sales 7,790,751$ 868,261$ 202,806$ -$ 8,861,818$
% of Sales 88% 10% 2% 0% 100%
COGS (5,715,490)$ (581,400)$ (127,169)$ (32)$ (6,424,091)$
# of Customers 508 494 400 2 1,404
Transactions 6,558 2,086 924 1 9,569
Sales / Transaction 1,188$ 416$ 219$ -$ 926$
Gross Margin 2,075,261$ 286,862$ 75,636$ (32)$ 2,437,727$
GM% 27% 33% 37% #DIV/0! 28%
GM / Transaction 316$ 138$ 82$ (32)$ 255$
Inventory $ $954,164 1,131,091$
176,927$ 186
CUSTOMER
A (Top 80% of
COGS)
$141,240
B (Next 15% of
COGS)
$430,956
C (Final 5% of
COGS)
$381,968
$954,164

58
Product Group X 9-Box: Inventory Target Calculation Summary
Current
A 27 23 9 A 20,864$ 4,027$ 114,669$
B 131 230 250 B 52,482$ 188,224$ 181,097$
C 205 447 752 C 21,320$ 44,502$ 113,397$
740,583$
A 27 23 9 A 20,864$ 4,027$ 114,669$
B 60 75 90 B 24,053$ 61,245$ 65,074$
C 120 140 180 C 12,468$ 13,926$ 27,157$
343,483$
Days
Reduced
A B C
Resulting
Inv
Reduction
A B C
A - - - A -$ -$ -$
B 71 155 160 B 28,429$ 126,979$ 116,023$
C 85 307 572 C 8,853$ 30,575$ 86,241$
397,100$
Notes:
Current State
Proposed State
Net Change

59
Product Group X 9-Box: Target Pricing Calculation
Summary
Current
Margin
A B C D
Current
Sales
A B C D
A 22% 35% 25% 21% A 355,820$ 99,660$ 6,518,452$ 103,464$
B 32% 45% 33% 31% B 216,389$ 541,225$ 391,020$ 186,112$
C 30% 40% 39% 31% C 54,156$ 60,509$ 90,005$ 245,005$
8,861,818$
Targeted
Margin
A B C D
Resultant
Sales
A B C D
A 22% 35% 36% 36% A 355,820$ 99,660$ 7,193,269$ 119,179$
B 32% 45% 46% 46% B 216,389$ 541,225$ 443,503$ 213,108$
C 33% 46% 47% 47% C 55,999$ 64,099$ 97,306$ 284,155$
9,683,713$
Increased
Margin Pts
A B C D
Increased
Sales
A B C D
A 0% 0% 10% 15% A -$ -$ 674,817$ 15,714$
B 0% 0% 13% 15% B -$ -$ 52,483$ 26,996$
C 3% 6% 8% 16% C 1,843$ 3,590$ 7,301$ 39,150$ Increase In Sales
821,895$ 9%
Notes:
Current State
Proposed State
Net Change
This analysis calculates the marginal sales / EBITDA that would come from ensuring that smaller customers and SKU's have at least
the same margin as A customers / A SKU's.

Product Group Y 9-Box: Volume & Volatility
Notes:
Excellent T/E Ratios for most A
Volm Product Group Y Segments
- AA, AC (and AD).
lack policy or standardization.
See “Y Pricing Plan“ tab for
increase PG Y sales by up to 4%.
Unlike other Product Groups
(except PG W), PG Y does not
have as high % sales from High
Volatility (30%) and D-Volt (7%)
SKUs - those only ordered 4 or
less x / year.
Although not as high, with 37% of
total sales from C and D VOLT
SKUs there's still a need for
careful supply and demand
out-of-stock situations and avoid
unnecessary built up after the
FALL Peak Season for PG Y.
$171,452.
This opportunity does not include
the $177,036 of inventory w/o
sales in past year nor does it
include any of the $123,470 in D-
Volatility inventory.
A Items - 7.4x more sales versus
B items; A Items 47x more sales
v C Items
Sales 2,821,272$ 1,938,827$ 2,143,948$ 122,014$ 7,026,062$ Sales
% of Total Sales 30% 20% 23% 1% 74% 74%
COGS (2,371,836)$ (1,486,921)$ (1,665,148)$ (109,851)$ (5,633,756)$ Trans %
Transactions 2,474 3,412 886 22 6,794 51%
$ / Transaction 1,140$ 568$ 2,420$ 5,546$ 1,034$ SKU %
SKUs 20 22 20 2 64 15%
$ / SKU 141,064$ 88,129$ 107,197$ 61,007$ 109,782$ % TOT GM
Gross Margin 449,437$ 451,907$ 478,800$ 12,163$ 1,392,306$ 66%
GM% 16% 23% 22% 10% 20% AVG INV / SKU
GM / Transaction 182$ 132$ 540$ 553$ 205$ $9,968
GM / SKU 22,472$ 20,541$ 23,940$ 6,081$ 21,755$
Turn and Earn 341 108 183 405 175
Inventory $ 110,868$ 321,496$ 202,915$ 2,702$ 637,980$ TURNS
% of Sales 5% 6% 6% 3% 20% 20%
COGS (283,719)$ (443,352)$ (441,074)$ (246,264)$ (1,414,409)$ % TRANS
Transactions 1,980 1,318 1,308 86 4,692 35%
SKUs 22 36 42 28 128 30%
$ / SKU 19,643$ 16,197$ 14,158$ 10,717$ 14,922$ % TOT GM
Gross Margin 148,426$ 139,757$ 153,582$ 53,801$ 495,566$ 24%
GM% 34% 24% 26% 18% 26% AVG INV / SKU
GM / Transaction 75$ 106$ 117$ 626$ 106$ $3,049
GM / SKU 6,747$ 3,882$ 3,657$ 1,921$ 3,872$
Turn and Earn 80 88 87 254 94
Inventory $ 121,162$ 120,717$ 130,973$ 17,356$ 390,208$ TURNS
% of Sales 1% 1% 2% 3% 6% 6%
COGS (58,114)$ (48,073)$ (41,801)$ (178,495)$ (326,483)$ % TRANS
Transactions 346 702 428 364 1,840 14%
SKUs 32 22 24 154 232 54%
$ / SKU 2,452$ 3,093$ 6,280$ 1,576$ 2,327$ % TOT GM
Gross Margin 20,355$ 19,972$ 108,916$ 64,228$ 213,472$ 10%
GM% 26% 29% 72% 26% 40% AVG INV / SKU
GM / Transaction 59$ 28$ 254$ 176$ 116$ $963
GM / SKU 636$ 908$ 4,538$ 417$ 920$
Turn and Earn 27 57 75 46 58
Inventory $ 54,952$ 24,662$ 40,350$ 103,412$ 223,376$ TURNS
Total Sales 3,331,887$ 2,589,981$ 2,889,322$ 667,256$ 9,478,446$
% of Sales 35% 27% 30% 7% 100%
COGS (2,713,669)$ (1,978,345)$ (2,148,023)$ (534,610)$ (7,374,648)$
Transactions 4,800 5,432 2,622 478 13,332
$ / Transaction 694$ 477$ 1,102$ 1,396$ 711$
SKUs 74 80 86 186 426
$ / SKU 45,026$ 32,375$ 33,597$ 3,587$ 22,250$
Gross Margin 618,218$ 611,636$ 741,298$ 132,646$ 2,103,798$
GM% 19% 24% 26% 20% 22%
GM / Transaction 129$ 113$ 283$ 278$ 158$
GM / SKU 8,354$ 7,645$ 8,620$ 713$ 4,938$
Inventory $ 286,982$ 466,875$ 374,237$ 123,470$ 1,251,564$ 1,428,600$
177,036$ 94
VOLATILITY
A (Top 80%
of COGS)
B (Next 15%
of COGS)
C (Final 5% of
COGS)

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