This document summarizes a presentation about sourcing challenges and how the software company Verba helps clients overcome them. It discusses how Verba has improved its full-service sourcing tools by adding order tracking features and quality controls. Statistics are provided on stores' sourcing activities, including that they source most often from wholesalers and publishers, and in recent years have increased marketplace sourcing. The presentation concludes with a guided roundtable discussion between Verba and clients on best practices for accounting, purchasing, receiving, and overstock management related to sourcing.

1. ADVANCED SOURCING & ROUNDTABLE DISCUSSION:
Sourcing challenges & how Verba helps.
VBC 2015
Marissa Djafroodi
marissa.djafroodi@verbasoftware.com

2. SPRING 2014
VERBASOFTWARE.COM (415)
SESSION GOALS
‣ How we have overcome sourcing challenges
‣ Use data to inform strategic sourcing decisions
‣ Roundtable discussion: source more effectively

3. VERBASOFTWARE.COM (415)
CONQUERING PAST CHALLENGES
PART I

4. SPRING 2014
VERBASOFTWARE.COM (415)
FULL-SERVICE SOURCING ORDER TRACKING
Added Order Details page
Added “Weekly Digest” email
notifications as things change

5. VERBASOFTWARE.COM (415)
FULL-SERVICE SOURCING ORDER TRACKING

6. SPRING 2014
VERBASOFTWARE.COM (415)
WHAT IS A “GOOD BUY”?
Changed Full-Service Sourcing filter
from % wholesale to % new retail
Made “new retail” available in the
interface

7. VERBASOFTWARE.COM (415)
WHAT IS A “GOOD BUY”?

8. SPRING 2014
VERBASOFTWARE.COM (415)
FULL-SERVICE SOURCING QUALITY CONTROL
Added discrepancy reporting
form to the Order Details page
Constantly refining “acceptability” rules
with 3PL

9. VERBASOFTWARE.COM (415)
FULL-SERVICE SOURCING QUALITY CONTROL

10. SPRING 2014
VERBASOFTWARE.COM (415)
VALOREBOOKS ORDER INVOICE PROCESS
Added the Billing page
Added several data points & tabs to the
invoice detail spreadsheet

11. VERBASOFTWARE.COM (415)
VALOREBOOKS ORDER INVOICE PROCESS

12. VERBASOFTWARE.COM (415)
IMPORTANT SOURCING STATISTICS
PART II

13. verbasoftware.comVERBASOFTWARE.COM (415)
HOW MUCH ARE STORES SOURCING
AND HOW OFTEN?

14. VERBASOFTWARE.COM (415)
WHERE ARE STORES BUYING BOOKS?
Buyback
10%
Marketplace
5%
Publisher
42%
Wholesale
42%

15. verbasoftware.com(415) 738-2374VERBASOFTWARE.COM (415)
VBC 2015
25%
Marketplace sourcing
activity increase ($
purchased) 2014 compared
to 2013

16. VERBASOFTWARE.COM (415)
WHEN ARE STORES SOURCING?

17. VERBASOFTWARE.COM (415)
WHERE ARE STORES SOURCING FROM?
Both
40%
ValoreBooks
48%
Half
12%

18. VERBASOFTWARE.COM (415)
WHERE ARE STORES SOURCING FROM?

19. VERBASOFTWARE.COM (415)
WHERE ARE STORES SOURCING FROM?

20. VERBASOFTWARE.COM (415)
WHERE ARE STORES SOURCING FROM?

21. VERBASOFTWARE.COM (415)
WHERE ARE STORES SOURCING FROM?

22. VERBASOFTWARE.COM (415)
ADDITIONAL MARKETPLACES
AVAILABLE IN FULL-SERVICE
SOURCING
THE FUTURE IS NOW…

23. verbasoftware.comVERBASOFTWARE.COM (415)
FULL-SERVICE
VS. SELF-SERVICE

24. verbasoftware.com(415) 738-2374VERBASOFTWARE.COM (415)
VBC 2015
53%
Percent of total dollars
sourced using Full-
Sourcing in 2014

25. VERBASOFTWARE.COM (415)
VERBA TAKES OVER CREDIT LINES
THE FUTURE IS NOW…

26. VERBASOFTWARE.COM (415)
SOURCING TOOL USAGE
‣ Full-Service
‣ Self-Service

27. VERBASOFTWARE.COM (415)
SOURCING TOOL USAGE
‣ Full-Service
‣ Self-Service

28. VERBASOFTWARE.COM (415)
SOURCING TOOL USAGE
‣ Full-Service
‣ Self-Service

29. VERBASOFTWARE.COM (415)
INVOICE BASED ON SHIPMENT/PO
THE FUTURE IS NOW…

30. verbasoftware.comVERBASOFTWARE.COM (415)
COST SAVINGS REALIZED

31. verbasoftware.com(415) 738-2374VERBASOFTWARE.COM (415)
VBC 2015
75%
Percent saved off new retail
for Spring 2015 buying
season

32. verbasoftware.comVERBASOFTWARE.COM (415)
OPEN TO BUY
& WANTLISTING TRENDS

33. verbasoftware.com(415) 738-2374VERBASOFTWARE.COM (415)
VBC 2015
2.4%
Affordable marketplace
offers purchased (under
40% of new retail)
to available offers

34. verbasoftware.com(415) 738-2374VERBASOFTWARE.COM (415)
VBC 2015
16%
Percent purchased vs.
estimated sales

35. verbasoftware.comVERBASOFTWARE.COM (415)
WHEN PROBLEMS ARISE…

36. VERBASOFTWARE.COM (415)
How many of you currently list
inventory on an one online
marketplace?

37. verbasoftware.com(415) 738-2374VERBASOFTWARE.COM (415)
VBC 2015
4%
Percent of items ordered
that were refunded due to
seller cancellations and/or
not received within the
expected timeframe

38. verbasoftware.com(415) 738-2374VERBASOFTWARE.COM (415)
VBC 2015
< 1%
Percent of items reported as
discrepancies by stores
during receiving process

39. verbasoftware.com(415) 738-2374VERBASOFTWARE.COM (415)
VBC 2015
< 1%
Percent of items rejected
during quality check

40. VERBASOFTWARE.COM (415)
ALL UNITS WILL HAVE “290” USED
STICKERS
THE FUTURE IS NOW…

41. VERBASOFTWARE.COM (415)
GUIDED ROUNDTABLE DISCUSSION
PART III

42. VERBASOFTWARE.COM (415)
LET’S TALK ACCOUNTING!
What is the ideal invoicing
process for sourcing?

43. VERBASOFTWARE.COM (415)
LET’S TALK PURCHASING!
When are you wantlisting &
sourcing?

44. VERBASOFTWARE.COM (415)
LET’S TALK PURCHASING!
How do you wantlist?

45. VERBASOFTWARE.COM (415)
LET’S TALK PURCHASING!
How do you determine what
is a “good deal”?

46. VERBASOFTWARE.COM (415)
LET’S TALK PO MANAGEMENT!
How do you use the Verba
Sourcing tools to build/
maintain purchase orders?

47. VERBASOFTWARE.COM (415)
LET’S TALK RECEIVING!
What logistical issues do
you run into during the
receiving process?

48. VERBASOFTWARE.COM (415)
LET’S TALK BEST PRACTICES!
From your experience, what
are some of our competitors
doing that you we wish we
would?

49. VERBASOFTWARE.COM (415)
LET’S TALK BEST PRACTICES!
Share one thing you have
discovered during the
sourcing process that
increased success.

50. VERBASOFTWARE.COM (415)
LET’S TALK RECEIVING!
What do you consider
damaged/defective?

51. VERBASOFTWARE.COM (415)
LET’S TALK RECEIVING!
How do you handle
discrepancies?

52. VERBASOFTWARE.COM (415)
LET’S TALK RECEIVING!
Thoughts on old editions?

53. VERBASOFTWARE.COM (415)
LET’S TALK OVERSTOCK!
Has sourcing impacted non-
returnable inventory carry
over?

54. VERBASOFTWARE.COM (415)verbasoftware.comVERBASOFTWARE.COM (415)
QUESTIONS?
Marissa Djafroodi
marissa.djafroodi@verbasoftware.com