Wholesaler / Vendor Consumer Station Distribution Center Manufacturer WEBVAN.COM (NASDAQ: WBVN) The Last Mile of E-Commerce

Wholesaler / Vendor Consumer Station Distribution Center Manufacturer FAST FACTS Operations first began in San Francisco in 1999 Now open for business in Chicago, San Francisco, Sacramento, and Atlanta Atlanta Specifics Operations began in Atlanta May 2000 Employs over 600 individuals Competition includes Kozmo, Peapod, and Streamline

Wholesaler / Vendor Consumer Station Distribution Center Manufacturer WEBVAN BUSINESS MODEL The “Last Mile” of e-commerce A more convenient, efficient, and cost-effective way to get products to consumers What everyone really wants to know: Is it a proven model?

Wholesaler / Vendor Consumer Station Distribution Center Manufacturer PRESSROOM New business means constant change… “Webvan.com Gives Customers Added Value with Ashford.com Partnership” “Webvan Unveils New Redesigned Webstore, New Logo, and Branding Strategy” “Webvan and HomeGrocer Agree to Merge”

Wholesaler / Vendor Consumer Station Distribution Center Manufacturer SUPPLY CHAIN Business lies between wholesaler or vendor and consumer Food and Merchandise (the product) flows “down” supply chain to end consumer Customer data (order information) flows “up” supply chain to Distribution Center Manufacturer / Wholesaler relationship is independent of Webvan operations

Wholesaler / Vendor Consumer Station Distribution Center Manufacturer WEBSTORE Order is relayed electronically to distribution center for processing Placed order triggers product flow down supply chain Order initiated by consumer on-line Consumer selects delivery window, compiles product list, and submits order

Wholesaler / Vendor Consumer Station Distribution Center Manufacturer STOCKING UP Forecasts by Exponential Smoothing Demand history in San Francisco Vast amounts of customer “hit” data “Special Times” - e.g. Thanksgiving - how do they do it? Aggregate forecasts are drilled down to product level Electronic Data Interchange (EDI) Purchase Orders automatically submitted electronically to most wholesalers / vendors when nearing reorder point

Wholesaler / Vendor Consumer Station Distribution Center Manufacturer WHOLESALER Wholesaler establishes product line from multiple manufactures (Webvan has little control over this relationship) Supply Breakdown: 80% of sales volume handled by Fleming (NYSE: FLM) Wholesales 20% of sales volume supplied vendor-direct Aggregate product list at wholesaler includes: Milk/Dairy, Meats, Poultry, General Wholesale, Beverage, Produce, Baked Goods

Wholesaler / Vendor Consumer Station Distribution Center Manufacturer RECEIVING Product shipment cost “paid by supplier” Incoming shipments arrive in vendor vans, semi- trucks, or independent carriers to one of 18 loading docks Most wholesalers / vendors have standing delivery times on a daily or weekly basis

Wholesaler / Vendor Consumer Station Distribution Center Manufacturer Atlanta Distribution Center (DC) Location: Suwanee, GA Peak hours of operation: 12 am-6 am (order packing) Facility Size: 350,000 sq. ft. Interesting Details: - 50,000+ SKU’s - Facility is the equivalent of “standard”grocery stores in volume (sales dollars) DISTRIBUTION CENTER

Wholesaler / Vendor Consumer Station Distribution Center Manufacturer Operational Details: Automated order processing system Approximately 4.5 miles of conveyor Barcode scanning system for tote routing Tote Identification: Yellow- Dry Goods Green- Chilled Goods Blue- Frozen Goods DC (continued…)

Wholesaler / Vendor Consumer Station Distribution Center Manufacturer MOVEMENT TO STATIONS 9 stations serving Metro Atlanta Alpharetta Atlanta (Airport) Atlanta (Downtown) Marietta Norcross Roswell Suwanee (also DC) Tucker Woodstock

Wholesaler / Vendor Consumer Station Distribution Center Manufacturer Each Station is within hrs of DC Products travel securely in refrigerated semi-trucks Standing delivery times to station result in LTL shipments when demand is low MOVEMENT TO STATIONS

Wholesaler / Vendor Consumer Station Distribution Center Manufacturer STATIONS Pull system (JIT) No inventory stored in totes Products packed to order Totes transferred from large semi-trucks to small courier vans Peak hours of operation: 5-7am and 1-3pm Chattahoochee Station Floor Plan

Wholesaler / Vendor Consumer Station Distribution Center Manufacturer FINAL DELIVERY courier vans service each station covering square miles total Deliveries scheduled from 7-2pm and 3-10pm Optimized route printouts assigned to each courier Courier van has a refrigerated section Labor costs = 40% of total transportation costs

Wholesaler / Vendor Consumer Station Distribution Center Manufacturer IN-HOME SERVICE 1st time customers receive Webvan introduction and promotional incentives Credit Card Transaction device built into handheld Palm Pilot

Wholesaler / Vendor Consumer Station Distribution Center Manufacturer