UCCnet Educational Series Part 1 Building a Better Bottom Line

INSERT GRAPHIC SQUARE HERE 2 Agenda Why UCCnet? Why eCollaboration? Industry Overview and Impact Who is UCCnet? UCCnet Offerings The Benefits of Using UCCnet –The Case Studies How it Works/Impact UCCnet Community Next Steps

INSERT GRAPHIC SQUARE HERE 3 Why UCCnet? Retailers and manufacturers, distributors, etc., are getting involved in data synchronization efforts –Increase supply chain efficiency –Reduce costs for the industry Support the adoption of eCollaboration by the industry –Implement common data standards of the EAN.UCC System –Subscribe to UCCnet GLOBALregistry™ –Implement UCCnet SYNCengine for item synchronization

INSERT GRAPHIC SQUARE HERE 4 The Industry: UCCnet, UCC, EAN, FMI, GMA, VICS,Transora, WWRE, ECCC, GCI, Wal-Mart, Kraft, Colgate, Wegmans, P&G, Ahold, Microsoft, IBM, SAP, UDEX, etc… 2. Single item registry 3. Item synchronization 4. Collaborative transaction management 5. Collaborative supply chain management 6. Collaborative sales & promotion planning 7. Collaborative insight & product development 1. Common data standards eCollaboration You Why eCollaboration? Source: A.T.Kearney for GMA - FMI Foundation for eCollaboration Provides 10 basis points in benefits ROI in less than 6 months Additional eCollaboration Activities additional basis points of benefits

INSERT GRAPHIC SQUARE HERE 5 Industry Overview Industry leaders agree electronic collaboration is a critical business priority –Industry leaders estimate eliminating inaccurate supply chain information could save the CPG and Retail industries $25-50 billion per year –Almost $1 billion has been invested in enabling the continuous exchange and automation of item information –Electronic collaboration (synchronization) is the first step to other forms of collaboration –The need for a standards-based platform and business process Source: GMA-FMI Trading Partner Alliance

INSERT GRAPHIC SQUARE HERE 6 Who is UCCnet? UCCnet is a not-for-profit, neutral, global, standards-based subsidiary of the Uniform Code Council (UCC). –Provides a common means for many companies and industries to trade and communicate –Lowers the costs of doing business –Simplifies and streamlines business processes –Essential for global commerce

INSERT GRAPHIC SQUARE HERE 7 UCCnet Offerings UCCnet Registers, Validates, and Synchronizes UCC/EAN product and location information for trading partners within industries served by the UCC. –A single vision for registry with industry partnerships. Enables collaborative relationships through standards compliant, internet based technology and business processes

INSERT GRAPHIC SQUARE HERE 8 The Benefits of Using UCCnet Wal–Mart Case Study 98% of the items synchronized were updated Item maintenance that normally took 15 to 30 days went to same day maintenance Recognition of carry over of 30% of de-listed items 5-15% increase in market share for early arrival of new items “We knew there were benefits with UCCnet, we didn’t realize how much more we would find” Source: Randy Salley – Wal-Mart, Retail Systems 2002 Presentation

INSERT GRAPHIC SQUARE HERE 9 Staples Case Study “ UCCnet will have a cross-channel impact” On average 25% of store communications errors are related to product data inaccuracies New item introductions take up more than two and a half resources to follow up and get complete information 25% of item maintenance/week is updates to basic attributes controlled by suppliers: UPC, Model #, Vendor #, Description, Sell UOM, TiHi, Dimensions Item dimensions can differ per distribution center for the same product based on measuring methods

INSERT GRAPHIC SQUARE HERE 10 Estimated Benefits of Using UCCnet: Lowe’s Case Study “Accurate product data and streamlined business processes will allow us to focus more time selling your products ” 44,400 hours in Merchandising activities saved per year 17,543 hours in Payables activities saved per year 5,200 hours in Marketing activities saved per year

INSERT GRAPHIC SQUARE HERE 11 The Benefits of Using UCCnet Procter & Gamble Case Study P&G US saved $2-$5 million in productivity costs by consolidating their databases and centralizing information 10% reduction in shelf out of stocks = $10 million reduction recovery Saved thousand administration hours in rework of information 80% reduction of listing time for new items “We had over 60 databases world wide, and not one had Information correctly listed” Source: Steve David, Procter & Gamble, January industry meeting

INSERT GRAPHIC SQUARE HERE 12 UCCnet – How it Works Manko– Staples– Wal*Mart Example Manko: enters product data into the GLOBALregistry™ Manko: product data validated Product data is ‘registered’ Where product data should be sent is identified Utilizing the SYNCengine: Manko’s product data sent to retailers Staples/Wal*Mart: send response to Manko Product data is ‘sync’d’ GLOBALregistry™ : A single location where standards compliant and location data is registered, identifies the ownership and accuracy of the information is validated. SYNCengine: performs the transactions of sending and receiving validated product information between partners. SYNCengine Manco Wal*MartStaples

INSERT GRAPHIC SQUARE HERE 13 How it Works/Impact Item Maintenance/Item Change/Delete : Item and party (owner of item) information stored in a central location (GTIN/GLN compliant) Electronic delivery of transacting information (public/private) Immediate response for item changes (“intelligent routing”) New Item Electronic delivery of transacting information (public/private) Capability to provide information to the accounts in advance with “release dates Benefits: –Attribute information impacting store operations, merchandising, warehousing, accounting/finance. –Accountability and maintenance of most up-to-date item information available –Real-time search and browse feature of items –Speed to market of products and increased market share due to compliant data –Data Delivery: private or public transmission of information by market group, retailer, or community

INSERT GRAPHIC SQUARE HERE 14 UCCnet Community 1/19/2004 Per month growth of 100 –125 Manufacturers and 2-4 Retailers 2500+Manufacturers 29Retailers 16Industries

INSERT GRAPHIC SQUARE HERE 15 Sampling of UCCnet Subscribers

INSERT GRAPHIC SQUARE HERE 16 Next Steps Subscribe: –On-line –Contact UCCnet at Get educated: You will have access to: –Experienced community members –UCCnet Subscriber Website –UCCnet Online Document Library (eRoom) –UCCnet Help Desk 24/7 support –Educational Web Seminars: Get implemented: Training, Solution Partners