1. B2B Private eMarketplaces How Manufacturers are Leveraging the Internet to Profitably Build Customer Loyalty Copyright 2000. HAHT Commerce, Inc. All rights reserved.

3. Agenda What are the issues? How do we take advantage of the opportunities?

4. Demand Chain Customer HAHT: Focus on the Customer Back-office Systems Manufacturer Supply Chain Supplier

5. Sell-Side Imperatives for the Internet Age Enhance customer loyalty  Improve customer service  Personalize interactions  Establish and retain branding Reduce the cost of doing business  Minimize non-value-add activities  Data transparency across the demand chain

6. Not All Customers Are Valued Equally Tier 1 Tier 2 Tier 3 Tier 4 CustomersRevenuesCost 1% 10% 24% 65% 50% 40% 7% 3% 5% 30% 45% 20% 1%50%5% 10%40%30% 24%7%45% 65%3%20%

7. Tier 1 Tier 2 Tier 3 Tier 4 CustomersRevenuesCost 1% 10% 24% 65% 50% 40% 7% 3% 5% 30% 45% 20% 1%50%5% 10%40%30% 24%7%45% 65%3%20% Nor Should They Be Treated Equally Grow or Aggregate Improve Customer Service Tighten Demand Chain Reduce Costs Improve Customer Service Enhance Customer Loyalty

8. The Opportunities “One of the most effective ways to retain customers is to embed your products into your customer’s business and procurement processes.” Anonymous

9. What is a “Private e-Marketplace”? “Private”  One “sponsor” (seller) only  By invitation only “e-Marketplace”  Leverages internet technologies  Provides an effective and efficient place to transact business  A place to aggregate new customers, roll-out new products and value-added services

10. The Game Plan The Goal  Establish a private e-marketplace to directly serve existing business customers The Rewards  Extend existing back-office systems  Enhance customer loyalty  Reduce costs  Provide foundation for future expansion  Create outward focus on customer

11. Fosters community, delivers content and transacts business Best opportunity for cost reductions Extends back-office to the Web Establishes infrastructure & culture Establish a Private e-Marketplace Tier 1 Tier 2 Tier 3 Tier 4 CustomersRevenuesCost 1% 10% 24% 65% 50% 40% 7% 3% 5% 30% 45 % 20% 24%7%45%

12. “Justin has a strong history of providing unparalleled customer service. Our new B2B site continues our efforts to remain a leader when serving our dealers. The feedback we are receiving from our dealers is extremely positive: They love it!” Randy Watson President & CEO Justin Brands

13. “The HAHT e-Scenarios integrated quickly with our ERP system. We often find it a challenge to integrate off-the-shelf software with SAP, but HAHT made it easy!” Rush Weston VP Information Technologies Justin Brands

14. Secure log-in Personalized experience Research product catalog Check availability Place order Track order/delivery status Order history Check customer accounts Look at invoice data Initiate service order Private e-Marketplace HAHT Commerce e-Scenarios Tier 3 Customers Web browser Attack High Costs With Self-Service Back-office Systems Manufacturer Customer Service Representative Sales Representative

15. Enrich Functionality and Services Improved service extends to all Tiers immediately Computer-to-computer integration Tier 1 Tier 2 Tier 3 Tier 4 CustomersRevenuesCost 1% 10% 24% 65% 50% 40% 7% 3% 5% 30% 45% 20% 10%40%30%

16. “Processing an Internet order used to take us one and a half times as long as taking a phone order. Now that we’ve implemented HAHT, our operations are streamlined and efficient.” Larry Blazevich CIO Sigma-Aldrich

17. “We now have what it takes to be an Internet powerhouse. HAHT’s cutting edge B2B e-commerce solutions have enabled us to leverage our back-end systems in real time.” Larry Blazevich CIO Sigma-Aldrich

18. Private e-Marketplace Tier 3 Customers Web browser Embed Your Products Into Your Customers’ Business Processes HAHT Links Tier 2 Customers HAHT Partner Links Web XML HAHT Commerce e-Scenarios Back-office Systems Manufacturer Sales Representative CSR

19. Extend Services to All Customer Tiers Full access to self-service functionality Integrate Demand Chain more tightly Sell excess manufacturing capacity Tier 1 Tier 2 Tier 3 Tier 4 CustomersRevenuesCost 1% 10% 24% 65% 50% 40% 7% 3% 5% 30% 45% 20% 1%50%5%

20. “Now, when HP’s customers need a manual, our virtual demand chain processes the customer’s browser- based order seamlessly—without human intervention—across four companies’ back-end systems to initiate production, fulfillment, shipping and payment.” Scott Alexander Director IT U.S. Print

21. “HAHT Commerce has been a great partner for U.S. Print. Last spring, we had to deploy order tracking on the Web to win a major contract with a leading software vendor. HAHT’s prepackaged application got us online in 25 days and we won the business.” Scott Alexander Director IT U.S. Print

22. Sales Representative CSR Tier 3 Customers Web browser Deliver More Value and Convenience to Key Customers Back-office Systems Manufacturer Web XML Tier 2 Customers HAHT Partner Links Web XML HAHT Links HAHT Commerce e-Scenarios Tier 1 & 2 Customers Public e-Marketplaces XML Tier1 Customers EDI Web HAHT Partner Links Private e-Marketplace

23. Analyze relationships with Tier 4 customers Grow business; migrate to Tier 2 or 3 Use Public e-Marketplaces to aggregate small customers; recruit new customers Up or Out: Reduce Costs and/or Increase Revenues Tier 1 Tier 2 Tier 3 Tier 4 CustomersRevenuesCost 1% 10% 24% 65% 50% 40% 7% 3% 5% 30% 45% 20 % 65%3% 20%

24. “By offering Web-based services with HAHT applications, we were able to deliver better service to our smaller customers as we moved them to a lower cost service channel. Now they can order product and check on the status of the order in real time.” Harman Consumer Group

25. “We are a leader in consumer electronics because we know and respect our customers and are determined to harness technology in their service. HAHT was able to help us become a real e-business for our customers in a very short period of time.” Harman Consumer Group

26. Find New Customers Aggregate Small Customers Back-office Systems HAHT Commerce e-Scenarios HAHT Sellside Links Manufacturer Tier 4 Customer New Customer Tier 4 Customer Public e-Marketplaces

27. Help Sellers Become Advocates For Their Buyers Tier 1,2,3,4 Customers Tier 1 Customers New Customers XML or Back-office Systems Manufacturer Tier 2 Customers XML or HAHT Links HAHT Commerce e-Scenarios Tier 1,2,3,4 Customers Web Public e-Marketplaces EDI HAHT Partner Links

28. Global 2000 Customers Through August 2000

29. Technology Partners

30. Implementation Partners

31. Enterprise Partners

32. HAHT Tackles the Opportunities Suite of packaged applications Leverage existing back-office investment/ infrastructure Built on award-winning platform Proven implementation methodology Strategic partnerships (Deloitte Consulting, KPMG, etc.)