1. September 24, 1998 Presented by: Dave Morton, President & CEO, The Quaker Oats Company of Canada Limited Company of Canada Limited Nick Jennery, President & CEO, CCGD. Barcoding and EDI Implementation

2. Canadian Barcode Initiative oSelling Unit oCase oPallet

3. Canadian Selling Unit Barcode Initiative Progress strong with accuracy 99%+Progress strong with accuracy 99%+ Validation procedures in place Validation procedures in place Driving efficiency in Canadian IndustryDriving efficiency in Canadian Industry

4. Current Situation Required to drive efficienciesRequired to drive efficiencies –Warehouse receiving –Warehouse picking accuracy –D.S.D. receiving Canadian Standard case bar code one sideCanadian Standard case bar code one side Some distributors live - others investingSome distributors live - others investing Industry agreed Compliance Date September 98Industry agreed Compliance Date September 98 Canadian Case Barcode Initiative

5. Current Issues May survey - 60% cases with bar codesMay survey - 60% cases with bar codes Efficiency require critical massEfficiency require critical mass Some suppliers hesitate to investSome suppliers hesitate to invest Quality/Accuracy an ongoing challengeQuality/Accuracy an ongoing challenge Canadian Case Barcode Initiative

6. Next Steps Grace period established to January, 1999Grace period established to January, 1999 “All Distributors will take the action required to ensure compliance to the January 1999 deadlines”“All Distributors will take the action required to ensure compliance to the January 1999 deadlines” Cost recovery a real possibilityCost recovery a real possibility Canadian Case Barcode Initiative

7. Canadian Pallet License Plate/ASN Initiative Part of Canadian Supply Chain Vision Supports efficient distribution/receiving/warehousingSupports efficient distribution/receiving/warehousing Each pallet “Bar Coded” with license plateEach pallet “Bar Coded” with license plate Supported by Advanced Ship Notice TransactionSupported by Advanced Ship Notice Transaction

8. Canadian Industry EDI Overview EDI A Key Enabler To Overall Supply Chain Cost ReductionEDI A Key Enabler To Overall Supply Chain Cost Reduction — Provides accurate and timely information — Reduces manual effort — Eliminates many errors — Supports many ECR initiatives

9. Current Status Canadian Industry Progress - UnsatisfactoryCanadian Industry Progress - Unsatisfactory –Limited to P.O. and Invoices –Advanced practitioners few - little benefit Key Industry Issue - Critical MassKey Industry Issue - Critical Mass –Broad EDI transaction base –Wide partner usage Canadian Industry EDI Overview

10. Barrier to Development Benefits unique/tough to quantifyBenefits unique/tough to quantify Large - long-term investmentLarge - long-term investment Competing corporate priorities - Year 2000Competing corporate priorities - Year 2000 Multiple versions - Labour intensiveMultiple versions - Labour intensive Overall - Lack of future visionOverall - Lack of future vision Canadian Industry EDI Overview

11. Key Initiatives 1) Industry Adoption VIC’s 4010 –Year 2000 capable –General merchandising standard –Canadian Industry Implementation Guide –Broad Industry endorsement May 1999 Conversion Deadline Canadian Industry EDI Overview

12. ECR Canadian Grocery Industry Migration Schedule to EDI VICS-4010 Standard Latest Scheduled Date Is To Be May 1999 Culinar Inc. Coca-Cola Ltd. FBI Brands Ltd. Kraft Canada Inc.Parmalat Canada Ltd. Pepsi-Cola Canada Ltd Proctor & GambleInc.The Quaker Oats Co. of Cda. Ltd.Unilever Cda. Ltd. Canada Safeway Ltd. Co-op Atlantic Federated Co-operators Ltd. Great A&P Co. Canada Ltd. Loblaw Companies Ltd. Metro-Richelieu Inc. Overwaitea Food Group Provigo Inc. Sobeys Inc. The Oshawa Group Ltd. Thrifty Foods Indicate in the appropriate box the planned date for moving to the EDI-4010 standard for each trading partner

13. Key Initiatives 2) Industry Adoption - Supply Chain Vision –Covers 4 major Supply Chain processes Data AlignmentData Alignment Efficient ReplenishmentEfficient Replenishment Physical Distribution/WarehousingPhysical Distribution/Warehousing Financial ReconciliationFinancial Reconciliation –Specific EDI transactions/timing Canadian Industry EDI Overview

14. Summary Major financial benefitsMajor financial benefits Execution of implementation plan criticalExecution of implementation plan critical Canadian Industry EDI Overview