1 Rite Aid Collaborative Replenishment Program

2 The Mission of CPFR  The mission of CPFR  is to change the relationship paradigm between trading partners to create a significantly more accurate consumer driven process and information flow that drives “value” generating greater sales, profit and market share.

3 What is Collaboration? It provides a mutual focus on the consumer It provides a mutual focus on the consumer It promotes mutual visibility of consumer demand with product supply It promotes mutual visibility of consumer demand with product supply It’s forming an open business relationship with companies openly sharing information and data to jointly manage the business It’s forming an open business relationship with companies openly sharing information and data to jointly manage the business It’s efficient and effective communication between trading partners that leads to “Execution” It’s efficient and effective communication between trading partners that leads to “Execution” It lays the foundation for an integrated strategy It lays the foundation for an integrated strategy

4 Collaborative Replenishment Program  Rite Aid Goal: Drive more profit and operational efficiencies leveraging the power of collaborative planning  Approach requirements: Common goals, language, and metrics Common goals, language, and metrics Real time access to information with no barriers Real time access to information with no barriers Regular interaction between parties Regular interaction between parties Co-ordinate logistics/operations/transportation strategies Co-ordinate logistics/operations/transportation strategies A B C Collaborative Replenishment

5 A Level – Powered by JDA Marketplace Secured access to Rite Aid replenishment tool Secured access to Rite Aid replenishment tool Collaborate on a SINGLE forecast to drive replenishment Collaborate on a SINGLE forecast to drive replenishment Supplier has access to promotional plans by DC 9 weeks out Supplier has access to promotional plans by DC 9 weeks out Collaborate on promotional forecast Collaborate on promotional forecast Collaborate on Seasonal indexes Collaborate on Seasonal indexes Supplier has order execution rights Supplier has order execution rights Order Projections are shared via a EDI-830 Order Projections are shared via a EDI-830 Collaborate on item life cycle management Collaborate on item life cycle management Monthly scorecard review to discuss collaborative results Monthly scorecard review to discuss collaborative results Collaborative Replenishment Program

6 Rite Aid Corporation with The Gillette Company together were chosen as one of three finalists of the 2005 VICS Collaborative Commerce Achievement Award for Best in VICS CPFR® Implementation. Rite Aid Corporation and the Johnson and Johnson were chosen as the Winner of 2002 VICS Collaborative Commerce Achievement Award for Best in VICS CPFR® Implementation.

7 B Level – Powered by Prescient Secured access to Rite Aid tool Secured access to Rite Aid tool Forecast are shared using EDI-830 transactions Forecast are shared using EDI-830 transactions Forecast comparison via internet with forecast exceptions being reviewed for consensus Forecast comparison via internet with forecast exceptions being reviewed for consensus Consensus forecast are updated and used for ordering and Manufacturing purpose Consensus forecast are updated and used for ordering and Manufacturing purpose Consensus forecast is measured for accuracy Consensus forecast is measured for accuracy Monthly scorecard review of collaborative results Monthly scorecard review of collaborative results Multiple Views – Weekly, Monthly, Historical Multiple Views – Weekly, Monthly, Historical Exception Alerts focus for both partners Exception Alerts focus for both partners Collaborative Replenishment Program

8 Exceptions and Comparisons Collaborative Replenishment Program

9 C Level – Powered by RA Vendor Management Suppliers view Rite Aid’s purchase forecast via the Rite Aid Supplier Portal Suppliers view Rite Aid’s purchase forecast via the Rite Aid Supplier Portal Suppliers have no input into Rite Aid’s Purchase forecast Suppliers have no input into Rite Aid’s Purchase forecast Rite Aid Replenishment Buyers available to discuss forecast Rite Aid Replenishment Buyers available to discuss forecast Collaborative Replenishment Program

10 Collaborative Replenishment Program

11 Rite Aid Results  Over 45% of front-end volume being managed collaboratively  DC to store service level improvements  Reduction in OOS $  Reduced returns  Improved communications Collaborative Replenishment Program