1 Minnesota State Lottery NASPL World Meet Conference Optimizing Retailer Visits

2 Utilizing Your Resources

3 Operational Coding Customized coding applicable to each retailer’s specific circumstances are utilized to establish initial reorder parameters. Coding will be used through the life of a game to ensure allocation, back-up pack criteria, replenishment needs, scheduling features, and reorder status for retailers.

4 Ticket Allocation

5 Allocation Criteria The system will use the retailer’s sales history from comparable games and generate an order based on their sales. We are using the sales history from one to three games to generate an average of sales for a price point. A reference table is available to update game selection. The system will use the customized retailer coding to ensure that retailers receive the minimum pack amounts to fill their dispensers plus additional back-up packs based on their 26-week average sales history. The number of back-up packs to be issued varies by 26- week average and operational coding values. We also have a feature that will be a final overriding factor for accounts reading exceptions.

6 Automatic Reorder

7 Reorder Initial Set-up of Reorder Parameters by Game for Retailers – The initial set-up of reorder parameters is based on allocation quantities issued to the retailer and operational values. The system also utilizes the 26- weekly average and provides additional back-up packs as needed. Note: Reorder parameters may vary by games (i.e. If a retailer sells more of the $5 ticket, levels may be higher.)

8 Operational System Fixed parameters are used for the games specifically driven based on Retailer’s Operational setting and coding level = minimum packs needed and then additional back-up packs (if applicable) based on 26- week average.

9 Sales Prediction System Just in time ordering. The system will predict inventory needs based on individual retailer’s sales for each game. Retailers specific. Game specific. Pack specific. Capability to adjust sales level by game, price point and/or Retailer specific.

10 Manual Orders Orders may be placed manually by Games Control Reps. Most commonly, orders are placed using this method if it appears that inventory may be running low, in anticipation of high sales period or upcoming playday.

11 Additional ticket orders If a retailer requires an order for a particular game, the system will review levels and settings for all games and order quantities to bring the retailer up to maximum levels and/or projection timelines.

12 Automatic Turn - off of Games All Retailers are coded with dispenser specific information. This coding allows the system to determine which games the Retailer is required to sell and which may be returned. When a Retailer returns games, the system shuts off reorder of that game.

13 Automatic Reporting & Monitoring Various reports and MA16 screen are reviewed daily to monitor Retailer activity.

14 Goals Achieved Contribute to increased sales. Resolve under/over stock issues. Allow our Sales Reps to focus on sales and marketing strategies.

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