Achieving Operational Excellence: Transform the Supply Chain and Leverage Enabling Technology Achieving Operational Excellence: Transform the Supply Chain and Leverage Enabling Technology

2 Agenda  AAFES Business Case  Retek Modules  Implementation Timeline  Impact to Vendor Partners  Conclusion  AAFES Business Case  Retek Modules  Implementation Timeline  Impact to Vendor Partners  Conclusion Retek Merchandising System

3 AAFES Strategy Map Vision: A Valued Benefit to the Military Community MWR Contributions Customer Value Service Project Lifelong Value & Service Provide a Dividend Creating Success Support Military Operations – C2 Optimize Customer Service – C1 FINANCIAL CUSTOMER INTERNAL LEARNING & GROWTH Transform the Supply Chain – I3 Operational Excellence Promote Corporate Compliance – I4 Organizational Governance Value and Optimize Associates – L1 Leverage Enabling Technology – L2 Maximize Economic Value Added (EVA) – F1 Aggressively Offer New or Differentiated Products and Services – I1 Business Growth Exchange Service Consolidation – I2

4 Why Retek for AAFES?  To improve our competitive position in the retail industry by: Introducing a joint forecasting tool to provide long range planning with suppliers and connectivity to replenishment systems Decreasing the use of multiple replenishment and receiving systems Streamlining purchase and price methods Increasing visibility of data causing inefficiencies throughout the supply chain  To improve our competitive position in the retail industry by: Introducing a joint forecasting tool to provide long range planning with suppliers and connectivity to replenishment systems Decreasing the use of multiple replenishment and receiving systems Streamlining purchase and price methods Increasing visibility of data causing inefficiencies throughout the supply chain

5 Top Retailers Use Retek  NEXCOM  Men’s Warehouse  GAP  Ross Dress for Less  Toys R Us  Walgreens  Kohl’s  Best Buy  NEXCOM  Men’s Warehouse  GAP  Ross Dress for Less  Toys R Us  Walgreens  Kohl’s  Best Buy  Longs Drugs  Nordstrom  Pier 1 Imports  Williams-Sonoma  Barnes & Noble  Family Dollar  Tesco (UK)

6 Retek Modules  Retek Merchandise System (RMS)  Retek Price Management (RPM)  Retek Demand Forecasting (RDF)  Promote  Retek Data Warehouse (RDW)  Sales Audit (ReSA)  Retek Merchandise System (RMS)  Retek Price Management (RPM)  Retek Demand Forecasting (RDF)  Promote  Retek Data Warehouse (RDW)  Sales Audit (ReSA)  Allocation  Inventory Optimization (IO)  Collaborate (CPFR)  Active Retail Intelligence (ARI)  Invoice Matching (IM)  Advanced Inventory Planning (AIP)

7 Retek Functionality At a Glance

8 Implementation Timeline 100% UPC Inventory Go-Live SONDFMAMJJAOND J 2005 SFMAMJJAO J 2006 S 1A1B2 Wave 1B February ‘06 Wave 2 August ‘06 Retek Merchandising System (RMS) Retek Price Management (RPM) Organizational Hierarchy Merchandise Hierarchy Cost Change Management Supplier Price Management Item Initial Price Initial Cost Wave 1A Functionality Delivered AM J J A End CRPBegin CRP

9 How Retek Will Affect You?  Retek will reduce inventory and increase service levels  Retek will help reduce invoicing  Retek will enable AAFES to replenish orders based on facility requirements  Retek will increase purchase order accuracy  Retek will better equip AAFES to develop sales and order forecasts  Retek will reduce inventory and increase service levels  Retek will help reduce invoicing  Retek will enable AAFES to replenish orders based on facility requirements  Retek will increase purchase order accuracy  Retek will better equip AAFES to develop sales and order forecasts

10 Frequently Asked Questions  How can I help with the Retek implementation?  How will the new common ordering platform affect me?  How will AAFES be able to conduct accurate forecasting?  How will Retek affect AAFES’ stock?  How will Retek handle the vendor stock balance process?  Where can I find more information on Retek at AAFES?  How can I help with the Retek implementation?  How will the new common ordering platform affect me?  How will AAFES be able to conduct accurate forecasting?  How will Retek affect AAFES’ stock?  How will Retek handle the vendor stock balance process?  Where can I find more information on Retek at AAFES?

11 Conclusion Still want more….you can us at