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Implement commercial industry best practices to optimize operations & service member benefits Implement a COTS solution that can be easily and cost-effectively maintained over the long-term Adopt and implement common processes and procedures across CONUS and OCONUS locations – eliminating the “exceptions” and “out of process” activities Eliminate manual processes and “stovepipes” Provide maximum flexibility (with minimal cost and disruption) to keep up with commercial industry advancements 2

EBS Solution Overview 3 Increment 1 Contracting Cataloging Pricing Promotions Planogramming Vendor Portal Increment 2 Ordering Receiving (DSD and non- DSD) Inventory Management Hand Held Applications Increment 3 Omni-Channel POS Customer Relationship Management (CRM) Financial Information Management (FIM) Loss Prevention (LP) Increment 4 Warehouse Management Hand Held Applications Power HQ Purchasing and Vendors Vendor Portal Items and Assortments Pricing and Promotions Planogramming R10 Store, Retail One, and Power+ Op. Financials Cat. Analyzer & Bill Backs JRS Loyalty Campaigns Promotions and Coupons CustomersPersonal. Financial Info Mgmt (FIM) Power Enterprise Advanced (Power+) Interface - Scales Power IM and Power DAX Forecasting / Optimization Inventory Accounting Inventory Management Transfers, Returns, Adjusts Mobile Ordering and Receiving Purchasing / Warehouse Replenishment Warehouse Management Dock Scheduling Transportation Optimiz. Yard Management Order Management and Billing (OMB) Mob. Shopper eCommerce POS Kiosks Mobile POS SCO Scales Self Scan Store Manager and Mobile RTI Labels

Where we’re going …from a business perspective 4 Valid data? Agreement approved? Vendor data Item data Costs Adjustments Prices Promotions Scale Management (Invatron) Agreements Bill Backs Lump Sums Deal items Locations Price Changes View Reports Inventory Support Power HQ Vendor Portal Power HQ Category Analyzer Store Portal VendorStores POS Shelf Tags Scales Bill Back Manager HQ import Corporate Headquarters Sales Regular Manager Special EDI

JanFebMarApr Ma y JunJulAugSepOctNovDecJanFebMarApr Ma y JunJulAugSepOct Vendor Training COOP 2 2 DT&E1 2 2 Increment 1 – Schedule Baseline DT&E1 5 Solution Discovery Data Conversion Install and Configure DeCA Test Lab Kick Off Strategy Power HQ Build/Configure Power HQ Design CDR Planogram Build / Configure Planogram Design ST&E ATO Optimize Install and Configure NCR Test Lab Install and Configure DeCA Data Centers Interface Build/Configure Interface Design Increment 1 Training FOC & FD DT&E1 CA Build/Configure TRR PRR & LDD PRR & FDD DT&E1 CA Design Invatron Build/Configure Vendor Portal, Power HQ Contracting & BBM Build/Configure Invatron Design Vendor Portal & BBM Design Interface Discovery CA Legend IOC IBR

Key Topics Vendor Portal Onboarding Business model diversity Roles and Responsibilities Communication Training Requirements FAQ’s Participants Manufacturers Brokers Selling brokers Direct Store Delivery (DSD) vendors Service Contractors Supply Contractors A total of 20 Industry Partners Matrix /Criteria Used Contract Vehicles Supply Chain Models Business Size Store Support levels in CONUS and OCONUS Cross Representation across all categories Overall Findings The strategy to use SAM data for the Vendor Portal onboarding process will work as planned Industry will be able to adapt to the Vendor Portal roles and permissions with minimal impact to their Organizational structure at a Sales Level. 218 Industry questions captured during the sessions 100% positive feedback from Industry Industry Discovery Sessions

Contracting 99% of the vendors interviewed were very familiar with SAM and its purpose. None of the vendors interviewed had a problem with taking steps to ensure the Government POC named in SAM matched their authorized contract negotiator. 100% of the vendors had at least one authorized negotiator named in their contract/ROA present at the discovery sessions All of the vendors who maintain only ROAs were open to the possibilities of combining the multiple ROAs into one ROA under the new EBS system. New Item Presentation 100% of the vendors or submit hard copy 40-15s or 40-16s to DeCA’s category managers when presenting new items At least 90% of the vendors come to DeCA and meet with the category managers to present new items. None of the vendors interviewed demonstrated concerns with submitting new items to the category manager utilizing the vendor portal

Industry Discovery Sessions Recap GDSN 99% of the ROA vendors interviewed were not concerned with GDSN because the manufacturer maintains the responsibility for assigning GLINS One ROA vendor established their own GLIN and publish the information on behalf of the manufacturers who do not have the capability to do so. Industry Discovery Sessions Pricing Impact on the use of the EDI 889 transaction set to support promotional cost was positive. Vendor Systems Interviewed Vendors stated that none of their internal systems would be impacted by EBS during Increment 1

Industry Discovery Sessions Recap Swell Allowance 70% of the ROA vendors interviewed qualify for participation in DeCA’s Swell Allowance Program and have reached an agreement with the category managers regarding the swell percentages. The main topic of discussion centered on when swell would be “turned on” and how that process would work, whether or not industry would have info at the DODAAC and UPC level to reconcile, and if EBS will provide a cross reference swell volume by store. VCM’s 100% of the vendors write paper VCMs. Some of the ROA vendors write VCMs utilizing funds from their company then bill the manufacturer. Industry Discovery Sessions

Finalize FAQ’s from the discovery sessions – Projected date for completion is end of Sep 2015 Release SAM NTT – Projected for Oct 2015 National ALA EBS presentation – Oct 2015 DeCA Industry Day – Nov 2015 Next Steps

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