IMPLEMENTING EDI VERSION 4010 AN OVERVIEW

Agenda The Argument For An Industry Solution What Is VICS 4010? How Do I Implement 4010 With My Trading Partners? Roundtable Discussion

Today’s Business Climate Rapidly Changing Consumer PreferencesRapidly Changing Consumer Preferences Relentless Focus On Expense Reduction Relentless Focus On Expense Reduction Disappearing Demarcation Between Disappearing Demarcation Between Distribution Channels Distribution Channels Hyper-Aggressive Competition Hyper-Aggressive Competition … Tell Me Something I Don’t Already Know! Already Know!

An Industry Solution A Vision Of A Common Approach To Common ProblemsA Vision Of A Common Approach To Common Problems Greatest Opportunities In The Area Of Supply Greatest Opportunities In The Area Of Supply ChainManagement Chain Management

Supply Chain Vision To reduce total Supply Chain inefficiency and costs by utilizing and supporting technology enablers on all major transactions. To reduce total Supply Chain inefficiency and costs by utilizing and supporting technology enablers on all major transactions.

Supply Chain Vision (Cont’d.) The overall outcome is the right product, in the right place, at the right time, resulting in: The overall outcome is the right product, in the right place, at the right time, resulting in: — Higher Customer Service Levels — Reduced inventory — Increased Distribution, Transportation and Manufacturing Efficiencies Manufacturing Efficiencies

Industry Enablers The Industry Must Achieve Critical Mass Using Key Enablers: The Industry Must Achieve Critical Mass Using Key Enablers: — UPC Numbers On All Products — Bar Codes For Rapid Identification (Package, Case, Pallet) (Package, Case, Pallet) — Integrated EDI

Common EDI Architecture For The Food & Drug Industry Transaction SetsTransaction Sets –Standards –Industry Guidelines –Version

Common EDI Architecture For Food & Drug Retail (Contd.) Transaction SetsTransaction Sets –Standard - X12 Standard –Industry Guideline - VICS Implementation Guideline –Version - Version 4010

Alignment With North American EDI Standards X12 Standard VICS Guideline Canadian Food & Drug

Why VICS 4010? Depth Of FunctionalityDepth Of Functionality Large Install Base In General Merchandise Large Install Base In General Merchandise Likely Migration Point For Other Industry Sectors Likely Migration Point For Other Industry Sectors Version 4010 Is Y2K - Compliant Version 4010 Is Y2K - Compliant

Canadian Food & Drug Retail EDI Transaction Sets Purchase Order (850)Purchase Order (850) Purchase Order Acknowledgement (855)Purchase Order Acknowledgement (855) Invoice (810)Invoice (810) Ship/Notice Manifest (856)Ship/Notice Manifest (856) Product/Sales Activity (852)Product/Sales Activity (852) Direct Store Delivery Summary (882)Direct Store Delivery Summary (882)

How Do I Implement 4010?

EDI 4010 Implementation Checklist PlanningPlanning –Identify/Determine Trading Partner Requirements –Internal Education & Communication Strategy –Contact 3rd Party Service Providers –Assess Application Impact

Systems & Procedures UpgradeSystems & Procedures Upgrade –Integrate With Y2K Activities –Install/Upgrade Translation and Network Software –Internal & External Certification EDI 4010 Implementation Checklist

Production RolloutProduction Rollout –Data Cleanup, Data Conversion –Pilot With Initial Trading Partner –Rollout By Trading Partner

Where To Get More Information Electronic Commerce Council Of Canada 885 Don Mills Rd. Suite 301 Don Mills, Ontario M3C 1V9 (416) or or Visit the ECCC “Knowledge Network”

Roundtable Discussion Participants Renato Asrubolini - National Grocers Rich Emrich- J.M. Schneider Pete Hendel- Procter & Gamble