1. EBS Update – Store Replenishment in the Future
American Logistics Association – Commissary Roundtable – May 2018
Mr. Robert Comer
Program Executive Officer

2. Agenda EBS Overview – Robert Comer RELEX – Cindy Carlson
System Overview
Commissary Go-Live Preparation
Insights/Analytics
Operational Benefits
Power DAX/IM – Jeremy Jefferson

3. Robert Comer – Program Executive Officer – DeCA
EBS Overview
Robert Comer – Program Executive Officer – DeCA

4. EBS Key Facts
EBS is DeCA’s #1 Business system transformational priority!!!
EBS is the modernization of DeCA’s entire resale business operations including all processes associated with vendor/supplier communication, contracting, cataloging, pricing, promotions, planogramming, ordering, receiving, inventory, customer relationship management, point-of-sale, and financial and warehouse management
EBS will be a fully integrated, grocery-specific, retail business suite based on commercial best practices
EBS will replace over fifteen aging legacy business systems
EBS will be deployed over four separate and distinct phases or increments

5. EBS Incremental Deployment
Increment 1 – Merchandising ( )
Increment 2 – Replenishment ( )
Increment 3 – Sales Channel ( )
Increment 4 – WMS ( )
Power HQ
Purchasing and Vendors
Vendor Portal
Items and Assortments
Pricing and Promotions
Category Analytics
Planogramming
Bill Back Management
Store Portal
Power DAX & Power IM
Inventory Management
Emerald & Retail ONE
Ordering & Receiving
POS
Mobile POS
Transfers, Returns, Adjusts
Self-Checkout
Scales
Power Enterprise Advanced
Forecasts & Optimization
Mobile Shopper
Warehouse Management
Inventory Accounting
eCommerce
Signage
Purchasing & Replenishment
Mobile
Store Manager & Mobile
Transportation Optimization
Loyalty
Campaigns
Dock Scheduling
Promotions & Coupons
Yard Management
Financial Management
Order Management & Billing
P2PE Payment Gateway

6. Store Replenishment in the Future
Customer Journey
Customer Demand
Product Assortment
Customer Convenience
POS
PHQ
RELEX
DAX
Store Centric Technology Providing Operational Efficiencies Leading To An Improved Customer Shopping Experience
Operational Efficiencies
Increase sales by category
Reduce overflow stock
Improve assortment planning
Increase employee productivity
Increase planogram compliance
Reduce days of supply (DOS)
Reduce out of stocks (OOS)
Pain Points
Product availability - Not in Stock
Not enough space for fast moving items
Patrons unable to reach items on top shelf
Assortment specific for the store
Increase amount of salvage and waste
High book inventory
RELEX Store Specific planograms – use the advanced capabilities of the recently implemented RELEX applications to produce store specific planograms that are both inventory and assortment optimized to enhance DAX/IM ordering capabilities.
DAX Optimized Ordering - Allow for predictive decision-making by providing awareness of items that need to be ordered, and full visibility of prior and anticipated inventory levels based on sales performance.
Enhance Receiving - Support FDS, DSDS, and DSD vendors across CONUS and OCONUS locations.
Enable Perpetual Inventory Management - Provide total, centralized and enterprise-wide inventory management
POS – will provide customer with in store, online and mobile shopping capabilities

7. Cindy Carlson – Vice President, Professional Services – RELEX
Optimizing the Store with RELEX
Cindy Carlson – Vice President, Professional Services – RELEX
System Overview
Commissary Go-Live Preparation
Insights/Analytics
Operational Benefits

8. RELEX – DeCA EBS System OverviewFS
Foundation Services
CCM
Customer Centric Merchandising
SOW
Store Operations Workbench
Floor Planning

9. RELEX - Foundation Services
Manage data, integration, and the entire consumer centric journey through clustering, assortment, space, store communications, and analysis.
Master Data – one central data source for every retail channel.
Master integration – seamless & synchronized for all solutions
Workflow Manager – Integrated project management to not just track progress but to drive events
Easily report, structure views, & share information between groups FS
Master Data
Master Integration
Workflow Manager
Content Publication

10. RELEX – Customer Centric Planograms
Strategic & Store specific planograms optimized for inventory, assortment and presentation created and maintained using advanced automation, with unmatched speed and scalability.
Next generation planogramming of any configuration display.
Fuse merchant-centric assortment guidance with supply chain and leverage the industry’s most automated and only optimizing space engine.
Unparalleled business user and technical scalability full planogram lifecycle, with no cumbersome user scripts and action lists.
Generate store planograms that empower stores to easily implement categories and feedback.
CCM
Plan
Automate
Optimize
Analyze & Report

11. RELEX – Store Operations Workbench
Facilitate execution & store collaboration with web-based, on demand, dynamic store & stakeholder publishing featuring structured audit & feedback capabilities.
On-Demand – always up to date and removes the need for time consuming, error prone PDFs
Enable customized views such as new and top product highlights, reports, and profile views.
Direct and receive structured feedback on planograms, existing space allocations, and other vital data, in a concise, actionable format, not hundreds of s.
Share planograms and capture annotations with stores, regional managers, and other stakeholders.
SOW
Design Store Views
Prompts on User Interface
Dynamic Store Views
Store Audit & Feedback

12. RELEX – Floor Planning
Distributing space intelligently between categories and subcategories leads to increased sales and space efficiencies
capabilities.
Providing automation of repetetive tasks
Maintenance of category space
Optimization of store space
Categories, Departments, impact of change forecasting
Reporting insights and analytics
Heat mapping/ Hot Spots
Adjacency calculations
Fixture management
Publishing floor plans
Share floor plans with stores, regional managers, and other stakeholders.
Whole Store
Department
Category
Chicken
Beef
Milk
Yoghurts
Fresh Food
Frozen
Produce
Bakery
Non-Edible Grocery
Beef
Milk
Yoghurts

13. Vendor Collaboration with DeCA

14. Partnering with DeCA to Focus on Continuous Category Management
Set up Plan 1
Review
Align
Design Strategies
Optimize Store Space 3
Drive Space Efficiency
Optimize
Make room for high performing items
End to End category management means the first step is continually fed by the last
Category Role and
Definition
CDTs
New SKUs
Buying Strategy 2
Identify Customer
Customer Habits
Focus
Derive Ranges
Model
Forecast
Insights and Analytics
Define Clusters
Assortment 4 5
Category Performance
Forecast Adjustments
Lessons Learned 9 8 7 6
Agile Replenishment
Implementation
Space Aware Supply Chain
Optimize Planograms
Create Planograms
View/Edit Order Proposals
Update Inventory
Forecasts Adjusted
Set in Store
Feedback
Compliance Measures
Allocations
Shelf Space
Automate / Optimize
Action Defined Strategy
Merchandizing Strategy
National/Cluster/Store

15. Commissary Go-Live Preparation
Enterprise-wide training of DeCA employees on the planogramming solution.
Visited commercial grocers and conducted reviews across numerous grocery chains
Reviewed current planogram compliance and performed analysis of DeCA’s existing replenishment processes
Assessed and provided recommendations to category space allocation and current inventory levels
Assessed and recommended changes to commissary assortment, including product optimization for all categories
Assessed the flow of the store and shopping patterns, and recommended appropriate improvements
Ensured items with high loyalty to patrons remained in set
Published optimized, store-specific plans for all planogrammed categories in each commissary
Produced and reviewed analytics and insights for each commissary based on planogram changes made

16. Understanding Competitors’ Store Flows and Merchandising
A few examples

17. Insights and Analytics by Commissary
Planogram or Product level reports can be used to analyze results, reports can be exported in PDF / Excel with simple to use template files e.g. Space, Movement and Sales

18. Insights and Analytics by Commissary
Analytics produced showing metric variances between original planogram in store versus new, optimized planogram.
PRODUCTS REMOVED FROM ORIGINAL PLANOGRAM
Product code
Product name
Sales vol
Sales $
SAUCE TOMATO BASIL
7.06
$13.6
SAUCE ALFREDO
1.91
$3.8
CHEESE ROMANO
23.58
$54.0
SAUCE RSTD TOMATO
5.83
$12.7
SAUCE RSTD GRLC
5.31
$11.6
SAUCE SWEET MARINARA
8.45
$18.4
SAUCE TRADITIONAL SMALL
5.02
$10.6
SAUCE RSTD ONION
3.41
$7.5
SAUCE WHITE SMALL
3.52
$8.5
SAUCE TRADITIONAL LARGE
4.40
$8.0
SAUCE WHITE LARGE
0.70
$1.1
SAUCE RED
0.27
$0.4
SAUCE ORIG GF
2.85
$10.0
SAUCE MROOM ORIG GF
2.56
$8.9
SAUCE GARLIC ORIG GF
1.85
$5.7

19. Benefits of the RELEX Planogramming Solution
Increase sales from having the right items in the right stores
Reduce out of stocks
Reduce shrink by balancing days of supply and shelf life
Better use of working capital by reducing an abundance of slow moving items
Ability to target local patron’s needs
Ensure items with high loyalty to patrons remain in set
Increase in-store planogram compliance
Enhance customer satisfaction

20. Jeremy Jefferson – Senior Business Analyst – NCR
Maintaining the Store with EBS Increment 2
Jeremy Jefferson – Senior Business Analyst – NCR
System Overview
Commissary Go-Live Preparation
Solution Use Cases (As-Is versus To-Be)
Power Analyzer - Insights/Analytics
Operational Benefits

21. Components of EBS Increment 2
Precision demand forecasting based on sophisticated algorithms
Order optimization with support for numerous replenishment parameters
Centralized automated inventory management
Forecasting Features include: Seasonality, Calendar Events, Promotions, and Forward Buys
Ordering Features include: Scheduling, Safety Stock, Ordering Rules, and Smart Shelf Life
Power DAX
Real time perpetual inventory on all inventory transactions
Supports parallel inventory counts and financial valuation processes
Inventory Features include: Perpetual, Smart Counts, Adjustments, Returns, and Valuation
Receiving Features include: Free, Purchase Orders, ASN/Nex, and Automatic
Power Inventory
Provides corporate insight into dynamic operational and financial information
Utilizes drill down capabilities to measures progress of KPIs over time
Offers timely, accurate data for strategic and operational decision making
Analyzer
Page 2

22. EBS Increment 2 - Data Flow Between Systems
HQ – Item Master
Vendors
Categories
Master Catalog
Store Catalogs
Order Status – Orderable/Non Orderable
DAX – Forecasted Ordering
Automated Order Generation
Item Parameters Master
Inventory Manager – Perpetual Inventory
Real Time Inventory Master
Financial Transactions (Cost, Adjustment, Returns)
Power HQ
Power DAX
Power Inventory 22
Page 3

23. Power DAX Dashboard
Page 14

24. Commissary Go-Live Preparation
Full store scan for parameter validation
Commissary Go-Live Preparation
Provided Headquarters training in March 2018 to DeCA Store Operations team
Provided store-level training for all relevant personnel
Reviewed DeCA’s business needs and processes
Established ordering parameters to meet consumer demand and inventory controls
Performed Balance-on-Hand (BOH) validations
Performed full store scan for parameter validation
Ensured backroom is organized to verify counts as needed
Verified order schedules and order parameters for commissary within DAX
Ensured all required personnel were assigned the necessary user roles and permissions
Supported full deployment of whole-store ordering, receiving, and inventory management
Monitor store personnel to ensure they properly perform the following: Ordering, Receiving, Cycle Counts, Adjustments to min display (as needed), and Adjustments/Returns in Power Inventory.

25. Power DAX and Power Inventory Use Case Solutions
Special Orders
Shipper/Pallet Modules
Accurate BOH
Receiving
DSDS Orders
Calendar and Historical Events
Contingency Orders
Partial Receipt/Zero Out an ASN
Order Forecasting
Special Orders
Current
DAX/IM Solution
Currently there is no way to differentiate a normal order from a special order which results in special orders affecting future forecasting
DAX would consider a special order an outlier so it would not take the special order into consideration when forecasting future orders

26. Power DAX and Power Inventory Use Case Solutions
Shipper/Pallet Modules
Current
DAX/IM Solution
Balance on hand for shippers manually updated
Time consuming
Increases the risk for error in maintaining an accurate inventory
Modules will be fed from HQ to DAX/IM
The contents within the shipper/pallet are known
Once received at store, the contents’ BOH’s automatically update
With an updated BOH, DAX will not order additional product unless there is a demand for it
Maintaining Accurate BOH
Current
DAX/IM Solution
The ability to monitor and hold stores accountable for managing the zero/negatives, NIS BOH validations, and cycle counts is non-existent
Stores may not be completing these validations on a daily basis
Smart counts automatically generates items with potential BOH discrepancies for stores to verify
Frequency and amount of smart counts can be determined at corporate level
Able to view store compliance through DAX Dashboard and reporting

27. Power DAX and Power Inventory Use Case Solutions
Receiving
Current
DAX/IM Solution
Delays in closing pulls creates opportunities for inaccurate BOH’s
Leads to imprecise ordering and out-of-stock conditions
BOH’s will be updated upon acceptance of receipt in the handheld – no longer a need to close pulls
DSD-S Orders
Current
DAX/IM Solution
DSD-S orders are created manually and sent via , fax or a phone call
The orders are not forecasted, which increases a risk of inaccurate orders
Power DAX/IM has the ability to provide recommended orders for DSD-S which will result in more accurate orders, once BOH’s and min displays are entered for DSD-S items
Orders will be sent to electronically to the vendor
No longer a manual process of faxing/ ing/calling in the order

28. Power DAX and Power Inventory Use Case Solutions
Calendar/ Historical Events
Current
DAX/IM Solution
No forecast algorithm related to Store/Area Specific Events:
Weather Related Events
Base Events (troops return from deployment)
Calendar Events are designed to bring the increase or decrease in sales from a past event
Increase demand forecast during event and decrease demand post event
Set at store level
Contingency Order
Current
DAX/IM Solution
Stores place orders based off of previous orders, or order fast moving items only
Results in out of stocks and/or excess stock
Blind ordering
C-move is not being sent to create a forecast
DAX will create forecasted orders for the next 30 orders
The file will be supplied to the distributor electronically
With future processes, the need for contingency orders will be greatly reduced.
No longer require c-move
This eliminates the need for management to create contingency orders every 3 months

29. Power DAX and Power Inventory Use Case Solutions
Partial Receipt/Zeroing Out an ASN
Current
DAX/IM Solution
Time consuming
Susceptible to error due to manual process
Power IM will allow DeCA to accept partial delivery when the remaining order is in transit or is missing
If the remaining POID is rejected or never received, a manager will have the ability to “zero out” the rejected order to allow for the appropriate BOH’s to update, while the BOH’s for the rejected product remains unchanged
Order Forecasting
Current
DAX/IM Solution
Order forecasting depends on c-move
C-move missing periodically
With t-log being fed incrementally throughout the day, order forecasting no longer dependent on c-move
Near real time perpetual inventory updated every 15 mins

30. Power Analyzer – Insights and Analytics
Transforms data into actionable items with its unique drill down capabilities – provides dynamic analysis down to the Store/Product/Day levels.
Provides DeCA with dynamic reporting data and customizable configurations to capture KPI performance and trends, including comparison over time periods.
Analyzer’s dashboard-style business intelligence reporting will help managers easily analyze their commissary’s performance and determine root-causes of inventory and replenishment anomalies within minutes

31. Benefits of Power DAX and Power Inventory
Increase sales from having the right items in-stock
Typical 1%-3.5% sales increase
Reduce out of stocks through algorithms, events, and seasonality
60%-90% improvement in shelf availability
Reduced shrink by balancing days of supply to meet consumer demand
20-30% spoilage reduction
More efficient business model by decreasing back stock
10%-25% reduction of store-level inventory
Ability to be proactive for store specific promotions/events
Enhance customer satisfaction by in stock conditions and fresh perishable product
Focus on Proactive Inventory Management