1. RETAIL SUPPLY CHAIN CONFERENCE 2015 Title Sponsor Real People. Real Experiences. Real Education. Title Sponsor RETAIL SUPPLY CHAIN CONFERENCE 2015

2. 2015 STATE OF THE RETAIL SUPPLY CHAIN Moderator: BRIAN GIBSON Wilson Family Professor of SCM

3. RETAIL SUPPLY CHAIN CONFERENCE 2015 Mark Holifield EVP Supply Chain & Product Development Bill Hutchinson Chief Supply Chain Officer & Senior Vice President Dave Reiff Senior Vice President Supply Chain West GBU Farrokh Abadi President and COO Merchandise Availability Solutions

4. RETAIL SUPPLY CHAIN CONFERENCE 2015 AGENDA 5 th Annual SRSC Report –Preview of Key Findings Expert Perspectives –Major themes and strategies –Hot topics for 2015 Audience Q&A

5. RETAIL SUPPLY CHAIN CONFERENCE 2015 5 th Annual Study Overview Key Themes –Strategy & investment –Omni-channel delivery –Transportation challenges –Supply chain integration –Five year retrospective / prospective Study Participants Sales > $1 billion94% Omnichannel83% Vice President level88% SCM experience28 yrs. Purpose: Investigate SCM practices that positively impact retailer success

6. RETAIL SUPPLY CHAIN CONFERENCE 2015 PANEL PERSPECTIVES Strategy 2015 Transportation Omnichannel Role Expansion Key issues & drivers Innovative practices Future considerations

7. RETAIL SUPPLY CHAIN CONFERENCE 2015 AUDIENCE POLLING QUESTION What is your company’s 2015 supply chain focus? A.Control supply chain cost B.Enhance customer service C.Support revenue growth D.Balance cost and service E.Something else

8. RETAIL SUPPLY CHAIN CONFERENCE 2015 KEY FINDINGS: STRATEGY “We need capabilities that allow us to be responsive and grow with the customer. It’s a three-legged strategy: support omnichannel, differentiate the experience, and deliver value.”

9. RETAIL SUPPLY CHAIN CONFERENCE 2015 EXPERT VIEWS: STRATEGY As we enter Q2 of 2015… – What’s driving your supply chain strategy? – How are you investing to support these needs?

10. RETAIL SUPPLY CHAIN CONFERENCE 2015 What is the best description of your company? A.Retailer B.Product Manufacturer C.Logistics Service Provider D.Technology Provider E.Something else AUDIENCE POLLING QUESTION

11. RETAIL SUPPLY CHAIN CONFERENCE 2015 What is your primary transportation challenge? A.Trucking capacity shortages B.Increasing cost of service C.Seaport congestion D.Intermodal congestion E.Something else AUDIENCE POLLING QUESTION

12. RETAIL SUPPLY CHAIN CONFERENCE 2015 KEY FINDINGS: TRANSPORTATION “It’s almost a transportation perfect storm. You’ve got new hours of service regulations, driver shortages, equipment shortages, and infrastructure issues. Our ability to move product and grow the economy will be really challenged.”

13. RETAIL SUPPLY CHAIN CONFERENCE 2015 PANEL VIEWS: TRANSPORTATION What are your primary transportation challenges? When the West Coast labor issues are resolved, will the bottlenecks go away? How are you responding to these major issues?

14. RETAIL SUPPLY CHAIN CONFERENCE 2015 AUDIENCE POLLING QUESTION What is the most critical omnichannel capability? A.Cross-channel inventory accuracy B.Ability to ship from anywhere in the network C.Real-time inventory visibility D.Fulfillment cost knowledge E.Shared inventory across the channel

15. RETAIL SUPPLY CHAIN CONFERENCE 2015 KEY FINDINGS: OMNICHANNEL “We believe the best way for us to support omnichannel is to not manage it as a separate business physically, but to try to integrate it with our store fulfillment.”

16. RETAIL SUPPLY CHAIN CONFERENCE 2015 PANEL VIEWS: OMNICHANNEL What are the key fulfillment capabilities and attributes of best-in-class omnichannel retailers? What role does inventory accuracy and visibility play in omnichannel success? How can technology investments enable inventory visibility and best-in-class fulfillment capabilities?

17. RETAIL SUPPLY CHAIN CONFERENCE 2015 AUDIENCE POLLING QUESTION In which area is SCM engagement the highest? A.Demand forecasting B.Store replenishment C.Inventory allocation D.Delivery scheduling E.Something else

18. RETAIL SUPPLY CHAIN CONFERENCE 2015 KEY FINDINGS: CHANGING ROLES “We’ve got to be aligned between how we buy, how we flow goods, and the capability that we have in the physical supply chain to facilitate our fast fashion apparel initiative.”

19. RETAIL SUPPLY CHAIN CONFERENCE 2015 PANEL VIEWS: CHANGING ROLES How are the responsibilities and roles of your supply chain team changing? Why are retailers expanding the roles of supply chain executives to include global sourcing and product development?

20. RETAIL SUPPLY CHAIN CONFERENCE 2015 Audience Polling Question Which question should the panel address? A.How does/can your supply chain facilitate omnichannel profitability? B.Over the next five years, what are the biggest opportunities for your supply chain? C.What supply chain challenges and issues keep you awake at night?

21. RETAIL SUPPLY CHAIN CONFERENCE 2015 AUDIENCE INPUT Questions for our panelists Session feedback Please evaluate the session Research study questions brian.gibson@auburn.edu

22. RETAIL SUPPLY CHAIN CONFERENCE 2015 THANKS TO OUR PANELISTS Mark Holifield EVP Supply Chain & Product Development Bill Hutchinson Chief Supply Chain Officer & Senior Vice President Dave Reiff Senior Vice President, Supply Chain West GBU Farrokh Abadi President and COO Merchandise Availability Solutions

23. RETAIL SUPPLY CHAIN CONFERENCE 2015 RESEARCH TEAM AND PARTNERS Brian Gibson Cliff Defee Rafay Ishfaq SCM Faculty Members Lisa LaBruno Senior Vice President, Retail Operations Carlos Perez Vice President, Global Marketing

24. RETAIL SUPPLY CHAIN CONFERENCE 2015 5 th Annual State of the Retail Supply Chain Report Release Date: March 17, 2015 To download a copy of the study, visit: www.rila.org