1. Improving Vendor Relations through Optimized Tradeflow Dan Ferrara - HBC Jack Robinson - SPI

2. Retailer -Vendor relationship Industry pain points An approach to automation HBC Vendor Portal initiative Looking ahead Improving the various workflows between a retailer and its trading partners results in a more collaborative environment in addition to financial gains. Agenda

3. About SPI  The Right Retail Partner  15+ years of demonstrated success with blue chip retailers: HBC, Macy’s, Ahold, Belk and many more  Best of both worlds: Global delivery model offering the best value for our clients  Client-focused approach: Tailored to meet the needs and culture of each individual client with a 95% client retention rate  Commitment to offering solutions aimed at reducing costs and improving margins

4. Retailer-Vendor Relationship Deal/Agreement Mgmt Claims Management Vendor Compliance and more…… New Vendor Sign Up Allowances Handling New Item Set Up AP Inquiry Vendor Universe Finance Merchandising Vendor Control Supply Chain Retailer and many more…… Other stakeholders….

5. Industry Pain Points DriversImpact  Hard copy Agreements/Allowances  Claim communication via Email  New vendor setup via Fax/Email  Manual three way matching  Multiple data storage locations  Manual retrieval of data  Item data communicated via Email/Fax  Rekeying of hand written information  Hard copy invoices from vendors  Missing/Incorrect/Duplicate Deals  Transactional disputes & Tension  Delays & Lack of visibility  Erroneous Payments, Auditing costs  Hard to access historic information  No reporting capability  Poor quality of data in the system  Low productivity & High admin cost  Missing data handoffs

6. An approach to automation Administration Workflow Core Modules Client-Specific Modules Claims Management Vendor Set Up Deal Management Allowance Management Content Management A new Module Data Input /Output Layer Reporting Layer  Customizable Platform  Secure 24x7 Global Access  Portal Technology  Simple SaaS Pricing  Hosted Externally/Internally  Integration with ERP systems  Data Retention/Retrieval  Ability to Add New Functionality  Electronic Audit Trail  Role-Based Access  Business-Specific Reporting Key Features

7. About HBC  Canada’s Largest Retailer  With over 600 retail locations and over 50,000 associates located in every province in Canada  HBC operates the Bay, a major department store, Zellers, a mass merchandise format, Home Outfitters, a kitchen, bed and bath specialty store, and value-priced Fields stores  Hudson's Bay Company is the Canadian retail entity of Hudson's Bay Trading Company (HBTC)

8. Where We Started Vendors Finance Buyers Legal Vendor Control  Fielding payment inquiry calls  Responding to requests on past transactions  Issues in getting deals and allowances setup  Challenges with timing of recognizing funds  Delays in getting all the approvals during vendor setup  Issues in storing and tracking all the paperwork  Difficulty in ensuring that all the terms and conditions have been agreed and reflected  Felt like they were dealing with a black-hole and complained of lack of attention  Perceived the relationship as stressful and non participatory

9. HBC Vendor Portal Initiative Vendor Set Up Master Vendor Agreement Special Allowances AP Inquiry Lookup Content Management Key Business Objectives  Enhance visibility and accountability across the procure to pay process  Eliminate leakages in the current manual workflows  Provide self-service features to enhance productivity  Improve the quality of information by storing the right data  Generate meaningful reports that would drive business decisions

10. Development Details Specifications  Web application built using Java and Oracle  Interfaces real time with the AP Processing application (Oracle)  Hosted within HBC firewalls Vendor Setup Agreements Allowances AP Inquiry Content Mgmt

11. Results/Benefits11 Vendors Constructive partnership: Active participant in the procure to pay process Better relationships: Quick identification/resolution of overpayments Access to information: 24x7 access to deals, payment status, forms, etc eDeals: Eliminating the document retention company Timely fund recognition: Better planning and better relationships Increased productivity: Reduction in time taken to set up a new deal Finance Call volume reduction: 30% reduction in basic inquiry type calls Reduced auditing effort: Reduction in certain merchandising claim types Time value of money: Cash in the current year Merchandising Vendor Portal has enabled HBC to put in permanent fixes to issues that cause financial leakages year on year, in addition to fostering a collaborative trading environment

12. Looking Ahead… 1 23 4 5 Vendor Set Up Content Management AP Inquiry Agreements Allowances Claims Handling Vendor Statements Cost Change Notification Sharing of other types of information HBC’s vision is to for the vendor portal to serve as a one-stop shop for all stakeholders involved in the procure to pay process.