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Global Markets and Supply Chain THE AUSTRALIAN OPPORTUNITY

Global Markets and Supply Chain THE AUSTRALIAN OPPORTUNITY. Mr. Adrian Floate CEO at Appstablishment Software Development. ABOUT THE PRESENTER Who am I and why am I on stage?. Adrian Floate CEO.

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Global Markets and Supply Chain THE AUSTRALIAN OPPORTUNITY

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  1. Global Markets and Supply ChainTHE AUSTRALIAN OPPORTUNITY Mr. Adrian Floate CEO at Appstablishment Software Development

  2. ABOUT THEPRESENTERWho am I and why am I on stage? Adrian Floate CEO Adrian has worked in the supply chain system development since 1997 and has experience in manufacturing, wholesale distribution, retail and eCommerce.  Adrian’s career highlights include designing and developing the Bunnings BITS system EDI over IP network, the development and commercialisation of Australia’s first SET payments gateway, the commercialisation of a Windows Mobile based email platform that pre-dated the Blackberry designing the CAPlink EDI network for the automotive industry in conjunction with the Capricorn Society, co-founding the CLANG online car service portal and in more recent times leading the Appstablishment software team to create award winning mobile App’s for business collaboration.  2

  3. THE TRADITIONAL VALUE CHAINAnd why it is changing MANUFACTURE The producer of goods. END USER User or consumer of goods. WHOLESALE Warehousesbulkgoods for sale to specificregion or location. RETAIL Presentsindividual items for sale to end users. 3

  4. a lot in common All these organisations have one thing 4

  5. They all disrupted the value chain… 5

  6. Whatisdrivingchange? The internet has changed how we communicate The Internet eCommerce EDI Transport Evolution Mobile Computing The birth of the Multi-sided business model. Paperless business where every player in the value chain collaborates in a digital environment. 6

  7. THE BOOM OF Connecting Chinese Consumers to Authentic Goods via eCommerce 69% $18.5Bin revenue with average value of $60 3rdbiggest internet company in the world. 77% 62% Quality, authenticity, service Finished products not raw materials 1M 100M 3days 6th Transactions processed per day. Customers utilise the platform. Paddock to plate. Australia is a sourcing target . 7 Facts and figures originate from Dr. KlasHjort’s research team

  8. How do getready for theeRevolution? Business has to evolve to ride the eWave 3 GET RESOURCEFUL To support the business models of tomorrow, you have to do more with less. 1 THINK CLOUD Get your business ready to transact in the cloud. You can ramp up with less capital. 4 E-TRANSACTION When you collaborate with your trading partners, you can reduce cost, errors and your business risk. 2 COLLABORATE Start seeing your customers and suppliers as a resource with whom you share a business opportunity. 8

  9. RETURNSBOOMe-Commerce growth, legislative change, the necessary evil 9

  10. RETURNS COST BREAKDOWNMaterial replacement is > 5% of the return costs so where is the money being spent? 10% 45% 38% 2% CUSTOMER SERVICE ~$0.33/item returned ADMINISTRATION ~$0.03/item returned TRANSPORT ~$1.47/item returned WAREHOUSE ~$1.24/item returned Handling the re-pick, pack and ship of the order. Processing the credit and recharge cycle through the business systems. Reverse logistics, manufacturer returns. Capturing and approving the claim inthe call center. 10 Facts and figures originate from Dr. KlasHjort’s research team

  11. SWOTANALYSISBunburytomorrow… Bunbury is at the heart of the South West, is a hub that is little known across the world but that can change very quickly with execution of vision for this community to drive Australian produce into Asia. • STRENGTHS • Proximity to Port and Margaret River brand • Abundant Natural resources • Strong leadership that is looking to the future • Virtually Pollution Free • Excellent Road Transport • WEAKNESSES • Expertise within labour force • Technical capabilities of business operators • Access to Capital • Poor internet infrastructure and adoption S W • OPPORTUNITIES • Aquaculture • Fresh Produce Export • eCommerce into Asia • New produce based manufacturing • Green Technology • Cold Logistics • THREATS • Water scarcity • Salinity • Failure to collaborate across the wider South West • Slow adoption of change T O 11

  12. Build for tomorrows Customers…. 27 Oxford Close, Leederville WA 6027, Australia Adrian.Floate@appstablishment.com Appstablishment @Appstablishment www.appstablishment.com

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