How to Use this Slide Deck

1. How to Use this Slide Deck Personalization Any time the word “supplier” is used, think about adding your company name/logo Personalize your goals for the program in slides with a green border, then delete the border

2. Date How to Sell the VMI Program

3. Agenda Agenda What is VMI? Why does a Supplier do VMI? Why is VMI Good for Sales? Why Should a Distributor Join Our Program? Who Makes a Good Partner?

4. What is Vendor Managed Inventory?

5. Vendor Managed Inventoryis the process wherethe supplier generates ordersbased on mutually agreed objectives and demand information sent by the customer.

6. Enhanced Collaboration Better Transportation Utilization Less Rework Increased Efficiency! Improved Product Mix Eliminate Emergencies Clearer Demand Visibility

7. REVIEW Supplier Distributor PRODUCT ACTIVITY Enter your company name in place of “supplier” then delete this bar VMI Process TrueCommerce DATALLIANCE P.O. Acknowledgment PURCHASE ORDER

8. Supported Market Leaders Enter your company Logo in place of “supplier logo” then delete this bar Distributors Manufacturers Distributors Supplier Logo

9. Why VMI?

10. Traditional Replenishment

11. DISTRIBUTOR SALES PUTAWAY EVENTS INVENTORY

12. DISTRIBUTOR SALES PUTAWAY EVENTS INVENTORY ORDERS

13. DISTRIBUTOR SUPPLIER PACKAGE SIZES EVENTS ITEM NUMBERS LEADTIME

14. CUSTOMER STOCK-OUTS poor product mix InefficientTransportation Misaligned Goals EMERGENCYORDERS EXCESSIVE RETURNS Poor visibility of demand OBSOLETE INVENTORY Rework Due to Bad Data

15. DISTRIBUTOR SUPPLIER SALES EVENTS PUTAWAY LEADTIME PACKAGE SIZES EVENTS INVENTORY ITEM NUMBERS RETURNS NEW PRODUCTS

16. DISTRIBUTOR SUPPLIER SALES EVENTS PUTAWAY LEADTIME PACKAGE SIZES EVENTS INVENTORY ITEM NUMBERS RETURNS NEW PRODUCTS BETTERORDERS

17. supplier benefits • Efficient in-stock levels • - scheduled and repetitive ordering, optimized inventory • Demand Visibility • - supply chain insight, reduce return exposure, product life cycle • Customer Support • - wholesaler collaboration, grow market share, differentiate • GROW SALES

18. DISTRIBUTOR SUPPLIER Turns Out of Stocks Returns Order Touches Sales 25% 31% 88% 51% 24% $

19. Supplier Business Goals Grow Sales Decrease Costs Improve Productivity Improve Customer Satisfaction Increase Profitability

20. Sales rep benefits • Easier to Manage Relationship • - scheduled and repetitive ordering, previously agreed upon pricing • Customer Support • - Differentiate, strengthens relationship with key accounts • More Time with Opportunities • - VMI Accounts require less intervention, allowing Sales to focus on more labor intensive opportunities

21. Growing vmi

22. Distributor benefits • Improve inventory turnover • - better cash flow, product mix • Increase availability levels • - wholesaler in-stock to meet demand, reduce stock outs • Collaborative supply chain • - communication, vendor’s commitment to partner goals • SERVICE & SUPPORT

23. Distributor Steps Provide sales history Provide daily product activity Receive PO Acknowledgement Easy Set Up • No Additional Hardware • Minimal IT involvement • No ERP Overhauls • Ongoing Supplier & Datalliance Support

24. “Vendor Managed Inventory is the process where the supplier generates orders based on mutually agreed objectives and demand information sent by the customer.” VMI: “Mutually Agreed” • SPECIFIC OBJECTIVES • Improve in-stock levels • Increase inventory turns • Reduce transaction cost • Grow sales • Better product assortment • DETAILED DISCUSSIONS • DC or branch dist. model • Order frequency • Freight parameters • Pricing / data sync • Returns / new products Align Business Goals - Transparency

25. Typical Engagement process Identify distributor that fits VMI profile Confirm distributor can meet the functionality requirements for VMI Discuss the mutual benefits VMI can provide for this partnership Approach Program Manager for approval and support Hold a kick-off Call with Datalliance

26. Who Makes a Good Partner?

27. VMI Partner PRofile With exception of the first bullet and sub bullet, this is a list of common factors in a VMI Partner Profile. Please edit to match the profile of your organization. Do not change the first bullet and the first sub bullet, these are required for Datalliance VMI. Technical Preferences Minimum Technical Capability Requirements • Provide daily product activity (852), receive PO Acknowledgement (855), provide sales history (52 weeks) • EDI or flat file EDI or e-Commerce Preferred ERP system Strategic Preferences Minimum Sales Threshold Core SKUs Stocked DC or Store replenishment Distributor commitment / trust Fixable issues Growth potential Number of locations Datalliance Partners Preferred!

28. FAQs Enter your company name in place of “supplier” and edit to your important traits then delete this bar Q: I like my Inventory Management System, why should I let Supplier manage my inventory? A: Supplier will not replace your current ERP platform, rather we would supplement your system. We’ll take responsibility for day-to-day ordering and free up your valuable resources to maximize ROI, and provide the value of Supplier expertise and product insight through VMI’s collaborative ordering process. Your ERP system will still see the inventory so you can evaluate at any time just the same as you do today. Q: Is there a cost associated with Supplier’s VMI Program: A: There will be some upfront investment in man hours during set-up as well as the cost of EDI which you pay regardless of VMI. But there are no fees associated with our VMI program. Q: What’s in this for Supplier, why do you want a distributor on VMI? A: Many reasons but the most important are: • Better visibility into channel demand which helps with forecasting and that helps delivery performance. • Visibility into the “health” of our distributors’ inventory. And, do we have the right products on the shelf?

29. questions