ARC Supplier Portal and 
                      Analytics
                                                                    #2
  Agenda
  •  Challenges in supplier collaboration
  •  Opportunities in supplier collaboration
  •  Value proposition
  •  Architecture
  •  SPA benefits
  •  Case study
                                                                    #3
  Challenges of Retailer-Supplier collaboration
           Effective Management of Suppliers & their needs             Real time visibility, complex pricing, promo decisions
            Global CPG       Private Label  Small & Medium                  Visibility      Information     Collaboration
              Majors          Suppliers         Suppliers                                   Exchange
              Outright         Outright         Outright                     Orders,       Sales, Demand     New product 
       CC     Outright         Outright         Outright                     Orders,       Sales, Demand     New product 
       II                                                       SS           Status          forecasts       introductions
       TT                                                       TT           Status          forecasts       introductions
              Vendor                           Scan Based                   tracking
       SS      Vendor                          Scan Based       RR           tracking
       EE     Managed                           Training                                     Inventory    Pricing, Promotions, 
       M      Managed                           Training        OO                           Inventory    Pricing, Promotions, 
       M     Inventory                                          PP         Payments,                          POG, NSO
       OO     Inventory                                         MM          Payments,                         POG, NSO
                                             Concessionaire                Adjustments
       DD                                    Concessionaire     II         Adjustments
                                                                                                          Joint business plan,
                                                                                                          Joint business plan,
                                                                                                               Review
                                                                                                               Review
             Grocery, perishables, apparel, footwear, lifestyle, white 
                           goods, electronics
                              Supplier Systems                                        Retailer Systems
                              Supplier Systems                                        Retailer Systems
                                                                 Phone
                                                                 Phone
                                                                 Email
                              ERP         Warehouse              Email             Merchandise    Warehouse
                                                                  Fax
                                         Management               Fax              Management    Management
                             Orders      Master Data                              Point of sales    Space
                                         Management       Key            Buyers                  Management
                                                          Key            Buyers
                                                        Account 
                                                        Account 
                                                        Manager
                                                        Manager
                             Finance        Trade                                    Finance      Promotions
                                         Promotions
                                                                                                                             #4
 Opportunities in Supplier Collaboration
   •  Improve supply chain efficiency
        –  The biggest opportunity does not lie in demand forecasting alone, but being able to respond to that demand
        –  Supply chain response involves better orchestration of business goals/objectives across people, process, retail 
           specific business practices
        –  Improving supply chain visibility alone does not solve the efficiency problem; you need actionable analytics 
           framework that drives true collaboration
   •  Remove technology barriers
        –  Data is scattered across multiple systems in the retailer and supplier sides; getting a synchronized, integrated and 
           accurate information is key to enabling visibility and collaboration
        –   Information exchange today is quite inefficient; buyers, account managers interact through phone, fax, email and 
           other non-standard methods that constrain higher levels of collaboration
        –  Implementing MDM strategies and GDS standards at source system levels have proved to be challenging, with a 
           long ROI timeframe, involving huge change management
   •  Reduce costs
        –  With current processes, administrative overheads and transaction costs are huge  (transaction costs run up to 7% of 
           a supplier’s sales)
        –  Supplier collaboration benefits have resulted in benefits in the range of 10%-20% of intake costs
   •  Improve OOS
        –  Retailers lose 8% of sales due to OOS at stores on an average
        –  Suppliers lose about 3% of sales due to OOS and lack of visibility at downstream and store/shelf inventory 
           movement
        –  Supply chain visibility and supplier collaboration has a direct impact on balancing OOS levels against inventory 
           carrying costs
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   ARC SPA - Value Proposition 
        Supplier Portal & Analytics promises to 
        Supplier Portal & Analytics promises to 
        OPTIMIZE PROCESSES 
        OPTIMIZE PROCESSES 
        & 
        & 
        ENHANCE PERFORMANCE
        ENHANCE PERFORMANCE
        between retailer & supplier
        between retailer & supplier
    – Automates and ensures complete transparency on all the interactions between supplier & retailer
    – Optimizes the process between supplier & retailer by providing close loop system & process
    – Provide analytical information to enable retailer and supplier with better decision making capabilities
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