Welcome to...

1. Welcome to... INSTALLING ECRx: The Nuts and Bolts of Implementation

2. Moderator: Bryan Stewart - IBM Canada Panelists: Nigel Wood - ECCC Michael Stecher - Apotex Elaine Zablotny - Shoppers Drug Mart Trevor Crawford - Procter & Gamble

3. Industry Background Nigel Wood, ECCC

4. Industry sponsored initiative to address supply chain issues relative to Prescription Drugs, Over the Counter Drugs and Cosmetics

5. DB Synchronization CRP DSD Billing Creating An Efficient Supply Chain Fulfillment Shipment SUPPLIER BUYER Payment

6. Structure

7. Altimed Apotex ECCC Group Jean Coutu IBM Canada London Drugs MEDIS Merck Frosst Novapharm Procter & Gamble Shoppers Drug Mart Wal-Mart Wyeth Ayerst Participating Companies

8. Industry Sponsorship Creates Momentum • ECR Efficient Consumer Response in Food and Drug Retail • EFR Efficient Food Service Response in Food Services • EHCR Efficient Healthcare Consumer Response in Canadian Healthcare • ECRx Efficient Consumer Response in Pharmaceutical

9. Getting Started Michael Stecher, Apotex

10. Agenda • New/Inexperienced Partners • Implementation Scheduling • Communications • Start-Up • Production • F/A’s - Functional Acknowledgements

11. New/Inexperienced Trading Partners (TP’s) • Find experience outside the organization: • Consulting company • Full service VAN • Experienced TP who will assist • The cost may be higher in the short term but it most likely save trouble and costs in the long term.

12. Implementation Scheduling • Do not fall into the trap of attempting to implement too quickly • Create a reasonable schedule for your expertise and resources • Do not try to bring up a TP too quickly • Do not try to bring up too many TP’s at once

13. Communications • Good communications with your TP will assist in achieving an effective implementation • Most poor implementations/problems can be traced to poor communications • Communications are required on both a business and a technical level.

14. Startup Information • Implementation guide to be used • EDI version to be used • VAN you are using • ID’s you are using • Differences from the implementation guide • Timing/Structure of testing/implementation

15. PO Startup Information • Product Codes • Confirm both TP’s use the same product codes • Create procedures to add/delete product codes • What should happen if the supplier can not recognize the product code used by the customer? • Determine from description? • Cancel line? • Cancel PO?

16. PO Startup Information (cont’d) • Pricing • Are prices to be sent in the EDI? • Create price change procedure • What happens if the PO price does not match supplier price? • Use supplier price? • Use PO price? • Cancel line? • Cancel PO?

17. Implementation and Production • Keep in touch with TP’s as needed • Inform your TP’s when contact people change • Let your TP’s know of any implementation change that could affect them • Tell TP about any transaction problems • Address TP concerns as soon as possible

18. Functional Acknowledgement • Do not assume your TP got a transaction simply because you sent it • Send an FA when you get a transaction • Reconcile the FA’s for your transactions • Check your reconciliation on a regular basis • Contact your TP if an FA is overdue

19. Retailer’s Perspective Elaine Zablotny, Shoppers Drug Mart

20. Agenda • EDI Program • How to have a successful implementation • Implementation Barriers & Challenges • EC Technologies and Drug Retail • What’s Next

21. Top 6 Reasons Top 6 reasons actually given not to do EDI • I can’t hear you I’m in the shower, call back • It’s too expensive • Our consultant is working on it • My wife just had a baby, I’m too busy • I had a liquid lunch and I’m a little confused • I’m working with another retailer because they are going to fine me !

22. EDI Program • Different EDI program for DSD and DC vendors • Currently exchanging PO, ASN, PO Acknowledgement (DSD) documents • Receive 821’s (Bank Statements) for stores • Participating member of ECR committees • Committed to move to VICS 4010

23. Keys for a Successful Implementation • COMMUNICATE • Learn the business process that the EDI document is supporting (EDI is not a technical issue) • UPC code integrity • Don’t fake testing

24. Keys for a Successful Implementation • Maintain EDI as an internal priority • have regular business meetings/commitment from business • EDI technical profile is part of Shoppers Drug Mart/Pharmaprix vendor agreement • Separate tactical from strategic responsibilities

25. Implementation Barriers & Challenges • Pharmaceutical industry behind other industries on UPC codes • COMMUNICATION problems • Vendor does not pick up EDI documents frequently enough. Once a day is not enough. • Vendor sees no value in EDI • Technical problems

26. Implementation Barriers & Challenges • Item files do not match • ordering new product • Receiving small items (ordering singles)

27. EC Technologies and Drug Retail • Do not order narcotics via EDI • Internet solution that allows for narcotics ordering • Shoppers Drug Mart/Pharmaprix is currently conducting EDI through a VAN

28. What’s Next? • Try to keep the implementation momentum through Y2K • Financial EDI • Support of ECR recommendations Y2K INTERNET EDI

29. Manufacturer’s Perspective Trevor Crawford, Procter & Gamble

30. Agenda • Procter & Gamble EDI Program • Best Opportunities • Implementation Challenges • Bringing Success to the Project

31. EDI Truisms • Experience doesn’t come until just after it’s needed • A conclusion is the place where you got tired of thinking • No one is watching until you make a mistake • You never really learn to swear until your first implementation • For every action, there’s an equal and opposite standard

32. Procter & Gamble EDI Program • Full Suite of EDI Transactions - Customer and Supplier • 850, 810, 852, 855, 888, 879, 889, 812, 820 • 940, 846, 944, 947, 204, 214, 850, 810, 856, 888, 879, 889 • Inbound EDI 18 Times/day • Outbound EDI On Demand • Also Used for Intra Company Data Transfer • Participating Member of ECR Committees • Committed to VICS 4010 Migration

33. Don’t Overlook the Best Opportunity... • Refrain from Automating a Paper System that is Flawed • Re-engineer the Business Process • Identify Industry Best Practices and Leverage Investment • H.E. Butt/P&G Case Study-Item Maintenance

34. Implementation Challenges • Interpretation of EDI Standards • Internal Integration + Customer Requirements • DSD is a Different Business • Destination Codes not always DUNS anymore! • Document Volume, UPC Updates, EA vs. CA • Zero Cost Items Example

35. Implementation Challenges (cont’d) • Handling Different Requests from Different Trading Partners (TP’s) • Industry Guidelines, Realistic Evaluation, Seek to Understand • Appearing as One Supplier vs. Many • Pharmaceuticals Integration

36. Bringing Successto the Projects • Company Commitment to ECR • Maintain Established Industry Standards • Always ask “What’s Best for the Industry?” • Strong Relationships with Trading Partners • Integrate, Integrate, Integrate! • Don’t Delay …….. START NOW!

37. Information • General informationhttp://www.eccc.org/ecrx/ • Standards for membershttp://www.eccc.org

38. Questions???