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Live: Wednesday June 26, 2013 @ 11 am ET Speaker: Lora Cecere, Supply Chain Insights Moderator: Russel Beron, Core

Live: Wednesday June 26, 2013 @ 11 am ET Speaker: Lora Cecere, Supply Chain Insights Moderator: Russel Beron, Core Solutions .

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Live: Wednesday June 26, 2013 @ 11 am ET Speaker: Lora Cecere, Supply Chain Insights Moderator: Russel Beron, Core

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  1. Live: Wednesday June 26, 2013 @ 11 am ET Speaker: Lora Cecere, Supply Chain Insights Moderator: Russel Beron, Core Solutions To find out how Core Solutions' CBX software can help you radically improve Product Lifecycle, Global Sourcing, or Supplier Collaboration, please visit our website at http://www.coresolutions.com

  2. The webinar will run for one hour. • The webinar may be recorded and replayed after the event. • All attendees are muted during the webcast to avoid interruptions. • Questions are encouraged to be submitted via the chat option and will be reviewed and addressed during the session. • We hope you enjoy this webinar! House Rules

  3. How are retailers doing?

  4. Retail is evolving and becoming more complex – channel growth, connected consumer, international growth • Growing trend of global/direct sourcing driven by private labels and need to improve margins • Disconnected workflow – between teams, departments and companies - supported by manual processes and siloes with spreadsheets and emails • Same data are captured by multiple parties inside and outside the organization • People not on the same page. Each person has his own version of the truth Intro: Retail Supply Chain Pains

  5. Key Drivers for Change • Margin Improvements • Operational Efficiency • Trend Responsiveness • Quality & Regulatory Compliance • Channel Integration

  6. Territory Expansion Multi-Channel • Retail Growth Strategies • Enhanced products • Omni channel • New markets • E-commerce • Social media • Store refresh Customer Acquisition • Extended Supply Chain Management • Planning • Development • Sourcing • Order • Quality • Logistics & Finance • Vendor Management Where CORE fits? Increased Profits

  7. We help retailers and brands increase their profits through delivering on-time and on-trend products. Our extended supply chain management solutions help cut lead times, streamline supply chains and grow private label and direct sourcing. At Core Solutions . . .

  8. CBX Extended PLM • Buy Planning • Product Development • Global Sourcing • Global Order • Quality & Compliance • Logistics & Finance • Supplier Management • CBX Supply Chain Collaboration • Order Management • Web-EDI • Compliant Labeling • EDI-to-Fax • Invoice Management • Order-to-Pay • Supply Chain Finance CBX Platform

  9. Clients: Retailers & Brands

  10. Live: Wednesday June 26, 2013 @ 11 am ET Speaker: Lora Cecere, Supply Chain Insights Moderator: Russel Beron, Core Solutions To find out how Core Solutions' CBX software can help you radically improve Product Lifecycle, Global Sourcing, or Supplier Collaboration, please visit our website at http://www.coresolutions.com

  11. Redefining Retail Supply Chain ExcellenceLora Cecere, Founder, Supply Chain Insights

  12. Year-over-Year Growth

  13. Retailers Making Little Progress on Productivity

  14. Source: Supply Chain Index Analysis from Annual Reports 1990-2012 Mean values utilized excluding outlier data E-Commerce is More Productive

  15. Discount Stores TGT 0.06, 40 FRED 0.03, 73 COST 0.03, 3 WMT 0.06, 13 Best Scenario Average (Operating Margin, Cash-to-Cash Cycle) Source: Supply Chain Insights LLC, Corporate Annual Reports 2000-2012 from One Source

  16. Discount Stores Best Scenario COST 0.03, 11.6 WMT 0.06, 7.8 PSMT 0.02, 7.5 TGT 0.06, 6.2 FRED 0.03, 4.0 Average (Operating Margin, Inventory Turns) Source: Supply Chain Insights LLC, Corporate Annual Reports 2000-2012 from One Source

  17. Discount Stores Best Scenario WMT 183, 8.0 COST 887, 11.7 TGT 164, 6.3 FRED 223, 4.1 Average (Revenue per Employee, Inventory Turns) Source: Supply Chain Insights LLC, Corporate Annual Reports 2002-2012 from One Source

  18. Apparel Stores Best Scenario EXPR 0.07, 6.8 BKE 0.16, 4.9 LULU 0.18, 3.8 LTD 0.11, 5.4 JOSB 0.12, 1.2 Average (Operating Margin, Inventory Turns) Source: Supply Chain Insights LLC, Corporate Annual Reports 2000-2012 from One Source

  19. Apparel Stores JOSB 0.12, 236 LULU 0.18, 93 LTD 0.11, 46 EXPR 0.07, 32 BKE 0.16, 59 Best Scenario Average (Operating Margin, Cash-to-Cash Cycle) Source: Supply Chain Insights LLC, Corporate Annual Reports 2000-2012 from One Source

  20. Apparel Stores Best Scenario EXPR 270, 6.6 LULU 139, 4.3 LTD 484, 5.4 BKE 427, 5.0 JOSB 213, 1.2 Average (Revenue per Employee, Inventory Turns) Source: Supply Chain Insights LLC, Corporate Annual Reports 2003-2012 from One Source

  21. Supply Chain Ratios to Market Capitalization Source: Supply Chain Insights LLC #sciwebinar

  22. Identified Industry Metrics Source: Supply Chain Insights LLC #sciwebinar

  23. Mass Retail Equation Mass Retail Industry Equation Ln(market cap) = 10.41 + 52.67(OM) -34.72(WC) - 16.02(ROIC) – 0.09(DPODSO) + 0.02(DOI) Correlation Strength NOTE: Full equation is Ln(market capitalization) = 10.40934 + 52.66784(operating margin) -34.7248(working capital ratio) – 16.0211(return on invested capital) – 0.09183(dpo/dso) + 0.017478(days of inventory). We utilized adjusted which accounts for the occurrence of large p values. Outlier values were defined and excluded as those 5 times larger than IQR. #sciwebinar

  24. Determined Rankings by IndustryMassRetail Industry (2012) #sciwebinar

  25. Channel Proliferation Makes It More Complex

  26. Store Challenges

  27. Supply chain progress matters. Results are more difficult. Supply chain is a complex system requiring trade-offs. Retailers, by and large, have not designed to improve agility and drive cross-channel convergence. Wrap-up

  28. Thank You for joining today! Questions?

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