Ordering, Deals and IM Workshop 25 th January 2006

2. Ordering, Deals and IM Workshop 25th January 2006

3. Agenda • Introduction • Expectations • Requirements Review (UPDATED ORDER) • N59 and N53: Ratio Pack Price and Cost Components • N58: Adding Date to ELC Expenses • N22: Delivery Date and Order Date Costing • N34: Cost View Screen • MRF364: Margin Consistency • MRF365c: Simple Pack Movements and Costing • Bs + Cs • Next Steps

4. Expectations • (1/1) Gather all information required to complete the SAE documentation. • (1/1) Confirm requirements content with estimating team. • (1/1) Discuss at the relevant level of detail in order to cover all of the modifications on the agenda. Time box the requirements if needed. • (1/1) Park issues if the level of detail becomes too deep. • (1/1) Be clear about the business requirements behind the detail in order to explore options. • (1/1) Capture any changes made to the underlying assumptions or modification requests.

5. N59 – Ratio Pack Retail Price • Assumption – Definition of a complex pack is an orderable, non-sellable vendor pack, containing simple packs from the same supplier. • Issue – Business may require multiple supplier complex packs. For the purposes of estimation, the assumption above should hold true. (TESCO) • Assumption – The National Selling Price (Area 2) will be the retail price that is used in the calculation of the complex pack. • Price changes are inherited (from simple pack components) in real-time. • Issue – Should the Complex Price be editable? (AC) Note: Issues resolutions and new issues have been captured in the issues log

6. N53 – Ratio Pack Cost • Assumption – Definition of Ratio Pack Basic Cost is the sum of the Ratio Pack Component Costs. • Issue – Ex Factory expenses are ignored in the roll-up as they do not affect margin (RA to confirm) • Assumption – Multiple Threshold Deals will not exist for simple packs. • Action – There are several solutions to the way that the temporal element of deals at the transaction level are rolled up. Smaller workshop to be organized (AC). • Following the initial roll-up, further changes to the costs on the ratio pack will result in the loss of inheritance from the component simple packs (see example on MRF if clarification is required). Note: Issues resolutions and new issues have been captured in the issues log

7. N58 – Adding Date to ELC Expenses • Change – Only the start date for ELC expenses will be entered on the front end. The end date will default to a system high date (end of calendar). When a new start date is added (for the same expense) this will automatically default to the end date of the original expense.

8. 022 – Delivery Date and Order Date Costing • Action – Business require options and advice on when and how orders valued using the delivery date are updated (i.e. real-time or batch). Best case scenario is that all updates should be real-time but performance and cost implications need to be accounted for. (AC) • Action – Need to understand the implications of amending how a supplier’s orders are costed after the initial creation of supplier (changing tick-box). Infrequent business scenario but if possible should be included in mods. (AC) • Assumption – Expenses and Cash Settlement Discounts will not affect orders costing (handled post receipt). • Change – Costs need to be applied to partially received goods. Options will be estimated as part of the modifications. • Issue – Base interaction with Oracle Financials. (AC) • The revaluation button should be enabled at all times on unapproved orders. • A new query should be displayed on approval to confirm whether a revaluation is required. • Issue – Late deliveries may mean deals and income are missed. (TESCO)

9. N34 – Cost View Screen • Assumption – Although the search facility on the find screen will include TPNB level, this form is only available for the TPND level. • Assumption – The view of fields in primary / supplier currency is a screen option. • Assumption – The costing date defaults to the present day and can be set to any future date (no past modeling allowed). • The valid start and end dates are the min and max transactions dates for the relevant costing date chosen. The included tick boxes should update in line with the costing date as to what is included. The altered tick boxes will be updated when a transaction is modeled (these can all be cleared with the refresh button). • Total Basic Cost, Invoice Cost, Nett Cost, Cash Settlement Discount and Cash Margin are all at the TPND level. • The Unit Price, Margin (Ex VAT) are at the TPNB level. • Change – Distribution Channel and UK/TI Indicator are out of scope for this estimation (these relate to UK – TI integration issues). • Change – VPN will be added to the find screen as another potential search field.

10. N34 – Cost View Screen (cont…) • Change – Only transactions (deals, cost changes) at the TPND level can be edited although all should be displayed (irrespective of level). • Change – ‘Items’ in Worksheet status will be taken to ITEM_SUPP_COUNTRY for cost changes. ‘Item’ in Approved status will be taken to SUPPSKU for cost changes. Items in Submitted status will not be available for view (filtered at the find level). • Change – The Edit/New buttons will only be enabled for approved ‘Items’. • Issue – The selling price displayed needs to include all price promotions in order to fulfill the margin consistency requirement. The zone level pricing is therefore not sufficient for this (as promotions, clearances, etc are created as separate zones). Potential options are the creation of a dummy store where all promotion and clearance zones exist but this causes problems for modeling. Another potential view is to use the above but include options at the TPNC level to model the selling price. • Action - A separate workshop/discussion will be held to collect options for the above issue. (AC) • Assumption – Standard RMS security will be delivered as part of this modification.

11. N364 – Margin Consistency • Assumption – Standard margin for non-promotional goods will include price-down promotions and national clearance events. • All promotions outside RMS and RPM (e.g. employee discounts) will not be included in the margin calculations. • The promotional margin should be displayed in the RPM dialogue on the Item screens and clearance screens. • Assumption – All calculations in the latest version of the MRF are still accurate. • The margin should be calculated on entry of the specific screens in which it is displayed giving the most accurate version of margin at all times. • Change – Supplier preferred pack will not be held as a supplier attribute (foundation workshops). • Assumption – The primary replenishable pack will be used as the preferred supplier / packsize in the calculations (confirm with Guy Davis). • Issue – The changes to the front-end mark-up fields should be included in the internationalization of base and outside the scope of this mod. (AC)

12. 365c – Simple Packs for SU/D Businesses • Assumption – The primary replenishable pack will be used as the preferred supplier / packsize in the calculations. • Assumption – The inventory versions of the mod (receiving, picking, transfers, returns) should have a single switchable indicator in the system options. The cost management elements of the mod should have a separate switchable indicator in the system options. • Change – DSD deliveries are already split to eaches so this does not need to be included. • Assumption – There should never be more eaches in the inventory than the preferred supplier / packsize. • Issue – When transfers are scanned by OCC they should be converted to pack. When located by EAN they should be left in eaches. This requires business confirmation. Note: Issues resolutions and new issues have been captured in the issues log

13. Benefits and Concerns Benefits • Managed to get through all specs in the allotted time. • Good preparation at the right level of detail. • The right people were involved in the discussions. Concerns • Some of the discussions are based around assumptions which may have changed. Their needs to be increased focus on a base version of ORMS and how the assumptions fit into this. • Their seem to be more emerging requirements within some areas. The base solution needs to be ring-fenced against current requirements with clear opportunities to build added scope in the future. • The SAE documents need to explore a range of options with associated costs and advise on best way forward. • JP and RA on holiday first two weeks of Feb. AC to meet before they leave.