Growing mutual business with a synchronized sales call.

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Achieving an Uninterrupted Supply Chain
Bruce Hawkins, Wal-Mart Stores, Inc. Brad
Papietro, Wegmans Food Markets July 11, 2006
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Wal-Mart Who We Are!
Improving the Standard of Living
Global
Growth company
We are a global retailer committed to growing our
company by improving the standard of living for
our customers and serving communities around the
world. We earn the trust of our customers every
day by providing a broad assortment of quality
merchandise and services at every day low prices
while fostering a culture that rewards and
embraces mutual respect, integrity, and diversity.
Community focused
Trust
Mutual Respect, Integrity, and Diversity
Broad assortment
Every Day Low Price
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(No Transcript)
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How are these related to
An Uninterrupted Supply Chain ?
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The Evolution of Supply Chain Relationships
Butterfly
Diamond
Retailer
Retailer
Supplier
Supplier

• All interaction funneled through one point of
  contact
• Limited productivity

• Subject Matter experts work together toward a
  common goal
• Enhanced productivity

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Happy Customers
Customer Loyalty
Concept To Shelf
Market Share
Sales
Service Level
Suppliers
Cost Per Case
Retail Execution
Days Of Supply
Forecast Accuracy
Invoice Accuracy
Accurate Data Synchronization
Common Measures
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A Synchronized Relationship ComesFrom
Synchronized People

• Our people collectively agree on goals
  measures
• We all speak the same language
• Your computers talk to and agree with our
  computers
• The information we share is timely, useful and
  accurate

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2005 Was About Finishing Sync
82 Cost Volume Completed!
82 Complete Suppliers
Completed Volume
Wegmans Goal
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Present State of GDS at Wal-Mart

• 92 of Wal-Mart Depts. have Data Synced Items

HOUSEHOLD PAPER GOODS, LARGE APPLIANCES,
HOUSEHOLD CHEMICALS/SUPP, PAINT AND ACCESSORIES,
HEALTH AND BEAUTY AIDS, COMM BREAD, GROCERY DRY
GOODS, CURTAINS AND DRAPES, DSD GROCERY, SMALL
APPLIANCES, SHEER HOSIERY, PHARMACY, DAIRY, PETS
AND SUPPLIES, FROZEN FOODS, BEDDING, HARDWARE,
DOMESTIC GOODS, PRE PACKED DELI, COSMETICS AND
SKIN CARE, LAWN GARDEN, CANDY, TOBACCO,
COOKIES, JEWELRY AND SUNGLASSES, CAMERAS AND
SUPPLIES, AUTOMOTIVE, HOME FURNISHINGS, SERVICE
DELI, FABRICS AND CRAFTS, HOUSEWARES, IMPULSE
MERCHANDISE, INFANTS/TODDLERS, ELECTRONICS,
OFFICE SUPPLIES, HORTICULTURE AND ACCESS,
WIRELESS, BAKERY, 1-HR PHOTO, CONCEPT STORES,
LIQUOR,WINE,BEER, PRODUCE, TOYS, MEAT - FRESH
FROZEN, SPORTING GOODS, LADIES SOCKS, BRAS
SHAPEWEAR, SLEEPWEAR/FOUNDATIONS, MENS WEAR,
SEAFOOD, GIRLS WEAR, PLAYERS AND ELECTRONICS,
PHARMACY PRESCRIPTIONS, BOYS WEAR, FLORAL,
LICENSEE, STATIONERY AND BOOKS, SEASONAL,
OPTICAL, SHOES
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Present State of GDS at Wal-Mart

• Currently in US with 1,088 Production Partners
• 7 of Supplier Base
• 22 of Sales
• Working with Initial suppliers in United Kingdom
• Available to Pilot in Canada, Germany, Mexico
• Creation of New GDS Item Publications Through
  Retail Link
• Working to Eliminate Internal Roadblocks
• Data Accuracy Is Improving, But There Are Still
  Opportunities

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and 2006 is All About Accuracy!
Regular audits of 25 focus suppliers improved to
66 accurate overall
Random Audit 57 items, 0 completely accurate
66 Item Accuracy
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Celebrating Accuracy Success!

• These Suppliers are best in class for Data
  Accuracy!

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What Are The Benefitsof an Accurate and
Synchronized Relationship?
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Traditionally the value of synchronization was
thought to be foundational
Value Added- Collaborative
Mission Critical
Foundational
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Synchronization is foundational but the true
benefits are realized when you eliminate
Supply Chain disruption in your Mission Critical
business processes
Value Added- Collaborative
Mission Critical
Foundational
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Wegmans e-Commerce Vision
Supply Chain Visibility
e- Financials
Price Sync
Wegmans .com
RFID/ePC
Demand Forecasting
Collaboration Planning
Replenishment
e- Procurement
e- Negotiation
Dynamic Distribution
Dynamic Logistics
Product Information Management
Global Data Synchronization
Data Accuracy
Internal Collaboration
Standards Community
IT Infrastructure
Education and Metrics
Continuous Improvement
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2006 Accenture Accurate Data Synchronization
Study
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Wegmans Accurate Data Synchronization Benefits

• Transportation
• Inbound Freight 2.5 million
• Outbound Freight 1.0 million
• Distribution
• Network Utilization 1.0 million
• Store Operations
• Coupon Scanning Errors 40 Reduction
• Sales Merchandising
• New Item Entry 50 Faster
• Speed to Shelf 23 Faster
• Accounting Administration
• Invoice Reconciliation 8

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Wal-Mart Supply Chain Issues

• Item Setup
• Purchases Orders
• In Bound Shipments
• Warehouse New Item Setups
• Out Bound Shipments
• Sales
• Compliancy

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Key Lessons Learned

• There is tremendous value for all of us in
  accurate data synchronization
• Elimination of Supply Chain disruption and waste
• More collaborative focus on improving customer
  satisfaction and sales
• Synchronization is not just about technology, it
  is about our people interacting differently in a
  new world
• Significant value is delivered when we chose to
  use accurate data to interact and operate
  differently
• Our Best Suppliers are learning, leading, and
  realizing the greatest benefits in this new
  environment
• Join The Future!!