Improve Foodservice Supply Chain Efficiencies

Confidential Information – Property of iTradeNetwork, Inc.

Improve Foodservice Supply Chain Efficiencies & Results

with iTradeNetwork’s Solutions

May 20, 2009

2Confidential Information – Property of iTradeNetwork, Inc.

Agenda

IntroductionsIntroductions

FCPC Member Value Creation: ITN Manufacturer Solution IntroductionFCPC Member Value Creation: ITN Manufacturer Solution Introduction

ITN Overview and FAQ DiscussionITN Overview and FAQ Discussion


iTradeNetwork Company Profile

Company

Employees

Offices

ITN simplifies commerce on-demand to the global retail, hospitality and foodservice industries.

We help our partners enhance their financial performance, quality and supply chain effectiveness, strengthening their brand promise.

On-demand, collaborative supply chain management & intelligence solutionsDeep industry expertiseMost extensive global trading partner networkMost comprehensive industry catalog Leveraging and extending enterprise solutionsPrivately held, profitable and growing

Over 280

Pleasanton & San Mateo, CA; Boise, ID; Stokenchurch & Burton, England


iTradeNetwork Company Profile: Ownership

Ownership Accel-KKR, a technology focused private equity investment firm, acquired a majority equity stake in iTradeNetwork in December, 2007

The remainder of ITN’s equity ownership is held by with the company's management and employees and ABRY Partners, a Boston-based private equity firm

There are no “industry investors” in ITN such as current customers or prospective customers.

•For more information about Accel-KKR, please visit their website: www.accel-kkr.com

•For more information about the ITN Management team please visit ITN’s website: http://www.itradenetwork.com/html/our_people.htm

http://www.accel-kkr.com/

http://www.itradenetwork.com/html/our_people.htm


ITN’s Global Trading Partner Network

Operators Distributors Retail Manufacturers/Suppliers

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http://www.cargill.com/

http://www.pg.com/en_US/index.jhtml

http://www.dotfoods.com/home.shtml

http://www.martinsnet.com/default.asp


ITN’s Global Trading Partner Network

Operators Distributors Retail Manufacturers/Suppliers

Instant Critical Mass• 5,500+ Customers

– 8 of the top 20 Restaurant Chains– 4 of the top 6 Foodservice Management Companies– 50 of the top 50 Distributors– 16 of the top 20 Food Retailers– 75 of the top 100 Manufacturers

• Managing $220+ Billion in Commerce Annually– CPG, produce, dairy, meat, floral, small wares, janitorial, disposables,

beer, wine, spirits, and office supplies • Hundreds of proven integrations to home grown and third party enterprise wide

systems• Global technology support network: US, European Union, Canada, Australia• SAS 70 Certified

http://images.google.com/imgres?imgurl=http://www.ginsbergs.com/images/vndrlnks/hormel_color_logo.gif&imgrefurl=http://www.ginsbergs.com/resrcs/vndrlnks.htm&h=150&w=297&sz=4&tbnid=mWmMosCoW9iNuM:&tbnh=56&tbnw=111&hl=en&start=1&prev=/images?q=hormel&svnum=10&hl=en&lr=&rls=GGLG,GGLG:2006-12,GGLG:en&sa=N

http://www.cargill.com/

http://www.pg.com/en_US/index.jhtml

http://www.dotfoods.com/home.shtml

http://www.martinsnet.com/default.asp


Connect Once, Communicate with All


ITN’s Supply Chain Solution Suites

Contract Management

Inventory Management

Transportation Optimization

Trade Intelligence

Spend Intelligence

Procurement & Merchandising

Supply Chain QualitySourcing

Synchronized and

Enriched Catalogs



Contract Management

ITN’s Supply Chain Solution Suites

Synchronized & Enriched Catalogs

• Pricing & Allowance Management

• Trade Spend Data Management

Supply Chain Quality

Trade Intelligence

Spend Intelligence

• Branded Procurement

• Order Guide Compliance

• RFQ

• Order Management

• Trade Synch (Procurement & Merchandising)

• Ad Planning

• Operator Managed Inventory

• Vendor Managed Inventory

• Forecasting

• Complaint Management

• Audit Management

• Sales Insight • Spend Management

• Purchasing Compliance

Network of 5,500+ Trading Partners

Transportation OptimizationSourcing

• RFx

• Reverse Auctions

Value Acceleration Services


• Inbound Logistics Management


Canadian Operators Have Used ITN Solutions for Years

Real-time view into enterprise-wide complaints – protect franchisees, customers & brandCollaborate with trading partners until resolution – reduce the number and severity of incidentsMeasure KPIs & scorecard trading partners – improve relationships through information sharing

Complaint ManagementComplaint Management

Monitor compliance – ensure the right products are being bought at the right priceIncrease rebate collection – improve coverage and accuracy while reducing time to collectionOptimize SKUs & suppliers – identify consolidation and new contract opportunities

Spend ManagementSpend Management

Real-time visibility into PL product inventories – ensure LTOs are successful and brand promise deliveryShare inventory & demand visibility with trading partners – create a demand driven supply chain

Operator Managed InventoryOperator Managed Inventory


Canadian Operators and Distributors Have Used ITN Solutions for Years

Consistent ordering experience across chain independent of supplying vendorCentralized collection of transactional data for further analytical processing

Sales & Marketing Group ProcurementSales & Marketing Group Procurement

Consistent, branded online ordering – single view of application and usageEnforce compliance – centralized control of catalogs / order guidesMulti-vendor ordering– ability to order food, beverage, equipment, supplies, etc. from one ordering platform

Branded Procurement for OperatorsBranded Procurement for Operators

Consistent, branded online ordering – distributor provides application for its independent, multi unit, regional and national chain customersOrder fulfillment – confirmation of order placed including product availability and delivery date

Branded Procurement for DistributorsBranded Procurement for Distributors


Agenda





ITN & FCPC Members – Today

• Facilitating order-to-invoice process with FCPC member distributor customers – PO– Confirmation/Acknowledgement– ASN*– Invoice

• Facilitating Data/Catalog Synchronization and enrichment services between:– Members and distributors direct– Members, GS-1/ECCnet and Sysco (since 2006)

• Today nearly 1000 manufacturers and suppliers are shipping product within Canada or into Canada via ITN resulting in over $3B (US) in annual PO volume


Procurement and Merchandising Solution

• Current value to FCPC members include:– Synchronized catalog information lays the foundation for error-

free orders, improving invoice match rates• Interoperability with GS1 Canada: now at no additional cost

– Real-time visibility into order-to-invoice process eliminates “surprises”

– One-to-many connection lets you receive orders, send acknowledgements, send ASNs and invoice your distributor partners

– Improves accuracy of order-to-invoice process with all distributors regardless of technological sophistication

Nearly 200 Manufacturers Participating TodayNearly 200 Manufacturers Participating Today


Manufacturer ROI/Cost Savings

• Ability to connect to one platform for multiple distributors with one standard set of document specifications

• Ability to treat all distributors as if they were EDI capable, even though they are not –ITN does the document translation

• EDI/VAN and even Fax cost offset• Leverage your GS1 catalog through the ITN-GS1 interoperability

while meeting the data/item synch requirements of major distributor customer(s) PO-to-Invoice procurement program

Key sources of ITN value creation:

ITN can customize a ROI/Cost Savings Projection for your businessITN can customize a ROI/Cost Savings Projection for your business


ITN Procurement vs. Traditional EDI

ITN Procurement Solution Traditional EDI

Real-time transaction data Batched process transaction data

Clean, accurate information Inaccurate information moved faster

Removes technical disparity of suppliers Can only trade with suppliers who are EDI- capable

Confirmations are required based on workflow Supplier may or may not send confirmations

All catalog information is synchronized upfront via direct within ITN or with ITN pulling from GS1

Data is not usually synchronized directly by VAN

One standard set of document specs connects you to the largest trading network in the foodservice industry

Individual maps are required by each supplier

Quick, proven TPE process May take weeks/months to bring up a new trading partner due to testing

Maximum value (ROI) at a fraction of the cost Expensive way to feed your systems with suspect data


Frequently Asked Questions from Manufacturers

• Why did Sysco implement an ITN program instead of simply EDI?• Our company supports ECCnet/GS1; can ITN pull my catalog data from

GS1 at no additional cost to us?• Why do what is the benefit of the PO-to-Invoice process to me as a

manufacturer? • What does ITN do with my catalog data? • What other distributors are you working with in Canada?• What is ITN’s fee structure? What is the lowest cost participation option

available to me? Are there transaction fees?• Who owns ITN? I heard it was Sysco and GFS?• Is everything that ITN offers distributor-centric? • What else does ITN offer manufacturers in terms of value creation

opportunities?

For the answers discussed, please contact ITNRefer to final slide for contact information

For the answers discussed, please contact ITNRefer to final slide for contact information


ITN Constantly Enhances at No Cost to Customers

ITN SITE ENHANCEMENT: CATALOG 04/28/2009 (Please note the following catalog enhancements scheduled for production on April 30, 2009)•UNSPSC Code Support: The United Nations Standard Products and Services Code (UNSPSC) has a globally recognized set of standard codes for product categories. The extended catalog upload format will now support these UNSPSC codes for category classification. •The company DUNS Number has been added to email notifications of catalog uploads.•Multiple Warehouses: The Warehouse assignment field will be changed to allow customers the ability to assign multiple warehouses to an item in a single record using a comma separated list. •Multiple Private Labels: The Private Label field will be changed to allow customers the ability to assign multiple private label partners to an item using a comma separated list. •Multi COOL Support: Multiple COOL codes in a commas separated list are now supported. Catalog items that have outdated state province COOL codes will be converted to the newer codes that were published in January of this year.

Each improvement is customer or industry driven.For example….


Agenda






Contract Management

Manufacturer Solution Suites





Trade Intelligence

Spend Intelligence



• RFQ



• Ad Planning



• Forecasting







• RFx







Contract Management

Manufacturer Solution Suites





Trade Intelligence

Spend Intelligence



• RFQ



• Ad Planning



• Forecasting







• RFx





Your operator & distributor partners deploy to collaborate with you in

managing & settling contracts


Manufacturers Benefit When Their Customers Use Pricing & Allowance Management

Draft Contract / Update Pricing

Approved Contract

DC Markup

Approved Pricing

Invoices

Manage contracts collaboratively: manufacturer maintains, operator / distributor approvesPermissioned-based access and controlled publishing gives trading partners have access to relevant pricingAllowances and billbacks are automatically generated and calculated ‘real-time’Integration available for CM apps – not a replacement for your IT investment, an extension

Enablers

Reduces errors & disputes by creating a supply chain wide “system of record”Improves accuracy of DC-unit pricing, resulting more accurate billbacks / deductionsSignificantly reduces administration costs by virtually eliminating settlement / reconciliation effortFocus interactions with trading partners on growing the business

Benefits

Invoice & Rebate Details

Example of Operator Allowance Flow

Man

ufac

ture

r

Operator

Distributor

Pricing & Allowance Management

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Performance Visibility

Performance Visibility

Inability to gain enterprise wide view of sales and program performanceUnable to assess if right dollars, are generating right results with right accountsLack of trade program visibility prevents gaining critical line of sight into business

ComplianceComplianceFrequency of rebate claims creates significant delay in visibilityUnable to generate target lists from excel spreadsheets or internal reportsUnable to leverage insight across accounts and category sectors

Promotion ROIPromotion ROIUnable to measure true ROI on promotionsUnable to close the loop (Sell In vs Sell Thru, National vs Street)Lack of insight causes trade to be treated as “open checkbook”

Partner Relations Partner

Relations

Lack of facts and details to create meaningful conversationsDifficulty with being on a level playing field with customersUnable to proactively present solutions and opportunities to grow business

Manufacturer Challenges – “The Black Hole”

Internal Resources

Internal Resources

IT departments are overwhelmed and under-staffedSales teams require intelligence not reportsBasic insight needs are tip of the iceberg


Sales Insight

• Ground breaking foodservice platform combining actionable intelligence with a strong data foundation to:

– Arm sales teams with timely insight into contracted business– Identify purchasing compliance issues impacting sales– Pinpoint opportunities for growth – Measure promotion results and identify true ROI– Deliver enterprise wide view of sales and performance

• Leverages data already being provided to manufacturers:– Billback transaction files from any distributor (not just ITN network)– Operator rebate files– Can accommodate various inbound formats (EDI, flat file, excel)

“Designed by sales people to be used by sales people”


Pre-ITN Processing – Excel file RebatesPre-ITN Processing – EDI 867 Billback

Data Services Data EnrichmentData Validation

Data Acquisition & Standardization

Data Access Data Integration

Spen

d D

ata

War

ehou

se

Customer’s Account Plan, Sales Territories

Turning Data into Action

Sales InsightMeaningful analytics of sell-through data to increase compliance and grow revenue.


Sales Gets Deep, Timely Insights into Contract Business


Market Feedback

“When information is close to us, and at our fingertips, it’s very helpful – the information available in this solution is second to none.”

“The solution will allow us to monitor compliance more real time.”

“In the past, we haven’t had a way to present information to our customers. Now we can be armed with information for meaningful conversations.”

“I can’t generate a target list without using this solution.”

“Sales Insight can assist in the contract management between the distributor and the manufacturer. This is a wonderful tool for going into meetings with distributors.”

“This kind of information puts us on a level playing field with our customers”

“What we have suspected with our accounts is now very apparent – and we are working with facts and details.”

“This insight will help us to understand how to formulate marketing programs.”

“When information is close to us, and at our fingertips, it’s very helpful – the information available in this solution is second to none.”

“The solution will allow us to monitor compliance more real time.”

“In the past, we haven’t had a way to present information to our customers. Now we can be armed with information for meaningful conversations.”

“I can’t generate a target list without using this solution.”

“Sales Insight can assist in the contract management between the distributor and the manufacturer. This is a wonderful tool for going into meetings with distributors.”

“This kind of information puts us on a level playing field with our customers”

“What we have suspected with our accounts is now very apparent – and we are working with facts and details.”

“This insight will help us to understand how to formulate marketing programs.”


Sales Insight Uncovers Opportunities

• See into and across contracted business• Identify “low-hanging fruit” to increase sales• Determine impact of programs and fine-tune• Increase purchasing compliance• Focus field sales & brokers on sales growth opportunities


For More Information

Visit www.itradenetwork.com

For more information on how ITN can offer you additional supply chain efficiencies & drive results

contact [email protected] call

650-645-2791