16MileSolutions Investor Power Point June 2008

8/14/2019 16MileSolutions Investor Power Point June 2008

1/17

EDI 3.0 More Tools, Less Cost

Mark Pattison, Founder and CEOJune 2008


2/17

2

16 Mile has the Solution

16 Mile Solutions develops tools and services that enhance the waybusiness is conducted across global supply chains. The companyspecializes in lowering the cost and complexity of delivering order information for buyers, suppliers and 3rd party services.

What this means:Comparable to what happened in the cell phone industry.

Technological advancements turned cell phones into mobileinformation systems i.e. Blackberry.

Like the revolution in the cell phone industry, 16 Mile has bundled avariety of value added services and tools into order informationexchange. Combined with a new, less costly pricing model (SaaS) our supply chain solution is positioned to shake up the billion dollar industry.

What we do:


3/17


4/17

4

Market Opportunity

The supplier relationship market (SRM) is expected to grow at acompounded rate of 8.2% from $1.6 billion in 2006 to $2.35 billionin 2011.

Today, 35% of small- to medium-size companies those earningannual revenues of $30 million to $1 billion still use manualprocesses for communicating with their suppliers.

0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

2006 2007 2008 2009 2010 2011

Worldwide Supplier Relationship Market(Billions of dollars)

Source: ARC Advisory Group 2007


5/17

5

16 Mile OV (OV = order visibility)

Our inaugural product, 16 Mile OV, is a hosted solutionthat differs from its competitors if four important ways:

New Pricing Model : Results in 50-100% lower EDI costs, plus nocharge for transactions to and from suppliers sent via AS2 andFTP. Others charge by kilobytes for each transaction.

Multi-dimensional Order Visibility : Delivers real-time, multi-dimensional order information across supply networks, alongwith EDI (electronic data interchange). Others only offer EDI .

New Technology : Based on new database structure thatintegrates data from Oracle, VANs and other back-end systems,results in better end-to-end management of supply and demand.

Built-in Tools : Unites EDI and order visibility with tools andreporting capabilities for vendor performance, event alerts,inventory tracking, response management, scanned-basedtrading, and more.


6/17

16 Mile OV


7/177

Experienced TeamMark Pattison Founder and CEO Co-founded Front Porch Classics (2000), venture-backed, acquired December 2006 Founded The Pattison Group (1994), current CEO Five-year NFL player (Raiders and Saints), two playoff games Football, University of Washington, five bowl games, inducted as Legend

Jim Cantrell VP of Business Development / Chief Strategic Officer Vice President of Business Development for DIcentral, Houston, TX Founding partner of E-tran LLC, boutique supply chain consultancy, Houston, TX Director, Print Logics, a data management and direct marketing company, Austin, TX Manager of West Coast Sales, Checkpoint Systems, Thorofare, NJ

(Note: CTO, CFO, and developers are independent contractors.)


8/178

Experienced Team

Founder has experienced supply chain issues first-hand:

Founded 13-year-old branded

merchandise and import co. 1,000s of transactions, 100s of

customers 10-year Preferred Vendor of

Starbucks Coffee

Manufacturer of all Starbucksoutdoor umbrellas and basesfor North America, LatinAmerica, and Asia

Co-founder, 2000 Makers of coffee table games 700 retail locations, seven

countries Family Fun Toy of the Year

Award 2002 and 2003

Angel and VC funding Acquired December 2006


9/179

16 Mile vs. the Competition

Gray boxes = capabilities


10/1710

Market Summary Breakdown

Of 309,909 U.S.-based businesses, 79,804 fall in in our target market

companies with $25 million to $1 billion in annual revenue. We only need 2,200 companies as customers (2.75%) to reach our annual

revenue goals.

Key:

A = annual revenue

B = number of U-S.-based companies withthat revenue

A B


11/1711

Pricing Model

Software as a Service (SaaS) Based on a seat license and

sliding scale Transaction pricing (for VAN-EDI

management): $0.25/kb,decreasing if competitionincreases. Never below cost plus30-40%.

Chart prices derived from competitive analysismodels between 16 Mile OV and other solutions operating in the hosted EDI market.

Seat Licenses Price Per

Number of Seats Seat1 to 10 $ 5,000

11 to 19 $ 4,500

20 to 49 $ 2,700

50 -99 $ 2,100

100 to 200 $ 1,700

Annual seat license 20%

Setup (Per retailer) $250

Map to client environment by format

X.12 (Custom format)* $2,500

XML $1,000

ASCII $500

Packet (In increments of 10 $1,000

Training $0

Support $0


12/1712

MilestonesPRODUCT MILESTONESBeta testing completed January 2007 (with Starbucks)

Product launch May 2008SALES MILESTONESCLOSED DEALS: Robins and Meyer, Olympia Sports, Carbon 5, Inmoda, MelloSales, Staub USA, The Pattison Group (translating data between them andretail giants Adidas, Columbia Sportswear, KB Toys, Nike, Reebok, SamsClub, Starbucks, Target, Wal-Mart, PetSmart, Dillards & more)

PENDING PROPOSALS: PetFood.com, Safeway, Kassatex, Venture Products,Red Wing Shoes, Capacity, K&M International, Brucci, Westgate HomeFashions plus 20 others

IN DISCUSSIONS: Nordstrom, Starbucks Coffee, Restoration Hardware,Schenker Logistics, True Religion Jeans, Baden Sports, Zumiez, Sababa Toys,Chefn

SALES TEAM : Hired supply chain experts from key competitor, Houston-based Dicentral.

OTHER MILESTONESLEGAL : Perkins Coie agreed to provide legal representation as part as itsEmerging Company program.

PATENTS: 1 process and 1 technology patent pending for warranty claimsfacilitation .
http://walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=316


13/1713

Financial Summary

GOAL: Reach 2.75% of our target market for success

Detailed revenue model available upon request


14/1714

Board of Advisors

DEAN BAKER: Founder of Asset Recovery Specialist Inc. (www.equipmentrecovery.com ), asset management for banksand leasing companies

JOHN BAUGHN: Former partner of Accenture for businessand IT architecture, managing over $100 million dollars

DIANE DEWBREY: CEO/President of Foundation Bank TERRY DRAYTON: Co-Founder of Home Grocer, Count Me In,

Ramp Technology Group ( www.RampGroup.com ) DAN NORDSTORM: Former CEO of www.Nordstrom.com ,

current CEO of Outdoor Research Company (www.outdoorresearch.com )

Each advisory member has invested in 16 Mile Solutions.
http://www.equipmentrecovery.com/http://www.rampgroup.com/http://www.nordstrom.com/http://www.outdoorresearc.com/http://www.outdoorresearc.com/http://www.nordstrom.com/http://www.rampgroup.com/http://www.equipmentrecovery.com/


15/1715

Funding Requirements

Visibility, Efficiency, Lower Costs

Prior Funding: $200,000 from founder

Series A Raise @ $1,500,000Goal AccomplishedPre-money valuation: $2.5 millionPost money valuation: $4 millionPreferred shares .35

Series B Raise @1,500,000 Pre-money valuation: $6 million

Preferred shares .37Capital Raised will allow us to:

Acquire working capitalHire infrastructure (CTO, CFO, sales, marketing, support)Launch channel partner program (domestic and international)Continue public relations, search engine optimization, marketing

Extend features of 16 Mile OVComplete development of Warranty Claims (in beta)


16/1716

Where Well Be in 3-5 Five Years

$70 million in revenue More than 2,000 clients worldwide Established international channel partnerships Next-generation status in retail compliance Recognized market leader in automating supply chaincollaboration, communication, and warranty claims Exiting through acquisition by company with

compatible fit . . .
http://www.i2.com/index.cfmhttp://www.perfect.com/index.htmlhttp://www.oracle.com/technology/index.htmlhttp://www.manh.com/


17/17

EDI 3.0 More Tools, Less Cost

Mark Pattison, Founder and CEO712 N. Motor Place Suite 3

Seattle, WA 98103206.675.1066206.675.1099

[email protected]
mailto:[email protected]://www.16milesolutions.com/http://www.16milesolutions.com/mailto:[email protected]

Documents

16MileSolutions Investor Power Point June 2008