Data Accuracy Collaboration Meeting

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• Data Accuracy Collaboration Meeting
• July 11, 2006
• Retailer Need for Data Completeness

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Agenda

• The New SUPERVALU
• Data Accuracy
• SUPERVALU Global Data Sync Status
• Key Data Fields Used by Retailers
• Need for Complete and Accurate Data
• New GDSN Functionality

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The DealTransaction Summary

• SUPERVALU, CVS and Cerberus-led investment group
  to acquire Albertsons for 17.4 billion in cash,
  stock and debt assumption
• SUPERVALU to acquire premier retail properties -
  more than 1,125 stores
• Acme Markets
• Bristol Farms
• Jewel-Osco
• Shaws and Star Markets
• 569 Albertsons stores in Idaho, Southern
  California, Nevada, Utah and Northwestern U.S.
• In-store pharmacies Osco Drug and Sav-on
• Deal Closed June 2, 2006

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New SUPERVALU Facts

• Leading food distributor in U.S.
• 3rd largest food retailer by revenue more than
  2,500 stores under SUPERVALU banners.
• Headquartered in Minneapolis, MN
• Nearly 200,000 employees nationwide
• Total company annual revenues approximately44
  billion

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Current Footprint of To-Be Acquired Retail Stores

Banners
Northwestern / Intermountain
Southern California
Combination / Conventional Stores
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Operations Footprint of new SUPERVALUWill have a
retail presence in 48 states and the District of
Columbia
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73 of Retail Revenues from 1 or 2 Positions
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Why SUPERVALU Got Involved!
Adoption of data synchronization is rapidly
accelerating in the retail industry. Retailers
and suppliers are successfully working together
to eliminate friction in the supply chain caused
by inaccurate data. Leveraging the GDSN
standards, through 1SYNC, provides a critical
foundation for collaboration with our suppliers!

• Jeff Noddle, Chairman CEO

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Our initial focus has been on our supply chain
warehouse business
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New Item Process with GDSN

• Integrated data sync transactions into New Item
  Process
• 1SYNC data is fully integrated to portal
• Eliminates re-keying
• Non Data Sync Manufacturers must manually sign on
  to SVHarbor portal and key all of the data.
• Key initiative to speed to shelf for new items
• Eliminates 1 source of errors in item data

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Manufacturer
The 5 Dimensions of Data Quality
Source Systems
Completeness
Required values electronically recorded
PIM/Publication Process
Standards Based
Data conforms to industry standards
GDSN
Product Information
Consistency
Data values aligned across systems
Data values are right, at the right time
Accuracy
Time Stamped
Validity timeframe of data is clear
PIM/Receiving Process
Recipient Systems
Source GCI/Cap Gemini Internal Data Alignment
Report, May 2004
Retailer
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Data Quality is Foundational

• Without good, accurate data, Global Data
  Synchronisation will only enable the rapid,
  seamless transfer of bad data!

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Data Quality is critically important for

• Logistics Systems
• Warehouse Management Systems
• Plano-gram Management
• Outbound Shipping Efficiency
• Efficient New Item Introduction
• Efficient Financial Processes
• Improved Customer Service
• The Realization of Data Synchronization Savings!

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Critical Fields All Retailers Need Accurate Data
Today

• GTIN
• Pack
• TI HI
• Pallet Qty
• Order Minimum
• Order Sizing Factor

• Weight
• Length
• Width
• Height
• Net Content
• Unit of Measure

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The Next Big Thing - Increasing the Focus on Data
Quality

• Consumer Unit Dimensional data
• Plano-grams
• Significant cost of measurement
• 3rd party solutions that are not in the loop on
  changes
• Shelf label accuracy
• Scan accuracy
• These things directly impact our customers at the
  store

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• Basic Item Synchronization Dimensional
  Information is only the start

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Todays Leaders in GDSN are just scratching the
surface of the potential benefits available from
data synchronization.Companies on both sides of
the supply chain need to re-commit to truly
synchronizing our supply channel.
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Manufacturer
The 5 Dimensions of Data Quality
Source Systems
Completeness
Required values electronically recorded
PIM/Publication Process
Standards Based
Data conforms to industry standards
GDSN
Product Information
Consistency
Data values aligned across systems
Data values are right, at the right time
Accuracy
Time Stamped
Validity timeframe of data is clear
PIM/Receiving Process
Recipient Systems
Source GCI/Cap Gemini Internal Data Alignment
Report, May 2004
Retailer
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Data Completeness

• For data synchronization to deliver its potential
  companies need to move beyond the minimum
  requirements
• Over 150 core data attributes
• Most suppliers are sending the bare minimum
• Most retailers are integrating 30 or less
  attributes

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Data Completeness

• Properly Assign GTINs at all appropriate levels
• Best Practice - All levels of shipping
  hierarchies
• Straight Pallet
• Standard Mixed Modules
• Displays
• Cases
• Inner Pack
• Consumer Unit

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Additional data to synchronize

• Country of origin
• Organic
• Hazardous material
• Packaging marking
• Order lead time

• Pallet type
• Coupon family code
• Recyclable
• Returnable

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Additional data to synchronize

• Shelf life
• Peg Measurements
• Handling instructions
• Item order increments

• Stacking - crushability data
• Temperature min./max.
• Effective dates
• Handling instructions

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Hundreds of New Data Attributes

• Process to move new attributes into GDSN quickly
• Attribute value pairs
• Fast Track Process
• New industry extensions

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Relationship Dependent Data

• Attributes vary by region or customer
• GDSN allows publishing by customer
• Few suppliers and retailers are ready
• Attributes do vary
• Effect dates
• Minimum order quality
• Availability
• Many more
• Increasingly important as we move to price sync,
  DSD, Multi-source and beyond

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New Industry Extensions and Sectors Requirements

• Food Service
• mpXML Random Weight Meat
• Hardlines
• Do it Yourself
• Entertainment

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New GDSN Processes

• Multi-Source
• CIC Response
• Price Sync
• Item Authorization
• Party Sync

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Multi-Source Retail Perspective

• Multi-source is common for
• Private label, beverages, fresh commodities,
  Wholesalers
• Key Issues
• Adopting GTIN Rules
• Who publishes GTINs
• Proxy Process
• Manage/Assign Administrative Records
• Broker functionality

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Multi-Source

• Wholesaler Implementation Questions for
  Retailers
• Buy direct as well as from a wholesaler?
• Buy from multiple wholesalers?
• Can the retailers system carry multiple records
  for the same item?
• Are they GTIN ready?
• Do their systems carry multiple item hierarchies?

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Catalog Item Confirmation Response

• Retailer sends to supplier
• Response codes help identify issues with
  publication
• Automate processes
• Speed communication of issues

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Price Synchronization

• The standard incorporates global requirements
  from all verticals and business models
• Sync transaction price or components
• Sync my generic catalog of bracket prices
• Sync targeted promotion and allowance activity
• Sync line item invoice-level components
• Sync at corporate level, at division level, at
  store
• Sync rate, percent, or amount, along with the
  calculation sequence
• Success includes establishing a comfort level
  with security, auditing, and trace-ability

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Item Authorization

• Ability to identify store or group of stores that
  carry an item
• Critical to the Direct Store Delivery Process
• Small payload, does not replace the CIN (Catalog
  Item Notification)
• Can link the distributor to the store
• Ability to authorize or de-authorize items
• Can be sent by either party

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Party (Organizational) Synchronization

• Critical for near-term functionality
• Multi-Source
• Need to identify necessary organizations and
  roles
• Pricing
• Need to identify pricing to specific parts of the
  organization
• Item Authorization/Publications
• go to lower level in organization to publish and
  authorize items
• DSD Distributor functionality
• identify store relationships by retailer and
  distributor orgs.
• Security

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Next Steps (Your Mission)

• Internal commitment to data sync
• Executive Sponsorship
• Cross-functional team
• Data Quality Czar
• Immediate commitment to improving the accuracy of
  dimensional data
• Education on Package Measurement requirements
• Strategy for expanding capability
• New attributes
• New processes

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The Global Data Synchronization Network has
rapidly become the standard way we do business
we have improved the accuracy of information
entering our network, while decreasing the time
to get new items to market. By leveraging data
synchronization we are removing friction from
every step in the supply chain, creating internal
efficiencies as well as benefiting our suppliers,
retail customers and the end consumer.
Mike Jackson President and Chief Operating Officer