New DSD Vendor Program

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New DSD Vendor Program

• U.S. Food Retailer Presentation
• Synergy DSD Vendor Program

March 15, 2006
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A Program that Works

• Purpose Increase product sales, reduce operating
  costs, improve relationship with vendors
• Goals Improve DSD service efficiency, track and
  monitor performance, and collaborate better to
  support promotions, holidays, peak periods
• Method Web collaboration tools, Symbol
  technology in the back room, connect directly
  with vendors, live back-up support center

GMA has reported out of stocks as a 6 Billion
lost sales opportunity
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Our New Synergistic Approach

• Many retailers state the following business goal
  for 2006 reduce DSD out-of-stocks
• With a synergistic program, you and your vendors
  will become more efficient and increase sales to
  your hard-earned customers.
• When confronted with an out-of-stock situation,
  depending on the category, 21 to 43 of
  consumers will make that purchase at another
  store, while another 7-25 will not buy the item
  at all. - CIES, FMI, GMA Study

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Todays Challenges

• Retailers can not always get DSD products on the
  shelf when consumers want them resulting in lost
  sales revenue
• DSD Vendors have limited resources and are not
  able to serve every store at the time they expect
• Opportunity to overcome these challenges with a
  new DSD program that has proven to work for the
  benefit of both retailer and vendor

Out of stock rates nearly double on promoted
items. - GMA 2002 Study
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Direct Communication Reporting
We have become advocates of the Synergy DSD
program. The Synergy Program is easy to use and
will have an impact on the Industry major DSD
Vendor I have recommended the program to the
largest retailers. major DSD Vendor
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DSD Program Components

• Servicing Issue Notification
• DSD Store Schedule Management
• Vendor Check-In/Check-Out
• Paperless Verification of Vendor Efforts
• Messaging for Easy Communications
• Live Reporting System

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The system allows both retailers and vendors to
monitor activities in real-time and investigate
issues after the fact. The Synergy Systems DSD
program offers a solution for both at a very
affordable cost. Leading Supermarket Chain
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Servicing Issue Notification
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• Store managers and receivers issue servicing
  requests into the live system when
• DSD product is out of stock and not available
• DSD product is available but the shelf is empty
• Requests go directly to DSD vendors route
  supervisor usingone of many technologies
  available. The system allows both retailers and
  vendors to monitor activities in real-time and
  investigate issues after the fact.
• The system documents all requests, time stamps
  them, and records the response time. Reporting
  engine displays logs for both retail and vendor
  management.

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DSD Store Schedule
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A vendor delivery and merchandising schedule is
available to store managers and receivers to view
scheduled DSD activity for the day, the week, or
future weeks.
Updated by the Vendor during the day to report
changes in delivery or merchandising
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Check-In / Check-Out
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• Retailers can now easily check-in and check-out
  all deliveries and merchandising. DSDs get
  checked in and checked out by either the DSD
  receiver (drivers) or store managers
  (merchandisers).
• There are no training or technology requirements
  on the delivery or merchandiser side they
  verbally announce their arrival/departure to the
  right person in the store.

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Paperless Verification
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A store associate is required to verify that work
was performed so that vendors are credited with
the effort.
Retailers can choose to verify the
servicing after checking the vendor out.
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Messaging for Easy Communications
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• Floor servicings, re-sets, inventories, backdoor
  closures? changes in these schedules? Retailers
  and vendors can cut the cost of numerous
  callbacks
• Retailers can send any servicing-related message
  to one or more of its DSD vendors
• Vendors may use the message system to broadcast
  their issues or replies to one or all of its
  retail customers

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Live Reporting System
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• Retailers receive reports of Vendor activities
• Vendors can view servicing results over time
• Servicing efficiency scores are available to both
• Reports are live and up-to-the-minute

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Backup Monitoring

• A Synergy Support Center monitors DSD responses
  to store requests. If no response is made, a
  Synergy Rep contacts other pre-defined DSD staff
  to help resolve the issue.

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Vendor Investment
The cost of the program is minimal. Most
retailers will contribute a few dollars a
month/store. The largest area distributors may
pay 250/month to cover 50 stores to achieve the
benefits. Most pay considerably less.

• Benefits
• Both retailer and DSD increase sales by reducing
  out of stocks
• DSDs receive for the first time, customer
  verification reported live and accessible
  on-line
• DSDs get more collaboration from the retailer in
  ensuring smoother operations, managing DSD
  Vendor efficiency scores

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Program Steps

• Month 1 Retailers identify list of their DSD
  Vendors in their zones/districts
• Month 2 DSD Vendors fill-out on-line data
  including contact names and delivery/merchandising
  schedules
• Month 2-3 DSD Vendors get orientation. Retailer
  connects to system website.
• Month 4 Go-Live. Retailers and vendors jointly
  operate system to manage schedules, identify
  issues, view reports.

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Program Contacts

• To get started, call
• Link Parikh, VP-Sales, 877-757-9679 (x115)
• Mark Payne, VP-Ops, 877-757-9679 (x104)