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Business Needs/Challenges

Business Needs/Challenges. Today’s retailers face unprecedented challenges. Retailers must ensure that products are on the right shelf, at the right time and at the right cost Approximately 70% to 85% of buying decisions are made at the shelf .

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Business Needs/Challenges

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  1. Business Needs/Challenges • Today’s retailers face unprecedented challenges. • Retailers must ensure that products are on the right shelf, at the right time and at the right cost • Approximately 70% to 85% of buying decisions are made at the shelf. • Supply chains are a source of business value and competitive advantage.

  2. SCM Value Proposition • Supply chain management (SCM) revolves around understanding and balancing the three key dimensions: • Availability • Inventory • Cost • Effective SCM can give you supply chains that improve margins, enhance overall business performance and drive competitive advantage.

  3. TXTPERFORM2008 Value Proposition • Based on best-in-class industry practices, TXTPERFORM2008 is a complete SCM suite including best of breed demand management and supply planning that delivers an exceptional combination of analytics capabilities and rich functionality • Supply chain performance management and planning capabilities span key retail processes including: • Strategic Planning • Merchandise and Store Planning • Open-to-Buy and Purchase Planning • Assortment and Allocation Planning • In-season control • Replenishment Planning • Product Lifecycle Management (PLM)

  4. TXTPERFORM2008 Value Proposition • TXTPERFORM2008 enables: • Concurrent planning and management of trade-offs • Inventory optimization for reduction of working capital • Collaborative forecasting and demand planning • One version of the truth • Metric based performance management • Cross-functional business process integration • Faster more targeted product launches

  5. Solution Benefits • Empowers fact-based decision making to choose and apply the best planning scenario; have complete understanding of the implications and the impact on business performance that result from those decisions. • TXTPERFORM2008 enables retailers to: • Translate data into a financial view; connect operational plans back to the overall company goals • Better manage demand; create an accurate picture of future demand • Have greater visibility and control over supply costs for higher margins • Manage by exception; create a balanced plan with continuous performance management • Launch the right products on time and bring them to market faster

  6. Solution Benefits • Tangible business benefits to be had: • Improving product assortments: • Footwear retailer – 10% increase in markdown margin • Apparel retailer – 5% reduction in inventory, with improved product availability • Generalmerchandise chain – 5% to 15% sales increase, margins up 2% to 3% • Department store chain – 5% sales increase via average basket growth • Improving forecast accuracy: • 15% less inventory • • 17% stronger perfect order fulfillment • • 35% shorter cash-to-cash cycle times • Improving visibility and integration through sourcing processes: • Improving inventory turns to as little as five to seven days • Achieving net margins of 15% to 20% • Racking up comparable store sales increases (stores opening one or more a year) of 10% to 12% • Fostering greater than 80% full-price sell through

  7. Benefits of Microsoft/Partner Stack Integration TXTPERFORM2008is a combination of “out of the box” technology from a market leader but is closer to the users’ current working practices through TXT’s across industry expertise. The functionality included in the product is the result of years of experience in our working closely with customers and incorporating their needs into our software. • Providing reduced TCO and a competitive advantage: • Best of breed solution with a greater ROI • Technology based on MSFT stack and UI is Microsoft Excel • Simplified IT landscape • Faster and reduced deployment cost • Performance and scalability • Seamless navigation • Integrates with ERP systems

  8. Case StudyNicolas (wine retailer) Business challenge: Refine the product range and reduce the number of SKUs in stores, provide the best possible response to consumer demand while achieving target margins and modernize forecasting capabilities. Solution: Demand Forecasting and Replenishment Planning Results: • On-shelf availability of never out of stock (NOS) products increased from 65% to 95% in every store • 1.2% increase in overall group margins after 12 months • Double digit % decrease in inventory levels • Store acceptance of head office replenishment proposals is now nearly 80% - up from 60% one year ago

  9. Partner Overview • Founded in 1989, TXT e-solutions is an international software products and solutions vendor and leader in “Strategic Enterprise Solutions”; delivering the ability for organizations to better manage their value chain processes and improve their business performance to positively impact the bottom line.

  10. Contact Information Stefano Lena, VP Global Sales & Marketing E-mail: stefano.lena@txtgroup.com Phone: +1 646 715 2463 Phone: +39 348 2668624 http://www.microsoft.com/industry/retail/partners/featured/txt.mspx www.txtgroup.com

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