Dollar Tree & Family Dollar Core Merchandising System Selection

Overview and demonstrations presented October 11, 2022.

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Dollar Tree & Family Dollar Core Merchandising System Selection Overview and Demonstrations

October 11, 2022

Eric Sherbacow—Account Manager for Michael Kors

Kevin Walsh—VP Retail Solution Engineering, North America

Steve McQueen—Master Principal Solution Engineer, Retail Merchandising solutions

Pedro Pacheco – Director Value Creation

Rachel Lewis—Principal Solution Engineer, Retail Planning & Analytics solutions

Your Oracle Retail Team

Agenda

$39B In Revenue

$4B In R&D Investments

Dedicated Line of Business

35+ Years Serving Retailers

“Better Together”

Storage

Servers

Virtual Machine

Operating System

Database

Integration & Middleware

Applications

Networking

Security

Key Drivers of the Merch System Selection *Based on overview in RFI

Provide a standardized, seamless solution

with one version of the truth

Improve visibility and accuracy of data across

what is today very siloed

Improve operational efficiencies with

automation and exception management

Enable better collaboration with suppliers

Provide support for wide range of products

Integrate easily with DT/FD current systems

Deliver a modern platform for growth

The Platform for Modern Retailing

Gain Productivity & Insight Through Role-Based Dashboards

Launch Page Role-based enterprise wide launch page. Consolidated

notifications & favorites

Dashboards Relevant information &

exceptions by role

In-Context Launch “Launch” into a solution’s

screen passing in parameters

Contextual BI Dynamically refresh when

certain actions are performed

Notifications Real time notification

framework

Leverage Data Visualization for Visibility and Decision Support Example: July Market Trip Rollups and Analysis / Scenario 2

Merchandising SaaS Customers

American Entertainment

Retailer

LIVE On Deck - <6 months In Progress

Just Starting

European Entertainment

Retailer

Notable On-Premise

Agenda

Today’s Demo Flow for Each Scenario

Re-ordered Scenario Lines

Process Flow & Topic Content

Live Software Demonstration

Final Check for Each Scenario

Oracle’s Suite of Merchandising Cloud Services

INVOICE MATCHING

▪ Advanced Auto- Matching Invoice Processes

▪ Configurable Rules and Matching Tolerances

▪ Automated Discrepancy Resolution

▪ Workflow

ALLOCATION

▪ Multiple Methods & Rules

▪ Uses Plan, Forecast or Historical Data

▪ Determines Net Need

▪ What-if Analysis

▪ Scheduled Allocation

▪ Utilize Size Profiles

▪ Re-usable Templates

▪ Suppliers

▪ Organization & Merchandise Hierarchies

▪ Item Management

▪ Stock Ledger

▪ Sales Auditing

▪ Replenishment

▪ Franchise & Wholesale

INTEGRATION

▪ Integration Bus

▪ Web Services

▪ Bulk Data Integrator

▪ Financial Integration

▪ WMS Cloud Integration

PRICING

▪ Pricing Creation and Maintenance

▪ Regular, Clearance and Promotion pricing

▪ Conflict Checking

▪ Integration to POS

MERCHANDISE FOUNDATION

▪ Duty Calculation

▪ Real Time Inventory

▪ Transfers

▪ Consignment

▪ Purchase Order Management

▪ Deals & Rebates

▪ Import Management

SUPPLIER EVALUATION

▪ Enable sustainable sourcing decisions

▪ Track adoption of new policies, standards, and regulations

▪ Register and upload certifications

▪ Define, schedule, and conduct on-site facility audits

The Retail Cycle

Matched/resolved

invoices are paid in AP;

totals/liabilities & inv

movement posted to GL

All transactions at selling

location are automatically

audited, liabilities and totals

are staged for the GL

SELLING

Invoices are received and

automatically matched (or

resolved) against the PO and

receipt details

Merchandise is received at the

warehouse, store or even

customer. Inventory & Stock

Ledger are updated to reflect

receipt and staged for the GL

RECEIVE MERCHANDISE

MATCH & RESOLVE

Suppliers originate in

Financials; once approved

sent to Merchandising to

order product

SUPPLIER ONBOARDING

Item, Orders & Deals are created.

Deals auto-applied to orders and

are sent to the supplier for

fulfillment

ITEM & ORDER CREATION

All transactions at selling

location are automatically

audited, liabilities and totals

are staged for the GL

PRICING

All transactions at sku/location

are captured in real-time with

Inventory & Stock Ledger

updated to reflect movement

and staged for the GL

INVENTORY

POST, PAYMENT &

GENERAL LEDGER

Attributes

Group / Company

Sub-Class

Class

Department

Division

Group

Items

Merchandise Hierarchy

Hierarchy Structure For Organization & Merchandise

SERIES

Physical Warehouse (Omni-Channel)

Virtual 1

Virtual 3

Virtual 2

Warehouses

Traits Channel

Organizational Hierarchy

Selling Location

District

Region

Chain

Area

Grouping Tools

New Store Openings and Protecting Merchandise via Virtual DC

Physical Warehouse

Brick & Mortar Inventory Virtual DC

New Store Inventory Virtual DC

Ecommerce Inventory Virtual DC

Other Virtual DC’s As Needed

Used for daily/weekly allocation and replenishment to all stores; Have virtual DC for each banner fulfilled from the DC

Protects inventory for new store(s); one per store or one for all new stores together

Protects inventory for ecommerce orders Have virtual DC for each banner ecomm fulfilled from the DC

Create other virtual DC’s for any other processes that require the protection of inventory, e.g. promotions

Supplier and Supplier Site Structure

Supplier

Merchandising Supplier

Deals

Rebates

Payment terms

Address

Expenses

Schedules

Supplier Actions

EDI Capabilities

General Merchandise Supplier

Supplier Defaults

Replenishment

Bracket Costing

Inv Match

Traits

Payment terms

Address

Number

Supplier Site 1

General Merchandise- US

Supplier Site 1

General Merchandise - China

Financial Supplier Data

3 Level Item Structure using Differentiators

Each Item Can Have: • Multiple Vendors • Brand Identification • Configurable Attributing • Costing at the granular level • Track sales & inventory at desired level

Three-level item

UPC 1 UPC 2

Hanes Men's Tagless White T-Shirts, 3 ct

White SML

White MED

White LRG

Etc.

SKU SKU SKU SKU

Style

Differentiators: • Color, Shade, Size,

Scent etc

Two-level item

Campbells Tomato Soup 14.3 oz

Regular Label

Promo Label

UPC UPC

SKU

One-level item

Gift Card

UPC

Scenario 1

Setting up a domestic vendor with restricted items and placing a PO

Scenario #1: Setting up a domestic vendor with restricted items and placing a PO

Scenario # Line of demo script

1A Vendor submits a request to sell products to DT/FD; vendor submits this either through a vendor portal (preferred) or quote sheet – can we see both functions?

1B Merchants review the quote in the vendor portal/quote sheet and decide to move forward with setting up the vendor. Setup is complete in the Core Merch System – vendors have a direct part in their vendor setup which gives merchant back time to focus on assortment opportunities.

1C Once vendor is setup, vendor uploads their catalog of items into vendor portal or submits items through an Excel template provided by the Merchants – can we see both functions? There are certain fields the vendor must include so the item to be submitted for Merchant review/approval; this includes FD/DT required fields for certain attributes (incl. initial retail and negotiated costs)

1D One of the items is a “restricted sku” – the item setup process captures this information and flags that it can only be sold in or distributed to certain stores (ex. Alcohol, helium, etc.)

1F Merchants review the items and selects the items they will purchase; there is a workflow approval for item setup that ends with the Merchants’ approval

1E Store master data is also updated to flag / not receive certain restricted items based on region-related attributes

1G Blanket PO is created for the full quantity. Then closer to ship date, the PO is split into multiple POs to specific DCs. In this instance, POs will be transmitted to vendor via email

1H Vendor receives the PO (via email), sets up a confirmation appointment. Will want to see the visibility into PO status (ex. Transmitted, processing, approved, etc.)

1I Prior to shipping, the vendor submits an ASN with an adjusted order quantity; Merchants sees updated quantity on order

1J The inventory arrives at DC A and a goods receipt is done. The core merch shows the updated inventory. An allocation store transfer order is created in the replenishment system and is interfaced to the Core Merch solution.

1K Stores receive the inventory from DCs and does a goods receipt in current store inventory solution; stores’ stock ledgers are updated accordingly

1L Three-way match is conducted based on PO, Goods Receipt, Invoice and everything matches (manual or via EDI) (and venues – store receiving & DC receiving, etc.)

New domestic vendor with restricted items and placing a PO

Merchant reviews and accepts the

vendor and items in Vendor Portal

Vendor completes Vendor

setup in Vendor Portal

Vendor uploads item catalog

with attributes and restrictions

Vendor and Items are interfaced to Merchandising

Vendor proposes Items or quote

sheets in Vendor Portal

Initial Blanket PO generated Edi’d or emailed to vendor

Merchandise inventory and stock ledger

updated

Vendor sends ASN PO visibility to ASN quantities

Store transfers executed an

shipped

Store executed receiving

Redistribute PO updates and

additional PO’s

PO changes, new PO’s Edi’d or

emailed to vendor

Vendor ships product and

sends invoice. PO is received

Invoice Match 3-way auto match

Matched Invoices sent to Payables

for payment

01. Collaboration Work alongside partners in a hub where each team can provide visibility of their data

02. Operational Excellence Improve operations by leveraging data provided by your partners

03. Enterprise Agility Flexible processes, identify disruptions and act quickly

Supply Chain Hub

One Network

Supply Chain Hub Application

- Single platform for both Suppliers and Retailers to work in collaboration

- Modules are plug and play – retailer can choose what modules to enable and what modules each supplier has access to

- Data filtered to the user by Department and/or Supplier

- Share news and additional information with suppliers

- Alerts and Notifications available for all users - Auto-maintenance for suppliers

Key Features

• Eliminate Manual Effort from business processes

• Automate & Optimise operational areas

• Collaboration across Internal & External processes

• Delegate responsibility to Suppliers, Partners to improve Data Quality & Timeliness

• Self Service for external parties

• Workflow driven business processes

• Fully integrated with Oracle Retail

Supply Chain Hub End to End Process

ASNs

Costs

AppointmentsInvoicing

OrderingItems Proposals

RTVs

Supplier On- boarding

DealsSupplier Scoreboard

Customer Orders

Forecast, Sales and Inventory

Reporting

Supply Chain Hub Items Proposals

- Get Product Catalogues from Suppliers, including selling attributes (images or detailed item information)

- Get information about discontinued items or out of stock items

- Review Items and choose which ones will be part of your assortment

- Complete items quickly using defaults, mappings, or manual completion.

Improve Product Data Quality

Improve Time to Market

Supply Chain Hub Procure to Pay

Work in collaboration with retailers on: - Purchase Orders

- Users can: - Create orders - Propose changes - Cancel POs - Acknowledge POs - Upload and Download Orders

- Ability to have the concept of Master Order with Multiple Deliveries

Improve Processes

Improve Visibility

Supply Chain Hub Procure to Pay

- Create and Manage ASNs - Based on one or more POs - By Item or Container

- Invoices and other financial documents - Multiple POs per Document - Create Documents based on ASNs or

Invoices - Highlight Resolution Discrepancies

Supply Chain Hub Cost Change Management

- Suppliers can propose new cost changes

- Get out of tolerance alerts for new costs

- Retailers can review, request ammendments and approve

Improve Efficiency

Supply Chain Hub Supplier Scoreboard

Monitor relationship and performance of Your suppliers

- Automatic supplier performance calculation on major KPIs

- Maintain and complete manual scorecards for non-automatic KPIs

- Quickly act in case of supplier issues

Improve Visibility of Supplier Performance

Product Demonstration

Stock Ledger Updates

PO Receipt

Transfers

ITEM DEPT CLASS SUBCLASS PACK_IND LOC_TYPE LOCATION TRAN_DATE TRAN_CODE ADJ_CODE UNITS TOTAL_COST TOTAL_RETAIL REF_NO_1 REF_NO_2 TIMESTAMP REF_PACK_NO RECORD_SYS_DAT E

11110033 8 1501 3 1 W 1152 25-May-20 20 84000 42000 105000 1215084 610006 7-Oct-22 400000800127 25-May-20

11110033 8 1501 3 1 W 1152 25-May-20 87 84000 0 1215084 610006 7-Oct-22 400000800127 25-May-20

ITEM DEPT CLASS SUBCLASS PACK_IND LOC_TYPE LOCATION TRAN_DATE TRAN_CODE ADJ_CODE UNITS TOTAL_COST TOTAL_RETAIL REF_NO_1 REF_NO_2 TIMESTAMP REF_PACK_NO RECORD_SYS_DATE

11110033 8 1501 3 1 W 1152 25-May-20 20 84000 42000 105000 1215084 610006 7-Oct-22 400000800127 25-May-20

11110033 8 1501 3 1 W 1152 25-May-20 87 84000 0 1215084 610006 7-Oct-22 400000800127 25-May-20

Automated Invoice Matching Process within Merchandising 3-way match between PO/Receipt/Invoice based on retailer-specified thresholds

Entry

• EDI import

• Evaluated Receipts

• Direct Store

Delivery

• Vendor managed

Inventory

• Consignment

• Deals

• Manual group entry

Payables/Posting

• Best term calculation

• Open interface to

Financials

Matching

• Automatic 3-way matching

• Summary level and detail

level if necessary

• Configurable Supplier

tolerances

• Manual online match

Resolution

• Line discrepancy

separated

• Routing capability

• Reason code driven action

• Cost and/or quantity

adjustment

• Automated matching increases efficiency and accuracy

• Manage by exception to handle large volume of invoices

• Flexible tolerance and workflow to incorporate business rules

Document Entry

Automated Matching

Resolution Posting