Controlling Cost in the

Private Label Global Supply ChainThrough Improved Trade Content,

Integration, and Enterprise Collaboration

Our Best Practice Experts

Matt GersperPresident, Global Data Mining, LLC

& Customs Info

Donny AskinCEO, Arigo

Connect with Us

Twitter #vhswebinar

Visit Arigo Blog• www.arigo.com/blog

Follow Arigo on Twitter• @ArigoSoftware

Follow Global Data Mining on Twitter• @gdmllc

The Virtual Handshake

Connect to your trading partners through:

• Trade content

• Data integration

• Enterprise Collaboration

Today’s Takeaways

Control/Improve time-to-market with Enterprise

Collaboration across the private label global supply chain

Control/avoid common private label

global supply chain disruptions

Control/cut costs through business

process improvements in private

label global supply chain

Trade Content

Data Management

Applications

Visibility

Intelligence

Collaboration

Draining the Global Supply Chain

Hang on

to cash!

Draining the Global Supply Chain

Draining the Global Supply Chain

Draining the Global Supply Chain

Draining the Global Supply Chain

Draining the Global Supply Chain

Draining the Global Supply Chain

AAFA Findings

• Cost challenges in supply chain

• Rick Darling – President, LF USA: • Labor Deflation Period has ended

• Logistics Costs rising

• COGS will rise 3-5% per year over the long term

In 2010, Best-in-Class Private Label Retailers

indicated need for improvements in three key

areas of the global supply chain:

Cost Reduction

Sourcing Operations

Vendor Collaboration

Aberdeen Research, 2009

Aberdeen Findings

Cost reduction

• 30% reported increase in lead times for delivery of product

from suppliers/trading partners due to delays in

procurement, negotiations, order cycle times, and trade

promotions.

• 25% reported higher transportation and distribution costs

compared to budgeted or forecasted costs.

Aberdeen Research, 2009

Aberdeen Findings

Sourcing Operations

• 49% report inadequate inbound and outbound visibility and

processes with suppliers and trading partners.

• 48% report lack of real-time sales data visibility to suppliers

and trading partners.

• 42% report lack of real-time order status visibility, payment

& negotiation processes with suppliers and trading partners.

Aberdeen Research, 2009

Aberdeen Findings

Vendor Collaboration

• 55% report late, inaccurate, or missing data from suppliers

and trading partners.

• 55% report lack of staff to manage retailer-supplier

relationships.

• 47% report lack of communication internally across

departments.

Aberdeen Research, 2009

Framework for Optimization

Trade Content

Data Management

Applications

Visibility Intelligence Collaboration

Trade Content

Data Management Services

Data Management Apps

Business Process Improvement:

The Remaining Opportunity to Control Margin

The Arigo Desktop

Enterprise Collaboration

Enterprise Collaboration = Integrated IM, Email, Video, Audio, and Community

Attach and archive at the item level

Enterprise Collaboration =

Cost Reduction

Communicate in real time, near-real time,

synchronously or asynchronously

• Communicate to solves

issues in real-time, globally

• Better negotiations with

suppliers and trading partners

– protect your margin!

Today’s Takeaways

Control/Improve time-to-market with Enterprise

Collaboration across the private label global supply chain

Control/avoid common private label

global supply chain disruptions

Control/cut costs through business

process improvements in private

label global supply chain

Trade Content

Data Management

Applications

Visibility

Intelligence

Collaboration

Taking the Next Step…Register for our next free webinar

What: Trade Optimization Hits Mark for CFO’s Top 2010 Concerns

When: Thursday, July 15, 2010 from 2:00 pm - 2:30 pm EST

Where: Register by visiting http://bit.ly/d8Zxz5

• Call us directly at

928-567-7191

• Visit the website

http://gdmllc.com

Register for a full demo of

Enterprise Collaboration

• Online http://bit.ly/bSURQd

• Call us directly (978) 528-2284

• Visit the website & blog• www.arigo.com

• www.arigo.com/blog

Taking the Next Step…

Questions?