16 mile solutions investor presentation october 2008

8/14/2019 16 Mile Solutions Investor Presentation October 2008

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EDI Web 3.0 More Tools, Less Cost

Mark Pattison, Founder and CEOOctober 2008


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16 Mile has the Solution

Revolutionize EDI with a SaaS solution thatdramatically reduces cost by 40%.

In todays economy, everyone is looking to reduce

the bottom line. No other company can offerdramatic cost savings while increasing their EDIefficiency.

16 Mile will create a cash cow over time likeComcast or any of phone companies.

What we do:


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What does this mean?

A company generating $25 Million in Revenueis likely to pay $25,000 EDI cost.

16 Mile OV can easily save a company at least $7,000 or more!

A company generating $1 Billion in Revenue islikely to pay $25 Million in EDI cost.

16 Mile OV can easily save a company at least $7 Million ormore!!


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Market Opportunity

The supplier relationship market (SRM) is expected to grow at acompounded rate of 8.2% from $1.6 billion in 2006 to $2.35 billion

in 2011.

Today, 35% of small- to medium-size companies those earningannual revenues of $30 million to $1 billion still use manualprocesses for communicating with their suppliers.

0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

2006 2007 2008 2009 2010 2011

Worldwide Supplier Relationship Market(millions of dollars)

Source: ARC Advisory Group 2007


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Market Summary Breakdown

Of 309,909 U.S.-based businesses, 79,804 fall in in our target market companies with $30 million to $1 billion in annual revenue.

We only need 2,200 companies as customers (2.75%) to reach our annual

revenue goals.

Key:

A = annual revenueB = number of U-S.-based companies withthat revenue

A B

No incentive for current competition to change. They all charge based ontransactions and would have to restructure their entire business toadapt which would mean massive revenue loss.


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Supply Chain Order Process Today

$$ $ $

$ $ $ $$ $ $

$ $ $ $ $ $ $ $ $ $ $$ $ $ $ $ $ $ $ $ $ $

$ $$ $

$ $$ $

$ $$ Vendor 1

Manufacturer

Logistics

BankRetailer

The competition charges for every message/

Kilobyte that is sent. This is very costly.

TransactionCharges

TransferofPOData


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16 Mile SaaS Approach

Bobs Shoes

Logistics

Bank/FactorNordstrom

We charge a seat license with bundled tools to

process orders.

NoTransactionCharges

DataMovesFree

Chinese Factory


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16 Mile OV (OV = order visibility)

Our inaugural product, 16 Mile OV, is a hosted solution

that differs from its competitors if five important ways: New Pricing Model: Results in 50-100% lower EDI costs, plus no

charge for transactions to and from suppliers sent via AS2 andFTP. Others charge by kilobytes for each transaction.

Multi-dimensional Order Visibility: Delivers real-time, multi-

dimensional order information across supply networks, alongwith EDI (electronic data interchange). Others only offer EDI.

New Technology: Based on new database structure thatintegrates data from Oracle, VANs and other back-end systems,results in better end-to-end management of supply and demand.

Built-in Tools: Unites EDI and order visibility with tools andreporting capabilities for vendor performance, event alerts,inventory tracking, response management, scanned-basedtrading, and more.

Mobility Enabled: 16 Mile OV can mobile enable data extra toany Smartphone or PDA.


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16 Mile vs. the Competition

Gray boxes = capabilities


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Milestones

PRODUCT MILESTONESBeta testing completed January 2007 (with Starbucks)

Product launch April 2008SALES MILESTONESCLOSED DEALS: Robins and Meyer, Olympia Sports, Carbon 5, Inmoda, MelloSales, Staub USA, The Pattison Group (translating data between them andretail giants Adidas, Columbia Sportswear, KB Toys, Nike, Reebok, SamsClub, Starbucks, Target, Wal-Mart, PetSmart, Dillards & more)

PENDING PROPOSALS: PetFood.com, Safeway, Kassatex, Venture Products,Red Wing Shoes, Capacity, K&M International, plus 20 others

IN DISCUSSIONS: Nordstrom, Starbucks Coffee, Restoration Hardware,Schenker Logistics, True Religion Jeans, Baden Sports, Car Toys

SALES TEAM: Hired supply chain experts from key competitor, Houston-

based Dicentral.OTHER MILESTONES

LEGAL: Perkins Coie agreed to provide legal representation as part as itsEmerging Company program.

PATENTS: 1 process and 1 technology patent pending for warranty claimsfacilitation.
http://walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=316


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Financial Summary

GOAL: Reach 2.75% of our target market for success

Detailed revenue model available upon request


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Experienced Team

Founder has experienced supply chain issues first-hand:

Founded 13-year-old branded

merchandise and import co. 1,000s of transactions, 100s of

customers

10-year Preferred Vendor ofStarbucks Coffee

Manufacturer of all Starbucksoutdoor umbrellas and basesfor North America, LatinAmerica, and Asia

Co-founder, 2000

Makers of coffee table games

700 retail locations, sevencountries

Family Fun Toy of the YearAward 2002 and 2003

Angel and VC funding Acquired December 2006


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Board of Advisors

DEAN BAKER: Founder of Asset Recovery Specialist Inc. (

www.equipmentrecovery.com), asset management for banksand leasing companies

JOHN BAUGHN: Former partner of Accenture for businessand IT architecture, managing over $100 million dollars

DIANE DEWBREY: CEO/President of Foundation Bank

TIM DOWLING: VP Business Development McAfee

TERRY DRAYTON: Co-Founder of Home Grocer, Count Me In,Ramp Technology Group (www.RampGroup.com)

DAN NORDSTORM: Former CEO ofwww.Nordstrom.com,current CEO of Outdoor Research Company (

www.outdoorresearch.com)

Each advisory member has invested in 16 Mile Solutions.
http://www.equipmentrecovery.com/http://www.rampgroup.com/http://www.nordstrom.com/http://www.outdoorresearc.com/http://www.outdoorresearc.com/http://www.nordstrom.com/http://www.rampgroup.com/http://www.equipmentrecovery.com/


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Funding Requirements

Visibility, Efficiency, Lower Costs

Prior Funding:$200,000 from founder

Series A Raise @ $1,500,000$1,500,000 raised

Pre-money valuation: $2.5 million

Preferred shares .35

Series B Raise @ 2,500,000 Capital will allow us to:

Scale

Acquire working capital

Hire infrastructure (CTO, CFO, sales, marketing, support)

Launch channel partner program (domestic and international)

Continue public relations, search engine optimization, marketing

Extend features of 16 Mile OV

Complete development of Warranty Claims (currently in beta)


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Where Well Be in 3-5 Five Years

$70 million in revenue

More than 2,000 clients worldwide

Established international channel partnerships

Next-generation status in retail compliance

Recognized market leader in automating supply chaincollaboration, communication, and warranty claims

Exiting through acquisition by company withcompatible fit . . .
http://www.i2.com/index.cfmhttp://www.perfect.com/index.htmlhttp://www.oracle.com/technology/index.htmlhttp://www.manh.com/


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EDI Web 3.0 More Tools, Less Cost

Mark Pattison, Founder and CEO712 N. Motor Place Suite 3

Seattle, WA 98103206.675.1066206.675.1099

[email protected]
mailto:[email protected]://www.16milesolutions.com/http://www.16milesolutions.com/mailto:[email protected]


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Pricing Model

Software as a Service (SaaS) Based on a seat license and

sliding scale

Transaction pricing (for VAN-EDImanagement): $0.25/kb,decreasing if competitionincreases. Never below cost plus30-40%.

Chart prices derived from competitive analysis

models between 16 Mile OV and other

solutions operating in the hosted EDI

market.

Seat Licenses Price Per

Number of Seats Seat

1 to 10 $ 5,000

11 to 19 $ 4,500

20 to 49 $ 2,700

50 -99 $ 2,100

100 to 200 $ 1,700

Annual seat license 20%

Setup (Per retailer) $250

Map to client environment by format

X.12 (Custom format)* $2,500

XML $1,000

ASCII $500

Packet (In increments of 10 $1,000

Training $0

Support $0

16 mile solutions investor presentation october 2008

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