GLOBAL SUPPLY CHAIN MANAGEMENT

CASE: GS-25

SGSCMF: 001-2001 DATE: 07/17/01 (REVISED 03/23/05)

This case was prepared by Paresh Rajwat under the supervision of Professor Hau Lee at Stanford University. The case was prepared as a basis for class discussion and not to illustrate either effective or ineffective management practices. Copyright 2002 by the Board of Trustees of the Leland Stanford Junior University. All rights reserved. To order copies or request permission to reproduce materials, e-mail the Case Writing Office at: cwo@gsb.stanford.edu or write: Case Writing Office, Stanford Graduate School of Business, 518 Memorial Way, Stanford University, Stanford, CA 94305-5015. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means electronic, mechanical, photocopying, recording, or otherwise without the permission of the Stanford Graduate School of Business.

SEECOMMERCE: ENHANCING SUPPLY CHAIN VELOCITY AT

DAIMLERCHRYSLER SEECOMMERCE ENCOUNTER: MARCH 2000 Jerry Quell was in a quandary. His company had begun to take a strategic look at its supply chain two years before and had reinvented most of its major supply chain systemsdemand collection and forecasting, order processing, inventory control, and warehouse managementover the previous five years. Because the companys supply chain was mature and had been the focus of numerous improvement initiatives, Quell was in a dilemma as to how he might further improve demand forecasting and minimize inventory for the service parts group while ensuring that customers were not left waiting for replacement parts at a dealer. Quell was the senior manager of Materials Operations Planning for the Mopar Parts group at DaimlerChrysler. He had been with the company for over 15 years, and was involved in most of the supply chain initiatives previously undertaken by the division. Recently, in 2000, Quell became aware that one of DaimlerChryslers weak areas was supply chain collaboration, and that there was a pressing need for better visibility in order to shrink Mopars decision-cycle times and react to unplanned changes promptly. As he was exploring alternatives for addressing this challenge, he came across a company called SeeCommerce, which had recently received recognition from AMR Research. SeeCommerce provided performance management solutions, a topic in which Quell was interested. Accordingly, out of curiosity, he picked up the phone to learn more about SeeCommerces offering.

SEECOMMERCE: HISTORY

Founded in 1996, SeeCommerce was a Palo Alto-based company with over 120 employees. Since its inception, SeeCommerce had received infusions of over $66 million in venture capital from A-list investors such as Amerindo Investment Advisors, Integral Capital Partners, Insight

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Capital Partners, Sierra Ventures, Voyager Capital, and others. The company had also been awarded the APICS Certificate of Excellence in Innovation, Arthur Andersen Best Practices Award, AMR Researchs 12 Hot New Applications Market Leader, Red Herring 100, Upside Hot 100 and the Enterprise Outlook Investors Choice Top 10. As a result, it was clear that SeeCommerce was the leading provider of supply chain performance management and improvement applications, designed to enable business managers and trading partners to continuously manage and improve business performance across complex supply chains. SeeCommerce's products had been adopted in a wide variety of industries, including high-tech, automotive and packaged-goods manufacturing, retail and financial services. In addition, industry-leading companies such as Ariba, Siebel Systems, Deloitte Consulting, KPMG, and IBM Global Services had endorsed SeeCommerce's products through strategic partnerships. Furthermore, SeeCommerce had referenced more than 30 customers across the United States and Europe, including Nestl Germany, Pfizer, Philips, Polaroid, PNC, FIAT, Qwest, DaimlerChrysler, Applied Materials, Charles Schwab, and SCI.

COMPLETING THE SUPPLY CHAIN MANAGEMENT CYCLE

Quell was interesting in understanding what had made SeeCommerce so successful, and why it outstripped its competitors in so many performance areas. To learn more, he began to investigate the product. SeeCommerce was intended to be an improvement on a basic business process that was commonly used to operate a supply chain: the PlanExecutePlan Cycle (Exhibit 1). Planning solutions provided by i2, Manugistics, Adexa, and others gave what-if capabilities to their users to help to improve a companys performance. Similarly, order processing and management solutions provided by Oracle, Commerce One, SAP, Ariba, and their competitors enabled the execution of transactions. However, without a transparent and real-time view of the supply chain, managers confidence could ebb and, as a result, the entire supply chain would slow to a crawl. Most managers still relied on manual reports for performance data on each connection (manufacturing, warehousing, transportation, etc.) of the supply chain. If managers could not look across the enterprise at the various links to access information and tune performance, it was difficult to act fast and address problems before they occurred. SeeCommerce provided the required transparency by adding a Measure dimension to the traditional supply chain cycle, thus completing the management cycle to PlanExecuteMeasurePlan. This new dimension enabled better performance management, provided easy access to all data in the supply chain and offered a what-is capability to business users. By adding this crucial step, SeeCommerce had integrated all the components (event management, visibility and business processes) of supply chain performance management and improvement, to provide a complete solution. Increasing Visibility through SeeCommerce Prior to 2000, supply chains consisting of suppliers and customers were usually connected through various channel masters that provided the service of purchasing, transportation, planning, and sales, etc. (Exhibit 2). Each channel master acted independently. Because of this independence, they did not have the visibility of other channel partners, and collaboration among them was infrequent. SeeCommerce envisioned the post-2000 supply chain with suppliers and

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customers connected through a common business-to-business (B-to-B) home page and a single channel master center which would enable all supply chain processes (such as supply, demand, material, production, inventory, and fulfillment) to share a common data pool (Exhibit 2). The key to the post-2000 model was transparency, making collaboration the big differentiator. The suite of SeeChainTM applications (Exhibit 3) provided by SeeCommerce allowed companies to measure the accuracy of forecasted demand, raw material availability, production performance against plan, finished goods availability, customer service fulfillment etc. at various stages and collaborate on their performance over the Web. Data in different information systems at different locations could be assessed, aggregated, compared, and shared. This dramatically reduced the time it took to make decisions and adapt to market trends. (Exhibit 4 depicts the measured impacts through SeeChainTM on decision-cycle time and other performance parameters.) The solutions increased supply chain velocity by replacing manual performance systems, or systems that did not exist, with automated measurements and alert systems. SeeCommerce empowered business managers to see problems and effects over time, to take corrective actions and gain measurable supply chain improvements. The solution also helped business users benchmark company performance against industry standards, reduce operational costs by automating information distribution, generate fewer printed reports by making information available anytime, from anywhere, using a Web browser; and also provide Web-based access to critical information across the total supply chain. As a result, executives did not need to be at their desks at all times but could receive e-mail alerts and simply log onto the network and access the required information. They could immediately see performance measurements from demand to supplyacross product lines, distribution centers, and their entire organizationfrom a single screen view and could have all of the relevant information at their fingertips, with explanations for changes in performance. (Exhibit 5 gives a sample of potential competitors of SeeCommerce.) Impact of Timely Performance Measurements Through SeeChainTM In an age of hyper-competition, continuous innovation and new product development is a key to success. Companies need to manage the time to new product introductions, and alert suppliers about product changes during and between product life cycles. In the front part of the product life cycle (Exhibit 6), the contribution of the new product to a company increases with time, while in the back part of the life cycle, the contribution decreases with the passage of time. Ultimately, the product is replaced by another new product. Managing successful product rollover requires close tracking of operational data and demand trends of a product. SeeCommerce provided this tracking and performance measurement functionality. It supplied product performance snapshots and helped managers identify the turning points when the contribution of the product began to diminish. If production plans were to be changed, suppliers could be immediately notified. This way, the product can be transitioned smoothly from one generation to the next. Improved product demand visibility helped companies to better plan the timing of the ramp-up phase of the new product cycle relative to the previous product, enabling a quick product transition and avoiding costly product

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rollovers. Reduction in the decision-cycle time could result in huge savings in inventories, and finished goods carrying costs (as shown in Exhibit 6). Similarly, SeeChainTM applications could quickly diagnose other problems (such as supply shortfalls, backlog accumulation, delinquent deliveries, and other supply chain operational problems), as well as pinpoint opportunities across the global supply chain. When performance went outside acceptable levels, SeeChainTM automatically alerted business managers so that they could quickly investigate, collaborate and take corrective action, all via the Internet.

THE MOPAR PARTS GROUP OF DAIMLERCHRYSLER

At the beginning of the twenty-first century, DaimlerChrysler was the world's leading manufacturer of commercial vehicles with brands like Mercedes-Benz, Chrysler, Jeep, Dodge, smart, Freightliner, Sterling, Western Star, Thomas Built Buses, Setra, Orion, American LaFrance, MTU, TEMIC, and others. With global alliances with Mitsubishi Motors Corporation and Hyundai Motor Corporation, the company recorded automotive sales of 4.2 million passenger cars in more than 200 countries, and revenue of over $144 billion in 2000. The company had 400,000 employees and manufacturing sites in 37 countries. The Mopar group was the spare parts division for the Chrysler Group of DaimlerChrysler and a primary distributor of parts and accessories for all Chrysler, Dodge and Jeep dealerships in the United States. The group managed more than 280,000 original equipment parts procured from about 3,000 different suppliers, and processed over 220,000 dealer order lines per day. Mopars distribution supply chain consisted of four national distribution centers or central warehouses (CW) and 15 domestic field parts distribution centers or regional warehouses (RW). Mopars automotive parts and distribution business relied on how effectively the company could forecast demand, manage parts inventory and fill customer orders. Mopar had maintained a five-year demand history for every dealer, and forecasted demand for about 1.8 million different SKUs (stock keeping units) at the RW level on a daily/weekly/monthly basis. These were then rolled up to part level, and a Distribution Requirement Planning (DRP) system was used to determine the required stocking level and the associated material acquisition with suppliers. Mopar released about 65,000 orders every week to its suppliers. Distribution and fulfillment of dealer orders were achieved through the use of dedicated delivery service (DSS). Referral dealer orders were handled by the UPS Logistics Group. It operated two Order Consolidation Centers. The UPS Logistics Group provided DaimlerChrysler with a multimodal transportation system into and out of those centers. More critical orders were consolidated and shipped via UPS, using one-day ground or air delivery service. Before SeeCommerce became involved, a daily cycle of order fulfillment at Mopar worked as follows (Exhibit 7): During the day, the global order processing system would try to fill part orders from dealers using inventory at the respective regional warehouse. Traditionally, Mopar had been able to achieve a fill rate of 89.5 percent from the stock at the regional warehouses. The unfilled orders were routed to the central warehouses and, by the end of the second day, these parts arrived at the dealers (if the central warehouses had the stock on hand). The average

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fill rate at the end of the second day was usually 92 percent. If the central warehouses did not have stock on hand, the orders were referred to other regional warehouses based on stock position. By the third day, Mopar could usually achieve a fill rate of 95.5 percent as a result of such inventory pooling. In the next two days, a resourceful inventory planner might start looking for parts that were in transit or available at suppliers, and use expedited shipments to get the parts to the dealers. Although expeditions could be very costly to Mopar, the average fill rate at the end of five days was 97.5 percent. Finally, the remaining 2.5 percent of unfilled orders were backordered and released when material was received anywhere in the distribution system. Quell, as senior manager of materials planning at Mopar, had been looking for ways to improve customer service levels and reduce the expenses associated with frequent expedited shipments. He recognized that the key was to have a continuous and tight process of performance measurements that would identify problem areas and opportunities in the service parts supply chain on a timely basis. In 1998, Mopar initiated a project to create tools that would allow the company to measure customer service levels. The project therefore required the development of a system of tools for the extraction of data from operational databases into datamarts using OLAP (online analytical processing) tools. After 18 months, a prototype system was created. Teaching all users proficiency with the new system was quite a challenge, as it was not user-friendly. The associated data files were also enormous. There were 220,000 dealer order lines per day from over 4,000 dealers. To monitor order shipment versus allocation was the goal. The complexity of the system was such that it was difficult to monitor performance on a weekly basis.

SEECOMMERCE AT DAIMLERCHRYSLER: APRIL 2000

At Quells request, the SeeCommerce team took a strategic look into the Mopar Parts Groups supply chain. It revealed tremendous opportunity of cost savings by improving performance in terms of lower inventory costs and better order flow. The key was to enhance supply chain visibility and shorten the reaction times to problems. The solution proposed by SeeCommerce showed a lot of promise, and since the previous internally developed system was going nowhere, Quell decided to give it a try. In fact, the Mopar Parts Group conducted an internal benchmarking study to evaluate what it would take to develop a similar solution in-house. They realized that their IT (Information Technology) group would require 9 to18 months to develop an internal solution. Also, since most of Mopars IT systems were mainframe based, the solution would not have utilized the latest peer-to-peer technology on which SeeCommerce was based. Peer-to-peer technology could provide the ability to dynamically unify diverse and widely distributed elements of contents, systems and services, without removing control from the peers on the network. By enabling peers to find and collaborate with each other at will, this technology could promote greater efficiency, openness, and choices for information systems. It could even enable a global virtual marketplace where anyone was literally enabled to conduct business with anyone else. The SeeCommerce project at Mopar started in April 2000. The SeeChainTM applications extracted transactions and planning data from a multitude of data systems. Data was retrieved from Mopars homegrown legacy ERP (Enterprise Resource Planning) system, which was based on IMS and DB2 on an IBM Mainframe, Forecast Planning and Inventory Planning System. The data was then organized and presented using SeeCommerces patented technology, from which

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metrics and key performance indicators (KPI) were calculated and reports generated, based on business rules and control hierarchies (i.e. the span of control for the respective KPIs, which affects the level of aggregation in the reports). Using personalized MyCommerce home pages, users could have the screen layout designed according to taste, and set up different forms of information retrieval (performance alerts, e-mails, reports and annotation notifications, etc.). SeeChainTM had a simple tree structure for navigation, which allowed users to easily probe and find performance indicators for different products/locations, and at different aggregation levels (see Exhibit 8). This way, users could get all required information in one place for fast decision-making. Based on the respective information, users could launch the appropriate application directly. Initially, Quell was expecting a payback by the end of year 2000, but SeeCommerce offered the payback within 12 weeks after implementation. After three months of using the SeeChainTM application, a cumulative fill rate of about 98.5 percent could be achieved (Exhibit 9) within the first three to five days. Advanced alerts of inventory and supply conditions at the regional warehouses, and improved visibility into supplier delivery quantity, timelines and quality enabled the immediate fill rates to improve by 1 percent, at the field parts distribution center (PDC) level. This improved fill rate represented an equivalent of $10 million savings annually in transportation costs by eliminating referral orders while increasing market share. Prompt creation of exception reports enabled early warning of potential problems and immediate reaction by inventory planners. Finally, increased flexibility allowed planners to address remaining inefficiencies in inventory management. SeeChainTM Demand, SeeChainTM Inventory, and SeeChainTM Supplier offered the Mopar Parts Group real-time supply chain performance visibility, and helped planning and forecast managers see how they were doing daily, in terms of forecasted demand versus actual shipments to dealers and stocking levels. As a result, managers could quickly pinpoint problems, take proactive actions, and promptly respond to unplanned changes. The applications improved business velocity by shrinking decision cycle times. The Mopar Parts Group discovered $4.5 million in avoidable on-order inventory within a week after implementation, and expected to save tens of millions per year from reduced safety-stock inventory and dealer order-line improvement. The use of SeeChainTM Supplier also improved supplier performance substantially. The Mopar group expected to reduce backorder of about 2,200 line orders out of 220,000 total line orders daily. Quell was pleased with the success of the SeeCommerce implementation:

SeeCommerce gave us information at our fingertips. We have 12 forecast demand measurements, 17 inventory measurements and 30 supplier performance measurements that allow us to keep a close watch over the key operating parameters. By reducing the decision cycle time we are now able to do many things. For instance, by reducing the forecasting error, we have reduced safety stock by $7.5 million within the first six months. We believe, with their help, we can further reduce safety stock by $20 million in year 2001. By improving the customer service level, we expect to save about $10 million of excess transportation charges.

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The SeeCommerce implementation was undoubtedly a great success. However, Quell was now faced with another major challenge. Since the economy had slowed down, he had to figure out how he could further improve the service supply chain in this environment. As he entered into the conference room for his meeting with top executives, he wondered which performance measures would be most critical for the Mopar Parts Group to monitor in this new era.

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Exhibit 1 Supply Chain Management Cycle

Source: Created by the authors from publicly available information.

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Exhibit 2 Pre and Post-2000 Supply Chain Environments

Source: Information provided by SeeCommerce.

SupplierSupplier

SupplierSupplier

SupplierSupplier

SupplierSupplier

ChannelChannelMasterMasterCenter Center SupplierDemand Material

ProductionInventory

Fulfillment

Customer Customer

Customer Customer

Customer Customer

Customer Customer

B2B PortalB2B Portal

Common DataCommon DataShared ProcessesShared Processes

PostPost --20002000

Fig. 2

Supplier Supplier

Supplier Supplier

Supplier Supplier

Supplier Supplier

Channel Channel Master Master

Purchase Purchase

Channel Channel Master Master Transp Transp

Channel Channel Master Master

Planning Planning

Channel Channel Master Master Sales Sales

CustomerCustomer

CustomerCustomer

CustomerCustomer

CustomerCustomer

Pre Pre - - 2000 2000

Fig. 3Fig. 2

SupplierSupplier

SupplierSupplier

SupplierSupplier

SupplierSupplier

ChannelChannelMasterMasterCenter Center SupplierDemand Material

ProductionInventory

Fulfillment

Customer Customer

Customer Customer

Customer Customer

Customer Customer

B2B PortalB2B Portal

Common DataCommon DataShared ProcessesShared Processes

PostPost --20002000

Fig. 2

Supplier Supplier

Supplier Supplier

Supplier Supplier

Supplier Supplier

Channel Channel Master Master

Purchase Purchase

Channel Channel Master Master Transp Transp

Channel Channel Master Master

Planning Planning

Channel Channel Master Master Sales Sales

CustomerCustomer

CustomerCustomer

CustomerCustomer

CustomerCustomer

Pre Pre - - 2000 2000

Fig. 3Fig. 2

SupplierSupplier

SupplierSupplier

SupplierSupplier

SupplierSupplier

ChannelChannelMasterMasterCenter Center SupplierDemand Material

ProductionInventory

Fulfillment

Customer Customer

Customer Customer

Customer Customer

Customer Customer

B2B PortalB2B Portal

Common DataCommon DataShared ProcessesShared Processes

PostPost --20002000

Fig. 2

Supplier Supplier

Supplier Supplier

Supplier Supplier

Supplier Supplier

Channel Channel Master Master

Purchase Purchase

Channel Channel Master Master Transp Transp

Channel Channel Master Master

Planning Planning

Channel Channel Master Master Sales Sales

CustomerCustomer

CustomerCustomer

CustomerCustomer

CustomerCustomer

Pre Pre - - 2000 2000

Fig. 3Fig. 2

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Exhibit 3 SeeCommerce Suite of Products1

SeeCommerce enables business managers and trading partners to continuously manage and improve business performance across complex supply chains. The SeeCommerce suite of SeeChainTM applications drive performance management, organizational synchronization and workflow coordination throughout the entire supply network. SeeCommerce improves a companys ability to compete in the global marketplace, significantly improves ROI and expands market share by optimizing supply chain performance and creating effective supplier relationships. SeeCommerces applications leverage domain expertise in online analytical processing (OLAP), data warehousing, knowledge management, Internet technologies and supply chain management. The products are based on industry standards such as JavaTM, XML, relational databases and standard Web browsers. The SeeChainTM family includes the following seven applications: SeeChainTM Supplier SeeChainTM Supplier measures and improves supplier performance, identifies top performers, tracks performance over time and negotiates performance-based agreements. The application also helps in collaboration of supplier-related information to correct problems and improve performance. SeeChainTM Demand SeeChainTM Demand application measures and improves demand forecasting performance, measures sales accuracy by comparing forecasted sales to actual sales, improves forecasting accuracy of items not meeting acceptable levels and thus enables better management of raw materials inventory, production planning and FGI to ensure that supply meets targeted service levels. SeeChainTM Materials SeeChainTM Materials measures and optimizes raw materials availability by measuring inventory levels of raw materials and semi-finished goods. The application also helps in identifying potential inventory shortages and sees value of excess inventory in warehouses or distribution centers. SeeChainTM Production SeeChainTM Production measures and improves production performance by measuring the accuracy of the production plan for a time frame. It identifies which products may affect customer service levels and notifies sales representatives to manage corresponding customer

1 For detailed product descriptions and information refer to www.seecommerce.com/products/. SeeCommerce,

SeeChain, Dynamic Commerce Server, the SeeCommerce logo, and the SeeChain logo are trademarks of SeeCommerce in the USA and other countries. All other products and company names may be trademarks of their respective owners.

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relationships. The application also helps in determining if manufacturing capacity is able to support the planned production. SeeChainTM Inventory SeeChainTM Inventory measures and optimizes FGI levels by measuring inventory levels and identifying potential shortages of finished goods. The application also helps in managing finished goods levels to avoid obsolescence and take into account the product life cycles. SeeChainTM Fulfillment SeeChainTM Fulfillment measures and improves order fulfillment performance, measures on-time shipping performance and improves customer satisfaction levels by identifying shortages that impact customers. The application also helps in managing impacted customers, thus signaling to improve future deliveries, ensuring customer retention and market share growth. SeeChainTM Logistics SeeChainTM Logistics enables the timely delivery of the right product, in the right quantity, to the right location at the right cost. It provides companies with visibility into supply chain velocity, reliability of process accuracy and asset utilization for the logistics network. Dynamic Commerce Server is a Web-centric enterprise information portal that allows all levels of users - management, employees, customers and suppliersto share and collaborate on a wide range of corporate information within a secure environment. Through their existing browsers, users can access all information to which they have security privileges. They can dynamically navigate, publish, subscribe, collaborate, design, generate and share the information in context in an easy-to-use single screen view. Source: Information provided by SeeCommerce.

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Exhibit 4 Measured Impact on Decision Cycle Time and Other Parameters

Decision Cycle Time

RevenuesInventoriesOperational ProductivityAdministrative ProductivityDepreciationScrapDelivery Lead TimesTime-to-MarketReturn on Assets

0% 20 40 60 80 100%

= AverageImprovement

DCT Reduction Impacts

Source: Information provided by SeeCommerce.

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Exhibit 5 A Note on Potential Competitors

At the time the case was written, SeeCommerce did not have any direct competitor providing applications like SeeCommerces SeeChainTM solutions. Instead, there were companies supplying tools that addressed specific features and functions. These tool vendors could provide a basis for others to develop packaged applications. Typically, these companies fell into three categories: visibility, exception/event management, and business process management. Supply chain performance management was a comparatively new market, so competition was moderate. Some of the companies in this broad arena were InfoRay, Vigilance and Oracle. Unlike SeeCommerce, most of the companies in this market provided a portion of the complete performance measurement and improvement solution. Inforay aimed at providing visibility, Vigilance focused on event management while Oracle strove to address the business process aspect. Oracle (streamlining business processes) Oracle Corporations software products could be categorized into two broad areas: systems software and Internet business applications software. As an e-business solutions provider, Oracle integrated and streamlined both internal and external processes for any business, allowed users to access information, and automated the performance of specific business data processing functions for financial management, procurement, project management, human resources management, supply chain management, and customer relationship management. InfoRay (visibility) InfoRay provided personalized business monitors and infostructure for performance measurement in high-speed businesses. InfoRays patented solutions allowed users to track key business indicators to impact a companys performance at any level. Founded in the Netherlands, InfoRay moved its headquarters to Cambridge, Massachusetts, in 1999 and had offices in the U.S. and Europe. Vigilance (event management) Vigilance, Inc. provided a supply chain monitoring/event management system that enabled people to create personal 1:1 agents that detected any desired event, ubiquitously notified the appropriate community, and collaboratively resolved an event through workflow. Source: Compiled by the authors from publicly available information.

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Exhibit 6 Potential Improvements Realized through SeeChainTM

Time

FGILevel

$$$

Without SeeChain

UsingSeeChain

Trend Identified / Demand Drop

Old Product Completely Replaced

Reduced Carrying Cost

Fig. 5

Note: The top line represents the old way of doing business; the bottom line represents the new way. Traditionally, the trend would not be identified until time period 6. SeeChainTM enables the trend to be identified in period 2. Source: Information provided by SeeCommerce.

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Exhibit 7 Daily Order Fulfillment Performance Prior to SeeCommerce

Source: Information provided by SeeCommerce.

Unfilled orders immediately referred; orders created

Day 1

Weekly Plan

RW fulfills dealer orders

89.5%

Unfulfilled orders referred immediately

Day 2 Unfulfilled orders shipped from CW

92.0%

Day 3 Unfulfilled orders sourced via

cross-ship from RW

94.5%

Days 4 & 5

Unfulfilled orders sourced from in-transits headed for alternate RW

Other, unfulfilled orders drop-shipped from supplier

Remaining orders backordered 96.5%

Cumulative Fill Rate

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Exhibit 8 The Tree Navigation Structure of SeeChainTM

Source: Information provided by SeeCommerce.

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Exhibit 9 Daily Order Fulfillment Performance with SeeCommerce

Source: Information provided by SeeCommerce.

Unfilled orders referred immediately

Day 1

Weekly Plan

Advanced alerts and improved visibility into supplier delivery quantities, timelines and quality enables improved fill rates

Exception report of unfulfilled orders created

Day 2

Increase level of service from RW decreases the amount of cross shipment and drop ship and lowers expediting costs.

Days 3-5

Increased flexibility allows planners to address remaining inefficiencies in inventory management

Cumulative Fill Rate

97.5% --> 98.5%

98.5%

91.5% --> 92.5%

96.5% --> 97.5%