next evolutionary wave. the new walmart hard lines on-line delivery

Poly Wheel, llc (PW) to

Deliver On-line Bicycle

Sales to Walmart

Customers in - 24 Hours

PWi ‘s innovative on-line, on-site

assembly and delivery services disrupts a

cottage industry, assembly contractors.

Disrupting Assembly Services at Walmart

Delivering On-Site, On-

Line Assembly Services

RightNow!

A Disruptive Business Model of Java EE

Middleware & Social Media Technologies:

• Improving end-to-end WO transactions

by 54.3%, 3rd Qtr. 2013

• Benchmark quality wage production

volume by 54.3%

• Reducing cycle cost PWO by 44.4%, 4th

Qtr. 2013Disrupting Assembly Services at Walmart

From 2013 – To Now!

On-line, On-site Bicycle Assembly &

Delivery Services

Next evolutionary wave

The New Walmart



Poly Wheel, llc (PWi), a national

account, is the fastest growing, and

currently the largest prime federal

semi-manufacturing assembly

contractor for the Army Air Force

Exchange Services (AAFES), a U.S.

Department of Defense (DOD) agency.



PWi, also has an increasing volume of

commercial contract accounts with the

Walmart Corporation, and is scheduled

to begin executing a Web to mobile

on-line, on-site assembly and delivery

services for selected AAFES’ and

Walmart’s registered customer, as a

pilot project.


Doug McMillon Walmart's New CEO

Countering new challenges

Amazon and Dollar Stores disruptive threats

Next Evolution Wave

The NEW Walmart

Challenges & Solutions


Status: 2013 Looking back • Raised payroll

taxes

• Cut food-stamp benefits

• Stores sales drop

• Budget suffered


Status: 2014 US Walmart 4th Qtr. Fiscal 2014

Below USD1.60 -1.70

3,275 supercenters, core US business

90% of Americans shop at Walmart once a year

Status: 2014

warns of

weakness 4th Qtr. Fiscal 2014

Below USD1.60 -

1.70

Struggles Against

Amazon for

Market Dominance

SWOT: 2014 Strength Independents sell

in side Walmart’s portal 5M items, 2013

Walmart labs roll out apps that ‘scan shop’

Five to ten new on-line warehouses

-


SWOT: 2014

Strength 2.2 million

employees

3,275 supercenters

core US business

90% of Americans

shop once a year

-


SWOT: 2014

Weakness

US Congress laws

impact shoppers’ purse

No avail 24 hour on-line

shopper list of items for

pickup (OLSLIP, OsliP)

5 days lag: Site to store

& 3 days lag:assembly to

on-line customer


SWOT 2014 Weakness Sustainability

challenges with waste (hard lines) boxes

No ‘24 hours on-line retail space’ at supercenters for on-line shopper list (of) items (to) pickup (Oslip)


SWOT: 2014 Opportunity accelerate roll-out

of small formats stores:

Opening: 270-300 small-box stores in 2014

Breakdown: 200 community markets & 100 Walmart express stores

SWOT: 2014

Opportunity

-Walmart will open

120-150 smaller

grocery shops, only

just 115 supercenters

- Still-smaller “express

stores” into Urban,

Rural, campus, and

community markets


AZ Campus: 5k or 465 sq. m

SWOT: 2014

Opportunity

-Express pharmacy is

located:

- left of the main

store entrance

- Easy in and out

- limit to cross-

category purchases


5k or 465 sq. m

SWOT: 2014

Opportunity

-New chief of e-

commerce Neil Ashe,

to match scale, and

speed by 2016

-AMZN, fast-moving

target

Poly Wheel (PW) has

designed a solution

-How?


SWOT 2014

Threats- From the Top of the

Market:

- -Amazon has friendly

“On-line One day

local pick/up strategy


SWOT 2014

Threats- From the Bottom of

the Market:

- -Dollar stores sells at

rock-bottom prices

and located in closer

to shoppers’ homes


Anywhere, Anytime

Delivery to Walmart’s

On-line Customers

An Everyday Low Price On-line,

On-site Assembly & Delivery

Service Model.



Justifying The Risk

(JFR)?

JTR Benefits - Innovation!

WALMART: A Walmart approved, secured PWi hard lines (HL)semi-manufacturing assembly plant:

Facility lease prepaid via Walmart chargeback on PWi ‘s invoicing

Better, faster cheaper assembly and delivery services based on analytical forecast


JTR Benefits – A Seamless

Capture/Order/Fulfillment

WALMART: Fulfilling assembly and delivery of real time fully assembled HL(s) to Walmart’s retail floor, upon demand via:

Eliminating “order promise”

Bring to zero unassembled HL space

Better, faster assembly and 24 hour optional customer delivery service


JTR Benefits - Seamless

Customer Experience

Fulfilling assembly and delivery of real time fully assembled HL(s) to Walmart’s retail floor, upon demand via:

Oracle CX RightNow Cloud Services

Oracle Manufacturing Solutions

Oracle Order Fulfillment Solutions


CUSTOMER: To satisfy a high demand for on-line 24 hours assembly & home delivery services:

To secure:

Sustainable, flexible price structure

affordable, mass production assembly and delivery services

Poly Wheel, llc‘s Mid Atlantic Regional Assembly Center Pilot Project (PW/MARAC)


JTR Benefits –A 24 Hour

Delivery Demand Growth!

Enhancing Walmart’s Customer Experience

by:

Enhancing STRENGTH

Suring up WEAKNESS

Extending OPPORTUNITIES

Neutralizing THREATS


Justifying the Risk

Enhancing Walmart’s Customer Experience

by:

Enhancing STRENGTH

Suring up WEAKNESS

Extending OPPORTUNITIES

Neutralizing THREATS


Converting Weakness to

Strength… How?

SWOT 2014 Weakness

US Congress hit shoppers’ budget

No available ‘24 hours on-line retail space at supercenters due to unassembled hardline (HL) storage


Converting

weakness to

Strength: Adding enhancing

value to on-line retail

customer experience

(CX) & yet comply with

everyday low pricing

strategy

SWOT 2014 Weakness

No available ’24 hour’ delivery of on-line selected list (of) items (for) pickup (OSLIP or Ol*Slip) and added delivery to on-line HL shoppers

* Ol (on-line, in the cloud)


Converting

weakness to

Strength: Neutralizing THREATS

by providing an

optional 24 hour OlsliP,

added delivery request

in combination with

on-line HL shopping

SWOT 2014 Weakness

No available 24 hour on-line assemble of hardlines for shoppers

No available optional on-line 24 hour delivery to shopper’s home delivery of assembled hardlines


ConvertingWeakness toStrength:

PWi’s Oracle CX Contact Center will offer on-line shopper’s 24 hour assembly booking

24 hours pick up and delivery of OlsliP from PWi’s Assembly Center supporting request shoppers of on-line HL retail merchandise

SWOT 2014 Weakness

No avail 24 hour on-line shopper list of items for pickup (OLSLIP or Olslip)

Early morning shoppers expose to mounting risk of injury from HL boxes stored the night before



Neutralizing THREPW Center Wows on-line shoppers w/ 24 hour assembly & delivery

Manage on-line supply chain logistics of store to PW Assembly Center in 24 hours from PW’s Ctr. or support shopper’s Olsliprequest

SWOT 2014 Weakness

No available on-line space at supercenter due to HL storage

Extra Burden cost of $1K per day for trailer/container storage of bikes and assembly merchandise



Double win/win for space by removing all HL pallets off of Walmart site – store delivery trucks to be PW center for pre-assembly & storage

Core Objective1: Price

Structure & Flexibility

To satisfy a high but unavailable demand for assembly & delivery of children and adult bicycles within Walmart’ s everyday low price structuring;

Option 1:Open Purchase Order;

Or

Option 2:Annual Fix Price.


Option1: Current Pricing

for Bicycles.

Option 1, current option being executed by Walmart & Poly Wheel, llc. Open Purchase Order:

$12 per 18” bicycles and below

$13 per 20” bicycles and above

Note: For more information. See current contract details


Option2: Proposed Annual Fix

Cost(AFC)Pricing for Bicycles.

Part 1: A proposed AFC executed by separate Walmart vendor contract

Annual Fix Cost (AFC):

$10 per 18”(down) bicycles: $1.2M

$13 per 20”(up) bicycle: $1.3M

Fuel cost for every 200k bikes Delivered:$160k

T


Option2: Proposed Annual Fix

Cost(AFC)Pricing for Bicycles.

Part 2: Continued executed a part 2 of Walmart & Poly Wheel Contract:


Purchase of 10 trucks: $100k

Bonding +Auto +Liab + Worker: $120k

AFC Subtotal: $2.88M + (Burden)

T


Current: Open Purchase

Order

Our current pricing detail continued:

Line Item Activity 4:

Line item4 cost.


Line item5 cost.


Line item6 cost.


Optional: Fix Cost Agreement

Our optional fix cost agreement pricing detail is also, based upon demand:

Service Level Activity1:

SLA1 cost: $


SLA2 cost: $


SLA3 cost: $


Optional: Fix Cost Agreement

Our optional fix cost agreement pricing detail continued:


SLA4 cost: $


SLA5 cost: $


SLA6 cost: $


Core Objective2: Assembly

Services

We deployed a wage integrated production assembly services system (Wi-PASS) metric:

Accelerated end-to-end work order performance transactions per purchase order by est. 54.3%

A100% retention rate via 25 states $2.9 Mil workforce public equity investment strategy


Objective2: Assembly

Services

Wi-PASS On-line, On-site Performance Metric:

Benchmark production volume (e.g., financial and operating) ratio(s)

Reducing transaction 'cycle cost per work order’ by an estimated 44.4%;


Objective2: Assembly

Services

Enhancing customer on-line retail experience is a chain of events

Tools for quality assembling of customers’ On-site and or On-line purchased semi-finished merchandize


Objective2: Assembly Services

We' ll avoid your CX from going into the

ground, saving you quality time:

Quality benchmark services. Without

complaint! No exception!


Core Objective3: Customer

Services

Forget something? Tell us & we will

complete your customer experience - CX.

We integrate our services with the theme

of your event.


Objective3: Customer

Services

We integrate our services with the theme of customer’s event

We will enhance customer’s CX journey with us again, again



Services

We assess and will deliver teachable moment cues, for free

We deliver high volume, quality, benchmark production assembly services



Services

Connecting to you for a great customer experience

We deliver high volume, quality, benchmark production assembly services


Core Objective 4: Responsible

Service

Delivered to us, we receive your shipment and inherit your journey

Quality, benchmark assembly services in a friendly environment


Objective 4: Responsible

Service

We cater to your festive occasion or eventful theme

We are a certified, professionally integrated on-line assembly center



Service

We cater to your festive occasion or eventful theme

At Primavera, we'll safeguard your customer journey



Service

Via delivery of added or replaced retail item(s) that may interest you

We'll coordinate assembling of your added or replaced retail item(s)



Service

We enhance your customer experience in ways that fit your style

By Facebook, live chat, twitter, self-serve, email, phone, Etc.



Service

We'll assemble your precious cargo, while customer continue shopping

We fit your lifestyle. Knowing what you need to know, when you need to know it



Service

We integrate your assembly needs,

delivering on multiple same day themes

The end of your customer journey, begins

with us. So, let’s get this party started


Core Objective 5: Human

Resource

Our On the Job Training and Apprenticeships are federal and state sponsored

Our basic on-line assembly services theme? Free delivery


Objective 5: Human Resource

Enhancing your customer journey is as easy as 1-2-3.

Optionally, we mix assembly of your fitness equipment with a free trial session with partnering wellness providers.



Our On the Job Training and Apprenticeships are federal and state sponsored

Our basic on-line assembly services theme? Free delivery



As an employee at Poly Wheel, we are not

just technical, we are into technique



Our payroll integrates quality production with benchmark performance! Perfect job

As employees at Poly Wheel, we are not just technical, we establish benchmark performances


We Understand!

How to satisfy on-line shoppers’ assembly, delivery demands & secure and execute:

Long-term contract

Flexible price structure

Mass production access

Poly Wheel’s everyday low price model


We Understand: The Job

Customers Routinely Needs Done!

To satisfy a high demand, by Wal-Mart on-line shoppers, for Poly Wheel, llc ‘s assembly & delivery services

To secure a long-term sustainable, yet flexible price structure, while providing, affordable, mass production access to assembly and delivery services, well within Wal-Mart’s everyday low price model


Today’s Situation

Summary of the current situation

Use brief bullets, discuss details verbally


How Did We Get Here?

Any relevant historical information

Original assumptions that are no longer valid


Available Options

State the alternative strategies

List advantages & disadvantages of each

State cost of each option


Recommendation

Recommend one or more of the strategies

Summarize the results if things go as

proposed

What to do next

Identify action items


APPENDIX - Option2: Proposed

Annual Fix Cost(AFC)Detail

Option 2, a proposed AFC executed by a separate Walmart & Poly Wheel Contract


$12 per 20”(down) bicycles: $1.2M

$13 per 21”(up) bicycle: $1.3M

3 gallons of gas per 5 bikes each lot of 200k bikes picked up & delivered:


APPENDIX - Option2: Proposed

Annual Fix Cost(AFC)Detail

Option 2, a proposed AFC executed by a separate Walmart & Poly Wheel Contract

$160K in gas per 200k bikes

$100k per purchase of 10 trucks plus

$100k (Performance-bonding-liability- W/C)


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