© 2013 enVista, LLC

Operational Value Assessment Proposal

for[Retailer]

Understand current processes • Interview

executives, managers, IT super user, and operations

• Benchmark current operations performance

• Review operations for standard execution as well as exceptions.

Evaluate current operations• Review

product handling steps and order fulfillment

• Facility operation layout review

• Compare operations performance with industry metrics.

Documentsystem requirements• Review

current WMS system usage compared to system capability.

• Review data integrity and real-time updates in support of decision-making.

• Review integration gaps.

Review organization structure

• Evaluate org structure alignment within operations, inventory control, procurement, and order fulfillment.

• Review current and future labor performance metrics.

Develop Cost Benefit Analysis

• WMS system enhancement or module setup/configuration

• Warehouse layout and slotting plan/execution

• SOP standards

• Labor performance program setup

Operational Assessment Objectives

3

Manipulating product in location, Managing multiple U of Ms/location DSI data entry/scanning,

Response time delays, Selecting pick sequence/ location, Managing multiple scripts/ activity

Verifying pick sequence on pick list, reviewing substitutions and adjustments, managing dock staging areas.

SAMPLE

Benchmarks – Picking Activity

4

WMS-RF: ~ 9 FTEs WMS-Voice: ~10.8 FTEs

NOTE: $50,000 FTE Cost, Including Benefits

SAMPLE

Savings - Picking

SAMPLE

As-Is Process Documentation

SAMPLE

Future Process Flow

1. Remove product from first two levels of shaded existing reserve carton rack.

2. Move product to Eagle building.3. Repopulate with product from existing floor and

mezzanine level picking areas.

SAMPLE

Phase 1 – Inventory Conversion

8

Value Assessment

Lean Distribution

Design10 Weeks

Slotting Execution/ MHE

Selection3-4 Weeks

MHE Implementation

2-5 Months

SOP Development

4-6 Weeks

Supervisor/End-User Training

2 Weeks

System Vendor Evaluation6 Weeks

Ph 1. WMS/Voice Implementation

7 months

Execute Pallet/ Layer U of M

Handling2 Weeks

SAMPLE

Recommendations

SAMPLE

Alternative #1 - ROI

Benchmark - Picking

FQ Current Breakdown

• Retailer 1: 103.11• Retailer 2: 116.90• Retailer 3: 171.08• Retailer 4: 168.24

Sample Included Eight (8) Picking Operators

SAMPLE

© 2013 enVista, LLC

Investment Summary…

Engagement

Lead ParticipateTasksOperational Value Assessment

1. On-Site Interview of Key Stakeholders2. Observe Current Operations and Future Plans3. Benchmark Current Operations Against Best in

Class Performance4. Validate Current IT System Usage, as well as Future

TecSys System Capabilities5. Identify Risks Factors 6. Quantify Cost Savings and Capital Expenditure

Options7. Recommend Timeline and Resource Requirements

to Execute Changes8. Discuss Labor Performance and Metrics

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[Retailer] [Retailer] [Retailer]

[Retailer]

[Retailer] [Retailer] [Retailer]

[Retailer]

Investment Summary

Operational Assessment Case Study

Challenge Response Result

• [Home Décor Retailer] is Growing Annually at a 20% Rate Yet Operates Their Business on Tribal Knowledge, Non-Value Added Manpower, and Disparate Systems.

• [Home Décor Retailer] is also challenged by their international business model (Operations, Buying, Transportation, IT – US Based; Store Operations – Central America)

• [Home Décor Retailer] is looking for a strategy and tactical steps to execute upon to manage growth.

• enVista positioned our Retail Strategy experience with like customers

• Execute Three Actual Methodology (People, Places, Processes) to Validate Business Need.

• Support Approach with Client References and Detailed Sample Deliverables.

• Develop an Approach, Timeline and Cost that is Thorough and Cost Effective.

• enVista implemented a six week Logistics Execution Assessment that involved interviews and observations across [Home Décor Retailer]’s entire network.

• enVista’s strategic plan for [Home Décor Retailer] included the following areas:

• Conduct C. America LNA to determine how many in-country buffered DCs should exist.

• Conduct Transportation and WMS technology evaluations.