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Electronic Data Interchang EDI 1

1. Team Introduction 2 TSL EDI Implementation Partner SPICE Technology Group Ilona Williams – Vice President Planning & Supply Chain BJ Morden – Senior

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Electronic Data Interchange

EDI

1

Team Introduction

2

TSLEDI Implementation Partner

SPICE Technology Group

• Ilona Williams – Vice President Planning & Supply Chain

• BJ Morden – Senior Director IT, E-Commerce and Customer Service

• Charles Larcher – Vendor Relations Manager

• Neel Sharma – Managing Partner

1. Why EDI

2. The Project Scope

3. Rollout Procedures & Timelines

4. Tools available to Suppliers for EDI

5. Costs

6. Technical FAQ

7. EDI Contacts

8. Q&A

3

Agenda

Town Shoes is currently working on a number of best practice initiatives that are aimed at improving efficiencies throughout its extended supply chain. Manual business process interaction and exchange of data between TSL and its Trading Partners causes errors and delays, which increases costs and leads to poor customer experience. Electronic Data Interchange (EDI) is an important tool in automating retail supply chain interaction between Trading Partners. Automated business-to-business (B2B) communication helps its organizations to jointly bring the right product to the right place at the right time at the right cost to the consumer. This results in improved product freshness and better in-stock levels, which enhances the customer’s experience in our stores. All members of Town Shoes’ Trading Partner community would benefit from these improvements.

Why EDI?

Supply chain processes with TSL’s suppliers will be fully automated. The project entails automating the following transactions with the supplier community:

PO (850)

PO Change (860)

Advanced Ship Notice (856)

Catalogue Data (832)

Functional Acknowledgement (997)

The Project Scope

Once the pilot has been completed, we will commence rollout of the supplier community following a “Registration-to-Live” process. The key steps in the process for Suppliers are as follows:

Roll out Plan

A. EDI Initiative Communication

Supplier Registration via web invitation

Supplier Web Survey EDI Initiative Letter Webcast

B. Supplier Testing• EDI Document

certification• Communication

Setup • Town Shoes –

Supplier Parallel Test

C. Live & Support• Town Shoes –

Supplier Promotion from test to production

• Support Procedures

In Progress

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Transaction Details

Technology and interfaces are being made available for all suppliers to comply with Town Shoes’ EDI requirements

1. Traditional EDI Suppliers • ANSI X12 over FTPS, AS2 or VAN supported• We prefer FTPS (cost free) as the secure communication channel for exchanging ANSI documents• AS2 and VAN communication are supported with nominal additional costs (see slide 12 for further details)

2. Non EDI Suppliers • SPICE web EDI portal• Town Shoes prefers that suppliers do not use fax-EDI, but instead use a technology-based EDI solution to exchange data

3. Special EDI channels • SPICE supports multiple channels including XML, flat files, webservices and other means to exchange data including working with

standardized ERP adapters (eg. SAP IDOCS)• These channels are treated separately and undertaken as a Statement of Work (SOW) by SPICE with the supplier directly.

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Readiness of Suppliers

Tools available to Suppliers

9

Traditional EDI Suppliers:

Self-service EDI Certification tool Business scenario-based EDI

testing with your UPC/EAN/GTIN Syntax and data/business rule

certification

Document Tracking Tool

Tools available to Suppliers

10

Non EDI Suppliers: Web-based portal provides easy access to all of Town Shoes’ EDI

documents and including document tracking and dashboards Purpose-built tool for Town Shoes with all of Town Shoes’ unique

business rules built in tightly for painless EDI compliance

NPLS: separate web-portal tool (New Product Listing System - NPLS) for providing UPC/EAN/GTIN Catalogue data to Town Shoes

Roll out Procedures and Timelines

11

Costs

12

Traditional EDI Suppliers: Self-service EDI Certification tool

Business scenario-based EDI testing with your UPC/EAN/GTIN Free Connectivity using FTP-SSL (optional: VAN or AS2 at

additional cost) User ID /PW for online Document Tracking Reports

FEES

$500 /one time fee850, 860, 856, 832

Certification fee applies to all suppliers who will require EDI certification, including suppliers using 3rd party web EDI tools.

SPICE Web EDI Suppliers: Online Application purpose-built for Town Shoes business

rules and catalogue exchange with business dashboards Browser-based, no hardware or software required

$200 /one time fee$ 50/ month for 100 docsVolume discounts are available

Special Channels: XML, flat files, webservices and other APIs are supported

SOW per requirements

EDI Project FAQ’s

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1. Is EDI compliance mandatory and is there a non-compliance fee? Do you have other non-compliance charges?• Yes, EDI compliance is mandatory. Failure to comply may result in non-compliance charges. There is a Charge Back

Schedule that covers EDI and other non-compliance infractions. 2. Will our vendor agreements be modified? How will business operations be impacted by EDI (both TSL and Vendor)

• The Vendor Guide will include asection to cover off EDI and the Charge Back Schedule. Business Operations between TSL and our Vendor Partners will be more accurate, efficient and cost effective.

3. When do I need to be compliant? All existing Vendor Partners need to be compliant by December 2014. New Vendor Partners have 90 days upon initial contract to become EDI compliant.

4. If I am traditional EDI, can I connect with Town Shoes directly?• Town Shoes does not maintain an EDI infrastructure internally. You can only connect through SPICE but there are no costs to

you beyond certification fees if you connect using secure FTP.5. What are my shipping requirements to the DC?

• Please follow the shipping instructions outlined in our Vendor Guide. 6. When will I get all the documentation required for EDI rollout?

• Project documentation will be available within the next few days. All relevant documentation will also be available on the SPICE Connect EDI compliance portal.

7. Do I have to use SPICE Web EDI?• You may use any 3rd party software to become EDI ready and you will be viewed as traditional EDI. You must be fully ready

to support an EDI 832 for catalogue update as well.8. Can Town Shoes pull my item data from a catalogue hosting service provider?

• You can work with your catalogue hosting company to send us the EDI 832.

EDI Roll-out contacts

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Town Shoes

1. Ilona Williams, VP Planning & Supply Chain – Business contact, [email protected]

2. Charles Larcher, Vendor Relations Manager – Supplier Compliance, [email protected]

3. Barb Starmans, Senior Systems Analyst – data issues, IT support, [email protected]

SPICE1. Contracts & Billing Administration [email protected] and [email protected]

2. Rollout & Support Team: 1-888-400-7950 x300, [email protected] Mon-Fri 8AM – 5PM Eastern Time Zone