2010 eoStar User Forum – MillerCoors Update

August 12, 2010

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Agenda

Intro to Commercial Connect Distributor/Retailer TeamStrategic RAS Vendors and DTSCRIOPOSCONNECTION

For any POSConnection order or invoice related questions, please contact MCX Customer Service (800-313-6834, option 4).

DRIVEMCDEM - MillerCoors Data Exchange ModelPrescient – WalmartWrap Up and Questions

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Commercial Connect Distributor/Retailer IT Team

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ND

SD

MNWI

IL

MI

INOH

KY

ME

VT NH

MA

RICT

PA

WV

MD DE

NY

NJ

VA

NC

SCTN

Metro NY

GAAL

MSAR

LA

TX

HI

WA

ORID

MT

WY

CANV UT CO

AZ

NM

AK

NE IA

KS MO

FL

OK

Randy StanfordMarket Solution Specialiststanford.randy@MillerCoors.com414-931-2774

John ShafMarket Solution Specialistshaf.john@MillerCoors.com414-467-5018

Market Solution Specialist – Region Partnership

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Strategic RAS

• Commercial Connect brings a unique combination of deep business knowledge, project management, leadership and a highly competitive drive to lead the delivery of market driven business solutions and enable execution excellence.

 • To win/grow in the market place, we focus our

partnership efforts and align our goals to the objectives of the MillerCoors Commercial Organization (Sales & Marketing), Distributors and Retailers, designing strategies to improve business processes and deliver sustainable growth. Commercial Connect then leads the development of these strategies.

 

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IT Innovation

Innovation of the First Kind

Innovation of the Second Kind

Innovation of the Third Kind

Business People Identify a Business Issue

– IT Delivers an Innovative IT Solution

IT People Identify an IT Issue

– IT Delivers an Innovative IT Solution

IT People Identify a Business Issue

– IT Delivers an Innovative IT Solution

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Strategic RAS

• RAS Vendor has the following characteristics:

• High level of customer service

• Scored high on evaluation

• Strong company values

• Corporate strategy is visible and viable

• Strong support model for distributors

• Significant customer base

• Ease of integration

• Strong support of MillerCoors initiatives

• Commitment to Beer Industry

• Strong core RAS functions

• MillerCoors Commits to the following at this Tier Level:

• Shares relevant Distributor IT Strategy with vendor first

• Co-development and some funding on joint projects

• Distributor customers receive new technology first

• Communication of endorsement to MillerCoors Network and on-going commitment to endorsement while vendor remains in good standing

• Rutherford(eoStar)

• VIP Vermont

• Insight

• Encompass

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MillerCoors Distributor Technology Subcommittee

Distributor Name Main Location Contact Role Region RAS Vendor

Iowa Beverage System Des Moines, IA Rick Tierney IT Lead Central VIP/Microvane

Beer Capitol Distributing Sussex, WI Michael Gescheidle VP, Communications Great Lakes DCI \ VIP

United Beverage of NC Hickory, NC Janet Mitchell IT Lead Mid Atlantic VIP

Columbia Distributing Portland, OR Lou Wood Ex VP, Systems Mountain VIP

RMC Distributing Col Springs, CO Everett Laughlin IT Manager Mountain Encompass

The Odom Corporation Bellevue, WA Bob Jenness Director - IS Mountain Custom

Manhattan Beer Bronx, NY John Agro Brand Director Northeast HighJump\Insight

Valley Wide Beverage Fresno, CA Brian Kennedy IT Manager Pacific HighJump\BDS

JJ Taylor Tampa, FL Bruce Whitely CIO Southeast\Central eoStar\Rutherford

Andrews Distributing Dallas, TX Lynette Smith IT Finance Southwest eoStar\Rutherford

DBI Beverage Sacramento, CA Mark Ramer CIO Pacific VIP

Admiral Beverage Albuquerque, NM Marc Scudamore Director, IT Southwest VIP

Monarch Beverage Indianapolis, IN Fred Dufour VP, Operations Central VIP

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RIO DTSC Tracker

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Target DistributorsBy Date

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Distributors VIP Certified

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VIP Certification Tracker

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DRIVE Overview

NEW CAPABILITIES

One Ordering Horizon

Management by Exception

Forecast Collaboration

Inventory Collaboration

Suggest, Order, Confirm

DRIVE is the new MillerCoors ordering tool that provides Distributors with ONE system for forecasting, ordering beer and managing inventory.

DRIVE will simplify the management of complex portfolios. It has been designed for distributor ease-of-use and flexibility in viewing information.

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DRIVE Pilot

• DRIVE Pilot: – Piloting with 14 distributors Q4 2010

– Pilot focused on POINT to DRIVE only

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DRIVE RAS Integration

• Pilot (Release 1) Capabilities:– Weekly forecast upload

– Orders download (suggest/order/confirm)

– Shipments download (planned and actual)

– Arrivals upload

• Functionality:– Manually initiated via DRIVE upload/download link

– Future release will include automated exchange via GXS

• Status:– File specifications (xml files) developed and sent to major RAS vendors

– Received commitment from major vendors to deliver to our specifications

– DRIVE file upload/download development complete

– Testing underway with first RAS vendor

– Eostar interface development to be completed by end of August

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MCDEM 2010 ScopeMillerCoors will continually evaluate business processes between itself and external business partners to reduce the amount of manual steps to complete tasks; electronic data exchange provides opportunities to simplify business processes. MillerCoors will leverage its leadership position to partner with distributors and priority retailers to develop and/or guide their data exchange strategies to employ best practice supply chain and DSD operational activities.

Item Data Sync will not be started in 2010. Item Data Sync involves synchronizing MillerCoors item information (UPC, Description, Category, Weight, Dimensions, etc.) with retailers and distributors. Item Data Sync will allow MillerCoors to speed product introductions and maintain consistency of item information throughout the 3-tier network. The first step to successfully synchronize our item information is to have 100% accurate item master data information, which will happen in 2011.

Retailer Data Exchange will continue beyond 2010. The project is focused on developing scalability to satisfy BOY 2010 requirements and beyond. The 2011 project will better handle the increased demand in retailer data exchange and have the ability to deliver priority retailer efforts in condensed periods with dedicated resources.

Future Chain Price will continue in 2010 as a proof-of-concept. The successful work thus far in 2010 will continue with a focus on verifying the ability of RAS vendors to send distributor pricing information electronically.

Retailer Scan Data will develop a data warehouse for retailer point-of-sale (scan) data. The effort started in 2010 with a proof-of-concept, working with HEB. Retailer scan data will be used to improve retail execution through: reducing out-of-stocks, post-event analysis, price elasticity modeling and better alignment between service and consumer demand. This is a critical step to building sustainable growth.

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Pilot Retailer Scan DataOOS & Ad-hoc Queries

Pilot Future Chain Price EDI Retailer

Pilot Future Chain Price Non-EDI Retailer

Retailer Scan Data Distributor Feeds

Publish Item Information to Distributors & Retailers

BUSINESS

CAPABI

L ITIES

MillerCoors Data Exchange Model – Capability Glide Path

Enable 100% of Distributor Network

Systematic Register of Item Information to 1Sync

2010

Retailer Scan DataLink to Distributor STRs

Extend Future Chain Price Pull MillerCoors PTRs in

New / Extend Retailer EDI Solutions

Integrate Supply Chain & Billing Data to Distributors

2010

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Current State - Data Exchange with Retailers~ 35 retailers are exchanging information with MillerCoors distributors using the MCDEM.

The MillerCoors UFF is a key factor in the success of this program.

The UFF provides:

• Standard file format for RAS vendors• Flexibility for retailer map specs • Single map deployment network coverage

Pre-delivery, Invoice, ASN, EDI Price File

Purchase Orders, EFT remittances

Purchase Orders, EFT remittances

Distributors

Many Large & SmallTechnically Savvy & Not

Many Large & SmallTechnically Savvy & Not

Retailers

Many Large & SmallOn & Off Premise

Many Large & SmallOn & Off Premise

UFF

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Start of 2010 Retailer Data Exchange Solutions

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Start of 2010 Retailer Data Exchange Solutions

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Completed New Retailer Data Exchange Solutions (6/30)

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In-Flight/Planned Retailer Data Exchange Solutions

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Current eoStar Customer EDI Activity

2020

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Current eoStar Customer EDI Activity

2121

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Accomplishments: • Currently in production with at least one distributor with Kroger, Dollar General,

Fast Trip, Darden and Raley’s.

Focus Areas:• EDI solution with Winn Dixie• Piloting with Schenck or JJ Taylor by end of August

Future Chain Price

PPP UFF interface software should support:• Create Looping Structure Scenario 2 or at least 4• Create Outlet Group Codes• Create a promotion number / deal number and the ability to use those numbers to

send through changes and deletions• Distinguish between case and bottle for same product, when both are valid

configurations for a retailer (i.e. Split Case)• Send a PPP UFF for all future prices for all products, designating which

prices/promotions are:• New, Changed, Deleted, Canceled, Unchanged

• Only send prices for those products authorized for that retailer, that store• Calculate “Net Price Without QD Discount”

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Accomplishments: • Prescient firewall enhancement went live 6/15.

– Distributors now have the ability to control the timing of package swaps/substitutions

– Replaced the manual process of notifying the MillerCoors Walmart Team– Ability to request the de-authorization of a particular package, pending the

approval of the MillerCoors Walmart Team

 

Focus Areas:• Extend the Prescient Walmart pricing solution to remaining distributors (Miller only

houses and affiliates)• Currently negotiating a new contract with Park City Group (Prescient)

Contacts:– Daryl Andresen, Business Partner, 770 289-2836, Daryl.Andresen@millercoors.com

– Chris Shepherd, Pricing Coordinator, 479 657-7461, Chris.Shepherd@millercoors.com

Walmart Prescient Pricing Solution (Progress YTD)

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RECAP and Questions

Questions ?