delivers the future of convenience today with our best-in-class logistic solutions!

CORE-MARK®

VENDOR CONSOLIDATION INITIATIVE (VCI)

Lower Cost of Goods and Reduce Operating CostsThere are embedded costs when

handling Direct-Store-Delivery (DSD)

products: storage, transportation,

refrigeration, idle truck time, sales reps

visits, etc. In order for a DSD to be

effective and profitable, they must sell

their total portfolio regardless of how

items sell in the retail store. Whereas,

Core-Mark can offer you the top selling

items, across all categories, regardless

of the manufacturer. Our focus is on

making you more profitable while you

remain relevant in the midst of growing

competitive threats.

Reduced Transactional Costs

It becomes expensive for Retailers to

meet with, order from, pay invoices

to, keep track of promotions, manage

credits, accept deliveries, and reconcile

with multiple Direct-Store-Delivery

(DSD) suppliers. VCI can help streamline

this process into one simple experience.

Envision multiple trucks with multiple

deliveries streamlined into one

Core-Mark truck for one delivery.

YOU CAN COUNT ON US.™

Our tri-temp trailers allow us to deliver product from three temperature zones: ambient,

refrigerated, frozen.

Improve Capital InvestmentsCore-Mark’s Vendor Consolidation Initiative program is built on “just in time” delivery

service. “Just in time” allows the Retailer to reduce the total inventory on hand with

the confidence that the stock will replenish as needed.

Lowering the inventory on hand with the same frequency of sales creates a higher

turnover rate on the retail inventory yielding a better return on the capital investment.

Increase Cash FlowThrough SKU rationalization and having the top selling items with the highest

velocity of turns, Retailers are recognizing the most sales and profits from the

inventory. When products sit on the shelf, their value is diminished.

Reduce Out-Of-StocksUnderstanding the implications of out-of-stocks is critically important because

there is a direct correlation with overall customer satisfaction, as well as the

likelihood that shoppers will recommend your store to others.

Improving your out-of-stock condition will increase sales and prevent consumers

from doing a variety of things that might harm your bottom line.

Form Strategic Partnership Between Retailer and Core-MarkDSD companies are limited in their

knowledge of the store with their

focus only being on some select and

specific categories.

As Business Consultants, Core-Mark

has the expertise that encompasses

the total store! We can help make

you more profitable by getting the

product assortment right.

We can optimize your store’s

assortment by eliminating the lower

performing items backed by fact-

based information.

This full-service, ‘total store’ perspective

will profitably grow your business.

When You’re Out-of-Stock, Consumers Do…

31% of Customers Buy Elsewhere

9% of Customers Do Not Buy

15% of CustomersDelay Purchase

19% of Customers Substitute

Dif erent Item

26% of Customers Substitute Brands

Source: A comprehensive guide to retail out-of-stocks Sponsor: P&G/Food Marketing Institute/Grocery Manufacture Association/NACS

The Solution: Vendor Consolidation Initiative (VCI)In summary, by partnering with Core-Mark and leveraging the Vendor Consolidation

Initiative, you, and ultimately the consumer, can build a supply chain that focuses

on maximizing value!

VCI will help save time and money. This model creates a platform for new concepts

such as fruit, sandwiches, salads, dairy, and meat, that will enhance the Retailer’s

offering to consumers, separate them from the competition, and increase sales with

higher basket rings!

Next StepsDiscuss our Vendor Consolidation

Initiative with your Core-Mark

representative to identify how VCI can

work for you and your store. We are

ready and eager to assist in growing

your bottom line sales and profits.

Multiple Delivery PlatformMultiple weekly deliveries can be achieved by consolidating orders through

Core-Mark. Qualifying for multiple weekly delivery allows Retailers to participate

in programs, like Fresh, that will positively grow store sales, improve consumer

perception of the store, and keep the store relevant in the minds of consumers.

Supply Chain Efficiencies & Benefits

VCI

FreshSolutions

Multiple Delivery Platform

Fresh Solutions – Attract New Consumers

Vendor Consolidation – Reduce Embedded Costs – Enable Increased Sales – Improve Frequency of Delivery – Reduce Transactional Costs

Multiple Delivery Platform – Improve Out of Stock Condition

– Just in Time Delivery

– Reduce Inventory and Associated Carrying Costs

Want to improve

your profits?

Consider a strategic

partnership with

Core-Mark!

Since 1888, Core-Mark has been a proven leader of

logistic solutions geared toward the Convenience

Retail Industry. Once we understand a Retailer’s

business goals, we leverage our distribution model,

Vendor Consolidation Initiative (VCI), to optimize

the Retailer and Supplier relationship. • Lower Cost of Goods and Reduced Operating Costs

• Reduced Transactional Costs

• Improved Capital Investments

• Increased Cash Flow

• Reduced Out-Of-Stock

Form a strategic partnership between the Retailer

and Core-Mark.

VCI will help generate sales increases with better

gross profits while reducing costs via improved

operational efficiencies. The following list outlines how

Core-Mark’s VCI solution can benefit your business.

New England North

• CoronaLos Angeles •

Bakers�eld •

•Hayward

•

• Salt Lake City

• Denver

•Albuquerque

• Ft. Worth

• Tampa

Forrest City •

• Kentucky

Ohio •Iowa •

• Atlanta

• Carolina

• New England South

•

• Pennsylvania

• Toronto

Minneapolis •

• Winnipeg

• Calgary• Vancouver

• Portland

• Spokane

Sacramento •

Las Vegas

Core-Mark International, Inc.1500 Solana Blvd., Suite 3400 • Westlake, TX 76262

(940) 293-8600, (800) 622-1713www.core-mark.com

09/

2019

Core-Mark is one of the largest marketers of fresh and broad-line supply solutions to the convenience retail industry in North America. Founded in 1888, Core-Mark offers a full range of products, marketing programs and technology solutions to approximately 44,000 customer locations in the U.S. and Canada through 32 distribution centers (excluding two distribution facilities the Company operates as a third party logistics provider). Core-Mark services traditional convenience retailers, grocers, drug, liquor and specialty stores, and other stores that carry convenience products. For more information, please visit www.core-mark.com or contact your local Core-Mark Representative.