TXTPERFORM2008

Business Needs/Challenges

• Today’s retailers face unprecedented challenges.

• Retailers must ensure that products are on the right shelf, at the right time and at the right cost

• Approximately 70% to 85% of buying decisions are made at the shelf.

• Supply chains are a source of business value and competitive advantage.

TXTPERFORM2008

SCM Value Proposition

• Supply chain management (SCM) revolves around understanding and balancing the three key dimensions:– Availability– Inventory – Cost

• Effective SCM can give you supply chains that improve margins, enhance overall business performance and drive competitive advantage.

TXTPERFORM2008

TXTPERFORM2008 Value Proposition• Based on best-in-class industry practices, TXTPERFORM2008 is a

complete SCM suite including best of breed demand management and supply planning that delivers an exceptional combination of analytics capabilities and rich functionality

• Supply chain performance management and planning capabilities span key retail processes including:

• Strategic Planning• Merchandise and Store Planning• Open-to-Buy and Purchase Planning• Assortment and Allocation Planning• In-season control• Replenishment Planning• Product Lifecycle Management (PLM)

TXTPERFORM2008

TXTPERFORM2008 Value Proposition

• TXTPERFORM2008 enables:

• Concurrent planning and management of trade-offs

• Inventory optimization for reduction of working capital

• Collaborative forecasting and demand planning

• One version of the truth• Metric based performance management• Cross-functional business process integration• Faster more targeted product launches

TXTPERFORM2008

Solution Benefits• Empowers fact-based decision making to choose and apply the

best planning scenario; have complete understanding of the implications and the impact on business performance that result from those decisions.

• TXTPERFORM2008 enables retailers to:– Translate data into a financial view; connect operational plans

back to the overall company goals – Better manage demand; create an accurate picture of future

demand – Have greater visibility and control over supply costs for higher

margins – Manage by exception; create a balanced plan with continuous

performance management– Launch the right products on time and bring them to market

faster

TXTPERFORM2008

Solution BenefitsTangible business benefits to be had:

Improving product assortments:

• Footwear retailer – 10% increase in markdown margin• Apparel retailer – 5% reduction in inventory, with improved product availability • General merchandise chain – 5% to 15% sales increase, margins up 2% to 3%• Department store chain – 5% sales increase via average basket growth

Improving forecast accuracy:

• 15% less inventory• 17% stronger perfect order fulfillment• 35% shorter cash-to-cash cycle times

Improving visibility and integration through sourcing processes:

• Improving inventory turns to as little as five to seven days• Achieving net margins of 15% to 20% • Racking up comparable store sales increases (stores opening one or more a year) of 10% to 12%• Fostering greater than 80% full-price sell through

TXTPERFORM2008

Benefits of Microsoft/Partner Stack Integration

TXTPERFORM2008 is a combination of “out of the box” technology from a market leader but is closer to the users’ current working practices through TXT’s across industry expertise. The functionality included in the product is the result of years of experience in our working closely with customers and incorporating their needs into our software.

Providing reduced TCO and a competitive advantage:

• Best of breed solution with a greater ROI• Technology based on MSFT stack and UI is Microsoft Excel• Simplified IT landscape

• Faster and reduced deployment cost• Performance and scalability• Seamless navigation• Integrates with ERP systems

TXTPERFORM2008

Case StudyNicolas (wine retailer)

Business challenge: Refine the product range and reduce the number of SKUs in stores, provide the best possible response to consumer demand while achieving target margins and modernize forecasting capabilities.

Solution: Demand Forecasting and Replenishment Planning

Results:

– On-shelf availability of never out of stock (NOS) products increased from 65% to 95% in every store

– 1.2% increase in overall group margins after 12 months– Double digit % decrease in inventory levels– Store acceptance of head office replenishment proposals is now nearly

80% - up from 60% one year ago

TXTPERFORM2008

Partner Overview• Founded in 1989, TXT e-solutions is an

international software products and solutions vendor and leader in “Strategic Enterprise Solutions”; delivering the ability for organizations to better manage their value chain processes and improve their business performance to positively impact the bottom line.

TXTPERFORM2008

Contact Information

Stefano Lena, VP Global Sales & Marketing E-mail: stefano.lena@txtgroup.comPhone: +1 646 715 2463Phone: +39 348 2668624

http://www.microsoft.com/industry/retail/partners/featured/txt.mspx

www.txtgroup.com

Thank you.

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The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after

the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.