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arvato RussiaServices & Solutions

Yaroslavl, November 2013

We operate, manage and

transform!


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Overwiew

The Russian Market2

arvato Russia at a Glance3

Reference Cases4

Industries Overview6

Services and Solutions7

Misconceptions of Doing Business in Russia8

Contacts10

Why to chose arvato?9

arvato Russia Mission1

Supply Chain Excellence5


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arvato Russia Mission

RUSSIA

GLOBAL

CUSTOMERS

TECHNOLOGIES &

PROCESSES

GLOBAL

NETWORK

To enable arvato to become the long term preferred

partner of choice for Supply chain solutions and

distribution in Russia for the global companies within

arvato’s target industries.

Arvato will be the Russian leading service provider in

Distribution and Supply Chain Management using leading

edge technologies and processes.

All activities are seamlessly integrated into arvato’s

global supply chain network and infrastructure.

As part of the Bertelsmann Group, we have solid financial backing, over 175 years of experience

and many excellent references. Because of our decentralized corporate structure, we are

always able to operate with great flexibility and speed.


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The Russian Market

Being one of the biggest transition markets,

Russia plays an increasing role within the

global economy. Non-Russian companies

are expanding into Russia in order to exploit

the abundant growth opportunities.

Simultaneously they face stronger

competition in their home markets due to the

entrance of global Russian players which try

to explore opportunities abroad.

New businesses will be

developed in Russia

Existing businesses in

Russia will be extended to

other parts of the world

Existing businesses in Russia

will be strengthened because of

increasing domestic

competition.

RUSSIA

Arvato provides best-of-breed Supply Chain solutions based on clear internal guidelines and

Bertelsmann codes of conduct and a rigorous risk management.

Retail sales forecast to reach over $750 billion in Russia by 2016,

from $600 billion in 2011 and $75 billion in 2000.

Russia will soon be the largest retail market in Europe and one of

the top three globally (after the U.S. and China).

Development of pan-Russia supply chains is the major challenge

for Russian retail and industrial sector development over the next

5-10 years.

Market Environment


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arvato Russia at a Glance

Yaroslavl is located approx. 250 km north east of Moscow

Multi client warehouse and distribution facilities in Yaroslavl

full logistics services for

Warehousing and Distribution

Value Added Services

B2B and B2B deliveries

Reverse Logistics

250 km

Importation of goods and customs clearance;

Russian distribution network in close proximity to consumers and retailers;

International seamless distribution network to connect suppliers, retailers and consumers;

Global SAP based IT infrastructure to manage flow of goods and customer’s value chains;

Standardized processes and industry specific best practices to fulfill customers’ requirements;

arvato Russia follows strong internal guidelines based on the global codes of conduct and is fully committed to deliver best services to its customers.


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Business to Business References Cases

DELIVERYIT

/ H

IGH

TE

CH

GA

ME

SCustomers in Yaroslavl

arvato´s expertise is focused on optimizing the Value Chain (Efficiency, Performance, Costs)

http://eu.blizzard.com/de/


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Business to Consumer References Cases

MA

IL O

RD

ER

ON

LIN

E S

HO

P

Delivery all-over Russia via express and express courier companies according to the required service level.

DELIVERYCustomers in Yaroslavl


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Supply Chain Excellence

Materials

Operations

Logistics

Capacity

Productivity

Value

Effective

Efficient

Ready to Adapt

arvato provides an integrated architecture based on leading

IT-solutions offering highest client value.

Process Optimization Cost Optimization

Business Process Outsourcing

Integration

Buy it

Move it

Service it

Make it

Sell it

Colla

bo

ration

Processes

ITProcesses Best Practices

IT Architecture Technologies

Business IntelligenceBu

sin

ess P

roce

ss

Ou

tso

urc

ing

Supply Chain Excellence

Services

&

Solutions

IT

Best

Practices

Infra-

structure

Industries


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Industries Overview

HIGHTECH ITCORE

INDUSTRIES

All industries giving synergies to existing businesses without any product related constraints.CROSS

INDUSTRIES

RELATED

INDUSTRIES

ENTERTAINMENT TELCO PHARMACEUTICALS

HEALTHCARE &

COSMETICSAUTOMOTIVE FASHION

All our services and solutions are designed according to the requirements

of the industries we are serving.

Best Practices

Information Technologies

Infrastructure

Services

&

Solutions

IT

Best

Practices

Infra-

structure

Industries


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Solution Design

SUPPLY CHAIN

MANAGEMENT

PROCESSES &

BEST PRACTICES

INFORMATION

TECHNOLOGY

PROJECT

MANAGEMENT &

METHODOLOGY

Solution Design Components and Principles

The major principles of Solution Design are:

CUSTOMER ORIENTATION AND

OPTIMIZATION

Based on the customer centric approach arvato´s

Solution Design methodology comprises of the

following Value Drivers:

INNOVATION

STANDARDIZATION

COLLABORATION

TRANSPARENCY

SUSTAINABILITY

Services

&

Solutions

IT

Best

Practices

Infra-

structure

Industries


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Service Models

Services

&

Solutions

IT

Best

Practices

Infra-

structure

Industries

arvato

Retailer

Consumer

Manufacturer

Manufacturer

Manufacturer

Distributor

Distributor

Distributor

Offshore

ManufacturingWarehousing Distribution Aftersales

Import of

RecordsA

arvato

Retailer

Consumer

Manufacturer

Manufacturer

Manufacturer

Offshore

Manufacturing

Import of

RecordsWarehousing Distribution AftersalesC

Retailer

Consumer

Manufacturer

Manufacturer

Manufacturer

Distributor

Distributor

Distributor

arvato

Offshore

Manufacturing

Import of

RecordsWarehousing Distribution AftersalesB

NO SYNERGIES

NO SYNERGIES

HIGH SYNERGIESHIGH SYNERGIES

HIGH SYNERGIES

HIGH SYNERGIES

Synergy driven Scalable Supply Chain Solutions

Synergies

Scalability

Cooperation

Effectiveness


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Retail Business Model

arvatoRetailer

Consumer

Distributors

Retailers

Manufacturers

Offshore

Manufacturing

Import of

RecordsWarehousing Distribution Aftersales

HIGH SYNERGIESHIGH SYNERGIES

Consolidated importation of goods

Developing new supply chains into Russia with

strong brands and/or unique products

Connecting Manufacturers/Retailers/Distributers

from outside of Russia with Russian Retailers

Full logistics services for retailers

Direct to Consumer deliveries on behalf of the

retailers

Consolidated retail deliveries

arvato’s Retail strategy is two-sided: Importation and extending foreign supply chains into

Russia and optimization of retail distribution in Russia.

Retail IT Solutions

Retail Best Practices


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Services Overview

Based on an agreed Business Model and implementation scenario

the arvato service solutions will be designed by using the following

building blocks:

BUSINESS TO BUSINESS (B2B) BUSINESS TO CONSUMER (B2C)SUPPLY CHAINS

AFTER MARKET

SERVICES

CUSTOMER SERVICE

SOLUTIONS

SUPPLY CHAIN

MANAGEMENT

E-COMMERCE

SOLUTIONS

Services

&

Solutions

IT

Best

Practices

Infra-

structure

Industries


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Services & Solutions

International Technical Support

International Customer Services

Telemarketing Services

BPO Management

Social Media

Consulting & Advisory Services

CUSTOMER SERVICE SOLUTIONS

Customer Service Solutions

Service Parts Logistics

Reverse Logistics

Repair & Refurbishment

Call & Returns Avoidance Solutions

Multi-Vendor Management

AFTER MARKET SERVICES

On-Line Marketing

e-Commerce Web Development

Financial Services

Digital Distribution

Global Fulfillment Services

Customer Service Solutions

E-COMMERCE SOLUTIONS

Packaging & Postponement

Warehousing & Distribution

Transportation Management

Multi-Channel Fulfillment Services

Value-Added Logistics Services

Planning & Materials Sourcing

SUPPLY CHAIN MANAGEMENT

Services

&

Solutions

IT

Best

Practices

Infra-

structure

Industries

arvato is a business process outsourcing service provider that

supplies its customers with tailor-made solutions for customer

interaction processes.


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arvato’s Solution Assets

Arvato has a strong international footprint in B2B and B2C business:

Distribution network in close proximity to consumers and

retailers;

International seamless transportation network to connect

distribution centers;

Global SAP based IT infrastructure to manage flow of

goods and customer’s value chains;

Standardized processes and industry specific best

practices to fulfill customers requirements;

L O C A L A S S E T S

G L O B A LA S S E T S

Performing in distribution means fulfilling

service levels.

Using global assets as operational backbone

and developing local assets to fulfil customer’s

demands.

Service and compliance is a real differentiator in Russia.

Services

&

Solutions

IT

Best

Practices

Infra-

structure

Industries


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arvato global IT Platform

SAP BASED ARCHITECTURE

IMPLEMENTATION TEMPLATE

BEST PRACTICES

Proven SAP architecture

Globally implemented

24/7 global support

Preconfigured modules for processes, configurations, interfaces and integration scenarios

Modular setup of business requirements

Efficient implementation (time and risk)

Operational Best Practices are fully integrated in SAP architecture

IT Best Practices are fully integrated in arvato‘s global IT structure

arvato provides an integrated architecture based on leading IT-

solutions offering highest client value.

Services

&

Solutions

IT

Best

Practices

Infra-

structure

Industries

Synergies

Scalability

Cooperation

Effectiveness


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arvato global footprint

USAValencia CALouisville KYDuncan SCPleasant Prairie WIAustin TXWeaverville NCEl Paso, TX> 200,000 m2

Ireland> 12,000 m2

France AttonBussyLonges Paris Torvilles> 75,000 m2

NetherlandsVenloVenray> 70,000 m2

PolandSzczecinPoznan> 26,000 m2

UKLondonMilton KeynesWednesbury> 50,000 m2

Singapore> 60,000 m2

ChinaShanghaiShenzhenHong KongGuangzhou> 80,000 m2Italy

> 10,000 m2

CzechStochovBrno> 15,000 m2

RussiaMoscowYaroslavl> 65,000 m2

GermanyDuerenGueterslohMonheimFrankfurtMuenchenLeipzig> 332,000 m2

Spain> 25,000 m2

Australia> 10,000 m2

BrazilManausSao PauloHortolândiaGuarulhos> 45,000 m2

Japan> 10,000 m2

India> 10,000 m2

50 Fulfillment centers 200 Field stocking locations 35 Techsupport Call Centers15 Repair Centers


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Misconception of doing Business in Russia

… lack of transparency

… corruption

… inadequate rule of law

… inefficient institutions

… immigration and visa system

…

Russian Myth:

To be successful in Russia a service provider

must have absolute commitment to managing

bureaucratic workload and inefficient

institutions…

… and requires rigorous, bottom-up Risk Management:

Thorough due diligence of all businesses and contracts

Identification of best-in-class partners and suppliers

Alignment of interests, embodied in the form of strong contracts

Internal management to maintain and monitor business activities

Clear internal guidelines and codes of conduct

Business Continuity Planning

arvato Russia follows strong internal guidelines based on the global codes of conduct and is

fully committed to overcame “Russian Myths” to deliver best services to their customers.

Typical real estate projects in Russia require approx. 250 approvals!

arvato …. from complexity to simplicity


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Excellent performance within a realistic ramp-up period at reasonable costs.

arvato has long term experience in operating supply chain operations in various

industries applying best practices and advanced IT systems.

Customer satisfaction due to reliable, stable, best-in-class SAP based IT solution

corresponding to customers’ requirements.

Financial stability guaranteed through Bertelsmann financial strength.

Further operational and technical capabilities to expand - strong willingness to learn

and become better.

International corporate footprint, which matches customers' strategic goals.

Excellent references with successful implementations of international projects and new

businesses.

Potential strategic partnership with arvato in fulfilment and operations.

Why to choose arvato?


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Your Contacts

Michael EckensbergerDirector Business Development & Solutions

phone +7 4852 22 04 20 ext. 101 mobile: +7 980 748 50 [email protected]

ARVATO RUSSIA

Svobody Str. 97

150049 Yaroslavl - Russia

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Business

offshore manufacturing

supply chain

integrated

global sap

fulfill customers

services amp

fully integrated

excellent