© 2019 LLamasoft, Inc. All Rights Reserved.

Consumer behavior is changing and there are more channels than ever to meet their expectationsAs a retailer you have the pulse on consumer preferences. Do you have a profitable response to how you’ll deliver on these key customer trends:

Consolidation and Store Closures

Of the 1,200 shopping malls across the US, 50% are expected to close by 2023.1

Omnichannel Retail

Retailers will continue to see major shifts in sales by channel across in-store, e-commerce and mobile continue with e-commerce sales expected to grow by 5.8% and mobile by 7.1%.2

E-commerce Demand and New Delivery Models

Today’s multichannel consumers also expect a variety of fulfillment options to meet their lifestyle needs. Sixty-four percent of those surveyed buy online and ship to home; 34% buy online and pick up in store; and 15% buy online and ship to an alternative location.3

When the importance of the decision requires the smartest analysis, innovative retailers rely on LLamasoft to show them trade-offs and options for how their supply chain should be designed to create desired business outcomes. The LLamasoft Digital Design and Decision Center puts powerful answers in the hands of supply chain decision makers - across strategic, mid-range and operational time horizons – making data-driven decisions a reality within and across supply chain functions. With the ability to visualize, simulate and optimize your end-to-end supply chain processes, you’ll be able to answer the most complex supply chain transformation questions.

DATA SHEET

HEIGHTENED CONSUMER E X PEC TATIONS .

Is Your Supply Chain Designed to Deliver?

LLamasoft, Inc. 201 South Division Street, Suite 200 Ann Arbor, Michigan 48104, USA Phone: +1 866.598.9831 LLamasoft.com | Info@LLamasoft.com

© 2019 LLamasoft, Inc. All rights reserved.

Supply Chain Design Makes a DifferenceRetailers who proactively redesign their supply chains with LLamasoft can respond rapidly to the changing market environment and design their supply chains to balance the tradeoffs of cost, service and customer experience goals. Our retail customers identify an average of 12.6% total variable cost savings while creating a reimagined customer experience – requiring new interconnected decisions across supply chain functions including:

• Omnichannel Distribution

• Sourcing Optimization

• Cost-to-Serve

• Network and Capacity Planning

• Inventory Optimization

• Continuity Planning

“Retailers are at different stages of omni-channel adoption, but at every stage from initial strategy development to execution, there is opportunity to leverage modeling and simulation as a way to compare, socialize and test designs for the most confidence in your decisions.” – Peter Hunnewell, Director of Supply Chain Strategy at Michael Kors.

How are Global Retail Companies Leveraging Smarter Supply Chain Decisions?LLamasoft retail customers include some of the largest and most innovative companies in the world. Here are stories of retail customers’ achievements with LLamasoft solutions:

• A multibillion-dollar specialty retailer built a two distribution center model that enables them to service 95% of their retail stores and fulfill 92% of all online orders within two days. The challenge for this retailer was to have the available capacity to satisfy the nearly immediate whims of the consumer searching for fashion items. The retailer used LLamasoft to simulate various potential network configurations and identify the most efficient and cost-effective omnichannel solution. The national omnichannel distribution strategy met the retailer’s goals of providing better delivery times and helped with customer retention.

• A major luxury goods retailer saved more than 30% in supply chain costs and increased their ability to service their growing Asian luxury market. In order to make their overall business more efficient and profitable, the retailer needed to re-design their supply chain to maximize sales at full retail price across all the brands and businesses throughout the Asian market. They used LLamasoft for network and inventory flow optimization. In the end, the team produced six potential models, while each of the six scenarios solved the issue of more efficient inventory, one scenario proved to be the best choice and resulted in the retailer building a regional distribution center in China.

1. The Guardian2. 16th Annual Store Experience Study 3. 10th Annual Retail Shoppers Study

50%of Fortune 100

companies have designed their supply chains

with LLamasoft

Supply Chain Top 2524 of the Gartner’s Supply Chain Top 25 companies

leverage LLamasoft technology for the supply

chain decisions.

3,000+LLamasoft has supported

over 3,000 supply chain analysis and design solutions.