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Agenda

• Why 100%, and Why Customers Are Particularly Challenging

• Ralph Lauren Case Study• GXS Solution Overview• Q & A

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Typical B2B Adoption Dynamics

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As You Approach 100% Participation

• Reduced supply-chain costs • Improved invoicing process• Faster payments• Better cash flow• Improved employee productivity by

avoiding non-value-add (manual) process

• Better customer service by simplifying and streamlining communications

With GXS, 100% participation is possible.

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Business Challenges

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Current State: Dual Document Process

Your internal system

1. Electronic process with biggest customers

2. Manual process with the rest

Your customer’s

internal system

You enter order

You create invoice

You sendinvoice *

Your customerreceives invoice *

Yourinternal system

Your customers’ internal systems

* phone/fax/mail/e-mail

You receive order *

Customer sends order*Customer creates order

Your customerenters invoice

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• I can’t force my SMB customers to comply.

• My smaller customers don’t want to comply.– It takes too long to implement

EDI/AS2/etc.– It costs too much – Lack expertise

• A forms-based solution won’t work.– Too much keying– High risk of data quality issues on orders

100% B2B with Your CustomersYour Concerns

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Your SMB Customer Perceptions

• There is no cost benefit for me to comply; in fact, it is a negative return.

• I do not have the expertise to implement and sustain electronic solutions.

• All of my suppliers have different needs: how can I implement and manage multiple solutions?

• It takes a long time to implement EDI/AS2/etc.

I don’t have the resources to comply!

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Keys to Successful Customer Implementation Program

Right solution for SMBs:

• Easy-to-use

• Minimal data entry

• Data validation

• No-cost/low-cost

Clearly articulated benefits

Internal buy-in

Well-planned rollout

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Ralph Lauren Eliminates Paper with e-Invoicing and Advance Ship Notices

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Ralph Lauren Case Study

• Business Challenge• Solution Requirements and Selection• Implementation • Results and Benefits• Next Steps

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Ralph Lauren

• Ralph Lauren engages in design, marketing, and distribution of lifestyle products for Men, Women, Children and Home

• Ralph Lauren sells to department stores, specialty stores, golf and pro shops as well as operating 179 RL retail stores, 171 RL factory stores, and it’s own .com business

• Ralph Lauren is constantly looking for new ways to use technology to better the brand

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Background and Issues

• Exchanging EDI PO, INV, ASN with largest customers since 1980s; 75% of invoices sent electronically, delivering huge benefits

• High volume of SMB customer shipments “clog up the cogs”— manually attaching docs to cartons at the DC creating issues

• High volume of SMB customer service calls• Limited/no visibility

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Manual Processes at DCLabor-Intensive, Slow, Error-Prone and Time-Consuming

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Key Issues

• Shipment delays awaiting paper documentation (invoice and packing slip)

• Clogged shipping floor—high volume of small, non-conveyable cartons for small customers

• Parcel carrier issues drive call volumes – Shipment arrives over multiple days, hard to

tie cartons delivered to documentation– Lost / damaged cartons– Incorrect / missing documentation in cartons

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Solution Requirements

• Eliminate paper documents to streamline business processes in DC

• Enable customers to easily marry invoice and shipment information to cartons

• Integrate with current EDI technology• No cost to customer, easy-to-use, win-

win solution for SMB customers• On-board 85% SMB customers

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GXS for Electronic Invoicing and ASNs

Because:• Long history with GXS—

partnership relationship, high trust and responsiveness

• Intelligent Web Forms service easy-to-use with required features

• Proven on-boarding methodology• Flexible pricing—Ralph Lauren

pays all costs for community

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The GXS SolutionHow It Works

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Implementation Project—A Joint EffortEvolved to Ralph Lauren-Specific Streamlined Process

• Screens for web forms

• EDI mapping requirements

• Custom documentation, micro-site, webinars, communications to customers

• Train RL’s Sales, Customer Support teams

• RL registers customers, sends list to GXS

• GXS sends communication, follows up to reinforce RL’s message

• Customer can view recorded training

• RL cuts off paper, notifies customers of IDs

• Regular ongoing calls to review schedules, plans, issues between RL and GXS

• Ongoing customer feedback result in further streamlined web form, e.g., PO# and Division on the invoice screen

Continuing Partnership

Phased Rollout Preparation

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Results—Huge Win for Ralph Lauren

• Single process for all customers—large, medium, small

• Implemented 70% of our SMB customers to date

• Adding ~15/month ongoing• Cost savings:

– Greater efficiency in DC—eliminated paper and allowing fluid loads!

– Reduced AR and Customer Service research time, enabling focus on high-value activities

– Dramatically reduced mailing and printing costs – Shortened DSO

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Results—Huge Win for Ralph Lauren

• Timely Payments—customers can easily validate, reconcile and pay

• Better customer service—orders out the door instead of dealing with documentation

• Visibility—confirmation that invoice generated, sent, delivered, opened

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Results—Huge Win for SMB Customers

• Advance notice of shipments in-transit before cartons arrive at the door

• Real time – ASNs flow throughout the day• Ability to save, email or print a soft copy of

Invoice and ASN• Timely access and visibility to Invoices and

ASNs – will know if carton is lost; tracking IDs

• Easy reconciliation with invoices• Faster issue resolution• Enter the world of B2B at no extra cost!

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Results—Huge Win for SMB Customers

SMB Customer Feedback:“It’s very easy to use.”

“We know what’s coming in before it hits the receiving department.”

“It’s a lot faster…and I’m not waiting on somebody else to find out the information I need.”

“Polo Ralph Lauren is probably ahead of the game.”

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Lessons Learned

• No cost to SMB customers is key to their participation

• Technology is not a barrier; even the smallest business has a PC today

• Still exceptions—MAC users and some businesses resistant to change

• Customers now requesting online payment to streamline their process

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Next Steps

• Continued Rollouts• Implement Electronic Payments,

per customer request• Implement Electronic Purchase

Orders

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The GXS Solution Intelligent Web Forms + Expert On-Boarding

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Full Spectrum of EnablersIntegration Solution Matching Requirements of Each Supplier

Fax MicrosoftOffice

WebForms

IntegrationBroker

EnterpriseResourcePlanning

Small Mid-Size Large

DesktopTranslator

SMBAccounting

Package

SOHO Very Small Small National Global

Size of Supplier

Medium

Complexity of B2B Enabler

MobileDevice*

* Future Release

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Intelligent Web Forms

SMB-Friendly• Designed for SMBs that

have limited budget and resources for B2B

• No EDI or XML experience required

• No desktop software to install or manage

Easy and Configurable• Replicate any type of paper

form• Forms customizable for each

hub• Product lookup feature

ensures high data quality• Accessed via PC and

Internet browser• Register online in minutes

PDFDownload

DocumentTurnaround

File Upload and Download

Multi-lingualInterface

DocumentSearch

EDI/XMLTranslation

Hub’s B2BIntegrationGateway

Low Cost, Web-Based B2B Option for Small Businesses

TradingPartners

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Expert On-Boarding100% Customer Enablement

• Assign Program Manager

• Define goal & metrics

• Develop project plan

• Education & Awareness for your customers (emails, webinars, training, …)

• Program Overview for your internal personnel

• Send program materials to your customers

• Non-EDI enabled customers

• EDI customers test with GXS

• GXS provides weekly reports

• You and GXS conduct regular status meetings

• Provide on-going local language support to customers

• Define requirements for support of ongoing growth

Transition toMaintenance Mode & Planfor Growth

On-BoardCustomers

Kickoff Program

Develop Program Material

Strategize & Plan

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Questions?

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Thank You for Your Participation!For More Information…

GXS web sites

US: www.gxs.com

EMEA: www.gxs.eu

ASPAC: www.gxs.asia.com

Japan: www.gxs.co.jp

Phones

US: 1-800-334-5669, option 3

EMEA: +44 (0) 1932 776047

ASPAC: +852 2884 6088

Japan: +81-3-5574-7545

Presenters:Rochelle Cohen: Rochelle.Cohen@gxs.com

Samantha Cooke: Samantha.Cooke@ralphlauren.com