JobsOhioBeverage System

JobsOhio Beverage System

Inventory Transition Plan and Introduction to DHLPresentation to Suppliers, Brokers and VendorsMarch 10, 2017

JobsOhioBeverage System

Agenda

• Welcome from JobsOhio Beverage System (JOBS)• Transition Plan

– Warehouse Update– Receiving Procedures– Contacts

• LMP Phase 2 Update• Q & A

JobsOhioBeverage System

Transition Plan

JobsOhioBeverage System

JobsOhioBeverage System

Overview• Establish communication channels

– Weekly communications

• Contract Liquor Agency transition is gradual

• There will be six (6) operating distribution centers from April-June

• Work with Brokers and Suppliers to ensure efficient movement of stock into Green and Groveport

• Encourage the inclusion of Green and Groveport in inbound planning now

JobsOhioBeverage System

Store Transition Plan

Contract Liquor Agency transition is measured over an 8 week period. Site:Groveport

Week WeekofAddedStores

AddedVolume(Cases)

AddedVolume

(%)

CumulativeVolume(Cases)

CumulativeVolume(%)

1 May1-5 15 3,888 7% 3,888 7%2 May8-12 20 6,047 11% 9,935 17%3 May15-19 43 14,081 25% 24,016 42%4 May22-26 46 15,623 27% 39,639 69%5 May29-Jun2 54 12,885 22% 52,524 91%6 Jun5-9 38 4,906 9% 57,430 100%

Total 216 57,430

Site:Green

Week WeekofAddedStores

AddedVolume(Cases)

AddedVolume

(%)

CumulativeVolume(Cases)

CumulativeVolume(%)

3 May15-19 25 7,550 13% 7,550 12%4 May22-26 39 12,204 21% 19,754 31%5 May29-Jun2 21 6,033 11% 25,787 41%6 Jun5-9 47 12,620 22% 38,407 61%7 Jun12-16 58 12,420 22% 50,827 81%8 Jun19-23 58 12,299 21% 63,126 100%

Total 248 63,126

JobsOhioBeverage System

Agency Roll Out Approach Plan

Wave 4

Wave 3

Wave 2

Groveport DeliveriesAgency Cutovers

Wave 1

Wave 1

Green DeliveriesBuffer Periods

Buffer

Buffer

Buffer

Buffer

4/17 4/24 5/155/85/1 5/295/22

Wave 2 Buffer

Wave 3 Buffer

Wave 4 Buffer

Wave 5

Wave 3 Buffer

Wave 4 Buffer

Wave 1: Begins week of April 17

Wave 2: begins week of April 24

Legend:

Buffer

Buffer

Roll Out Waves Continue through June 2017

Initial Deliveries Continue into Early July 2017

6

JobsOhioBeverage System

Inventory Stocking Plan

The inventory stocking of the new DCs will gradual over a corresponding 8 week period.

DOH COHShippedCases

RequiredInboundCases DOH COH

ShippedCases

RequiredInboundCases COH

ShippedCases

RequiredInboundCases

-4 Apr3-7 0 0 48,564 - - 48,564-3 Apr10-14 7 48,564 48,564 48,564 - 48,564-2 Apr17-21 14 97,127 48,564 0 0 57,711 97,127 - 106,275-1 Apr24-28 21 145,691 48,564 7 57,711 57,711 203,402 - 106,2751 May1-5 28 194,255 3,888 52,452 14 115,422 57,711 309,677 3,888 110,1632 May8-12 35 242,818 9,935 58,499 21 173,134 57,711 415,952 9,935 116,2103 May15-19 42 291,382 24,016 72,580 28 230,845 7,550 65,261 522,227 31,566 137,8414 May22-26 49 339,946 39,639 88,203 35 288,556 19,754 77,465 628,502 59,393 165,6685 May29-Jun2 56 388,509 52,524 80,275 42 346,267 25,787 83,498 734,776 78,311 163,7736 Jun5-9 60 416,260 57,430 57,430 49 403,978 38,407 96,118 820,238 95,837 153,5487 Jun12-16 60 416,260 57,430 57,430 56 461,690 50,827 83,805 877,950 108,257 141,2358 Jun19-23 60 416,260 57,430 57,430 60 494,667 63,126 63,126 910,927 120,556 120,5569 Jun26-30 60 416,260 57,430 57,430 60 494,667 63,126 63,126 910,927 120,556 120,556

AllSKUsmustbeinthefacilityStoretransitioncompletedatthefacility

Week Weekof

GROVEPORT GREENINBOUND

BOTHSITESCOMBINED

JobsOhioBeverage System

Important Dates

Groveport DC Timeline Green DC Timeline

• Begin accepting appointments: March 13th

• Start inbound receiving: April 3rd

• All SKUs on hand: April 28th

• Start outbound deliveries: May 1st

• Full inventory required: June 9th

• Complete store transition: June 9th

• Product removed from incumbent warehouses:

no later than Aug. 31st

• Begin accepting appointments: March 27th

• Start inbound receiving: April 17th

• All SKUs on hand: May 12th

• Start outbound deliveries: May 15th

• Full inventory required: June 23rd

• Complete store transition: June 23rd

• Product removed from incumbent

warehouses: no later than Aug. 31st

JobsOhioBeverage System

Groveport Warehouse• The Center will predominantly serve Agency stores formerly served from

Columbus & Cincinnati• Steel frame concrete construction, built in 2000• Facility will encompass forecasted 3-5% annual growth• 310,000 square feet• Capacity of 550,000 cases (2017)• 27 dock doors• 100% Audit of outbound loads• 60-75 employees estimated• Occupancy begins in March• First Bookings March 13th

• First receipts April 3rd

• Deliveries commence May 1st

JobsOhioBeverage System

Green Warehouse• The Center will predominantly serve Agency stores formerly served from

Toledo & Cleveland• Steel frame concrete construction, built in 2002• Facility will encompass forecasted 3-5% annual growth • 350,000 square feet, 32 ft clear height. • Capacity of 653,000 cases (2017) • 28 dock doors• 100% Audit of outbound loads• 60-75 employees estimated• Occupancy begins in March• First Bookings March 27th

• First receipts April 17th

• Deliveries commence May 15th

JobsOhioBeverage System

Appointment Procedure

STEP 1: All products must be registered with the ODLC prior to receipt .

STEP 2: Ensure minimum barcoding and labeling requirements are met

STEP 3: E-mail an Advanced Shipment Notification (ASN) • 48 hours prior to booking appointment • ASNs must contain SKU & QTY details

STEP 4: Schedule an appointment by e-mail

STEP 5: Load arrives during the scheduled appointment

Arriving on time with correct documentation ensures receiving is hassle free.

JobsOhioBeverage System

Appointment form

TotalCases: TotalWeight: DateofRequest:

ASNDETAILREQUIRED

(ifadditionalspaceisneededpleaseincludeincomments)

ASN#(PO) Cases ASN# Cases ASN# Cases(inputyourPO)

0 0 0REQUESTTYPE:

CheckOne:

IfNOTfirstrequest,originalappointmentnumber:

Requestor:

CheckOne: CarrierRequestLoadtype:

CheckOne:Shippingmethod:

CheckOne: LTL

Istheloadonslipsheets(pleasecircle): YES NO IfYES,pleasel istthenumberofsl ipsheets:

AppointmentnumberisREQUIREDforgateentry

DeliveryInformation: YourContactInformation:CompanyDeliveringLoad: Company:ContainerorTrailer#: Name:PreferredDeliveryDate: Phone:PreferredDeliveryTime: E-mail:

COMMENTS:

AppointmentConfirmation(ExelUseOnly)

Booking/AppointmentNumber:AppointmentDateandTime:Location:

RESCHEDULE

FormMUSTbecompletedtosecureanappointment.Incompleteformwill berejectedandreturnedforcompletion.

BrokerRequest

Domestic Import

Green,OH Groveport,OH

TransloadTrailer(FTL)Container(OverseaImport) (USimport,domestic,OTR) (destuffedcontainer) (Lessthanfull load)

APPOINTMENTREQUESTFORM

FreightForwarderRequest

FIRSTREQUEST ADDTOEXISTING

JobsOhioBeverage System

Barcodes & State CodesODLC requires that all product entering Bailment have:• Two barcodes on adjacent sides• One human readable State Code

Product Description

Bottle UPC Number

Bottle UPC Barcode

State Code

Bottle Size

Case UPC Number

Case UPC Barcode

JobsOhioBeverage System

Planning

• Develop a strategy to ensure their optimal stock position across six (6) sites– Agencies on new system will be filled by DHL– Agencies not yet transitioned will be served from incumbent network – There will be no direct transfers between DHL and incumbent DCs during launch of new system– Transfers need to be Incumbent DC-Vendor-DHL

• DHL will circulate recommended holding to each vendor– Recommended average of 60 days on hand– Consider and plan inactive (dead) stock – Evaluate and plan to redirect loads across six (6) sites

JobsOhioBeverage System

Transition Plan Appointments

• Each Vendor will be provided a recommended level of inventory on hand

• Appointments on a first come first served basis• During transition “hot” items will be accommodated

• Consolidated loads need to be identified on booking

• Receiving hours 7am-4pm, Monday - Friday

• Planned build to approx. 425,000 cases in Groveport, 450,000 cases in Green

DailyAppointments 3-Apr 10-Apr 17-Apr 24-Apr 1-May 8-May 15-May 22-May 29-May 5-JunGroveport 7 15 20 20 20 20 10 10 10 10Green 0 0 7 15 20 20 20 20 10 10

JobsOhioBeverage System

Incumbent Transfer Process• Product must be palletized

• Representative Owner/Vendor of product shall be on site to agree to count and condition

• Pallet to be placarded and sealed with security tape before loading on trailer

• An appointment with the DHL warehouse shall be made by the Vendor

• No more than three vendors per load; each would create their own BOL

• Appointment will use the standard Appointment Request Form

• Receive inbound product from Vendor

• OS&D would be managed as per the standard process

• New FIFO date is receipt date

JobsOhioBeverage System

Site Contacts - GroveportCassandra Stuckey - Customer Service Supervisor

customersvc.groveportOH@DHL.comAppointments.groveportOH@DHL.com

Tony Robertson – Site Manager GroveportTony.Robertson@DHL.com

Rob Huff – General Manager Rob.Huff@DHL.com

Paul Ledger – Key POC for Transition 512.517.2052Paul.Ledger2@DHL.com

JobsOhioBeverage System

Site Contacts - GreenCassandra Stuckey - Customer Service Supervisor

customersvc.greenOH@DHL.comAppointments.greenOH@DHL.com

Ryan Stannert - Site Manager GreenRyan.Stannert@DHL.Com

Rob Huff – General Manager Rob.Huff@DHL.com

Paul Ledger – Key POC for Transition 512.517.2052Paul.Ledger2@DHL.com

JobsOhioBeverage System

LMP Phase 2 Update

JobsOhioBeverage System

JobsOhioBeverage System

• Suppliers will need to enter into contract with JOBS for the storage of product at each of the new warehouses by April 3rd

– The contract was delivered March 9th via email from Don Grubbs, JOBS Legal Counsel– If you did not receive this document, please email grubbs@jobs-ohio.com– A single point of contact is needed

• Dynamics AX gives us one integrated system across the entire supply chain

• The launch of Phase 2 to Agencies will begin in April– A pre-launch stock-up plan, from inventory in incumbent warehouses, has been created for

Agencies and is in review; will be announced by March 17th

• System has been rigorously tested; beginning second round of End-to-End testing on March 6th

LMP Phase 2 Update

JobsOhioBeverage System

• The Enterprise Portal (formerly Vendor Portal) has reports that can be run such as Daily Inventory reports

– Suppliers will not receive reports from DHL like they have in the past from incumbent warehouse providers

• The new warehouses will be labeled as follows in the Enterprise Portal:– #50 = GPT = Groveport– #60 = GRN = Green

LMP Phase 2 Update cont.

JobsOhioBeverage System

Supplier/Vendor/Broker Training• Several sessions of webinar based training will be scheduled for the week of

April 3rd

– Specific dates and times will be communicated soon

• Upon completion of training you will receive the necessary information and credentials to logon to the new Enterprise Portal

JobsOhioBeverage System

Q & A