April 11, 2018 Next Generation Supply Chain Vision & Roadmap

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April 11, 2018Next GenerationSupply ChainVision & RoadmapOracle Retail Supply ChainNicholas Oswald, Associate Director, DemandPlanning and Forecasting and Operations, Best BuyMike Johnson, Solutions Director, Enterprise &Supply Chain, Oracle RetailCopyright 2018, Oracle and/or its affiliates. All rights reserved.

Safe Harbor StatementThe following is intended to outline our general product direction. It is intended forinformation purposes only, and may not be incorporated into any contract. It is not acommitment to deliver any material, code, or functionality, and should not be relied uponin making purchasing decisions. The development, release, and timing of any features orfunctionality described for Oracle’s products remains at the sole discretion of Oracle.Copyright 2018, Oracle and/or its affiliates. All rights reserved.2

Oracle Retail User GroupSupply Chain SIGWhat is ORUG? The Oracle Retail User Group (ORUG) is an independent community that providesdynamic forums for customers to share information, experiences, and expertise. Special Interest Groups (SIGs): Supply Chain, Merchandising, Omnichannel, Technical,Brand Compliance, Loss Prevention and Planning & Optimization SIGsCopyright 2018, Oracle and/or its affiliates. All rights reserved.3

Today’s Retail LandscapeRetail in 4 Dimensions42% 55% 73% 50% 65%are now shopping bothonline and in-store everyweekwant to be able toreserve online for sameday pick-upwant to return an onlinepurchase to a storewould be attracted topersonalized offersbased on purchase,loyalty and browsingdataCopyright 2018, Oracle and/or its affiliates. All rights reserved.say personalized offers /promotions are mostimportant to them7

EmpoweredCommerceAnticipate Simplify InspireEmpowered Commerce speaks to both the Retailer and the Consumer:it simultaneously enables consumers to shop how, when and wherethey want – and enables retailers to engage consumers and drive themto desired resolution without sacrificing profits.Copyright 2018, Oracle and/or its affiliates. All rights reserved.8

Supply Chain Market DriversFlexibility & Efficiency Powered by IntelligenceData & ScienceNew TechnologiesMarket ExpansionMachine LearningRetail ScienceInsights & AutomationBlockchainIoTCloud ServicesCustomer FulfillmentFlexible SupplyMarketplaces/Role of storeInsights &IntegrationAvailability &EfficiencyIntelligence &OptimizationCopyright 2018, Oracle and/or its affiliates. All rights reserved.10

Enabling Supply Chain EfficiencyReal-time visibility, insights, and action powered by pluggable scienceCloud & MobilePlatformEnterprise InventoryVisibilityInventory Planning &MovementPluggable Science &OptimizationFoundation &OperationsRole-based enterprisewide launch page &workflow; Consolidatednotifications, exceptionmanagement and favoritesReal-time granular view ofinventory within any location;Web service enabled toconnect with Blockchain & IoTexpansionEfficient, modular servicesused to move inventory tomeet consumer needs;common integration & data;Real-time executionAI, Machine Learning,Optimization, Sciencedeployed against a commondata set; provides insight &automation to make betterdecisions with inventory &assetsSingle view of item,location, order, financials asthe backbone to the supplychain; execution ofinventory updates & movesacross supply chainCopyright 2018, Oracle and/or its affiliates. All rights reserved.11

Inventory Transparency & AvailabilityConnecting technology & processEnterprise Inventory Cloud Service(EICS)Real-Time Sequential InventoryStore Operations Cloud Service(SOCS)In-Store Inventory Operations & Tasks Pre-integrated with inventory updating apps & services (POS,SOCS, IoT, RSCN, RFID, WMS, etc.) Streamline instore customer facing activities & remote storeprocesses Real-Time & on-demand web service integration Provide flexibility in inventory movement tasks (Ordering,Outbound, Customer Fulfillment) Granular, sub-location view of inventory Embedded analytics & dashboard tooling Improve merchandise management & labor productivityCopyright 2018, Oracle and/or its affiliates. All rights reserved.17

Supply Chain NetworkData exchange with Brand Owner enterprise solutionsfor planning, buying, shipment and inventoryExtendable KPI dashboard on allregistered transactions acrossyour trading connectionsSocial network capabilitiesincluding news feeds, discussionand messagingMicro App library for adoptionacross the supply chainIndividual data security controllingpublic, connections, cloud servicesand private preferences.Company and tradingconnection profilesdefining who, what, whyand where.Synchronised common sets of data acrossall connected apps, IoT’s and systemsExternal accredited cloud services tomicro apps, IoT’s, systems anddatapools for capturing and exchangingprocess data transactionsIndustry wide analytics controlledby data protection algorithmsBlockchain Cloud enabled to ensurethe integrity of each transactionCopyright 2018, Oracle and/or its affiliates. All rights reserved.18

Supply Chain NetworkNetwork Micro AppsQuality inspection apps for testing product,samples, packaging, environment, etc.Assessment apps for capturingaudits, performance, materialuse, processes, etc.Sourcing apps for findingsuppliers, products and capturingtenders, samples, etc.Standards apps for capturingcertifications, accreditations,awards, qualifications, etc.Inventory apps for capturingvolume, movement,shipment, location, etc.Agreement apps for capturingcontracts, deals, policies,pricing, etc.Financial apps for capturing orders,reimbursement, penalties, etc.Consumer feedback apps for capturingcomplaints, panel tests, market insight, etc.Copyright 2018, Oracle and/or its affiliates. All rights reserved.19

Strategic Application EvolutionModular, Connected, Real-Time in the CloudNext GenerationRPASModernized IntegrationReal-Time PerformanceException & Persona DrivenModular ggable SciencePurpose Built ML & AIOngoing InnovationPurchasingCustomer Order DistributionInventory BalancingReverse MovementsStore OrderingBuild Your OwnCopyright 2018, Oracle and/or its affiliates. All rights reserved.Real-Time ExecutionModular Deployment PacksRetail Vertical Based Templates21

Inventory BalancingRe-distribution science powering planning & operationsShould I re-think my plans & supply chainfulfillment strategies?Where do returns happen & what should I do with thatinventory?What is the cost effective execution strategy?Copyright 2018, Oracle and/or its affiliates. All rights reserved.22

Oracle Retail Advanced Science Cloud ServicesThe Intersection of Human Judgment and Machine AutomationConnect people to the applications& information they needCONNECTTake informed andtimely actionEnable innovation with scienceand advanced analyticsANALYZEProvide dynamicdashboards, withfiltering, drilling, slicing,dicingEXPERIMENTEXPLOREACTSupport highly-visual andself-service data discoveryCopyright 2018, Oracle and/or its affiliates. All rights reserved.24

Oracle RetailA Connected Data ApproachUnified AccessApplicationsOrder ManagementItem PlanningOrder BrokerInvoice MatchingCustomerEngagementSales AuditCommerceAllocationSocial RelationshipManagementMerchandisingDemand ForecastingAssortment Planning& OptimizationMerchandiseFinancial PlanningLoss taWarehouseWarehouseDataExisting SourcesCopyright 2018, Oracle and/or its affiliates. All rights reserved.Data ReservoirEmerging Sources25

Automating At ScaleOracle Retail ScienceInventory MovementPlanningPricing and PromotionsDemand-Driven EnterpriseCustomer Driven AssortmentsOmnichannel OffersReplenishmentAllocationsTransfersHow do I best position my inventoryacross my ationIWInnovationWorkbenchSPOSize ProfileOptimizationMSOMacro SpaceOptimizationStatisticsAssortmentPlanItem PlanPromotionPlanHow do shopping behavioursdiffer online versus at TCustomerDecision TreesPromotionsMarkdownsOffersWhat should I promote to a givencustomer and motion &MarkdownOptimizationCSCustomerSegmentationData VisualizationAIMachine LearningOptimizationSingle Data FlowCopyright 2018, Oracle and/or its affiliates. All rights reserved.26

RDF Cloud ServiceWhere We Are HeadedLifecycle ForecastingMentalityR&D emphasis on evolving Short LifecycleForecasting capabilitiesTailored methods for short and long lifecycleforecastingSeamless transitions from one lifecycle stageto anotherCommon demand parameters throughout theproduct lifecycleIntroductionGrowthMaturityPowered by Best-fit ScienceUnsupervised Machine Learning (ML)Attribute-based New Item ForecastingData Pooling ClassificationCustomer Segment IdentificationRaw Promotion ClassificationSupervised ML & Natural Language ProcessingAttribute ExtractionAttribute BinningSocial Sentiment EffectsData MiningCustomer Offer Demand EffectsCannibalization Group ClassificationHalo Effect EstimationUser ExperienceOptimized for ProductivityResponsive Forecasting for On-demandforecast updatesException Driven processes - set prioritieswith the Exception Dashboard and manageexceptions with re-engineered Real-timeAlertsDesigned for the typical end-user (ratherthan the scientist)DeclineStatistics and OptimizationRegression TreesRobust EstimationCannibalization Effect EstimationEscalation Level OptimizationMethod & Parameter OptimizationCopyright 2018, Oracle and/or its affiliates. All rights reserved.27

Merchandise Operations Management (MOM)Operational Backbone For All Systems Provides the foundation for all other retail systemsPLANNING &OPTIMIZATIONSUPPLY CHAINPLANNINGSUPPLY chandise Operations – Foundation for Empowered CommerceSALES AND RETURNSCLICK/RESERVE: Collect in Store Ship to CustomerRELEVANT: On-line On the Phone In the Store On the GoIN STORE: Take With Order & Ship Pick-up Pick-up inAnother StoreRETURN: Pick-up at Home Ship to Warehouse Return to StoreFULFILLMENTOPTIONS: Store DC Customer VendorBricks &MortarCommerceFranchiseWholesaleImprove responsiveness - Improve efficiency of process execution - Improve decision makingCopyright 2018, Oracle and/or its affiliates. All rights reserved.30

Warehouse Management CloudEnabling Empowered Commerce ExecutionFULFILL ANYWHEREWarehouse Fulfillment: Ship to Store Ship to Customer Cross Dock Kit & Dekit Customer Pick UpStore Fulfillment: Take With Customer Pick Up Ship to Customer Ship to Another StoreBUY ANYWHERERETURN ANYWHEREWarehouse Returns: Return to Vendor Customer ReturnsCopyright 2018, Oracle and/or its affiliates. All rights reserved.Store Returns: Customer Returns Return to DC Return to Vendor31

Supply Chain Vision & Roadmap Oracle Retail Supply Chain Nicholas Oswald, Associate Director, Demand Planning and Forecasting and Operations, Best Buy Mike Johnson, Solutions Director, Enterprise & Supply Chain, Oracle Retail April 11, 2018