How to Choose Integration- Your SaaS Strategy. Bob Sala President and CEO Distribution Market Advantage (DMA)

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1 How to Choose Integration- Friendly Types of Apps to Launch Your SaaS Strategy Bob Sala President and CEO Distribution Market Advantage (DMA)

2 How to Choose Integration- Friendly Apps to Launch Your SaaS Strategy Bob Sala President & Chief Executive Officer Distribution Market Advantage

3 The Foodservice Industry Food Eaten Away From Home Total Industry Revenue: $365 billion Top 500 Restaurant Chains: $230 billion (63%) Distribution Industry: $217 billion Top 50 Distributors: $97 billion (45%) Industry Characteristics Fragmented channel Little use of UPC/GTIN codes Lack of visibility in the supply chain by all parties

4 The Very Best in Food Distribution Distribution Market Advantage: Alliance of North America s best regionally owned and operated food service distributors Combines local distribution expertise with reach/ capabilities of continental organization DMA members serve multi-unit restaurant and institutional operators in U.S. and Canada Food Industry. Facts. Insights. Consulting.

5 World Class Distributors and dchain Operators DMA Food Distributors DMA Chain Operators

6 North American Warehouses

7 Our Value Prop: Distribution Service along with Innovative Technology Mid-tier chain operators Usually under-resourced Two-person supply chain shops Operator technology investments Operations rather than supply chain departments Need near real-time visibility into product movement and inventory positions Ensure adequate supply while preventing over stocks Need immediate access to quality data needed for optimal decision support

8 Our SaaS Technology Enables Supply Chain Management Tools

9 Knowing What We Wanted from Technology was Crucial Our Vision reflected target audience needs We wanted to customer loyalty and secure new customers stickiness in a commodity business We wanted a robust platform that mirrored top tier supply chain users with à la carte capabilities We needed a scalable, cost effective solution for our low margin business model We wanted to be content providers and managers and out-source the technology to best in breed suppliers

10 Technology Planning Process Customers Needs Test & Implement Solution Gap Analysis Share Vision with Tech Partners Create Vision

11 DMA s SaaS Evolution: Early and Committed Adopter Order Custom Business CRM Network Entry Hosted Apps Analytics Services 5,500 Customers Placing 700,000 Orders per Year Valued at $2.3B Product Cross- Referencing Monitoring for Changes in Product Attributes Self Service App Dashboards 50 Organizations 150+ users Profile Targets Manage Sales Assets Standardize Processes Reporting Data System Hosted Expense Warehousing Interoperability VoIP Reporting Process & Normalize Transactional Data Across 12+ Independent Companies Send & Receive Transactions to Hosted 3 rd Party Back-Office Systems Phone Messaging Conferencing Standardization Reporting 24/7 Active Monitoring Patch Management Off-Site Imaging g Spam Filtering Archiving

12 DMA Website is the Gateway For All Our SaaS Applications

13 Cornerstone: Single Order Entry Platform Preserves Distributor Brands

14 Cloud-to-Cloud: Leveraging DMA s Platform with 13+ Integrations

15 DMA s SaaS Ecosystem: Integrated and Evolving Orders Customer s Hosted 3 rd Party Back-Office System DMA s Hosted BI Applications DMA s Hosted Order Entry Platform Orders Orders Invoices DMA s Hosted Data Warehouse

16 Focus on Providing Actionable Content, t Not Managing Technology Deep supply chain visibility via hosted Business Intelligence Inventory visibility Price verification KPI score carding Delivery frequency exception reporting Consultative approach to problem solving Leverage best practices & lessons learned

17 Self-Service Business Intelligence Serves All Types of Users Drag & drop Easy to customize

18 Spectacular Data Visualization Through Dashboards

19 SaaS is a Low Cost Way to Bring Insight to Supply Chain Inefficiencies Vendor spend analysis Visibility to product movement and inventory during Limited Time Offers (LTO s) Delivery frequency optimization Pi Price verification i Product and specification compliance Distributor score-cardingcarding

20 Partners Matter: The Difference Between Success and Failure Select partners with highly scalable, innovative and proven solutions The reason we chose PivotLink, itradenetwork and Salesforce.com Scale usually translates into: Lower cost Comprehensive feature set On-going innovation Reliable security Visualize your ideal solution before interviewing partners

21 7 Guiding Principles for Selecting Integration Friendly App Partners 1. Commitment to products, services innovation aligned with our technology vision 2. Committed to protect data confidentiality and respect for data ownership 3. Provides cost effective, scalable solutions 4. Financially viable and have experience hosting 5. Provides high service levels (up-time) backed by service level agreements 6. Flexibly approach to customized/professional services with exclusivity 7. SaaS 70 Type II Certification

22 Food Industry. Facts. Insights. Consulting. Thank you Questions? Bob Sala, CEO, Distribution Market Advantage (847)

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