The document proposes an eAuction system to sell meat from JBS to customers, which could potentially reduce the profits of meat redistributors and reprocessors by 5-10% by allowing all customers to bid. It outlines the current distribution channels and stakeholders involved, risks like lack of experience and potential cartelization, and provides an action plan and examples of successful eAuctions. The conclusion states that a properly implemented eAuction could increase profit margins for JBS and reduce profits for redistributors.

1. 1,2,3, …Sold!Ebele DijemeniFrancois BioulMadeleine OsterShavi SharmaThomas HerberAugust 5th, 2011

2. 1,2,3,… Sold! Executive SummaryRedistributor/Reprocessors sell meat to potential JBS customers

3. Taking out of JBS profits

4. Our solution: eAuction

5. All customer have access to bid

6. Results: reduce redistributor’s spread by 5 – 10% 1,2,3,… Sold! Make the Concept RealJBSReprocessorsRedistributorsFoodservices supplier (Sysco)Retailers (Costo, Walmart…)SupermarketRestaurantsGrocery Stores ChainsDistribution Channel - Presently

7. 1,2,3,… Sold! Make the Concept RealDistribution Channel - AssumptionsJBS$90/100 lbs Sell @$100/100lbsRedistributors/Reprocessors$98/100 lbs$98/100 lbsRetailers(Costo, Walmart…)Food Services Suppliers(Sysco)

8. 1,2,3,… Sold! Make the Concept RealThe ProblemPrice?Redistributors/Peprocessors(Speculator) ) Price

9. 1,2,3,… Sold! Make the Concept RealJBSProposalAuction MarketExample1million pounds @ $90/100 pounds due Monday 3pm (PT)COSTCO bids $90 at 10 am Redistributor A bids $91 at 11 amRedistributor B bids $93 at 1 pmRedistributor C bids $94 at 2 pmAuction closes at 3 pm and Redistributor C wins the contract for $94Retailers(Costco, Walmart…)Redistributors/ReprocessorsFood Service(Suppliers)

10. 1,2,3,… Sold! Define the MarketOverviewhttp://www.wikinvest.com

11. eAuction1,2,3,…Sold! Define the Market3,08B pounds of Beef sold through Redistributors and Reprocessors

12. They buy meat from JBS and resell it to potential JBS customers at a higher price, but below JBS price

13. eAuction places that amount of meat on the market to a bidding system

14. Distributors, Redistributors, Reprocessors, Food Service Suppliers, etc. can bid and purchase by auction

15. The difference between minimum price and selling price > additional profit + makes the business for redistributor in the long-term unattractive1,2,3, … Sold! Business Model + Market SizeWho are the Stakeholders?Redistributors

16. Reprocessors

17. Food Service Distributers