Next Evolutionary Wave. The New Walmart Hard Lines On-line Delivery

Poly Wheel, llc (PW) to
Deliver On-line Bicycle
Sales to Walmart
Customers in - 24 Hours
PWi ‘s innovative on-line, on-site
assembly and delivery services disrupts a
cottage industry, assembly contractors.
Disrupting Assembly Services at Walmart

Delivering On-Site, On-
Line Assembly Services
RightNow!
A Disruptive Business Model of Java EE
Middleware & Social Media Technologies:
• Improving end-to-end WO transactions
by 54.3%, 3rd Qtr. 2013
• Benchmark quality wage production
volume by 54.3%
• Reducing cycle cost PWO by 44.4%, 4th
Qtr. 2013

From 2013 – To Now!
On-line, On-site Bicycle Assembly &
Delivery Services
Next evolutionary wave
The New Walmart

Poly Wheel, llc (PWi), a national
account, is the fastest growing, and
currently the largest prime federal
semi-manufacturing assembly
contractor for the Army Air Force
Exchange Services (AAFES), a U.S.
Department of Defense (DOD) agency.

PWi, also has an increasing volume of
commercial contract accounts with the
Walmart Corporation, and is scheduled
to begin executing a Web to mobile
on-line, on-site assembly and delivery
services for selected AAFES’ and
Walmart’s registered customer, as a
pilot project.

Doug
McMillon
Walmart's
New CEO
 Countering new
challenges
 Amazon and Dollar
Stores disruptive
threats
 Next Evolution Wave
 The NEW Walmart
Challenges & Solutions

Status: 2013
Looking
back
• Raised payroll
taxes
• Cut food-stamp
benefits
• Stores sales drop
• Budget suffered

Status: 2014
US Walmart
 4th Qtr. Fiscal 2014
Below USD1.60 -
1.70
 3,275
supercenters, core
US business
 90% of Americans
shop at Walmart
once a year

Status: 2014
warns of
weakness
 4th Qtr. Fiscal 2014
Below USD1.60 -
1.70
 Struggles Against
Amazon for
Market Dominance

SWOT: 2014
Strength
 Independents sell
in side Walmart’s
portal 5M items,
2013
 Walmart labs roll
out apps that ‘scan
shop’
 Five to ten new on-line
warehouses
-

SWOT: 2014
Strength
 2.2 million
employees
 3,275 supercenters
core US business
 90% of Americans
shop once a year
-

SWOT: 2014
Weakness
 US Congress laws
impact shoppers’ purse
 No avail 24 hour on-line
shopper list of items for
pickup (OLSLIP, OsliP)
 5 days lag: Site to store
& 3 days lag:assembly to
on-line customer

SWOT 2014
Weakness
 Sustainability
challenges with
waste (hard lines)
boxes
 No ‘24 hours on-line
retail space’ at
supercenters for on-line
shopper list (of)
items (to) pickup
(Oslip)

SWOT: 2014
Opportunity
 accelerate roll-out
of small formats
stores:
 Opening: 270-300
small-box stores in
2014
 Breakdown: 200
community
markets & 100
Walmart express
stores

SWOT: 2014
Opportunity
-Walmart will open
120-150 smaller
grocery shops, only
just 115 supercenters
- Still-smaller “express
stores” into Urban,
Rural, campus, and
community markets
AZ Campus: 5k or 465 sq. m

SWOT: 2014
Opportunity
-Express pharmacy is
located:
- left of the main
store entrance
- Easy in and out
- limit to cross-category
purchases
5k or 465 sq. m

SWOT: 2014
Opportunity
-New chief of e-commerce
Neil Ashe,
to match scale, and
speed by 2016
-AMZN, fast-moving
target
Poly Wheel (PW) has
designed a solution
-How?

SWOT 2014
Threats
- From the Top of the
Market:
- -Amazon has friendly
“On-line One day
local pick/up strategy

SWOT 2014
Threats
- From the Bottom of
the Market:
- -Dollar stores sells at
rock-bottom prices
and located in closer
to shoppers’ homes

Anywhere, Anytime
Delivery to Walmart’s
On-line Customers
An Everyday Low Price On-line,
On-site Assembly & Delivery
Service Model.

Justifying The Risk
(JFR)?

JTR Benefits - Innovation!
WALMART: A Walmart approved, secured
PWi hard lines (HL)semi-manufacturing
assembly plant:
 Facility lease prepaid via Walmart
chargeback on PWi ‘s invoicing
 Better, faster cheaper assembly and
delivery services based on analytical
forecast

JTR Benefits – A Seamless
Capture/Order/Fulfillment
WALMART: Fulfilling assembly and
delivery of real time fully assembled
HL(s) to Walmart’s retail floor, upon
demand via:
 Eliminating “order promise”
 Bring to zero unassembled HL space
 Better, faster assembly and 24 hour
optional customer delivery service

JTR Benefits - Seamless
Customer Experience
Fulfilling assembly and delivery of real
time fully assembled HL(s) to Walmart’s
retail floor, upon demand via:
 Oracle CX RightNow Cloud Services
 Oracle Manufacturing Solutions
 Oracle Order Fulfillment Solutions

JTR Benefits –A 24 Hour
Delivery Demand Growth!
 CUSTOMER: To satisfy a high demand for
on-line 24 hours assembly & home
delivery services:
 To secure:
 Sustainable, flexible price structure
 affordable, mass production assembly
and delivery services
 Poly Wheel, llc‘s Mid Atlantic Regional
Assembly Center Pilot Project
(PW/MARAC)

Justifying the Risk
Enhancing Walmart’s Customer Experience
by:
 Enhancing STRENGTH
 Suring up WEAKNESS
 Extending OPPORTUNITIES
 Neutralizing THREATS

Converting Weakness to
Strength… How?
Enhancing Walmart’s Customer Experience
by:
 Enhancing STRENGTH
 Suring up WEAKNESS
 Extending OPPORTUNITIES

 SWOT 2014
Weakness
 US Congress hit
shoppers’ budget
 No available ‘24
hours on-line retail
space at
supercenters due to
unassembled
hardline (HL)
storage
 Converting
weakness to
Strength:
 Adding enhancing
value to on-line retail
customer experience
(CX) & yet comply with
everyday low pricing
strategy

 SWOT 2014
Weakness
 No available ’24
hour’ delivery of on-line
selected list
(of) items (for)
pickup (OSLIP or
Ol*Slip) and added
delivery to on-line
HL shoppers
* Ol (on-line, in the cloud)
 Converting
weakness to
Strength:
by providing an
optional 24 hour OlsliP,
added delivery request
in combination with
on-line HL shopping

SWOT 2014
Weakness
 No available 24 hour
on-line assemble of
hardlines for
shoppers
 No available
optional on-line 24
hour delivery to
shopper’s home
delivery of
assembled hardlines
 Converting
Weakness to
Strength:
 PWi’s Oracle CX
Contact Center will
offer on-line shopper’s
24 hour assembly
booking
 24 hours pick up and
delivery of OlsliP from
PWi’s Assembly Center
supporting request
shoppers of on-line HL
retail merchandise

 SWOT 2014
Weakness
 No avail 24 hour on-line
shopper list of
items for pickup
(OLSLIP or Olslip)
 Early morning
shoppers expose to
mounting risk of
injury from HL boxes
stored the night
before
 Converting
Weakness to
Strength:
 Neutralizing THREPW
Center Wows on-line
shoppers w/ 24 hour
assembly & delivery
 Manage on-line supply
chain logistics of store
to PW Assembly Center
in 24 hours from PW’s
Ctr. or support
shopper’s Olslip
request

 SWOT 2014
Weakness
 No available on-line
space at
supercenter due to
HL storage
 Extra Burden cost of
$1K per day for
trailer/container
storage of bikes and
assembly
merchandise
 Converting
Weakness to
Strength:
 Double win/win for
space by removing all
HL pallets off of
Walmart site – store
delivery trucks to be
PW center for pre-assembly
& storage

Core Objective1: Price
Structure & Flexibility
 To satisfy a high but unavailable demand
for assembly & delivery of children and
adult bicycles within Walmart’ s everyday
low price structuring;
 Option 1:Open Purchase Order;
 Or
 Option 2:Annual Fix Price.

Option1: Current Pricing
for Bicycles.
 Option 1, current option being executed
by Walmart & Poly Wheel, llc. Open
Purchase Order:
$12 per 18” bicycles and below
$13 per 20” bicycles and above
Note: For more information. See current
contract details

Option2: Proposed Annual Fix
Cost(AFC)Pricing for Bicycles.
 Part 1: A proposed AFC executed by
separate Walmart vendor contract
 Annual Fix Cost (AFC):
$10 per 18”(down) bicycles: $1.2M
$13 per 20”(up) bicycle: $1.3M
Fuel cost for every 200k bikes
Delivered:$160k
 T

Option2: Proposed Annual Fix
Cost(AFC)Pricing for Bicycles.
 Part 2: Continued executed a part 2 of
Walmart & Poly Wheel Contract:
Purchase of 10 trucks: $100k
Bonding +Auto +Liab + Worker: $120k
AFC Subtotal: $2.88M + (Burden)
 T

Current: Open Purchase
Order
 Our current pricing detail continued:
 Line Item Activity 4:
 Line item4 cost.

Optional: Fix Cost Agreement
 Our optional fix cost agreement pricing
detail is also, based upon demand:
 Service Level Activity1:
 SLA1 cost: $
 SLA2 cost: $
 SLA3 cost: $

Optional: Fix Cost Agreement
 Our optional fix cost agreement pricing
detail continued:
 SLA4 cost: $
 SLA5 cost: $
 SLA6 cost: $

Core Objective2: Assembly
Services
 We deployed a wage integrated
production assembly services system (Wi-
PASS) metric:
 Accelerated end-to-end work order
performance transactions per purchase
order by est. 54.3%
 A100% retention rate via 25 states $2.9
Mil workforce public equity investment
strategy

Objective2: Assembly
Services
 Wi-PASS On-line, On-site Performance
Metric:
 Benchmark production volume (e.g.,
financial and operating) ratio(s)
 Reducing transaction 'cycle cost per
work order’ by an estimated 44.4%;

Objective2: Assembly
Services
 Enhancing customer on-line retail
experience is a chain of events
 Tools for quality assembling of customers’
On-site and or On-line purchased semi-finished
merchandize

Objective2: Assembly Services
We' ll avoid your CX from going into the
ground, saving you quality time:
 Quality benchmark services. Without
complaint! No exception!

Core Objective3: Customer
Services
 Forget something? Tell us & we will
complete your customer experience - CX.
 We integrate our services with the theme
of your event.

Objective3: Customer
Services
 We integrate our services with the theme
of customer’s event
 We will enhance customer’s CX journey
with us again, again

Services
 We assess and will deliver teachable
moment cues, for free
 We deliver high volume, quality,
benchmark production assembly services

Services
 Connecting to you for a great customer
experience
 We deliver high volume, quality,
benchmark production assembly services

Core Objective 4: Responsible
Service
 Delivered to us, we receive your
shipment and inherit your journey
 Quality, benchmark assembly services
in a friendly environment

Objective 4: Responsible
Service
 We cater to your festive occasion or
eventful theme
 We are a certified, professionally
integrated on-line assembly center

Service
 We cater to your festive occasion or
eventful theme
 At Primavera, we'll safeguard your
customer journey

Service
 Via delivery of added or replaced retail
item(s) that may interest you
 We'll coordinate assembling of your added
or replaced retail item(s)

Service
 We enhance your customer experience in
ways that fit your style
 By Facebook, live chat, twitter, self-serve,
email, phone, Etc.

Service
 We'll assemble your precious cargo, while
customer continue shopping
 We fit your lifestyle. Knowing what you
need to know, when you need to know it

Service
 We integrate your assembly needs,
delivering on multiple same day themes
 The end of your customer journey, begins
with us. So, let’s get this party started

Core Objective 5: Human
Resource
 Our On the Job Training and
Apprenticeships are federal and state
sponsored
 Our basic on-line assembly services
theme? Free delivery

Objective 5: Human Resource
 Enhancing your customer journey is as
easy as 1-2-3.
 Optionally, we mix assembly of your
fitness equipment with a free trial session
with partnering wellness providers.

 Our On the Job Training and
Apprenticeships are federal and state
sponsored
 Our basic on-line assembly services
theme? Free delivery

 As an employee at Poly Wheel, we are not
just technical, we are into technique

 Our payroll integrates quality production
with benchmark performance! Perfect job
 As employees at Poly Wheel, we are not
just technical, we establish benchmark
performances

We Understand!
 How to satisfy on-line shoppers’ assembly,
delivery demands & secure and execute:
 Long-term contract
 Flexible price structure
 Mass production access
 Poly Wheel’s everyday low price model

We Understand: The Job
Customers Routinely Needs Done!
 To satisfy a high demand, by Wal-Mart on-line
shoppers, for Poly Wheel, llc ‘s
assembly & delivery services
 To secure a long-term sustainable, yet
flexible price structure, while providing,
affordable, mass production access to
assembly and delivery services, well
within Wal-Mart’s everyday low price
model

Today’s Situation
 Summary of the current situation
 Use brief bullets, discuss details verbally

How Did We Get Here?
 Any relevant historical information
 Original assumptions that are no longer
valid

Available Options
 State the alternative strategies
 List advantages & disadvantages of each
 State cost of each option

Recommendation
 Recommend one or more of the strategies
 Summarize the results if things go as
proposed
 What to do next
 Identify action items

APPENDIX - Option2: Proposed
Annual Fix Cost(AFC)Detail
 Option 2, a proposed AFC executed by a
separate Walmart & Poly Wheel Contract
$12 per 20”(down) bicycles: $1.2M
$13 per 21”(up) bicycle: $1.3M
3 gallons of gas per 5 bikes each lot
of 200k bikes picked up & delivered:

APPENDIX - Option2: Proposed
Annual Fix Cost(AFC)Detail
 Option 2, a proposed AFC executed by a
separate Walmart & Poly Wheel Contract
$160K in gas per 200k bikes
$100k per purchase of 10 trucks plus
$100k (Performance-bonding-liability-
W/C)

Next Evolutionary Wave. The New Walmart Hard Lines On-line Delivery

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