ADvantage SRBP Deck July 2022 - Final

Cross-Functional Use Case: Emergency Pallets

Use Case Objective:

Identify emergency situations that can be assisted by creating an emergency pallet, emergency allocation, or other proactive distribution.

Use Case Benefits: Planning ahead for emergency situations will put us at an advantage to be proactive when urgent situations arise. Some examples of where this is evidenced is in general planning for winter storms, hurricane season, and recent work around Covid-19. Collaborating across vendors to make mixed pallets or utilize the capabilities at ES3 can make us more effective during these situations.

Process/Analytical Steps:

Metrics to Review:

• Historically, the business has identified these opportunities and collaborated with ES3 and/or the vendor community to develop configurable solutions. • Creating a single pallet that is either delivered by a vendor or compiled in ES3 allows a greater level of efficiency at the warehouse where they will only have to pick one item that is already palletized, versus having to select many items and create a pallet. 1. Determine if/where there is a need to create a custom pallet 2. Review the item sales of items that spike during historical emergency situations 3. Review the in-stock of these items during historical periods 4. Review the unsaleables rates of these items after the emergency period is over 5. Create a pallet build proposal and share with stakeholders 6. Review cost to build pallet with vendor & or ES3 to determine the cost/benefit

• Sales, in-stock and unsaleables rates of items that spike in sales during critical times

Teams to Involve/Collaborate:

• DC Operations - to coordinate ability to cross-dock or drop without using pick slots for the most efficient use of the pallet • ES3 - for pallet creation • Vendor - for pallet creation - item suggestions • Demand – In-Stock & Forecasting • Category - to collaborate on need and idea, item suggestions

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