Discovered and Potential Savings Opportunities

Through the course of our assessment, the Taylor team observed several opportunities for Byer’s to implement changes that would directly benefit Byer’s through both hard dollar and soft dollar savings.

The first significant area of discovery involved the New Store Kits. Though not initially in scope, we were asked to review the processes related to New Store Kits. Through consultation with Field Leaders and Store Operations we were able to identify significant amounts of waste and inefficiencies. As a result, changes were implemented that lead to: • Elimination of obsolete and unnecessary signs from New Store Kits (right-sizing) resulting in savings of $1,000 per store (14% spend reduction) • Identified endcap signs not needed and eliminated from New Store Kits resulting in freight savings of $69 per store (1% spend reduction) • Successfully converted shipping method from parcel to LTL resulting in freight savings of $274 per store (4% spend reduction of kit value)

• Documented reduced time by Field Leaders in unpacking, sorting and installing signage as a result of right-sizing

New Store kits, saving roughly 6 labor hours per store (FTE savings of $312 per store)

Byer’s stands to benefit further through the adoption of Taylor’s recommendations within this document. By implementing our recommended process improvements and deploying enabling technology to support and maintain an improved state, Byer’s could realize the following:

• Reduce labor and cycle time on monthly pushes by as much as 15-30% through process improvements (SOP) and automation (technology)

• Sustain and maintain SOPs and practices implemented in rollout with automated process (kitting) management technology

• Expansion of savings through improved SKU management for reduced waste and errors • If current average waste is 10% per push — Byer’s would realize $120,000 annually in savings ($100 per store annually)

By continuing to implement industry leading technology (Profile Manager), Byer’s would be positioning themselves for a leap forward to an optimal state:

• Reduced waste from one size fits all kit by versioning to fit store size and attributes

• Unknown at this time, but estimated at 10-20% savings through print reductions

• Enhanced sales, margins and market acquisition through regionalized versioning and promotions

• Ability to personalize monthly pushes by region, language, seasonality and market pricing and promotions