RightChain | Supply Chains Solved

INITIATIVE

METRIC

2021

2022

2023

2024

2025

NOTES

DC PRODUCTIVITY 1. RightChain™ Slotting 2. RightChain™ Picking 3. Small Parts Automation 4. Large Load Automation DC STORAGE DENSITY 1. RightChain™ Slotting 2. Small Parts Automation 3. Large Load Automation LOST SALES RECOVERY 1. AI-Based Forecasting 2. AI-Based Lot Sizing 3. Turn/Fill Optimization 4. Deployment Optimization INVENTORY CARRYING 1. AI-Based Forecasting 2. AI-Based Lot Sizing 3. Turn/Fill Optimization 4. Deployment Optimization

Annual Lines Shipped Productivity (lpmh) Annual Man Hours Hourly Wage ($/hr)

3,000,000

3,150,000

3,307,500

3,472,875

3,646,519

4

8

12

24

48

750,000

393,750

275,625

144,703

75,969 25.00

$ $

25.00

$ $ $

25.00

$ $ $

25.00

$ $ $

25.00

$ $ $

Assumes no wage inflaction

Annual Wages Annual Savings

18,750,000

9,843,750 8,906,250

6,890,625 2,953,125

3,617,578 3,273,047

1,899,229 1,718,350

$

16,850,771

Average $s On Hand Storage Density

$ $ $ $

1,500,000,000

1,500,000,000 $

1,500,000,000 $

1,500,000,000 $

1,500,000,000 $

1,500.00 1,000,000

2,000.00 750,000

2,500.00 600,000

3,000.00 500,000

3,500.00 428,571

Footprint (sf)

Unit Occupancy Cost ($/sf) Annual Occupancy Cost

15.00

$ $ $

15.00

$ $ $

15.00

$ $ $

15.00

$ $ $

15.00

Assumes no facility cost inflation

RightChain™ Warehousing RightChain™ Inventory RightChain™ Transporttaion RightChain™ Effect

15,000,000

11,250,000 3,750,000

9,000,000 2,250,000

7,500,000 1,500,000

6,428,571 1,071,429

Annual Savings

$

8,571,429

Annual Revenue

$9,000,000,000 $9,270,000,000 $9,548,100,000 $9,834,543,000 $10,129,579,290

Fill Rate Lost Sales

95.0%

95.5%

96.0%

96.5%

97.0% Typical RightChain™ results

$450,000,000 $417,150,000 $381,924,000 $344,209,005 $303,887,379

Lost Sales Recovery Gross Margin Recovery

$32,850,000 $14,782,500

$37,714,995 $40,321,626 $16,971,748 $18,144,732

$35,226,000 $15,851,700

$

65,750,680

Cost of Goods Turns at Cost

$1,500,000,000 $1,575,000,000 $1,653,750,000 $1,736,437,500 $1,823,259,375

3.00

3.90

3.30

3.60

4.20

Typical RightChain™ Results

On Hand Inventory Inventory Carrying Rate Inventory Carrying Cost

$500,000,000 $477,272,727 $459,375,000 $445,240,385 $434,109,375

0.35

0.26

0.32

0.29

0.23 Decreases with improved DC performance

$175,000,000 $152,727,273 $133,218,750 $115,762,500 $99,845,156

Annual Savings

$22,272,727

$19,508,523

$17,456,250 $15,917,344

$

75,154,844

DELIVERY PRODUCTIVITY 1. AI-based bay optimization

Annual Lines Shipped Productivity (lpmh) Annual Man Hours Hourly Wage ($/hr)

3,000,000

3,150,000

3,307,500

3,472,875

3,646,519

Assumes 5% volume growth

10

15

20

25

30

300,000

210,000

165,375

138,915

121,551

25.00

25.00

$ $ $

$ $

25.00

$ $ $

$ $ $

25.00

$ $ $

25.00

Assumes no wage inflation

Annual Wages Annual Savings

7,500,000

5,250,000 2,250,000

4,134,375 1,115,625

3,472,875 661,500

3,038,766 434,109

$

4,461,234

ROUTING EFFICIENCY 1. AI-based routing 2. Network optimization 3. Flow optimization

Pound Miles

5,000,000,000

4,500,000,000

3,500,000,000

3,000,000,000

3,000,000,000

Cost per Pound Mile Transportation Cost

$0.0100

$0.0090

$0.0080

$0.0070

$0.0060 Currently at unknown truck utilization

$

50,000,000

$ $

40,500,000 9,500,000

$ $

28,000,000 12,500,000

$ $

21,000,000 7,000,000

$ $

18,000,000 3,000,000

Annual Savings

$

32,000,000

RightChain™ Value Proposition

Warehouse Labor Savings Warehouse Occupancy Savings

$ $ $ $ $ $

8,906,250 3,750,000 14,782,500 22,272,727 2,250,000 9,500,000 61,461,477

$ $ $ $ $ $

2,953,125 2,250,000 15,851,700 19,508,523 1,115,625 12,500,000 54,178,973

$ $ $ $ $ $

3,273,047 1,500,000 16,971,748 17,456,250 661,500 7,000,000 46,862,545

$ $ $ $ $ $

1,718,350 1,071,429 18,144,732 15,917,344 434,109 3,000,000 40,285,963

$ $ $ $ $ $

16,850,771 8,571,429 65,750,680 75,154,844 4,461,234 32,000,000 202,788,958

RightChain™ Warehousing

Gross Margin Recovery

RightChain™ Inventory

Inventory Carrying Cost Savings

Delivery Productivity Routing Efficiency

RightChain™ Transportation

Supply Chain Savings Potential

$

$

$

$

$

The RightChain™ Effect

RightChain™ Incorporated

Page 11

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Cumulative Savings

115,640,450 $

162,502,995 $

202,788,958 $