Mercari Technologies, Inc

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Mercari Technologies is a merchandise application technology provider,delivering innovative and easy-to-use solutions over the Internet that, for the first time, link supply chain, merchandise and category planning.We provide solutions for consumer product manufacturers, retailers and e-tailers seeking to compress time-to-value, leverage current investmentsand capitalize on e-commerce opportunities.

Mercari Technologies was formed to help companies make intelligentbusiness decisions by letting trading partners see the point of purchasethrough the eyes of their consumers. We pioneered a business framework,Collaborative Merchandise Optimization™ (CMO), to help organizations betterintegrate their target markets into merchandising and category planningprocesses. In enabling companies to realize the potential of CMO, MercariTechnologies is dedicated to continuous innovation to benefit companies of all sizes.

Let Mercari Technologies show you new opportunities available only fromthe place where companies and consumers converge.™

Mercari Technologies provides

solutions that bring together the

“show and flow” of the

consumer products value

chain—linking what

happens at the shelf to every

aspect of merchandising and the

supply chain.

Mercari (mer CAR e): Latin; ‘mêrcari,’verb meaning ‘to trade.’ Commonly

used in reference to commerce: English—merchandise, merchant,

mercantile; French—marché; Spanish—mercado; Italian—mercato.

Mercari Technologies is a merchandise application technology provider,delivering innovative and easy-to-use solutions over the Internet that, for the first time, link supply chain, merchandise and category planning.We provide solutions for consumer product manufacturers, retailers and e-tailers seeking to compress time-to-value, leverage current investmentsand capitalize on e-commerce opportunities.

Mercari Technologies was formed to help companies make intelligentbusiness decisions by letting trading partners see the point of purchasethrough the eyes of their consumers. We pioneered a business framework,Collaborative Merchandise Optimization™ (CMO), to help organizations betterintegrate their target markets into merchandising and category planningprocesses. In enabling companies to realize the potential of CMO, MercariTechnologies is dedicated to continuous innovation to benefit companies of all sizes.

Let Mercari Technologies show you new opportunities available only fromthe place where companies and consumers converge.™

Mercari Technologies provides

solutions that bring together the

“show and flow” of the

consumer products value

chain—linking what

happens at the shelf to every

aspect of merchandising and the

supply chain.

Mercari (mer CAR e): Latin; ‘mêrcari,’verb meaning ‘to trade.’ Commonly

used in reference to commerce: English—merchandise, merchant,

mercantile; French—marché; Spanish—mercado; Italian—mercato.

mercari technologies

manufacturers access our innovative applications via

the Internet, exchanging, developing and testing

scenarios that model not just past shopping behavior,

but actual demand. Using patent-pending techniques,

trading partners can make consumer behavior an

integral part of their plan—anticipating shoppers’

actions in order to increase revenues, profits and

traffic; minimize lost sales due to stockouts; and

enhance brand equity.

The definition of trading has not changed for

centuries, but how it occurs changes every day. The

role of manufacturers, brokers, distributors and

retailers of all types has grown from a simple

supplier-seller arrangement to a complex network,

dependent on supply chain, merchandise, category

and financial planning. Adding to this complexity is a

reliance on disparate decision-making technology and

systems that can cloud visibility.

Instead of steering around these obstacles, face

them head-on. Mercari Technologies connects trading

partners through innovative solutions. Our business

model, Collaborative Merchandise Optimization™ (CMO),

redefines the planning process by letting trading partners

share a common view of the shelf and the consumer.

CMO, reflecting the ever-changing tide of consumer

dynamics, allows companies to develop and maintain

an intelligent shelf. Plans reflect both merchandising

“show” factors and supply chain “flow” factors,

combined with consumer behavior data. Retailers and

Collaborative Environment

During the last ten tofifteen years retailorganizations have workedto improve on the shelfavailability while at thesame time reducing totallogistics costs andinventory levels. In fact,organizations increasinglysee on the shelfavailability as a criticalmeasure of bottom linecustomer serviceperformance that can makeor break them in the eyesof customers.

—Industrial Marketing Management, July 1998

Seeing Through the Eyes of the Consumer

manufacturers access our innovative applications via

the Internet, exchanging, developing and testing

scenarios that model not just past shopping behavior,

but actual demand. Using patent-pending techniques,

trading partners can make consumer behavior an

integral part of their plan—anticipating shoppers’

actions in order to increase revenues, profits and

traffic; minimize lost sales due to stockouts; and

enhance brand equity.

The definition of trading has not changed for

centuries, but how it occurs changes every day. The

role of manufacturers, brokers, distributors and

retailers of all types has grown from a simple

supplier-seller arrangement to a complex network,

dependent on supply chain, merchandise, category

and financial planning. Adding to this complexity is a

reliance on disparate decision-making technology and

systems that can cloud visibility.

Instead of steering around these obstacles, face

them head-on. Mercari Technologies connects trading

partners through innovative solutions. Our business

model, Collaborative Merchandise Optimization™ (CMO),

redefines the planning process by letting trading partners

share a common view of the shelf and the consumer.

CMO, reflecting the ever-changing tide of consumer

dynamics, allows companies to develop and maintain

an intelligent shelf. Plans reflect both merchandising

“show” factors and supply chain “flow” factors,

combined with consumer behavior data. Retailers and

Collaborative Environment

During the last ten tofifteen years retailorganizations have workedto improve on the shelfavailability while at thesame time reducing totallogistics costs andinventory levels. In fact,organizations increasinglysee on the shelfavailability as a criticalmeasure of bottom linecustomer serviceperformance that can makeor break them in the eyesof customers.

—Industrial Marketing Management, July 1998

Seeing Through the Eyes of the Consumer

tastes of different regions or

demographics. Needed space

can quickly be located

to introduce creative new

merchandising. Manufacturers

can determine the best use

of constrained space given

consumer profiles for different

markets, channels and key accounts.

New product introductions can be evaluated for

their impact on the category’s overall performance,

significantly attacking success rates. SKU rationalization

programs can blend the impact of consumer switching

behavior on financial performance.

Whatever your objective, Mercari’s solutions can help

you create the best plan.

Our in-depth view of consumer behavior is only the

beginning of what makes Mercari’s applications unique

and our customers more successful. To gain an edge,

companies also need to respond to change and agilely

create opportunity. Understanding that no consumer is

average, our solutions ensure that plans are customized

for particular markets and refined to target customers.

By tailoring offerings, manufacturers and retailers are

able to leverage critical constrained resources to better

meet the needs of their key consumers.

Using real-time, constraint-based optimization

techniques, our customers can rapidly identify the

optimal plan to meet specific category objectives, and

realize bottom-line benefits. In addition, the product

suite scales to the needs of micro-markets and even

single sites.

Such tailored plans are helping retailers and manufac-

turers create opportunities and gain competitive

differentiation. This means as retailers expand into new

markets, they can modify store layouts to reflect the

Enabling the Intelligent Shelf

www.mercaritech.com

Tailored Solutions

Retailers spend anaverage of $270 per newproduct introduction perstore each year. Over 94%of these items are notmeaningfully different tothe consumer. Nearly 70%fail within three years. The result: $950,000 perstore each year is spenton items that will fail.

—The Partnering Group

tastes of different regions or

demographics. Needed space

can quickly be located

to introduce creative new

merchandising. Manufacturers

can determine the best use

of constrained space given

consumer profiles for different

markets, channels and key accounts.

New product introductions can be evaluated for

their impact on the category’s overall performance,

significantly attacking success rates. SKU rationalization

programs can blend the impact of consumer switching

behavior on financial performance.

Whatever your objective, Mercari’s solutions can help

you create the best plan.

Our in-depth view of consumer behavior is only the

beginning of what makes Mercari’s applications unique

and our customers more successful. To gain an edge,

companies also need to respond to change and agilely

create opportunity. Understanding that no consumer is

average, our solutions ensure that plans are customized

for particular markets and refined to target customers.

By tailoring offerings, manufacturers and retailers are

able to leverage critical constrained resources to better

meet the needs of their key consumers.

Using real-time, constraint-based optimization

techniques, our customers can rapidly identify the

optimal plan to meet specific category objectives, and

realize bottom-line benefits. In addition, the product

suite scales to the needs of micro-markets and even

single sites.

Such tailored plans are helping retailers and manufac-

turers create opportunities and gain competitive

differentiation. This means as retailers expand into new

markets, they can modify store layouts to reflect the

Enabling the Intelligent Shelf

www.mercaritech.com

Tailored Solutions

Retailers spend anaverage of $270 per newproduct introduction perstore each year. Over 94%of these items are notmeaningfully different tothe consumer. Nearly 70%fail within three years. The result: $950,000 perstore each year is spenton items that will fail.

—The Partnering Group

potential scenarios in real time with trading partners

around the world—or down the block.

Mercari’s constraint-based techniques pinpoint the solution

that best meets user-defined objectives. The abundance

of choice is now on your side, helping you target space,

assortment and replenishment plans for more effective

results. Merchandising decisions can be developed and

tested every day, allowing disparate departments and

trading partners to modify plans as needed.

Mercari lets you integrate the true cost of an out-of-

stock with shelf planning strategies to address today’s

complex market.

Increased product alternatives and channel options,

greater access to information and ever-increasing time

sensitivity all contribute to a more sophisticated and

demanding consumer base. Leveraging their wealth

of information and experience, companies need

decision support applications that extend beyond

data-mining functionality to rapidly identify the

best course of action.

Mercari Technologies is committed to providing a new

outlook. Our NeoCtex™ Optimization Engine incorpo-

rates patent-pending linear programming techniques

and mathematical models to capture the real world of

consumer dynamics, supply chain events and

merchandising practices.

Named for the part of the brain that supports higher

learning, the NeoCtex Engine brings order to complex

show and flow decision-making. Our solutions let

companies simultaneously examine options, evaluate

business policies and strategic initiatives, and compare

The Know Behind “Show and Flow”

Optimization Engine

If your supply chain,category, and spacemanagement programs areadvanced, you’re lookingfor the next big incrementof improvement, and yoursystems can feed InitiaLinkthe data it needs, youought to consider CMO. If not, and your competitorsstart powering their“show” and “flow” usingInitiaLink, you’ve got onemore reason to worry.

—AMR Research Alert on Retail Applications for March 2, 2000

potential scenarios in real time with trading partners

around the world—or down the block.

Mercari’s constraint-based techniques pinpoint the solution

that best meets user-defined objectives. The abundance

of choice is now on your side, helping you target space,

assortment and replenishment plans for more effective

results. Merchandising decisions can be developed and

tested every day, allowing disparate departments and

trading partners to modify plans as needed.

Mercari lets you integrate the true cost of an out-of-

stock with shelf planning strategies to address today’s

complex market.

Increased product alternatives and channel options,

greater access to information and ever-increasing time

sensitivity all contribute to a more sophisticated and

demanding consumer base. Leveraging their wealth

of information and experience, companies need

decision support applications that extend beyond

data-mining functionality to rapidly identify the

best course of action.

Mercari Technologies is committed to providing a new

outlook. Our NeoCtex™ Optimization Engine incorpo-

rates patent-pending linear programming techniques

and mathematical models to capture the real world of

consumer dynamics, supply chain events and

merchandising practices.

Named for the part of the brain that supports higher

learning, the NeoCtex Engine brings order to complex

show and flow decision-making. Our solutions let

companies simultaneously examine options, evaluate

business policies and strategic initiatives, and compare

The Know Behind “Show and Flow”

Optimization Engine

If your supply chain,category, and spacemanagement programs areadvanced, you’re lookingfor the next big incrementof improvement, and yoursystems can feed InitiaLinkthe data it needs, youought to consider CMO. If not, and your competitorsstart powering their“show” and “flow” usingInitiaLink, you’ve got onemore reason to worry.

—AMR Research Alert on Retail Applications for March 2, 2000

Fundamental to our approach is an intrinsic e-commerce

architecture, providing the highest degree of privacy

and data integrity. Through a partnership with Exodus

Communications, Mercari ensures access to the latest in

both physical and Internet security. This includes such

technologies as advanced firewalls, intrusion detection,

virus scanning and user authentication. This partnership

also means our collaborative e-commerce platform is

maintained in a scalable environment, with 24-hour,

7-day-a-week access and data security.

Mercari Technologies empowers companies to set

ambitious and actionable goals while our innovative

delivery models help companies reach them. We

provide solutions with proven Internet-based

collaborative workflow and architecture, each created

from the ground up to meet the scale, security and

speed requirements our clients demand.

Our Internet Delivery Model, available in a range of

hosting options from outsourced Application Service

Provider (ASP) models to Internet-aware enterprise

installations, provides an e-commerce platform in an

efficient environment. Trading partners develop, exchange

and test new ideas in real time. Unlike traditional web

applications, not only are the results, but also the

application controls are shared in a user-permissioned

manner. Working together, our technological philosophy,

business model and subscription access dramatically

reduce implementation and maintenance requirements,

and therefore, time-to-value.

Where Companies and Consumers Converge

www.mercaritech.com

Internet Delivery Model

Stockouts occur 8.2% of the time, representing6.5% of all retail sales.34% of consumerspurchase no alternative.Others trade down,reducing spending by 46%. Net result: 3.1% decline inspending per trip.

—Andersen Consulting Study

Fundamental to our approach is an intrinsic e-commerce

architecture, providing the highest degree of privacy

and data integrity. Through a partnership with Exodus

Communications, Mercari ensures access to the latest in

both physical and Internet security. This includes such

technologies as advanced firewalls, intrusion detection,

virus scanning and user authentication. This partnership

also means our collaborative e-commerce platform is

maintained in a scalable environment, with 24-hour,

7-day-a-week access and data security.

Mercari Technologies empowers companies to set

ambitious and actionable goals while our innovative

delivery models help companies reach them. We

provide solutions with proven Internet-based

collaborative workflow and architecture, each created

from the ground up to meet the scale, security and

speed requirements our clients demand.

Our Internet Delivery Model, available in a range of

hosting options from outsourced Application Service

Provider (ASP) models to Internet-aware enterprise

installations, provides an e-commerce platform in an

efficient environment. Trading partners develop, exchange

and test new ideas in real time. Unlike traditional web

applications, not only are the results, but also the

application controls are shared in a user-permissioned

manner. Working together, our technological philosophy,

business model and subscription access dramatically

reduce implementation and maintenance requirements,

and therefore, time-to-value.

Where Companies and Consumers Converge

www.mercaritech.com

Internet Delivery Model

Stockouts occur 8.2% of the time, representing6.5% of all retail sales.34% of consumerspurchase no alternative.Others trade down,reducing spending by 46%. Net result: 3.1% decline inspending per trip.

—Andersen Consulting Study

Collaborative merchandiseoptimization provides theopportunity to refine our planning process forthe use of store space. Byincorporating the dynamicsof our consumers’ behavior,Mercari’s InitiaLink appli-cation helps us effectivelytarget new stores andidentify merchandisingopportunities within ourexisting locations. We see the process as thebeginning of an excitingfuture for Wegmans andits consumers.

—Dave D’ArezzoWegmans Food Markets

Collaborative Merchandise Optimization brings together trading partners’ four worlds.

Everyday Economics

Consumers

Supply Chain

Merchandising

For more information on how Collaborative Merchandise Optimization can benefit your organization, please contact us at:

[email protected] x405

or visit us at www.mercaritech.com

Collaborative merchandiseoptimization provides theopportunity to refine our planning process forthe use of store space. Byincorporating the dynamicsof our consumers’ behavior,Mercari’s InitiaLink appli-cation helps us effectivelytarget new stores andidentify merchandisingopportunities within ourexisting locations. We see the process as thebeginning of an excitingfuture for Wegmans andits consumers.

—Dave D’ArezzoWegmans Food Markets

Collaborative Merchandise Optimization brings together trading partners’ four worlds.

Everyday Economics

Consumers

Supply Chain

Merchandising

For more information on how Collaborative Merchandise Optimization can benefit your organization, please contact us at:

[email protected] x405

or visit us at www.mercaritech.com

HeadquartersMercari Technologies, Inc.1100 New York Avenue, NWSuite 750 WestWashington, DC 20005-6126

tel 202.244.0900 x405fax 202.244.1951

Retail Center of ExcellenceMercari Technologies, Inc.226 W. DicksonPO Box 1684Fayetteville, AR 72702-1684

tel 501.442.2747fax 501.442.2769

All trademarks are the property of Mercari Technologies, Inc.

204.0700

www.mercaritech.com

Mercari Technologies, Inc

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