Aptos®

Merchandising
2 ▸▸ Aptos Merchandising
Aptos: Engaging Customers Differently
To succeed in today’s
demanding retail
environments you must be
able to fully understand your
customers; to profitably
align your offerings with
their traits and preferences
in every channel and
touchpoint; and to support
rich, effortless, customer-
centric shopping journeys.
Aptos delivers that
advantage to apparel,
footwear, specialty and
general merchandise
retailers. Our singular
commerce platform
and innovative Cloud
solutions unify complex
omni-channel environments
with the power of one
interaction, one order,
one customer, one inventory,
one truth and one view, to
enable seamless customer
experiences and optimized
management of your
entire enterprise.
The Aptos retail Yet the Aptos advantage
suite includes: is about far more than just
our solutions. We leverage
▸▸ Store / Mobile Store more than 40 years of
▸▸ Enterprise Order best practices; utilize the
Management Cloud to drive efficiency,
productivity and growth;
▸▸ Digital Commerce
support our clients through
▸▸ Customer Relationship collaborative, long-term
Management / Clienteling partnerships; and link our
▸▸ Merchandising compensation directly to
your satisfaction. In all these
▸▸ Planning and ways and more, we engage
Assortment Planning customers differently for
▸▸ Audit and Operations superior results.
Management
▸▸ Analytics
▸▸ Payment and Secure
Data Management
▸▸ Professional Services
#1 Market Share *
1000 Employees
130 Web Sites
130K Stores
$570B Annual Revenues
*Store and Mobile Store, per IHL and Boston Retail Partners

Aptos Merchandising
The Power of One Inventory
Extend your control over all inventory and related functions in all channels.
Underperforming inventory.
Out of Stocks. An inability to
respond quickly and flexibly
to shifting consumer trends.
These are just some of the
top merchandising challenges
faced by today’s leading
retailers. They are especially
significant in complex, omni-
channel environments, where
multiple points of sale must
align with diverse customer
preferences and expectations.
So while it’s always important
to know what you own and
where you own it, true value
comes from being able to
manage merchandise efficiently
and to optimize where inventory
should go to maximize sales,
minimize markdowns and avoid
out-of-stocks.
Aptos | Engaging Customers Differently
Aptos Merchandise delivers
in all ways. It gives you all the
tools you need to manage your
inventory across the enterprise
by helping you analyze, order,
price, distribute, and manage
merchandise for maximum
return on your investment.
By using consistent data
to guide all processes,
Merchandising automatically
synchronizes and integrates key
functions, including purchasing,
pricing, receiving, allocation
and replenishment, while
its centralized transactional
database and support tools
enable you to make better
decisions based on accurate,
current and shared information.
Aptos Merchandising
supports more than:
100
190
13,000
3
Aptos Merchandise improves
the performance and
coordination of every process
in your retail cycle, to make your
business more competitive and
better positioned for growth.
With Merchandising, you will:
▸▸ Tightly coordinate every key
merchandising process
▸▸ Send exactly the right
merchandise to exactly the
right stores
▸▸ Track the status of all
merchandise through
shipping, receiving, and
distribution
▸▸ Alert users to exceptions in
performance by location
▸▸ Analyze merchandising
activities and directly initiate
changes
▸▸ Achieve true flexibility,
scalability, and control
leading retailers
brands
stores
4 ▸▸ Aptos Merchandising
A Complete Merchandising Solution
▸▸ Enterprise Data and Together, these
Product Management powerful applications
equip you to:
▸▸ Purchase Order
Management
Run a more
efficient business:
▸▸ Warehouse Management
Merchandising allows you to run
your business efficiently with
▸▸ Allocation and
a broad range of functionality,
Replenishment including filters to isolate
under- and over-performing
▸▸ Inventory Management items. You can generate alerts
and Web IM to automatically notify you via
email of anomalies, create ad
▸▸ Price Management hoc analyses and reports, and
configure and filter worklists
▸▸ Invoice Matching to access data quickly in any
format you prefer.
▸▸ Stock Ledger
Respond to trends:
▸▸ Actionable Analytics
Merchandising also lets you
predict and respond proactively
to trends with powerful
functionality such as flexible
and interactive allocation and
replenishment with open-to-ship
by store. This reduces the need
for markdowns, end-of-season
consolidations and inter-store
merchandise transfers.
Tightly integrate merchan-
dising with planning and all
other retail functions:
Aptos Merchandising works
seamlessly with all your other
enterprise and customer-
facing applications to help
unify your solutions enterprise
wide. When paired with Aptos
Planning and Assortment
Planning, you benefit from the
tightest possible integration
with Product Management, PO
Management and Allocation.
Concept styles become actual
styles and purchase orders are
automatically created when
approved styles are released
from the Assortment Plan.
Support both retail and
wholesale operations:
For vertically integrated
retailers, Merchandising fully
supports the allocation and
replenishment of wholesale
inventory with the retail division.
Drive local and
international growth:
Aptos Merchandising serves
your retail operations at
home and overseas with
Unicode support for multiple
languages (including English,
French, Spanish and Simplified
Chinese), inventory valuations in
multiple currencies, as well as
global pricing, taxation
and localization of select
data fields.
 Aptos | Engaging Customers Differently 5

Enterprise Data and Purchase Order

Product Management Management

Eliminate costly inefficiencies.
Enterprise Data Management
enables you to leverage all the
core information that defines
your operation, including
locations, merchandise
structures, alternate
hierarchies, vendors, currency
codes, exchange rates, freight
methods and reason codes.
Similarly, Product
Management lets you easily
track and manage vendor
details, packaging, physical
characteristics, images,
and descriptions. Pictures
displaying merchandise
can be created as data
items, while attributes and
alternative hierarchies can
be changed at will. These
applications support direct-
to-consumer engagement
and advanced order
management functionality.
Manage your entire purchase
ordering process on your
terms, either from within
your enterprise or remotely.
Purchase Order Management
handles the detailed
process of placing purchase
commitments with vendors
and monitors the progress of
buys and their delivery dates,
while maintaining financial and
open-to-buy control.
The application equips you
to buy on your terms by
supporting a complete range of
PO options including PO type
(standalone, blanket/release),
distribution method (bulk, drop-
ship, cross-dock), shipment
configuration (multiple or
single), plus a variety of
vendor and delivery options.
It is also integrated with key
supply chain applications to
ensure your buying decisions
are sound, your vendor and
delivery instructions are clear,
and your stores get the right
products on time.

Warehouse Management
Aptos Warehouse Management
streamlines and accelerates
your warehouse operations and
optimizes your productivity
to reduce stock-outs.
This comprehensive WMS
dramatically increases your
visibility into the warehouse
and the speed and accuracy
with which merchandise
flows from receiving through
distribution to store shelves.
Warehouse Management is
highly scalable, flexible and
configurable. The application
uses wireless handheld RF
With Aptos Warehouse
Management You will:
▸▸ Accelerate warehouse operations and
devices to manage all aspects
of the retail warehouse in real flow-throughs to reduce stock-outs
time—from receiving, ticketing
and inventory management ▸▸ Boost the efficiency and productivity
to pick, pack and shipping of warehouse staff
for order fulfillment. It
incorporates online, detailed
▸▸ Increase chargeback visibility and
task tracking, system-directed
put away (with options of vendor compliance
vendor, class, style or SKU
storage groupings) and cross- ▸▸ Improve the accuracy of inventory,
dock options. Manual- or picking and order fulfillment
event-driven cycle counts and
continuous online item and
▸▸ Reduce inventory carrying costs
document validations ensure
inventory integrity and help
reduce shrink.
6 ▸▸ Aptos Merchandising

Allocation & Replenishment

Get the right merchandise in With Aptos A&R, you can

the right place at the right time.
Merchandising’s integrated
Allocation and Replenishment
(A&R) component lets you
balance the major drivers in
Auto-replenishment is fast, your business—merchandise
plans as well as sales activity
flexible and accurate, so in your individual stores—by

allocate any items directly
to your stores, leveraging
user-defined calculations
and accounting for all key
variables: styles, colors and
sizes in demand based on
sales histories, sell-through
and potential, group rankings,
location plans, attributes and
other metrics.
Equally important, Allocation
and Replenishment gives you
replenishment you can trust.
Configurable, automated
processes think like you
think to drive everything
from forecasts based on
past performance and ideal
algorithms to model stock
updates and the creation and
execution of POs.
you can:
▸▸ Replenish to forecasted needs
▸▸ Create rules for
insufficient inventory
▸▸ Incorporate similar store and imbalances and out-of-stock
location histories
▸▸ Replenish loose units, packs;
maintain order and
distribution multiples
responding to past activities,
current situations and
forecasted trends. You can
allocate to plan methodology,
open-to-ship methodology
and to re-forecasted,
in-season store plans, and use
intelligent forecasting to drive
replenishment. A&R ensures
your business avoids stock
conditions to increase your
sales with lower inventory
levels and fewer markdowns,
boost customer satisfaction
and increase gross margins.

”With auto-replenishment, we have reduced

out-of-stocks dramatically without pushing
more product to the stores than they have
room to accommodate.
 Aptos | Engaging Customers Differently 7

Inventory Management & WebIM

This core application

ensures the head office,
warehouse or stores get
direct access to current, real-
time inventory information
across the enterprise.
Inventory Management lets
you track inventory online
by SKU, location, quantity,
and value in any number of
user- and system-defined
status categories, to provide a
single source of reliable data
on inventory positions. This
WebIM: Mobile Inventory
empowers you to serve your
Management Saves Space and Sales
customers more effectively
while obtaining a true rate-of- Using Aptos Web IM on iPads, an
sale figure. And with WebIM,
persistently connected to your
international hardgoods retailer optimized
POS, your stores can perform small-footprint stores by keeping large
their inventory transactions products in nearby storage areas for
and validations in real time, to
get clear, reliable insight into faster replenishments and superior
merchandise in transit. customer service.

Price Management

Ensure the price is right!
Price Management lets you
change and test pricing
strategies and localize pricing
at different locations and
times to effectively market
your products. This application
protects margins by supporting
pricing down to the style, color,
size and store level. It equips
you to manage pricing with
complete flexibility—chain-
wide, or by country, zone or
location, and to incorporate
changes at the POS and in
ticketing, allocation, forecasting
and analytics.
With Price Management, you
can experiment with a wide
range of pricing schemes to
determine their impact on your
margins, shoppers and results,
and analyze sales and inventory
by price status. You can create
or simulate price changes for
styles in inventory or on order
and send this information to
your stores. All changes can
be permanent or temporarily
based on promotions and deals
such as BOGOs, stock up
sales, etc.
With Price Management
you can:
▸▸ Analyze sales and
inventory by price status
▸▸ Check price status by
SKU / location
▸▸ Price by chain, jurisdiction,
pricing group, location,
color, SKU
▸▸ Create price changes directly
from analytics

▸▸ Identify deal types that

truly drive sales
8 ▸▸ Aptos Merchandising
Invoice Matching
Invoice Matching allows you
to efficiently reconcile items
invoiced with those you actually
received. It ensures alignment
between the PO, receipt and
invoice to create a three-way
match to identify where receipt
quantities match invoice
quantities, PO costs match
invoice costs, and agreed upon
PO terms are respected on
the invoice.
If match is made, an accounts
payable voucher is created
and sent to the A/P system for
payment. Unmatched invoices
will be accessible on the Invoice
Worklist for review. By exposing
exceptions and enabling online
approvals of invoice payments,
Invoice Matching automates
reconciliations and improves
the efficiency of your
balancing process.
 Aptos | Engaging Customers Differently 9

The Paper Store Recovers Revenue with Invoice Matching

”
Aptos Invoice Matching, combined with Inventory
Management, enabled The Paper Store to save
substantially by identifying billing errors and
opportunities for invoice discounts—$275,000
in our first year on the system, and $100,000
each year thereafter.
- Tom Anderson, CEO, The Paper Store
10 ▸▸ Aptos Merchandising

Stock Ledger
Stock Ledger drives
performance throughout your
merchandising processes by
enabling you to clearly see your
inventory position and margins
by category at any given point
in time, from your start-of-
month inventory through all
subsequent transactions to
the end of the month, to
support accurate accounting
and cost calculations.
Stock Ledger can be
maintained based on cost
method (weighted average,
by chain, country or location)
or retail valuation methods
with user-defined price and
inventory statuses. The
module’s highly configurable
components are mapped
from transactions based on
transaction type, price status,
inventory status and reason
code to allow very granular
transaction combinations that
can be summarized in general
ledger. A separate G/L calendar
is maintained for instances
where that is different from
your merchandising calendar.
Aptos | Engaging Customers Differently
Actionable Analytics
Merchandising’s actionable
and customizable decision
support tools let you analyze
all merchandising activities,
including sales, orders,
receipts, distributions,
price changes, inventory
adjustments, transfers and
returns to vendors, then directly
initiate changes and inventory
transactions. The module
provides fast access to data at
any level of the location and/or
merchandise hierarchies and
lets you send scheduled email
11
exceptions automatically. This
allows you to determine and
capture opportunities for faster
turns, improved margins, better
markdown execution and more
precise forecasting.
Integration with Aptos Analytics
and Retail Business Intelligence
will further extend the analytics
and actionable insights of
Aptos Merchandising to
strengthen your management
capabilities across a wide range
of modules and functions.
About Offices
Aptos: Engaging Customers Differently United States
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The contents of this document are for informational purposes only and are subject to change without notice. Aptos, Inc. makes no guarantee, representations or warranties
with regard to the enclosed information and specifically disclaims, to the full extent of the law, any applicable implied warranties, such as fitness for a particular purpose,
merchantability, satisfactory quality or reasonable skill and care. This document and its contents, including the viewpoints, dates and functional content expressed herein
are believed to be accurate as of its date of publication, March 2017. The usage of any Aptos software shall be pursuant to the applicable end user license agreement and the
performance of any consulting services by Aptos personnel shall be pursuant to applicable standard services terms and conditions. Usage of the solution(s) described in this
document with other Aptos software or third party products may require the purchase of licenses for such other products. Aptos, Engaging Customers Differently, and the
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