Accurate Global Data Synchronization Improves Supply Chain Efficiencies; New Study Also Reveals Revenue Increase

The report is based on a study of Wegmans Food Markets and sevenmajor suppliers - The Coca-Cola Company, General Mills, The HersheyCompany, The J.M. Smucker Company, Nestle, PepsiCo, Inc., and TheProcter & Gamble Company. The study confirms the power of GDS, theharmonization of manufacturers' and retailers' product information, byquantifying the actual benefits gained by companies - up to 64 percentimprovements in supply chain and operational areas and 67 percent incustomer relationship and growth areas.

"The main messages from this study are compelling," said MarianneTimmons, vice president of supply chain and global business tobusiness, Wegmans Food Markets. "We have realized many quantifiablebenefits from accurate data synchronization. Further, it isfoundational to next generation business processes for Wegmans and ourtrading partners."

Concurring, GMA's vice president of supply chain and technologyPamela Stegeman said, "GDS affects all parts of the supply chain. Ourstudy shows that benefits are available to everyone from the salesaccount manager to the backroom receiving clerk. When accurate data issynchronized between trading partners and used by all parts of bothorganizations, we can better meet consumers' needs."

The study found trading partners can benefit from GDS byminimizing disruptions across the supply chain, with:

-- Improved accuracy of product weights and measures, as one manufacturer found when it corrected a weight error on a single item and saved $2.2 million in annual transportation costs;

-- Improved logistics and distribution efficiencies, which Wegmans enjoyed after eliminating $1 million of labor and inventory carrying costs from its distribution network;

-- Expediting direct store delivery (DSD) check-ins at the store level: Wegmans estimated a 7 percent increase in productivity by reducing DSD check-in time

-- Synchronizing data with trading partners
-- Sharing accurate item data improves order and invoice
administration: A manufacturer improved productivity by an
estimated 59,000 hours annually by reducing inspection
time five minutes per order

-- Improving flow of new product information between
manufacturers and retailers means faster speed-to-market:
A manufacturer reduced its speed-to-shelf for new items
from up to eight weeks to two weeks

-- Using GDS to improve customer service: Using GDS to
synchronize coupon family codes helped Wegmans reduce
customer coupon scanning rejections by 40 percent

"This study makes a persuasive case for the many benefits of GDSby describing the actual ways it can transform a business. The firststep that is required is that manufacturers and retailers need toaccelerate their implementation efforts by executing the industryaction plan as outlined in this study," FMI senior director ofindustry relations, Pat Walsh commented.

While the number of consumer goods and retail companies using GDShas increased in the last three years from 100 to nearly 10,000, thereis potential for more growth in the industry. As current GDSinitiatives gain more traction and additional companies enlist theappropriate technology, the benefits associated with GDS are expectedto increase.

"Among the important findings of this research is thathigh-performing companies need to make accurate data synchronization abusiness priority, not just an IT priority," said Marco Ziegler,senior executive, Accenture's Consumer Goods & Services practice."Global data synchronization can be an effective catalyst fortransforming business processes and delivering significantly improvedresults throughout the supply chain."

The study was sponsored by FMI, GMA, Wegmans Food Markets and1SYNC and conducted by Accenture. Copies of the report are availableon the GMA Web site athttp://www.gmabrands.com/publications/index.cfm.

"We are confident that the competitive advantage achieved byleading companies through synchronizing accurate data will encourageand inspire other companies that have been waiting for the right timeto get started. As companies expand item data synchronization to allproduct lines and geographies, the pace of change in the industry willaccelerate and enable widespread synchronizing of accurate price datato achieve even greater returns," said Steve Vazzano, senior director,market development, 1SYNC.

Methodology

In March and April of 2006, researchers interviewed more than 120personnel in departments such as sales, customer service, logisticsand accounting at Wegmans Food Markets and seven suppliers.

About Accenture

Accenture is a global management consulting, technology servicesand outsourcing company. Committed to delivering innovation, Accenturecollaborates with its clients to help them become high-performancebusinesses and governments. With deep industry and business processexpertise, broad global resources and a proven track record, Accenturecan mobilize the right people, skills and technologies to help clientsimprove their performance. With more than 133,000 people in 48countries, the company generated net revenues of US$15.55 billion forthe fiscal year ended Aug. 31, 2005. Its home page iswww.accenture.com.

About FMI

Food Marketing Institute (FMI) conducts programs in research,education, industry relations and public affairs on behalf of its1,500 member companies -- food retailers and wholesalers -- in theUnited States and around the world. FMI's U.S. members operateapproximately 26,000 retail food stores with a combined annual salesvolume of $340 billion -- three-quarters of all retail food storesales in the United States. FMI's retail membership is composed oflarge multi-store chains, regional firms and independent supermarkets.Its international membership includes 200 companies from 50 countries.www.fmi.org

About GMA

The Grocery Manufacturers Association (GMA) represents the world'sleading branded food, beverage and consumer products companies. Since1908, GMA has been an advocate for its members on public policy issuesand has championed initiatives to increase industrywide productivityand growth. GMA member companies employ more than 2.5 million workersin all 50 states and account for more than $680 billion in globalannual sales. The association is led by a board of member companychief executives. For more information, visit the GMA Web site atwww.gmabrands.com.

About 1SYNC

1SYNC(TM) is a newly-formed subsidiary of GS1 US(TM). The companyis the combination of Transora and UCCnet, two Global DataSynchronization Network (GDSN)-certified Data Pools. 1SYNC offers arange of data synchronization services that eliminate costly dataerrors, increase supply chain efficiencies, and promote theadvancement of next-generation technologies, such as the ElectronicProduct Code(TM) (EPC). GS1 US is a not-for-profit member organizationof GS1 and is dedicated to the development and implementation ofstandards-based, global supply chain solutions. 1SYNC is headquarteredin Lawrenceville, New Jersey with offices in the U.S., Brazil, France,Mexico, and UK. Visit www.1SYNC.org for more information.

About Wegmans

Wegmans Food Markets, Inc. is a 71-store supermarket chain withstores in New York, Pennsylvania, New Jersey, Virginia, and Maryland.The family-owned company, founded in 1916, is recognized as anindustry leader and innovator. Wegmans has been named one of the '100Best Companies to Work For' by FORTUNE magazine for the nineconsecutive years. In 2006, Wegmans ranked #2 on the list.www.wegmans.com