Kroger Program Mercury Supplier Frequently Asked Questions May, 2013

Kroger Program Mercury Supplier Frequently Asked Questions May, 2013 PROGRAM OVERVIEW / BACKGROUND QUESTIONS ............................................................. 5 What is Program Mercury? ......................................................................................................... 5 What are the objectives of Mercury? ...................................................................................... 6 Why is Kroger doing this? .......................................................................................................... 6 How will this benefit the customers? ...................................................................................... 6 How will this benefit suppliers? ................................................................................................ 7 What, specifically, is changing because of Mercury in 2013 and 2014?...................... 7 Does Mercury apply to all divisions within Kroger? ............................................................ 7 TECHINCAL / SPECIFIC QUESTIONS ABOUT ELEMENTS OF THE CHANGES .................. 7 What is a GTIN? ............................................................................................................................ 7 What is the GDSN? ....................................................................................................................... 7 What is a GLN? .............................................................................................................................. 8 Are the GTIN Conversion Project and the GDSN initiative linked? ................................ 8 What is 1WorldSync? ................................................................................................................... 8 Have other companies done things like this?....................................................................... 8 What is the VIP? (Vendor Item Portal) ................................................................................. 8 Will the Vendor Item Portal have import capability? ......................................................... 8 Is GTIN 12 compatible with Kroger’s Mercury initiative? ................................................. 9 QUESTIONS ABOUT DATA SYNCHRONIZATION...................................................................... 9 What is Data Synchronization? ................................................................................................. 9 What are the benefits of synchronizing data through the GDSN? ................................. 9 Why is Kroger implementing data synchronization? .......................................................... 9 What is a data pool? What is a GDSN-certified data pool? ............................................ 9 What is a company prefix?....................................................................................................... 10 1|Page

Is data synchronization an Information Technology (IT) function? Does it require IT resources? ................................................................................................................................ 10 Is data synchronization just another term for EDI?......................................................... 10 Does my sales team need to be involved with data synchronization? ....................... 10 What is the Global Product Classification (GPC) code? ................................................... 10 Will Kroger have a different GLN? ......................................................................................... 10 Do Private Label suppliers need to engage in data synchronization? ........................ 10 Do third party suppliers need to engage in data synchronization? ............................. 10 Does Kroger want my New Item publications before the Sales Call or after the Kroger merchant has agreed to carry my product? ......................................................... 11 I am a Manufacturer/Vendor Representative. How do I get involved in this process? ......................................................................................................................................... 11 Where do I find Kroger Attributes? ....................................................................................... 11 My Kroger Vendor Number is required but I don’t know it? .......................................... 11 I am not a member of GDSN or a data pool can I submit items to Kroger?............ 11 Is training specific to the VIP available?.............................................................................. 11 I don’t understand a requirement or how to answer an attribute what should I do? .......................................................................................................................................................... 11 Can I just use GDSN to do data synchronization?............................................................ 11 The data I sent through data synchronization doesn’t match what is seen in VIP. What should I do?....................................................................................................................... 12 How do I know if I need to assign a new Universal Product Code (UPC) when I make changes to an existing product?................................................................................. 12 Is data synchronization only for New Items, or should I publish existing items that Kroger carries?............................................................................................................................. 12 Should I publish my complex hierarchies? ......................................................................... 12 Do my Exploding/Dynamic Assortments for need to be synchronized through the GDSN? ............................................................................................................................................ 12 Will be able to handle multiple packaging configurations for an item? ..................... 12 What should I do if I have published my items but I do not see them in VIP?....... 12 How long does it take for the data to show up in VIP after I have published? ....... 12

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I have successfully submitted my items to Kroger in VIP and have not received a SYNCHRONIZED status from Kroger. What are my next steps? ................................ 13 Is checking the correct “Initial Load” or “New” Publication Types for incoming Catalogue Item Notification (CIN) publications important? ........................................... 13 When can I expect to see a Catalogue Item Confirmation (CIC), and what are the possible responses of a CIC (Authorization) that I can expect to see? ..................... 13 When will the category manager see my Item publications? ....................................... 13 How long will I have to submit my items to the Kroger category manager?........... 13 How will Kroger handle ongoing Data Synchronization? ................................................ 13 QUESTIONS ABOUT HOW THIS IMPACTS SUPPLIERS ........................................................ 14 What do suppliers need to do differently? .......................................................................... 14 Do all of Kroger’s suppliers need to implement data synchronization using GDSN? .......................................................................................................................................................... 14 How is Kroger selecting the vendors that will convert to the new Master Data Management system?................................................................................................................ 14 What type of data attributes is Kroger interested in receiving via the Global Data Synchronization Network (GDSN)? (See “What is GDSN” also) ................................. 15 What will be the new process for introducing an item to Kroger?............................... 15 What will be the new process for modifying an item with Kroger? ............................. 15 What will be the new process for discontinuing items with Kroger stores?.............. 15 What do I do if I sell to Kroger through a broker or distributor? ................................ 15 Does GDSN cost suppliers anything?.................................................................................... 15 What do we do if we don’t have all of the information about our products that Kroger wants in this new process and system? ................................................................ 16 How long will it take for my company to get up and running on the new process? .......................................................................................................................................................... 16 Will we still fill out paper forms to set up, modify or discontinue items to Kroger? .......................................................................................................................................................... 16 Will I still use the Venus system (if I am using it now)? ................................................ 16 We do DSD (Direct Store Delivery) for Kroger. Does this change how that process works? ............................................................................................................................ 16 We allocate product to Kroger stores right now. Will this change my allocation process? ......................................................................................................................................... 16 3|Page

What role will suppliers have ongoing?................................................................................ 16 Will my relationship with my category manager change? ............................................. 16 Will we get training on the new process and tools?......................................................... 16 How will Kroger communicate with me before, during, and after this change?...... 17 If a supplier already sent information to GDSN for Kroger, is Mercury the same thing or a new process? Do we have to republish? ........................................................ 17 If a supplier repacks items that do not have a GTIN, how do we proceed with Kroger? ........................................................................................................................................... 17 How will the suppliers upload the nutrition and ingredient information to GDSN? 17 How long will it take to setup a new item? ......................................................................... 17 Are all of the attributes Kroger is requiring applicable for DSD items ....................... 17 Will the suppliers receive e-mail reminders prior to deadlines for the implementation process?.......................................................................................................... 17 How do I publish multi SKUs, multi CPG temporary displays? ..................................... 17 QUESTIONS ABOUT GETTING STARTED / WHAT WE NEED FROM SUPPLIERS ........... 18 Who should I call if I have questions about these changes? ........................................ 18 How do I get started on GDSN? ............................................................................................. 18 What is the first step I should take to comply with what Kroger needs?.................. 18 Is the file mentioned as part of the data review process discussed on the webinar the same as the file that 1WorldSync sent the suppliers for the GTIN conversion process? ......................................................................................................................................... 18

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PROGRAM OVERVIEW / BACKGROUND QUESTIONS What is Program Mercury? • •

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Program Mercury is building the foundation to better support our Customer 1 st strategy by improving systems, processes, and the quality of our data. Mercury is comprised of many system and process upgrades that started in 2012 and will span over several years. Mercury will impact almost every department, our suppliers, our stores, and our customers. Components of Mercury include: • Master Data Management • There will be a new single system where all of the information we have about the products we sell resides • We will have much more information about the items in our store with this new system • The new systems will automate many paper-based activities • This new system will include characteristics or “attributes” of the items we sell that will let us look at items like our customers do • Enterprise Allocation • A new Enterprise Allocations tool is being implemented within the Kroger family of stores providing the ability to calculate allocations using more robust and scientific methods. • The vision of the Enterprise Allocations tool is to further ensure we have the right merchandise, at the right place, at the right time. • Stores and Divisions will not have new or different work as a result of this new tool, but they will notice that the allocations they receive more accurately meet their promotional needs. • Product Lifecycle Management • The Product Lifecycle Management (PLM) Project is comprised of two parts: • New Product Development (NPD) – providing the systems and processes to support the development of new Kroger branded products • Product Data Management (PDM) – providing a new system and processes to house all of the data we need to manufacture our Kroger branded products • The new PLM systems and processes are currently being used to help some plants manage information about the products we make and sell, and will be rolled out to all manufacturing plants by the end of 2013 • Data Governance • A new Data Governance Council is in place to help manage the data we keep about our store items • This group will function as the governing body for Family Tree hierarchy structure and will also be responsible for monitoring data accuracy across all lanes of business - internal users and suppliers • This group is already in place and consists of representatives from across the organization 5|Page

What are the objectives of Mercury? •

Program Mercury supports the goals of Kroger’s Customer First Strategy:  To know our customers better than anyone. In other words, Bring the right products and services to the right customers at the right time  To be recognized for providing relevant products and information to our customers  To be recognized as being the first and best with bringing new and innovative products to the store shelf  To be the best for “in stock” position  To constantly examine our business processes and change where needed

Why is Kroger doing this? Mercury will provide many benefits to Kroger, our Customers, and our Suppliers: • Improving the Shopping Experience • Fewer POS interruptions due to “not-on-files” or rejected coupons due to coupon family code inaccuracies • Receipt tape and shelf tags will be more descriptive and user friendly • Expanded item attributes provides enhanced methods for searching for items down the road on the web • Improved product tracking which will help with product recalls • Ensuring our Customers get the products they want • Faster speed to market with new items due to new item setup process and less manual labor • Ability to maintain additional item attributes such as NuVal, kosher, etc. • Ability to do health awareness alerts (allergens, cholesterol, etc.) • Helping us ensure that our prices are good • Increase operational efficiencies by being able to maximize truck capacity better due to more accurate product dimension which can then be reinvested back in our pricing strategy for our customers. • Less discrepancies between POS price and shelf tag price • Helping our people be the best they can be • Automate and simplify the item setup and allocations processes so our associates (and your associates) can focus their attention on our customers and sales versus chasing problems due to the paper based processes of today In short, Mercury will: • Enable Kroger to respond more quickly to the evolving demands of our customers • Allow us to focus on increasing sales of the products our customers want • Enable Kroger to have improved data accuracy through all areas of the supply chain • Ensure efficient use of our mutual resources

How will this benefit the customers? • • • •

We will have product attributes that will allow us to look at products like our customers do We will have better data so we will have fewer out of stocks We will have the capability to enhance our product descriptions on receipt tapes and shelf tags We will have fewer checkout interruptions (such as not-on-files, and rejected coupons) leading to a faster check-out experience 6|Page

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We will have product images and more product information for searches which leads to a better e-commerce experience

How will this benefit suppliers? •

When Mercury is complete, we will have a much more streamlined process that will help us get your products to market faster, and more efficiently manage item modifications.

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Our associate’s ability to focus their attention on our customers and sales versus chasing problems due to the paper based process of today will help our suppliers in the long run to sell more products.

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The use of GDSN provides more timely, accurate and compliant data with fewer manual processes.

What, specifically, is changing because of Mercury in 2013 and 2014? •

We are introducing a new system for allocating product to our stores.

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We are creating and starting to use one common system for all of the items we sell in the Kroger family of stores. The information about the items is called ‘Mater data’ that will reside in one central system.

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We will use a global standard called Global Data Synchronization Network (GDSN) to receive information about items from our suppliers and distributors.

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We will have a new Vendor Item Portal (VIP) to collect additional information about the items we get from suppliers.

Does Mercury apply to all divisions within Kroger?  Items that are ONLY in the Fred Meyer “Magic” system are NOT currently affected by this program. Suppliers to all other divisions of Kroger family food stores are included in Mercury and will be required to take action.

TECHINCAL / SPECIFIC QUESTIONS ABOUT ELEMENTS OF THE CHANGES What is a GTIN? • • •

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GTIN stands for Global Trade Item Number. It is a globally unique 8, 12, 13, or 14 digit number that identifies products and services. For example, a 12-digit GTIN is encoded into a U.P.C. barcode. GTIN-14’s are the GS1 standard for use in databases and are required to synchronize item information through GDSN (Global Data Synchronization Network) data pools. GTINs are shared with trading partners in electronic business transactions (example, data synchronization and EDI). More information on GTIN’s can be found at: http://www.gs1us.org/barcodes_and_ecom/standards/gs1_identification_numbers/global_trad e_item_number

What is the GDSN? •

GDSN stands for Global Data Synchronization Network 7|Page

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The GDSN is an automated, standards-based global environment that enables secure and continuous data synchronization. This allows all trading partners to have consistent item data in their systems at the same time, ensuring that all parties in the supply chain are working with the same data. The GDSN helps to save time and money for all organizations by eliminating steps to correct inaccurate data. The GDSN enables the GS1 Global Registry and a network of interoperable, certified data pools that enable data synchronization per GS1 System standards. Many other retailers have leveraged GDSN for the past several years to improve the quality of data exchanged. GDSN works with many global data pools and Kroger has chosen a company called 1WorldSync for this data pool service.

What is a GLN? • •

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GLN is an acronym for “Global Location Number” A GLN is a unique GS1 number that is given to each company or location (legal entities, functional entities, and physical locations). This means, it is a special number that is assigned to your company. This way, all of your products can be tied to your company and each of your special locations. A GLN is comprised of 13 digits.

Are the GTIN Conversion Project and the GDSN initiative linked? • •

In order for a company to use GDSN (the Global Data Synchronization Network), they must utilize the GTIN (Global Trade Item Number) to uniquely identify their products As a prerequisite to Kroger’s Mercury program, suppliers must be GTIN compliant, so please continue your efforts in this area.

What is 1WorldSync? •

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1WorldSync is a GDSN-certified data pool and has partnered with Kroger to implement its data synchronization initiative. Kroger uses the 1WorldSync Data Pool Solution for its GDSN services and development of the upcoming Kroger vendor item portal. 1WorldSync supports and works with over 60 retailers and 6,000 suppliers (of all sizes). To learn more about 1WorldSync and its services, visit www.1WorldSync.com or call +1 866.280.4013.

Have other companies done things like this? •

1WorldSync has worked with over 60 retailers world-wide to assist with their GDSN and data synchronization initiatives.

What is the VIP? (Vendor Item Portal) •

The VIP, or Vendor Item Portal, is a portal built by 1WorldSync that will, coupled with GDSN data, allow Kroger suppliers to provide all the information needed for Kroger to set-up and maintain the products that are sold in its stores. All suppliers are expected to use the portal once developed. The portal will be used to input the Kroger specific item attributes or the attributes not yet supported by GDSN.

Will the Vendor Item Portal have import capability? •

Yes, you will be able to import spreadsheets of data into the portal. 8|Page

Is GTIN 12 compatible with Kroger’s Mercury initiative? •

Yes

QUESTIONS ABOUT DATA SYNCHRONIZATION What is Data Synchronization? 

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Data synchronization is the electronic transfer of standardized product and location information between trading partners and the continuous synchronization of that data over time. When this data is exchanged via a central global repository - GS1 Global Registry™, it is referred to as Global Data Synchronization. Product information includes: • Item attributes controlled by the supplier, e.g., Global Trade Item Number (GTIN), Size, Weight, Height, Brand, UPC code Location information includes: • Global Location Number (GLN) – Locations involved in trade such as company headquarters, billing departments, and ship-to addresses

What are the benefits of synchronizing data through the GDSN? 

There are several benefits, including: • Allows real-time item maintenance for specific fields • Provides accurate, standards based, synchronized data that reduces inefficiencies in the supply chain • Ensures dimensions are correct and stored at the each, case, warehouse pack, and pallet levels

Why is Kroger implementing data synchronization? 

Kroger is implementing data synchronization to streamline its processes, focusing on improving supply chain efficiencies for Kroger and its trading partners. Kroger believes data synchronization provides tangible benefits for retailers and suppliers such as: • • • •

Reduced hand keying for creation of items Increasing market share for early arrival of new items Increasing the efficiency of businesses Building the foundation for electronic collaborative commerce

What is a data pool? What is a GDSN-certified data pool? 

An entity that provides its customers’ data synchronization services and a single point of entry to the Global Data Synchronization Network (GDSN) is called a data pool.

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Data pools must be certified per GS1 System standards to operate within the GDSN. Data pools interoperate with the GS1 Global Registry and each other. Example: 1WorldSync Data Pool.

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1WorldSync is wholly owned subsidiary of GS1 US, the not-for-profit standards organization for the United States. 9|Page

What is a company prefix? 

A company prefix is a globally unique number assigned to companies by GS1 Member Organizations (GS1 US in the United States) to create the identification numbers of the GS1 System.

Is data synchronization an Information Technology (IT) function? Does it require IT resources? 

Data Synchronization is a business process that uses technology in its implementation. For a successful implementation, it is recommended to have executive sponsorship and technology resources allocated to this program.

Is data synchronization just another term for EDI? 

No. EDI is used in the transmission of many e-business transactions, whereas data synchronization is the electronic transmission of standardized product and location information.

Does my sales team need to be involved with data synchronization? 

Yes, sales people play an important role in the success of this process. For example, for new items to be submitted to a buyer at Kroger, the sales person would go into Kroger’s Vendor Item Portal (VIP) to add missing attributes, such as Division, Category, and other top off attributes and then submit the new item information to their buyer.

What is the Global Product Classification (GPC) code? 

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A GPC code is an 8-digit number that represents a classification of products. It is a ‘flat’ classification system based on attributes and values. Global Product Classification is a required element of the global data based on attributes, and values and is a required element of the GDSN. The GPC IS CRITICAL TO ROUTING YOUR ITEM to the correct Category Manager and Class within the Kroger Supply Chain DO NOT USE 9999999 for your GPC code. If you send a GPC code that is not currently in scope or you select a class that is not yet set to convert for Kroger your item will load in VIP like any item that is currently in scope. Note: If you need a list of GPC codes contact your data pool (e.g. 1WorldSync). To request a GPC code to be added to standards, work with your data pool (e.g. 1WorldSync) or your Solution Partner to submit a change request

Will Kroger have a different GLN? 

Publications for Kroger will be done to the same GLN: 0011110000019.

Do Private Label suppliers need to engage in data synchronization? 

Yes. Private Label suppliers will still obtain GTIN information from Kroger and supply the GLN as the Information Provider for these items.

Do third party suppliers need to engage in data synchronization? 

Yes. Third party suppliers must work with the Information Provider to establish a process for sending the data to Kroger via data synchronization. 10 | P a g e

Does Kroger want my New Item publications before the Sales Call or after the Kroger merchant has agreed to carry my product? 

Kroger wants to receive your New Item publications after the Kroger merchant has agreed to carry the product.

I am a Manufacturer/Vendor Representative. How do I get involved in this process? 

You must contact your manufacturer to jointly determine how items will be submitted to Kroger and how you will be involved in the data synchronization initiative.

Where do I find Kroger Attributes? 

Attributes are constantly being updated and defined for each of the classes. Visit www.1worldsync.com/kroger to see the latest version of the attributes listing.

My Kroger Vendor Number is required but I don’t know it? 

Please contact Kroger at [email protected] and provide them with your contact information so they can locate your Kroger Vendor Number.

I am not a member of GDSN or a data pool can I submit items to Kroger? 

Kroger has added functionality to the VIP that allows users who do not participate in data synchronization to send items as Non-GDSN items through the VIP. Suppliers must register in order to obtain access to the VIP and can visit the landing page at www.1worldsync.org/kroger to find information about registration.

Is training specific to the VIP available? 

Yes, there a wide range of training options including online recorded training, virtual real time training options, and training documentation that walks you through the mercury program and the requirements as a supplier to Kroger.

I don’t understand a requirement or how to answer an attribute what should I do? 

Use your best judgment when you can. Envision if a customer called your customer service team and asked you the same question; how would your agent answer the question? Kroger is attempting to collect attributes for all verticals in their business (advertising, hazard, logistics, merchandising) so it’s important that the information is accurate and up to date. How you respond to some of the attributes will drive taxability, shelf tags and ecommerce visibility.

Can I just use GDSN to do data synchronization? 

No, In order to synchronize your item data information, it should first be published through the GDSN. Once a “Review” Catalogue Item Confirmation (CIC) message is received, suppliers must then log into the Kroger VIP to add details such as Division, Class specific attributes and other VIP required attributes and then submit the item to Kroger.

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The data I sent through data synchronization doesn’t match what is seen in VIP. What should I do? 

Please contact 1WorldSync technical support at [email protected] or +1 866.280.4013.

How do I know if I need to assign a new Universal Product Code (UPC) when I make changes to an existing product? 

Follow the GS1 Standards GTIN Allocation Rules. For example, if the consumer net content changes, then a new UPC must be assigned. For more information on GTIN Allocation Rules visit www.gs1.org/gtinrules . Contact your data pool for more information.

Is data synchronization only for New Items, or should I publish existing items that Kroger carries?  Kroger will be contacting you with items they want published via the Item Confirmation Report. This will be all of the items they are asking you to send as an initial load for the data migration. Once Data Migration is complete all New Items are to be sent in using Data Synchronization and the VIP.

Should I publish my complex hierarchies? 

Yes. For complex hierarchies, Kroger will be accepting all levels of the item hierarchy.

Do my Exploding/Dynamic Assortments for need to be synchronized through the GDSN? 

Yes. For Exploding/Dynamic Assortments (where a vendor packages multiple retail GTINs in one box with one shipping GTIN), will be taking data at the EA (Each) level. Additional levels will need to be added directly via VIP.

Will Kroger be able to handle multiple packaging configurations for an item? 

Yes.

What should I do if I have published my items but I do not see them in VIP? 

Check with your GDSN certified data pool (e.g. 1WorldSync) to ensure that your item synchronization was successful to Kroger. If you continue to have difficulties please contact 1WorldSync technical support at [email protected] or +1 866.280.4013 for more details.

How long does it take for the data to show up in VIP after I have published? 

Once 1WorldSync has pushed data to Kroger (and assuming there is no backlog), you should see your publication in approximately 1 to 4 hours. 1WorldSync pushes data to Kroger every hour daily between 6:00 AM US Central Time to 6:00 PM US Central Time.

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I have successfully submitted my items to Kroger in VIP and have not received a SYNCHRONIZED status from Kroger. What are my next steps? 

If after 1 business week you have not received either a “SYNCHRONIZED”, “REJECT”, or “REVIEW” status on your items, check with Kroger to confirm the item is being reviewed and/or if Kroger wants to carry your item.

Is checking the correct “Initial Load” or “New” Publication Types for incoming Catalogue Item Notification (CIN) publications important? 

If the publication type is not set correctly, you will receive a “REVIEW” CIC Message and you will need to resubmit the publication. Please see Kroger’s Implementation Guide and training materials for more details regarding implementation requirements.

When can I expect to see a Catalogue Item Confirmation (CIC), and what are the possible responses of a CIC (Authorization) that I can expect to see? 

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Item publications are received by Kroger and staged in VIP. If there are no problems with the data received, a “Review” Catalogue Item Confirmation message will be returned. Once the “REVIEW” response is received the supplier should login to VIP to add any additional information and submit the item to Kroger for approval. Once the item is submitted in VIP, an “ACCEPT” Catalogue Item Confirmation message will automatically be sent. After the item is submitted in VIP it will go through the internal approval process. If there are problems with the data received, a “REVIEW” Catalogue Item Confirmation message will be returned. The supplier should review the status detail and correct the issue through their certified GDSN data pool (such as 1WorldSync) or directly in VIP. If Kroger wants to carry the item and the data received passes internal review, a “SYNCRHONIZED” Catalogue Item Confirmation message will be returned. If the item is not an item Kroger is expecting to receive, a “REJECT” Catalogue Item Confirmation message will be returned.

When will the category manager see my Item publications? 

Once you have submitted your items and an Accepted (CIC “ACCEPT”) has been returned, your Category Manager will have visibility to your items.

How long will I have to submit my items to the Kroger category manager? 

Kroger will have a defined timeline for each class that they will ask that you publish data in accordance with their roll out schedule. Please check the landing page www.1worldsync.com/kroger for more information about the deployment.

How will Kroger handle ongoing Data Synchronization? 

Any changes/modifications must be sent through the data synchronization process or made directly in the VIP to remain in sync with Kroger.

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QUESTIONS ABOUT HOW THIS IMPACTS SUPPLIERS What do suppliers need to do differently? 

You will be primarily responsible for getting all of the data we need about your items into our systems. This will require suppliers to do a little or a lot of work initially depending on the supplier.

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Many of our suppliers are already participating in a global standard called Global Data Synchronization Network, or GDSN.

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For suppliers who are already participating in GDSN, Mercury will significantly reduce the time and effort it takes to communicate with Kroger about items they provide.

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You can still participate with Kroger if you are not part of GDSN, but it will require effort on your part. We strongly encourage you to use GDSN. If you are not on GDSN, a vendor item portal will be provided and the supplier will be required to manually input all of the attributes normally provided by GDSN. All of the required attributes will need to be provided (either via GDSN or by manually keying in the portal) before the item is accepted by Kroger.

Do all of Kroger’s suppliers need to implement data synchronization using GDSN? 

Kroger recommends that all of its suppliers begin utilizing the GDSN to submit new item and item changes. However, if that is delayed, a vendor item portal will be provided and the supplier will be required to manually input all of the attributes normally provided by GDSN. All of the required attributes will need to be provided (either via GDSN or by manually keying in the portal) before the item is accepted by Kroger.

How is Kroger selecting the vendors that will convert to the new Master Data Management system? 

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Kroger is rolling out a new master data management system to suppliers by “class” or category or commodity type. Kroger has started to convert products in the following classes: 065 - Cheese (Grocery) 089 - Salad Dressing (Grocery) 108 - Air Care 111- Paper Towels 161 - Baby HBC 228 - Coffee Filters 470 - Deli Meat 579 - Breakfast Sausage (Meat) 640 - Salad Mix (Produce) Upon successful completion of these first classes of products, we will begin converting all classes within the Kroger Family Tree in waves. More information regarding the timelines for these conversions will be available throughout 2013.

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What type of data attributes is Kroger interested in receiving via the Global Data Synchronization Network (GDSN)? (See “What is GDSN” also)  As part of Mercury, Kroger plans to gather item attributes via the GDSN and some additional proprietary attributes (as appropriate) via a vendor portal that 1WorldSYNC has developed.  Kroger is requiring attributes in the following classes: basic item information, supply chain, hazard related attributes, sales planning/KOMPASS, reclaim, discontinue, nutritional, family tree specific, shrink and WIC, and attributes that our customer care about.  Kroger is gathering these attributes because our customers want them, or because we need them for business or regulatory purposes.

What will be the new process for introducing an item to Kroger? 

Suppliers will be asked to introduce new items in the future via GDSN and /or the vendor item portal. Suppliers will no longer use the paper new item form.

What will be the new process for modifying an item with Kroger? 

Suppliers will be asked to make item changes in the future via GDSN and /or the vendor item portal.

What will be the new process for discontinuing items with Kroger stores?  

Suppliers using GDSN will send the discontinuation notice electronically to Kroger. For items that Kroger discontinues, notification will be sent to the supplier via GDSN.

What do I do if I sell to Kroger through a broker or distributor?   

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We suggest you have discussions with each of your brokers/distributors to understand how you will jointly fulfill Kroger’s data requirements. Kroger’s preference is for the brand owner to be the information provider of the data about their products. Kroger also recognizes this may not always be feasible. The Kroger recommended solution is as follows: • The supplier publishes the core product data to Kroger via GDSN. If it is necessary for the broker/distributor to provide some or all of the “top-off” data, the broker/distributor will log into the VIP using the brand owner’s VIP subscription (reflecting the brand owner’s Information Provider GLN). • Your brokers/distributor will have to be authorized by you to use your VIP subscription. That broker/distributor will be able to see all items that you have published to Kroger, regardless of if they are represented. The brokers/distributors will have to sign on separately for each supplier they represent. If you cannot follow the recommended implementation solution, then you and your broker/distributor will need to determine how the required Kroger data gets into the VIP (Vendor Item Portal).

Does GDSN cost suppliers anything? 

There is a cost to the suppliers for utilizing GDSN. There are several data pools that you can use to particpiate in GDSN. 15 | P a g e

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Kroger is using 1WorldSync, the largest data pool, but you are welcome to use any other you choose. For more information, please visit www.1worldSync.com or call +1 866.280.4013.

What do we do if we don’t have all of the information about our products that Kroger wants in this new process and system? 

All of the information requested is required before the item will be accepted by Kroger. That data can be populated electronically or manually.

How long will it take for my company to get up and running on the new process? 

We expect all suppliers to be up and running in the next few years, but are planning a rollout (by classes) in phases to begin in early 2013.

Will we still fill out paper forms to set up, modify or discontinue items to Kroger? 

As classes are converted to Mercury, the paper forms will be discontinued.

Will I still use the Venus system (if I am using it now)? 

No, once your commodity is converted to Mercury, the Venus system will not be used.

We do DSD (Direct Store Delivery) for Kroger. Does this change how that process works? 

DSD suppliers are being asked to utilize this new process once available.

We allocate product to Kroger stores right now. Will this change my allocation process? 

Yes.

What role will suppliers have ongoing? 

Suppliers will be primarily responsible for entering information about their products into our systems.

Will my relationship with my category manager change? 

No, the purchase decision is still made by the category manager as it is today. Program Mercury will revolutionize the way the item data is exchanged but the relationships will remain the same.

Will we get training on the new process and tools? 

Yes. Kroger will provide regular communication throughout the year and training on the vendor item portal once available.

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

1WorldSync will also provide various training materials including a step-by-step implementation guide. Visit www.1WorldSync.com/Kroger for more information.

Will we get to see the new portal (VIP) before we are trained on it? 

Yes. As categories (classes) are rolled out, there will be meetings and webinars that you will be invited to in order to see the Vendor Item Portal before training begins.

How will Kroger communicate with me before, during, and after this change? 

Kroger plans on communicating to its suppliers about this initiative continuously. That communication can be in the form of memos, webinars, signage, tri-folds, etc.

If a supplier already sent information to GDSN for Kroger, is Mercury the same thing or a new process? Do we have to republish? 

You will need to republish. If you have sent data via GDSN to Kroger in the past, that was for the Delaware logistics program and/ or the GTIN conversion project.

If a supplier repacks items that do not have a GTIN, how do we proceed with Kroger?  You will need to assign a GTIN if one doesn’t exist. How will the suppliers upload the nutrition and ingredient information to GDSN? 

Suppliers should work with their respective data pool provider to learn how to upload nutrition and ingredient information into their respective data pool.

How long will it take to setup a new item? 

The answer depends on whether or not you use GDSN or if you will enter all of the item data manually via the portal.

Are all of the attributes Kroger is requiring applicable for DSD items? 

Yes

Will the suppliers receive e-mail reminders prior to deadlines for the implementation process?  Kroger plans on using multiple communication vehicles to share information about Mercury with the supplier community. The formalized implementation process has not been finalized. We will need to follow-up on this topic.

How do I publish multi SKUs, multi CPG temporary displays? 

We are not ready to implement 3rd party providers of pallets in this release of Mercury. Longterm, the contents of the pallet will all be set up individually.

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QUESTIONS ABOUT GETTING STARTED / WHAT WE NEED FROM SUPPLIERS Who should I call if I have questions about these changes? 

For any questions about this initiative, contact your Kroger category manager or buyer, email [email protected], visit www.1WorldSync.com/kroger, or call +1 866.280.4013

How do I get started on GDSN?  

To learn more about GDSN, go to www.gs1.org/gdsn or www.1worldsync.com/kroger. To get started with the GDSN and learn more about 1WorldSync and its services, visit www.1WorldSync.com or call +1 866.280.4013.

What is the first step I should take to comply with what Kroger needs?       

Suppliers/Manufacturers must be GTIN compliant with Kroger prior to conversion to Mercury. To initiate the process, complete the Kroger GTIN/5010 Conversion Questionnaire (Vendor Checklist) at http://edi.kroger.com/ediforms Communicate to Kroger who at your company will be responsible for complying with Kroger’s data requirements. It is critical that Kroger have a good contact on file for communication. This person will receive regular communications from Kroger regarding the Mercury Program. Review Attribute Sheet found on the Kroger/1WorldSync landing page and determine the source of information for your company. Determine the source of the various Kroger attributes. If some attributes will be required by a broker/distributor, work with your agent to determine how you will jointly fulfill Kroger’s attribute requirements. Identify your Information Provider GLN (Global Location Number) and communicate that number to Kroger When you receive your Item Confirmation Report, review the item designation and confirm the action to be taken (active item, delete item). This report will be delivered to the person you’ve identified as the contact for your company. Attend 1WorldSync training to learn more.

Is the file mentioned as part of the data review process discussed on the webinar the same as the file that 1WorldSync sent the suppliers for the GTIN conversion process? 

No, the first file the suppliers should have received was for the GTIN conversion process. The data review file is to verify that the items are yours and that they should remain active or be deleted.

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