Proposal To Establish Order Management And Distribution

PROPOSAL TO ASSIST

CLEANER INNOVATIONS DESIGN AND ESTABLISH ORDER MANAGEMENT AND DISTRIBUTION CAPABILITIES FOR

BERRY PLUS

AUGUST 3, 2009

LIGHTSHIP PARTNERS – OPERATIONS AND TECHNOLOGY. STRATEGY THROUGH EXECUTION.

Lightship provides a broad and deep range of skills, knowledge, and experience across both operation and technology Senior executive and consulting experience Former COO’s and Supply Chain Executives Former CIO’s/CTO’s in consumer products, retail, and manufacturing Former Big 4 and Boutique consulting partners

Operations and technology knowledge Cross industry knowledge Best practices

Operations and Technology Knowledge

Consulting and Executive Experience

Strategy, Planning, and Execution Skills

Strategy, planning, and execution skills Able to assist from “end to end”

Skills to know “how” Knowledge to know “what” Experience to “get it done”

Predictable Profitable Growth © 2009 LIGHTSHIP PARTNERS LLC

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LIGHTSHIP PARTNERS – INSIGHT. GUIDANCE. RESULTS.

Lightship works in partnership with our clients to deliver predictable profitable growth

Predictable Profitable Growth Deliver Results Provide Guidance

• People, Process, Technology • Manage Execution

• Understand Options • Design Plan

Develop Insight • Understand Uniqueness • Share Investment • Develop Strategy

© 2009 LIGHTSHIP PARTNERS LLC

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PROJECT TEAM

Our project team for Cleaner Innovations includes experienced resources to assure quality Project Team

Quality Assurance

Michael Beller Project Role: Client Partner with overall day to day responsibility for relationship and project 10 years of experience as a COO and CIO in Retail, Consumer Goods, and Technology 15 years of experience with Big 4 and boutique consultants driving process improvement and technology initiatives in consumer goods, manufacturing, technology, and financial services Scott Rabinowitz Project Role: Project Principal Experience establishing, improving, and managing Supply Chain processes for distribution network including; • 1.5MM sq. ft. distribution center in Columbus • Inbound logistics from ~250 suppliers across ~39 countries • Outbound logistics to ~279 retail locations across ~40 states • Third party processing for production Experience with inventory management and coordination of business planning, purchasing, and order management across business functions to optimize inventory

Rick Beers QA Role: Quality Assurance for logistics and distribution 20+ years of supply chain and logistics management in Consumer Goods Prior roles: • Plant Manager, Division Manager of International Logistics and Vice President of IT at Corning Incorporated and Bausch & Lomb Jeff Kish QA Role: QA for order management and ecommerce 20+ years of technology and operations strategy, implementation, and operations • Order Management, Supply Chain, and ERP • Business Intelligence • Customer Service • ecommerce Prior roles: • SVP and CIO of Stage Stores (600+ store chain) • Manager, Director, and VP of Systems at Walden Book Co., Ann Taylor, and Caldor Stores

© 2009 LIGHTSHIP PARTNERS LLC

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PROJECT REQUIREMENTS AND BACKGROUND

Cleaner Innovations has completed the initial development tasks and is ready to establish order management and distribution

Design and Engineer Product

Establish Sourcing and Manufacturing

Establish Order Management and Distribution Product and Operations Launch

8/1/09

Develop Branding and Marketing Strategy

Completed

Identify Initial Market and Launch Strategy

9/21/09

11/1/09

Planned

© 2009 LIGHTSHIP PARTNERS LLC

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PROJECT APPROACH AND SCOPE

Establish Initial Order Management and Distribution Functions Phase 1 – Support Focused Launch Establish Order Management and Distribution

Manage OM and Distribution

Phase 2 – Prepare for Broad Launch 3 months Update Business Plan and Raise Capital Establish Order Management and Distribution

Future Scope

Establish Long Term Operations

Current Scope

© 2009 LIGHTSHIP PARTNERS LLC

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PROJECT PLAN AND DELIVERABLES

Initial High Level Plan Understand Requirement and Options – Insight Expected volumes Financial drivers Current research regarding third party logistics providers Current research regarding turn key ecommerce operations

Identify short list of options, evaluate, and select – Guidance Prepare RFP or similar document Evaluate options • References, financial models, SLA’s, long term suitability, etc. • Negotiate terms and finalize contracts

Implement solution – Results Develop implementation plan Manage third party resources as needed Manage initial launch operations and monitor SLA’s © 2009 LIGHTSHIP PARTNERS LLC

Options? • Yahoo! Online store? • Phone vs. online orders? • Simple one page online order form integrated with branded site!! • Small self managed facility in Ann Arbor? Issues? • Kitting during production or fulfillment? • Ship direct to consumer of via oncampus delivery?

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