16 mile investor deck presentation october 2008

8/14/2019 16 Mile Investor Deck Presentation October 2008

1/19

EDI Web 3.0 More Tools, Less Cost

Mark Pattison, Founder and CEO

October 2008


2/19

Electronic Data Interchange (EDI) is the process of companiesElectronic Data Interchange (EDI) is the process of companieselectronicallyelectronically

communicating purchase order information between each other.communicating purchase order information between each other.

How are we different?How are we different?16 Mile has simplified that process in offering more tools to16 Mile has simplified that process in offering more tools toprocess an order. We charge a seat license. The rest of theprocess an order. We charge a seat license. The rest of theplanet charges based on the number of transactions.planet charges based on the number of transactions.

What is 16 Mile Solutions?What is 16 Mile Solutions?


3/19

Vital statisticsVital statistics

CompliancyCompliancy

Web HostedWeb Hosted

VisbilityVisbility

DashboardsDashboards

KPI'sKPI's

Bundled Tools SetsBundled Tools Sets

Multi-DimensionalMulti-Dimensional

Mobility EnabledMobility Enabled

SaaS Model = Less CostSaaS Model = Less Cost


4/19

Worldwide Supplier Relationship Market(millions of dollars)

Source: ARC Advisory Group 2007

The supplier relationship market (SRM) is expected to grow at acompounded rate of 8.2% from $1.6 billion in 2006 to $2.35 billion in2011.

Today, 35% of small- to medium-size companies those earning

annual revenues of $30 million to $1 billion still use manualprocesses for communicating with their suppliers.

Market Opportunity-its huge!


5/19

No incentive for current competition to change. They all charge

based on transactions and would have to restructure their entirebusiness to adapt which would mean massive revenue loss.

Of 309,909 U.S.-based businesses, 79,804 fall in in our targetmarket companies with $30 million to $1 billion in annual

revenue.

We only need 2,200 companies as customers (2.75%) to reach ourannual revenue goals.

Key:

A = annual revenue

B = number of U-S.- basedcompanies with thatrevenue

A B

MARKET SUMMARY


6/19

The Journey:The Journey:This track represents all the various segments within Supply ChainThis track represents all the various segments within Supply Chain


7/19

The Problem:The Problem:


8/19

Purchase order management todayPurchase order management today

All of these tracksrepresent transactionaldollars spent oncommunicating


9/19

The Solution:The Solution:Our inaugural product, 16 Mile OV, is a hosted solution that differsOur inaugural product, 16 Mile OV, is a hosted solution that differsfrom its competitors in five very important ways:from its competitors in five very important ways:

New Pricing ModelNew Pricing Model: Results in 50-100% lower EDI costs, plus no: Results in 50-100% lower EDI costs, plus nocharge for transactions to and from suppliers sent via AS2 and FTP.charge for transactions to and from suppliers sent via AS2 and FTP.Others charge by kilobytes for each transaction.Others charge by kilobytes for each transaction.

Multi-dimensional Order VisibilityMulti-dimensional Order Visibility: Delivers real-time, multi-: Delivers real-time, multi-dimensional order information across supply networks, along withdimensional order information across supply networks, along with

EDI (electronic data interchange). Others only offer EDI.EDI (electronic data interchange). Others only offer EDI.

New TechnologyNew Technology: Based on new database structure that integrates: Based on new database structure that integratesdata from Oracle, VANs and other back-end systems, results indata from Oracle, VANs and other back-end systems, results inbetter end-to-end management of supply and demand.better end-to-end management of supply and demand.

Built-in ToolsBuilt-in Tools: Unites EDI and order visibility with tools and reporting: Unites EDI and order visibility with tools and reportingcapabilities for vendor performance, event alerts, inventory tracking,capabilities for vendor performance, event alerts, inventory tracking,response management, scanned-based trading, and more.response management, scanned-based trading, and more.

Mobile EnablementMobile Enablement: 16 Mile is the only EDI provider to deliver all: 16 Mile is the only EDI provider to deliver allEDI related information directly to the mobile phone. Can go crossEDI related information directly to the mobile phone. Can go cross

carrier, cross platform is secure and encrypted.carrier, cross platform is secure and encrypted.


10/19

16 Mile Streamline business processes

Low Seat License. Notransactional fees. Pay as

you go model


11/19

16 MILE vs. The COMPETITIONGrey represents capabilities


12/19

PRODUCT MILESTONESBeta testing completed January 2007 (with Starbucks)Product launch April 2008

SALES MILESTONESCLOSED DEALS: Robins and Meyer, Olympia Sports, Carbon 5, Inmoda,Mello Sales, Staub USA, The Pattison Group (translating data betweenthem and retail giants Adidas, Columbia Sportswear, KB Toys, Nike,

Reebok, Sams Club, Starbucks, Target, Wal-Mart, PetSmart, Dillards &more)

PENDING PROPOSALS: PetFood.com, Safeway, Kassatex, VentureProducts, Red Wing Shoes, Capacity, K&M International, plus 20 others

IN DISCUSSIONS: Nordstrom, Starbucks Coffee, Restoration Hardware,Schenker Logistics, True Religion Jeans, Baden Sports, Car Toys

OTHER MILESTONESLEGAL: Perkins Coie agreed to provide legal representation as part as itsEmerging Company program.

PATENTS: 1 process and 1 technology patent pending for warranty

Milestones


13/19

Financial Summary

Goal: Reach 2.75% of our target market for success

**Detailed revenue model available upon request


14/19

Founded 15-year-old brandedmerchandise and import co.

1,000s of transactions, 100s of

customers 10-year Preferred Vendor of

Starbucks Coffee

Manufacturer of all Starbucksoutdoor umbrellas and bases for

North America, Latin America,and Asia

Co-founder, 2000

Makers of coffee table games

700 retail locations, seven

countries Family Fun Toy of the Year

Award 2002 and 2003

Angel and VC funding

Acquired December 2006

Founder has experienced supply chainissues first-hand:


15/19

Board of Advisors

DEAN BAKER: Founder of Asset Recovery Specialist Inc. (www.equipmentrecovery.com), asset management for banks and leasing

companiesJOHN BAUGHN: Former partner of Accenture for business and ITarchitecture, managing over $100 million dollars.DIANE DEWBREY: CEO/President of Foundation Bank.

TIM DOWLING: VP of Business Development.TERRY DRAYTON: Co-Founder of Home Grocer, Count Me In, RampTechnology Group (www.RampGroup.com)

DAN NORDSTORM: Former CEO ofwww.Nordstrom.com, current CEO of

Outdoor Research Company (www.outdoorresearch.com)Each advisory member has invested in 16 Mile Solutions
http://www.equipmentrecovery.com/http://www.rampgroup.com/http://www.nordstrom.com/http://www.outdoorresearc.com/http://www.outdoorresearc.com/http://www.nordstrom.com/http://www.rampgroup.com/http://www.equipmentrecovery.com/


16/19

Prior Funding:$200,000 from founder

Series A Raise @ $1,500,000

$1,500,000 raised

Pre-money valuation: $2.5 million

Preferred shares .35

Series B Raise @ 2,500,000 Capital will allow us to:

Acquire working capitalHire infrastructure (CTO, CFO, sales, marketing, support)

Launch channel partner program

Continue public relations, SEO & marketing campaign

Funding Requirements


17/19

$70 million in revenueMore than 2,000 clients worldwideEstablished international channel partnershipsNext-generation status in retail complianceRecognized market leader in automating supply chaincollaboration, communication, and warranty claimExiting through acquisition by company with compatible fit

. . .

Where Well Be in 3-5 Years
http://www.perfect.com/index.htmlhttp://www.oracle.com/technology/index.htmlhttp://www.i2.com/index.cfmhttp://www.manh.com/


18/19

Companies cant do business with larger companiesCompanies cant do business with larger companieslike Costco without beinglike Costco without being EDI compliant.EDI compliant.

Superior reliability & completely competitive.Superior reliability & completely competitive.

An outsourced solution that moves all the complexityAn outsourced solution that moves all the complexityof the function away from the supplier, eliminating theof the function away from the supplier, eliminating theneed for internal EDI expertise. Superior scalability toneed for internal EDI expertise. Superior scalability toany company size.any company size.

Web = Easy to do. App = Pain in butt.Web = Easy to do. App = Pain in butt.

No one else is offering a SaaS.No one else is offering a SaaS.

Quick Recap:


19/19

Mark Pattison, Founder and CEO712 N. Motor Place Suite 3

Seattle, WA 98103206.675.1066206.675.1099

[email protected]

EDI Web 3.0 More Tools, Less Cost
mailto:[email protected]:[email protected]

16 mile investor deck presentation october 2008

Documents