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VERIZON GUIDES NATIONAL DCP

THROUGH TECHNOLOGY REFRESH

cloud.verizon.com/getstarted

Helen Donnelly

Executive Director, Strategy & Communications

Verizon Enterprise Solutions

May, 2015

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

National DCP LLC

Business Demanded Operational Transformation

 National DCP LLC, is a $2 billion supply chain management cooperative that serves Dunkin’

Donut franchises

 Based in Duluth, Georgia

 Services more than 8,000

Dunkin’ Donut locations in 51 countries

 Services the U.S. stores that combine Dunkin’ Donuts and

Baskin-Robbins ice cream shops

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

3

Operational Transformation

Business Demanded Consolidation to Drive Growth

Improve

Customer

Service

Lower

Sustainable

Costs

Relocate from Boston,

Mass. to

Duluth,

Georgia

Drive

Supply

Chain

Efficiencies

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

4

Operational Transformation

Business Goals and Cost Considerations

Support Dunkin’ Donut’s Expansion Plan:

 Support of limited time offers & changing product mix

 Double domestic & international footprint on a long-term basis

 Service must scale to meet increased sourcing and purchasing

Cost Considerations:

 Merge 5 disparate operating companies

 Integration of 4 regions with different methods of product sourcing

 Provide franchises and store managers a higher degree of interactivity

 Improve productivity within distribution centers

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

5

Operational Transformation

KPI’s to Measure Efficiency

 Inventory turn ratios

 Fuel costs

 Order fulfillment

 Demand planning

 Pricing and margin profiles

 Customer satisfaction of franchises

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

6

Operational Transformation

The Solution: Integration through Outsourcing

Verizon Technology Refresh Priorities:

 Data Center consolidation

 Support for variable workloads

 Self-service access

 Ability to scale resources up or down as needed

 Platforms that the different businesses can use efficiently

Four Main Platforms:

1. SAP HANA CRM

2. Ariba for vendor management & procurement platform

3. Manhattan Associates for

Transportation platform

4. Manhattan Associates for

Warehousing platform

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

7

Operational Transformation

The Solution: Develop a Catalog for Phased Moves

 Defined consistent approach & metrics to determine app suitability & deployment options

 Mapped apps to the different needs of the organization

 Identified apps not suitable for cloud

 Itemized apps that had critical dependencies to other systems

 Defined apps to be re-written

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

8

Operational Transformation

The Solution: Flexible Deployment Options

Public Cloud

• Scalable, predictable infrastructure on a

per-instance basis

• Fixed VM shapes

• Credit card billing

Virtual

Private Cloud

• Added levels of configuration, control, and support capabilities

• Flexible VM shapes

• Invoice-based

Private Cloud

• Dedicated instance

• Invoice-based with limited upfront spend

• Deployed on your premises or ours

• Cloud management tools and Verizon expertise

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

9

Operational Transformation

The Results: Positioned for Growth

200

+ starting number of servers across environments servers today, greatly

77 reducing footprint

20

% of servers decommissioned through scoring methodology

 Colocation & migration services for large databases & physically migrated servers

Replaced backup infrastructure with backup

& restore

service

40

+ applications to transition, re-platform with discovery definition interdependencies between systems

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

10

Operational Transformation

Lessons Learned

 FedEx can move data center equipment (LTL).

Much cheaper than hiring movers….

 No one knows or understands their firewall rules. There are always hardcoded IPs.

 Never let a good crisis go to waste.

 A significant part of your infrastructure can be reduced/removed once an application justification is done; nothing can help to justify an application faster than having to pay for it to be moved and supported.

 Executive buy-in is necessary for transition.

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

11

Operational Transformation

Critical Success Factors

 Ease of management, usage & cost tracking and alignment

 Network integration

 Standardized cloud resource across the organizations

 Security & compliance

 Scalability

 Consistency with existing architectures

 Back-end connectivity

‘… We outsourced our legacy systems, our data center, to a Verizon colocated environment…and in Verizon Cloud… this has been an evolution over time as we took on new business and became deeper partners with each other…’

- Darrell Riekena

CHIEF INFORMATION OFFICER, NATIONAL DCP

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

12

VERIZON CLOUD

cloud.verizon.com/getstarted https://www.linkedin.com/in/hadonnelly

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

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