EDI Web 3.

0 More Tools, Less Cost…

Mark Pattison, Founder and CEO

October 2008
What is 16 Mile Solutions?

Electronic Data Interchange (EDI) is the process of companies

electronically
communicating purchase order information between each other.

How are we different?

16 Mile has simplified that process in offering more tools to
process an order. We charge a seat license. The rest of the
planet charges based on the number of transactions.
Vital statistics
Compliancy
Web Hosted
Visbility
Dashboards
KPI's
Bundled Tools Sets
Multi-Dimensional
Mobility Enabled
SaaS Model = Less Cost
 Market Opportunity-it’s huge!
Worldwide Supplier Relationship Market
(millions of dollars)

Source: ARC Advisory Group 2007

• The supplier relationship market (SRM) is expected to grow at a

compounded rate of 8.2% — from $1.6 billion in 2006 to $2.35 billion in
2011.
• Today, 35% of small- to medium-size companies — those earning
annual revenues of $30 million to $1 billion — still use manual
processes for communicating with their suppliers.
MARKET SUMMARY
No incentive for current competition to change. They all charge
based on transactions and would have to restructure their entire
business to adapt which would mean massive revenue loss.

• Of 309,909 U.S.-based businesses, 79,804 fall in in our target

market — companies with $30 million to $1 billion in annual
revenue.
• We only need 2,200 companies as customers (2.75%) to reach our
annual revenue goals.
A B

Key:
A = annual revenue
B = number of U-S.- based
companies with that
revenue
The Journey:
This track represents all the various segments within Supply Chain
The Problem:
 Purchase order management
today

All of these tracks

represent transactional
dollars spent on
communicating…
The Solution:
Our inaugural product, 16 Mile OV, is a hosted solution that differs
from its competitors in five very important ways:

•New Pricing Model: Results in 50-100% lower EDI costs, plus no

charge for transactions to and from suppliers sent via AS2 and FTP.
Others charge by kilobytes for each transaction.

•Multi-dimensional Order Visibility: Delivers real-time, multi-

dimensional order information across supply networks, along with
EDI (electronic data interchange). Others only offer EDI.

•New Technology: Based on new database structure that integrates

data from Oracle, VANs and other back-end systems, results in
better end-to-end management of supply and demand.

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

•Mobile Enablement: 16 Mile is the only EDI provider to deliver all

EDI related information directly to the mobile phone. Can go cross
carrier, cross platform is secure and encrypted.
16 Mile Streamline business processes

Low Seat License. No

transactional fee’s. Pay as
you go model…
16 MILE vs. The COMPETITION
Grey represents capabilities…
Milestones
PRODUCT MILESTONES
Beta testing completed January 2007 (with Starbucks)
Product launch April 2008
SALES MILESTONES
CLOSED DEALS: Robins and Meyer, Olympia Sports, Carbon 5, Inmoda,
Mello Sales, Staub USA, The Pattison Group (translating data between
them and retail giants Adidas, Columbia Sportswear, KB Toys, Nike,
Reebok, Sam’s Club, Starbucks, Target, Wal-Mart, PetSmart, Dillards &
more)
PENDING PROPOSALS: PetFood.com, Safeway, Kassatex, Venture
Products, 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 MILESTONES
LEGAL: Perkins Coie agreed to provide legal representation as part as its
“Emerging Company” program.
PATENTS: 1 process and 1 technology patent pending for warranty
Financial Summary
Goal: Reach 2.75% of our target market for success

**Detailed revenue model available upon request

Founder has experienced supply chain
issues first-hand:
Founded 15-year-old branded
merchandise and import co.
• 1,000s of transactions, 100s of
customers
• 10-year Preferred Vendor of
Starbucks Coffee
• Manufacturer of all Starbucks’
outdoor 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
 Board of Advisors
•DEAN BAKER: Founder of Asset Recovery Specialist Inc. (
www.equipmentrecovery.com), asset management for banks and leasing
companies
•JOHN BAUGHN: Former partner of Accenture for business and IT
architecture, 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, Ramp
Technology Group (www.RampGroup.com)
•DAN NORDSTORM: Former CEO of www.Nordstrom.com, current CEO of
Outdoor Research Company (www.outdoorresearch.com)
Each advisory member has invested in 16 Mile Solutions
Funding Requirements
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 capital
Hire infrastructure (CTO, CFO, sales, marketing, support)
Launch channel partner program
Continue public relations, SEO & marketing campaign
Where We’ll Be in 3-5 Years
•$70 million in revenue
•More than 2,000 clients worldwide
•Established international channel partnerships
•Next-generation status in retail compliance
•Recognized market leader in automating supply chain
collaboration, communication, and warranty claim
•Exiting — through acquisition by company with compatible fit
...
Quick Recap:
•Companies can’t do business with larger companies
like Costco without being EDI compliant.

•Superior reliability & completely competitive.

•An outsourced solution that moves all the complexity

of the function away from the supplier, eliminating the
need for internal EDI expertise. Superior scalability to
any company size.

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

•No one else is offering a SaaS.

EDI Web 3.0 More Tools, Less Cost…

Mark Pattison, Founder and CEO

712 N. Motor Place Suite 3
Seattle, WA 98103
206.675.1066
206.675.1099
Mark@16MileSolutions.com