ISA, act always as very competent and experienced + no-nonsense + top-notch + straight-talking + realist + eloquent + charismatic American Director of Tech CapEx Finance and Financial Planning and Analysis for Product & Engineering Pod at a top-tier tech-based Silicon Valley International E-COMMERCE B2B2C MARKETPLACE to explain in professional + confident + eloquent + concise + casual conversational style all the steps involved in the 4 consecutive pages below.


[Page 1]: 
Assume Walmart International's Cross Border  Trade (CBT) Business Unit was developing a B2B2C cross-border marketplace. 0nce sellers lists on Walmart International’s B2B2C Cross-Border Marketplace, they would seamless be able to select countries to sell into to cross-border shoppers in other countries around the world where Walmart International’s Local Marketplace (for example, Walmart.ca) and/or where Walmart International’s Strategic Partners have local/country online marketplace (for example, JD.com in China).


[Page 2]:
###The ERP Investment Project
***Cross Border Trade (CBT) team has amplified an existing need for automated intercompany reconciliation Global Cross Border Team
solution**
**Issue:**
There are $107M intercompany sales in FY18, all of which are manually tracked – this hinders company growth and presents multiple legal, tax and reporting complications
**Why We Need It:**
*Legal:* Proper legal entity accounting supports legal’s position that our separate entities are adequately capitalized and all formalities have been respected
*Accounting:* Correct legal entity accounting allows tax to increase planning opportunities, decrease additional tax costs, and have an overall reliability of processes and results
*"Reporting:*" Audit Analytics reported that out of 23 differing reasons for external reporting restatements, intercompany ranked #5 (restatements can lead to reputational damage)
*Growth:* If Walmart is to continue buying eCommerce entities, we will put our financials at risk without proper legal entity accounting

***Solution (e.g., 3rd-Party Vendors like Blackline):***
• Accurately record both sides of an intercompany transaction (correct trading partner and value) from point of entry to corporate consolidation
• Systematically clear intercompany Account Payables and Account Receivables transactions in a timely manner
• Appropriately reflect management and legal entity reporting without requiring manual reconciliation between financial reports
• Implement controls (process, tools, governance) for all manual intercompany journal entries and automate where possible
• Enable systematic drill-down of intercompany reporting and analytics
• Introduce end-to-end system testing and functional (Accounting, Tax, Treasury, etc.) oversight of technology changes
• Estimated 2-year investment is $9M ($5M for Blackline; $4M for rebuilding HFM to ensure controls on financial consolidation)
• Funding comes from GBS


[Page 3]:
###Background for the ERP Investment Project:
• CBT launched an RFI back in August 2017 to get transportation and warehousing rates for Walmart International, its acquired Marc Lore's Jet.com with its verticals/digital native consumer Brands (i.e., ModCloth.com, Shoes.com, Moosejaw.com, Bonobos.com) and 3rd party sellers for Walmart's Canada and Mexico marketplaces 
• FedEx Crossborder Entity (formerly known as Bongo) was selected based on its low cost, creative agile solution, and more importantly the existing ongoing business between its parent company FedEx, Inc., and Walmart International's parent company Walmart, Inc. which gave Walmart International leverage in negotiating against FedEx Crossborder Entity (potential transportation savings ~$14M assuming 50% adoption rate by Walmart International's Crossborder online listed 3rd-party sellers)

**What CBT LLC is and why it was set up:**
• We need an entity/cost center to handle Duties & Taxes as well as Shipping & Handling when the services are used for 3rd party sales; without it, we would not be able to extend the negotiated rates to 3rd party sellers
• Setting up CBT was a joint decision between CBT, Accounting, Finance, Controllership, Global Business Services, Tax, Transfer Pricing, Compliance, Marketplace, Tech and Logistics (workshop held in December 2017)
• A small management fee will be collected for the service provided, which should cover reserves for foreign exchange fluctuations, relevant taxes and CBT team.




[Page 4]:
###Business & Technology Value
***Summary***
Executive Sponsor: Nate K
Business Owner: Robert P
Tech Owner: Arnie K
Product Owner: Ben J
**”Owner of Financial Modeling, Budgeting, Forecasting, Reporting and FP&A**: Ted B”
Type of Program: Invest
Initiative Type: “ERP”
***Rationale***
• Customers are increasingly negotiating a global ecommerce environment, demanding broad assortments, and authentic, and high quality products. They are willing to make purchases on foreign sites to get what they want. By 2021, 
cross border eCommerce will represent a $1.4 trillion opportunity and is the fastest growing segment in global eCommerce
• Cross-border is already a proven opportunity with Walmart. On Walmart.com, there’s a growing share of users coming from non-US IP addresses and shipping to freight forwarders, but we don’t have the systems to support the demand
• If we don’t invest in bringing our global assortment to worldwide customers, we will continue losing customers to competitors with this capability (e.g., Amazon)
• Our competitors are already generating 10-20% of their total GMV from Cross Border Trade, and we estimate this to be a $6B opportunity for Walmart in year 5 by cross-listing assortment to Walmart platforms & strategic partners
**Dependencies:**
• *Internal risks:* A significant amount of internal stakeholders and processes will need updating and enhancement, particularly intercompany accounting, which is in dire need of automation and systems (e.g., Blackline) to support our scale.
***Capabilities Delivered***
• Cross-border logistics & fulfillment programs that ease the direct cross-border shipments of customer orders
• Ability to cross-list assortment across all platforms (like Walmart's Strategic Partners JD.com & Rakuten, and Walmart.com USA itself)
• Ability to list Specialty Stores (e.g., Walmart.ca, Walmart.com.mx)
• Value-add services for sellers (e.g., translation, currency conversion)
• Fulfilled / Ship with Walmart (impacted markets: Canada CA, Mexico MX, China CN, Japan JP; worldwide to follow)

*FY19 Q1 - Launch cross-listed assortment (Shoes in Canada)*
Spent: $XXM 
Committed: $XXM 
Planned: $XXM 

*FY19 Q1 and Q2 - Roll-out new functionality (Export hub, fulfillment, direct shipment model)*
Spent: $XXM 
Committed: $XXM 
Planned: $XXM 

"FY19 Q3 - Launch unified seller experience*
Spent: $XXM 
Committed: $XXM 
Planned: $XXM 

**TOTAL SPENT**: $XXM
**TOTAL COMMITTED**: $XXM
**TOTAL PLANNED**: $XXM

***Business Value:***
• Increased sales due to cross-listed assortment on all Walmart platforms and strategic partners
• Increased global exposure for Walmart specialty stores
• Increased leverage of physical assets 
• Lower cost to serve for fulfilling orders and leveraging our purchasing power

***Technology Value:***
• Fully integrated global marketplace, allowing sellers to integrate once, but list everywhere
• Seamless seller experience, from a single order view to a unified payment
• Further incentive for markets to leverage & standardize, reducing operational costs and capex
• New tech layer (e.g., enabling cross border shipping programs, automated item classification, duties)

Expected Financial Investment & Value
Program Total: $51.1M (FY19: $5.8M, FY20+: $45,2M)

***Workforce Planning/Resourcing:***
Business FTEs: 15
Tech FTEs 40 = Internal FTEs 20 + External 20 (i.e., External Contractors)
% External Resources: 50%


##Financial Model & Assumptions
****”Financial Excel Model”:****
***Financial Excel Model ‘Sheet 1’(Summary)***
Ask ($M)
Cap. ($M):$16.4
Expense: ($M):$36.4
IRR: 1728.3%

*Total Project Metrics:*
Payback (Yrs): - 
Useful Life (Yrs): 5.0 

*Tech Inputs:*
System Savings: $ -
Dev. Labor Cap Rate: 32%

*Highlights:*
Hardware Costs ($M): $ - 
Software Costs ($M): $ - 
Write-Off ($M): $ -
Business Costs ($M): $ -
Total Cost ($M): $ -

*Market General Manager's Inputs:*
Sales Lift/Store ($K): $ 269
Sales Lift %: 1.40%
Incremental GP Rate: 26.0%
Incremental GP Rate: 26.0%
Labor Efficiency: $ -
Inventory Reduction: $

***Financial Excel Model ‘Sheet 2’(Calculations)***
Column 1 Title: ($M) Incremental; Column 2 Title: Initial Outlay: Column 3 Title: FY19; Column 4 Title: FY20; Column 5 Title: FY21; Column 6 Title: FY22; Column 7 Title: FY23
Total CapEx Invest.; -; $ 1.9; $ 3.5; $ 3.6; $ 3.7; $ 3.8
Total OpEx Gross Invest.; -; $ 4.2; $ 7.8; $ 7.9; $ 8.1; $ 8.3
Total Gross Profit Increase; -; $ 194.2; $ 437.5; $ 481.3; $ 529.4; $ 582.4
Int'l Tech CapEx Inv.; -; $ 1.9; $ 3.5; $ 3.6; $ 3.7; $ 3.8
Int'l Tech OpEx Gross Inv.; -; $ 4.2; $ 7.8; $ 7.9; $8.1; $ 8.3
Int'l Tech OpEx Savings; -; $ -; $ -; $ -; $ -; $ -;
Segment CapEx Invest. ; -; $ -; $ -; $ -; $ -; $ -;
Segment OpEx Gross Invest. ; -; $ -; $ -; $ -; $ -; $ -;
Segment OpEx Savings; -; $ -; $ -; $ -; $ -; $ -;
Total Mkt CapEx Invest.; -; $ -; $ -; $ -; $ -; $ -;
Total Mkt OpEx Gross Invest.; -; $ -; $ -; $ -; $ -; $ -;
**Total Market’s Gross Profit Increase**; -; $ 194.2; $ 437.5; $ 481.3; $ 529.4; $ 582.4

***Assumptions***
• **1.Budget:**
- Secure funding for the additional resources 
meet business needs/asks
• **2. Walmart Canada Marketplace's Order Management System (OMS):**
- Deliver some dependencies on Walmart Canada OMS
• **3. Acquired Verticals/Digital Native Brands (Shoes.com et al.)**
- Commitment to support, engage and onboard 
to our platform