OARA Transportation Committee Best Shipping Practices Workshop Overview. March 29, Presented by: Martha McGregor

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1 OARA Transportation Committee Best Shipping Practices Workshop Overview March 29, 2008 Presented by: Martha McGregor

2 Best Shipping Practices Introduction In an effort to minimize claims, the OARA Transportation Committee has been meeting to identify best practices for damage prevention when it comes to shipping and packing for the Cardinal/Lynx distribution system. The major products involved in damage claims were identified and recommendations made for packaging and preparation techniques to mitigate problems as well as packaging material options to help reduce our collective claims problems. Purpose of Workshop Meet with the employees to have a hands-on session to present the Committees findings and have an open discussion for their input on what they think works and doesn t work with shipping recycled parts today to ensure a Win Win Win result.

3 Process Overview Presentation to employees at Trade Show March 28-29, 2008 Group discussion good and bad packaging Good, better, best approach for shipping Damage Risk Control Loading/unloading -process involved Packaging -review function, design, markings, resources Analysis identify weak areas Investigate practicality and cost Ensure consensus between Cardinal & OARA Planning -modify/change; Educating & Training Implement

4 Economic Impact Damage Claims Summary : March/07-February/08 % $ % Door % $22, % Taillight/headlamp Assy/Panel % $4, % Bumper/Fender/Grille % $3, % Tailgate/Hatch % $7, % Trunk lid % $3, % Hood/Deck lid/roof % $6, % Mirror % $1, % Transmission/Engines 8 2.9% $3, % Frontend/Quarter Panel/Truck box/rearclip10 3.6% $8, % Miscellaneous(items 7 or less) % $4, % Total % $67, % This represents the dollar amounts of the claims paid out. Other areas of cost Administrative, Sales, Operations, Prevention

5 Product Overview Five Product Categories Doors, hoods, tailgates, etc Bumpers, fenders Skidded freight-engines, transmissions, etc Boxed freight-headlamps, taillights, mirrors, etc Oversized freight-truck boxes, front ends, quarter panels, etc

6 Packaging Choice Consideration of strength of container Inner & outer packaging constraints Number of times goods are handled Ability to withstand movement through courier system

7 Packaging Supplies Metal strapping is best which is rated at 1200 lbs (nylon/plastic strapping can fray & snap). Polyester straps at strengths of 990 to 1600 lbs or corded woven straps ¾ x 2100 x 900 lbs are also acceptable. Rolls of corrugated cardboard Rolls of bubble wrap Rolls of foam packing Shrink wrap Cardboard edge protectors Engine & Transmission skids Spruce wood for made to order skids nd 2 grade 2 x 4 lumber to build crates

8 Doors Hoods Tailgates etc. over 50 lbs Skidded crates are to be made to the proper size for the item and to the width & height of a pallet truck (28 inside & 36 outside) to fit underneath and prevent tipping. Special slots top and bottom are made to secure the door in place.

9 Doors Hoods Tailgates etc. over 50 lbs Item is placed into skidded crate ensuring there is protection to the bottom of the item. The crate is then finished by adding the proper material to the item being shipped to enclose, secure and protect the bottom from forklift damage. Bubble wrap entire door (window should be down if possible).

10 Doors Hoods Tailgates etc. under 50 lbs Use extra padding foam and/or corrugated cardboard around any edges that may suffer from damage during shipping to ensure well reinforced. Wrap entire door with corrugated cardboard.

11 Bumpers Fenders Depending on the individual item, product may be packaged or crated. When packaging wrap in bubble wrap and tape providing extra protection to ends using corrugated cardboard. Items are then shrink wrapped and /or made to fit box. Note: Committee suggests looking into cost of corrugated with scores in order to fold and fit to individual item.

12 Skidded Freight Engines Transmissions etc. Choose the proper skid (unbroken) for the size of the item being shipped and residual drainage containment (proper engine & transmission skids are preferable). Note: Committee recommends transmission converter pans be strapped/bolted in or shipped separately. Place item onto skid ensuring centered for proper weight distribution.

13 Skidded Freight Engines Transmissions etc. Tie down any protruding pieces and strap item to skid using metal strapping, cross strapping and shrink wrap.

14 Boxed Freight Headlamps Tail Lights Mirrors etc. Choose a box slightly larger than the item being shipped and place bubble wrap in bottom of box. Wrap item with packing foam, bubble wrap and tape and place in box. Place additional packing material (bubble wrap, newspaper, etc) around the item and in the corners to secure the item in place to completely fill the box preventing movement during shipping and provide strength required to sustain weight of other freight.

15 Oversized Freight Truck Boxes Front End Quarter Panels All freight is to be specially crated to fit the item being shipped. Have the same size skid on the top and having support beams on the sides. No overhang on the skid with the freight; the skid needs to be bigger than the product by at least 1-1/2 inches all the way around. Having placement for the forks that are reinforced is also a major benefit.

16 Courier Distribution Process Pickup driver arrives at customer location. Freight is scanned by the driver - logging the items being shipped and the time he did the pickup. Freight is loaded onto pickup vehicle. Upon arrival at the pickup depot the driver pulls up to one of two dock doors designated for unload of conveyable (boxed) items. A conveyor roller belt system is placed up into the truck. Freight is unloaded onto conveyor system. Load bars and straps are used to secure freight.

17 Courier Distribution Process As freight comes down the roller belt off of the truck, it is directed onto one of the single-level multi-line conveyor belts. Freight moves down the multi-line conveyor system to be scanned at the pickup depot. The conveyor system is four feet high and freight should be well packaged should the occasional item fall. Side edges on conveyor system are three inches high and five inches high around bends of the system.

18 Courier Distribution Process Freight is then directed down the single-line for sortation. There are cages/ropaks as well as sorters down one side of the line designated for each delivery depot. Freight is scanned logging the cube & reweigh information. The postal code from the shipping document is entered into our routing system and selected customer specific. The routing system prints a sticker identifying the delivery depot and driver and is affixed to the shipment.

19 Courier Distribution Process Local freight, that does not have to travel to a different depot for delivery, moves on down the line and loops back up. Sorters then place items in cages designated for each delivery route. Once all inbound freight has arrived from pickup vehicles and linehauls from other depots, each delivery driver scans & loads for delivery. Freight is placed in cages or ropaks as it comes down the line. Whenever possible heavier freight is placed at the bottom and lighter items on top however quite often this is not possible. Freight must be well-packaged to sustain compression weight of other freight.

20 Courier Distribution Process Mail is kept separate on the pickup & delivery vehicles. Mail is sorted into bags destined for other delivery depots and bins for local delivery driver. Non-Conveyable freight is unloaded & sorted separately into cages. Non-Conveyable items are unpackaged product such as steel or other items that can potentially damage other freight; mufflers, gas tanks, & other auto parts that are not packaged; package freight with protruding metal parts; long tubing ie 10ft pipes, steels rods, springs etc.

21 Courier Distribution Process Load bars are used for oversized skidded freight. Cages, ropaks, and skidded freight is loaded onto trailer via forklift. Consideration to packaging should be taken with this in mind to avoid any possible damage while loading. Cages, ropaks, and skidded freight is loaded onto trailer for transport to delivery depot Once all freight is loaded onto linehaul it travels to the delivery depot. Freight is unloaded, scanned, sorted, and then scanned & loaded onto delivery vehicle. Freight is scanned on delivery to customer. Customers are encouraged to come out for a tour of the Cardinal operation at any one of our depots. Please contact Martha McGregor, Account Manager to schedule.

22 Best Shipping Practices We would like to especially thank the Committee for their commitment, participation, hard work, and time contributed to this project. Committee Members Rich Ulrich Dom s Auto Recyclers Rob & Ron Mollicone Hilltop Auto Recyclers Don Fraser Aadco Auto Recyclers Adrian & Andrew Sembay North Queen A/R Steve Hanas 400 Auto Recyclers Claudio Russo & Jay Carmichael Carcone s Auto Recyclers Martha McGregor Cardinal Couriers Ltd.

23 Proper Shipping and Claims Practices & Policies Cardinal Couriers/Lynx (CCL), as your shipping partner, has been making advances over the past several years to improve efficiencies and provide an on time service with a focus on damage reductions. All members of OARA should understand how CCL works as your carrier of choice. All freight moves through the CCL system on several linehauls ie: o For Windsor to Ottawa, freight transfers through our system a minimum of 6 times o All freight must be packaged to handle mechanical moves between linehauls and pickup and delivery drivers o Proper packaging must be adhered to o Boxing, skidding and strapping of freight is a must Large items such as clips must be called in to your local CCL branch or main call center in advance. Remember if it requires a tow motor or physical assistance, we cannot pick it up if your closed. All freight must travel on a waybill and properly addressed labels Items too big to be moved by one man must travel on skids (we use pump trucks etc to pickup and deliver) All items containing liquid must be emptied of product before movement. Residual is acceptable but must be wrapped in plastic in order to contain spills. Transmissions and engines must be moved on proper skids. OEM transmission cases are the preferred form of shipping containers All heavy items must be strapped to skids with acceptable forms of strapping. Plastic straps are not acceptable as they cannot contain the movement or support the weight Refer to the CCL presentation CD made at the March 2008 OARA convention for examples of proper packaging and protection. Copies of the CD are available by contacting CCL or OARA. For policies relating to pricing, cubing, delivery, fuel surcharges, dangerous goods, etc, please refer to our website at Freight Claims Policy The receiver must notify CCL any damaged goods by phone, fax or and they must do so within 24 hours of freight being delivered and prior to any transportation or repair work to be done. *NOTE: If a product is sent out for repair prior to reporting the damage to CCL, we will not honour the claim. For any damaged goods that are repairable by the receiver, detailed digital photos so we can see the packaging in conjunction with the damage, may be acceptable. Please contact CCL for confirmation. All damaged goods that are not repairable by the receiver, with the exception of front ends/skids, are to be returned to CCL at no charge, with it s

24 original packaging for inspection by our claims clerk to make recommendations for future packaging & handling. If a claim is not honoured in full then the item will be returned to the original shipper at no charge. Front end/skids will be inspected by a CCL Rep at the point of delivery. The receiver should also notify the shipper at the same time. Notification is not the same as initiating a claim that is the shipper s responsibility, but only the receiver knows that some level of damage has occurred. The claimant is the member who ships the product they are the ones with the most control over wrapping and packaging. The receiver should cooperate with CCL and the shipper in any investigation. The final settlement of the claim by both parties must be finalized within nine (9) months of the delivery date. Certified true invoice showing shipper s product cost (without markup) must be presented with the claim package. If an invoice is not available (ie, the part is not a brokered part but off of a vehicle in inventory) then a statement of the value of the part must be supplied. Demonstrating that a replacement part is not available at a reasonable cost may be required. CCL reserves the right to negotiate a value based on the proposed selling price of the part, a suitable replacement value, and the cost of the part. Approved claims will be honored at $2.00 per lbs to a maximum of $100 unless a higher declared value is previously stated on the waybill and insurance charges paid. Original copy of waybill or shippers manifest must be provided to CCL with the claim package. Freight containing glass such as car doors and windshields are shippers own risk. Once a claim has been paid in full it becomes the sole property of CCL and is to be recovered unless prior agreement has been arranged. The hold back of shipping charges is not an option to settle a claim or any part there of. If the claimant wishes to he or she can include the shipping charges in the claim for reimbursement. Appeals process to claims settlement should be taken up with Claims department but once a claim cheque has been cashed the claimant then relinquishes all and has accepted the claim as settled and final. Declared values are acceptable up $5,000 however they must be shipped prepaid. Collect will not be accepted. Failure to follow or accept these policies will result in members shipping at own risk. Please sign below to acknowledge receipt of these policies and procedures, and that you agree to abide by these terms and conditions as legal representative for your company. Martha McGregor Account Manager Date For: Date 11/28/08