Your Trusted Supply Chain Partner. We Do. We Consult. We Teach.

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1 Your Trusted Supply Chain Partner We Do. We Consult. We Teach.

2 Your Trusted Supply Chain Partner LeanCor exists for the sole purpose of supporting our customers to build and sustain supply chain performance. We are committed to continuous improvement and fully recognize LeanCor s value is measured by real results for our customers. As an operator and thought leader, we relentlessly try to optimize those processes that add value and eliminate those that are waste. Robert Martichenko, CEO Training and Education Hands On Consulting Logistics Services We Teach. We Consult. We Do. Unlike other third party logistics providers, LeanCor offers a unique combination of training and education, hands-on consulting, and logistics services. This integrated portfolio of services helps organizations eliminate waste, drive down costs, and instill a problem-solving culture across their supply chain. Customers leverage this transformation to gain improved inventory visibility and logistics control while achieving process improvement and lead time reduction to deliver peak operating performance. With locations in the US, Canada, and China, LeanCor is changing the game in third party logistics services.

3 LeanCor s Unique Approach As a trusted partner, LeanCor is truly unique with our unwavering approach of applying lean principles to the supply chain management process. These are the same lean principles that have made successful manufacturers more efficient and effective in their operations. By focusing on supply chain engineering and network optimization, continuous process improvement, and total cost of fulfillment, organizations can achieve: Visibility - material, information and demand flow Control Stability and the elimination of variation and waste Standardization and the creating of baselines from which to improve Quality at the source and error proofing of processes Flow and the creation of velocity and lead time reduction Performance cost reduction, margin improvement and better return on supply chain assets Return on Investment Increased Return on Investment Profit Reduced Investment Revenue Cost Increased Sales Revenues Reduced Cost of Lost Sales Reduced Variable Costs Reduced Fixed Costs Reduced Working Capital Reduced Assets Increased On-Time/Complete Delivery Reduced Lead Time and Variability Increased Forecast Accuracy Increased Customer Responsiveness Increased Inventory Availability Reduced Supply Chain Malfunction Reduced Planned Cost Reduced Unplanned Cost Reduced Inventory Carrying Cost Reduced Manufacturing Cost Reduced Warehousing Cost Reduced Procurement Cost Reduced Materials Cost Increased Productivity Reduced Logistics Asset Cost Reduced Logistics Technology Cost Increased Inventory Turns Increased Inventory Turns Reduced Cash-to-Cash Cycle Increased Logistics Assets Need Implementing lean principles in your supply chain will create a culture of problem solvers who will ultimately decrease logistics costs, reduce inventory levels and associated inventory carrying costs, all while increasing asset utilization, supplier fill rates, and overall customer service.

4 Lean Supply Chain Guiding Principles 1. Make consumption visible throughout the supply chain 2. Reduce lead time to enable pull and reduce inventory 3. Create level flow to reduce variation and enable stability 4. Use pull systems to reduce complexity and overproduction 5. Improve flexibility and reduce inventories 6. Collaborate and use process discipline across the supply chain 7. Focus on Total Cost of Fulfillment 8. Eliminate all waste so that only value remains Where s the pain in your supply chain? Improve Process Visibility and Benefits Logistics As professionals in logistics services, including the development and operation of logistics networks, LeanCor is delivers pleased outsourced to provide excellent logistics compensation services that and provide benefits, improved including: medical, inventory dental visibility and vision and insurance logistics as control. well as paid sick leave and vacation. We believe that we are only as good as our Our people. services Therefore, cover providing all traditional our team areas members of with transportation outstanding and benefits warehousing is of upmost management, importance. LeanCor inventory, provides: materials and supplier management. However, we approach outsourced logistics with a much higher level of discipline to process when compared to other third party operators. Through LeanCor s relentless pursuit of continuous improvement, our customer operations are fundamentally driven to a new level of performance. LeanCor has changed the game in traditional supply chain management. We ve developed customized, webbased technology to drive lean through the supply chain and logistics functions, placing network visibility and ownership back into our customer s hands. Through visual management, real-time information flow, KPI reporting and problem solving, we achieve optimal supplier, logistics service provider, and customer performance. Logistics Services Include: Inbound/Outbound Materials and Supplier Plan For Every Part (PFEP) Just in Time (Flow) Inventory Material Planning and Purchase Order Supplier Shipment and Pick Up Scheduling Supplier Collaboration Performance Receiving Schedule and Trailer Yard Packaging Design and Program Technology and Business Analytics

5 Control Services Network Design Carrier Development and Selection Core Carrier Program Development Carrier Performance Static Route Design and Mode Planning Daily Dynamic Route Design Routing and Shipment Execution Web Based Visibility - Track and Trace Technology and Business Analytics Freight Claim Freight Bill Audit and Pay Warehousing (DC) and Value Add Services Facility Design and Start-Up Warehousing and Inventory Distribution and Order Fulfillment Cross-Docking and Repack Operations Kitting Sequencing Sub Assembly Factory Internal Conveyance Returnable Packaging

6 Carl Zeiss Vision realized cost reduction of 19% total labor, 63% overtime, and 11% total operating expenses. -Sue Armstrong, Carl Zeiss Vision Hands-On Consulting Achieve Supply Chain ROI Today s complex supply chains require vision, strategies, and innovative techniques to create optimal performance. Organizations leverage LeanCor Consulting to develop vision and strategy deployment plans for improvement in all supply chain functions. These include transportation and warehousing, inventory and materials management, and the implementation of lean principles across the entire value stream. LeanCor professionals are innovators in supply chain management and logistics processes while grounded in operational reality. We focus on elements of speed, cost, quality, and delivery. Client programs provide tangible results, ultimately achieving benefits of total logistics cost reduction, working capital improvements, supporting manufacturing efficiencies, and optimization of material and information flow. Consulting services include: ROI Assessments End to End Supply Chain Customer Service Warehousing Inventory Materials Internal Conveyance Supplier Performance Lean Op-Ex Program Strategy Deployment People Development and Applied Learning Process Based Improvement Value Stream Based Improvement Materials Material Information and Flow Design Plan For Every Part (PFEP) Development Material Replenishment Design Material Planning and Procurement Supplier Performance Improvement Sales and Operations Planning Total Landed Cost Logistics Planning and Design Outbound Network Design Inbound Network Design Warehouse (DC) Layout and Design Current State Evaluation Future State Vision Implementation Road Map Successful Project

7 LeanCor has been able to lead our organization through a lean transformation. They have been able to interpret our vision and support our journey through an extensive learning and development plan to achieve the culture that we are truly striving for. -Lisa Kendrew Smith, Manager of Business Re-Engineering at SCI Group Training and Education Prepare Your People As a globally recognized thought leader in lean supply chain principles and practices, organizations rely on LeanCor to deliver proven discipline and methodologies for implementing continuous improvement. Customers leverage LeanCor Training and Education offerings to develop organizational talent, which ultimately leads to achieving desired supply chain performance. Results are visible throughout the organization by 1) transforming the culture into one of problem-solving and 2) teaching lean leadership skills that permeate throughout the organization. Our hands-on education approach ensures active participation, leading to better comprehension, retention, and most importantly, applied capabilities. Courses range from the basics of Lean Principles, Problem Solving, Six Sigma and Operational Excellence, to Lean Supply Chain or more advanced Lean Leadership training. All training and education may be facilitated in both public or private settings. Courses include: Lean Supply Chain Lean Problem Solver Lean Supply Chain Professional Lean Leadership Train the Trainer Custom Programs Lean Six Sigma Green Belt Black Belt Train the Trainer Project Coaching Blended Learning

8 Objectives of a Lean Supply Chain Supplier Visibility Stability Standardization Quality at the Source Flow - JIT - Pull Problem Solving Collaboration Strategic:: Right Price Right Quality Right Source Right Service International Domestic Inbound Crossdocking Trailer Yard We captured more than $85,000 in phase one by reducing cross shipments and cycle inventory. In phase two, we expect to capture additional savings of $436,000. Lean Manufacturing Inter Company Distribution Center Outbound Customer Focus Fortune 500 Customer, End to End Value Stream Initiative Tactical: Right Product Right Quantity Right Time Right Place Contact Us to Get Started Headquarters/Operations Center LeanCor, LLC 7660 Turfway Road, Suite 200 Florence, KY Ph: Fax: LeanCor Canada, Inc. 221-A McIntyre Dr. Kitchener, ON N2R-1G1 Ph: Fax: Visit our blog: leancor.com If you are in the Cincinnati or Northern Kentucky area and are interested in touring our Operations Center, we welcome you to call us to schedule a visit.