The case study shows how Apex Logistics, in California fulfills e-commerce orders in their warehouse using Magaya WMS and scanners.

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1 Do you like our Newsletter? Click Here & Tell us about it. Magaya Insider is Sponsored By Magaya Insurance Services provides concierge-style service for all your insurance needs. Contents How to: Multiple Picks the From the Editor Welcome to the latest newsletter. Version 9.4 of the software is now available. New features include support for fiscal printers such as those used in Panama; enhancements to the WMS Mobile application to speed up receiving in the warehouse, and more. The how-to article this month covers a new feature from software version 9.3 that enables you to create multiple Pick Tasks to send to the handheld scanners that group items so warehouse workers can make picking items more efficient and faster. The case study shows how Apex Logistics, in California fulfills e-commerce orders in their warehouse using Magaya WMS and scanners. Need a quick, free webinar on basic Magaya features? The April webinar schedule is up on the Magaya.com Training page. Select from a variety of topics to learn more about accounting and shipping features in Magaya software. Featured this Month Our Talk With Jose Antonio Perea of Global Gate Mexico Creating Pickup Orders April 2014 Magaya Software YouTube Channel Click here to Subscribe to our channel and keep up to date with our latest training videos New Customers: March 2014 Case Study: Apex Logistics In the Works FedEx Shipping Connection with Magaya Express Link With the next release of Magaya software, Magaya users will be able to send requests directly from their Magaya system to FedEx to request a pickup of items. Make the request from a Magaya Cargo Release, Pickup Order, or Shipment (domestic or international). How it Will Work The FedEx connection in the Magaya Express Link plug-in will give you the option to use your FedEx account and rates or sign up for a new account if you don t have one. When you create a Pickup Order, Cargo Release or Shipment in your Magaya system, the system generates a list of rates to choose from. Other options will include printing the labels and selecting notifications. You and your customers can track the packages online 24/7. Express Link also enables you to handle returns. The FedEx connection in Magaya Express Link will be available in Magaya software version 9.5, estimated for late April/early May release. continue

2 the MagayaInsider page 2 How To Multiple Picks If you fulfill many small orders for many customers, the new Multiple Picks feature lets you create many tasks from a list of transactions instead of making individual Pick tasks one by one. This is useful so you don t have to create many tasks that send one employee across the warehouse to one location repeatedly to get one item at a time for different orders. The Multiple Picks process will group the orders by location so the user can go to one location and get all the items. This process will not break an order. For example, all the items ordered in one Sales Order will be in one Task. This process can be done from the list of Cargo Releases, Sales Orders or for multiple shipments. A wizard guides you through the steps. This feature is available in Magaya software 9.3 and higher combined with the use of Magaya WMS Mobile handheld scanners. Steps: Let s show how it works by using some Sales Orders. These Sales Orders have Cargo Releases created for them. You can begin in the SO list or the CR list. Let s begin in the SO list. If you select SOs from the list, the wizard opens and takes you to a screen to select the destination. You can select multiple SOs from the list or start the process from the Actions button Create Picking Tasks. A wizard opens, which also gives you an option: If you select multiple SOs from the list, right-click on them and select Create Picking Tasks from the pop-up menu. previous continue

3 the MagayaInsider page 3 How To If you do NOT select SOs from the list, the wizard opens and takes you to a screen that enables you to make the selection inside the wizard. Then click Next. Next, specify the destination location. Next, specify the capacity of a task. If you limit how much weight can be in one task, then the system will create multiple tasks to distribute the weight across tasks. In the next screen, select the SOs. In the next screen, the system generates the tasks for you to review. Click Finish to save the tasks and complete the wizard. The system creates the tasks for you, sends them to the handheld scanners, and creates a Movement document in the Cargo Movements list. Now users can complete the tasks with the handheld scanners. Next month, we ll see how to assign a cart or forklift as a mobile location. For more details on Pick Tasks, please see the section Release Cargo with WMS Mobile Devices in Chapter 18 of the Magaya Supply Chain Solution Operations Manual. previous continue

4 the MagayaInsider New Customers Magaya Corporation welcomes the following 23 new members who joined the Magaya Network in March 2014: (Roll your mouse over the names to see their location in the map) 1. AET Shipment, Houston, Texas 2. Bridgestone International Shipping, Houston, Texas 3. Capital Pacifico, Panama City, Panama 4. CIF 2, Miami, FL 5. Dacotrans Internacional, Tegucigalpa, Honduras 6. Distribuidores de Pescados y Mariscos de la Sabana, Bogota, Colombia 7. EZ Logistics Ltd., Oceanside, NY 8. Florida International Enterprises (II), Miami, FL 9. GLS Logistic Solutions LLC, Miami, FL 10. J&P Group Inc., Anaheim, CA 11. KIT Foods Inc., Dover, Delaware 12. Orange Freight Forwarder, Barranquilla, Colombia 13. Premier Air Cargo Logistics, Jamaica, NY 14. Priority Logistics S.A., Zona Libre, Colon, Panama 15. Ranahan Solutions, LLC, Houston, Texas 16. Richman Global Agency LLC, Miami, FL 17. Servicios Global Logistics Panama S.A., Panama City, Panama 18. SLG SRL Solution WareHouse, Santa Cruz, Bolivia 19. Trademill Group, Almaty, Kazakhstan 20. Transportes Internacionales Nazel SA, San Jose, Costa Rica 21. USA Cargo Services, Marietta, GA 22. World Shipping America Inc., Englewood Cliffs, NJ 23. XL Worldwide, Doral, FL In the United States In In Canada Texas AET Shipment, Houston Bridgestone International Shipping, Houston In Florida In Central America CIF 2, Miami Florida International Enterprises (II), Miami ADLI GLS Group, Logistic Mississauga Solutions LLC, Miami Richman Global Agency LLC XL Worldwide, In Doral South America In New York Capital Pacifico, Panama EZ Logistics Ltd., Oceanside City, Panama Premier Air Cargo Logistics, Jamaica Dacotrans Internacional, In New Jersey Tegucigalpa, Honduras World Shipping America Inc., Priority Logistics S.A., Zona Englewood Libre, Colon, Cliffs Panama In California Servicios Global Logistics Distribuidores de Pescados J&P Panama Group Inc., S.A., Anaheim Panama City, y Mariscos de la Sabana, In Delaware Panama Bogota, Colombia KIT Foods Transportes Inc., Dover Internacionales Orange Freight Forwarder, In Georgia Nazel SA, San Jose, Costa Barranquilla, Colombia USA Rica Cargo Services, SLG SRL Marietta Solution Ware- House, Santa Cruz, Bolivia Be sure to join us on our LinkedIn Group: The Magaya Network Community! Click here to join now! In Asia Kazakhstan Trademill Group, Almaty

5 CASE STUDY: Apex Logistics Logistics Provider Moving into E-Commerce, Apex Logistics receives imports from China daily and manages the storage for an increasing number of customers who have online stores and use Apex s Los Angeles warehouse to keep the inventory. Using Magaya WMS has increased accuracy and efficiency in the Apex warehouse., Our staff worked very late one night during the recent Chinese New Year to make sure the customer s needs were met and everything was ready to go the next morning. That s the kind of customer service we pride ourselves on. Ms. Shu-Chun Tsai, Apex Logistics

6 Apex Logistics Introduction Apex Logistics is one of the freight forwarding companies that sees the potential in servicing the growing e-commerce industry. To accommodate this new type of customer, the owners of Apex purchased a warehouse, and their team evaluated warehouse management systems (WMS). Ms. Shu-Chun Tsai who works directly with the managing director, Elsie Qian, is responsible for software and meeting the EDI needs of their customers. Ms. Tsai discussed the company, their operations, their choice of Magaya for a WMS, and their future plans. At a Glance Apex Logistics Industry Logistics Provider Solution Magaya WMS and WMS Mobile Managing Imports into Los Angeles Apex Logistics International headquarters was formerly located at LAX, but their new warehouse is in Compton, which is close to the airport and Long Beach. They are a full service logistics provider with a strong focus on high-tech, garments and perishables. For those clients who require U.S. Customs services, Apex operates an in-house U.S. Customs Brokerage Division. As a part of a larger group based in China, Apex benefits from the volume shipping the group does and the carrier rates this gives them. This is a competitive advantage especially during the peak season leading up to the Christmas holidays and during the heavy snows and weather delays in the Midwest U.S. states in the winter of 2013/2014. Another challenge for Apex arises during the Chinese New Year, Ms. Tsai explained. Manufacturing plants across China typically shut down for about two weeks as people travel from the industrial towns back Apex Logistics is a freight forwarding company based in Los Angeles, CA, that is part of a larger group that is headquartered in China. The group includes Wuxi CTS Xinqiao International Forwarding Co. and Beijing Global Sky-Horse (GHS). Apex Logistics is a licensed OTI and NVOCC and are members of IATA. Apex also has offices in Chicago, Miami, New York and other US cities. Services include LTL, LCL, trucking, air and ocean, warehousing and customs. home to celebrate the festival. Without goods to ship, cargo airlines don t fly. There are fewer flights during the holiday because there aren t many shipments, so airlines cancel flights. Then, as everyone returns to work, there are a lot of shipments waiting so it s hard to get a flight after the holiday as the supply chain tries to catch up. The ripple effect reaches all the way to warehousing in the U.S. For example, this year we stayed late, waiting to receive cargo. Over 20,000 kilos of cargo arrived at our warehouse about 11 pm. The customer needed it repacked to go out at 9 am the following morning. Our staff worked very late that night to make sure the customer s needs were met and everything was ready to go the next morning. That s the kind of customer service we pride ourselves on. Improved Receiving Operations The day-to-day operations of the warehouse are the responsibility of Jason Chen, the warehouse supervisor. Apex started using Magaya WMS in Prior to that, they received cargo by manually entering item data. When inventory was counted to compare it with the customer s packing list, the numbers didn t match. If three people counted the same inventory, we got three different numbers, Mr. Chen said. Since they started using the Magaya WMS Mobile bar code scanner, Mr. Chen said. We have better inventory control. We wanted to eliminate human mistakes in the warehouse that caused discrepancies in the shipment information. After implementing the scanners, there has been significant improvement in the receiving process. Now I have a report I can present to the customer, and we are 100% certain that our report is correct. The receiving process is faster and more accurate because the SKU s are entered in advance of the cargo arriving, Mr. Chen said. When the cargo arrives, the warehouse workers just scan the package bar codes to receive the items, and the system updates the item status as Received. Then I compare what we scanned to the customer s list to verify it s correct. We also scan bar codes when we receive items from FedEx and UPS and save the tracking number.

7 Apex Logistics Expanding into E-Commerce An example of the new direction into e-commerce that Apex is taking is the pick and pack they do for one of their customers, a chef who creates canned buttermilk and sells it online. The cans are stored in the Apex warehouse. Every day she sends us a list of customer orders, and we fulfill the orders, Ms. Tsai said. The cans arrive in large boxes of 12 cans each, but the online customers usually buy only one or two at a time. So Apex purchased smaller boxes to package the items for shipping. Mr. Chen explained the process: We pick the cans and repack them into the small boxes. We weigh them and apply the label. We use the Cargo Release function in the software to ship out the orders. The system keeps the inventory updated which the customer can see. Next we print the Cargo Release and put it in the package for the customer. Finally we send the packages via FedEx or UPS to the customers, most of whom are in the U.S. I use it to keep track of everything in the warehouse. I know where everything is and how many pieces we have left. I also like the fact that I can pull out data in XML. Not all my customers want to go to LiveTrack or see a PDF; they want a spreadsheet. Magaya enables me to do that for my customers. Another advantage of technology to meet customer needs is the available API offered by Magaya for Electronic Data Interchange (EDI). Many of our customers want EDI, and I know Magaya has that, so I m very confident of our ability to offer that to our customers, Ms. Tsai said. Business Expansion Besides offices in Los Angeles, CA (which is using the Magaya system), other offices also using Magaya include Chicago, IL and Miami, FL. They also have offices in New York, NY; San Francisco, CA and Seattle, WA. We are looking forward to the FedEx integration into Magaya software because we don t want too many different software programs. We want to keep it simple and easy for our customers, Ms. Tsai said. Magaya is enhancing its plug-in called Express Link by adding a connection with FedEx. The plug-in is currently connected to UPS for domestic pickups. With the plug-in, customers are able to use the rates they have contracted with FedEx or UPS to arrange pickups, print labels and manage returns. We see the potential in the e-commerce industry, Ms. Tsai said about growing Apex. We are expanding by adding a variety of services. If you only offer freight forwarding services such as air freight, there are only so many customers to serve. Since we added in-house services such as the warehousing, we have gotten more e-commerce customers. We also see the potential for adding a courier service to handle small packages. Giving Customers the Information They Want We send the Warehouse Receipt to the customers for every shipment received and a Cargo Release for each release, Mr. Chen said. My goal for the system is to have it 100% accurate when compared to what s inside the warehouse. The Magaya system is very useful to me because During the first quarter of 2014, Apex expanded its office network in key US markets in Dallas, TX, and Apex began full service logistics operations in Mexico. The Magaya Los Angeles office serves Apex Logistics by providing training and local logistics advisors. Ms. Tsai and Mr. Chen both emphasized the value of a local office to them. This office is in our time zone, so that helps us when the Miami office is closed, Mr. Chen said. I appreciate the support from Magaya, she continued. They really worked with us when we were first using the software, and that made me decide that this is a company I want to work with. In addition to the software features, I want the customer service. I also see how we can grow together. All rights reserved. Magaya, the Magaya logo and all products are all trademarked unless specifically specified as of a third party. Copyright 2014, Magaya Corporation info@magaya.com magaya.com