MSC Industrial Direct Co., Inc.

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1 MSC Industrial Direct Co., Inc. October 7, 2014

2 Introduction Kim Shacklett, Vice-President Metalworking Sales, Southfield, MI 8.5 yrs. MSC 23 yrs. industry experience Dave Purdy, Director Sales Training, Melville NY 12.5 yrs. MSC 18 yrs. industry experience Kevin Kaptur, Metalworking Product Training Manager, Southfield, MI 8.5 yrs. MSC 20 yrs. industry experience

3 Objective/Agenda Objective: To Share MSC's unique point of view on why we chose to partner with Tooling U - SME and how we continue to maximize the utilization of the program from start to finish. Agenda: MSC Overview & Landscape Training Integration / Why Tooling U? The Tooling U Journey Discussion

4 MSC Overview MSC is a value-add distributor of solutions, services and products that help our customers reduce their overall supply chain costs and improve their operational efficiency. BY THE NUMBERS 1941 Year founded $2.5B In fiscal 2013 revenue 1,000,000 Industrial products #1 99.9% #35 U.S. metalworking distributor Next-day delivery on qualified orders Global 500 ecommerce Engine 5 Fulfillment centers STRONG CONSISTENT GROWTH 6,000+ Trained associates As we grow, we continue to invest in our business to deliver innovative solutions and offer expertise that enables customers to drive productivity, efficiency and savings.

5 Landscape Customer Prior to 2008 Products, Delivery & Price Customer Services and Solutions Customer Service/ Relationships

6 Evolution Customer Challenges Too Many Suppliers Too Many Purchase Orders Difficult to Drive Compliance Operationally Expensive Non-Core Activities Excess Inventory Too Many SKUs Customer Service and Delivery Issues Time Consuming to Manage Data Collection and Management Freight and Handling Costs Disruption of Supply

7 Evolution Customer Challenges Too Many Suppliers Too Many Purchase Orders Difficult to Drive Compliance Operationally Expensive Non-Core Activities Hiring, Training & Retaining Too Many Skilled Workforce SKUs Excess Inventory Customer Service and Delivery Issues Advanced Manufacturing & Application Support Time Consuming to Manage Data Collection and Management Freight and Handling Costs Disruption of Supply

8 Changing the Game Supply Chain Efficiency The Future is Now Innovative Technology Customers Productivity Up Cost Down Associate Development is the Key Advanced/ Customized Solutions & Services Forward Looking Technical Capabilities Associates are MSC s greatest asset. It is our duty to arm them with the proper talent development plan to ensure success in supporting our customers needs and adjust as changes occur.

9 Dave Purdy Director Sales Training

10 MSC Training Sales Skills Training Customized Consistent HR Training Product Training Effective Associates Agile

11 Current State Learning Opportunities The Industrial distribution and manufacturing landscape is changing very rapidly and will continue to change at an accelerated pace and our sales organization will need to keep pace with these changes to support our customers. Strategic Critical Thinking / Current Trends Time Management / Information Retention Timely Leadership Reinforcement Accessibility

12 Training Support Consistent Measure Effectiveness Manageable Customizable Product Training Scalable What could Tooling U help us solve for? Speed Innovative

13 Kevin Kaptur Metalworking Product Training Manager

14 MSC Tooling U Journey Launched in Program Specific Licenses Driven by Product Training 2010 add 100 more licenses Not integrated into a LMS

15 MSC Tooling U Journey January 2012 site partnership agreement signed All associates at MSC now have access

16 MSC Tooling U Journey Life is a marathon and not a sprint. Endurance is the key to success.

17 MSC Tooling U Journey Communication Plans Enrollment Plans Customized Groups Assessment Testing Customized Curriculums Customized Reporting Expansion Tooling U Tooling U SME Knowledge Edge New Hire Process Competency Dashboard Reward Program Customized Assessments Administration Customized Content

18 MSC Tooling U Journey Communication Plans Onboarding Ongoing Driving Participation

19 MSC Tooling U Journey Assessment Testing / Customized Curriculums/ Customized Assessments Customized Content Consistent Scalable Measure Effectiveness

20 MSC Tooling U Journey Competency Dashboards Individual Tracking Awareness

21 MSC Tooling U Journey Successes Thousands of associates enrolled and courses completed Knowledge validation through comprehensive customized assessment testing Usage of customized reporting Execution of the repeatable onboarding process Implementation of customized curriculums Execution of a detailed communication plan Integration and usage of competency dashboards Development and launch of recognition programs

22 MSC Tooling U - Journey Growth Opportunities Future curriculum development raising the bar Keeping communication plans fresh Integration of Tooling U SME Knowledge Edge Site administration build out Additional rewards and recognition

23 MSC Lessons Learned Tooling U Client Success Managers / Sales People Leverage the knowledge of the Tooling U team Use their knowledge to help develop your program Communication - Key to Success Champions in the business for the program Executive sponsors / managers / supervisors on board Tell associates the WIFM (What's In It for Them) Listen to associate feedback Communicate successes / constant reinforcement (internal marketing plan) Make it a pull instead of a push program Don t be afraid to take some chances If you feel it was a mistake - correct it quickly Communicate mistakes and listen to feedback Focus on Your Customer!!!

24 MSC has made an investment in me. Tooling U has enhanced my knowledge and skills. I have a higher level of confidence that helps me when working with my customers on problem solving specific applications. My customers are seeing the benefits. It helps both of us become more successful.

25 Thank You

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