- The document discusses VMI, a 100% employee-owned industrial supply company that provides vendor-managed inventory services for fasteners and other products. - It highlights VMI's quality capabilities including an in-house inspection lab, forecasting software to reduce stockouts, and high customer quality ratings. - VMI aims for continuous improvement through annual kaizen events and has goals to reduce errors, increase warehouse productivity, and enhance their online systems and services.

1. VMI Presentation

2. About us Quality Capabilities One of our five, salaried VMI managers, Ed Breck

3. 28 years old; $16 million in sales Commercial, mil-spec, and two master distributor divisions RoHS and DFARS compliant parts available 100% employee owned Members of major associations Six, $100 Service Guarantees Emphasis on technology and flexibility About us

5. Commercial Mil-spec (L to R) Linda Smith, Carol Peters, Tara McGahan, Jacquie Kostanski, Gayle Withstandley, Alana Williams (missing: Tony Vesci) Marc Dionne

6. Founded in 1998 Sells only to distributors Caters to fastener, power transmission and industrial suppliers Uses same system as Atlantic Collars and Couplings master distributor

7. Sells worldwide to other fastener distributors On track to earn over $1.5 million in revenues this year Variety of products Fastener master distributor HeliCoil Tangless® inserts SPS Flexloc nuts

8. 100% Employee Owned - ESOP ESOP’s vs. non-ESOP’s… Are nearly 16% more likely to stay in business 1 Are 5.3% more productive on average 2 Remain independent longer 1 Have more motivated employees 3 Share more information. Communicate better 3 Involve employees more in decision making 3 Pay better benefits, twice the retirement income, and higher wages 4 Grow sales 2.3% to 2.4% faster 1 1 2001 Rutgers University study that followed 1,100 ESOP and 1,100 non-ESOP private businesses over 10 years 2 1995 Rutgers study 3 2005 National ESOP Association survey 4 1998 Washington State Department of Community, Trade and Economic Development study

9. Memberships help us stay current with the latest trends

10. $100 Service Guarantees …since 1986 ...or you get a $100 credit! Satisfy you 100% Supply defect free fasteners 5. Ship and bill your orders error-free Call you back when promised Meet the promised delivery date of fasteners not in stock Deliver in-stock fasteners ordered by 3 p.m. on time to your delivery zone (see map )

11. Inspection lab Kaizens High customer quality ratings Measure performance Fill rate Accuracy Inventory stockouts Productivity Quality

12. Our lab holds to stringent aerospace and military sourcing requirements

13. Goal: four kaizens annually Redesign online system for easier use. Add new error categories: system, accounting, and purchasing Corrective action system Free up 20% more space Warehouse space Set parameters for long term plan Disaster planning Reduce scan time by 50% Imaging Automate process Secondary operations Reduce E-item stockouts by 50% while maintaining turn rates Exclusive inventory stockouts Eliminate stock misplacement. Improve put away process. Establish standard procedure Stock put away Reduce order entry errors by at least 25% Order entry error reduction Goal Topic

14. Consistently high quality rankings by our customers

15. Forecasting software runs each stock item through 27 formulas monthly to suggest which is best -284 150 SEA4/1-6 434 AVGSHIP 1/4-20 X 3 HEX CAP GR 5 Z NA 5Z010250300 -89 50 60DAY 139 AVGSHIP 1/4-20 X 2 3/4 HEX CAP GR 5 Z 5Z010250275 -3 85 AVGSHIP 88 6MO 1/4-20 X 2 1/4 HEX CAP GR 5 Z 5Z010250225 -86 173 SEA4/1-6 259 AVGSHIP 1/4-20 X 1 3/4 HEX CAP GR 5 Z 5Z010250175 145 1017 SEA3/1-0 872 AVGSHIP 1/4-20 X 1 1/2 HEX CAP GR 5 Z 5Z010250150 112 720 QUADSEA 608 AVGSHIP 1/4-20 X 1 1/4 HEX CAP GR 5 Z 5Z010250125 0 2 SEA4/1-3 2 6MO 1/4-20 X 1 HEX CAP GR 5 Z 5Z010250100B 439 3745 6MO 3306 AVGSHIP 1/4-20 X 1 HEX CAP GR 5 Z NA 5Z010250100 451 3555 COMBO2 3104 AVGSHIP 1/4-20 X 3/4 HEX CAP GR 5 Z 5Z010250075 2349 2826 WSTD5-3 477 AVGSHIP 1/4-20 X 5/8 HEX CAP GR 5 Z 5Z010250063 309 1860 COMBO1 1551 AVGSHIP 1/4-20 X 1/2 HEX CAP GR 5 Z 5Z010250050 Diff Bfrcst BFormula Cfrcst CFormula Description Product

16. Stockouts by Product Category (Item completely out of stock when customer tries to order ) Best selling items Slowest selling items 22 35 22 34 21 36 31 33 32 34 28 TOTAL 7 7 6 4 3 17 6 11 9 7 7 CLASS 6 5 5 2 7 3 3 6 3 4 11 3 CLASS 5 3 4 4 5 5 3 5 1 3 2 1 CLASS 4 2 7 2 8 5 2 8 5 5 7 5 CLASS 3 4 8 7 6 3 9 6 7 9 5 8 CLASS 2 1 4 1 4 2 2 0 6 2 2 4 CLASS 1 NOV OCT SEP AUG JUL JUN MAY APR MAR FEB JAN SINGLE CUSTOMER ITEMS 41 47 46 53 48 54 47 44 61 53 50 TOTAL 17 17 14 21 14 13 12 10 17 13 4 CLASS 6 8 11 5 12 10 10 9 7 17 12 19 CLASS 5 4 5 8 6 5 8 5 8 6 4 5 CLASS 4 2 11 7 6 6 11 7 4 12 9 8 CLASS 3 6 3 6 5 5 4 9 6 6 11 9 CLASS 2 4 0 6 3 8 8 5 9 3 4 5 CLASS 1 NOV OCT SEP AUG JUL JUN MAY APR MAR FEB JAN STOCK ITEMS

18. 2008 – 2004 Error Comparison

19. Warehouse Productivity 2008

20. Technical/Specials help Imaging Custom labeling, documents, packaging, and reports Point-of-use VMI Consolidated and Summary invoicing Multiple Commodity Management Online ordering Select capabilities

21. Technical and Specials help

22. Imaging system for immediate delivery of CERTS and other important documents

23. Custom bar coded packing slip

24. Custom bar code label showing P.O. line item

25. Point-of-use vendor managed inventory At assembly benches Rolling carts

26. Department and POU report – summary

27. Department and POU report – detail (partial)

28. Consolidated invoice

29. Monthly Summary Invoice

30. Monthly Invoice - detail

31. You keep the vendors you currently use for non-fastener supplies like gaskets, hand tools, and plastic resin They deliver product to you as they always have We bar code label your stocking locations for the products. Maintain inventory. Send orders to your vendors We return to put away the supplies We pay your vendor invoices and you pay us with one monthly check We provide quarterly usage and monthly price change reports More Multiple Commodity Management

32. Online access to your parts and real time inventory