FMI is a logistics and transportation management company that has been in business for over 34 years. They have over 86 clients nationwide and offices across the US and in Germany. Their services include freight program development, traffic department management, auditing, payment processing, and strategic planning to help clients reduce costs and improve product flow. FMI prides itself on developing customized solutions for each client and having dedicated staff and long-term carrier relationships to ensure shipping needs are met.

1. Our services focus on identifying & implementing efforts to improve product flow and reduce associated costs

2. FMI General Information Privately owned Business for 34 years Over 86 clients nationwide Many clients with at least a 10 year relationship Corporate Headquarters in Anaheim, CA Offices in New Jersey and Düsseldorf, Germany Onsite Coordinators in San Diego, CA, City of Industry, CA, Phoenix, AZ, Shoreview, MN and Fenton, MO. A continuously growing team of 60 plus members.

3. Industry Trend About 1972 shippers began using outside logistics companies to manage their traffic departments. In recent years this trend has dramatically accelerated as shipper continue to reduce their costs to increase their revenues. Outsourcing can typically cut the shippers’ logistics cost by more that 15% in the first year of implementation.

4. Bob Walters – President and Founder What is the vision of the founder – To be the cornerstone for the company and its relationship with the carriers and the shippers and its staff. Why has it lasted – Transportation is a small world and ethical treatment of all with no questionable practices is a must for the long-term survival and reputation of any successful business in logistics. Why FMI is so successful – We are not a cookie cutter program, each shipper is viewed for its uniqueness and we develop a program from that individual need and want of each shipper.

5. Services Provided by FMI Develop, implement and manage complete freight programs Traffic Department Administrative Functions Carrier Management Logistics Consulting On Site Coordinator hiring, training and management Data Integration allowing for load planning, dispatching and matching to invoices Strategic Planning and day-to-day freight management We manage information on transportation & serve as an outsourced traffic department.

6. Services – Freight Program Development, Implementation and Management Experts review existing traffic program through an in depth study of freight invoices and key personnel interviews. Implementation process - a team from FMI will ensure all requirements are met before the final program is implemented. Client Example: CSK Auto Parts (Checker, Schucks and Kragen) Developed, implemented and manage traffic operations resulting in $300,000 in savings the first year.

7. Services – Traffic Department Administrative Functions Pay the carriers direct or through FMI Contract Publication in Client’s Name Claims processing Single Site Shipment Tracking for all carriers Carrier Dispatch and Monitoring Invoice data entry and audit Reporting (web enabled, customizable, on demand) 24/7 customer service Account Coding Client Example: WD-40 Companies Created EDI system to receive BOL and match to carrier invoices on freight shipped daily. $100,000 cost savings due to faster recovery of receivables.

8. Services – Logistics Consulting Cost savings analysis of existing program Warehouse and other logistics issues resolution Outbound Distribution cost reduction Pool distribution Base rate comparison Warehouse relocations LTL vs. Truckload Consolidation Freight class studies Zone jumping studies Truckload OTR vs. Rail Analysis Client Example: Jackson Products Company In depth program analysis completed to streamline traffic department across the country resulting in over $3 million in savings the first year.

9. Services – Carrier Management FMI’s long-standing relationships and management of carriers is critical to our clients’ success FMI has over 8000 carriers in our database and has relationships with all major carriers All modes of transportation covered including domestic, international, rail, truck, small package, air, …etc. Carrier Example: Fedex Freight “ Our relationship with FMI is looked at as a critical partnership…we are both committed to investing in technology…we view FMI as an extension of our sales program reaching into our clients operations where we cannot.” – Marshall Witt, VP Finance/Administration, CFO Tim Ponder, FMI Executive VP, currently sits on FedEx’s customer advisory board and is the only 3PL representative residing on this board.

10. Services – Strategic Planning and Operational Management FMI is committed to ongoing improvement and programs that adapt to changing environments, economies, and unforeseen challenges. Client Example: Sherwin Williams Set up the west coast distribution system after they closed their Reno, Nevada warehouse. The new service matched the required delivery time and eliminated the cost of the warehouse.

11. Pre-Audit One dedicated auditor is provided to perform the weekly audit. This personalized service permits the auditor to build a rapport with the shippers’ operations and with the carriers involved in the account and add integrity to the audit The Auditor will retain current copies of the following items; The shippers current pricing tariff for each carrier The carriers current rules tariff A list of the commodities and NMFC numbers for the shipper

12. The Pre-Audit 100% Guarantee Freight Management, Inc. stands behind its audit. If a post-audit company finds an error from our pre-audit process FMI will reimburse the fee from the post audit company. Make us prove it. ** When the client or the carrier cannot present us with the discount and rate sheet, FMI cannot be held responsible for the accuracy of the pre-audit

13. Dispatch Services Track Tracing shipments Load Building Monitoring transit time Providing status reports Electronic Tender Pre-rating shipments to determine the shipping method which should be used A dedicated dispatcher is provided to oversee and perform the daily operations for the shipper. The result of the relationship that is built is the successful movement of freight and on time deliveries.

14. Payment Options If opted, Freight Management will issue checks to the carriers. A weekly funding report will be provided to the shipper from FMI. Included with the report will be the invoices (which have been audited) for review. Within 48 hours of received funds from the shipper, we issue the check to the carriers complete with their list of pro numbers and clarification of any corrected freight bills to avoid balance due invoices. We will receive and rectify all balance due and payment status calls from the carriers. We can react immediately if problem should arise and a stop payment is needed.

15. Information Management Customized Reporting Ad Hoc Month End and Trend Reports Any format available to match the shippers software Personalized and Restricted Web Site Access Reporting Tools via Website available 24/7 Data Integration from a simple web form to full EDI covering any and all transaction sets To stay ahead of the curve in technology we spend a large percentage of our income in the purchasing and development of software when we identify a tool our clients or we can use.

16. Dedicated Account Management In order to implement a complex freight program while continuing to keep the shippers vision and expectations at the forefront of the decision making process a dedicated Account Manager is provided. This gives the shipper, the carrier and FMI personnel one point of contact. One dedicated Auditor is provided to perform the weekly audit. This personalized service permits the auditor to build a rapport with the shippers’ operations and with the carriers involved in the account and add integrity to the audit. A dedicated Dispatcher is provided to oversee and perform the daily operations for the shipper. The result of the relationship that is built is the successful movement of freight and on time deliveries.

17. A Few Client Testimonials “ You did it, we threw everything we had at you and you got it shipped. We tried our best to break you, but you all came through and did a fantastic job.” – Patrick Wade, VP Supply Chain, WD-40 “ Let me be the one to sincerely thank each of you for your dedication to perfection and sense of urgency in getting this project completed. There were many obstacles to overcome but the true professionalism showed through as you all made this a reality.” – Bob Caruana, Director of Sales, The Upperdeck Company “ Our customer needs are always your top priority and we can always count on you to make your connections even… when it seems impossible.” – Fred G. Palmer, VP of Operations, CMA Dishmachines

18. A Few Carrier Testimonials “ You are driven towards delivering customer satisfaction which is what it is all about… It is because you have taken on the tough issues and accounts. These are the things that help us all grow and prosper.” – Nick Kekich, Corporate Account Executive, YRC Transportation “ From G.I.’s perspective, working with your company provides us with a cost effective source of new customers that we would not otherwise have the opportunity to secure.” – Barbara Atkins, National Accounts Executive, Estes Express “ You input is very valuable to us as we explore new product offerings and strive to improve our existing services. Your feedback allows us to make decisions that impact not only you and our other customers, but also the marketplace as a whole.” – Douglas G. Duncan, President and CEO, FedEx Freight

19. References (To Name a Few)

20. FMI Management Team President Robert Walters Vice President Tim Ponder VP of Operations Dennis Rihn VP of Global Sales Heidi Walters Director of Technology Dwayne Phillips Accounting Manager Lisa Vo Dispatch Manager Marian Thompson Manager of Contracts and Pricing Ryan Chang Office Manager Kim Runkle

21. Thank you for your interest in Freight Management. We look forward to working with you to achieve your vision! Anaheim • Birmingham • Minneapolis • Phoenix • Dusseldorf (866) FRT-MGMT • (714) 632-1440 • www.freightmgmt.com