Kenakore Supply Chain Logistics Centers
                                 providing
             Primary and Secondary Material Management Services


OUR COMPANY

     Established in 1997
     3 operating centers
     150,500 sq.ft total facility
                                     OUR OPERATIONS

                                          100% bar coded & paperless environment
                                          Real-time processing
                                          Accurate inventory controls
                                          State of the art packaging
                                          100% on time delivery
                                          Perpetual cycle count
                                          System-to-system integration
                                          On-line order tracking               OUR CUSTOMERS
                                          100% visibility 100% of the time
                                                                                       Fortune 500 Companies
                                                                                       Mid-size Manufacturers
                                                                                       Global Redistribution Firms
                                                                                       Distribution Channels
Mfg.                                                              Mfg.
       Supply Chain                                                   Channels-to-Market



                                                                                                      OTHER
                                                                                                         OEM
INCREASE MANUFACTURING EFFICIENCY                          INCREASE BRAND & MARKET PERFORMANCE            RETAIL
                                                                                                          DISTRIBUTION

                                                                Inventory Management
    Work Cell staging
                                                                Product Packaging
    Sub-assembly & test
                                                                Finished Goods Kitting
    Production synchronization
                                                                Assembly & Test
    Supplier pay-on-scan
                                                                Private Labeling
    Consolidation center
                                                                Outer pack specifications



                     END-to-END Supply Chain Efficiency
    SALES GROWTH                                      COST REDUCTION:
         High level customer experience                    Single site warehouse cost reduction
         Easy and rapid response                           “Investment grade” inventory
         Reliable and dependable performance               Error free shipping
         Product breadth and depth                         Eliminate loss and shrinkage
         Properly aligned inventory to market needs        Eliminate “rush” processing of product
         Brand performance excellence                      Reduce stock out incidents
SUPPLIER SYNCHRONIZATION

                                                                            Production
                                                                            Pull Signal
       S
       U
       P
       P                        Material
       L                      Replenishment                             Material Fulfillment        Kenakore
       I                                                                   to Work Cell             Customer
       E
       R
       S

                           Inventory Replenishment
                            (min-max criteria visible and
                              monitored by suppliers)

                                                            Fulfillment
                                                            Verification
                                                                                  Invoice



For Suppliers:                                              For Kenakore Customer:
•   Direct sight visibility to consigned inventory             Integrated supplier program to mfg production
•   Inventory management thru min-max monitoring               Quick and responsive processing
•   Reliable invoice prompts based on drawdown                 Eliminate material availability issues
•   Capital free participation                                 No “inventory” costs – moves directly to work-in-process
•   Improved inventory control and investment                  Capital free implementation
•   Business retention                                         Space reduction
                                                               Reduction in administrative costs
MARKET FULFILLMENT


                                         Order
                                         Entry
                                                                                 OTHER
                                                                                     OEM
                    Order                                                              RETAIL
                  Fulfillment                         Order                            DISTRIBUTION
                   Request                           Shipment
Kenakore
Customer


                          Shipment
                          Verification


                                                 Invoice




For Kenakore Customer:                                For End Market Customer:
   Investment grade inventory mgmt.                  •    High degree of fulfillment reliability
   Accurate materials management                     •    On-time – every time service
   Low cost execution                                •    Optimized inventory investment
   Predictable and repeatable                        •    Predictable service
   Accurate and on-time shipments                    •    Ease of doing business
   Rapid & flexible response                         •    Sales growth through reliable service
   Sales growth
WAREHOUSING SERVICES
                   WAREHOUSING SERVICES                          SUPPLY CHAIN
                                                                  SUPPLY CHAIN
                                                                 APPLICATIONS
                                                                  APPLICATIONS
 Receiving                       Kitting
 Stock Maintenance               Packaging
 Perpetual Cycle-count           Brand Labeling
                                                     Global Product Synchronization
 Order Fulfillment               Bag and Tag
                                                     Supplier Procurement & Coordination
 Pack and Ship                   Light Assembly
 Custom outer-pack               Inspection        Aftermarket Channel Distribution
 Returns Processing              QC Testing
                                                     Service Parts Programs

                                                     New Product Launches
                  INVENTORY SERVICES
                   INVENTORY SERVICES                Retail Channel Customization

                                                     Alternate Brand Programs
               Diagnostic
                                                     OE Special Programs
               Design
               Procurement                          Plant J.I.T. & Sequencing
               Expedite
                                                     Ship-Sure Programs
               Performance Monitoring
                                                     Marketing & Show Mat’l Fulfillment
               Turns Analysis
               Returns Settlement
BUSINESS SYSTEMS INTEGRATION
     BUSINESS SYSTEMS INTEGRATION


  CLIENT
OPERATING
            .
 SYSTEM
                   Order Transactions
                   Change Orders
                   Supplier P/O
                   P/O receipts journal
                   Shipment Verification              .
                   Invoice journal
                   Inventory status
                   Inventory adjustments




                                                   ®
                                                       -- is a proprietary Web based system to provide real time access for
                                                       customers and suppliers. 24/7 access provides easy communication
                                 24/7 Access
                                24/7 Access           To improve supply chain responsiveness and critical information access.
                                 Direct site visibility
                                Direct site visibility
                                 Order Entry
                                Order Entry
                                 Inventory Status
                                Inventory Status
                                 Purchase Order Status
                                Purchase Order Status                              is the technology arm of Kenakore
                                 Order management
                                Order management
                                                              Solutions. System Foundry provides technical consulting and

                                 Invoice verification
                                Invoice verification
                                                              support, web design, hosting and development services to
                                                              customers located throughout the U.S. Our clients rely on us
                                 Min/Max queuing
                                Min/Max queuing              for affordable systems support, customized applications and
                                 Drawdown activity
                                Drawdown activity            integrated E-Commerce tools that build business. For more
                                 Communication exchange
                                Communication exchange       information visit: http://www.systemfoundry.com
ACTIVITY BASED PRICING
 ACTIVITY BASED PRICING                  KENAKORE OUTCOMES
                                          KENAKORE OUTCOMES


     Program Start-up
              Start-                     Cash Improvements
      Account set-up
      System-to-system integration      Capital Free Implementations
      Warehouse master record set-up
      Data integration                  Brand Growth
      Report scheduler
                                         Reduced Cost of Labor
     Monthly Program Management
      Product storage
      Cycle count inventory program     Improved Inventory Investment
      Inventory maintenance
      KoreLink®                         Opportunity for Space
      System integration maintenance    Reallocation

     Transaction Activity                Highly Predictable Outcomes
      Receiving
      Pick, pack & ship                 Precision, Flexibility, Speed
      Packaging expenses
                                         Responsive & Efficient
     Logistic Center Services
                                         Processes
      Kitting
      Light Assembly
      Packaging                         Eliminates supply chain
      Branding                          disruption
      Just-in-time
      Sequencing                        A Proven Track Record of
      Returns settlement                Performance
      Marketing materials fulfillment
                                         An Experienced Team

Kenakore Presentation 2011

  • 1.
    Kenakore Supply ChainLogistics Centers providing Primary and Secondary Material Management Services OUR COMPANY  Established in 1997  3 operating centers  150,500 sq.ft total facility OUR OPERATIONS  100% bar coded & paperless environment  Real-time processing  Accurate inventory controls  State of the art packaging  100% on time delivery  Perpetual cycle count  System-to-system integration  On-line order tracking OUR CUSTOMERS  100% visibility 100% of the time  Fortune 500 Companies  Mid-size Manufacturers  Global Redistribution Firms  Distribution Channels
  • 2.
    Mfg. Mfg. Supply Chain Channels-to-Market OTHER OEM INCREASE MANUFACTURING EFFICIENCY INCREASE BRAND & MARKET PERFORMANCE RETAIL DISTRIBUTION  Inventory Management  Work Cell staging  Product Packaging  Sub-assembly & test  Finished Goods Kitting  Production synchronization  Assembly & Test  Supplier pay-on-scan  Private Labeling  Consolidation center  Outer pack specifications END-to-END Supply Chain Efficiency SALES GROWTH COST REDUCTION: High level customer experience Single site warehouse cost reduction Easy and rapid response “Investment grade” inventory Reliable and dependable performance Error free shipping Product breadth and depth Eliminate loss and shrinkage Properly aligned inventory to market needs Eliminate “rush” processing of product Brand performance excellence Reduce stock out incidents
  • 3.
    SUPPLIER SYNCHRONIZATION Production Pull Signal S U P P Material L Replenishment Material Fulfillment Kenakore I to Work Cell Customer E R S Inventory Replenishment (min-max criteria visible and monitored by suppliers) Fulfillment Verification Invoice For Suppliers: For Kenakore Customer: • Direct sight visibility to consigned inventory  Integrated supplier program to mfg production • Inventory management thru min-max monitoring  Quick and responsive processing • Reliable invoice prompts based on drawdown  Eliminate material availability issues • Capital free participation  No “inventory” costs – moves directly to work-in-process • Improved inventory control and investment  Capital free implementation • Business retention  Space reduction  Reduction in administrative costs
  • 4.
    MARKET FULFILLMENT Order Entry OTHER OEM Order RETAIL Fulfillment Order DISTRIBUTION Request Shipment Kenakore Customer Shipment Verification Invoice For Kenakore Customer: For End Market Customer:  Investment grade inventory mgmt. • High degree of fulfillment reliability  Accurate materials management • On-time – every time service  Low cost execution • Optimized inventory investment  Predictable and repeatable • Predictable service  Accurate and on-time shipments • Ease of doing business  Rapid & flexible response • Sales growth through reliable service  Sales growth
  • 5.
    WAREHOUSING SERVICES WAREHOUSING SERVICES SUPPLY CHAIN SUPPLY CHAIN APPLICATIONS APPLICATIONS  Receiving  Kitting  Stock Maintenance  Packaging  Perpetual Cycle-count  Brand Labeling  Global Product Synchronization  Order Fulfillment  Bag and Tag  Supplier Procurement & Coordination  Pack and Ship  Light Assembly  Custom outer-pack  Inspection  Aftermarket Channel Distribution  Returns Processing  QC Testing  Service Parts Programs  New Product Launches INVENTORY SERVICES INVENTORY SERVICES  Retail Channel Customization  Alternate Brand Programs  Diagnostic  OE Special Programs  Design  Procurement  Plant J.I.T. & Sequencing  Expedite  Ship-Sure Programs  Performance Monitoring  Marketing & Show Mat’l Fulfillment  Turns Analysis  Returns Settlement
  • 6.
    BUSINESS SYSTEMS INTEGRATION BUSINESS SYSTEMS INTEGRATION CLIENT OPERATING . SYSTEM  Order Transactions  Change Orders  Supplier P/O  P/O receipts journal  Shipment Verification .  Invoice journal  Inventory status  Inventory adjustments ® -- is a proprietary Web based system to provide real time access for customers and suppliers. 24/7 access provides easy communication  24/7 Access  24/7 Access To improve supply chain responsiveness and critical information access.  Direct site visibility  Direct site visibility  Order Entry  Order Entry  Inventory Status  Inventory Status  Purchase Order Status  Purchase Order Status is the technology arm of Kenakore  Order management  Order management Solutions. System Foundry provides technical consulting and  Invoice verification  Invoice verification support, web design, hosting and development services to customers located throughout the U.S. Our clients rely on us  Min/Max queuing  Min/Max queuing for affordable systems support, customized applications and  Drawdown activity  Drawdown activity integrated E-Commerce tools that build business. For more  Communication exchange  Communication exchange information visit: http://www.systemfoundry.com
  • 7.
    ACTIVITY BASED PRICING ACTIVITY BASED PRICING KENAKORE OUTCOMES KENAKORE OUTCOMES Program Start-up Start- Cash Improvements  Account set-up  System-to-system integration Capital Free Implementations  Warehouse master record set-up  Data integration Brand Growth  Report scheduler Reduced Cost of Labor Monthly Program Management  Product storage  Cycle count inventory program Improved Inventory Investment  Inventory maintenance  KoreLink® Opportunity for Space  System integration maintenance Reallocation Transaction Activity Highly Predictable Outcomes  Receiving  Pick, pack & ship Precision, Flexibility, Speed  Packaging expenses Responsive & Efficient Logistic Center Services Processes  Kitting  Light Assembly  Packaging Eliminates supply chain  Branding disruption  Just-in-time  Sequencing A Proven Track Record of  Returns settlement Performance  Marketing materials fulfillment An Experienced Team