Accutite Fasteners Vendor Managed Inventory

1. Accutite FastenersVendor Managed Inventory A Program Designed to Reduce Inventory, Increase Productivity & Lower Your Costs Simple and Visual

2. Program Overview • Accutite’s VMI Programs are service-driven • Enables us to assume 100% responsibility for all aspects of supply logistics, eliminating lead times, day-to-day headaches, and minimizing inventory • We take you out of the tedious hardware management business • Providing the lowest “total cost of ownership” (TCO) • Frees you up to focus on your core manufacturing business Simple and Visual

3. Trouble With Hardware • Overstock • Stock Outs • Material Handling • Program Implementation Simple and Visual

4. Too Much Material • Fear of running out • Error in planning • Vendor can take advantage • Change in design Simple and Visual

5. Not Enough Material • Vendor is late • Error in planning • Lost parts • Production spike Simple and Visual

6. Cost of Buying • Manufacturing has changed • 80% of their time chasing parts • 20% of their inventory value • Cost of buying is greater than the value of the part being bought Simple and Visual

7. Cost of Buying Purchasing Costs Transfer Costs Receiving Costs Carrying Costs Simple and Visual

8. Handling the Material The part goes everywhere but where it’s needed... Simple and Visual

9. Vendor Managed Inventory • No material handling • No warehousing of excess inventory • Receive exact quantities at the exact time • Support your manufacturing schedules Simple and Visual

10. About Accutite Fasteners • Doing business for more than 35 years • Branches in Long Beach and San Diego • Serviced over 80 VMI accounts • Service-Driven • Veteran Owned Simple and Visual

11. Racks, Binsand Labels Simple and Visual

12. AccuPak • Your part number • Part description • Quantity • Bar code • Lot control • Date delivered Simple and Visual

13. Additional Products Simple and Visual

14. VMI Process Simple and Visual

15. Point Of Use (POU) Cell1 Cell 2 Simple and Visual

16. SOMI (Supplier Owned Managed Inventory) • Control of your Hardware • Custom, Efficient , Flexible • Consignment • Lower your Inventory levels • Reduces Your Carrying Cost • Small Footprint Simple and Visual

17. Dispensing System • Extends supply chain to point-of-use, cost control no longer ends at back door • Enforces discipline on the shop floor - 100% accountability • 24/7 distributed, “pull” system • Drives the process to the correct level • Provides automatic replenishment • Provides reports that assist in decision making Simple and Visual

18. Quality Assurance Sample and analyze to your print specifications Simple and Visual

19. President’s Award of Excellence “For significant contribution to the improvement of design, cost, quality and delivery of fasteners and for superior customer satisfaction” Certified Supplier Award “Through performance and quality system evaluation, hereby approved to participate in Cannon’s Certified Supplier Program” Quality Assurance Appreciation Award “For your outstanding and dedicated service to our partnership” Dock to Stock Approval “Dock to Stock Status Approval applied for the qualified part numbers which comply to QAP 5.6.” Simple and Visual

20. Additional Information • www.accutite.com Simple and Visual

21. Current VMI Partners Simple and Visual

22. Why Accutite? Experience • Over 35 years of VMI history • Dedicated VMI vehicle fleet & drivers • VMI Staff of Professionals Who Care Simple and Visual

23. Why Accutite? Partnering • Work together & share ideas • Continuous Improvement (Kaizen) • Lower the Cost of doing business Proactive Team • Evaluate usage-to-production • Identify potential issues • Part Standardization • Actively pursue new ideas & manufacturing trends Simple and Visual

24. Setup Seamless Transition • No major changes! • Ease into the new Accutite Program • Replace labels with new • Loose parts into bag • Excess inventory to another location Simple and Visual

25. Visual Status Drivers Log & End Cap Info Sheet Simple and Visual

26. Account Representative Inside Sales This individual will be a highly experienced fastener expert responsible for day to day management and support of the overall program performance. Responsibilities include: • Running Accutite customer material needs analysis, VMI and delivery coordination. • Providing oversight of delivery, audit/verification and delivery logistics analysis and support. • Serving as a focal point for communication and understanding immediate needs for your company. • Responsible for Accutite delivery and expediting. Simple and Visual

27. Account Executive Outside Sales This person oversees the VMI program, logistics and processes. He maintains a global perspective and an acute understanding of your goals while providing opportunities for continuous improvement. Responsibilities include: • Providing manufacturing support assistance and on-call service to assembly lines. • Providing engineering applications and design assistance at your facility. • Implementing new program parts (samples, quotations, and alternatives). • Drives multiple part consolidation efforts. (reducing part population) Simple and Visual

28. VMI Service Technician Driver—On-site Auditor • Delivers material directly from Accutite trucks to designated delivery areas. • Audits bin levels & responds to production line lead requests. • Provides immediate response service for delivery issues. • Provides housekeeping of Accutite inventory areas and handling of return items. Simple and Visual

29. Conclusion • Accutite is not a “Me Too…” company • Accutite has the experience • Accutite has the knowledge • Accutite has the resources to help take your company to the next level of efficiencies • Accutite goes the extra mile to help you reach your goals Simple and Visual

30. Accutite FastenersVendor Managed Inventory A Program Designed to Reduce Inventory, Increase Productivity & Lower Your Costs Simple and Visual