OVERVIEW OF SEDLAK MANAGEMENT CONSULTANTS

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1 OVERVIEW OF SEDLAK MANAGEMENT CONSULTANTS I NNOVATIVE D ISTRIBUTION & FULFILLMENT S OLUTIONS First, we listen. TM -1-

2 M A N A G E M E N T C O N S U L T A N T S Our Story The Sedlak name is synonymous with independent, innovative, common sense solutions. After graduating from John Carroll University with a major in philosophy and a minor in industrial engineering, Joe Sedlak went to work for Hodel Chain and later Picker X-ray designing their material handling systems. He also taught at John Carroll, where he met Maurie Salzman, the CEO of Bobbie Brooks. Maurie hired Joe to be his distribution center manager, where Joe designed a totally new, stateof-the-art DC. It was such the envy of the industry, Maurie would host tours of the facility and Joe would get calls from companies on evenings and weekends asking, Can you help us? And he did. In 1958 Joe decided to hang his shingle. A busy family man with a strong faith, he based his company on three principles: family, faith and profession. Our founder Joseph A. Sedlak Now a second-generation, family-owned business, Sedlak supports clients in planning and deploying their distribution networks and designing and implementing facilities based on operational best practices. We are passionate about listening to our clients seeing their business through their eyes and partnering with them to deliver value on their terms. We pride ourselves on both the unsurpassed body of industry knowledge and the trusted, enduring client relationships we have built. -2-

3 Over 50 Years of Trusted Service 1950s Company founder Joe Sedlak had a reputation for innovative garment handling systems dating back to his work with former employer Bobbie Brooks. Early on, the majority of Sedlak s clients were garment manufacturers. Other clients included Picker X-Ray, Ford Motor Company and Colgate-Palmolive. Joseph A. Sedlak Management Consultants, Inc. founded in August s Sedlak developed high-speed unit sortation systems to answer the needs of JC Penney, General Merchandise and other catalogers. As specialty retailers began to take market share from traditional department stores, we began working for companies like The Limited and Paul Harris. Expanded client base of Fortune 500 companies 1970s In this decade, President Reagan approved spending to modernize our defense infrastructure, which had not been updated since WWII. Sedlak did a lot of government work and designed multiple facilities for the military. Family ownership changed from 1st generation to 2nd generation 1980s Sedlak developed an information technology practice to support system implementations that were quickly becoming a critical component of automated distribution centers. Also in this decade environmental concerns were growing, impacting building and operational practices. First green distribution center completed 1990s With the popularity of internet shopping, Sedlak continued developing innovative designs for e-commerce clients and multi-channel retailers, as well as 3PLs entering the dot-com boom. The Y2K scare was an added concern for many clients, now relying on information systems for daily operations. Moved into corporate offices in Highland Hills 2000s Network strategy became a large part of Sedlak s business as companies faced rising fuel costs on transportation. We continued to support the maturing 3PL market and the everchanging needs of retailers. Our labor management practice also grew as clients sought greater workforce efficiencies in the distribution center. In 2008 Sedlak celebrated 50 years as a leader in the industry -3-

4 Differentiators Industry Experience since 1958 We are a niche provider in the logistics industry, with an unsurpassed body of knowledge and over 2,500 projects for more than 1,200 clients worldwide. Customer Mindset We listen to our clients and see the business through their eyes. Over 75 percent of our clients return to us for solutions to their ongoing business needs. Collaborative Methodology Our time-tested, collaborative approach engages the client s participation at every critical stage of the project and ensures that optimum answers emerge. Independence We employ all technologies without bias and never recommend a vendor s product of services unless we are certain it is the best solution for our client. Data-Driven We come prepared with factual information supported by deep distribution experience. Attention to Detail Our focus on detail and performance metrics enable our clients to achieve capacity and operational execution that supports targeted growth. Process Discipline We develop proactive, efficient processes and pursue flawless execution. We address all issues openly and constructively so that projects are completed on time and on budget. -4-

5 Core Services -5-

6 Service Offerings Supply Chain Strategy Distribution Network Design Fulfillment Strategy Assessment & Design Capacity Studies Consolidation Analyses Site Selection Inventory Deployment & Flow Strategies Statistical KPI & Performance Development Conceptual Design of New and/or Expanded Facilities Economic Analysis including ROI Capital Estimating and Budgeting Detailed Drawing and Specification Development Solicitations of Competitive Bids & Vendor Evaluations Transition Planning Implementation & Project Management Sound, Unbiased Solutions for New & Retrofitted Facilities Capital Estimates & Budgets Detailed, Engineered Layouts Simulation Modeling Detailed Functional Specifications Comprehensive Competitive Bid Packages & Evaluations Installation Project Management Functional Systems Requirements Current Systems Audit Bid Package & RFP Prep System Rollout Planning Comprehensive Project Management Solution Configuration, Set-Up & Testing Host and Material Handling Interface Support Training Program Development Post Implementation Support Transportation Cost Improvement Assessments Core Carrier Program Development Last Mile Delivery & Parcel Delivery Design & Optimization Private Fleet Optimization Transportation Mode Optimization Assessorial Charge & Freight Payment Audits Prepaid-to-Collect Conversion TMS Selection & Implementation Outsourcing Support -6-

7 Service Offerings Facility/Operational Assessments & Process Audits Energy Savings Productivity & Operations Enhancements Best Practices Engineered Standards Labor Management Programs Product Slotting Modeling Core Competency Reviews & Outsourcing Assessments 3PL Structure & Relationship Design 3PL Selection & Management Transition & Implementation Planning & Oversight 3PL Performance Audits Insourcing Assistance Liaison between Client and Contractors/Vendors Coordination of Building, Equipment & IT Vendors Schedule, Budget & Compliance Oversight Implementation Coordination & Testing Transition Planning Communication, Change Readiness, Change Management & Training Programs Omni-Channel Fulfillment Strategy Order Capture & Management Design Multi-Channel Distribution Facility & Operations Design Fulfillment Location Design & Enablement Inventory Deployment Optimization Store Fulfillment Operations & Back Room Design Inventory Assessments Forecasting, Planning & Replenishment Design Inventory Accuracy Process Improvements Inventory Right-Sizing Initiatives Inventory Deployment Planning OS&D Inventory Reconciliation & Disposition Forecasting & Demand Planning Tool Selection & Implementation -7-

8 Methodology From Strategic Planning Project Management / Change Management To Tactical Execution Data collection Client and customer interviews Facility tours and operational reviews High level data analysis Benchmark comparisons Diagnosis (Phase 0) Conceptual Design (Phase 1) Detailed data analysis Design alternative creation Options comparison & selection Stakeholder acceptance Plan & budget preparation Approval support Detailed process/facility design Equipment and application specification Bid preparation and vendor selection Implementation schedule development Detailed Design and Selection (Phase 2) Implementation/ Integration (Phase 3) Project management Schedule management Quality control Operational and applications training Transition assistance Our Methodology Keeps Us Focused on Results! -8-

9 Sedlak by the Numbers 1958 Founded by innovative material handling system designer Joseph A. Sedlak. Still privately owned by 2 nd generation family members and one of the longest-standing independent supply chain and logistics consultancies in North America. PERFORMANCE METRICS Cost per Unit (Retail Direct Labor) $.08 - $.15 OUR DESIGN EXPERTISE AND ATTENTION TO DETAIL HAVE ACHIEVED THESE RESULTS FOR SOME OF OUR CLIENTS. Cost per Unit (D2C Direct Labor) $.25 - $.40 $ Order Cycle Time hrs Average ROI 3 to 5 years Our company was founded upon three principles: Family, Faith and Profession. We encourage our associates to engage in life balance and work excellence. IN OUR 55 YEAR HISTORY, SEDLAK HAS COMPLETED 10% to 15% 11 YEARS Average tenure of our Associates (Many over 15 yrs.) OVER 2,500 PROJECTS for more than 1,200 CLIENTS W O R L D W I D E Average amount our clients save on equipment and technology purchases, compared to buying direct, as a result of our strategic vendor alliances and attention to design detail OVER 80 % Clients who return to Sedlak for solutions to their ongoing business needs HUNDREDS OF MILLIONS OF SQUARE FEET TOTAL AREA OF FACILITIES, SYSTEMS AND OPERATIONS SEDLAK HAS DESIGNED, OPTIMIZED AND IMPLEMENTED ACROSS ALL INDUSTRIES AND MARKETS One centralized corporate office in Northeast Ohio facilitates innovation and team-based solutions for our clients. -9-

10 Alliance Partners As an Independent Consultancy, We are Answerable Only to Our Clients We maintain partnerships with selected vendors whom we have worked with on client engagements, providing MHE, information technology, and complementary consulting services. These partnerships serve to keep our staff abreast of vendor capabilities, product offerings, and industry news. Our national account status with these and other vendors coupled with our attention to design detail typically saves our clients 10-15%, as compared to buying direct. Sedlak does not receive any kind of compensation from vendors that we recommend for our client engagements. We employ all technologies without bias and will not recommend a vendor s products or services unless we are certain it is best solution for our client. -10-

11 Alliance Partners Material Handling Equipment Information Technology Real Estate and Construction Labor Standards -11-

12 Working with Leading Multi-channel Retailers -12-

13 Working with Leading Manufacturers/Wholesalers -13-

14 Working with Leading Healthcare Companies -14-

15 Why Sedlak? OUR PEOPLE Experienced Knowledgeable Objective Detail-Oriented OUR PROCESS Time-Tested Collaborative Data-Driven Disciplined Performance- Based OUR PASSION Quality Service Independence Trust Enduring Relationships OUR MISSION CREATE COMPETITIVE ADVANTAGE FOR OUR CLIENTS TODAY BY PARTNERING WITH THEM TO SOLVE THEIR LOGISTICS & SUPPLY CHAIN CHALLENGES OF TOMORROW -15-

16 Thank you! SEDLAK MANAGEMENT CONSULTANTS, INC MILLCREEK BLVD. SUITE 600 HIGHLAND HILLS, OH (FAX) JASEDLAK.COM -16-

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