I-Track Software. A state of the art production and warehouse management system designed for Food and Beverage Manufacturers. Overview 2.

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1 Overview 2 Features 3 Benefits 4 I-Track Software A state of the art production and warehouse management system designed for Food and Beverage Manufacturers Site Assessment 5 Integrated Plant Floor Execution 6 Integrated Traceability 7 Client Case Study Natura Pet Products 8 Client Case study Iams Pet Food 9 Interstates Expertise 10

2 Overview Features I-Track is a scalable, state-of-the-art manufacturers production and warehouse management system designed to track products in the whole plant, including raw materials, work in process, and finished products. It provides the benefits of real-time access to inventory, receiving, quality, and shipping information. Being easy to implement, configure and operate, it can be integrated into your manufacturing and warehousing processes quickly, yielding a faster return on investment. Real-time data collection provides warehouse personnel and management an up to the minute view of inventory levels, product locations, and order status. FOCUS ON FOOD I-Track was developed with input from companies in the food industry for the food industry. It addresses many of the areas food manufacturers are most concerned about. Real time data collection for accurate views of plant floor operations Interstates helps manufacturers increase their bottom line through the capture and dissemination of accurate plant floor Tracking more than one lot on a pallet - by assigning a unique serial number to a pallet that is in turn tied to each item/lot/quantity on that pallet minimizes information that needs to be entered or scanned, thus making entry faster and easier. This also allows for quality tests and holds at the pallet level, maximizing available inventory and giving you real-time control of the disposition of product. Tracking lots forward and backward - helping you track product lots used in production and those shipped to customers so that you can minimize the impact of a product recall. Tracking raw materials - provides features unique to food and beverage ingredients such as variable package sizes for weighed ingredients, easy entry and calculation of product weights, and hand-off of raw materials to a process control system for bin replenishment or direct entry into the manufacturing process (with control system integration). Lot Traceability Recent concern over genetically modified organisms (GMO) and consumer health concerns require the tracking of product lots used in production. I-Track tracks lots of non-bulk items into the manufacturing process so that you can narrow the window in the event of a recall or process variability issue. Tracking Raw Materials Variability in raw materials requires tracking lots into the manufacturing process. With I- Track, you can track each lot as it enters the manufacturing stream and make necessary changes to your process. Integrated Quality Control Quality control on the plant floor is where real-time decisions need to be made. I-Track integrates your quality control functions with your plant floor systems from receiving raw materials through shipping finished goods. When I-Track is integrated with your process control systems, it offers assurance in the quality of your product. Pallet-Level Quality I-Track associates quality tests and holds at the pallet level. This yields real-time control for the disposition of product and because it is integrated, the status is updated in realtime without requiring additional effort. Even pallets already loaded onto a truck can be put on hold and stopped from being completed until the offending product is removed from hold. Age-managed Inventories I-Track provides first-in-first-out (FIFO) validation for finished goods shipping, requiring operators to ship the oldest available pallet within the item s FIFO window. This FIFO window is item-based and regards all products produced within a configurable amount of time as the same age, giving you total flexibility to manage your inventory. Flexible reporting for all users including plant floor and executive suite Interstates Manufacturing Intelligence services automate and integrate plant floor operations that lead to greater supply chain efficiencies Integrating quality control - giving you a quality control capability integrated with your plant floor systems so you can make effective and timely decisions about quality. Managing inventories - helping you monitor the age of your inventory and cycle it out of the warehouse in order to manage aged inventory write-offs and continually provide your customers with the freshest possible product. Inventory Management - Real-time transaction recording and management - Serialized container management - Multiple lots and products tracking - Flexible data driven barcode generation - Real time reporting on inventory levels and location - Rules-based location management - Track products with different units of measure Receiving - Receive inventoried and non-inventoried items - Specify testing requirements before receipt - Receive finished products, raw and packaging materials - Receive bar coded products - Cross dock for immediate shipment - Directed rule-based put away that also supports cross-docking Quality - Track quality on container or issue level - Prevent product shipment or use prior to quality resolution - Identify quality required testing at item level prior to use - Multiple standards track the aging of inventory Order Fulfillment - Rule based directed picking (FIFO/LIFO) - Real time order verification to ensure order accuracy - Ability to build custom containers for a specific order - Print standard paperwork - Supports order staging 2 3

3 Benefits Site Assessment I-Track enables manufacturers to harness the power of accurate inventory and operational information at-the-source. This provides greater visibility into the enterprise and the supply chain, which translates into real cost savings; a foremost concern of manufacturers today. Getting more out of existing assets: Integrating plant floor execution helps make optimum use of production and software assets through actionable plant floor information. The results are higher efficiencies and better business decisions. Complying with traceability requirements: Automating traceability of plant-required execution helps make optimum use of production and software assets through actionable plant floor information. The results are higher efficiencies and better business decisions. Effectively implementing technology in the plant: Interstates has a proven track record of successful implementations on the plant floor in areas of inventory control systems, integration, operational data collection, process and quality control, and warehouse management. Employing new technologies to track assets and inventory: Integrating plant floor tracking by applying scanning technology to manufacturing operations ensures accurate data is circulating through the supply chain and yields increased plant floor operational efficiency. Keeping an accurate track of your inventory means that you can: Slash inventory carrying costs Eliminate stock-outs Improve order fill rates Improve order picking time Receiving Efficiency Quality Control and Tracking Competency Order Fulfillment Process Improvements Security Functionality It s simple, data does not equal information. You need the right information in the right place at the right time to harness the power of accurate information. Interstates assessment experience can help you get there. What is an Interstates Assessment? Our assessment team spends time at your facility, meeting with your key information resources and decision makers. They develop actionable recommendations based on years of integration experience. When complete, recommendations will be reviewed with plant management to reveal opportunities to harness the power of accurate inventory and operational information. Interstates assessment is for manufacturers who: Require traceability (track and control) due to global food-safety regulations becoming increasingly strict Short-ship orders with a warehouse full of product Perform daily physicals to plan production Have erratic production schedules beyond seasonal shifts Are not seeing the value expected or are overwhelmed with the amount of transactional data required by ERP systems Are considering a large systems implementation and want to get it right the first time Are considering expanding warehouse space, but don't have control over what is in the existing warehouse By getting an assessment you can: Increase Throughput Efficiency Revenue Success in supply chain collaboration Reduce Inventory levels Short shipments Recall exposure Shipping lead-times Cost and waste These assessments were developed to determine where system functions should reside and how they should be integrated or interfaced with one another and the rest of the Enterprise. Unlike studies offered by other vendors, Interstates assessment involves the plant floor and considers corporate objectives, cultures, and metrics in its analysis and recommendations. The assessment performed is the initial step to delivering a solution that is right for you. After an on-site evaluation of your current systems and process, you are presented a written report including a value proposition. This assessment can serve as the blueprint for Interstates to design a solution plan to meet your specific needs which can be launched immediately, in stages, or when the timing is right for you. 4 5

4 Integrated Plant Floor Execution Integrated Traceability The promise of Enterprise Resource Planning (ERP) has been to make enterprises more responsive to customers and suppliers, and to bring several business processes together in a central information system. Unfortunately for manufacturers, ERP solves only part of the data integration problem because it fails to integrate plant floor systems. Neither supply chain nor ERP systems can provide real-time information from the plant floor, and therefore can t give you the data you need to make informed decisions and meet market demand. It is only when business systems and plant floor systems are automated and tightly coupled that the enterprise will realize the true value of its business systems. The I-Track Solution I-Track is an integrated plant floor execution platform that improves profitability through the capture, dissemination, and integration of accurate plant floor information. I-Track provides visibility into the plant floor operation so you can make optimum use of production facilities and benefit from: - Reduced labor costs through improved manufacturing efficiencies and less time spent on data entry and locating inventory - Lower inventory costs due to reduced excess inventory through accurate information - Increased customer satisfaction by meeting customer commitments and enhancing customer experience - Accurate inventory by having real-time visibility to inventory - Improved quality control by integrating quality and traceability functions into automated manufacturing processes It is only when business systems and plant floor systems are automated and tightly coupled that the enterprise will realize the true value of its business End to end product traceability has come into focus with recent government regulations and food safety scares Recent animal health scares, outbreaks of food-borne illness, and threats of food contamination by terrorists have created alarm around the globe. In response, the FDA has placed new regulatory requirements on domestic and foreign food and feed manufacturers. These concerns and regulations have created a demand to verify the source of the products as they are used throughout your supply chain. Respond to Recall Faster with Automation In the event of a product recall, you must have the ability to respond rapidly to determine which food items are potentially contaminated. Doing so quickly and effectively depends on the traceability systems you have in place. An automated traceability solution enables you to track lots backward or forward to determine where products were shipped and what lots were used in production. Minimizing product recall exposure and complying with regulatory governance I-Track has an automated traceability solution that integrates plant-required execution functions (receiving raw materials to shipping finished product) with your manufacturing operations, enabling you to minimize product recall exposure. Benefits: - Minimize the amount of product subject to recall - Reduce time necessary to complete the recall - Maintain consumer confidence - Protect your brand - Satisfy government regulation I-Track is an Integration of: - Process controls (either your own or Interstates provided) - Leading-edge enterprise production and warehouse management system designed specifically for the food and beverage manufacturing industry (either your own or Interstates provided) - World-class consulting practices that help bridge the gap between the plant floor operations and corporate business objectives Process Controls We use an integrated, scalable combination of control and monitoring hardware and software to deliver quality control systems that: - Improve productivity by allowing tighter control of production parameters - Improve product quality assurance through sophisticated alarming and reporting features - Help meet customer quality assurance requirements 6 7

5 Client Case Study Natura Pet Products Client Case Study Iams Pet Food Natura Pet Products selected Interstates I-Track solution to gain real-time access to inventory, receiving, quality, and shipping information in order to ensure the company can deliver high-quality products with consistency. The challenge included integrating the manufacturing, warehousing, and business systems for a 750,000 square foot greenfield manufacturing facility. I-Track provides up-to-the-minute view of inventory levels, product locations and order status for quality control. To start, an assessment was conducted to determine which of Natura s systems would be responsible for specific operational information and how the systems would be integrated. From that assessment, Interstates designed the architecture for all the plant systems, resulting in lower total cost of ownership and more timely and accurate information. As part of the overall systems architecture, I-Track was implemented, a leading-edge warehouse management platform that automates and integrates Natura s plant floor operation with the company s ERP system. Now that the business systems and plant floor systems are tightly coupled, Natura benefits from a collaborative supply chain, gaining complete visibility into the operation, and enabling them to make better decisions and satisfy customer demand. Interstates I-Track solution enabled Natura to: - Perform accurate first-in-first-out shipping - Have end-to-end lot traceability for improved quality control - Provide a single point of accountability for plant floor inventories - Automate the collection of real-time operational information resulting in a lower number of personnel required to run the plant. Natura s Results - Improved order fill rates - Improved order picking time - End-to-end lot traceability - Single view of plant inventories - Leaner plant staff delivering improved product quality Natura selected I-Track based on their expertise in the pet food industry. They have demonstrated success in this industry, which is critical to ensure our systems are done right the first time. Don Scott Vice President Natura Iams enhances the well being of dogs and cats by providing worldclass quality foods. Iams sells eukanuba and Iams brands in 70 countries and employs more than 2,500 people. Interstates has been able to create systems that are in sync with the way we do business. Scott Steele Plant Manager The Iams Company, a producer of premium dog and cat food, selected the I-Track solution to automate and consolidate their warehouse functions, delivering a common platform that enables the company to share actionable information across several facilities. When Iams was acquired by Procter & Gamble in 1999, the decision was made to expand the distribution of Iams products (traditionally sold in specialty stores) to mass retail outlets such as grocery stores. In order to produce a sufficient quantity of product before the launch of the new distribution channel, Iams had to increase production and integrate their plant floor systems with the rest of P&G enterprise in a very short time. Multiple systems operating as one to produce product while protecting investment in existing assets. The first thing done was conducting an operational assessment to obtain a total systems view of requirements before designing a solution. This process revealed that Iams had multiple disparate systems that needed to be integrated before the distribution launch an ERP system for accounts payable and purchasing, and plant floor execution systems for scheduling and executing deliveries. The answer was to implement the I-Track integrated solution. I-Track delivers a common platform from which to share actionable information. In addition, using Interstates integration expertise, the solution merges application security, formulation, receiving, inventory, shipping, quality and other plant floor control functions into one application. This solution provides the right information to Iams decision makers when they need it whether in the plant or elsewhere in the enterprise. The I-Track solution made it possible for Iams to double production in just under 6 months after the acquisition by P&G. Now, while orders for customers in the specialty channel are taken through the existing Iams order entry process, orders for the mass market are taken through P&G order entry systems. In addition, accuracy of shipments, invoices, and easily retrieved paperwork has lead to fewer mis-shipments and actually increased overall customer satisfaction levels. Iams Results - Increased customer service - Higher plant throughput - Lower inventory levels - Better decision making 8 9

6 Interstates Expertise Interstates is a consulting and solutions company that helps food and beverage manufacturers increase their bottom line through the capture, dissemination, and integration of accurate plant floor information. Already in use at many organizations, including the Fortune 500 companies, Interstates enterprise solutions and services, designed specifically for the food and beverage manufacturing industries, automate and integrate plant floor operations yielding greater supply chain efficiencies. A Trusted Partner Interstates is often viewed as an extension of our customers organization based on our understanding of their business and the strength of our working relationships. Our customers view us as more than just a vendor, they view us as a partner in helping them meet and exceed their corporate objectives. We hold a high repeat business rate and maintain strong customer references. Experience Interstates consultants, experts in process manufacturing industries, average 20+ years of integration experience. We can apply this experience to your business -- analyzing your operation, getting to the root of your issues, and making sound actionable recommendations to optimize your plant floor operations. Through our experience and expertise, Interstates can help bring control to your inventory and improve your plant efficiencies and productivity. The Right Fit Interstates offers various support plans that are tailored to your specific needs. We understand that just like individuals, all company s requirements and goals are not the same. This philosophy ensures that we offer a specific support solution that provides the right fit. Very responsive to requests and had a good working relationship with the developers. Pet Food Client Customer Service Driven Interstates is known for providing excellent customer service and support. We make each customer feel as if they are our only customer. Onsite support services are available during critical system testing and implementation, with 24-by-7 phone support available to meet all of your support needs. Contact Stephen Dekker Business Intelligence Manager x7123 Interstates Control Systems th Street NE Sioux Center, IA Contact Roger Kredit Product Manager x