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1 Logistics

2 Logistics and Repair Services: Inbound Logistics Order Fulfillment & Distribution Partner Collaboration We create maximum competitive advantage for our customers by delivering best-in-class logistics services, order fulfillment and repair operations that integrate seamlessly into an end-to-end offering: Build-to-order Configure-to-order Reverse Logistics & Repair Customization & Value Added Services

3 Logistics and Repair Services: PCE Paragon Solutions as an OEM s Services Partner: We manage Options Fulfillment & Fixed Merge Operations We serve as the OEM s Global Repair Manager We incorporate and generate process efficiencies through: Co-locating with our low-cost manufacturing facilities Taking advantage of our global footprint close to our Customers target markets effectively improve transportation cost and SLAs functions include: Control tower, VMI operations, forecast collaboration and supply and demand planning, operational commodity management, inventory management and risk mitigation processes Reverse logistics process including RMA process, collection / returns depots, return disposition, repairs, salvage and disposals, exchange management and closure

4 Key Offerings and Benefits: Strategy and Network Design Component Selection and Sourcing Supply Planning (Inventory, Master and Distribution Planning) Logistics, Transportation Repair Services Production Scheduling, Inventory Reverse Logistics Inbound Hub Mgmt Warehouse Demand (Merchandise and Promotion Planning, Fulfillment) Customer Benefits: Reduced Inventories Improved Service Levels Reduced Operating Costs Improved Asset Utilization Reduced Cycle Times Order Fulfillment Distribution & 2 nd Stage

5 Fulfillment Value Proposition: We provide superior value and customer service through Overall Supply Chain Forecast collaboration Supply/Demand ownership Reduced inventories Complex Order Fulfillment of stand alone and tied orders Improved efficiency through CTO capabilities Strategically Placed Regional Logistics Centers Improved SLAs Lower total distribution costs Logistics Facilities Located in Lower Cost Labor Markets Reduce costs for high volume products Implementation of Industry Leading Information Resources Increased control and visibility Instant on-line current status and history Reduced cost of managing complex business

6 Reverse Logistics Value Proposition: We provide superior value and customer service through: Overall of the Returns and Repair Processes RMA, return, disposition, repair, exchange, closure Strategically Placed Regional Repair Centers Minimize turn-around-time Lower cost of collection and delivery Application of PCE Paragon Solutions Quality Standards Repair Facilities Located in Lower Cost Labor Markets Reduce overall costs Implementation of Industry Leading Information Resources Increased control and visibility Instant on-line current status and history Reduced failure rates through integrated quality data Predictive warranty and cost modeling Reduced cost of managing complex business processes

7 PCE Paragon Solutions Value Add: As Viewed by PCE Paragon Solutions: Single Accountability Proven Capability and Reduced Risk Exceptional Track-Record and Performance Streamlined Processes As Viewed by an Executive from a Major Customer: Significant Cost Savings by Transitioning Operations and IT to PCE Paragon Solutions World Class Supply Chain Optimization for Inbound Materials Outstanding Serviceability Performance

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