TRIAX- D. Consulting services to accelerate your supply chain automation outcomes. The resourceful services of Logi-D

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010100101001010101010100110010101010101100110011010101010101011001100011010101011 0101010011010100110101001101010010100110101010010101001001010010 0101001011000101011010101100010101001110010010110011010100110101 TRIAX- D Consulting services to accelerate your supply chain automation outcomes The resourceful services of Logi-D

Turnkey offering Full supply chain analyses & transformation services Automation technology & business intelligence High-density storage & space optimization 2 3

Resourceful knowledge Resourceful solutions Logi-D was originally created as a hospital supply chain consulting group with a research affiliation with the HEC Montréal business school. Our consulting and research experience has provided us with an in-depth understanding of dominant healthcare supply chain issues. Building on this experience, we continuously expand our knowledge by sourcing best practices, emerging technologies and leading standards across borders and industries, which has resulted in a comprehensive and resourceful knowledge base. Resourceful ideas The common denominator in any healthcare organization around the globe is a focus on clinical services, as it should be. But in many cases, the functions supporting the front line are left stretched to the limit due to cumbersome manual processes. Our focus is to create resourceful solutions that simplify and automate both front line clinical services and back office support functions. This not only allows the front line more time to deliver care, but it also enables optimized and consistent back office processes. Resourceful R&D philosophy Leading standards Emerging technologies However, simply knowing the sector does not distinguish us from our peers. It is through our core competency of innovation that we connect the dots in new ways and convert our knowledge into resourceful solutions, just as we have transformed ourselves into a hospital end-to-end solutions integrator. We strongly believe that an end to end solution generates the best results, given the dynamics of the supply chain, and that the standard solutions available on the market today do not always solve the issues. It is with this in mind that we have developed our id suite, a unified solutions platform of best of breed solutions designed to interface easily to host applications. The leading practices we adopt and transform are translated into effective solutions, ensuring user-compliance and automation. Emerging technologies are integrated to optimize data capture and communication within the supply chain. Ongoing value and effectiveness are assured by our continuous seeking out and adopting of leading standards. Best practices We continuously expand our knowledge by sourcing best practices, emerging technologies and leading standards 4 5

TRIAX- D Resourceful impact - examples of proven gains Productivity gains Resourceful consulting services $ Automation and elimination of manual tasks Elimination of non value-added activities Streamlining of processes Transferring of logistics activities from nursing staff to materials management and support staff Substantial improvement in the outcome of supply chain processes Reduction in dependence on individual employees and facilitation in integrating new staff members Sq Ft Logi-D offers healthcare organizations distinctive and specialized consulting services aimed at improving the supply chain through the optimization and automation of material-related processes. To support these transformation processes, Logi-D builds detailed, reliable business cases. To a great degree, although not limited to this focus, our consulting services are used to simulate impacts and ensure the optimal use of Logi-D s leading-edge automation solutions. $ Sq Supply-related Ft gains Reduction in inventory shrinkage through real time inventory data and built-in stock rotation Optimization of inventory levels through consumption-based replenishment and meaningful analytics We begin with an assessment of the organization s existing situation. Our approach then consists of identifying and measuring the impact of changes made through automation and physical transformation to free up manpower hours, minimize clinical staff involvement in material-related processes, and optimize inventory levels and the space allotted to storage. The vocation, location, history and culture of each hospital are different, and we therefore adapt our recommendations to an institution s particular profile and needs. To this end, our methodologies are interactive and generate results that reflect the reality of each client. $ Sq Ft Space-related gains Minimization of employee movements, because the right products are placed where needed Fewer supply searches, with storage sequences aligned to clinical processes and visual systems Optimization of the space allotted to storage Ergonomic improvements 6 7

A three-tiered methodology Tier 1 Potential based on comparable hospitals Tier 1 Potential based on comparable hospitals Tier 2 On-site analysis Tier 3 In-depth time & motion studies & analyses Our services are three-tiered. The difference between each tier is the degree of detail used to analyze the cost and impact of the proposed solutions and in turn the degree of precision in the calculated impact and return-on-investment period. These tiers also reflect the time that must be invested to generate the relevant data. The first tier consists of a high-level analysis of the proposed solutions based on consumption statistics and a summarized description of the site in scope, including the number of beds, number of operating theaters, etc. The gains associated with inventory and process changes are based on the results obtained through detailed time and motion studies and analyses conducted by Logi-D at similar sites. The only investment for this service is the time required by the institution staff to respond to our request for statistical data. This analysis is performed within a few days and is free of charge. 8 9

Tier 2 On-site analysis The second tier consists of an analysis of the impact of implementing the proposed solutions based primarily on data gathered through statistics, a series of interviews conducted with managers, and a visit of the departments in scope. As with our Tier 1 studies, this data is compared with that obtained from sites similar in size where detailed time and motion studies and analyses have been conducted by Logi-D. This level of study will produce estimated costs per process and per job category for your organization. Some of the key steps of the methodology in this tier include: Interviews with managers and/or process owners during the data gathering phase to allow Logi-D to gain an overview of how the processes work. A guided tour of departments under study to provide Logi-D with an understanding of the replenishment process, storage areas and physical constraints. Preparation by Logi-D of a detailed analysis of the information gathered and a final report, which is presented to the managers involved. The report includes a summary of the gains associated with inventory optimization and any new processes recommended. If the hospital decides to implement the proposed solutions or extend the process to the next analysis tier, the cost of this study will be deducted from the cost of the Logi-D solutions proposed or the additional consulting fees. Tier 3 In-depth time & motion studies & analyses Based on in-depth time and motion studies and further examination of the supply chain, the third tier consists of a detailed analysis of the impact that implementing the proposed solutions would have. A very high level of precision is produced by these observations and analyses, i.e. cost per process, cost per activity and cost per job type. If the hospital decides to proceed with the proposed solutions, 50% of the amount invested in the study will be deducted from the cost of the Logi-D solutions selected. Some of the key steps of the methodology in this tier include: Launch meeting with employees to explain the project to them. Data gathering from statistical reports, interviews and observations. Analysis of the data, which includes the creation of a costing grid as well as a flow chart per process that describes the work organization and flow of information and products. Meeting among Logi-D representatives to brainstorm strategies that hold the highest potential for the hospital Identification of strategies and writing of solution options. Preliminary presentation of strategies and solution options. Additional data gathering as required. Detailed analysis of the scenarios retained and preparation of preliminary report. Presentation of preliminary report, which contains, among others, recommendations with respect to the hospital s supply chain and the resulting financial gains. Presentation of final report. 10 11

Resourceful implementation services 12 Pre-implementation Logi-D supports the entire implementation of its solutions in order to ensure that the results of the project are aligned to your objectives. Our implementation support is backed by a unique and proprietary methodology. This proven methodology is adapted to each client s needs and context and takes into account the hospital s internal resources assigned to the transformation project. Some of the key steps of the pre-implementation phase include: Creation of an internal project coordination committee comprised of a combination of key individuals who will have an impact on the decision-making process and who will be affected by the project. Assessment of needs and existing processes. Working session with the client s IT department to review how the software will exchange data and to define the required interfaces. Submission of a detailed implementation plan to the committee for approval. Kick-off meeting with the employees involved and affected by the change to present the project, implementation plan and project manager, and to outline the role and responsibilities of each project stakeholder. Implementation Some of the key steps of the implementation phase include: Coordination of and assistance in the principal steps of the implementation plan, including coordination meetings in order to maintain project focus and adhere to timelines. Submission of physical layout plans where applicable, in AutoCAD format. Creation of the software application interfaces and installation and testing of the applications and technology components in a test environment. Once all validations are completed, the application is moved to the live environment. Training of all employees involved (IT, nursing staff, MM staff, etc). Supervision of the go-live in each department. We closely monitor the initial activities to ensure a smooth transition. Communication, change management and training are vital components of our implementation approach and help assure both the collaboration and system compliance of each user. Quality control tools are integrated throughout the transformation process to ensure that the objectives of the transformation process will be met. Post-implementation Post-implementation includes a management meeting to review system compliance and ensure the optimal use of the Logi-D solutions implemented. We also provide recommendations based on statistics generated by the dashboard included in our solutions. Other post-implementation services include: Remote monitoring of RFID devices Online support Remote monitoring of the usage and capacity of the 2Bin-iD boards Implementation of a contingency plan Updating of new functionalities and versions Data backup monitoring Additional training As required, we can also analyze the post-implementation results and conduct compliance measurements. 13

010100101001010101010100110010101010101100110011010101010101011001100011010101011 0101010011010100110101001101010010100110101010010101001001010010 0101001011000101011010101100010101001110010010110011010100110101 010100101001010101010100110010101010101100110011010101010101011001100011010101011 0101010011010100110101001101010010100110101010010101001001010010 0101001011000101011010101100010101001110010010110011010100110101 Case study - Pre-implementation analysis Case study - Post-implementation simulation Project objectives: Projected gains: Release clinical time 57% reduction in overall supply chain costs Reduce supply chain costs 72% reduction in supply-related nursing unit staff time Improve service levels 50% reduction in inventory shrinkage 21% reduction in inventory This case study involves a two-site urban hospital of 800 beds. At the time of the study, indicators revealed a significant increase in clinical activities in recent years a trend that was bound to continue. To help handle this increase, a decision was made to examine the institution s existing clinical supply chain processes and the potential to automate them. The objective was to achieve operational gains while reducing the involvement of clinical staff in supply chain activities. The Tier 3 analysis conducted by the Logi-D consulting team consisted of establishing a detailed profile of the existing situation at the hospital and simulating the impact of implementing Logi-D s suite of automation solutions within the institution s environment. The total annual cost of the supply chain in scope was established at more than $5,700,000 annually. Detailed analyses were conducted of the central warehouse, sterilization processing department, ambulatory care center and four nursing floors. The results of the nursing floor analyses were then extrapolated to units throughout the hospital, based on specific criteria and activity indicators. The project targeted all applicable internal materials management processes involving distribution, storage and order preparation, to name just a few. The materials processes were examined as a whole rather than in a fragmented manner. This in turn would enable the entire supply chain to be optimized and would prevent a series of isolated, disconnected improvements from being made. The simulation of the future automated units involved meticulous planning of all storage area locations up to and including the point of use, deployment of the 2Bin-iD replenishment system, and automation of distribution processes, including the implementation of a warehouse management system. The analysis demonstrated that the transformation process would generate gains over five years of approximately $20,300,000 for the entire hospital, with a payback period of under two years. 14 15

Putting resourceful ideas to work Logi-D 1-888-628-8804 info@logi-d.net www.logi-d.net Logi-D Version 1.0