Verst Group Logistics Capabilities

Verst Group Logistics Capabilities

Verst Group Logistics Our family-owned company provides fully integrated warehousing, transportation and packaging services. Verst Group Logistics is passionate about making our customers first with their customers by streamlining the logistics of moving products to market. Be First With Verst.

History of Verst Group Logistics J.C. Buckles Warehouse (Buckles) opened for business in 1854. We simplify our customers logistics world! Today, Verst Group Logistics is the largest family-owned third party logistics operator in the Midwest. 1854 1966 1968 1970s 1980s 1988 1991 1998 2002 2004 Today J.C. Buckles Warehouse Purchased Strothman Express Acquired J.C Buckles Warehouse 1970 s 1980 s AMF CTW Dry Ridge Merged Verst Group Logistics Distribution Zenith Logistics Contract Packaging All Companies Merged Buckle s Warehouse Verst Group Logistics, Inc.

Verst Group Logistics Company Profile Family Owned Founded in 1966 1300 Employees 17 Locations Over 4.2 Million Sq. / Ft. Over 125 Trucks Over 300 Trailers Contract Packaging Warehousing & Distribution Transportation & Brokerage

Warehousing 17 locations KY, IN, OH Typical Verst Warehouse Operation: 180,000 775,000 Sq. Ft. 30+ Truck Doors Rail Doors In Multiple locations 30 High Ceilings Rack/Floor Storage Advanced WMS Systems AIB Certification Food Safe Operations Fully RF Integrated Secure Truck Parking Close Proximity to I-75 Public Warehousing

Transportation Regional Asset Based Fleet & National Full Service Transportation Services Headquarters located at Corporate Offices Domiciled with Drivers and Live Dispatchers in: Walton, KY Cincinnati, OH Louisville, KY Over 100 Late Model Tractors Over 250 48 & 53 Trailers Same Day Service Yard & Shuttle Service Real Time Communications Team Service for Expedited Shipments 48 State Brokerage Authority Intermodal Services Dedicated Operations EPA Smartway Transport Partner

Verst Group Logistics Locations Blue Ash, OH 11015 Kenwood Cincinnati, OH 11880 Enterprise Ave Springdale, OH 9696 International Troy, OH Lincoln Ave Woodlawn, OH Zenith Glendale- Milford Rd Indianapolis, IN Zenith English Ave Austell, GA 7924 Troon Circle Covington, KY 3775 Lake Park Dr Florence, KY 10176 Dixie Highway Hebron, KY 2200 Gateway Walton, KY 300 Shorland Dr. Walton, KY 340 Shorland Dr. Louisville, KY Zenith Nelson Miller Pkwy Louisville, KY 1234 Gardiner

Safety Observations: At least two per day per supervisor and the information gathered is used to uncover trends enabling us to reduce risks. 50k+ observations completed to date. Quality audited weekly. Observations/interactive conversations with management and employees on the floor discussing hazards proactively Incident Investigations: Used to educate the whole company within 48 hrs of the incident (Safety Alert). Audited to ensure we have assurance that the incident will not be repeated. Thorough incident investigations with root cause analysis, open-ended questions and total facility and company involvement to reduce risk of reoccurrence Pre-shift Meetings: Audited to ensure relevance of topic and understanding by employees. Pre-shift meetings given by management using demonstrations, scripted daily topics and employee involvement Important proactive aspects: Planning work with risk assessment Managing through processes and systems The right behaviors (all employees) Everyone is involved Performance monitoring Continuous improvement

Quality Quality Program Overview: Our Quality Management System follows the ISO9001:2008 guidelines The program is augmented with cgmp, AIB, Food Safe and HACCP procedures and programs Tiered System: Tier 1 Quality Manual Tier 2 Standard Operating Procedures Tier 3 Work Instructions or DOP s Tier 4 Forms Benefits: Reduce Cost Improve Productivity Reduce/Minimize Environmental Impact Improve Quality Standards Employee Training Document Control Quality Initiatives: ISO9001:2008 FDA Registered & Inspected 19 Key Element P&G cgmp AIB IMS Listed Smart-way Transport Partner - EPA HACCP LEAN Training Process Improvement Teams ISO9001:2008 CERTIFIED

Packaging

Verst Group Logistics Packaging Located minutes from Cincinnati Airport Shrink Sleeve Labeling Automatic & Hand Application TDO & MDO Films - New Pressure Sensitive Labeling High Elasticity Stretch Sleeve Labeling POP Display Assembly and Fulfillment Side Seal / L-Bar Seal Manual and Automated Assembly Multi-Packing & Club Store Bundling Fulfillment Re-Labeling Conditioned Storage Today

Contract Decorating Customers Today

Contract Decorating Sleeve Suppliers Today

Contract Decorating Film & Containers Today

Outsourced Decoration Examples Wine & Spirits

Outsourced Decoration Examples Food & Beverage

Outsourced Decoration Examples Personal Care & Household Cleaners

Contract Decorating POP Displays

Verst Group Logistics Advantages Little or No Capital Investment Capacity to Serve Multiple Automated Lines for Maximum Yields and Volume Capabilities Automated Secondary equipment:» Bulk to Bulk, Bottle Descramblers & Sorting Bowls, De-Case, Case-Pack Over 90 sets of automatic application tooling in stock = Significant Savings & Speed to Market Increased Productivity Pre-fill decorating at Verst versus post fill decorating in house ISO9001:2008 Certified HACCP, GMP, FDA Registered & Inspected IMS Listed, Kosher approved, ABC License Project Management Technical Support / Expertise Supply Chain Management Turnkey Service.

Verst Group Logistics Turnkey Services True Turnkey Operation Contract Packaging Shrink Labeling Warehousing & Logistics Transportation One Stop Shop Product Pickup Decorate Palletize Warehousing Distribution

Shrink Sleeve Label Applications Tamper Evident Bands Full Body Shrink Sleeves Multi-Packs & On-Packs Increasingly popular for consumer protection in the pharmaceutical, vitamin, food and beverage industries Hugely popular in Wine & Spirits, Food & Beverage, Personal Care, Automotive and Household Chemical industries Product Promotions and cross branded items Package (label) remains intact, once promotional wrap is removed Post Fill In House Pre-Fill or Post Fill In House or Outsourced Post Fill Outsourced

Shrink Sleeve Label Application (TDO)

Shrink Sleeve Label Animation Can be viewed at www.verstgroup.com/packaging

Shrink Sleeve Application Flow Chart Application Options Auto vs. Hand 1. Volume, run size & number of SKUs 2. Container Drawings/Samples request & evaluation 3. Tooling / change parts availability 4. Timing Requirements / Lead Time 5. Application line requirements Steam tunnel 5. Descrambler/Auto-Orientation/Case Packer - Tooling Shipping Specifications Label Sizing Secondary Packaging/ Logistics Short (Manual) Production Run Full Production 1. Inbound Case/Bags/Bulk Boxes (Lined) /Bulk Palletized 2. Tumble Packed vs. Soldier Packed 3. Pre vs. Post Fill 4. Pallet Load Specification 5. Stack in trailer and warehouse space requirements 6. WMS Tracking/Lot-Date Coding/Inventory Reporting 1. Primarily Determined at Label Development Stage 2. Shrink Label supplier(s) selected 3. Testing with Grid Material - LF & CL Dimensions 4. Panel placement Template 5. Distortion evaluation for artwork development 6. Label Perforation (In-Line)/Placement 7. Final Testing with printed labels, digitals or grey scales 8. Establish Quality Standards - Targets 1. Bags/Trays/Corrugated Boxes/POP Display (Post-Fill) 2. Multi-Packing/Club Store packaging (Post-Fill) 3. Transportation To/From 4. Warehousing and Storage/Safety Stock 5. Supply Chain Management 1. 15,000 (hand) to 50,000 (auto with tooling) 2. Filling line production testing 3 Shipping, top load, micro testing & distribution testing 4 Full Production

Shrink Percentage & Sleeve Lay Flat Step 1: Determine Shrink Percentage With Flexible tape, measure the smallest & largest circumference of the container. The difference between c2 & c1 is the Shrink % and can determine film to be used. Label Lay Flat : (In millimeters) Largest Circumference(c2) divided by 2 and then add 3mm for fit during application and tooling consideration. Verst has over 80 sets of application tooling in stock that align with many different Lay Flat sizes.

Shrink Sleeve Cut Length Step 2: Determine Label Cut Length Take a flexible ruler and measure along the container s contour the distance from the bottom of the container, where you want the label to start, to the top, where you want it to end.

Shrink Sleeve Template Step 3: Create Preliminary Template: Can be used for initial artwork development but must be confirmed thru line testing with actual containers and materials. Build in clear area (top & bottom) for the application equipment to read as an eye-mark for cutting purposes as well as for a smooth shrink result. 4 mm clear (2 mm top & 2 mm bottom) is the industry standard. Step 4: Seam Offset: measurement of seam to fold typically ¼ to 1/3 of Lay Flat width to allow enough room for back panel graphics.

Art Development Shrink Compensation & Distortion Shrink Labels require a distortion or compensation of graphics so when it conforms to the container shape logos and graphic elements appear correct. Take into affect the container shape when designing. A printed grid pattern is a tool that will give data how the sleeve is forming to the container. It will show patterns of distortion areas either to avoid or leave room for compensation of the graphics. Technology is making great strides into the area of shrink compensation or warping software

Shrink Distortion

Do I outsource or do I insource? Which option applies to my project? Outsource Promotional projects New product launches One time projects Line extension or trial SKU Limited capital budget Limited in-house expertise Limited resources SPEED TO MARKET Insource Established business Installed equipment In-house expertise Long term cost savings plan Increased volume Approved capital spend Technical resources/expertise YOU HAVE TIME

Pre-Fill vs. Post-Fill Sleeve Application Pre-Fill (Outsourced) Reduced Downtime Increased Efficiency Reduced Scrap No Lost Batches No Lost Product Outsource Expertise SPEED TO MARKET Post-Fill (In House) Increased Downtime Decreased Efficiency Increased Scrap Lost Batches bad sleeves Lost product bad sleeves Long Learning curve

Pre-Fill Decorating Video Can be viewed at www.verstgroup.com/packaging

Pre-Fill Decorating Quality & Testing Grid Film & Lab Testing Inspection Incoming Checks Color, Copy, Dimensions Smart System High Label, No Label, Splices Vision System Specific Graphics Human Inspector 100% Online Visual Checks Post Decoration Checks Top Load, UPC, Overflow

NEW: High Elasticity Stretch Sleeves First Contract Decorator in the USA with Equipment Alternative to Shrink Sleeves Lower cost than Shrink Sleeves Recycling Advantage 360* Billboard No Steam Tunnel Ideal for Dairy Beverage Industry

NEW: Roll Sleeve Verst Group is the test site for Roll Sleeve technology Utilizes MDO Film Seaming step performed online Seaming without chemical solvents 2 Step process Print & Slit High Speed Application Typically faster than TDO Multiple films types Multiple film thicknesses Ideal for the beverage industry Multiple formats: Glue Applied Wraparound Roll Sleeve

Be First with Verst! First to the market Little to No capital equipment expenses. First to the market: Ahead of the competition. First to the market: Expert technical support and customer service. First with Turnkey solutions from the leading Logistics provider in the industry.

Contact us Will Schretzman Vice President - Packaging wschretzman@verstgroup.com Sales Contacts: Peter Parker Director of Business Development - Packaging pparker@verstgroup.com Kyle Strenski Director of Business Development - Packaging kstrenski@verstgroup.com 1-800-582-6706 verstgroup.com