KOM INTERNATIONAL COMPANY OVERVIEW Supply Chain Consultants Since 1963
Section 1 COMPANY OVERVIEW KOM INTERNATIONAL HISTORY In 1963, KOM International was founded by Mr. Sydney Kom with the vision to help North American retail grocery firms achieve warehousing operations excellence. Over the past 46 years, the firm has evolved to provide a full suite of supply chain and logistics consulting services to companies across a wide range of industrial sectors and global markets. To this day, KOM International maintains its leadership position in logistics consulting to the Grocery trade through a highly specialized practice specific to food-related industries. During the 1960's, Mr. Sydney Kom worked with Mr. Terry Perks to steadily build the firm's consulting practice. During this time, KOM International was responsible for the development of many leading-edge logistics concepts that remain in practice with today's most efficient retailers. As the years progressed and the partnership expanded, the firm added new core competencies, expertise in other industries and opened new offices in global markets. Today, KOM International maintains its reputation as the most experienced, forwardthinking and specialized logistics and industrial engineering consulting firm in the industry. The firm's specialized services provide significant financial and customer service benefits to companies as small as $5 million to as large as $200 billion in sales across the manufacturing, wholesale and retail industry sectors. KOM SERVICES About KOM International: KOM International is a global logistics and supply chain consulting firm that helps companies to improve service levels and reduce operations costs. Over the past 46 years, KOM International has successfully completed 3,600 logistics consulting projects resulting in increased competitive advantage for our clients through world-class distribution operations and technologies. Supply Chain Expertise: KOM International is a professional consulting firm that provides the following supply chain and logistics experience to clients in many industry sectors. The Goal: KOM International s goal is to provide its clients with the lowest logistics costs from vendor to shelf with the right product, in the right place, at the right time, for the right price, within the right configuration for each. - 2 -
LOCATIONS Global Consulting Practice Company Headquarters: KOM International, Inc. 300 St-Sacrement, Suite 307 Montreal, Quebec, Canada, H2Y 1X4 Tel.: 1 (514) 849-4000 International Offices: KOM International, Inc. Toronto 30 Library Lane Markham, Ontario Canada L3R 5T8 Tel.: 1 (877) 566-8832 KOM International S.A. De C.V. - México TEC de Monterrey, Calle del Puente 222 Edificio CEDETEC Nivel 3 Col. Ejidos de Huipulco Ciudad de México D.F., C.P. 14380 Tel.: +52 55 5671-1870 KOM C.A. - Venezuela Av. Francisco Solano López Centro Empresarial Sabana Grande Piso 17, Ofic. 17-04, Sabana Grande Caracas 1050 Venezuela Tel.: +58-212-740-5664 - 3 -
STRUCTURE & STABILITY Over 4 decades of consulting experience Revenues by Project Type Strategic Studies 40% Detail Study and Design 30% Implementations 20% Other 10% European & South American Clients Combined annual sales over $5 M Revenues: 65% America 10% Europe 25% South America/Other 4 Montreal Partners, 4 Partners in Mexico and Venezuela 40 plus full time employees in all locations PROJECTS KOM Montreal has successfully completed an average of 80 projects per year over the last 3 years KOM Montreal may have anywhere between 35 to 50 active projects at any given time throughout the fiscal year Over the course of our history we have served 1,000+ companies on 4,000+ mandates Logistics our specialized service area 100% unbiased advice no hidden agenda no supplier relationships Unique focus on distribution and logistics Total professional logistics experience - 4 -
We don t build buildings or sell equipment Your building will be properly sized You will get best bid prices We implement our recommendations We make it happen! Client-focused We work closely with our clients throughout projects Unbiased advice No hidden agendas Our only income is derived from selling our experience and advice Build from the details up Practical flexible solutions for changing business environments KOM develops expertise on your team We encourage your team members to partake in the audits, data analysis, evaluation stages Knowledge transfer approach requires strong team work All work is performed on agreed-to alternatives - 5 -
SECTION 2 CAPABILITIES KOM International provides innovative and proven supply chain consulting services that enable companies around the world to manage logistics activities more effectively. Since 1963, KOM International has worked with many of today's fortune 500 companies across a wide spectrum of industry sectors to deliver world-class customer service levels at the least possible cost. KOM International is a leading supply chain consulting firm for several fundamental reasons: Our reputation for customer commitment, integrity, value, experience and a resultsoriented approach Our practical and proven solutions translate directly into savings We implement what we recommend from strategic studies to detailed facility changeovers KOM International is unbiased - our advice is not influenced by outside agendas or supplier relationships We take pride in our 46 year track record as a successful supply chain consulting firm and rely on the expertise of our management team of the following practice leaders to assist our firm clients to convert today's supply chain challenges into opportunities. - 6 -
SECTION 3 CORE COMPETENCIES KOM International is a global supply chain consulting company. We are committed to our clients need to manage their logistics and supply chain activities more effectively. The depth of our commitment to providing valuable supply chain expertise has kept us in business for over four decades. Our firm s core competencies include: Supply chain strategy; Actionable Business Intelligence (ABI); Distribution center design and layout; Improving existing distribution operations; Supply chain technology solution selection and implementation; Warehouse and transportation management consulting. Our clients trust us to develop innovative strategies to assist in their pursuit of supply chain excellence. We offer them solutions that increase sales, reduce operating expenses, and improve customer service levels. Why KOM International? Foremost you want to select a consulting firm you can trust to deliver an unbiased opinion. At KOM International we are independent supply chain specialists. Sharing over four decades of supply chain expertise with our clients is our only business. Track Record Client surveys prove that over 80% of our clients keep coming back because they trust us to deliver the highest level of supply chain consulting available anywhere. The KOM Guarantee We guarantee you receive only the highest quality supply chain consulting and implementation services. We make only recommendations that are in your company s best interest, that are realistic, actionable, and translate into real savings. Trust isn t that what it s all about - 7 -
AN ONGOING CASE EXAMPLE Project History of Sobeys and KOM International (Late 1960s present) KOM is proud to have a number of clients we ve been working with for over two, three, and in the case of Sobeys, nearly four decades. We believe the case below serves as a strong testament to the value we offer. Nearly 40 Years and Over 50 Projects KOM and Sobeys Inc: Sydney Kom, our firm s founder, began work with Sobeys, a top Canadian grocery retailer, in the late 1960s. Sobeys operates 633 corporate stores, encompassing supermarkets, convenience stores, drug stores and fuel centers, and supplies 732 franchised stores across Canada. From 1967 to 2005 KOM International has successfully completed over 50 projects for Sobeys in Atlantic Canada, Ontario, Manitoba and Quebec, including 14 projects for the affiliated Oshawa Group. Through the 1990s KOM assisted with Cooler expansions, Crossdocking initiatives, and a Facilities/Mixing Center impact study to name a few. Some of the most recent projects are outlined below. 1. Sobeys Quebec - 1999 Network study to optimize the use of the Quebec City, Riviere-du-Loup and Oromocto facilities. 2. Sobeys Quebec - 2001 In order to improve service levels KOM was hired to update the Sobeys Quebec delivery parameters within the Manugistics Routing System (MRS). 3. Sobeys Atlantic Canada 2001 KOM undertook a Logistics Strategy Study to for Sobeys Atlantic Canada to support retail banner strategies and growth through 2007 commensurate with service and contingency needs. - 8 -
Note that Charlie Steele, Vice President, Distribution and Logistics of Sobeys made a presentation to the 2007 KOM Klinic, the firm s 24 th annual conference for distribution executives, outlining the process, lessons learned, and success of this strategic initiative. 4. Sobeys Quebec - 2001 KOM undertook an evaluation of the complete re-rack of the Montreal North warehouse to maximize the storage capacity and item fronting, and aid in improving product flow. 5. Sobeys Manitoba - 2003 KOM assisted Sobeys in Manitoba with detailed material handling layouts for its expanded/re-set facility there. 6. Sobeys Atlantic Canada - 2004 KOM assisted Sobeys Atlantic Canada to develop a Cost to Serve Model to determine the cost of serving each customer and banner to price wholesale services correctly. 7. Sobeys Ontario - 2005 Following completion of Sobeys internal strategic study of the distribution network requirements to support operations in the Ontario market KOM was hired to review the findings to verify the conclusions. - 9 -
SECTION 4 KOM INTERNATIONAL MONTREAL PARTNERS Allan Kohl President and Chief Executive Officer Allan Kohl is President and Chief Executive Officer of KOM International responsible for the company's Global operations. Mr. Kohl works out of corporate headquarters in the Montreal office and overseeing operations in the various corporate offices including Montreal, Mexico City, Caracas, Bogotá, Santiago, and Sao Paulo. As President and CEO Mr. Kohl brings extensive experience to his leadership role. Mr. Kohl originally joined KOM International in 1972 as a project manager and has since managed several hundred logistics consulting projects involving completely automated materials handling systems, warehouse management systems, radio frequency and bar coding technologies, mechanized sortation facilities and other advanced distribution concepts. Over the past 35 years, Mr. Kohl has consulted for some of the largest and most sophisticated distribution firms in Canada, United States, Europe and Asia. As a Senior Partner at KOM International, Mr. Kohl manages a team of professional logisticians dedicated to serving clients across diversified sectors of the economy including manufacturers, wholesalers and retailers in the grocery, food service, apparel, recorded music/video, books, sporting goods, firearms, automotive parts, mail order, health and beauty care, pharmaceuticals, and government. Mr. Kohl has been published in numerous distribution trade journals and has been a featured speaker at industry trade shows including FMI and FDI. Mr. Kohl has a Bachelor of Mechanical Engineering, a Diploma in Management and a Master of Business Administration from McGill University. - 10 -
Keith Swiednicki Senior Partner Keith Swiednicki is Senior Partner at KOM International, responsible for the company's Food Consulting Practise, as well as the firm's marketing efforts. As Senior Partner, Mr. Swiednicki manages a team of professional logisticians in all aspects of logistics strategy, distribution center design and implementation for food industry distributors and manufacturers, and for many other Fortune 1000 companies throughout North America and Europe. His team successfully consults on projects involving supply chain strategy, the design, optimization and implementation of distribution facilities, logistics operations and supply chain technology solutions. Mr. Swiednicki originally joined KOM International in 1984 as a project manager. Over the years, he has successfully completed hundreds of logistics consulting projects that have contributed to his reputation today as a highly respected logistics and supply chain consultant well known to the food industry. Mr. Swiednicki has been published in numerous trade industry publications including: Grocery Distribution, U.S. Distribution Journal and Food logistics. Mr. Swiednicki is a member of WERC, FDI, FMI, Canadian Material Handling Society and the Canadian Professional Logistics Institute. Mr. Swiednicki has a Diploma in Management from McGill University, a Professional Logistics Certification and a degree in Building/Architectural Technology. - 11 -
Charles Fallon Partner Charles Fallon is Partner at the firm's Montreal Headquarters. His responsibilities as Partner include business development for KOM International as well as planning and development of supply chain projects. Mr. Fallon has over 10 years of experience in logistics and supply chain consulting for leading companies across a wide range of industry segments in North America, Mexico, and Europe. He has successfully participated in projects involving strategy development, design and implementation, master site planning, distribution network optimization, and facility resets and changeovers. Mr. Fallon is fluent in both English and French, and has a degree in Engineering from the University of McGill in Montreal. Mike MacRae Partner Mike MacRae is Partner at the firm's Montreal Headquarters. His responsibilities as Partner include business development for KOM International as well as planning and development of supply chain projects. Mr. MacRae has been working in engineering consulting for the past ten years and has led several projects related to logistics and distribution systems and space allocation for Grocery, General Merchandise, Health and Beauty Care, Pharmaceuticals, Electrical and Electronics, Plumbing and Auto Parts clients all over North America. His experience includes strategic planning, detailed planning, master site planning, network and transportation planning and implementations. Mr. MacRae is fluent in both English and French, and has a degree in Engineering from the University of Quebec in Chicoutimi. - 12 -
SECTION 5 COMPANY CONTACT Denise Beamish Marketing Manager KOM International Inc. 300 St-Sacrement, Suite 307 Montreal, QC H2Y 1X4 Tel: (514) 849-4000 Fax: (514) 849-8888 E-mail: db@komintl.com Website: www.komintl.com Global Leaders in Supply Chain Consulting - 13 -