For internal use only. Contact: 3210 Airway Drive Mississauga, Ontario L4V 1Y

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For internal use only Contact: 3210 Airway Drive Mississauga, Ontario L4V 1Y6 905.673.5258 cme@dbschenker.com www.dbschenker.com/ca

Canada Made Easy Sales Guide For internal use only

Customer relationships, made easier. DB Schenker s Canada Made Easy program is the one-stop solution that streamlines multiple shipments moving into Canada. It s cost effective and makes moving shipments easier for your customers. Tell them about it today. 2

Introduction Dear DB Schenker sales team, DB Schenker is proud to announce our new Canada Made Easy Sales Guide. Included is the information you ll need to successfully identify opportunities and sell this flagship product. This Sales Guide can help to identify and secure opportunities that mimic what some of our largest existing clients already do. It also illustrates the various benefits our clients currently enjoy through our Canadam Made Easy (CME) solution. Finally, it should provide you with the proper technical sales and solutions answers you need to close the accounts. Canada Made Easy has been an important part of DB Schenker for over 18 years. It has also been the most successful product in North America during the last 10 years. As it continues to grow, it also boasts some of the longest standing DB Schenker-client business relationships. CME remains successful in many business verticals, such as: Automotive, Engineered Products, Lighting, Electronics, Retail & Telecommunications. And our list of client s is a virtual who s-who of market leaders: CarQuest, Endress & Hauser, Masterbrands, Acuity, Samsung, Skechers, Clarks, Wolverine, Shurline and Ciena. Canada Made Easy is a great product with easy-to-use tools your clients will appreciate: customized web-portals, easily accessible web based track and trace, end-to-end shipment status visibility including Customs Clearance, and ETA and final delivery information. CME improves your client s speed to market, with consistent, reliable, on-time delivery performance worth boasting about an amazing 98.9% of the time. Another key benefit to the CME product is our outstanding customer service. Once your new client is officially onboard, their account will be neatly placed into a CME Team, and they will be provided with a direct line of contact for day-to-day operations. Whenever your clients need to reach out to one of our CME distribution customer service specialists, they ll be greeted by the same team member every time, who is experienced enough in the industry (and with your client) to know their distribution needs instantly. Your clients will appreciate this no call-center approach. Think for a moment about what CME can accomplish for your clients: an opportunity to reach the Canadian marketplace without bricks and mortar; without dollars tied up in infrastructure, equipment, resources and inventory; and without the usual redundant, slow and challenging internal processes. When CME takes care of a shipment headed to Canada, your clients will know their freight is in excellent hands, and they will rest easy knowing their valuable goods will make it to Canada securely, damage-free and on-time, every time. Canada Made Easy truly is a flagship product with a history of success. With your help in growing it even further, CME is poised for continued success. Sincerely, Scott Cairncross Vice President and National Product Manager, Ground Freight 3

DB Schenker. Reliably delivering convenience, flexibility and value. What is Canada Made Easy? Canada Made Easy is an all modes, full service package! Canada Made Easy is a unique solution that can eliminate the need for additional warehousing between the border and delivery to one or even to multiple customers in Canada. CME offers a stress-free service for cargo heading into Canada by synchronizing the delivery requirements with cost control in the customer s supply chain, and maintaining control of the entire shipment flow from origin to destination. CME eliminates the need for customers to deal with multiple service providers for cross border shipments into Canada ultimately reducing costs, risk and points of contact while optimizing the customer s supply chain to Canada. Canada Made Easy offers all modes of transportation from Contract Warehousing/Distribution to Ocean Freight, Air Freight, Land Transportation, and Customs Brokerage. The Canada Made Easy program is designed specifically for each customer with solutions that are specific to their products, industry and unique requirements. your customer s freight into Canada from the United States or anywhere around the world. What makes us different? Our team of experts utilize our vast network of assets, transportation solutions, warehouses and connections to work with the customer and identify existing procedures, review processes and deliver flexible solutions. These solutions are focused on the customers goals on reliability, responsiveness, customs compliance, visibility and speed. Furthermore, we are able to fully control the quality of the transportation experience including the timing of delivery, and offer the necessary care and security to ensure our customers freight arrives safely and in perfect condition. Benefits at a glance: Reduced documentation and cost due to the minimization of Customs Brokerage clearances. Reduced processing time at origin. DB Schenker s Canada Made Easy service is the most efficient, visible and cost-effective solution for bringing 4

Key Benefits of Canada Made Easy compared to Integrators The obvious advantage of our Canada Made Easy program is the customer s abillity to optimize and take control of his supply chain with a solution that realizes cost savings and reduces transit. Rationalize Your Fixed Assets Cut costs by reducing inventory duplication Increase capacity utilization Minimize capital and infrastructure costs Adjust to product seasonality and availability Scalable reverse inventory programs Optimize your customer service Reduce time of order to time of delivery for your customers Shorten transit times by redesigning logistics to suit your customers needs Increase sales opportunities by reducing transaction times Shipment Status events are distributed as per your requirements, posted to Schenker s hosted website or fed directly into your IT system; with Pro-active shipment exception reporting, customized to fit your CSR requirements. Increase Shipment Visibility Shipment status is completely transparent to you, your dealers and customers from origin pick-up to final destination delivery including customs clearance process Pro-active, posted delivery times, automaticappointment process and many other non-standard features Real Key Performance Indicators based on your reporting requirements Lower Your Costs Effective soft cost reduction Fixed asset reduction Reduced transportation costs Ease of Use Single point of contact for all verticals Consolidated billing allowing for complete transaction costs EDI information transfer Target Customer Profile Companies who would benefit from using Canada Made Easy have the following characteristics: Distribution of goods into Canada Ship multiple LTL or small parcels into Canada daily or weekly Seek a JIT (Just in Time) model Consolidation needs going into Canada Expedited transportation needs within NAFTA Require Speed, Reach and Performance Seek long-term relationships Understand the value of using a company with an integrated, scheduled network that it adds a level of reliability and peace of mind. Need to distribute inventory from a Canadian Distribution Center. Need specific day delivery of their goods to coordinate with their production Manufacturer of products or components in retail, electronics, aerospace, pharmaceutical/healthcare or automotive industries Need to optimize their transportation solutions, but still require guaranteed delivery that is time-specific Can benefit from our ability to offer out of network or after hours solutions Require 24/7 customer service or on-line tools for shipment information Have security sensitive products that benefit from a controlled network 5

Solutions that simplify The CME program provides a solution to the traditional shipping still used by many Fortune 500 companies today. CME offers a stress-free service for cargo heading to Canada by synchronizing your customers supply chain and maintaining control of the entire shipment flow from origin to destination. No longer will your customers have to deal with various service providers within the delivery flow. With DB Schenker, they will reduce their costs and optimize their supply chain to Canada. Example #1 LTL shipments from the USA heading to Canada Traditional LTL Movement: The customer has multiple shipments destined directly to customers in Canada from one or multiple Distribution Center (DC) points in the USA. Traditional LTL DB Schenker LTL Terminal DB Schenker LTL Movement: This process groups individual shipments heading to Canada into one shipment, providing a seamless solution for the customer s cargo starting at pickup, through customs clearance, to our distribution center, and on to final delivery. With this solution, combining individual shipments into one consolidated shipment avoids the need for multiple customs clearance transactions. We get our customers cargo customs-cleared as one entry resulting in a reduction of customs brokerage fees for the customer. Plus, our customers stop dealing with local carriers, customs brokers and delivery carriers in another country. Once the freight has arrived at our cross-dock in Canada, we prepare each shipment for final delivery and, depending on the required delivery time, we customize the final delivery utilizing ground or airfreight service. 6 With the Canada Made Easy program, DB Schenker simplifies the entire process for the customer.

Example #2 Overseas cargo arriving into customers Canadian Distribution Centers Traditional LTL Movement: The customer has multiple shipments arriving from overseas into their own Distribution Centers in Los Angeles and/or Vancouver destined directly to customers in Canada. Traditional LTL DB Schenker LTL Vancouver Toronto Los Angeles Traditional LTL DB Schenker LTL Movement: This process takes the customers freight using the Distribution By-pass service and moves the freight directly to our cross-dock in Canada. Once the freight has arrived at our cross-dock in Canada, we prepare each shipment for final delivery and, depending on the required delivery time, we customize the final delivery utilizing ground or airfreight service. With this solution, DB Schenker simplifies the entire process for the customer plus reduces their transport costs with the Canada Made Easy program. 7

How do we solve our customers challenges? For your customer, taking control of their supply chain to Canada could be a complex task with many challenges. Instead, help your customers eliminate the need to deal with shipping, customs brokerage rules and regulations, storage and multiple carriers. Show them that DB Schenker can manage the entire process and solve their challenges. Challenge Shipment transit times are too slow, costing your client additional business. Unpredictable delivery times. No reliability. Canada Made Easy Solutions CME reduces transit time by: Providing a multi-modal solution to reduce transit times. Providing transportation mode customization to any destination. Customer tells DB Schenker when they want it there; we provide the best mode of transport for their needs. Utilizing zone skipping. Offering expedited delivery when customers need it. DB Schenker s delivery time commitment gives the customer control of the supply chain: High-level predictability lets our customers know when their order will be delivered to their customers. Consistent delivery on the days needed smooths logistics lines. Carrying inventory in Canada is not cost-effective and client s warehouse assets sit unused in off-season. CME can reduce client infrastructure costs: No need to carry inventory in Canada. Shipments arrive at DB Schenker crossdock in Canada where they are prepared for final delivery, instead of inefficient client warehouse and dock space. Client can minimize capital and infrastructure costs by reducing unused seasonal assets; increasing capacity utilization and allowing greater flexibility and availability in high season. Scalable reverse inventory programs allow client to sell greater quantities at premium pricing, without the need for client to acquire warehouse assets. 8

Challenge Customs clearance fees are higher than expected. Need to reduce cost per order. Canada Made Easy Solutions CME reduces Customs costs: Customs Brokerage clearances are minimized. DB Schenker simplifies customs clearance by grouping several shipments destined to Canada into one reducing documentation and cost considerably, while expediting flow and enhancing reliability. Customer service receives frequent complaints about client s shipping speed, consistency and/or return procedures. CME helps optimize client customer service operations: Shorten transit times by redesigning logistics to suit your customers needs. CME reduces your customers processing time at origin as well as ship time thus reducing Time of Order to Time of Delivery for your customers. Increase sales opportunities by reducing transaction times. Shipment status events are distributed as per client requirements: either posted to DB Schenker s hosted website or fed directly into their IT system. Customized, proactive shipment exception reporting allows clients to address problems earlier, earning customer trust. DB Schenker can manage client s Returns process through CME. Lack of visibility through supply chain causes client frustration. Complicated IT systems add overhead and complexity. It s also challenging to implement new systems due to their complexity. CME offers full visibility of the supply chain: Shipment status is completely transparent to client, dealers and customers from origin pick-up to final destination delivery including the customs clearance process. CME offers proactive notifications, posted delivery times, automatic appointment process and many other non-standard features. Key Performance Indicators based on client reporting requirements allow management to see bottom-line results more clearly. CME s ease-of-use makes integration painless: Client has a single point of contact, knowledgeable and focused by vertical. Consolidated billing allowing for complete transaction costs, and reduce complexity of accounting. EDI information transfer conforms with client s needs for data and makes for simple integration. CME offers a friendly web-based client interface which is powerful, offering minimal learning curve for users. Logistics costs are impacting customer s margins with excessive vendor follow up. CME lowers logistics costs and improves the bottom line: CME is a great tool for effective soft cost reduction. CME reduces client infrastructure needs, thus providing fixed asset cost reductions. CME is a more efficient method of delivery, which reduces transportation costs. Improved speed to delivery offers greater sales opportunities. Improved predictability not just satisfies clients customer service needs, but allows for smaller inventory needs in manufacturing situations. Customs costs are reduced, once again enhancing customer s bottom line. 9

Why Choose DB Schenker We ve been importing products for our customers for over 50 years and today, DB Schenker has the expertise and experience to provide the customer with a complete and hassle-free logistics alternative. Providing efficiency and reliability: Forwarding multiple shipments door-to-door from the USA to Canada through tightly connected Land Transport terminals with daily linehaul departures means more efficient and more reliable deliveries. Reducing cost: Cuts client costs by reducing inventory duplication, increasing capacity utilization, minimizing capital and infrastructure costs, and allows them to adjust to product seasonality and availability and create scalable reverse inventory programs. Optimizing customer service: Reducing time of order to time of delivery, and shortening transit times by redesigning logistics to suit customer needs. Therefore, increases sales opportunities by reducing transaction times. Shipment Visibility: Shipment statuses are completely transparent to our customers, and their dealers from origin pick-up to final destination delivery including customs clearance processes. How can I prequalify a customer? Ask your prospects or customers the following questions: Do you ship to Canada? Do you ship multiple LTL or small parcels into Canada? Are you looking for a Just in Time solution? Are you looking to reduce your customs brokerage fees due to multiple cross-border shipments? Do you manage your own Distribution Center in Canada? Are you receiving consistent transit times to your Canadian customers? Are you looking for predictability on lead-time? Easy to use: CME offers single point of contact for all verticals. Providing consolidated billing, allowing for complete transaction costs and EDI information transfer. 10

FAQ Q: What s the best way to sell Canada Made Easy? A: Discover the customer s logistics problems. Address them by learning how CME solves customer challenges. Q: Do customers need a different login or website? A: No, the CME product is part of the product family at DB Schenker. Information about the CME product can be found on the Canada website at www.dbschenker.com/ca. Q: I haven t used the Canada Made Easy tools yet. How will my customers learn? A: We have a Customer User Guide. Also, the CME team is available for support; contact them as needed. Q: Where can my customer get more information about Canada Made Easy? A: You can visit the Canada website at www.dbschenker.com/ca to review more information about the Canada Made Easy (CME) product, or contact Scott Cairncross directly at 905-673-5258. The CME team is always available to answer any questions you have at cme@dbschenker.com. Q: Who is the ideal customer? A: Look for the following: Customers who have distribution into Canada; who are shipping multiple LTL or small parcels into Canada daily or weekly; who are looking for a Just in Time model; who have shipments arriving into their own Distribution Center via various service modes; who have consolidation going to Canada; are based anywhere in the world; and who have inventory in a Canadian Distribution Center. DB Schenker. Reliably delivering convenience, flexibility and value. As a major manufacturer and distributor of lighting solutions with over 100,000 SKUs, we needed a logistics partner to help us move our products to dealers and customers throughout North America. DB Schenker s Canada Made Easy team looked at our logistics operation and reduced our costs by eliminating multiple, redundant inventories. They decreased delivery times, increased inventory turns, enhanced shipment visibility to all of our stakeholders and provided customs clearance and compliance with one supplier. Director of Logistics for a major lighting products provider 11