Fraser Direct Overview

October 2015 © 2015 Fraser Direct Distribution Services Ltd.1WestRock / Energizer Holdings – July 2015 © 2015 Fraser Direct Distribution Services Ltd.1RockTenn / Energizer Holdings – June 2015 © 2015 Fraser Direct Distribution Services Ltd.1

BAKERY SHOWCASE 2016

MAY 3, 2016

General InformationFraser Direct Distribution Services Ltd. 100 Armstrong AvenueGeorgetown, ON, L7G 5S4Canada

Telephone: 905-877-4411Fax: 905-877-4410www.fraserdirect.ca

Your Full Service Supply Chain

Partner

2

We are pleased to tell you about our company. Our mission is to become best in class by helping our customers become best in class. Your Supply Chain can and should be your competitive advantage. This can be achieved through sincere and honest customer partnerships. Our team is fully and wholly dedicated to your cause. Only when you are successful, can we be considered successful.

• We are focused on forming long-term partnerships with our clients.

• Our operations are scalable to service your growth projections and target markets.

• We have proven experience servicing Food Ingredients, Consumer Packaged Goods, Natural Health

Products, Automotive and Publishing firms.

• Quality is built into all aspects of our operation.

• Our only priority is the seamless delivery of your service.

• Customer service is not our job, it’s our culture.

• We have what it takes to help you achieve your goals. If we can’t add value, we won’t participate.

If you have any questions with respect to the information in this presentation, please do not hesitate to contact me.

Yours truly.

Thank you for your interest in Fraser Direct!

Steve HoggVP, Logistics & Customs

April 2016 © 2016 Fraser Direct Distribution Services Ltd.33

Our Services at a GlanceOutboundInbound

• Clearance - import / export• HST/GST/NAFTA expertise

• B2B & B2C fulfillment, pick & pack• Consolidation – US & Canadian orders• Freight forwarding• EDI Capable (Custom EDI and X12)• Robust Quality Assurance (QA) program • Natural Health & DIN Products

• Customer service enquiries• Internet order capture• Data entry• Invoicing, credit card

processing• A/R management,

collections, bank deposits

• Custom condition sort and disposition• Return to stock• Repairs and relabeling• Salvage and disposal• Consolidation and export• Information analysis• Credit issuance

• Rate shopping, carrier negotiation and qualification• Economies of scale / shared freight• Freight audit & pay

• Transportation management, international/domestic • Air, ocean, intermodal• Logistics design & optimization • Freight audit & pay • Controlled goods certified• Risk management and insurance• Company-owned fleet for local transport

• Perpetual inventory• Online reporting • Cycle counting, re-slotting• Inventory adjustment control• Lot, serial, expiry date and

temperature control• FIFO / FEFO allocation• Product quarantine and

recall program• Ad hoc reporting and

analysis (velocity, minimum re-order point)

• New product launches• POS display assembly and distribution• Custom kit, Overwrap, Co-pack, Glue Tip on• Price sticker, bar-code, Instant rebate coupon• Repack, Relabel, Shrink wrap, polybag

• Consumer sampling distributions, sales and marketing

team samples, GS1 supply

Supply Chain Management & Logistics

Customs Brokerage

Returned Goods Management

Warehousing & Fulfillment

Outbound Freight Management

Marketing Fulfillment & Distribution

Inventory Management

Client Service

Project Management• Planning and consulting early in project• Cost savings analysis• Start to finish management

• Program execution, and critical path management

• Consumer Goods Field Support

• Packaging and freight analysis• Progress reporting, SLAs, and key milestones• Confirmation of shipping and delivery detail


•Simply put, there is no function of your supply chain that we can’t help you improve.

• We will help optimize your ‘total cost to serve’ scenarios, allowing you to deliver a better customer experience while maximizing profitability.

• We will help leverage your current supply chain relationships to create an overall competitive advantage.

• We will help reduce your workload and increase accountability.

•We will provide the visibility necessary for tactical and strategic decision making.

How We Deliver• Experienced management team

• Quality Management and Improvement culture

• Industry leading technology for operations execution, system visibility and real time analytics

• Operational and customer service excellence

• Solutions developed in partnership to enhance your business model

• Unparalleled value add throughout all activity and processes

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Adding Value Through Supply Chain Integration

PurchasingCustomer Service / Sales

Transportation

Finance / Management

Warehouse / Inventory

Measurement and Accountability

Freight Budget Cost Reductions

Supply Chain Visibility and

Cohesion

Process Improvements and

HR Savings

• Arrange and consolidate inbound orders

• Coordinate PO revisions

• Book appointments

• ERP freight rate entry by PO

• Vendor communication

• Quota load coordination

• Carrier invoice audit and payment

• ERP reconciliation / GL reporting

• Excess cost control / charge back documentation

• Freight activity reports and KPIs.

• Delivery scheduling

• Inbound/outbound status updates

• Milkruns/transfer freight

• Freight claims facilitation

• Market quotes and pricing

• Arrange outbound orders


• Customer communication re: freight

• Complete and forward customs documentation

• Carrier procurement

• Quality and risk management

• 24/7 shipment monitoring

• Logistics design and optimization

• Import/export freight forwarding

PurchasingCustomer Service / Sales

Transportation

Finance / Management

Warehouse / Inventory

Measurement and Accountability

Freight Budget Cost Reductions

Supply Chain Visibility and

Cohesion

Process Improvements and

HR Savings

• Arrange and consolidate inbound orders

• Coordinate PO revisions


• ERP freight rate entry by PO

• Vendor communication

• Quota load coordination

• Carrier invoice audit and payment

• ERP reconciliation / GL reporting

• Excess cost control / charge back documentation

• Freight activity reports and KPIs.

• Delivery scheduling

• Inbound/outbound status updates

• Milkruns/transfer freight

• Freight claims facilitation

• Market quotes and pricing

• Arrange outbound orders


• Customer communication re: freight

• Complete and forward customs documentation

• Carrier procurement

• Quality and risk management

• 24/7 shipment monitoring

• Logistics design and optimization

• Import/export freight forwarding

Adding Value Through Supply Chain Integration

April 2016 © 2016 Fraser Direct Distribution Services Ltd.


Leading edge client portal data analytics

Fraser Direct’s Big Data analytics platform is available in real-time for analysis. Further, we will maintain up to three years of historical data for trending and comparison purposes.

C-Suite• Executive line of sight – from

strategy to operations• Empower to drive forward

Operations• Balance supply/demand volatility• Measure KPIs and 3PL performance

against service level agreements

Finance / Accounting• Working capital investment• Activity Based Costing• Expense trending & analysis

Customer Service• Live order and

inventory monitoring• Shipment track &

trace and delivery verification

IT & Network Support• Compliments Host

ERP / EDI• Reduced reporting

bottlenecks• SaaS platform


Transportation Management / Logistics

• Fraser Direct currently manages tens of thousands of customer shipments annually with a success rate in the 99% range.

• There are many possible solutions but only one BEST one. We are experts at identifying the solutions that best meet your needs in a cost effective manner. Then we source, qualify and oversee the most appropriate providers.

• Dedicated Logistics Coordinators manage all aspects of every shipment from beginning to end and communicate with ALL stakeholders.

• Supply Chain Analysts continually monitor activity in search of opportunities for improvement, collaboration and efficiency gains.

• All activity is captured and reported via customized dashboards and reviewed at regular stakeholder meetings.

• There are no dropped balls, no missing freight, and no unnecessary costs incurred!

Modes

• Domestic and cross border truckload and LTL• Dry, temperature controlled • International air and ocean freight• Expedite / emergency – all modes• Intermodal / Multimodal

October 2015 © 2015 Fraser Direct Distibution Services Ltd.8

Customer XYZFreight Activity Summary

2011 2012 2013 YTD Jan Feb Mar

TotalShipment Activity Metrics# of Shipments 1635 1708 1886 1,016 220 174 168 On-time performance 98.6% 97.6% 99.1% 97.8% 97.3% 99.4% 96.6%

Freight expendituresBase freight 1,473,520$ 1,473,122$ 1,487,265 428,393$ 150,030$ 113,682$ 108,804$ Fuel surcharge 436,446$ 528,070$ 589,401 174,070$ 58,499$ 47,204$ 45,662$ Accessorials -$ 30,524$ 42,426 18,662$ 7,442$ 7,324$ 10,401$

Total 1,909,966$ 1,766,709$ 1,867,905$ 621,125$ 215,971$ 168,210$ 164,867$

Accessorial FeesAppointment fees 8,003$ 18,760$ 4,780$ 1,940$ 1,500$ 1,340$

Waiting time 4,430$ 6,011$ 1,740$ 719$ 469$ 552$

Document Prep 3,470$ 1,710$ 375$ 150$ 125$ 100$

Cancellations 1,250$ 1,310$ 975$ 125$ 500$ 350$

Stop charges 1,900$ 1,650$ 350$ 50$ 150$ 150$

International freight charges 542$ 4,549$ 349$ 150$ 4,050$

Dropped Trailer 4,100$ 1,500$ 1,400$ 1,200$

Other 2,014$ 1,855$ 616$ 1,334$ 1,860$ 1,260$ Total 26,542$ 62,108$ 17,485$ 6,167$ 6,154$ 9,002$

Total Kg's shipped 14,767,832 14,779,410 15,773,789 4,776,988$ 1,666,568 1,305,552 1,181,783

Base freight/kg 0.100$ 0.100$ 0.094$ 0.090$ 0.090$ 0.087$ 0.092$ Fuel surcharge/kg 0.030$ 0.036$ 0.037$ 0.036$ 0.035$ 0.036$ 0.039$ Accessorials/kg -$ 0.002$ 0.005$ 0.004$ 0.004$ 0.006$ 0.009$ Total 0.129$ 0.137$ 0.136$ 0.130$ 0.130$ 0.129$ 0.140$

Sample Monthly Freight Activity Report – Summary TabBroken out for inbound & outbound, for every mode, at each of this customer’s facilities


Customs Brokerage & ClearanceCustoms Brokerage Services

• Fraser Direct is a licensed Customs Broker with Canada Border Services Agency (CBSA).

• Our customs department is available 24/7/365 to arrange clearance for shipments, and to respond live to shipment issues or delays.

• Our Customs Brokers work with all departments of the Federal Government to ensure customs entry compliance and minimize delays.

Certifications

Fraser Direct is a member of CBSA’s Partners in Protection (PIP) program and is ISO 9001:2008 Registered.

PIP is a joint US/Canada security accreditation.

Pre-Release via PARS Tracker – www.fraserdirect.ca

Fraser Direct enables shipments to be pre-released at the border, and tracks inbound shipment status on the web.

• Our technical expertise and automated systems ensure accurate rating and payment of customs duties and taxes to Canada Revenue Agency, and assist clients with all record keeping requirements.

• Clients can depend on Fraser Direct for advice and assistance in completing Canada Customs Invoices, renewal and maintenance of blanket NAFTA Certificates of Origin, HS classification for new products, and any other customs requirements.


Warehousing / Fulfillment / Distribution

Population by Province (September 2015)

13.79

8.26

4.68

4.20

1.29

1.13

0.94

0.75

0.53

0.15

0.04

0.04

0.04

- 5 10 15

Ontario

Quebec

British Columbia

Alberta

Manitoba

Saskatchewan

Nova Scotia

New Brunswick

Newfoundland

Prince Edward Island

Northwest Territories

Yukon

Nunavut

Population (millions)

2015 Shipping Points & DC Location

Fraser Direct’s warehousing facilities are located in the Greater Toronto Area and ideally located to reach over 65% of the Canadian population within 1 business day.


Our Brand New Facility 8300 Lawson Rd. Milton ON L9T 0A4

1,580 solar panels

300 kW generated

• Adjacent to Highway 401 in the Greater Toronto Area.

• 105,000 sq. ft, 35’ ceilings, LEED certified.

• Expansion of CPG fulfillment operations, and NHP/DIN distribution to Retail and Consumers.

• Increased storage and handling

capacity.

• Effective June 2016.


Inventory Control – Our Core CompetencyInventory Management CapabilitiesFraser Direct’s inventory management practices serve as the foundation of quality in our fulfillment operations, ensuring:

• Prompt reconciliation of receiving, ensuring goods available for sale;• Streamlined re-order points, and lead times for replenishment stock and stock transfers;• Increased accuracy of pick and pack operations; and• Increased customer satisfaction by minimizing out-of stock and backorder occurrences, improving order turnaround.

Our inventory capabilities are summarized below, and are customizable to client requirements:

Inbound:• Record pending shipments and details;• Follow up to confirm timing on critical path;• Request and follow up for advance packing list;• Arrange delivery appointments with inbound carriers.

Physical Receiving:• Report arrival;• Report Over/Short/Damage on initial unloading to Bill of Lading;• Capture and record carton dimensions and weight and pallet build up details to facilitate outbound planning;• Attach Fraser Direct item number and build inventory record;• Prepare Fraser internal Purchase Order with expected items and quantities;• Perform QA receiving to count and verify items and quantities against Purchase Order;• Record lot # and expiry dates for all product;• When possible, take image of each item received or flat scan of printed elements;• Send receiving report with image to client item owner to gain approval to release to ship.


Inventory Control continued… Storage:• Follow storage or co-storage rules when required;• Temperature controlled if required;• Quarantine and Recall available (mock recalls conducted annually);• Cycle count program confirms inventory twice annually;• Lot and serial number controls;

•Returns Logistics:• Customized inspection and condition sort upon return;• Lot and expiry date recorded;• Refurbish as approved;• QA receiving and reporting as above;

Inventory Reporting:• Daily, weekly, monthly (per client specifications), and on Fraser Direct web site for Client and Consultant access;• Shipment report with tracking number;• Back order reporting;• Quarantined or blocked items;• Inventory status report with lot number, serial number, expiry date, product status;• Prompt obsolete or inactive inventory reporting and CSR follow up with item owner to minimize storage costs;• Inventory monitoring re: rate of movement, reorder point, and lead time to prompt item owner to take action (i.e. reorder, move slow inventory, use product close to expiry, etc.).


Marketplace Integration

Fraser Direct can connect our warehouse to 50+ of the most widely used e-commerce shopping carts and online marketplaces with minimal lead times for our clients. We offer seamless, reliable and timely exchange of:

•Orders•Shipment information•Inventory updates


Fraser has dedicated on-site Retail Compliance staff who review all major retailer routing guides on a regular basis and update our Standard Operating Procedures to reflect specifications for both store and distribution centre deliveries.

Our Client Service, Operations and Transportation staff are fully trained and follow retailer protocols for: Order preparation Carton labeling Pallet buildup, Pallet tags ASN Packing slip, Bill of Lading Delivery requirements and appointments (book or meet pre-booked)

Fraser Direct has partnered with SPS Commerce, an industry leader in Retail Supply Chain integration. This relationship enables us to exchange compliant data with our clients and their retail customers. We can set up new partners easily and access the most up-to-date label and EDI document specifications for hundreds of trading partners.

Retail Mass Market Compliance

Seamless EDI Integration With Retail Trading Partners

832 Sales Catalog

846 Inventory Report

947 Inventory Adjustment

943 Inbound Stock Alert

944 Inbound Confirm

940 Order Alert

945 Outbound Confirm

810 Invoice

Retailer

Inventory Management

Order Processing

Financials

Shipping

Billing

Receiving

Client Fraser Direct

Inventory Control

850 PO

856 ASN

855 PO Receipt

EDI Transactions Sets & Select Retailers Served

16April 2016 © 2016 Fraser Direct Distribution Services Ltd.

Independents Served



Select QA Certifications & Affiliations

Agency Qualifications We are authorized to import and ship natural health products and ingestibles (site license 301010). We are also able to store,

pick and ship DIN product.

We currently transport food products for a leading North American ingredient supplier, and are compliant with Global Food Safety Initiative (GFSI) standards for safe and secure storage.

Our Supply Chain Management practice is ISO 9001:2008 certified, as it applies to both international and domestic freight.

We successfully completed our last independent audit in September 2015, and achieved the following Quality Management System objectives:

– Client Satisfaction 99.9% (Target: 99.5%); - Improvement Opportunity (IO) for error free orders 98.6% (Target: 98%); On-time Performance 99.8% (Target: 98%); and, Supplier Performance 99.8% (Target: 99%).

We have worked with Procter & Gamble since 2003, and have over 400 effective Standard Operating Procedures (SOPs) in place to meet their stringent QA standards.

Our QA program is self monitored through a Self Inspection Program (SIP), and independently audited on a routine basis. Our most recent audit resulted in a QA rating of 99.25%.

All of our clients benefit from our experience in meeting the quality demands of a major consumer goods manufacturer.

As a Customs Broker, we have a commercial security program in place with Partners In Protection (PIP).

Our program is recognized and validated by Canada Border Services Agency (CBSA).

We commit to a high standard in securing the supply chain, complying with physical, infrastructure, and procedural security measures when importing and exporting goods to Canada.

As a member of the International Warehouse Logistics Association, we have access and exposure to the latest technology and best practices to turn your supply chain operations into a competitive advantage.


Select Client Testimonials

“Fraser has made life much easier vs. the inventory management systems I’ve dealt with at some of our competitors. You’ve been an absolute all-star!”

- Purchasing Manager

“You’re awesome! Thanks so much – I told the rep you were very quick and responsive – but WOW! That was lightening fast! Thank you so much!”

- Brand Manager

““We are really happy with our relationship and the service Fraser Direct is providing to us. It is night and day compared to where we were a year ago.” (with another supplier).

- COO, CFO

“I am impressed! I received my order today, and as the pictures show, it arrived in sturdy, well packed, protected cartons, that were properly packed and timely delivered! Very Nice! :)

So, I am curious, have we changed to an Ontario Warehouse?”

- MLM Consultant, Post 3PL Switch

“Thank you so much, the customer has received their order and they are so happy! You rock stars!! I present you with the Elvis Presley Rock of Fame Award, for excellent service!”

- Customer Service

Wow! Lightening Fast!

You rock stars!

I am impressed!

Night and Day …

Absolute All-Star!

“After nearly 19 years, I am stepping away from [XYZ] Company. One of my most successful projects will no doubt be the transition to Fraser Direct to support our Canadian Distribution needs. The Fraser team has been a delight to work with and you guys are topnotch at what you do.”

- Director of Forecasting

Top notch at what you do.

October 2015 © 2015 Fraser Direct Distribution Services Ltd.20November 2014 © 2014 Fraser Direct Distribution Services Ltd.20

Fraser Direct is an enhanced Third Party Logistics provider offering one-stop shopping for Business-to-Business and Business-to-Consumer needs. Services include Global Transportation and Supply Chain Management, Customs Brokerage, Warehousing, Distribution and Fulfillment.

© Fraser Direct Distribution Services Ltd. 2016 All rights reserved.

Fraser Direct Overview

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