1. OUTOFSIGHTOUTOFMIND FOUR CURRENTISSUES THAT EFFECTTHE ABILITY TO OPTIMIZE LOGISTICS

2. Areas Covered

Significance of Logistics

Four Strategic Challenges

Emerging Trends

Innovation

3. 4. 5. Evolution of Logistics

PAST

PRESENT

FUTURE

6. What % of gross sales are logistics costs?

For companies, 5% to 25% of gross sales are logistics costs, depending on business, geography and weight/value ratio

7. U.S. Logistics costs rise to1.3 TrillionDollars in 2008 SIGNIFICANCE TO U.S. ECONOMY Source:Gilmore, Dan,State of the Logistics Union 2009 , Supply Chain Digest, 6/17/09 This represents an annual Dollar increase of approximately$450 Billion Dollarsbetween 2003 and 2007 8. LOGISTICS VERSUS G.D.P. 23.3%17% 7.15% 9.

Only 37% percent of senior executives at large, U.S.-based industrial manufacturers responding to a recent PricewaterhouseCoopers Manufacturing Barometer survey believe their companies' current distribution network and logistics approach is very effective or extremely effective

Source: Terry, Lisa,From the Back Room to theBoardroom: Logistics Gets on the Agenda,www.inboundlogistics.com , July, 2008 10. IMPORTANCE OF LOGISTICS TODAY

NOTHING HAPPENS WITHOUT IT

Logistics has moved from the backroom to the boardroom

Dynamic nature of the logistics industry

11. TOPICS

Infrastructure Underinvestment

Regulation & Compliance

Energy

The Impact of the Current Recession

12. InfrastructureUnderinvestment 13. 14. I-710 Corridor from the Port of Long Beach I -710 Under normal conditions I -710 During Port Shutdown 15. Land Side Access

As of 2005, congestion resulting from landside access challenges was estimated to cost as much as $200 billion, wasting 2.3 billion gallons of fuel and 3.7 billion man-hours annually (USDOT MARAD 2005)

16. 17. 18. Auto Infrastructure& Congestion

Each year, 42,500 people are killed

2.5 million are seriously injured in more than

6 million motor vehicle accidents

Accidents/Traffic cost Americans $365 Billion per

year = $1 Billion a day = $1,200 per American

The Surface Transportation Authorization Act of 2009Committee on Transportation & Infrastructure,House of Representatives Motor vehicle crashes = leading cause of death of children & peopleages 3 34 years old. 19. Domestic air-traffic delays last year cost the U.S. Economyas much as $41 billion- Joint Economic Committee Report, 2008 20. Regulation & Compliance 21. 22. Cap & Trade 23. Government Agencies 24.

The U.S. Department of Transportation website, underregulations.govboasts over 1.2 Million pages of Regulatory and adjudicatory information for easy research & referral

25. 26.

"Gas is so expensive SUV now stands for sport utility victim."

--Jay Leno

ENERGY 27. Fuel bills totaling in the billions

Every additional $1 per barrel of oil costs the domestic U.S. airline industry over $400 million

A one-penny increase in the price of diesel annualized over an entire year costs the trucking industry an additional$391 milliona year. -American Trucking Association 28. The Price of Fuel 29. Future Demand Source: OECD/IEA -2008 30. PEAK OIL Source:www.thesocialcontract.com , May 29 th , 2005 31. THE CURRENT ECONOMIC STORM 32. 33. International air cargo is expected to slump 17% this year World airlines are flying towards a combined global loss of $9Billion - IATA (International Air Transport Association) 34. Challenging times for the air cargo industry 35.

Idled ocean container capacity hit a new high of 1.41 million TEUs, or 11.3 percent of the world fleet on March 16, with 484 ships lying at anchor as carriers continued to retrench amid declining cargo volumes on most liner trade routes.

Citing the London based shipbroker Clarkson Plc the association said in a statement on July 1st that new shipbuilding orders worldwide totaled 1.6 million DWT in the first five months down by 98% from a year earlier.

For the year to date, Los Angeles and Long Beach remain 16% and 29% behind, respectively, on total containers handled.

36. 37. Trucking

New truck orders down 50% year over year

U.S. For-Hire Trucking Industry employmentdeclines 124,700 in the last 12 months.

4,000 company failures per year Avondale Partners

NAFTA Surface Trade Volume down 27% year over year - USDOT

38. WHAT ABOUT THE FUTURE? 39. Performance today is more important than ever 40. Industries rely on critical logistics

For example:

• Live television broadcasting

• Medical equipment and supplies

• Aerospace /Aviation

• Network equipment (Communications, IT systems, and point of sale )

• Food production & service

• Printing, publishing & graphic arts

• Critical parts and service contracts

• Just-In-Time Manufacturing

• Tradeshow and events

41. 42. They agree: logistics offers a competitive & strategic advantage

In North America and Europe, 87% of user respondents agree that logistics represents a strategic, competitive advantage for their companies

Source:The State of Logistics Outsourcing in 2008,Capgemini, 2008 43. Emerging trends

Changing logistical managementas supply chains intensify, managers will need to know more and respond more quickly to take advantage of positive changes.

Source: State of Logistics Union 2007,Gilmore,Dan,Supply Chain Digest, June 2007, Robert Malone on Logistics, Forbes Magazine, 12/27/07 Two major trends have surfaced in transportation/logistics:

Logistics outsourcing-to reduce costs, take advantage of expertise or new options & technologies, companies are looking to 3 rdparties for their logistics solutions

44. Dont let the recession cause you to make the wrong decisions Source:Penn State Smeal College of Business, 2008 45. 46. The best plans developed today can be obsolete tomorrow The best plans developed today can be obsolete tomorrow 47. 48.

The industrial landscape is already littered with remains of once successful companies that could not adapt their strategic vision to altered conditions of competition.

- Abernathy

49. High DefinitionLogistics Insert Logo Here High DefinitionLogistics Insert Logo Here 50. About High Definition Logistics

High Definition was founded in 2007

Expertise with solutions that include the management of expedited and time definite logistics within North America

Modern business model design taking advantage of current applications with a focus on back end efficiency

Client solutions are developed based on the unique needs of those served and vary from one application to the next

51. Services Provided

EXPEDITED:

Air: Same day, next day, 2 day and 3 day.

Ground: Next day, 2 day, 3 day and 3 to 5 day. FTLand LTL.

TIME DEFINITE:

• Managed Delivery, Appointment and Installation, New product

• build out and service contract support

PROJECT MANAGEMENT:

Roll outs, Launch/Release distribution, assetrecovery

CUSTOM CLIENT SOLUTIONS:

Technology, Information management

52. Unique margin of difference

Information management

Efficiency of business model

Pricing strategies

Innovation

53.

High Definition understands the challenges you are facing today and how important logistics is to your overall profitability. We also understand you are trying to cut costs, while at the same time, trying to build relationships with vendors who can help you grow your business and profit.

Allow us to evaluate your current logistics strategy. Contact High Definition today at:

High Definition Logistics 1102 East Dallas Road Suite 215 Grapevine, TX 76051

Toll Free: 877.884.4443 Fax: 817.329.9400

Sales:[email_address] Customer Service:[email_address] CONTACT