LinkedIn Members

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… Presented By

Relcor, Inc.

Paul L. Fattori - President

10 November 2011

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Plastics Industry Pioneer & The REL Corporation

• Family Business … Three Generations

• First Plastic Injection Molding Machine In The United States

• The REL Corporation Founded In 1949 … Successful & Financially Secure For 59 Years

• Became One Of The Largest & Prominent Custom Injection Molders In The New York Metropolitan Area

• Over 200 Employees At Two Facilities

Cosmetics Education & Entertainment Food & Beverage

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Consulting Engineers

• Part And Mold Design

• Finite Element Analysis

• Mold Procurement

• Turnkey Facility Setup

• Offices In Florida & Portugal

• Over 60 Worldwide Patents In Product & Mold Design

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Urgent Request From Maritime Carriers

• Anti-Drug Act … “Zero Tolerance”

• Seals Easily Altered or Duplicated By Drug Cartels

• Carriers Faced Heavy Fines From US Customs

• Provided Only An “Illusion Of Security”

• Resulted In Losses

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The Problem … Defined

• Need To Identify Illicit Invasion

• Need To Optimize Costs Associated With Security

• Need To Eliminate Fines & Costs Associated With Theft

The Solution … Visualized

• Seal Must Conform To Industry & Government Specifications

• Seal Must Encompass A Control System

• Seal Must Be Truly Tamper Evident

The Benefits … Desired

• Curtail Smuggling Of Contraband & Theft Of Cargo

• Help Prevent Fines And Reduce Costs Due To Losses

• Pinpoint Who, When And Where Invasion Occurred

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Seal Introduction

• After Three Years Of Research & Development • Relcor Seals Introduced In 1992

1992

Prototype Seals Series 8 Clear Guardian Series 8 Royal Guardian

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Embedded Serial Number Large Human Readable & Bar-Coded

Two Tiered Locking Mechanism Unrestricted View, Can’t Be Defeated

Crystal Clear ConstructionSuper Strong Polycarbonate

Matching Serial Number Laser Engraved On Stem Portion

Unique Serial Number Archived & Never Repeated

Truly Tamper Evident Visual & Electrical

Company Name & ID Code Hot Stamped Or Laser EngravedC-TPAT Compliant

Exceeds ISO/PAS 17712 Specifications

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Seal Dispenser BoxTamper Evident Pouch

Seal Issue Log & Inventory Control Sheet

It’s Not Just A Seal … It’s A System!

• Tamper Evident Pouch … Ensures Pristine Seal For End User • Seal Dispenser Box … Contains Web Of 30 Pouches

• Seal Issue Log & Inventory Control Sheet … Preprinted Serial Numbers

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System … Optional Features

• Set of 4 “Peel-Off” Labels … Applied To Shipping Documents, Prevents Transposition Error • Seal Assignment Card … Provides Ability To Pinpoint Who, Where And When Attack Occurred

• Electrical Circuit Tester … Verifies Full And Proper Assembly Of Seal As Well As Indicating Tampering

Peel-Off Labels

Seal Assignment Card

Electrical Circuit Tester

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The Current Problem …

• Seal Serial Numbers Easily Altered And Duplicated By Criminals.

• Only Seal Serial Number Is Recorded On Shipping Documents. Not What Type, Shape Or Color Of Seal.

• Original Seal Removed And Replaced With Seal Having Same Serial Number.

• Shipment Is Accepted At Destination As Being Intact As Serial Number Agrees With Documentation.

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The Solution …Prevent Substitution Of Original Seal With The Relcor Four Layer “Cargo Security System”. A Proven System To Effectively Fight Cargo Theft & Contamination.

The Four Layers Consist Of The Following …

• Security Seal – Relcor Series 9 Perfect Guardian. An ISO/PAS 17712 “High Security” Certified Seal

• Container Label(s) – Image Of Seal & Serial Number

• “Visual Guardian” – High Security Tamper Evident Material

• “Hinge Guardian” – An Added Layer Of Protection

• Document Label For B/L – Image Of Seal & Serial

Number• e-Label – Send Email With Image Of Seal & Serial

Number To Any Party Along The Supply Chain

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Issue Seal …

• Seals Should Be Stored In A Secure Location, With Limited Access Only By The Seal Custodian.

• Remove Individual Dispenser Box From Master Carton.

• Separate An Individual Seal Packed Within A Tamper Evident Pouch From The Continuous Web.

• Record Information On Provided “Seal Issue Log” Sheet (Date, Container Number, Customer, Etc.)

• Using USB Flash Drive, Select Seal Serial Number. Send Image Of Seal & Serial Number In Email To Any Party Along The Supply Chain.

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Seal & Label Application …

• Remove Seal And Label From Tamper Evident Pouch And Affix Seal Through Hasp Of Container Door.

• Using Supplied Marking Pen, Complete Information (Date & Time) On “Visual” Guardian Security Label. Apply Document Label To Shipping Documents.

• Using Supplied Alcohol Prep Pad, Clean Surface Of Container Where Security Label Is To Be Applied.

• Holding Center Of Label, Remove Liner Sections In Sequence As Indicated On Liner.

• Apply “Visual” Guardian Security Label Between Left & Right Doors Of Container. For An Additional Layer Of Security, Apply “Hinge” Guardian Labels To Hinges Or Between Door & Frame.

Three Easy Steps

Step Two … Seal & Label Application

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Three Easy StepsStep Three … Inspection, Removal & Retention

Seal Inspection, Removal & Retention …

• At Each Point Along Supply Chain, The Security Seal And Labels Are Checked For Indications Of Tampering. Any Indications Of Tampering Should Be Immediately Reported To The Proper Authority.

•Verify Security Seal & Label Against Relcor “e-Label” Image Sent Via Email.

•Pull, Tug & Twist Security Seal, As Well As Perform Visual Inspection.

•Inspect “Visual” Guardian Label For Indications Of Tampering.

•Bolt Cutters Are The Recommend Method Of Seal Removal. Safety Goggles Should Be Worn. • Seal Parts Should Be Retained Until Cargo Has Been Verified.

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Conveyance Security …

“C-TPAT is dedicated to meeting the needs of our members while also promoting the highest possible level of cargo security. We hope that this best practices update will be helpful to all.”

C-TPAT Director, Bradd Skinner

…Best Practices Update 2009

As part of the C-TPAT Best Practices Update of 2009, US Customs & Border Protection recommends the following …

Use Tamper-indicative security labels bearing an actual photo of the seal and serial number, attached to the hinges and between the two doors of the vehicles.

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Design

Manufacturing

Packaging Employees & Facility

The Safety & Security Of Your Cargo Begins With The …

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JIT Inventory & Shipping Program

Features …

• Discount Based Upon Annual Usage

• Relcor Produces & Warehouses Seals In Advance

• Ship At Prescheduled Intervals Or At Moments Notice

• Not Invoiced Until Shipment Is Made

Benefits …

• Assures Continuity Of Delivery

• Increased Internal Security

• Reduction Of Dedicated Secure Warehouse Space

• Enhanced Cash Flow

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Continued Research & Development

• Explore New Methods Of Security

• Develop New Seals And Expanded Our Product Line

• Evaluate New Technologies

New Products New TechnologyNew Methods

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Participation In Under Cover US Customs Operation

Relcor Committed To Fighting Terrorism

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Business Alliance for Secure Commerce

• Originally A US Customs Program (Business Anti-Smuggling Coalition)

• Now A Worldwide Organization To Promote The Secure Movement Of Cargo

• Chapters In Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Haiti, Mexico, Panama, Peru, Dominican Republic, Uruguay and Venezuela

• Recommend And Promote Relcor Seals To Their Members

• Relcor Presently Being Audited By World BASC Organization For Certification As A Member In US Chapter

• After completing this step, Relcor will proceed to becoming a C-TPAT member.

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Closing Comments …

Relcor fully understands that companies are tightening their belts amid recession worries. In Many instances managers are told to shave budgets, cut costs and improve efficiency.

We agree with the need to eliminate wrongful expenses, as management has the responsibility to protect the company’s assets. However, a closer look has to be taken at the cargo loss and why it occurs. Cargo loss is an unwelcomed albatross that requires additional sums of money to investigate.

When the subsequent cost of personnel’s time to research the loss, the anger of the consignee, the time and effort of the sales personnel to placate the consignee are all factored into the story, then the costs can become astronomical.

Cargo loss contradicts the efforts to conserve, and using an inexpensive seal to protect cargo could cost the company more than it can anticipate and budget.

The Relcor seals are not the least expensive seals in the market place. However, consider the seal and system features provided, and the unblemished record of successfully protecting cargo.

That is, they are listed as costing more than a similar seal. However, there are no similar seals. What is said to be a similar seal doesn’t work, yet the cost satisfies the accounting budget until an attack occurs. What appears as the most expensive to purchase actually costs less in the overall picture.

Thank you for the time you have provided and for considering the Relcor seals.