FMA Progressive Manufacturing Summit Success Stories in Warehouse Efficiency and Productivity May 30th, 2014 Mark Smith President Outsource Equipment Company logo

FMA Progressive Manufacturing Summit Agenda Introduction: Mark Smith Introduction: Outsource Equipment Company Case Study #1: Aero-Precision Case Study #2: L-3 Communications

Outsource Equipment Company Founded in 2000 Headquartered in Oviedo, Florida (Orlando area) We provide a consultative approach to solve problems in our clients’ manufacturing and distribution operations We specialize in combining pre-owned equipment with new equipment to keep costs down Exclusive distribution partner with Systems Logistics to distribute their Modula® line of Carousels & Automated Vertical Storage Solutions logo

What We Do We work with our clients to increase their warehouse efficiency, productivity, and safety. Here is an example of what we do.

Case Study: A-PRO Based in Deerfield Beach, Florida, A-PRO repairs and overhauls a variety of aircraft components A-PRO services critical parts such as: landing gears, hydraulic components, flight controls, and wheels & brakes Perfection is a must! There is a premium on operations efficiency and effectiveness

A-PRO: The Problem Running out of space Diverse array of parts/materials Outdated shelving system Expanding business Company growth was beginning to affect efficiency Slow picking process Disappearing floor space Inventory control was difficult with parts spread out all over the warehouse Overhead space not utilized Employee safety was a concern

A-PRO: Before Density – Large footprint of stored materials Control – Items spread all over the warehouse Productivity – Order picking required a significant amount of walking and searching Safety – Lots of bending and straining to store and retrieve parts

A-PRO: The Solution Outsource Equipment provided two used vertical lift modules Small footprint Automated storage and retrieval Low cost 60% space savings 60% increase in productivity Safety is a priority

A-PRO: After Density – 60% space savings, now utilizing overhead space Control – Much tighter inventory control Productivity – Less unproductive labor hours, increased employee efficiency Safety - Safe, ergonomically convenient workstation

Case Study: L-3 Communications L-3 was moving to a new building and wanted to utilize the extra vertical space Originally looking for two used VLM’s to accommodate the parts storage required L-3 was able to spend just 15% more on new equipment which included a 2-year warranty and the latest technology The used VLM’s were 2004 models and had a 90 day warranty

Discussion Questions or comments?

Thank you! Mark Smith Outsource Equipment 142 Park Road Oviedo, FL 32765 1-407-695-5545 msmith@osequip.com