How CRANE ChemPharma Flow Solutions Leverages QAD TMS Adding Value to the Global Transportation Process How CRANE ChemPharma Flow Solutions Leverages QAD TMS John Conrard – Global QAD Services Manager, CRANE ChemPharma Linda Olster – Product Marketing Manager, Precision Software

Adding Value to the Global Transportation Process Safe Harbor Statement The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.

QAD TMS and Crane Well established as part of Crane’s core QAD process Adding Value to the Global Transportation Process QAD TMS and Crane Well established as part of Crane’s core QAD process QAD TMS has added value over the last 3 years through Simplification Efficiencies Automation Visibility Compliance Standardization

Our Parent Company, Crane Co. Adding Value to the Global Transportation Process Our Parent Company, Crane Co. Manufacturer of highly engineered industrial products Five major business segments Founded in 1855 as the "R.T. Crane Brass & Bell Foundry" in Chicago 10,000 employees, 120 Locations in 25 countries

Crane ChemPharma Flow Solutions Adding Value to the Global Transportation Process Crane ChemPharma Flow Solutions Part of Crane’s Fluid Handling Business Segment Design, manufacture and sell many fluid handling brands Valves & actuators Lined piping Pumps Targeting the chemical, biotech and pharmaceutical industries

What and From Where: Shipping Profile Adding Value to the Global Transportation Process What and From Where: Shipping Profile High value products Many are export controlled commodities Subject to ECCN licensing requirements Ship From locations (manufacturing & service centers) 6 in North America 3 in Europe (coming online this year)

How We Ship: Shipping Profile Adding Value to the Global Transportation Process How We Ship: Shipping Profile Multiple modes of shipment 50 % Parcel carriers 40% less-than-truckload (LTL) 10% freight forwarders Domestic and international Example of volumes and value (Cincinnati site) 80-100 shipments/day $100K - $3M / day

Challenge: Why Implement QAD TMS Adding Value to the Global Transportation Process Challenge: Why Implement QAD TMS Very manual process for shipping using old AS400 system / ERP Manual entry into each carrier’s system No mechanism to track packages No packing list to container ‘link’ No cross reference of shipment to order

Challenge: Why Implement QAD TMS Adding Value to the Global Transportation Process Challenge: Why Implement QAD TMS International shipping to many locations Off-line process Manual paperwork Identification of “intermediate” and ultimate consignee” often not clear Needed to standardize controls for good checks and balances

Solution: QAD TMS Modules Adding Value to the Global Transportation Process Solution: QAD TMS Modules Using all major modules of QAD TMS as part of the core QAD system QAD Freight Management One solution integrated with major parcel carriers Packing, rating, BOL, labels QAD Global Trade Management Automates shipping documents to speed up the fulfillment process Eliminates paperwork errors Reduces possibility of goods held up in customs QAD Trade Compliance Screens for denied parties, embargoed countries Checks for licensed product requirements

QAD and TMS Core Global Process Adding Value to the Global Transportation Process QAD and TMS Core Global Process

QAD Freight Management Adding Value to the Global Transportation Process QAD Freight Management Benefit: one system for any type of shipment Parcel Preferred vendors US: CA: EU: Automatically rate shipments Print carrier approved labels Electronic end-of-day manifest to each carrier

QAD Freight Management Adding Value to the Global Transportation Process QAD Freight Management Benefit: one system for any type of shipment Less-than-truckload (LTL) Preferred vendors Fedex Freight, Pitt Ohio, Dayton Freight, Milan Express Routing guide defaults carrier for the shipment by shipping lane (state) weight Calculate charges and rate shipment Based on CZARLITE freight base Print BOL and ship label including PRO number

QAD Freight Management Adding Value to the Global Transportation Process QAD Freight Management Benefit: one system for any type of shipment Freight forwarders (for some int’l shipments) Preferred vendor Kuehne & Nagel Typically high value Integrated export processing (via QAD GTM) Documents Electronic customs filing

QAD Freight Management Adding Value to the Global Transportation Process QAD Freight Management Benefit: Efficiencies through Automation Consolidations created for shipments of: All service center orders Multiple orders to same site (15% of orders) By country, by day Mexico Maquiladora solution Create loads to group shipments to border distribution center in El Paso. Shipments pre-rated with UPS/ITL labels for El Paso origin Shipments tracked by Pedimento for Mexico customs

QAD Global Trade Management Adding Value to the Global Transportation Process QAD Global Trade Management Benefit: accuracy and automation Documents are printed with correct information every time For any destination or shipment type Domestic, consolidated, export Reduces paperwork errors Automated using the QAD TMS rules engine

QAD Global Trade Management Adding Value to the Global Transportation Process QAD Global Trade Management Benefit: simplified and automated Electronic customs filing AES in US ATLAS in Germany Automatic validation of HTS codes / values ITN number printed on all required documentation

QAD Trade Compliance Benefit: maintain compliance Screen for Adding Value to the Global Transportation Process QAD Trade Compliance Benefit: maintain compliance Screen for Denied parties Embargoed countries ECCN license exceptions by order line Multiple screening points for early visibility Sales order entry Shipper creation Batch/ad hoc screens of address master Audit trail maintained for historical and audit purposes

Adding Value to the Global Transportation Process QAD Trade Compliance Benefit: efficiency with automated background processing Background screening frees up resource time Completely automated within QAD A failed compliance check places order on hold to prevent shipment Management by exception Designated person(s) notified of exceptions though email distribution list

QAD Trade Compliance Benefit: visibility for on-time delivery Adding Value to the Global Transportation Process QAD Trade Compliance Benefit: visibility for on-time delivery Export license checks At time of order entry and again at shipment Ensures license in process or on hand ahead of shipment date before pre-shipper can be created. Prevents shipment from leaving without license on hand License requirements determined by item, ECCN, and ultimate country of destination Attach license to sales order and order line TMS validates against Type of product Quantity and dollar value Expiration date

Workflow Benefit: Control and Standardization Adding Value to the Global Transportation Process Workflow Benefit: Control and Standardization

Future: Continued Optimization Adding Value to the Global Transportation Process Future: Continued Optimization Global logistics standardization Roll-out to European sites this summer 4th of July!! (Germany, France) November (Hungary) Decision made after undergoing a full selection process for a TMS in Europe TMS Freight Management and Trade Compliance being considered for other Crane sites not currently using QAD Lessons learned for future activities Data cleansing Upfront planning It’s a business project – not an IT project

Adding Value to the Global Transportation Process In Summary QAD TMS is well established as part of Crane’s core QAD process QAD TMS has added value over the last 3 years through Simplification Efficiencies Automation Visibility Compliance Standardization

Metrics Affected Adding Value to the Global Transportation Process Benefit Value Automatic denied parties & embargoed countries screening Legitimate orders shipped on time Demonstrate Due Diligence, avoid penalties and fines $000s Violation avoidance Rules-based documentation and automatic customs reporting Operational efficiency gains Avoid delays in customs due to incorrect or missing documentation On-time delivery to customers Automate and control carrier and service selection Reduce freight costs through use of alternate carriers/services when warranted Reduce expediting and premium freight costs Improved customer service Manage any type of shipment (Shippers, Discrete SO’s, Distribution Orders, Material Orders) using Workflow Improve and standardize processes and paperwork (e.g., Packing Lists) Gain efficiencies in execution Simplify training requirements $000s in direct labor costs

Next Steps Stop by the EXPO for a demo Adding Value to the Global Transportation Process Next Steps Stop by the EXPO for a demo Ask your account manager for a Q−Scan Get involved in customer advisory group to influence future direction

Questions & Answers John Conrard Crane ChemPharma Adding Value to the Global Transportation Process Questions & Answers John Conrard Crane ChemPharma Linda Olster lvo@qad.com

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