The Logistics of Logistics 17/09/2018 Confidential

Transport Modes Parcel Independent Courier LTL (less than truckload) FTL (full truckload) White Glove Providers (i.e. special handling instructions) Intermodal (combination of rail, ship, and/or truck) LTC (less than container) Ocean Air 17/09/2018 Confidential

Parcel/Independent Courier Different service types Global coverage in most cases Set delivery/pick up times by service level Relatively high expense Large network footprint BWB Example - UPS Independent Courier Primarily regional Limited capacities Standard routings Can be low expense with static route volumes Relatively small footprint BWB example – HF Group 17/09/2018 Confidential

LTL (less than load) Sharing space on a truck Large consolidation networks If covering large distances, freight is taken to a cross dock, unloaded, then consolidated on regional line hauls destined for local terminals for final delivery Rates are based on weights, freight class (determined by dimensions and density), and pick-up/destination zip codes Will charge for assessorial – Lift gate, inside pick up, driver assist, inside delivery, notify before delivery, loose box (Note: all providers may not provide these services, and those that do often have limited capacity) Charge a fuel surcharge based on diesel rates Longer transit times than TL 17/09/2018 Confidential

FTL (full truckload) Generally 48’ or 53’ trailers. Direct from pick-up location to destination Will not usually accommodate special requests like LTL Most cost effective mode for freight over 20,000 lb. or covering more than 12’ of trailer space 17/09/2018 Confidential

Truck sizes 20’ trailer – AKA box/pup/straight truck Lift-gate availability 10,000 lb. maximum weight 10 pallet spaces Cannot double stack 17/09/2018 Confidential

Truck sizes (cont’d) 28’-32’ trailer Lift-gate availability 20,000 lb. maximum weight 16 pallet spaces Can be double stacked (as long as client has dock and loads with forklift) 17/09/2018 Confidential

Truck sizes (cont’d) 48’-53’ trailer Lift-gate unavailable 45,000 lb. maximum weight 22 pallet spaces Can be double stacked (as long as client has dock and loads with forklift) 17/09/2018 Confidential

Questions we need to know What is the exact number of boxes being shipped? This information is necessary to estimate the total weight of the shipment. It is especially important when booking loose box shipments. A driver needs to know how many boxes they are expected to pick up. Differences in box counts can change cost or jeopardize execution. Are these boxes that were provided by Better World Books? If not, what are the dimensions of the boxes used? If the boxes are larger than ours, this will affect how we estimate the weight of the shipment. Will the boxes be on pallets? If yes, how many pallets do you have? Are they wrapped with plastic pallet wrap/shrink wrap? Palletized shipments are easier and often less costly to pick up. If a shipment is not palletized, some carriers will bring their own pallets to palletize on site. We will be charged for their pallets and pay a premium for their labor to palletize. 17/09/2018 Confidential

Questions we need to know (cont’d) Does the pick up location have a standard, raised loading dock? A standard loading dock is approximately 48” high. Most loading docks will also have a dock plate to accommodate different sized trucks. If the client does not have a loading dock, we will most likely need to book a truck with a lift gate. This adds an additional cost to the shipment. This also limits the days/times for pick ups, as there are a limited number of lift gate trailers available. Are there any space restrictions where the truck will be loaded? Some examples include a library with a small parking lot or a campus that has narrow streets. We will book a smaller truck in these instances. A carrier may not be able to pick up a shipment if they are not informed of space restrictions. Does the truck need a lift gate? A lift gate is a hydraulic lift on the back of a truck that is used to move freight from the ground up to the floor of the truck. A lift gate may be required if the pick up location does not have a fork lift and/or a loading dock. 17/09/2018 Confidential

Questions we need to know (cont’d) Will the driver need to assist with moving the boxes and/or loading the truck? If the driver needs to assist in any way, we must inform the carrier at the time the shipment is booked. A driver may refuse to pick up a shipment if this is not noted during the booking process. This adds an additional cost to the shipment. We recommend a 12:00pm – 4:00pm time frame for the pick up. Does this time work for you? If not, please let us know what other 4-hour time frame would work best. Freight trucks typically pick up in the afternoon because they make their deliveries in the morning. LTL carriers usually do not make specific appointments. Freight carriers will pick up freight during the business week (Monday – Friday). What day works best for you? Are there any days that will not work? Having this information in advance helps avoid having to reschedule a shipment. 17/09/2018 Confidential

Questions we need to know (cont’d) What is the exact address of the pick up location? *If the pick up is on a college campus, please be sure to provide the full address. This includes the name of the building, the street name and any other details that can assist the driver with locating the building. Occasionally we find that clients have their shipments picked up at a location that is not listed on their account. For example, some clients at colleges/universities will have their shipment picked up at their the central campus receiving/shipping location. Is this a residential address? It can be tricky for a truck to enter a residential neighborhood (narrow streets, lower power lines, noise restrictions, etc. ). This will add to the cost of the shipment. Does this location have restricted access? This can include a location that has a gate that the driver will need to go through, a college/university campus, a storage unit, etc. The driver needs to know of any possible restrictions or if they need to contact a specific person to gain access to the pick up location. 17/09/2018 Confidential

Consolidators 17/09/2018 Confidential Northwest – Portland, OR A- Alert- Providence, RI Challenge Warehousing – Ft Lauderdale, FL Priority Dispatch – OH MTM Ventures – Aberdeen MD (parts of VA) Courier Connection, Atlanta, GA Globe/MTM – Carlstadt, NJ Veteran’s Distribution – Hillside, IL MTM Ventures – East Brunswick, NJ Western Flyer (Moveit agent) – Commerce City, CO MTM Ventures - CA (Rancho Cucamonga 4/25) Atlantic Relocation Systems - Colorado Springs, CO MTM Ventures – Syosset, NY Rightaway Delivery – Ann Arbor, MI Nolan Transport – Mississauga, ON Arizona Border Transfer – Phoenix, AZ Ceva Logistics– San Diego, CA A-Alert – Southboro, MA 17/09/2018 Confidential