Traditional Industry Relationships  Activity based agreements  Pricing/costs directly link at the transactional level  Task based services & implementation  Services provided are normally reactive to client needs

Traditional Industry Relationships  Benefits:  Easy to implement & measure  Clearly defined rules of engagement  Disadvantages:  Difficult to expand relationship  Typically not long lasting – longevity based on personal relationships  “You get what you asked for”  Death by SOW amendments  Often subject to the concepts expressed in Kate Vitasek’s book; Vested Outsourcing of, “Bid and Transition, Bid and Transition…”

Relationship Evolution – Transaver/BMS  Barceloneta:  Established unified LCL program  Managed air & ocean Inbound routing  – Expansion to include Mayaguez & Humacao:  1 st time the three facilities worked together  Created transportation team  Performed LCL RFP  Managed air & ocean Inbound routing for all three facilities  Managed cargo claims  Relationship maintained at Manager level at each facility

Relationship Evolution – Transaver/BMS  2000 – 2005 Relationship management transitioned  Specific individuals took ownership of specific services Transaver provided  Began to provide Inbound routing for BMS DC’s  Managed transportation for Contract Manufacturers  Managed all cargo claims for  Trade  Patient Assistance  Rep Samples  2002 Transaver hosted a Truckload RFP  Managed transportation for several Product Launches

Relationship Evolution – Transaver/BMS  2006 – 2009 Through ownership turnover “the ear of the client was lost”  Long term contacts transitioned  Specific services lost  New people with different visions joining BMS Transportation & Logistics team  “Who is Transaver & what do they do”  Pockets of strong supporters  Period of reduced usage of Transaver

Relationship Evolution – Transaver/BMS  – New decade of engagement:  New leadership with 3PL experience  Recognition of Transaver as a potential resource multiplier  Re-Engagement of Transaver as a long term partner with BMS across the enterprise  Recognition of Transaver’s depth of BMS logistics support business knowledge

Relationship Evolution – Transaver/BMS  – New decade of engagement (continued):  Fact Finding & Needs Assessment:  What does Transaver do today  Where does BMS need help  Identification of support that can be deployed immediately  What can we build together  Management of Transportation Incident Reporting  Security Monitoring  Recognition & acceptance by entire BMS supply chain as being a strategic part of the team  Participate in solution development  Clearly defined responsibilities & expectations

Relationship Evolution – Transaver/BMS Benefits:  Seamless transition from one responsibility to another  Employee turnover has low risk to long term partnership  Increased integration means harder to disengage  Process focused  Clear Win-Win results  Lower overall costs to BMS  BMS flexibility to direct outsource exactly where need exists  Improved performance results  Transaver providing additional services to BMS

Relationship Evolution – Transaver/BMS Best Practices:  Team Approach  High level of commitment & involvement from both sides  Allow 3PL to fully understand the business and become an extension of the customer  Consistent Quarterly Business Review Meetings  Participation by all stakeholders  Dashboard approach to measuring & monitoring

How to Achieve – Lessons Learned  Requires commitment from both sides beyond primary contacts  Trust  Openness to share  Desire for mutual win-win results  Solid and Embraced N.D.A.