1. Who We Are A cutting edge national distributor providing high-quality industrial control products at extremely low prices. Knowledgeable Customer Support – Our top-notch inside sales and tech support departments assists with product selection, installation and troubleshooting Same Day Shipping - Every in-stock item ordered by 5pm EST ships the same day. FREE Shipping - Free UPS Ground shipping to the continental US on all web orders above $500

2. Who Are Our Customers? Any industry that has some type of manufacturing process is a potential customer. Industries such as Automotive, Food and Beverage, Packaging, Waste Water, Pharmaceutical, Oil and Gas are just a few examples where you will find a high degree of automated assembly or process taking place. Diverse group of customers range from Fortune 100 companies to retirees who have taken up woodworking in their garage.

4. Due to the nature of our business, it is imperative we ship orders quickly and accurately. Many purchases are to replace products that have expired, causing costly shutdowns for our customers. Importance of Warehouse

5. Considerations FactoryMation is a young, rapidly growing organization. Our goal is to dramatically improve efficiency in order to double our output without adding additional headcount. The bulk of our orders are labor intense piece picks. FM is flexible. We will consider any and all ideas to help improve efficiency and increase accuracy. FM plans to open additional warehouses in the coming years. We plan to use the layout of this facility as a guide to future warehouse design. Some items have significant lead-times and they are shipped immediately upon arrival. Need to determine the best way to quickly move these from item receipt to order fulfillment.

6. Old system Pickers required to memorize location of products based on manufacturer. Items sorted alphabetically New employees struggled to find products. Took months to get familiarized with locations No weight or dimensions taken into consideration Warehouse Cheat Sheet Row 1: Brook Crompton Motors Row 2: Teco & Allied Row 3: Iboco Row 4: Teco Row 5: LS/Metasol Row 6: LS/Metasol Row 7: Weg & J. Auer Row 8: Micron, Aeco, & Delta Row 9: Magnecraft, Repol, Elko, Ferraz, & Misc. Row 10: Bimed, & Chint Row 11: Autonics, Menics, Finder, & Kitel Row 12: IMO, Greenlee, & Teco Row 13: Eldon Row 14: Eldon Row 15: Eldon Row 16: Hibox & Scame Row 17: Saginaw Row 18: Saginaw Row 19: Eldon Enclosures Row 20: Eldon Enclosures Back Wall: Ferraz Fuses

7. Bin Locations First two digits represent Aisle/Row Second set of numerical digits represent Bay/Pallet Position Third character (letter) signifies Shelf Position/Pallet level Fourth set of characters (numeric) indicates bin New system

8. Pick-Face Area 01-01-C-02 GFEDCBAGFEDCBA

9. Areas below shaded in green represent fixed bin locations, except for top shelf Top shelf of green area is overflow along with areas below shaded in blue. Unshaded areas indicate rack-pick, Pallet Storage or unit-load areas.

10. Inbound Warehouse Processes: Receiving/Putaway

11. Warehouse Processes: Receiving/Putaway

12. Handheld Mobile Computer Utilized Receiving – Each item is scanned to ensure accuracy. Putaway – Handheld mobile device directs warehouse personnel through warehouse in most efficient manner to complete putaway process.

13. Warehouse Processes: Receiving/Putaway

14. Outbound Warehouse Processes: Picking & Fulfillment

15. Picking – Each bin location is scanned to ensure accuracy. Like putaway, the mobile computer will guide the picker through the warehouse using the most efficient route. We will be batch picking. Multiple orders are grouped into small batches to reduce travel. At the time of fulfillment, individual items will be scanned to ensure accuracy and verify quantities. Warehouse Processes - Outbound

16. Warehouse Processes: Fulfillment/Shipping Small Parcel Shipping Dock

17. What is the best way to determine product placement in bins? Should FM arrange SKUs by Product Family and Groups? This would simplify putaway and replenishment, but would not be as efficient when picking. Should FM arrange SKUs solely by sales volume? Much more efficient for picking, but more difficult to replen and putaway. What is the best way to layout the pick-face area to maximize efficiency? What size bin is best for each SKU? How much product should FM keep in each bin based on prior sales history? How often should FM replenish? How to determine reorder points and safety stock for bins? Determine optimal shipping carton size to reduce cost and void fill required. Where should shipping and receiving docks be located? What is the best method for measuring performance? Challenges

18. Questions