2. Diego Saavedra Data Capture and Validation at Point of Collection

3. Agenda Current state of the industry Current state of the industry Verdex overview Verdex overview Conclusion Conclusion

4. Barcode Benefits Data is automatically transfered to the central system with no manual intervention of the employee Data is automatically transfered to the central system with no manual intervention of the employee Time and money savings Time and money savings Faster, more efficient operation Faster, more efficient operation

5. Barcode Limitations Items have not been collected with an identical process. Items have not been collected with an identical process. Items don’t have an accurate EDI when they arrive at sorting centers Items don’t have an accurate EDI when they arrive at sorting centers OCR and Video Encoding is needed at sorting center OCR and Video Encoding is needed at sorting center Optimize sortation and dynamic route planning can’t be enhanced Optimize sortation and dynamic route planning can’t be enhanced UAA remains a big problem UAA remains a big problem

6. Verdex Overview Data capture and validation application

7. CEP Collection and Delivery Collection and Initial Sort Transport Final Sort and Delivery Verdex is a “first mile” solution. Primary benefits are at induction and initial sorting Verdex downstream benefits include transportation planning and reduction of Undeliverable As Addressed (UAA)

8. Collection and Induction with VERDEX ENABLED Mobile Computers For items with accurate EDI delivery information. Mobile computer scans the barcode and transmits Tracking ID to the sorting center

9. Collection and Induction with VERDEX ENABLED Mobile Computers For items with printed delivery address accurately printed delivery address, but no yet inducted in the track and trace system. Verdex extracts and verifies the delivery address and transmits Tracking ID and delivery information to the sorting center.

10. Collection and Induction with VERDEX ENABLED Mobile Computers For handwritten items, Verdex enabled mobile computer captures an image of the label and transmits Tracking ID along with the image to the sorting center for Video Encoding

11. VERDEX is a Game Changer … Advanced data collection that enables delivery address Extraction and Verification at the point of collection Advanced data collection that enables delivery address Extraction and Verification at the point of collection Proven OCR and Verification technology used today in high speed parcel sorting. Intermec is first to bring this to mobile computers Proven OCR and Verification technology used today in high speed parcel sorting. Intermec is first to bring this to mobile computers Mobile component and APIs designed for easy intergration into your.NET applications Mobile component and APIs designed for easy intergration into your.NET applications Easy to incorporate into your existing collection and sorting process Easy to incorporate into your existing collection and sorting process

12. Benefits of Verdex All items collected with an identical process. The differences happen “in the background”. All items collected with an identical process. The differences happen “in the background”. Enables up to 100% of items to have accurate EDI when they arrive at sorting centers Enables up to 100% of items to have accurate EDI when they arrive at sorting centers Enables significant reduction in OCR and Video Encoding at sorting center Enables significant reduction in OCR and Video Encoding at sorting center “Level loads” video encoding because operators can begin coding as soon as item is collected “Level loads” video encoding because operators can begin coding as soon as item is collected Optimize sortation and more accurate dynamic route planning Optimize sortation and more accurate dynamic route planning Help eliminate or identify UAA items before they are collected Help eliminate or identify UAA items before they are collected

13. Thank you.

14. Empowering Parcel Delivery Operators Huge Money Saving and Provide Superior Services by: Improving Efficiency of Parcel Induction Reduces labor and equipment costs. Helps reduce manual entry errors Streamlining Sorting and Transportation Potential for nearly 100% of items to be EDI coded when trucks arrive at sorting center. Enables level loading of Video Encoding. Earlier Visibility to help optimize dynamic routing Reduce Operational Costs & Ensure On-Time Delivery VERDEX provides Address Verification at the Point of Collection. Reduces the costs for incorrectly addressed items Improve Service Levels to Customers Real time tracking from the moment of collection

15. Constraints and Challenges Contraints: Collection needs to be… Fast, Simple, Consistent from item to item Fast, Simple, Consistent from item to item Challenges : Challenges during sorting… Typically only 50 – 80% of items arrive with accurate EDI delivery information Typically only 50 – 80% of items arrive with accurate EDI delivery information Up to 50% require expensive OCR or video encoding Up to 50% require expensive OCR or video encoding 5 – 10% are handwritten or irregular 5 – 10% are handwritten or irregular Many items are undeliverable as address and this needs to be corrected Many items are undeliverable as address and this needs to be corrected Very little time to process unannounced items Very little time to process unannounced items With so many items unannounced, no opportunity to optimize sorting or dynamic routing With so many items unannounced, no opportunity to optimize sorting or dynamic routing Collection and Initial Sort

16. A Deeper Look at VERDEX VERDEX optimizes the imager settings for image capture VERDEX optimizes the imager settings for image capture VERDEX OCR and SmartMatch technology extract data and use fuzzy logic to locate address in the on-board database VERDEX OCR and SmartMatch technology extract data and use fuzzy logic to locate address in the on-board database Verified addresses are cleansed to provide address correction for spelling, missing information, or incorrect formatting Verified addresses are cleansed to provide address correction for spelling, missing information, or incorrect formatting Corrected information is passed to mobility application for forwarding, label printing, or logging Corrected information is passed to mobility application for forwarding, label printing, or logging

17. Internal Process Validation

18. Example Hotel Vitoria Regia Praca 5 de Agosto, 621 Rio Verde-GO 75901 OCR Directory Data Parse Address Query Address Data Select Configuration Get Status and Stats Smart Match

19. Database – Fuzzy Matching Example Matched the Correct Colonia LIZBETH JACQUELINE LLOP MORELOS 130BIS PE=ON DE LOS BA=OS VENUSTIANO CARRANZA D F 15520 Raw Image OCR Results PEÑON DE LOS BAÑOS VENUSTIANO CARRANZA 15520

20. Additional Material Available for Intermec CN3 and CN50 Provides delivery address extraction and verification for machine printed addresses Supports Latin Based Characters – Most Western and Eastern European languages 100% native application and database (no over the air is required for extraction and verification) Database options – Custom database using customers’ own data records – Commercial database available from a variety of sources Demo App, APIs, and Product Profile available from Intermec.com