1. #bhscsummit @bhsolutions Introduction of Ed Williams Vice President Blue Horseshoe Strategy Division ewilliams@bhsolutions.com

2. #bhscsummit @bhsolutions BHS and Cengage  Over a decade of Past Projects

3. #bhscsummit @bhsolutions Cengage Learning https://www.youtube.com/watch?v=Rz4rsh5kyJc

4. #bhscsummit @bhsolutions Doing MORE with LESS : The struggle of ‘right now’ expectations and resource limitations Suzanne Wilsbacher Project Manager Distribution Systems Cengage Learning Suzanne.Wilsbacher@cengage.com Tony Hayes Project Manager Distribution Systems Cengage Learning Tony.Hayes@cengage.com

5. #bhscsummit @bhsolutions Agenda  Introduction & Video  Get CENGAGED!!  Struggles and Challenges  Opportunities for improvement at Cengage  Attendee Feedback & Discussion

6. #bhscsummit @bhsolutions About Cengage Learning  Offering print and electronic learning services  Higher Ed, Research & Library, K-12  MindTap ®  Aplia ™  Distribution Centers in 6 countries – United States – Canada – Mexico – Brazil – Argentina – England

7. #bhscsummit @bhsolutions “Managers today have to do more with less, and get better results from limited resources, more than ever before.” – Brian Tracy, Chairman and CEO of Brian Tracy International, a leadership and development organization, Full Engagement! Inspire, Motivate, and Bring Out the Best in Your People

8. #bhscsummit @bhsolutions You are about to be CENGAGED!

9. #bhscsummit @bhsolutions Challenges and Obstacles  Doing more with less?

10. #bhscsummit @bhsolutions Resource Limitations Bodies Brains Bucks

11. #bhscsummit @bhsolutions Related Fallout  Customer Satisfaction  Innovation  Employee Morale

12. #bhscsummit @bhsolutions Cengage OVERCOMES!  T-BOX Packing and Processing

13. #bhscsummit @bhsolutions Cengage OVERCOMES! PREVIOUS PROCESS  8 Parcels to a tote per LogPRO  Ship label and pick slip printed interleaved at plan time in tote groups  During picking, Picker had to find the correct label/invoice combo each time and rubber band product to the combo NEW PROCESS  Totes packed out in LogPRO based on Volume/Weight/# of Parcels configuration  No invoices or labels printed up front  Using voice picking software, Picker picks straight to tote with nothing to match up Tote Prep and Picking

14. #bhscsummit @bhsolutions Cengage OVERCOMES! Tote Prep and Picking Benefits – Less conveyor traffic More than 8 shipping parcels per tote when packed by Volume/Weight/# of Parcels Less conveyor traffic from increased use of totes – Less tote prep time- No more matching up invoices and labels – No handling of invoices or ship/pick labels at all – Pick slip label completely eliminated Only need to put tote label on the tote – Less pick time- Picker does not need to match up product with correct invoice/label combo

15. #bhscsummit @bhsolutions Cengage OVERCOMES! PREVIOUS PROCESS  Tote conveyed to Shipping Dock  Pallet of totes driven to cold seal machines  Two operators package parcels with manual audit of items and invoice/ship label combo  Gaylord of packages driven back to the dock and onto a truck NEW PROCESS  Totes conveyed directly to T- BOX packing stations on the dock  Parcels packed using LogPro Parcel Audit  Ship label and invoice printed  Packed parcels taken by conveyor to Gaylord  Gaylord driven onto truck T-BOX Packaging and Shipping

16. #bhscsummit @bhsolutions Cengage OVERCOMES! T-BOX Packaging and Shipping Benefits – Less double handling- Totes are not stacked and unstacked Parcels are not driven from the dock and back to the dock – Improved accuracy (aka MORE!!! ) Each item in each parcels is scanned or ISBN typed into Parcel Audit Invoice is printed only for that parcel Ship label only printed for that shipping parcel – Less labor- 1 T-box packer vs. 2 cold seal machine operators

17. #bhscsummit @bhsolutions Cengage OVERCOMES! Replenishment to TBOX Packing – Entire case of loose is consumed and packed into TBOX type box PREVIOUS PROCESS  RPLN cases conveyed to Picking zones  RPLN team performs “Putaway” of cases  Picker picks books from cases into totes  Tote conveyed to dock and then driven to cold seal machine for packing, etc. NEW PROCESS  RPLN cases conveyed straight to packing stations  LogPro performs “Putaway” at station on conveyor divert  Packer scans RPLN label then item  Ship label and invoice print  F-key for next label and invoice, repeat.

18. #bhscsummit @bhsolutions Cengage OVERCOMES! Replenishment to TBOX Packing Benefits – Less double handling RPLN team does not need to handle case Picking team does not need to pick item – Less conveyor congestion Cases sent to pack stations during low volume, early morning hours Items not picked into totes, reducing number of totes on conveyor

19. #bhscsummit @bhsolutions Cengage OVERCOMES! Benefit Review  Less double handling of RPLN cases, items, and totes  Reduced conveyor congestion  Reduced label print  Reduced tote prep and pick time  Reduced error rate for item and invoice/ship label miss-match  Reduced labor  Improved error tracking from Parcel Audit stamp of User ID

20. #bhscsummit @bhsolutions Cengage OVERCOMES!  T-BOX Processing Stations

21. #bhscsummit @bhsolutions Participation Time! Share what challenges you face, and what you have done to overcome them!

22. #bhscsummit @bhsolutions Cengage OVERCOMES continues!...  Daily Staff meeting  Cross training  Shift timing changes – offer more flexible work hours  Combine synergies – Order picking with WO picking – WO module enhancement  Work flow management – pick plan organization and timing  Learning how to do in house what we used to send out to vendor – Specialized label printing  Ask HVAC contractor to fix ice machine.  Incentive plans for individual contributors  Recognition – Bravo system  Meeting of the minds – like the Blue Horseshoe Summit!!

23. #bhscsummit @bhsolutions Always remember…

24. #bhscsummit @bhsolutions Thank You Tony Hayes Project Manager Distribution Systems Cengage Learning Tony.Hayes@cengage.com Suzanne Wilsbacher Project Manager Distribution Systems Cengage Learning Suzanne.Wilsbacher@cengage.com