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Supply Chain Optimization Program Meeting Notes

Nov 19, 2014

Ocean Contingency Updates

4 Key topics in focus:

- Ground capacity

- X-dock throughput

- Process execution

- ISCO tracking

➢ ILWU negotiations on hold this week. Congestion and truck power shortage experienced at west coast ports as well as NY and Norfolk. No strike movement in Charleston yet.

➢ Spot markets rates for ocean containers to the east coast 35%-45% above our contracted rates with no space guarantee.

➢ Carriers still protecting our freight. Please instruct your shippers to not increase volumes.

➢ Distribution operations in Savannah catching up with service levels experienced at the west coast x-dock. All aspects of operations from vessel delivery to pick up have stabilized.

➢ Focus on data quality in ISCO tracking.

➢ High level changes that will make x-dock operations more efficient and less error-prone:

- Being able to use barcode/scanning – roadmap?

- Eliminate bonded freight

10/22/14 update:

• Transit time through west coast still faster on average compared with east-coast but variations have become significant – for instance 19 to 50+ days for Closetmaid to Chino. Ports are charging for demurrage. Industry volumes to the WC up by 19% in September compared with last year.

• Rank and file growing impatient with ILWU management. ILWU mechanics implementing truck and chassis checkpoints resulting in additional delays and local ILWU groups pushing against automation proposals. Increased risk for further slowdowns from unions or terminal lockouts.

• Recommend extending contingency routing thru Chinese New Year – Feb 19. Capacity confirmed for ocean, x-dock and ground.

• As a reminder: BUs that have decided/are in the process of deciding whether to book their full container loads back to the US West-Coast now should be very mindful of the facts that #1/There is generally little that can be done to help with the congestion at the west coast terminals and #2/ISCO resources are focused and prioritizing cargo going through Savannah – operations are already very resource intensive there.

• Savannah x-dock operations stable. Compliance to load plan over 90% .

• Protest in Hong-Kong still concentrated in the business district. No impact on port operations in Hong-Kong or neighboring ports (Yantian, Shekou, etc ..).

• Manila congestion deteriorating  - 1 t 2 week delays from the port.

11/05/14 Update:

• West Coast congestion continuing to be an issue. 8 vessels parked in the LA/LB harbor last week. Situation better this week but congestion and delays at the port remain.

•  Difficulty experienced by the ocean terminals directly related to lack of chassis and power/drivers and compounded by ILWU mechanics in southern California implementing chassis inspection. Inspection process still in place this week.

• Work slowdowns at Tacoma and Seattle ports. PMA (Employers) accusing ILWU leadership of having orchestrated the slowdowns. Concerns over potential slowdowns in LA/LB after the mid-term elections.

• Still no progress on ILWU contract

• Contingency plan extension announced 2 weeks ago. At this stage we are still planning to continue to be book to Savannah until Feb 19, 2014 (=bookings will switch to normal routing after that date).

11/19/14 Update

• Situation escalated last week with port labor slowdowns spreading to entire US West-Coast and a large number of ILWU workers to reporting to work.

• Teamsters and independent drivers started picketing terminals last week. Movement extended to 3 more terminals yesterday. So far ILWU workers crossing the picket lines.

• Port productivity continues to be at about the same level as last week (25%-35% on average) with congestion continuing to be just as bad – ports trying to keep up with non-union temporary (casual workers). Air capacity is very tight especially out of south China where UPS initially refused to take our freight.

• More meetings this week between PMA and ILWU Leadership with little to no communication to the press.

• Ocean industry cutting space to both east and west coast of the US by about 10-12%. Vessels to the east-coast continue to ship full. Our carriers are continuing to commit to protecting our space on the contingency routes. Savannah x-dock as confirmed that will be in a position to continue to accommodate us.

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Savannah x-dcok

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Ocean program Integration to Emerson’s TMS

• Provide status updates on the ocean integration into Emerson’s TMS project (DG/DS)

• Met with APLL in Phoenix to review SCO Roadmap, understand the resources currently assigned to Emerson (6 people), determine gaps in data quality that cause visibility issues and poor delivery performance and review the exception management process.  Next meeting is scheduled for 29 August to finalize plans for deeper dive into the booking process in September.

• Phase I scope of APLL-OTM Alignment Project encompasses ability to capture origin booking in OTM to pass to APLL as well as reporting and visibility.  We have received 75% of the origin booking process flows from APLL and are working to align the ISCO/SeeChange visibility tools with the process flows to better understand their functionalities.  The team is traveling to Hong Kong to confirm existing processes with APLL the first week of November.  Our 60 day outlook includes having our needs analysis completes around 12/15/14.  This will enable us to have our functional specifications ready 2/27/15.  Target Phase I Production Go-Live is December, 2015.

• Request has been made to GLBLs and Regional Managers for suggested Steering Committee Members.  The Kickoff meeting will be held in Mid-November.   The committee will be responsible for ensuring that the future state processes meet the needs of the business units and to ensure that all eligible freight is managed through the SCO program.

Supply Chain Optimization – Air Cargo

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▪ 2015 goal is to on-board 80% of air freight spend into SCO program across all business groups. Focus business groups will be CIS, EIA and CRS.

▪ Updates on e-sourcing award implementation. Pricing effective Oct 15, 2014

Crane Worldwide: 47 shipments ($70K) – 15% with at least 1 status update

Gebruder Weiss Rohlig: 82 shipments ($332K) – 71% with at least 1 status update

11/05/14 Updates

• Update on the UPS-SCS HKG outbound dock:

• Tommy Tang has been working through the delay issues with UPS-SCS HKG and they have escalated on our behalf as we expect at a minimum a 4 hour turnaround on the supplier truck from Jabil.

• Here is the initial feedback from UPS-SCS in HKG “We have a lot of project shipments lately for other customers in HKG. Please note some customers switched modes from ocean to air freight due to the port congestion at west coast of US. Our operation team is taking all measures possible to receive cargo ASAP.  Edwin Lam Account Manager – Enterprise Account”.

• Mode Team is perusing alternative pricing from Agility for lanes from HKG to US and Latin America and should have follow up next week and will consider moving to backup carriers if this is not resolved within 3 weeks.  Wade L and Jim K from UPS-SCS have been alerted of the issues for Global Account escalation and as of today no change.

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• ENP CALA Region – we are basically starting over from scratch.

• Focus 1 – all inbound from Asia & EU; beginning week of 8/18 to become active again

• Bob & Richard to review rate analysis

• Elke Zemmer to review transit times provided to her several weeks ago.

o Very concerned about rating / transit times

o Sent her the link for the Sharepoint site to GREaTR & direct link to the Rate Inquiry tool

• Jaqueline – completed review along with Service Levels (Deferred, Economy & Express) to insure this is a true comparison and sent to Bob & Richard on 8/22

• Meeting scheduled with UPS-SCS on 8/27

• UPS is not extending HKG-Latin America rates. Mode team to implement contingency pricing and will include spend in April 2015 e-sourcing event.

• Schedule meetings with KWE, DHL, and UPS and Greg to go over carriers’ performance metrics

• KWE - Thursday 08/28/2014 at 9.30 am

• DHL – Thursday, 08/21/2014

• UPS – Wednesday, 09/10/2014 at 2.00 pm

• Run report that shows actual transit time and OTD% for top 10 highest volume lanes (DG)

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|2013 Oct-Sep Bid Spend | | | | |

|Values |EXPRESS |ECONOMY |DEFERRED |Grand Total |

|Total Shipments |17,319 |48,218 |15,922 |81,459 |

|Total Chargeable Weight |5,302,901 |17,197,867 |5,272,419 |27,773,187 |

|Total Historical Charges |$21,637,115 |$59,210,315 |$17,034,700 |$97,882,130 |

|Total Airfreight Charges in USD |$12,120,358 |$29,782,544 |$8,376,066 |$50,278,968 |

|Total Cost per Kg |$4.08 |$3.44 |$3.23 |$3.52 |

|ATA Cost per Kg |$2.29 |$1.73 |$1.59 |$1.81 |

|Service Level Mix (by Weight) |19% |62% |19% |100% |

|ATA Charges as % of Total Cost |56% |50% |49% |51% |

|Ave Weight per Shipment |306 |357 |331 |341 |

|% Shipments below 70Kg |34% |32% |38% |35% |

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|2014 Q3-Q4 Annualized |  |  |  |  |

|Values |EXPRESS |ECONOMY |DEFERRED |Grand Total |

|Shipments |9,010 |27,602 |27,924 |64,536 |

|Weight |4,600,476 |15,812,092 |14,595,635 |35,008,203 |

|Total Spend |$11,709,453 |$34,241,855 |$29,579,432 |$75,530,740 |

|Total Airfreight Charges in USD |$5,317,513 |$13,612,668 |$10,367,432 |$29,297,613 |

|Total Cost per Kg |$2.55 |$2.17 |$2.03 |$2.16 |

|ATA Cost per Kg |$1.16 |$0.86 |$0.71 |$0.84 |

|Service Level Mix (by Weight) |13% |45% |42% |100% |

|ATA Charges as % of Total Cost |45% |40% |35% |39% |

|Ave Weight per Shipment |511 |573 |523 |542 |

|% Shipments below 70Kg |23% |25% |26% |25% |

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|Change vs. Prior Year |  |  |  |  |

|ATA Cost per Kg |-$1.13 |-$0.87 |-$0.88 |-$0.97 |

|Total Cost per Kg |-$1.53 |-$1.28 |-$1.20 |-$1.37 |

|Percent Savings vs Prior Year |-38% |-37% |-37% |-39% |

|Service Level Mix (by Weight) |-31% |-27% |120% |0% |

|ATA Charges as % of Total Cost |-19% |-21% |-29% |-24% |

|Ave Weight per Shipment |67% |61% |58% |59% |

|% Shipments below 70Kg |-31% |-23% |-33% |-29% |

Service Level Shift Analysis

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On Time Delivery %

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% decrease from previous SCO call

UPS down by 9% KWE down by 10% DHL down by 15%

% Required Status Events Received

Aug - YTD

|Carrier Code |Red |Yellow |Green |White |

|DZNA |0.7% |13.1% |80.6% |5.6% |

|KWEI |0.0% |15.8% |72.6% |11.5% |

|UPSF |3.5% |7.0% |78.9% |10.7% |

|Carrier Code |All Required events |Missing at least 1 |

| |Received |required Events |

|DZNA |54% |46% |

|KWEI |35% |65% |

|UPSF |0%*** |100.0% |

|*** Missing "arrived at origin terminal" event |

Supply Chain Optimization – Ground NA

Tender Acceptance Metrics

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*Week 46 data incomplete

• Tender acceptance continue to improve week over week

• Reviewing top 50 TL lanes with mode team. Plan to be more selective with carrier invites in the coming year.

Broadcast metrics

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*Week 46 data incomplete

Truckload

On Time Delivery %

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Top 10 high volume TL carriers

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Less than Truckload

On Time Delivery %

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*Week 46 data incomplete

Top 10 high volume LTL carriers

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Ocean

- Ocean on-time from 85% to 92% from key origins into Savannah (Shanghai, South China, …).

AOE Project Updates

1. Discussion topics to be included in the next meeting related to Automated Order Entry solution (AO)

a. Who is implementing – Steve Comerford is driving implementation for LTL sites in North America.

b. Which locations – 20 business unit sites with $34M. Could be expanded to other sites based on business unit demand.

c. Who had signed up – All the GLBL’s have provided estimated completion dates.

d. How would it impact our FUM% - Increase to between 45% or 58% depending on cutoff in loads/day.  If using ES Spend increase between 55% and 71%.

e. Updates on specific sites- Liebert Columbus is on track to send initial test file by 12/15 with a full test file to be sent by 2/1/15. Challenge is getting data from their iDoc system into AOE.

Greenfield, IN is the Copeland site that will start with AOE for Climate. Copeland is on track to have a test file sent by first part of January 2015. Will have difficulty in entering dimensional information.

Ridge Tool in Cambridge also on track to have test files sent by the end of December. Working through issues on ship unit.

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Dallas Cross Dock Implementation Status

ECT is seeing 91% acceptance on loads out of Grapevine and 55% acceptance on McAllen to Grapevine.  Volume is 38 – 66 shipments/week.   Performance issues at crossdock are improving as they have added several temp workers to load & unload.   All FTL shipments to Ava, Lebanon, Greenfield and Rushville are moving through the crossdock.

Visited Menlo on 21 August to define requirements for point to point booking & routing through crossdocks.   Expectation is that this will be implemented with the SCO update to version 6.3.3.  Timeline is pending.

Expected flows through Dallas have been defined and will be implemented in 4 Waves

|Wave |Description |Volume through Dallas |Timing |

|1 |Copeland FTL from Border to Ava, Lebanon, Greenfield Rush |41/Wk NB |Current |

|2 |Copeland SB, ENP from Tipp Basin, Copeland NB & SB LTL, West |49/Wk NB, 40/Wk SB |After SCO Config |

| |Coast TL.  Select Lanes for IA & CIS | | |

|3 |FCL from West Coast to Border & Tex (& TIPP?) |Addl 15 Wk (Texas Only) |2 Months after Wave 2 |

|4 |Chicago Basin to Border, Remaining EPM, IA & CIS to Border |Addl 6/Wk SB, 1/Wk NB minimum |With Chicago Crossdock |

| | |(Excludes HMD) | |

Next Steps:  Finalize dates for SCO update.  Meet with carriers and Crossdock Providers to discuss plans and determine required resources – Mid September.   Define drayage providers, process and labeling requirements for bringing Ocean containers direct to Dallas

SCO Operational Updates

Menlo manual intervention fee (Sep 2014)

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• 2015 LTL Onboarding Schedule

o SCO team presented with list of targeted suppliers for LTL leakage. Suppliers have been assigned to various team members based upon which business units have the largest spend. Total targeted LTL leakage spend is $14.5 million.

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• Ticketing Management System (Go live Nov 1st)

o Implementation will be transparent to end users. End users continue to send email to scosupport@; Email integration to to automatically create and assign cases. Announcement sent out to all users on 10/30/14.

• Carrier Updates

o Storm Trucking (FB carrier for In-Sink-Erator) and Barker Transportation (TL carrier for Climate Technologies) were trained on 9/30/14. Both carriers have contract effective dates of 10/5/14.

• Business Units

o Valve Automation: Missed loads on last day of the month. Shipper requested for flatbed equipment. First 3 primary carriers rejected the tender and went to spot bid. Carrier (Carter) who won the spot bid did not realize that the shipment required FB equipment. Carrier sent enclosed trailers instead. Carter does not have flatbed equipment to cover this load. BU/Mode team requested to remove Carter from Spot bid list (COMPLETED)

➢ Long term solution is to send broadcast/spot bid invites to carriers based on requested equipment type (i.e. Dry van vs. Flatbed). Solutions team is exploring options to determine the best method to achieve the expected results. Completed with October 2014 migration

• Priority Service – SCO team to cover more thoroughly during SHIPPER training sessions (this high priority tracking is underutilized currently).

ENP: Mike Adler

• Action Items from last call – MA working to pull together updated cost impact for extending contingency. Completed – 11/14/14

• Leakage / Menlo fees

• Program leakage updates:

• Working out timing of onboarding for ENP-Lorain, OH. Ana working with Lisa Dowd to nail down start date.

▪ Ana and Lisa confirmed Lorain using the portal

▪ ESNA - McAllen/Reynosa already on-boarded. So we are good.

• ENP Liebert-Delaware advised to have Menlo take loads right to spot bid when not providing sufficient lead time between order entry and required pickup date versus calling carriers outside program

• Site Visits

• Elizabeth and I to meet on Friday to confirm we are on-track with action-items and gauge implementation progress at Avocent and Welcome.

▪ Weekly meeting scheduled to review on-boarding/implementation with Elizabeth

• Just concluded the Avocent visit 10/6 and 10/7

▪ Conducted training on entering orders in SCO, track and trace, reporting and metrics.

▪ Conducted review of SCO program and cross-dock program

▪ Only had $35 in manual intervention fees last period

▪ Plan to onboard inbound supplier freight:

o we will provide list by 10/17

o Avocent will send surveys and invite by 11/1

▪ Plan to onboard outbound freight:

o Air - immediate

o LTL – testing and discussion with carriers to ensure they can handle last minute requests. 11/1 go/no-go decision – confirmed they are using portal

▪ 30/30 Snapshot:

o 30 days prior: 4 shipments and $1913 spend for the month

o 30 days after: not yet available

• Meeting with ASCO Power in Welcome 10/20 and 10/21

▪ Provided overview of Logistics, SCO and Cross-dock programs on Monday

▪ ASCO advises that OB LTL onboarding will require IT project to be able to utilize “high volume” solution. May be late FY 2015 before plan can be implemented.

▪ Provided portal training 11/4 for folks at Avtron in OH

▪ 30/30 Snapshot:

o 30 days prior: 37 shipments and $87,310 spend for the month

o 30 days after: not yet available

• Carrier Metrics

• Standard Forwarding: Had conversation with Jim Trench three weeks ago where we discussed the project to improve on-time delivery.

o Sent metrics for review and held follow-up call on 9/12. Average OTD since May is 84%. Jim claims real OTD is 99% and delta is due to not allocating resources to update status in portal.

o Most Recent 4 weeks Metrics:

▪ OTD = 94% (up 10% from start!)

▪ On time pickup = 94%

▪ Required Status Events = 98%

o We have the right people engaged and they are doing root cause into each late delivery. Focused on EDI issues and clearing out “hold route” status internally should get us to goal.

o Re-group in late November to gauge progress and determine next steps if not at goal.

• Landstar: Had conversation 3 weeks ago with Tony Latorre. Sent metrics for review and held call with LSLG team.

o Average OTD since May is 89%. 4 of the 11% lates are due to no status updates. So could improve to 93% OTD just by updating all statuses.

o We identified some possible reasons for not meeting OTD goal: EDI issue, process changes, new staff and carriers, confusion with reason codes and accepting broadcast loads already past delivery date.

▪ LSLG will Pareto these and we will re-group to discuss solutions and completions dates for the fixes this week as Tony L. was out last week.

▪ Provided feedback on the EDI issue from Ken Deters.

o Landstar was not prepared for scheduled meeting last week as Tony was out on medical leave.

▪ They are preparing for action items and timing for next scheduled call 10/10.

o Most Recent 4 weeks Metrics:

▪ OTD = 95% (up 6% from start!)

▪ On time pickup = 97%

▪ Required Status Events = 97.8%

o Meeting next week to determine next steps to achieve consistent on-time performance

o EPM & CIS: Carol Scott

o Manual Intervention Charges

• Received the September Charges

• Daniel Measurement - Houston has a few users that have repetitive issues

o They have asked for a Q/A Session with their shipping groups and their Export team. Working on meeting times.

o On Boarding

o Heidi Williams / Ben Johnson working diligently from their side for the suppliers

o From the GROUND Leakage report – everything is pretty up-to-date with the exception of those going through the Automated Solution

➢ TRAX going live with Instrument and Valve this month

➢ Once they are live on TRAX; they are ready to be on boarded for the Automated Solution to SCO

o EPM:  Rosemont LTL – Chihuahua

➢ User ID’s have been pending for 3+weeks

• User ID’s and Passwords still not complete for the shipping personnel

o Users will all need to share the same email address

o They have a few users that are not in the global directory which is against the EMERSON IT Policy – against sharing computers.

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o Russ following up on this policy

o and going to advise

• Brian has 2 users he is going to get created out of the 6 so we can hopefully get them back on track.

➢ SCO Team review the new On-Boarding Plan for 2015

• Numbers are from August – Andrew to have more current data to us by this week

• Many locations on the data given to us are those that have been previously on boarded, working with the BU’s to push from their side.

o Site visits updates:

• SCO Advanced training is scheduled for Nov 6th after the ground team conference. Invitations have been sent out to other business groups.

o Verbal feedback has been very positive.

o Surveymonkey was sent out and results are pending to see where we can improve going forward.

• Irvine /Calexico / Mexicali – Dec 2nd – 4th

• Attendees:

o IA/CIS: Richard DeYoung ,

o ENP: Terrie Kim, Jim Rossi,

o EPM: Heidi Williams, Roberto Ordaz, Jason Mooneyham

o Carrier Metrics

➢ FedEx Metrics

• Several issues pointing back to the incorrect BOL being used and the SCO SHIP ID not being referenced properly to the carrier

o One major supplier; Bernsten Brass is having issues with no FedEx pro# syncing up

o FedEx is having an issue at their local terminal – it’s being worked on.

o Twin City Diecasting: also a billing issue at the local terminal not capturing the SCO BOL #; users are using the correct paperwork.

• FedEx not currently sending back their Appnt Code updates: Daniel Straw of FedEx has a fix in place through their IT that will be implemented BY Jan 1st

➢ KWEI Metrics

• Movement Type (DTD, DTA – etc) is still an issue – we will need to push during training that this is imperative; as it cannot be changed once it’s tender accepted.

• Action Log created by KWE to get through all the gaps

• Held another call on 10/23 – basically no updates on the outstanding shipments

o Bob Palmer confirmed no transit time changes will be addressed until our data is cleaned up – we don’t have supporting data to justify increased transit on 30+ lanes

o Pushed a data dump from Novita that gave them the shipments that also included the HWAB to be updated

o Call scheduled with Ying on Friday 11/7 for an update on these shipment statuses.

• Got through BBR’s – no updates or changes since

• Actually worse this week than the weeks previous for OTD @ 59%

• Email sent to Roy and Bob Palmer to reiterate the goals here.

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➢ SCO TRAINING

o SCO Training Documents sent to Daniel Nieto for Spanish translation ad Tommy Tang for Chinese; goal date is Nov 28th to have posted on the Emerson Suppliers website

o ECT: Melissa Larsen

ECT ONBOARDING

o Sensata – Sensata was advised eff 11/1/2014 ECT will begin to debit their account $25 per shipment for non-compliance, their Ft. Worth facility will attend training this Thursday, 10/23/2014 – Sensata did not join the 10/23 or 10/30 supplier training and have not entered any orders for ECT Per Doug 11/4:   process has been put in place with ECT Manila Team to debit their account on any LTL shipments made outside the Program, beginning 11/1/14.

Homero Chavez with ECT Reynosa is traveling to Sensata next week to train

o Received new 2015 onboarding plan – includes LTL shippers/suppliers over $50k annual spend, data is from Aug but mode team will be pushing out new numbers this week or next.

-SCO Support team to meet weekly with Andrew & Steve to review onboarding updates

o ML to work with ECT/Dave to ensure onboarded suppliers are using SCO BL and entering all shipments into SCO.

o Twin City Die - No status updates for LTL shipments. Reviewed with Supplier and confirmed TCD is using the SCO BOL.  FedEx not capturing shipment ID.  Escalated to Jeff S. and origin terminal retrained.

ECT MANUAL INTERVENTION

• August

Top 3 change types

1) 72 RETE/retenders, mostly MCAD (before commitment allocation was in place)

2) 51 OOTH/broadcast bid outside threshold, bid approvals

3) 26 PRTD/Premium tendering – no bids, re bid

26 TRTM/insufficient transit time

-3 insert users in Mexico with multiple TRTM/insufficient transit time, sent to Daniel to address

- reached out to ECT re: insert user for Dynametals, transit time issues & does not appear to be using program BL, Jason to follow up/address

23 COCO /cost correction

-New Boston – Ava/Lebanon on BNBH, now being billed as accessorial, should be nonissue going forward

ECT’s August manual intervention fees were down 7% from July

September report not yet received

• September

RSCO-NA down 4% from Aug

RSCO-EU up 3% from Aug

ALCC –up 3% from Aug

Overall % of total is down 2% from Aug

|ECT Menlo manual |JUN % |JULY % |AUG % |SEP % |OCT % |

|Fee |Charge |Charge |Charge |Charge |Charge |

|RSCO-NA |41% |40% |29% |25% |  |

|RSCO-EU |21% |17% |14% |17% |  |

|ALCC |7% |4% |5% |8% |  |

|% of TOTAL |35% |30% |23% |21% |  |

-Slight increase in Europe due to Mikulov AOE upload; 12 orders were planned with delivery dates on weekend & were resolved by Menlo team

-ML to review and address ALCC first since this was up from Aug report:

21/326 6.4% shipments with manual intervention

Reaching out WR Malaysia supplier first as had most orders (5) with TRTM/insufficient transit time

-Sent file to ECT 11/17 to review and assist in addressing RSCO NA

-Sent crossdock shipments with manual intervention to Tim to review/address

Crossdock expedite process was modified to minimize manual intervention, although if truly an expedite Menlo will still need to manually intervene

SITE VISTS

o Site visits – Sidney OH Dec 3

CARRIER PERFORMANCE METRICS:

o Holland/HMES

Week 45

OTD = 90%

On time pickup = 86%

Required Status Events = 99%

NOTE: Holland and YRC RDWY had an outage 11/3 at 1:30pm causing both carriers to not receive any tenders. Shipments scheduled with 11/3 pickup dates were not picked up as a result. Tenders with 11/4 pickup date were resent, tenders with 11/3 pickup date were withdrawn, transit dates were pushed up one day on the orders so they will replan and new tenders sent. The issue was resolved late night 11/3.

Recent issues:

-Hermetic’s supplier Elantas entered separate order but consolidated with another shipment. Addressed.

o YRC Roadway/RDWY

Week 45

OTD =72 %

On time pickup = 26%

Required Status Events = 96%

Recent issues:

-The supplier’s backup entered orders and used both BLs. YRC used supplier BL and billed to non matchpay account.

-Insert user edited order resulting in new shipment ID/BL. The old BL was given to the driver

-EPM Supplier Innovative Products – Insert user was not receiving email with link to print the BL, was manually printing the BL but printing the Europe ‘delivery note’ vs. North America BL. FIXED, now receiving the BL and knows which document to use when/if has to pull manually.

o Central Freight Lines/CENF

Central Freight Lines has been added as they were awarded new business from

the bid. Don Bieber has provided a contact to work with on the metrics.

Week 45

OTD = 74%

On time pickup = 80%

Required Status Events = 97%

Recent issues:

Insert user in Mexico entering the orders, but US broker at the border was not using the program BL.

-Central stated did not receive 3 EDI tenders, sent them the 204 receipt confirmation from Ken.

CRS: Kimberly Brown

• Leakage / Menlo fees

• Ridge Tool - KB and DG visited Elyria 6/16 – additional follow ups from trip

o Russ Foster’s password has been reset and instructions sent on how to use the Dashboard for carrier metrics/review of lanes with tender acceptance issues. Russ to begin working with carriers on low acceptance lanes. Additional one-on-one training scheduled for July 9, 2014

o Warren Steiner is working on appointing backup for Russ Foster on business unit escalation matrix for approval of spot bids over threshold – no backup for Russ at Ridge Tool, but Ron Lindsay and Jeanne Scott assigned as escalation contacts for Ridgid Products (removed Russ Foster from this business unit 7/9/14)

• ClosetMaid - KB and RDY to visit Ocala on September 10 to review processes causing high RETE & OCAT fees. DG sent out an email to ClosetMaid on 6/3 with breakdown of fees from March. Next largest cost is broadcast tenders outside of threshold/need approval. While this has changed to spot bid, will need to review newer data. – this item remains open. Their procurement team will be completing their Perfect Execution training (3 or 4 days) – will tie in well to meeting

• Met with various order entry personnel and reviewed pain points

o Carriers just showing up and not calling to schedule appointments – notes have been put on all locations which will be sent with tenders and printed on BOLs to resolve issue that drivers are to call for pickup/delivery appointments regardless of what is shown on BOL

o Explained in detail how system plans orders based upon date/time restrictions – greater understanding results in less frustrations for users

o Spent time with Lynne Wortham reviewing how to search for specific data; discussed shipment date planning

o Met with Bill Marcy, Danielle Ford, Procurement, Materials and others in group meeting to review SCO program and how it ties in to Perfect Execution Strategy to help drive additional support. Also discussed LTL/TL industry and importance of being good customer

• In-Sink-Erator – except for two lanes identified below, remaining ISE leakage is drayage lanes. ISE uses 1 non-contracted carrier (All States Trucking) and one contracted carrier that does not have current rates and is not onboarded into the portal (Elite). ISE has been advised to work with mode team to get them currently contracted so that once the drayage option is available the suppliers / carriers can be onboarded. Remaining leakage is:

• O/B Racine LTL – 7/28/14 KB inquired when would begin; Gary Wingate and Joe Ackermann said too many o/b orders to manually input; waiting for automated order entry

• Supplier Nucor ships with an onboarded carrier (TQYL). They entered freight last year but stopped in August 2013 due to shipments going to broadcast. Currently reviewing carriers with rates in portal and following up with carriers to assure they will accept tenders, and then will have Nucor begin entering orders again.

• Menlo intervention fee –

• Ridge Tool / Flynn – 9/25/14 Russ Foster sent email to TL mode team to request allocation setup for 3 lanes to prevent/reduce Menlo Intervention Fees (loads tendering to low cost carrier, but need to go to FYTS due to time constraints and spotted trailers). This will reduce retender fees by $175 per month and reduce Menlo and Emerson emails.

• In-Sink-Erator – TQYL allowed 13 shipments to time out in August. KB followed up with Gary Wingate.

• Onboarding

• InterMetro Oldsmar, FL location – KB working with Matt Jeckell and Steve Cole to onboard LTL in next couple of weeks (LTL spend $80,095)

• Tyco Electronics (Hermetics supplier) – 8/27/14 @ 1:30 p.m. KB to provide demo to Tyco management and business unit personnel, Emerson procurement (Ming Zu). This supplier is beginning baby steps. Currently there is damage to packaging being received in McAllen via FedEx LTL (product not damaged, just packaging). Bill Wood is working to getting them to ship through Tipp City cross dock to reduce handling/damage (LTL spend $77,598); training went smoothly; Tyco advised they use portals for no other customers and that their legal dept requires them to use their company-generated BOLs. We suggested they print ours and include copy with theirs as the carrier must have the shipment id in order to connect the shipment to our program. Tyco advised they will need to get back with their management to review additional costs required for this manual process (theirs is automated). 9/5/14 Tyco advised still reviewing; this may require them to hire someone to enable this process on their end. 10/1/14 per Ming Zu, Tyco contract expires at end of calendar 2014. SCO requirement is included in new contract. Should know more early in 2015.

• Ridge Tool / embedded freight – Ridge Tool switching from Crucible steel provider in October to Dunkirk Specialty Steel which will enter freight through SCO program. KB trained new supplier on 9/18/14 (Amy Gress has been instrumental in getting this accomplished). KB sent note to Richard DeYoung to keep updated and for reporting purposes.

• Emerson Canada – KB provided overview to Karen Larsen during meeting (Mike Williams and Steve Comerford were on site; KB over WebEx conference call). Will target trainings for Canada locations last week of November (just prior to go live). Trainings will be divided based upon user needs (order entry, reporting, track and trace). While all topics covered, emphasis will be on areas they will utilize.

o 11/18/14 While carriers are ready to onboard, SCO team has not received any supplier onboarding files. Steve Comerford sent out an email to the mode team and GLBLs on 11/13/14 with copy of onboarding file and request for business units to send to their suppliers and for them to send me a list of the suppliers to be onboarded so that we can keep track of who is responding /not responding. As of 11/18/14, I only received one note from Bob Herlan advising that Liebert Services had no intra-Canada shipments. If we receive no onboarding files, the go live date of December 1 will not happen.

• Carrier Metric Updates

• CH Robinson

o CH Robinson – metrics for Week 45:

▪ Tender acceptance 64% for 1st tender; 50% overall (298 total tenders; 149 accepted)

▪ Overall required status updates provided was 99%

▪ On-time pickup was 98%

▪ On-time delivery was 95%

• UPS

o UPS Air shipments – metrics (see air mode team section)

o Steve Comerford hosted first call on 9/17; following meeting KB sent UPS reports on shipments with missing or only partial tracking / status updates. UPS to begin reviewing. 10/14/14 UPS will be coming to St. Louis for meeting to do a deep dive into why status updates are not being populated in the portal (this meeting will focus on international air shipments). KB has requested a person to work with on LTL shipments. During the call UPS was less than enthusiastic about digging into the details and advised their system only allows them to go back 30 days. For shipments prior to 9/1/2014:

▪ International air has 5,000 shipment with zero status updates and 1,293 with partial updates

▪ 10/14/14 – meeting held with UPS regarding international air cargo shipments; both sales personnel and edi personnel (Sharon Hooks called in) attended enabling the meeting to be productive (Wade Lancaster, Bruce Heisler, and

• UPS does not currently capture when freight arrives at origin airport. UPS sales team was surprised by this. They capture when freight is ready to move and when all paperwork is received, but currently capture no information in regards to dwell time at airport. They will review internally. This status event is a required event and it is reported on 0 shipments. Fixing this one issue would greatly improve their scores.

• Many shipments report at least one update, but not all updates. UPS found an internal issue where their personnel are entering reference numbers in a field causing the update to not flow through. They will review internally how to correct/prevent. They advised it is not a field they can hard code to prevent.

• Delayed status events – UPS has hard coded to apply all to 4th stop. This does not let Emerson know where the issue is actually occurring. Emerson needs to be able to see where the freight is/where the issue is occurring. UPS will review internally.

▪ Jesse Arnold (customer solutions / program manager) sent KB list of shipments out of Calexico for which no tenders were received. KB is still reviewing them, but appears to be from Asco Numatics and Rosemount Analytic. The shipments are mostly small parcel size, but are being shipping through the air freight program with call ins. KB to follow up with the business unit personnel to confirm if should be sent parcel or air freight. If air freight, they need to enter through the portal. KB sent emails to business units and copied escalation personnel for both; Jesse Arnold has not seen further issues with Calexico locations.

▪ 10/31/14 Jesse sent leakage out of Ridge Tool Cambridge and Therm-O-Disc Mansfield; KB sent emails to both and copied GLBLs. Therm-O-Disc confirmed the leakage will be taken care of and Ridge Tool is being given additional training on the international air cargo shipments to eliminate future leakage.

o UPS LTL – metrics for Week 45:

▪ Tender acceptance – n/a as auto accept

▪ Overall required status updates provided was 96%

▪ On-time pickup was 85%

▪ On-time delivery was 75%

o Skip Keene working with KB to improve LTL scores; shipments since September 1, 2014

▪ 422 total shipments

▪ 389 green/closed out (92%)

▪ 33 white / no updates (8%)

▪ 0 yellow / some updates

• Planned site visits: InterMetro (TBD); KB to visit Emerson Canada in January for post implementation meeting to work through any issues questions. Karen Larsen to invite business units to her location for centralized visit.

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