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Bombardier Parts Logistics

Important Changes to Bombardier’s Warehouse Management System

2

Improving the parts experience through an improved Warehouse Management System

This presentation details important changes to Bombardier’s warehouse management system taking place November 15, 2010.

We invite you to read on to learn more about special arrangements being made to provide support during the system migration period from November 12 – 15 as well as important changes to processes and procedures you should be aware of.

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New Warehouse Management System

1. What is the new system?

2. When does the change take place, and what will happen during migration?

3. What are the changes that impact customers?

4. What if I have questions?

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1. Bombardier’s new warehouse management system

A simpler way to manage our warehouses:Currently, Parts Logistics manages its warehouses through a combination of 2 systems – Bombardier’s SAP and Caterpillar Logistics’ LIMSThe new solution will consolidate the software into one simplified system within Bombardier SAP, to provide:

Greater functionality Increased flexibilityImproved visibility of inventoryBetter inventory management and accuracyEnhanced automation and fewer manual processes

The new system will be used for the Chicago and Frankfurt warehouses

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2. When does the change take place, and what will happen during migration to the new system?

NOVEMBER 2010Sunday Monday Tuesday Wednesday Thursday Friday Saturday7 8 9 10 11 12 13

14 15 16 17 18 19 20AOG

SupportOnly

1S Go-Live

AOGSupport

Only

AOGSupport

Only

Our computer systems will be offline from 2300 Central Standard time (CST) on Friday 12 November until 0500 CST on Monday 15 November. We will offer AOG support only on cutover weekend. Critical and C Check orders will be filled if capacity permits.

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3. What are the Changes that Impact Customers?

1. Order Confirmations

2. Warehouse documents

3. Invoices

4. Order Consolidation

NewOld

We will use “old” and “new” icons to help illustrate what will change in the

documentation you receive from Bombardier

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Two Changes to Order Confirmations

Today we provide you an up front air waybill on your order confirmation and an email notification when the part is shipped

Sometimes you are not able to track either air waybill because it changes in the shipping processYou requested that we include your Customer Purchase Order number on the email notification

Today you see single digit priority information on your order confirmations

Going forward you will still receive order confirmations with up front air waybills and an email notification when the part is shipped

Air waybill accuracy in the shipping notification email will improve and can be trackedCustomer PO number included on email notification

Going forward (for all depots) you will see two digit priority codes and description on your order confirmations

1st digit is mainly used by Customer Service and Material Logistics2nd digit is mainly used by the distribution centre or depot

1st

Change

2nd

Change

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Test Contact NameTest Payment TermsTest Email address

Order Confirmation MinorChange

Test CustomerTest Address

43.1043.10


Order Type Delivery Priority

AOG Next Flight Out

11

AOG Overnight 12

Critical 22

Normal 32

Routine 33

Initial Provisioning (IP)

64

Consolidated 75

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Revised Order Priorities

We will manage your Routine orders to ship within 2 to 3 days following the release of the outbound delivery.

33Routine

We will define your consolidation parameters with you in advance and we will manage your consolidated orders to support predetermined carrier cutoff times.

75Consolidated

We will work with Customer Service to process and stage your IP order to meet your required shipping dates.

64Initial Provisioning (IP)

We will manage your Normal orders to support same day carrier cutoff times following the release of the outbound delivery.

32Normal

We will manage your Critical orders to support same day carrier cutoff times following the release of the outbound delivery.

22Critical

We will manage your AOG orders to support Cargo Air Carrier (e.g. Fed Ex, UPS, DHL) cutoff times following the release of the outbound delivery.

12AOG Overnight

We will manage your AOG orders to support Next Flight out or Counter to Counter shipments by an Independent Carrier (e.g. Expeditors, Sterling) following the release of the outbound delivery.

11AOG Next Flight Out

DefinitionsDelivery PriorityOrder Type

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Delivery Note Email

This is a mock up only. The final document may look slightly different.



Will include your

purchase order

reference number (as previously requested)

The air waybill tracking

number will be more

accurate and will track when you

receive this message

MinorChange


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Changes that Impact Customers



3. Invoices


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Warehouse Documents Today and Tomorrow

CID Summary

Case Packing List

Airworthiness Certification

Vendor Certificate of Compliance

Commercial / Pro Forma Invoice

Pick Ticket Label

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Document Do you receive this today?

What changes after November 15, 2010?

CID Summary Yes, for orders received from Chicago. The CID Summary links regulatory documents to the case packing list.

Yes, for orders received from Chicago. The CID Summary links regulatory documents to the case packing list.

You will also see a new label for shipments received from Frankfurt and Chicago

Warehouse Documents - Today and Tomorrow

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Example – CID Summary

The CID Number is an internal

Bombardier tracking number.

This is the airworthiness

certification number.

Old

This is the Certificate

Identification Document

(CID) Summary.

This accompanies all shipments from Chicago.

NoChange

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New Certificate Identification Document (CID) Label

Starting November 15, 2010 two labels will be consolidated into a single label (a sticker attached to part packaging) including the CID number and Material Number

The Certification Identification Document (CID) Summary is an internal Bombardier number that links Bombardier’s Certificate of Conformance statement to the vendor’s airworthiness document for a specific part

You will see this on shipments from the Chicago and Frankfurt distribution centres

At a future date this may apply to all depots. We will advise you if this happens.

New

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Case Packing List Yes. Two new sections will be added:1) “Grand Invoice Total“ will be provided for all Consolidated Shipments2) “Transportation Details” will be provided including weight and dimensions, delivery priorities and air waybills


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The Case Packing List is included

with all shipments

The Delivery No. and Item link the Case Packing List

to the CID Summary

This form will continue to be used for shipments

from Sydney, Tokyo,

Beijing and Dubai

Example – Case Packing List

Test Customer

Test AddressTest Customer

Test Address

Old

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Case Packing List New

After November

15, this new form will be

used for shipments

from Chicago and Frankfurt

only.

Weights and dimensions

are now included and the Customer

Purchase Order

Number

Test Customer

Test Address

Test Customer

Test Address

Customer Purchase Order: Test 123

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Airworthiness Certification8130-3 Form (FAA)

2400-78 Form (Canada)

EASA Form (European Union)

Yes. One of the three airworthiness certification forms is provided depending upon how the material was certified.The exception is a standard part received by Bombardier after Nov 26th, 2007 in which case you receive a Vendor Certificate of Compliance.

On Forms 8130-3 and 2400-78 the Form Tracking number sequence found in “Block 3” will be reformatted for shipments from Chicago (the earlier version of the form are still valid and will be used for current stock on hand in the depots)

There are no changes to the EASA Form


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Example – Airworthiness Certification

The box “Form Tracking Number”

(Block 3) is found on FAA,

Transport Canada, and

EASA documents

This numbering sequence

changes as of November 15th,

2010

OldNew

NumberingSequence

The airworthiness certificate is linked to the CID Summary by the Form Tracking Number

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Vendor Certificate of Conformance

Yes, if it’s for a standard part received by Bombardier after Nov. 26th, 2007.

For parts Bombardier received prior to Nov. 26th, 2007 you may still receive an Airworthiness Certificate or Bombardier Release Note, both of which are acceptable.

No Change


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Example – Vendor Certificate of Compliance (C of C)

For standard parts, Bombardier is acting as a distributor

Therefore Bombardier is including the certificate of

conformance (C of C) from the vendor for shipments received by Bombardier before Nov 26th

2007

For stock received by Bombardier before November 26, 2007, you may still receive

an airworthiness certificate or a Bombardier release note

The Bombardier Purchase Order number links the vendor C of C to the form tracking number on

the CID Summary

Old No Change

23



Commercial / Pro Forma Invoice

Yes, if the final shipping destination is outside the United States.

Will still be included if the final shipping destination is outside the United States. An expanded “Reference Section” now includes the Grand Total of consolidation.

The original customer purchase order now shows on this document


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Example – Pro Forma InvoiceA pro forma

invoice is included in

all shipments where the

final destination is outside the

United States

The “No.” field on this form links to the “Delivery Number” on

the CID Summary

Test Customer

Test Address

Old

Test Customer

Test Address

25

Example - Pro Forma Invoice (cont’d)

This is Page 2 of the Pro

Forma Invoice

Shipments within the US will not receive a Pro Forma Invoice

Old

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Example Commercial / Pro Forma Invoice For shipments from Chicago and Frankfurt only

New

The “References” section now includes the Customer Purchase order number to easily link to the SAP sales order and delivery note

numbers

Test Customer

Test Address

Test Customer

Test Address

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Example Commercial / Pro Forma Invoice For shipments from Chicago and Frankfurt only

New

Consolidated shipments show the Grand Total of the

shipment

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Pick Ticket Label Occasionally, attached to part or packaging.

The format and information on the Pick Ticket Label is changing. You will see a Handling Unit Number (HU#) that connects the sales order to the warehouse transaction.


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E Pick Ticket New

Old pick tickets these may still be attached to

parts from previous deployment activities

Old

The new Pick Ticket connects the Customer Order and Priority at the

warehouse level. The new format will start Nov 15, 2010 for shipments from

Chicago and Frankfurt

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3. Invoices


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InvoiceInstead of being a separate line item (FREIGHT1) on

the invoice, as of November 15th, the Freight costs will be a subtotal under the first line item on the invoice.

Today As of November 15th

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3. Invoices

4. Order ConsolidationWe will launch money saving order consolidation options after the 1S platform is stabilized (Q4, 2010)

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You May Choose to Consolidate Daily or Weekly

You can consolidate if:Your orders have the same:

Customer CodeShip to AddressCarrier (eg Fed Ex) and Service Level (eg 10:30 AM)Any delivery priority code except for 11 – AOG Next Flight Out

Consolidation is clearly indicated on your Purchase OrderYour consolidation parameters have been programmed into our consolidation table in advance

Hazardous materials may be consolidated if the parts have the same United Nations Number (UN#) and if weight limits are not exceeded as per International Civil Aviation Organization (ICAO) and the United States Code of Federal Regulations (CFR)

Please be aware that canceling an order scheduled for consolidation or changing your shipping method is possible, but requires manual intervention

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Daily Order Consolidation Process Flow

Your consolidation profile must be set up in advance and a daily cut off time

established

Daily ConsolidationD

istib

utio

nC

arrie

r /Tr

ansp

orta

tion

Cus

tom

erS

ervi

ce

Collect/ InitiateProcessing of

orders dependentcarrier choice

Review size ofconsolidation for

possible additionalstaffing or pickup

by carrier

Close out dailyconsolidation and

update Carriertracking of

consolidation forCustomer

Input Order byConsolidation Dayat 8am or 12pm

CST

Provide proof oftender / delivery of

consolidation

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Weekly Order Consolidation Process Flow

If you are interested in weekly order consolidation, what day do you believe

your organization will prefer?

Note: If one day proves to be overwhelmingly popular we will work with the Customer Service and Sales teams to develop criteria for assigning weekly consolidation days.

Weekly Consolidation

Car

rier /

Tran

spor

tatio

nD

istib

utio

n C

usto

mer

Ser

vice

Provide proof oftender / delivery of

consolidation

Input Order byConsolidation Day

at 12am CST

Close out weeklyconsolidation and

update Carriertracking of

consolidation forCustomer

Review size ofconsolidation for

possible additionalstaffing or pickup

by carrier

Collect/ InitiateProcessing of

orders dependentcarrier choice

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What happens when I choose to consolidate my orders?1. Contact your Customer Account Manager to request weekly order

consolidation A profile will be set up for your account in the distribution centreRequests for specific days will be considered but cannot be guaranteed You will be informed of your consolidation day and cutoff times

Note: no action is required for customers to benefit from natural consolidation within a picking wave

2. Once consolidation is configured for your account, you must note on your purchase orders that you are requesting order consolidation

Your order will be booked as per usual using an “order consolidation” code which you will see on your order confirmationWhen stock on hand is available, the delivery note is transferred to the distribution centreThe distribution centre holds your delivery note in queue until it is time to release the picking wave

3. We pick, pack and ship your consolidated order to meet the carrier’s cut off times

Consolidating orders may help you reduce freight costs

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Order Consolidation -- Questions and Answers

Order consolidation will not be available on November 15th, 2010 so when will the option become available to me?

We must first stabilize One System and estimate we will be able to start offering order consolidation in January 2011.

On what days will Commercial Aircraft customers be able to consolidate orders weekly?

Tentatively we have reserved Monday, Wednesday and Friday for Commercial Aircraft orders. However, all weekdays are in scope to meet the needs of Commercial and Business aircraft customers. Due to carrier cutoff times, Saturdays and Sundays are not options for weekly consolidation.

Can I consolidate my orders from any depot?Only orders shipping from the same depot (either Chicago or Frankfurt) may be consolidated at this time

If I choose to consolidate, do I have to consolidate all of my orders?No, you have the choice on which orders you would like to consolidate but it must be clearly indicated on your Purchase Order

Order Consolidation -- Questions and AnswersWhat happens if I decide to consolidate an order and I change my mind?

After the order cutoff time assigned to your account, it is a manual process to change your order. Changes before your cutoff time are relatively easy to make.

How do I get an air waybill for consolidated orders?Upon completion of picking and packaging the order is tendered for transportation, the confirmed air waybill(s) will be emailed to you

What are the cutoff times for order consolidation?Note: This means your order must be booked and the delivery note generated to the warehouse by this time. Local time = Local time Chicago and local time Frankfurt

Daily Consolidation

Order Cutoff Ship By08:00 Local time (Europe /

Asia - Exports)Carrier Cutoff

12:00 (noon) Local Time (North and South America -

Exports)

Carrier Cutoff

12:00 (noon) Local Time All Domestic (US)

Carrier Cutoff

Weekly Consolidation

Order Cutoff Ship By23:59 Local Time

(Domestic and Exports) the day before Carrier

Cutoff(i.e. Monday 23:59)

Carrier Cutoff

(i.e. Tuesday Carrier Cutoff)

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4. What if I have questions ?

Please call Customer Services at your usual contact numbers.

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