Proven Integrated Supply Strategies

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Company Overview

• One of the largest privately held Industrial Distributors in North America

• Founded in early 1900’s; incorporated in 1956

• 2,300 Suppliers

• 3,100 Customers

• 134,000 Line Item Inventory

• Specialize in Grinding, Metal-cutting & Assembly manufacturing environments

• Customer Cost Savings Team focus

• Industry Leader in Integrated Supply

• Only Industrial Distributor with a registered and trademarked Cost Savings Program

• Online Catalog and Ordering

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The ETCO Difference

Our philosophy:

• We strive to be a valued partner to all our customers.

• Our obligation, as a supplier to world-class manufacturers, is to perform in accordance with world-class industrial supply chain standards. These standards include:

Supplying customers defect-free products

Providing our customers with timely delivery

Superior in-house technical expertise

Exceptional customer service

Unparalleled array of value-added services

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Facilities

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Metalworking Fluids Test Lab

• Coolant Management

• Analysis Capabilities (concentration, bacteria, PH, alkaline, non-fatty solvents)

• Support Mechanism for Supplier Products & Personnel

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Material Handling & Assembly

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ETCO Solutions and Demonstrations Center

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Cutting Tool Technology& Test Center

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Integrated Supply Services

Services

Manufacturing Focus• Technical & Manufacturing Improvements

• Process Improvements• Assembly Tool Presetting• Resharpened Tool Management• Customized Hydraulic Workholding• Cutting Tool Presetting• Machine Tool Turnkey Processing• Pneumatic Control Design & Build• Power Tool Repair• Product Management Staff• Tool Balancing• Tool Inspection• Tool Testing• Tool Packages / Kitting• Training

• Machining Concepts• Product Application

Administrative Focus• Administrative Improvements

• Process Improvements• Budget Management• Coolant/Fluid Management• Machine Repair Part Management• Order Processing• Order Expediting• Order Receiving• Supplier Conversions

• Logistic Improvements • Bin Replenishment Service• Daily No Charge Deliveries• Point of Use Delivery• Reusable Containers

• Quality & Continuous Improvement• Gage Calibration & Certification• Gage Repair• Preventive Maintenance

• Efficiency Improvements• Bar Coding• Credit Card Processing• EDI / e-Commerce• Vending / Tool Dispensing Machines

• TDS®• CribMaster ®

• Storage Solutions• Software Packages

• CribMaster ®• Replenish Scan ®• Infor SXe ®

•Training• Software Utilization• 5S

• Cash Flow Improvements• Consigned Inventory• Crib Inventory Management• Batch Invoicing• Summary Billing

• Documentation• Cost Reduction (CODEX ®)• Time Utilization• Flow Charts

• Survey / Study Services

Price Focus• Materials Management Group

• Supplier Evaluations• Sourcing

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Cost Savings

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Cost Savings Advantage

“What sets us apart from other companies doing integrated supply is our focus on cost savings related to manufacturing and production, as opposed to administrative overhead costs”

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Typical Cost Savings Over Time

Early Years Middle Years Later Years0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Due to typical integrator’s focus on clerical functions only, cost savings decrease over time because cost savings opportunities decrease over time…transaction counts cannot decrease below “ZERO”. Thus...

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ETCO Cost Savings Over Time

Early Years Middle Years Later Years0%

10%20%30%40%50%60%70%80%90%

100%

Administrative Prices Manufacturing

Engman-Taylor’s intense focus on manufacturing related cost savings ensures continued cost savings opportunities long after transaction counts have been reduced to the lowest possible levels. Thus...

Cost Circles Program

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®

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ETCO’s Three Cost Circle® Groups• Manufacturing

It this the best tool for the job? Is it being used properly?

• Administrative Is this item getting to the

POU in the most efficient way? Ordering controls?

• Price Materials Mgt. Group looks

at all possible pricing scenarios and leveraging opportunities.

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Tool Package Services

From Concept to Run off to Production ETCO will support you through the process from start to finish

Enhanced Services Systems

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Dispensing & Inventory Management

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Enhanced Services System Offerings

ETCO’s software of choice for tool crib

managementETCO’s POU Tool Dispensing System

ETCO’s system for bin stock programs

Replenish Scan

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Replenish Scan

• User friendly

• Web based communication with ETCO

• Email, and or EDI replenishment

• Customer controls replenishment

• ETCO replenishes based on customers demand

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Replenish ScanDelivery & Ordering

ETCO employee scansbar-code for replenishment

Order is sent via EDI and email confirmations are sent to the customerMaterial is delivered to POU

and put away by ETCO.

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POU Tool Dispensing System

• 60 helixes with varied pitches based on the product being dispensed.

• The security of a dispensing program without the upfront costs associated with most systems.

• Uptime Monitoring System

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CribMaster and ETCO

• CribMaster – The World Leader in Tool Management Systems• ETCO was the first distributor of CribMaster products in the world.• ETCO is a Master Distributor with a full staff of in house Support

Specialists.• ETCO has been instrumental in the development of numerous

CribMaster software / hardware products• ETCO has unmatched experience in inventory management

systems support and dispensing equipment.• ETCO resides on the CribMaster Product Review Board.

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CribMaster Enterprise Opportunities• One database of records across all facilities

• Visibility of MRO inventory across the enterprise

• Standardization Reporting

Inventory consolidation

Aged inventory visibility

Transfer inventory

Ability to interface with corporate operating system

• Consigned inventory

• Monitor order controls

• Simplify electronic order process

• Inventory reduction

• Transactional accountability

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Point Of Use Solutions

Centered Around CribMaster Software

PM Software

Cab-Lock

Modu-Lock

ToolBox

Multi-Lock

ProStock

MultiStore

ToolCube

Weigh Station RFID Accu-Drawer RFID Accu-Cab

ToolCube II

CompuCribRF Scanners

Intelli-Stock

AccuCab Hybrid

RFID Accu-Port

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RFID Solutions

Customer Installations

Storage Solutions

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Automated Storage

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Space Utilization

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We thank you for your valuable time!

We will attempt to answer any questions that you may have.