holding

Corporate Structure

44 German operations2,000 people workingAverage savings 18%Proven track record

What do we do? headwaylogistic manages and executes labour intensive picking functions within clients’ distribution facilities.

What’s different?Activity Based Charging. We are not supplying “agency” warehouse staff.We are an outsourced logistics service provider.

Why do we do it? 42% of warehouse labour is involved in picking. Labour remains the second highest cost component within the supply chain.

How do we do it? By aligning our performance based pricing with our clients objectives, headway logistic is responsible for increasing productivity, improving quality and reducing cost.

What are the benefits?Cost reduction. This service offers the potential to reduce headcount, increase flexibility and transform fixed costs into variable costs within your existing operation without capital investment.

Project Structure and Implementation

Organisation of phasecontent

PROCESS Instruments forhandling the phase

• Identification of performances andprocesses in the company• Drawing up and assessing performance profiles• Identification of potential outsourcingopportunities/risks

•Determine core competences• Selection of performances and processesfor outsourcing

• Service presentation by headwaylogistic• Discussion of target profile• Viewing of customer-specific data

• Service evaluation• Concept and project alignment• Establishing contacts

• Allocating tasks and areas of responsibility• Formulation of contract wording

• Initiation of co-operation• Evaluate opportunities and risks specificto phases• Performance and quality controlling• Fine-tuning of individual procedures

As-is analysis

MAKE-or-BUYdecision

headwaylogisticProject

presentation

project alignment

Contract

Projectimplementation

• Portfolio analysis• Cost accounting procedure• Financial methods

• Performance data• Workplace descriptions• Other company data

• Strength and weakness balance• Company philosophy• Business analysis

• Lawyer consultation• Sample contracts

• Controlling instruments• Management meetings• Quality feedback rounds

• Strengths and weaknesses analysis• Efficiency analysis

Case Studies

The Number One in Germany's food retail sector, EUR 38 billion in total turnover and around 9,600 supermarkets.

60 pickers and Supervision at the DC in Hamm working alongside Permanent and Agency staff.A further 14 Edeka warehouses under contract with headway across Germany

Full operation of food warehouse with a weekly pick of 465,000 cases.60 pickers and 2 executive staff, monitoring of booking and clearing of delivery notesQuality assurance according to the principles of the hTQM. Additional staff allocation during delivery peaksIncrease productivity from 160 to 230 picks per hour leading to the removal of the Cost-intensive nightshift

3 month project handling of the entire packaging of a renowned airline15 warehouse specialists and 1 lead workerIncoming goods inspection Putting into stock - taking out of stock - order picking – packaging, returns, Qualified staff exchange at various locationsConstant access to flexible staff capacities for urgent orders.

Frozen food warehouse with a weekly pick of 60,000 in the summer and 30,000 in the winterFlexible deployment of 9 to 20 workersPickers, forklift, truck drivers, executive staffWarehouse management, incoming goods, outgoing goods, vehicle loading, Continuous inventory workQuality inspections in all working sectionsExtremely low error rate thanks to individual performance wage systemFixed costs were done away with - only performance was paid for

Conclusions

• Work study and cost analysis will quickly prove / disprove the business case

• Proven track record

• No capital investment

• Managed service

• Can work alongside existing workers

• Easy to replicate for other sites

• Activity based charging

• Guaranteed savings