Reed Esarove(704) 564-0211

About PalletOne America’s #1 Pallet Builder 25 Million Pallets Produced Annually

– 21 million new– 4 million recycled

Over $200 Million Annual Revenues 850 Truckloads a Week Experienced Management 17 Facilities in 11 States Over 1,200 Employees Unparalleled Industry Expertise Recognized Experts In Wood Packaging

PalletOne, Inc. Locations

Service JIT Delivery 4 - 24 Hour “emergency” service EDI & EFT accounting capability Entrepreneurial spirit

– Willingness to innovate– Ability to open facility near your location

Computer Automated Pallet Design Services (PDS)

Experienced sales team available anytime

Production flexibility Reliable delivery

Customer Loyalty Meeting the customer’s needs

– Communicate & participate in design – Retool and reorganize for new product– Reliable lumber supply– Protect through participation in decision

making– Loyal customers receive priority

Quick response– 20,000 to 30,000 pallets per day– Stock inventory load at nearest location

Consulting Services– Study, design and implement cost efficient

pallet program guaranteed to reduce costs

Product Portfolio Specialty pallet capability

– Block– Stringer– New/Used– Custom Design– Any species

Pallets 101 An Engineered Product Pallet Design System

– Nail Performance– Lumber Properties– Weight Tolerances– Stacking and Racking

Performance– Load Bridging and Unit Load

Deformation– Equipment Spans and Unit

Load Deflection Key To Successful Bid

Process– Accurate Specifications

Key To Successful Cost Savings – Audit of Your Material

Handling System– Awareness of Industry

Trends

Pallet Impact On Your System Costs

Cube Utilization Handling Rates Equipment Cost Product Damage Labor Costs Cost of Disposal Insurance Costs

The Concept – A Systems Approach

Maintain Current Program Audit Your Material Handling

System– Focus On Pallets As Interface – Redesign for efficiency

Make Recommendations For Savings

Implement Approved SolutionsSystem

Efficiency =Significa

ntCost

Savings

Site Audits Verify Specifications Identify Service Requirements Pallet Loading Techniques Record Storage System Study Pallet Movement in Warehouse Material Handling Equipment Review Interview Warehouse personnel Export requirements Top vendors and customers (supply

chain synergy)

Recommendations Detailed By Site Verified Current Specification PDS drawing with complete analysis Redesign recommendation (if

needed)– based on current lumber trends

Service requirements Recommendations for savings

Customer Benefits Expertise Knowledge Experience National Network Ability to partner Ability to deliver customized solutions

for national distribution

Success Stories

Georgia Pacific/Domtar- Cost Reduction Initiative- Experiencing Product Damage Due To Pallet

Failure- Need To Standardize - Center For Unit Load Design Study &

Recommendation

Pallet Redesign – 5% Of Total Spend- Plus Reduced Product Damage

Held Down Costs An Additional 2.5%– Flexible Raw Material Sources– Allows For Spec Adjustment In Volatile Lumber

Market– Adjust Specifications While Meeting

Performance Requirements

"PalletOne is an outstanding supplier. Their products are of great quality and value and they have a commitment to satisfying the customer that is second to none."

Charlie Thompson, Sr. Process EngineerQuality Department

Success Stories

Armstrong– Vendor Consolidation Initiative – 28 Pallet Suppliers

To 1– Initiative To Reduce Costs

Vendor Consolidation – 6% Reduction– Purely Price Reduction– Plus Reduced Administrative Burden– Supplied 18 Locations– Managed 13 Third Party Suppliers And Reduced To 5

On-going Evaluation – 5% Additional Reduction– Pallet Redesign– Site Audits– Standardization– Conversion To Recycled Pallets– Reduced Product Damage

“Dealing with the conversion issues at our manufacturing facilities was quite a challenge, especially in minimizing the impact on our day-to-day operations. Your program has had both business and financial rewards for Armstrong."

Gregory Deascenti, Worldwide Packaging Procurement Manager

Success Stories

Arizona Chemical– Looking For National Supplier With A Systems

Approach– Uncertainty Due To Changing Export

Requirements

Warehouse & Site Audits – Shipping And Receiving Practices– Specification Evaluation– Export Needs– Pallet Redesign

10-12% Savings In First Year– PalletOne Is Primary Supplier And Manages

Third Party

“I really liked the approach PalletOne took. By visiting our sites they were able to make recommendations that we had not considered and put the ideas into action. Their approach saved us time and money. ”

John Carpenter, ManagerPlant Purchasing

Benefits Top-Notch Expertise

– Industry Trend Analysis And Communication– Educated and Trained On Newest Technology

Solid Capacity Strong Lumber Resources Single-source Supplier Positioned to Grow With You Opportunity For Continued Savings