Solutions

for your

Supply Chain

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Competencies and BackgroundLAVA differentiate itself from the competition in three strategic areas.

• Flexible “best of breed” WMS and TMS information technology solutions; whether they are found internally, or from our Infor Global technology partner or outsourcing to other specialty providers.

• Development and adherence to a formal Quality Policy which includes a flexible quality “toolkit” to be used in our solution offerings.

• Employee involvement and empowerment to improve processes and procedures throughout the company.

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List of LAVA Services Provided • Contract Warehousing• Public Warehousing – Marketing Open Space• Pick and Pack Fulfillment• High Speed Packaging and Design• Automated labeling• Automated Palletizing• Kitting and Parts fulfillment• Inbound Logistics• Returns, inspection, refurbish• Shuttle service/plant deliveries

• Total Freight Management Services:• Network Optimization & Analysis• Freight Brokerage Services:

Truckload & LTL• Freight Bill Audit / Payment• Dedicated Cartage• Shuttle service/plant deliveries• Specialized Customer Service

Programs• Expedited & Airfreight• Freight Brokerage

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Who We AreLAVA Supply Chain Solutions is led by executives with decades of experience in both the third-party logistics (3PLs) and manufacturing industries.

LAVA is part of the Avalon Capital Group’s Inc. portfolio of companies. The executives of Avalon and LAVA trace their roots back to the Bekins Logistics Company and Gateway Computers. Avalon Capital is the wholly owned private investment company of Ted Waitt, co-founder of Gateway, Inc. Avalon Capital Group investments represent diverse interests in real estate, technology, health care, finance, and entertainment.

The management teams of both LAVA and Avalon understand that reliability, credibility and our culture of quality are paramount in developing trusted relationships with our clients. This is accomplished by the devotion, skill and dedication of LAVA’s employees who are the backbone of our company.

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Industry Experience

Our experience cuts through many industry verticals including consumer products, food, durables, services parts, chemical and agriculture related industries.

We provide sophisticated solutions for vendor managed inventories, bright stocking, value-added packaging and displays, and just-in-time services. Our management experience includes:

• Frozen: Wells-Dairy• Electronics: Vizio TV• Parts: John Deere• Appliances: Maytag• Food: Barilla Pasta• CPG: P&G• Agriculture: Monsanto• Chemical: BASF

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Ontario, California DC

LAVA’s Infor GLOBAL

SOLUTIONS WM 9.0The flagship best of breed Tier I Warehouse Management SystemDynamic Labor Management SystemLicense Plate RF – TechnologyReal Time Inventory BalanceSpace Optimization ToolsDynamic Order Picking

INNOVATION in Warehouse Management

Systems

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SAP WM Experience OverviewLAVA Supply Chain Solutions offers many years of Operational Management Experience in third party logistics. In fact, we have conducted project implementation and integration of SAP-WM RF for customers in these industries:

- Chemical: Implementation of both RDC and plant warehouse SAP systems

- Durables and retail kitchen & bath parts and fixtures

- Parts for both inbound plant and service PDCs

- Plant DCs for tobacco and CPG

Infor SCM Transportation Management

LAVA SCS can help you streamline your inbound and outbound transportation processes from order inception to delivery. We understand how transportation is critical to your success.

Our Infor SCM Transportation Management tools take your transportation planning and execution to a new level of efficiency, so you can:• Increase visibility of inventory in transit. • Choose the best carriers. • Achieve freight economies through optimization. • Link supply chain partners.

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Integrated Freight Management Services:

Global Transportation ManagementCarrier Management & DevelopmentDynamic & Planned Routing OptimizationShipment Visibility Freight Claims Processing & ResolutionVendor Management ServicesFreight Bill Audit & Payment ProgramCustomized Reporting & Analysis Key Performance IndicatorsSystems Integration

Infor SCM Transportation Management

LAVA SCS Infor SCM Transportation Management directs and automates the entire shipment lifecycle with capabilities like:

• Transportation planning—Analyze inbound and outbound shipment orders based on origin and destination. Consolidate them into loads. Determine the most cost-effective way to move loads based on constraints.

• Trading community infrastructure—Manage inbound and outbound freight from a single source. Process structured exchanges of information between enterprises and users with specific authority.

• Electronic load tender—Use multiple tender methods, including manual carrier selection and tendering, cascade tendering, or automated tendering from imported orders.

Infor SCM Transportation Management

• Shipment rate engine—Perform pre-tender rate reviews, get rated shipment visibility, and perform post delivery accessorial fee updates.

• Order visibility—View and control inventory at the granular stock keeping unit (SKU/part level) or track shipments at a higher level such as by carrier, origin, or destination.

• Enterprise integration—Integrate our logistics infrastructure with your enterprise software infrastructure so transportation and logistics align with overall business strategy.

Innovative PACKAGINGdrives customized solutions.

Value Added Services and packaging opens a world

of possibilities for cost savings.

We’ll handle you VAS whether it’s in a DC, or plant operated by our customer, or in a facility we provide.

• Pick and Pack• High Speed Packaging and

Design• Automated labeling• Automated Palletizing• Kitting and Parts fulfillment• Returns, inspection,

refurbish

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Innovation in Quality Management ensures success

“Quality from the Start”

Integrated “Preventable Action System”

Employee involvement on the floor

Trained auditors and Business Improvement Specialists

Drives Continuous Improvement

ISO QMS 9001:2000

Employee involvement

on on the floor

Trained Auditors and Operations

Management

Preventable Action System

Feedback and follow up

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Lean Management Practices

LAVA can initiate lean “Six-Sigma” processes and initiatives. Typical Process in a Value Added Services environment:

• Staff attend daily shift production meetings addressing any material flow issues impacting production.

• We identify root cause along with short and long term corrective actions for any identified defects.

• Management produces daily dashboard metrics which are posted• Lean and Six Sigma training and certification for DC staff.• LAVA resource provided basic lean and six sigma training.• Staff works on projects to gain certification.• DC Manager attending advanced Six Sigma training.• Weekly operations reviews with Henkel staff to review

performance against key metrics, along with on-going project reviews

Health and Safety

LAVA will provide an on-site Health and Safety Manager to help ensure compliance with work safety rules and document and record all preventative training.

This includes supplemental training such as:

• Safe warehousing and storage• Hazmat spills and clean-up• Safe lifting and handling techniques• Reducing manual handling injuries• Preventing slips and trips at work• Workplace transport, trailer and dock safety• Fitting and use of restraining systems on lift trucks

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References

James Champion Senior Manager, Supply Chain-Global Operations Covidien-Mallinckrodt Pharmaceuticals 314.654.1460

Todd ImhoffExecutive Vice President Global SourcingAlcoa Aluminum317.706.6736

Nick SalimbeneDistribution Manager Niagara Bottling610.844.4340

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Our Value Proposition SummaryLAVA Supply Chain Solutions is growing as premier provider of third-party logistics because we believe a sustainable contract warehouse relationship involves a culture of improvement and innovative thinking. We foster this culture by providing: 1. Formal customer service, safety and quality programs2. Experience with many Tier I WMS, and Labor Management Systems3. Our Continuous improvement Toolkit which looks outside the four walls

of the DC for process improvements 4. Coupled with a simple approach to gain-sharing productivity

improvements