Thank You Thank you for taking the time

Thank You Thank you for taking the time to meet with us today to talk about Vendor Managed Inventory. We appreciate your consideration for this opportunity to serve you.

Overview GOALS • Partnership • Cost Savings • Maintaining Inventory Both Automated & Manual HOW IT WORKS • Reporting Features • Billing COMPANY PROFILES • AIR VEND/AMS • D&L

Vendor-Managed Inventory Our Goal – build a partnership with our customers to improve availability of tooling, supplies & technology. Reducing overhead and paperwork by selecting the areas that best suit your strengths. Apply the most advanced cutting tool solutions on your shop floor for maximum productivity.

Our Responsibility to You • To ensure our customer has the tooling and accessories readily available when needed and where needed • Knowledge of high usage items allows us to stock back-up inventory at our location • D&L stocking responsibilities and machine maintenance • Local inventory at our location enables us to respond quicker to your needs • Vending Machine @ No Cost to you!

Packaging

Cost Savings • Reduce paperwork by fewer purchase orders • Reduce accounting cost by once-aweek billing • Promos from D&L and Our Manufacturing partners will be a continuous part of cost savings • The majority of items ordered will be brought into us and delivered on our trucks therefore reducing shipping costs

Cost Saving Advantage • D&L has one of the most technical inside and outside customer service people, all of my sales personal have had real life manufacturing experience & can help reduce tooling cost on the shop floor. • Your company does not have to research all the part numbers of that you are using or would like to use, we can do that for you. • As you will see on the next slide, you can save more money by increasing production on the shop floor.

Production Cost / Part 20% Tools Price Reduction (99. 4%) -0. 6% -20% Actual Production Cost 100% Cutting Tools -0. 6% 20% Increase in Productivity (Speed & Feed) (85%) -15% 3% Other Costs 22% Machine 27% -20% Labor Raw Material 31% 17% -15%

Why D&L Vendor-Managed Inventory Solutions • We stock (locally) products for our VMI customers • We currently have over 25, 000 inventory items in stock totaling over 800 K and growing in our facility in Irwin, PA. We can use automated vending machines to handle point of use applications or we can handle manual tool room inventory, or a combination that works for you, the customer. •

Why D&L Vendor-Managed Inventory Solutions • Weekly billing which keeps your accounting costs to a bare minimum. • We offer FREE delivery to our VMI customers. • No Cost to you, we cover the machine.

About Our Vending Supplier AMS is our preferred vendor provider because not only are they the only vendor that has their own vending & lockers system, but they are also the only vendor that designs their own software.

THE AMS FACTORY

Automated Vending Coil Units With our integrated plug-and-play inventory control software and intuitive touchscreen interface, you can set up 1 sourcevend’s machines anywhere with a cell-phone signal, Wi-Fi or hardline internet connection. Our system goes from out of the box to up and running in hours, not days. You will: • Reduce consumption by 20%+. • Save valuable time with point-of-use dispensing. • Streamline purchasing. • Receive detailed reporting of usage and spending. • Have 24/7 secure access without additional staff. Refrigerated and mini-coil units are also available. Please inquire.

The AMS Keeper • Up to 70 Selections per Unit • Employs Sensit 3 • Sturdy modular construction

The AMS Keeper Shelves • Interchange ability • Steel construction • Simple conversion

The “Mini-Tray” • Steel construction • Helix drive • Able to vend difficult items – tiny, odd shape. • 32, 20, and 10 count pitch available

AMS Options • • 7 th Shelf for an extra ten selections Mini-Tray Product Pusher Helix Alignment Bar

Automated Vending Manager (AVM) Locker Units With our integrated plug-and-play inventory control software and intuitive touchscreen interface, our locker units can be set up anywhere with a cell-phone signal, wifi or hardline Internet connection. Our locker units include check-in, check-out functionality for reusable high-value items. Our customers will: • Reduce consumption by 20%+. • Save valuable time with point-of-use dispensing. • Streamline purchasing. • Receive detailed reporting of usage and spending. • Have 24/7 secure access without additional staff. Locker Unit Dimensions: 44”W X 21”D X 72”H

Why Tool Vending? Daily operations, typically includes a wide variety of articles being ordered, which often enables employees the ability to order from different suppliers, which leads to a considerable amount of paperwork and effort for ordering, confirmations and billing. This situation calls for optimization! The Keeper provides relief from routine tasks, guarantee the constant availability of stored items and contribute to a general reduction in costs. Articles with a high turnover rate, such as end-mills and inserts that should be available within 24 hours, deserve particular attention. The Keeper offers a comprehensive range of automatic tool dispensers. Due to the large variety of different systems available, the demands of individual customers can be fulfilled.

Benefits The benefits of the Air-Vend System are that it offers more accurate usage tracking, personal costs savings, and reduced number of trips for delivery. When inventory levels of tools fall below the reorder point, automatic emails can be sent to the purchasing department to ensure an order is placed. This will insure that the machine is restocked in a timely manner so that the tools are available to the employees. Tracking the employee that uses each tool is another benefit that the customer will realize. The employee is required to enter their ID, password and optional job number before the machine will dispense a tool. An administrator is able to view reports of vending machine activity.

Multiple Reporting Functions Automatic transaction download available with the Cloud/Software, means that inventory reporting is using live data. • Usage by Machine • Usage by item • Usage by employee • Usage by Department • Low Inventory

Who We Are Our Facilities: D&L Industrial Supply has owned and occupied it’s existing facility in Irwin, PA since 1991. Our facility consists of 2000 square feet of Office space, 5, 000 square feet of warehouse.

Customer Focus Driven • D&L customer service is available – you speak to someone. • Technical support for the Cloud/Software and Keeper units is free • A Small monthly charge for the cloud/software eliminates the price of costly software upgrades • D&L associate can install machines

D & L Offers an Interactive Website D&L’s interactive web site is to offer additional technical information, Promos, and blogging opportunities for further assistance in the manufacturing process…visit our website today: www. dlindustrial. com

Discussion • VMI allowing you full flexibility with minimized number of vendors • Technical sales staff to assist in manufacturing • Back up inventory kept at our location • No Contracts for service • Small monthly fee for Cloud/Software • Product Focus to help reduce manufacturing costs

Decision • We offer vendor-managed inventory along with inventorymanaged solutions. We can offer you the spirit of competition, competitive pricing and Knowledgeable help on the floor. We have the right solution for you!