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Productivity gains expected from Field Logistics

           Material Logistics Planning in Projects






            FL Org Today (FY17)                                        FL Org FY18                                                FL Org FY19


            Field Logistics Productivity given current                 Field Logistics Productivity given new                     Field Logistics Productivity given new
            resources                                                  resources (Org structure)                                  resources (Org structure)


            Target ≥ $ 0.45M                                           Target = $1.20M                                            Target = $1.35M
            Forecast ≥ $ 0.65M


            FC Productivity is primary related to Free                 New FL Org Structure will enable                           New FL Org Structure will enable
            Stock Mgmt (VAM) which is winding down                     Productivity for Solutions project logistics               Productivity for Solutions project logistics
            in FY18                                                    related to: freight cost, material                         related to: freight cost, warehouse HC and
            *additional productivity expected from                     ordering/handling, warehouse network                       facility reduction, install costs related to

            Service Inventory Optimization initiative                  optimization                                               value added services (kitting, etc.)
            (tbd).
                                                                                                 Tech / System Investment (impact starts mid-FY18)


                                                                                                 Optimizing SBT’s Supply Chain with “GAIN” is projected to Improve
                                                                                                 profit by $3-6M per year by reducing direct expenses and
                                                                                                 recapturing margin from previously lost sales.


                                                                                                 *GAINSystems ROM 6/23 (see WS files for details)
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           Page 28             08/07/2017                                       Names are for example only                                                            Siemens Industry, Inc.
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