RightChain Warehousing

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RightChain™ Warehousing Warehouse Optimization as a Service™ powered by rightchain.ai The World’s Most Advanced Warehouse Optimization and Planning Platform and Process

16% to 34% Lower Warehousing Cost 14% to 32% Higher Warehouse Productivity 12% to 29% Higher Storage Density 500+ DCs and 50,000,000+ square feet optimized.

Strategic and Tactical AI-based Warehouse Optimization and Analytics At Scale and Speed

RightChain.ai/warehousing

RightChain™ Incorporated

RightChain™ Warehousing The world’s most advanced warehouse optimization and planning platform and process.

RightChain™ Warehousing is hosted on the RightChain.ai Platform. The platform is a globally accessible, fully scalable, CloudAI platform. The platform hosts RightChain’s three Supply Chain Optimization as a Service™ suites including RightChain™ Warehousing, RightChain™ Inventory, and RightChain™ Transportation. Each suite includes optimization applications, intelligence applications, and learning applications. The three applications work in unison to form the world’s most power warehouse optimization, planning, analytics and learning platform.

RightChain™ Incorporated

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CloudAI SaaS PLATFORM: RightChain.ai RightChain™ Warehousing is a global CloudAI SaaS platform hosting some of the world’s most advanced warehousing optimizations, analytics, and education. FACILITATED PROCESS: RightChain™ Methodology RightChain™ Warehousing is also a transformational and continuous optimization process facilitated by RightChain’s developers, three of the world’s leading subject matter experts. EDUCATION PROGRAM: RightChain™ Institute RightChain™ Warehousing is also an education and training program teaching fundamentals, best practices, metrics, and advanced systems and analytics for receiving, putaway, storage, picking, and shipping AND skilled use of the RightChain.ai Platform. Subscriptions include on-demand access to RightChain.ai, RightChain Institute, and WorldClassWarehousing.com as well as the related education sessions, workshops, and office hours.

Contents What is RightChain™ Warehousing? RightChain™ Warehousing aka Warehouse Optimization as a Service™ yields 16% to 34% lower warehousing costs via 12% to 32% increases in productivity and 12% to 29% increases in storage density.

RightChain™ Introduction RightChain™ Warehousing Overview RightChain™ Warehousing Applications RightChain™ Warehousing Credentials RightChain™ Warehousing Program

Contents CONTENTS

Supply Chain Optimization as a Service™ RightChain™ Client Customers RightChain™ Heritage RightChain.ai RightChain™ Solutions Team

Contents RightChain™ Introduction

RightChain.ai Platform Overview The brainchild of Dr. Ed Frazelle, RightChain’s founder and CEO, RightChain.ai is a CloudAI supply chain optimization and planning platform and process guiding the strategic and tactical supply chain decisions at the likes of Caterpillar, Coca-Cola, Colgate, Disney, Home Depot, KraftHeinz, Home Depot, Honda, et.al.

Advanced Technology

30+ years of advanced algorithm development in strategic and tactical inventory, transportation, warehousing, and supply chain optimization. 30+ years of domestic and international blue chip implementation experience in strategic and tactical inventory, transportation, warehousing, and supply chain optimization. 30+ years of methodological, process, and curriculum development in strategic and tactical inventory, transportation, warehousing, and supply chain optimization.

$49 Billion Inventory. Optimized. RightChain™ Inventory Inventory Optimization as a Service You can edit this text RightChain™ Transportation Transportation Optimization as a Service $9 Billion Transportation. Optimized. RightChain™ Warehousing Warehouse Optimization as a Service 250+ DCs, 50+ million sq. ft. Optimized.

RightChain.ai Large scale, high-speed, strategic and tactical inventory, transportation, warehouse, and supply chain optimization SaaS platform.

Blue Chip Experience

Proven Methodology

RightChain™ Incorporated

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Supply Chain Optimization as a Service™ RightChain™ employs its 30-year proven methodology, elite SaaS decision technology, and unparalleled professional services to optimize supply chain design, planning and operations for inventory, transportation, and warehousing.

30+ Years of Successful RightChain™ Implementations Optimization

AI-Based Optimization Algorithms

API Connectivity to Major WMS/TMS/ERP Optimizations, Simulations Visualizations, and Predictions

Systems and Solutions for Inventory, Transportation, Transportation, and Supply Chains

Lower Supply Chain Costs Less Supply Chain Inventory Higher Supply Chain Capital Utilization Improved Supply Chain Service

Cloud-AI Global SaaS Platform

Supply Chain Partnerships for Strategic, Tactical, and Operational Decision Making Award-Winning Business Recently Featured on PBS Information Matrix with Laurence Fishburne and FOX Business

Taught, Read, and Implemented in 8 Industries, 7 Languages, and 12 Countries

Masters and PhDs from Leading Universities with Elite Supply Chain Experience at Blue Chip Corporations

RightChain™ Incorporated

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RightChain™ Client Customers RightChain™ serves blue chip client customers in several major industries including aerospace, automotive, consumer products, food and beverage, healthcare, heavy industry, high tech, logistics, and telecommunications.

RightChain™ Industrials RightChain™ Tech & Health

Retail, Apparel and E-Commerce RightChain™ Retail

Transportation, Logistics, Wholesale Distribution RightChain™ Logistics

Fast Moving Consumer Goods RightChain™ CPG

High Technology and Healthcare

Aerospace, Automotive, and Heavy Industry

RightChain™ Incorporated

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RightChain™ Heritage RightChain’s heritage dates to Dr. Frazelle’s founding of The Logistics Institute and Supply ChainManagement Series at Georgia Tech in the early 1990s. RightChain continues to develop on parallel paths of client customer implementations and advanced supply chain research.

algorithms and metrics for supply chain optimization, Japan’s leadership role in logistics technology and processes Facilities Planning John Wiley

Launched joint supply chain education and consulting with TM Insight

Supply Chain Strategy McGraw-Hill Dr. Ed Frazelle helps establish The Logistics Institute Asia-Pacific at the National University of Singapore

Supply Chain Artificial Intelligence McGraw-Hill

Dr. Ed Frazelle Establishes The Logistics Institute at Georgia Tech

Supply Chain Research and Launched joint supply chain education and consulting with Mitsubishi Education Collaboration with Waseda University

Dr. Ed Frazelle’s Research Funded by the National Science Foundation to address

World Class Warehousing McGraw-Hill

Launched one of the world’s first remote supply chain optimization programs

World Class Warehousing McGraw-Hill Launched one of the world’s first integrated supply chain optimization and education platform

Inventory Strategy McGraw-Hill Launched joint supply chain education and consulting with GS1

Supply Chain Strategy McGraw-Hill Education Collaboration with Meiji University Supply Chain Research and

Launched one of the world’s first computer based logistics education programs

RightChain™ Incorporated | Supply Chains. Solved

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Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain.ai RightChain.ai is a CloudAI platform hosting RightChain’s proprietary algorithms solving the most co plex problems in inventory, transportation, warehousing, and supply chain planning. Access to the optimizations is provided via data uploads and/or API connectivity. RightChain.ai customers subscribe to one or more optimization suites. RightChain™ Inventory RightChain™ Transportation RightChain™ Warehousing

RightChain.ai

Dr. Ed Frazelle is one of the world's foremost authorities on supply chain optimization, technology, strategy and operations. He is former founder of The Logistics Institute and Supply Chain Management Series at Georgia Tech and author of McGraw-Hill's Logistics Management Library. Dr. Travis Smith is a PhD in aerospace engineering from Georgia Tech. His specialty is the development and application of artificial intelligence and advanced algorithms to complex supply chain problems in design and operations.

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Warehousing Core Team An award-winning s pply chain scientist, author and teacher. A literal rocket scientist, PhD in aerospace engineering An award-winning decision scientist from Duke University

Dr. Ed Frazelle President and CEO

Dr. Travis Smith Chief Technology Officer

Dr. Andrew Frazelle is a PhD in decision sciences and game theory from Duke University. He is an award-winning operations researcher and specializes in supply chain operations research and analytics.

Dr. Andrew Frazelle Chief Solutions Officer

Professional Services Team The RightChain™ team is a family of global supply chain leaders, each experienced and credentialed with large scale supply chain transformation successes – financial, technological, and organizational – in major corporations around the world.

Mr. Mark Braddock is RightChain’s Chief Commercial Officer. He is formerly with SAP and is a computer scientist from Radford University.

Founder of The Logistics Institute at Georgia Tech, Dr. Ed Frazelle is one of the world’s foremost authorities on supply chain strategy, operations, and technology.

Mr. Steve Erbe is formerly head of supply chain analytics for the Disney Corporation where he led the supply chain optimization for retail, food & beverage, and service.

Dr. Travis Smith holds his PhD in aerospace engineering from Georgia Tech. His specialty is artificial intelligence design for supply chain systems.

Professor Masaji Nakano leads RightChain Japan where he is one of the country’s leading authorities on supply chain and logistics systems and operations.

An award-winning scientist, Dr. Andrew Frazelle holds his PhD in decision sciences from Duke University. His specialty is supply chain optimization algorithm design.

Dr. Marcus Walker is RightChain’s Director of Data Science. He is a PhD in bioengineering from Georgia Tech. His specialty is supply chain database design.

Mr. Steve Westphal is former CFO, CSCO, and CTO for Coca-Cola Consolidated where he led the successful transformation of Coke’s supply chain operations.

Professor Jim Roach is former head of Honda North America where he successfully led all sales, service, supply chain, and logistics operations.

Dr. Matt Anderson is former head of logistics efficiency and effectiveness for the United States Armed Forces.

RightChain™ Incorporated | Supply Chains. Solved.

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We literally wrote THE BOOK on warehousing. RightChain™ Warehousing Benefits RightChain™ Warehousing Methodology RightChain™ Warehousing Use Profiles Warehouses Immersed in AI-Based Optimization Optimization, Intelligence, and Education Warehouse Optimization as a Service™ RightChain™ Warehousing Connectivity

Contents RightChain™ Warehousing Overview

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Warehousing We literally wrote THE book on warehousing!

Authored by Dr. Ed Frazelle, RightChain’s founder, and published by McGraw-Hill, World Class Warehousing is the world’s most widely read and implemented book on warehouse optimization, best practices, metrics, and systems.

Productivity increases 14% to 32%.

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Warehousing Benefits

Storage density increases 12% to 29%.

Storage Density and Accuracy

Warehousing cost decreases 16% to 34%.

Error rate decreases 4 to 11 points. Resource Productivity & Utilization

Transformational and Continuous Warehouse Optimization

RightChain™ Staffing Workforce Optimization

RightChain™ Layouts Warehouse Layout Optimization

RightChain™ Eaches Each Picking & Slotting Optimization

RightChain™ Cases Case Picking & Slotting Optimization

Storage Density and Accuracy

RightChain™ Pallets Pallet Storage, Picking, & Slotting Optimization

RightChain™ Warehousing Practices Best Practices & Practice Gaps

RightChain™ Warehousing Scoreboard Cost, Productivity, & Utilization Metrics

RightChain™ Warehousing Insights SKU & Order Patterns & Predictions

Resource Productivity & Utilization

RightChain™ Incorporated

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RightChain.ai is employed to answer the following warehouse optimization questions.

Planning & Strategy Use Case Scenarios

Operations & Execution Use Case Scenarios

Operations & Execution Users

Planning & Strategy Users

Planning

& Strategy

Operations

& Execution

What mix of storage modes for pallets, cases and eaches minimizes total warehousing cost in the long, middle, and short term for each SKU?

√

C/VP of Operations, Supply Chain, Logistics, Distribution Internal and external consultants, analysts and planners for supply chain, logistics, warehousing, and distribution

RightChain™ Storage

Operational warehouse cost reduction, productivity improvement, storage density, continuous improvement initiatives Re-slotting, re warehousing, location consolidation b

Level of automation, MHE modes and specifications, Warehouse sizing, Staffing requirements, Warehouse layout,

How much storage space and how many storage locations should be allocated to each SKU in each storage mode?

√

Directors, managers, and operators of logistics, distribution, warehousing, and shipping

RightChain™ Picking

Which slot location should each SKU be assigned to in order to minimize total warehousing cost and maximize picking productivity?

√

Warehouse concepting

RightChain™ Slotting

What material flow patterns and what warehouse layout minimizes total warehousing cost, maximizes resource productivity, and streamlines material movement? What staffing assignments of personnel to activities and work shifts maximizes warehouse productivity? 4

√

RightChain™ Flows

Warehouse operations management and scheduling c

√

Warehouse staffing

RightChain™ Warehousing Use Profile

RightChain™ Staffing

RightChain™ | Supply Chains. Solved.

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RightChain™ Warehousing | An Optimization Immersion Warehouses immersed in AI-based and conventional optimization and analytics.

RightChain™ Warehousing Scoreboard RightChain™ Staffing | Warehouse Workforce Optimization

RightChain™ Warehousing immerses all warehouse activities, resources, and decisions in advanced artificial intelligence and conventional optimization algorithms and analytics.

RightChain™ Layouts | Warehouse Layout Optimization

RightChain™ Pallets Pallet Picking Optimization RightChain™ Slotting

RightChain™ Cases Case Picking Optimization RightChain™ Slotting

RightChain™ Eaches Each Picking Optimization RightChain™ Slotting

RightChain™ Layouts | Warehouse Layout Optimization RightChain™ Docks | Dock & Yard Optimization

RightChain™ Warehousing Insights RightChain™ Warehousing Forecasts

RightChain™ Incorporated

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RightChain™ Warehousing | RightChain.ai/warehousing

Warehouse Control Tower

RightChain™ Warehouse Insights

WAREHOUSE OPTIMIZATION DESIGN

RightChain™ Staffing

Metrics Patterns Predictions Insights Practices

WAREHOUSE ACTIVITY & RESOURCE DATABASE

WAREHOUSE INTELLIGENCE SYSTEM

WAREHOUSE OPTIMIZATION SYSTEM

Optimizations Algorithms Methodologies

Staffing Optimization

RightChain™ Warehousing Metrics

RightChain™ Layouts

WAREHOUSE MANAGEMENT SYSTEM

RightChain™ Eaches

RightChain™ Pallets

RightChain™ Warehousing Practices

RightChain™ Cases

Warehouse Layout Optimization

Broken Case/Each Storage, Picking & Slotting Optimization

Pallet Storage, Picking & Slotting Optimization

Case Storage, Picking & Slotting Optimization

RightChain™ Incorporated

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Contents RightChain™ Warehousing Applications and Experiences

RightChain™ Warehousing Applications Overview RightChain™ Warehousing Applications Outline RightChain™ Warehousing Optimization Applications RightChain™ Warehousing Intelligence Applications RightChain™ Warehousing Education Applications

Warehouse Digital Twin

Warehouse Optimization System

RightChain™ Warehousing

WAREHOUSE OPTIMIZATION APPLICATIONS

Warehouse Optimization as a Service™

WAREHOUSE INTELLIGENCE APPLICATIONS

WAREHOUSE EDUCATION APPLICATIONS

RightChain™ Warehousing aka Warehouse Optimization as a Service™ is a subscription warehouse optimization program including access to a suite of cloud-hosed

warehouse optimization solutions, warehouse intelligence solutions, and warehouse education solutions.

Warehouse Intelligence System

Warehouse Education System

RightChain™ Warehousing | Warehouse Optimization as a Service™ RightChain™ Warehousing is a CloudAI SaaS platform hosting some of the world’s most advanced warehousing optimizations, analytics, and education. RightChain™ Warehousing is also a process and training program facilitated by RightChain’s developers, three of the world’s leading subject matter experts. RightChain™ Warehousing yields 16% to 34% lower warehousing costs via 12% to 32% increase in productivity and 12% to 29% increase in storage density. Along the way, we develop MHE/WMS business cases and educate subscribers in the fundamental and advanced principles of World-Class Warehousing. Subscriptions include on demand access to RightChain.ai, RightChain Institute, and WorldClassWarehousing.com as well as the related education sessions, workshops, and office hours.

• RightChain™ Warehousing Insights • RightChain™ Warehousing Forecasts • RightChain™ Warehousing Scoreboard • RightChain™ Warehousing Benchmarks • RightChain™ Warehousing Practices

• RightChain™ Pallets Pallet Picking Optimization • RightChain™ Cases Case Picking Optimization • RightChain™ Eaches Each Picking Optimization • RightChain™ Slotting Slotting Optimization • RightChain™ Docks Dock Capacity Optimization • RightChain™ Layouts Warehouse Layout Optimization • RightChain™ Staffing Warehouse Staffing Optimization

• RightChain™ School of Warehousing and Material Handling • RightChain™ Warehousing Workshops • RightChain™ Warehousing Office Hours • RightChain™ Warehousing Knowledgebase • RightChain™ Warehousing Community 14 15 16 17

2 3 4 5

WAREHOUSE LEARNING APPLICATIONS Warehouse Education System & Experiences

WAREHOUSE INTELLIGENCE APPLICATIONS Warehouse Intelligence System & Control Tower

WAREHOUSE OPTIMIZATION APPLICATIONS Warehouse Optimization System & Digital Twins

RightChain™ Incorporated

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WAREHOUSE OPTIMIZATION APPLICATIONS Warehouse Optimization System & Digital Twin

WAREHOUSE INTELLIGENCE APPLICATIONS Warehouse Intelligence System & Control Tower

WAREHOUSE LEARNING APPLICATIONS Principles, Practices, and Platform Education, Training, and Help

RightChain™ Pallets Pallet Picking Optimization RightChain™ Cases Case Picking Optimization RightChain™ Eaches Each Picking Optimization RightChain™ Slotting Slotting Optimization RightChain™ Docks Dock Capacity Optimization RightChain™ Layouts DC Layout Optimization

Pallet Storage Mode Optimization Pallet Handling Optimization Pallet Lane Depth Optimization Pallet Slotting Optimization Case Picking Mode Optimization Case Pick Face Size Optimization Case Pick Slotting Optimization

RightChain™ Warehousing Insights RightChain™ Warehousing Scoreboard RightChain™ Warehousing Forecasts RightChain™ Warehousing Practices

RightChain™ School of Warehousing RightChain™ Warehousing Workshops

SKU Rankings Order Pattern Recognition Order Line Pattern Recognition Activity Based Costing, Resource Based Costing, Accuracies, Productivity, Occupancy, Utilizations Forecasted order, order line, pallet, case, each, and financial activity. Warehousing best practices assessment for receiving, putaway, storage, picking, and shipping. Warehouse Workforce Optimization, Forecasted Staff Requirements, Optimized Mix of Full-Time, Part Time and Over-Time

Dr. Frazelle’s live and on-demand teaching on World Class Warehousing & Material Handling .

The RightChain™ team leads workshops dedicated to specific user deliverables and projects.

Each Picking Mode Optimization Each Pick Face Optimization Each Pick Slotting Optimization

Drs. Frazelle and Smith will hold weekly “office hours” for discussion and problem solving.

RightChain™ Office Hours

RightChain™ Warehousing Knowledgebase RightChain™ Warehousing Community Forum RightChain™ Warehousing Help/Q&As

Pallet Slotting Optimization Case Pick Slotting Optimization Each Pick Slotting Optimization

The world’s most comprehensive warehousing knowledgebase.

Interact with many of the world’s most capable warehousing professionals. Post project specific issues.

Forecasted Dock Requirements Long Term Dock Capacity Short Term Dock Capacity

RightChain™ Staffing

RightChain™ Warehousing Benchmarks

Building Design Optimization Block Layout Optimization Adjacency & Flow Optimization

APIs for connection to all RightChain™ Warehousing applications.

Comprehensive topical and technical help site.

RightChain™ Incorporated

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RightChain™ Warehousing The world’s most advanced warehouse optimization and planning platform.

RightChain™ Incorporated

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RightChain™ Eaches Each Picking Optimization

RightChain™ Pallets Pallet Picking Optimization

RightChain™ Cases Case Picking Optimization

RightChain™ Pallets minimizes the total cost of pallet storage and picking including labor, occupancy, vehicle operating cost, and the annualized cost of rack and vehicle investment. RightChain.ai assigns each SKU to its minimum cost combination of storage mode, storage configuration, and vehicle type. RightChain.ai considers all pallet storage modes including floor storage, stacking frames, single deep rack, double deep rack, push back rack, pallet flow rack, and mobile pallet rack. RightChain.ai considers all pallet handling types including walkie stackers, sit down counterbalance lift trucks, stand up counterbalance lift trucks, straddle trucks, straddle reach trucks, turret trucks, and ASRS machines.

RightChain™ Cases minimizes the total cost of case picking including picking and restocking labor, occupancy, vehicle operating cost, and the annualized cost of rack and vehicle investment. RightChain.ai assigns each SKU to its minimum cost combination of storage mode, storage configuration, and picking mechanism. RightChain.ai considers all each picking modes including flow rack, shelving, ASRS, pallet jacks, lift trucks, robotics, bot based ASRS, and automated guided shelving systems.

RightChain™ Eaches minimizes the total cost of each picking including picking and restocking labor, occupancy, vehicle operating cost, and the annualized cost of rack and vehicle investment. RightChain.ai assigns each SKU to its minimum cost combination of storage mode, storage configuration, and picking mechanism. RightChain.ai considers all each picking modes including bin shelving, storage drawers, carton flow rack, horizontal carousels, vertical carousels, traditional miniload ASRS, bot-based ASRS, and automated guided shelving systems.

RightChain™ Incorporated

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RightChain™ Staffing Warehouse Workforce Optimization

RightChain™ Slotting Slotting Optimization

RightChain™ Layouts Warehouse Layout Optimization

RightChain™ Slotting assigns each SKU to its optimal slot location and allocation of space and lanes incorporating SKU popularity, volumetrics, cube, pick paths, and relation with other SKUs for pallets, cases, and eaches. Originally developed in the early 1990s, RightChain’s proprietary and award winning slotting algorithms are the industry’s gold standard.

RightChain™ Layouts minimizes total material handling costs throughout the warehouse by exchanging the location activities in such a way as to maximize activity adjacency. In addition, RightChain.ai optimizes the overall building configuration, simulating various building widths, depths, and lengths.

RightChain™ Staffing minimizes the total cost of warehouse staffing by assigning each operator to their best fit activity, by maximizing the labor forecast accuracy, and by optimizing the mix of full-time, part-time, and over-time hours.

RightChain™ Incorporated

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RightChain™ Warehousing Insights

RightChain™ Warehousing Scoreboard

RightChain™ Warehousing Forecasts

RightChain™ Warehousing Insights provides actionable insights, analysis, trends, and statistics for warehousing transactions including receiving, storage, picking, shipping and loading at the order, line, pallet, case, each, and dollar units of measure and related ratios. Tableau-esque, RightChain™ Warehousing Insights provides Paretos, Partitions, Patterns, Maps, Correlations, Quartiles, and many other powerful statistical visualizations and filters for large databases of warehouse activity transactions.

RightChain™ Warehousing Scoreboard provides cost, productivity, accuracy, utilization, and performance baseline metrics for receiving, putaway, pallet storage and picking, case picking, each picking, order assembly, sortation, and shipping in order, line, unit, cube, weight, and dollar units of measure. A business case development and project justification engine are and integrated component.

RightChain™ Warehousing Forecasts is an AI-based forecasting application for warehousing activity including receipts, picks, and returns in several units of measure including orders, order lines, units, cube, weight, and dollars.

RightChain™ Incorporated

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RightChain™ Warehousing Benchmarks

RightChain™ Warehousing APIs

RightChain™ Warehousing Practices

RightChain™ has been benchmarking warehousing costs, productivity, storage density, and accuracy since the late 1980s when Dr. Frazelle launched the North American Logistics and Distribution Benchmarking Study. Since then, more than 1,000 warehouses have participated in this comprehensive analysis of comparative warehousing performance. The study is the basis for WERC’s warehouse benchmarking research.

RightChain™ Warehousing Practices allows users to assess their warehousing practices against 200+ best practices in receiving, putaway, storage, picking, shipping, workforce management, warehouse management systems, and material handling.

RightChain™ Warehousing APIs connect RightChain™ Warehousing optimization and analytic applications to existing WMS, TMS, and/or ERP applications.

RightChain™ Incorporated

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RightChain™ School of Warehousing and Material Handling

RightChain™ Warehousing Workshops

RightChain™ Warehousing Office Hours

Taught and adopted at some of the world’s most prestigious academic institutions including Georgia Tech, the National University of Singapore, Waseda University and Meiji University in Japan, as well as many of the world’s most prestigious corporations including Caterpillar, Coca-Cola, Disney, Honda, et.al., the RightChain™ School of Warehousing is the world’s longest running and most widely adopted warehousing curriculum.

RightChain™ Warehousing Optimization Workshops have the RightChain™ Team facilitating a journey through to a full warehouse optimization design including guiding insights, foundational KPIs, warehouse practice recommendations, pallet storage and picking design, case picking design, each picking design, order picking and slotting design, warehouse dock design, warehouse layout design, and warehouse staffing design.

RightChain™ Warehousing Office Hours have the RightChain™ Team online for discussions with users concerning questions related to the platform, projects, and/or principles.

RightChain™ Incorporated

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RightChain™ Warehousing Knowledgebase

RightChain™ Warehousing Community

RightChain™ Warehousing Help / Q&As

The RightChain™ Warehousing Knowledgebase is the world’s most comprehensive online searchable knowledgebase devoted to warehousing and material handling. The knowledgebase includes fundamentals, best practices, case studies, metrics, and technologies for receiving, putaway, pallet storage and picking, case picking, each picking, shipping, and warehouse layout.

The RightChain™ Warehousing Community Forum is where some of the world’s top warehousing professionals meet to collaborate on solutions that become part of their journey to world class warehousing practices and systems.

All RightChain™ Warehousing Community members have access to extensive online and on-demand Q&A and Help support for warehousing projects, principles, and the RightChain.ai platform.

RightChain™ Incorporated

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Paretos

Stratifications

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Warehousing Insights RightChain™ Warehousing Insights is a Tableau-esque application customized to warehousing activities including providing actionable insights via deep analytics and innovative visualizations.

Portfolios

Partitions

Anamolies

Predictions

Networks

Correlations

Activity Based Costing

Resource Based Costing

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Warehousing S orebo rd The RightChain™ Warehousing Scoreboard computes, monitors, and reports cost, productivity, utilization, and accuracy for receiving, putaway, pallet storage, case picking, each picking, value added services, sortation, shipping, and the warehouse as a whole.

Workforce Productivity

Resource Productivity

Activity Cycle Times

Resource Utilization

Shipment Accuracy

Performance Trending

Metrics

Analytics

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Warehouse Practices RightChain™ Warehousing Practices llows users to compare their practices in putaway, storage, picking, shipping, metrics, analytics, layout, MHE and WMS with 200+ warehousing best practices.

Receiving

Putaway

Storage

Order Picking

Shipping

WMS/MHE

RightChain™ School of Warehousing & Material Handling The world’s most comprehensive, longest running, and adopted curriculum on warehouse best practices and optimization.

The Role of Warehousing in Supply Chains and Business

Warehouse Performance, Cost, & Value Measures

Warehouse Activity Profiling and Pattern Recognition

World-Class Receiving and Putaway

Pallet Storage & Picking Systems & Optimization

Case Picking Systems & Optimization

Each Picking Systems & Optimization

Order Picking Optimization

Warehousing Dock & Yard Optimization

Slotting Optimization

Warehouse Workforce & Staffing Optimization

Warehouse Layout & Material Flow Optimization

RightChain™ Incorporated

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Contents RightChain™ Warehousing redential and Qualifications

We literally wrote THE BOOK on warehousing. RightChain™ Warehousing Around the World Example RightChain™ Warehousing Applications

Heavy Industry Use Cases Apparel/Retail Use Cases FMCG Use Cases RightChain™ Warehousing Examples

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Warehousing We literally wrote THE book on warehousing!

RightChain™Warehousing Influence 500+ DCs. 50 million square feet. 20+ countries. 7 Languages. Optimized.

EMEA

USCAN

APAC

LATAM

RightChain™ Incorporated

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Company

Sector(s)

Location(s) Taiwan, USA

Facilities

Footprint

Applied Materials

High Tech, PARTS Health & Beauty Heavy Industry Food & Beverage Food & Beverage Consumer Products Automotive, PARTS Food & Beverage High Tech, PARTS Health & Beauty

3 5 5 7 7 2 2 2 3 5 3 2 3 3

415,000 sf 947,000 sf 920,000 sf 5,380,000 sf 1,717,000 sf 2,145,000 sf 1,314,000 sf 3,208,000 sf 617,000 sf 404,000 sf 712,000 sf 1,484,000 sf 1,112,000 sf 654,000 sf 535,000 sf 780,000 sf 5,670,000 sf 28,429,000 sf

Avon

Colombia, Mexico, USA

Caterpillar Coca Cola

Canada, USA

Argentina, Brazil, Mexico, USA

Disney

Merchandise, MRO, PARTS

France, Japan, USA

General Mills

USA USA

Hallmark

Honda

Japan, USA

HP Hood

USA

LAM Research

Japan, USA

NuSkin

Japan, Korea, USA

Nutrisystem

E-commerce

USA

Pratt & Whitney

Aerospace, PARTS Aerospace, PARTS Maintenance, PARTS Valves & Fittings, PARTS Maintenance, PARTS

Canada, USA

Raytheon Rio Tinto Swagelok

USA

Australia, Singapore, USA Switzerland, Japan, USA

US Dept of Defense Sample of RightChain™ Warehousing Engagements

USA

125

RightChain™ Incorporated

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Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Warehousing Apparel | Retail | E-commerce Globally, more than 250 major DCs and warehouses, occupying more than 50 million square feet, employing more than 100,000 employees, in more than 20 countries, are working with RightChain guidance.

LL Bean (736,000 sf)

Disney (654,000 sf)

Payless (506,000 sf)

Nutrisystem (452,000 sf)

PriceSmart (614,000 sf)

Hallmark (588,000 sf)

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Warehousing Fast Moving Consumer Goods Globally, more than 250 major DCs and warehouses, occupying more than 50 million square feet, employing more than 100,000 employees, in more than 20 countries, are working with RightChain guidance.

M&MMars (716,000 sf)

Coca-Cola (663,000 sf)

HP Hood (398,000 sf)

BIC (408,000 sf)

Avon (363,000 sf)

General Mills (525,000 sf)

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Warehousing Heavy Industry Globally, more than 250 major DCs and warehouses, occupying more than 50 million square feet, employing more than 100,000 employees, in more than 20 countries, are working with RightChain guidance.

LAM Research (154,000 sf)

Raytheon (816,000 sf)

Pratt & Whitney (608,000 sf)

Honda (452,000 sf)

Swagelok (364,000 sf)

Caterpillar (152,000 sf)

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Warehousing RightChain™ Warehousing crafts bespoke optimization solutions for all kinds of warehousing and DC operating scenarios. Urban, suburban, and rural. Low, medium, and high tech. North America. Latin America. Europe. APAC. Raw materials. Component parts. Finished goods. Service Parts. Food. CPG. Retail. Heavy Industry. High Tech. Healthca e. Wholesale. E-commerce. Brick and mortar. Lights out. Lights on.

Automated Each Picking

Caterpillar DC Scoreboard

Case Pick Line Optimization

Pallet Storage Optimization

Automated Staging

Automated Sortation

Each Pick to Light

Case Pick to Voice

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Layouts RightChain™ Warehousing optimizations can be presented in all forms of visualizations including conceptual layout drawings, detailed layout drawings, 2D simulations, and 2D/3D animations.

Pallet ASRS/AGVS Loop

Robotic Case/Layer Picking

Truck Parts DC Design

Auto Parts DC Design

E-commerce DC Design

Retail Each/Case Pick Design

Multi-story DC Design

CPG Cross Dock Design

We developed the award-winning warehouse optimization algorithms, analytics, methodologies, and optimizations that many try to copy!

RightChain™ Incorporated

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Warehousing Pr gram

What’s Included RightChain™ Warehousing Process, Services, and Deliverables

RightChain™ Warehousing Solution Summary RightChain™ Warehousing Solutions Team RightChain™ Warehousing Fees, Expenses, Resources, and Assumptions

Multi-user access to RightChain™ Warehousing Optimization as a Service Cloud-AI Platform 1. RightChain™ Pallets | Pallet Storage Optimization 2. RightChain™ Cases | Case Picking Optimization 3. RightChain™ Eaches | Each Picking Optimization 4. RightChain™ Picking | Pick Face Optimization 5. RightChain™ Slotting | Slot Location Optimization 6. RightChain Layouts | Warehouse Layout Optimization 7. RightChain Staffing | Warehouse Workforce Optimization 8. RightChain™ Warehousing Insights | Warehouse Activity Patterns 9. RightChain™ Warehousing Forecasts | Warehouse Activity Forecasting 10. RightChain™ Warehousing Scoreboard | Warehouse Performance 11. RightChain™ Warehousing Practices | Warehouse Best Practices 12. RightChain™ Warehousing Benchmarks 13. The RightChain™ School of Warehousing & Material Handling 14. RightChain™ Warehousing Knowledgebase 15. RightChain™ Warehousing Peerboard Assessment of Current Performance, Practices, and Patterns and Related Recommendations for Improvement Warehouse Optimization Design for a Major DC or Warehouse MHE/WMS Business Case, Requirements and RFP Upfront RCW Configuration, Implementation, and Onboarding RightChain™ Warehousing APIs

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ War housing Program What’s Included

Education and Training Sessions, Workshop, and Office Hours

Month 1: Warehouse Assessment

Month 2: Core Optimization Design Month 3: Resource Optimization Design

Wk1

Wk2

Wk3

Wk4

Wk5

Wk6

Wk7

Wk8

Wk9

Wk10

Wk11

Wk12

RightChain™ Warehousing Scoreboard

Populate RightChain™ Warehousing database. RightChain™ Warehousing Database

Populate & execute RightChain™ Staffing. Warehouse Workforce Optimization. RightChain™ Staffing

RightChain™ Layouts

Populate and execute RightChain™ Pallets. Storage mode and vehicle optimization. Lane depth optimization. Slotting optimization. RightChain™ Pallets

Populate and execute RightChain™ Layouts. Material move optimization.

Populate & execute RightChain™ Warehousing Scoreboard

Populate and execute RightChain™ Cases. Case Storage Mode Optimization. Case Pick Face Optimization. Case slotting optimization. RightChain™ Cases Populate and execute RightChain™ Eaches. Each Picking Storage Mode Optimization. Pick Face Optimization. Slotting optimization. RightChain™ Eaches

RightChain™ Warehousing Insights

RightChain™ Warehousing Assessment

Deliverables Timeline

RightChain™ Finance

RightChain™ Docks

Finalize business cases for all warehousing scenarios.

Populate and execute RightChain™ Docks. Dock Capacity Optimization.

Assess and baseline current warehouse performance, practices and systems.

Populate & execute RightChain™ Insights. Paretos. Predictions. Patterns.

Optimization. Automation. Outsourcing.

Continuous Warehouse Optimization

1. Warehouse optimization database design and development. 2. Current warehouse management practices assessment. 3. Current warehouse performance benchmarking. 4. Deep SKU and order analytics, statistics, patterns, anomalies, and visualizations. 5. SKU-level storage mode optimization recommendations and specifications for pallets, cases, and eaches. 6. SKU-level pick face, lane depth, and/or lane allocations for pallets, cases, and eaches. 7. SKU-level slot location optimization recommendations for pallets, cases, and eaches. 7.

SKU-level slot location optimization recommendations for pallets, cases, and eaches. 8. Warehouse layout and material flow plan optimization design. 9. Warehouse staffing optimization recommendations. 10. Dock capacity and operations recommendations. 11. Summary business case including implementation plan for RightChain™ Warehousing optimization and automation recommendations. 12. Annual subscription to RightChain™ Warehousing for up to 3 users. 13. RightChain™ School of Warehousing for up to 10 students. 14. Access to RightChain™ Warehousing APIs.

RightChain™ | Supply Chains. Solved.

Page 47

Solution Summary 1. Warehouse optimization database design and development. 2. Current warehouse management practices and performance assessment. 3. Recommended warehouse performance, cost, and value metrics. 4. Deep SKU and order analytics, statistics, patterns, anomalies, and visualizations. 5. SKU-level storage mode optimization recommendations and specifications for pallets, cases, and eaches. 6. SKU-level pick face, lane depth, and/or lane allocations for pallets, cases, and eaches. 7. SKU-level slot location optimization recommendations for pallets, cases, and eaches. 8. Warehouse layout and material flow plan optimization designs for pilot facilities including warehouse concept design(s). 9. Warehouse staffing optimization and organization recommendations for each warehouse activity including unloading, putaway, pallet storage and picking, case storage and picking, order assembly, delivery loading, and shipping.

10. Management and execution system recommendations and requirements for WMS, PickToVoice, Palletization, and Delivery Picking. 11. Summary business case including implementation plan for RightChain™ Warehousing optimization recommendations for low, medium, and high levels of investment, automation, and reconfiguration requirements. 12. MHE/WMS evaluation (business case, system requirements development, RFP development, recommended supplier and solution candidates, evaluation of supplier and solutions proposals, and negotiating/contracting support) and implementation support. 13. RFP prepared for submission to MHE and MHE integration suppliers. 14. APIs for connectivity to RightChain.warehousing for continuous warehouse optimization and analytics for items #1 through #9 above. 15. Subscription to RightChain™ Warehousing for up to 5 users.

RightChain™ | Supply Chains. Solved.

Page 48

RightChain™ Warehouse Data Request

TRANSACTION DATA REQUEST • Date • Order ID • Customer ID • Customer Name

PRODUCT DATA REQUEST • SKU ID • SKU Name • Unit Weight • Unit Cost

HIGH LEVEL DATA REQUEST • Warehouse Layout Drawing • Warehouse Organization Chart • Warehouse Systems Architecture • Warehouse MHE Asset List • Warehouse WMS Asset List • Any 3PL Contracts • Inbound Warehouse Transaction File(s) • Outbound Warehouse Transaction File(s) • Product Master File

• Line ID • SKU ID • SKU Name

• Unit Retail • Unit Cube • Unit Dimensions

• Quantity • Ship To ID • Ship To Name • Ship To City • Ship To Country

• Units per Case • Cases per Pallet • Peak Inventory Level • Average Inventory Level

RightChain™ Incorporated

Page 49

Staffing, Resources, Fees, Expenses, and Assumptions Staffing The engagement will be directed by Dr. Ed Frazelle, RightChain’s founder and president. He will be assisted by Dr. Andrew Frazelle, RightChain’s Chief Solutions Officer; and by Dr. Travis Smith, RightChain’s Chief Technology Officer. Resumes are attached. Resources The Client Customer will be asked to assign a sponsoring executive, a project director, and a project analyst to the RightChain™ Warehousing initiative. In addition, a project steering committee and executive guidance team are requested. Fees and Expenses Fees and expenses including all deliverables (pages 46-48), work sessions, 12 months access to the RightChain™ Warehousing optimization and planning platform for up to 5 users, 12 months access to the RightChain™ School of Warehousing and Material Handling for up to 5 professionals, travel, and telecommunications will be $x per month for 12 months. Assumptions 1. The success of RightChain™ Warehousing depends to a large degree on the accuracy and completeness of required data. The proposed timeline assumes that a reliable, working optimization data set can be developed within the first 3 weeks of the engagement. The data set will be enhanced continuously during the course of the engagement/implementation. 2. The success and timeline of RightChain™ Warehousing also depends to a large degree on the availability and participation of the project and guidance teams. The timeline assumes reasonable and active participation from related teams and individuals. The suggested meeting participation of the team during the first three months of the initiative is as follows. Executive Advisory Team (quarterly, 90 minutes), Project Advisory Team (monthly, 90 minutes), Project Design Team (weekly, 90 minutes).

RightChain™ | Supply Chains. Solved.

Page 50

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Warehousing Team Bios

Dr. Ed Frazelle President and CEO

Dr. Travis Smith is a PhD in aerospace engineering from Georgia Tech. His specialty is the development and application of artificial intelligence and advanced algorithms to complex supply chain problems in design and operations.

Dr. Travis Smith Chief Technology Officer

Dr. Andrew Frazelle is a PhD in decision sciences and game theory from Duke University. He is an award-winning operations researcher and specializes in supply chain operations research and analytics.

Dr. Andrew Frazelle Chief Solutions Officer

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