Slide 1 2 Table of Contents Description

Work History

Military – Aviation maintenance and supply Commercial - Manufacturing/Production and Distribution 3 -4

Competencies and Expertise

Value Added Services (VAS) 5 6 Innovation Multi-Project Portfolio Management (RPM) / Critical Path Management (PERT)

Expertise and Philosophies Supply

-

“right material, right price”

7 8 Sourcing Supply Base Management (SQM, SRM) 9 10 Cash Management Total Cost of Ownership (TCO)

Demand

– 11 12 13

“right quantity, right time”

Synchronize Demand and Supply (S,I&OP) Inventory Management and Control Product Lifecycle Management 14 15 16

Logistics

–

“right place, right quality”

Worldwide Networks Transportation, Traffic and Trade Fulfillment 17 18 19 20 21

Continual Improvement Process (CIP) Matrix Management Financial Management Management Information Systems (MIS) Summary

Aviation Aerospace Engineer, Saint Louis University Engineering Technologies, Georgia Southern University United States Army Commissioned Officer Aviation Branch Logistician Certification Contracting Officers Representative Airframe and Powerplant (A&P) license Commercial Airplane and Helicopter Pilots License 1

Manufacturing and Distribution Silicon wafer processing and packaging Assembly

Hearing Aid

micro-electromechanicals Component (OEM) Surface Mount Technologies Cell Phone microphones Modems , Hubs , Routers Medical Imaging Displays Internet Service Providers

representative work

Consumer (CPG) Enterprise Commercial / Industrial 2

Not to scale

Value Added Services (VAS)

Software download and programming Assembly and Configure To Order Integration Wiring / Cabling

FDA CFR 820 Med class II

representative work

Network /Telco 3

Value Added Services (VAS)

Reverse Logistics Troubleshooting and Repair Service/Warranty inventory planning and management Project and Program management Purchasing and Purchase Order management Inventory consolidation and staging Logistics –Transportation and Customs clearance

4

Innovation

Postponement

1.) Disassociate hardware from software 2.) Assemblies -PROM/Flash/connectors, etc.

3.) Regionalization –power, manuals, etc.

Configure To Order (CTO)

Factory Management System (FMS) 1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 – 10 – 11 – 13 – 14

Completion Centers

EMEA Asia Americas

FMS Centralized QA

5

Multi-Project Portfolio Management (RPM) Critical Path Management (PERT) 6

Sourcing Supplier Qualification        Technically Capable Affordable (see slide 10 Stable • • • Financials

eye chart

Employee turn over )) –Management and Direct Labor Politics –Country, State, Region (State, Province, City)  Sophistication • Quality systems • • • Management Information Systems Equipment Facility Integrity Transparency Ease of doing business Fit and scalability • % loading • % New business of Total • • Facility Staff availability –technical, cost, reliability  Sociably responsible 7

Supplier Base Management Supplier Relationship Management (SRM) • Contract SOW • RFP, RFQ, RFI • Terms & Conditions (T&C’s) • Attainment, change management • T&C compliance • Quality Systems • Reverse Logistics • Trade Compliance • Roadmaps • Incremental expenses • Traceability Supplier Quality Management (SQM) • Technical Qualification • Audit • Standards • Corrective Action Request (CAR) • BOM management • Quality Systems • Returned Material Authorization (RMA) • Regulatory Compliance ( CE, RoHS, UL) • Roadmaps • Engineering Change • Traceability Supplier Report Card 8

Cash Management

“Cost vs. Ownership vs. Supplier Relationships”

3PL Tax FTZ / FTA T&C’s F/X Distributors Currency Consign 9

Total Cost of Ownership (TCO) • PO versus Supplier Agreement • Price • Discounts • Net Payment terms • Credit terms • Warrantee / Guarantee • Quality Assurance • Return Material Authorization (RMA) terms • Repair, replace • Stock rotation, exchange, credit • INCO Terms • Freight Terms • Forecast terms • Back order terms • Quantity (MEQ, MOQ) • Service level (Fill rate/OTD) commitment • Order Fulfillment (O/F) scheduling/release • Sample policy • Proto., TMS., 1 st WMS. run terms • Design-in suppliers (1 • Cancelation terms st and 3 • PO acknowledgement terms rd party) • Original Design Manufacturers (ODM/DOF) • Advanced Shipping Notification (ASN) • Supplier warehousing • Supplier’s supplier management • Logistics (merge, drop ship, in transit trade) • Packaging and palletizing • Consolidation (ship with, pack with) • Value Add Services (distributors, 3PL’s) • Kitting (supplier, distributor, 3PL) • Stock keeping unit locations (SKUL) • Consigning and Consignment • Vendor/buyer managed inventories • Insurance terms • Part Change Notification (PCN) policies • Engineering Change Order (ECO) terms • Corrective Action Response (CAR) terms • Failure Mode and Effect (FMEA) terms • Approved Vendor Lists (AVL) • TMDE terms • Fixture, form, template, & screens costs • Harmonized Tariff Classification (HTC) • Economic Zones (FTZ, LMW, Free Port) • Foreign Trade Agreement (FTA) • Foreign Currency Exchange (F/X) • Controlled currency management • Management Information Systems (MIS) 10

Planning/Scheduling Sales, Inventory & Operations Planning (S,I & OP) Supply Demand

forecast

120 90 60 Availability 30 Horizon

(Days)

30 60 Inventory 90 120 Cash ($) 11

Inventory Management and Control Inventory Balanced Scorecard Gross Inventory ($) Service Levels COGS / PPV Risk / Strategy Gross Inventory ($) Invested Capital and Lifecycle Continuum Obsolete Slow “SLOB” Reserves Within Financial plan 12

Product Lifecycle Management Affordability for Profitability the over “Arching” consideration 1. Design for manufacturability 2. Accessibility of material Concept –> engineering drawings/bill of materials (BOM), software specifications -> prototype -> source -> engineering build -> 1 st mfg build Ramp to production -> service & support -> re-engineering for savings 2 nd source for savings and scalability -> design out -> last time buy last production run -> end of life buy for service support -> End Of Life Saint Louis, Missouri Gateway Arch 13

(2) Worldwide Networks (JV) Distribution Centers (5) Warehouses (22) Stock Keeping Locations (>50) 14

Pack, break, ‘pack with’, ‘ship with’, ‘invoice as’ Pallet, consolidate, stack, wrap, cross-dock, break, Container (FCL, LCL) Sea Rail Transportation, Traffic and Trade (Inbound, Outbound, Reverse) Truck (TL, LTL) Air (freight, parcel) Intermodal Dock to Dock Dock to Stores End User drop ship Vendor drop ship Inter-company drop ship Virtual consolidation Merge in transit 3 and 4 party in transit sale Wholly off shore trade Importer of Record Representative Import/Export Agent Customer consignment Vendor consignment Free Trade Zone Special Processing Zone Special Export Zone Free Port Bonded warehouse Bonded Carrier Limited Manufacturing Warehouse 15

Fulfillment Manufacturing Warehouse / Distribution Center Channels and VAR’s 3PL (VMI/Consignment) Manufacturers / Retailers e-Commerce/end user/engineer 16

6Sigma – Statistical Process Controls (SPC)

Gap Goal / Objective Key Performance Indicator (KPI) Pareto Analysis A B C D Corrective Action or Process Improvement

LEAN systems and process re-engineering

17

WMS Business Process Owners QA PLN TMS CS PO LOG BOM WMS QA PLN TMS CS PO LOG BOM General Management WMS QA PLN TMS CS PO LOG BOM General Management WMS QA PLN TMS CS PO LOG BOM Subject Matter Experts General Management 18

Operating Plan % Sales FY Budget SG&A 3% Sales $1M Department A 40% - 1.2% Sales $400K Department B 20% - 0.6% Sales $200K Department C 20% - 0.6% Sales $200K Department D 10% - 1.0% Sales $100K Hold % Sales during shortfalls, justify budget increase during revenue gain Transportation spend consistent % Sales MRO consistent % Sales Facility fixed 19

Enterprise Resource Planning (ERP) Global Customs Compliance Shipping Barcode, Shop Floor Management (SFM) 20

Twenty continual years study, training and practice in Supply Chain Management A career solely dedicated to Supply Chain Management spanning aviation maintenance and electrical, electronic and micro-electromechanical manufacturing and distribution including FDA CFR 820 Class II medical devices Expert in Global, multi-site operations and recognized authority in Multinational Corporations (MNC) international trade for both procurement and fulfillment Global competence acquired though living and working in Latin America, Europe, Asia and the US developing supply and customer bases Repeated and documented successes developing maximum efficiencies, minimum operating expenses, lowest total cost of ownership (TCO) and maximum profitability A certain, immediate contributor and trustable advisor for your business’ Supply Chain Management needs.

Brad Knechtel

SUPPLY CHAIN MANAGEMENT

Email: Brad_Knechtel@yahoo.com

| Phone +1 (815) 578-9352 | Fax: +1 (509) 692-4917 | Address: 5187 Grape Leaf, Las Vegas, NV 89141 21