Georgia Tech Discussion

Mike AlberV.P. of Operations

School Specialty Overview

School Specialty is an education company that provides innovative products, programs, and services to help PreK-12 educators engage and inspire students of all ages and abilities.

School Specialty goes to market through print, on-line catalogs and an outside sales force across 30 brands.

School Specialty (SCHS) is a publicly traded company with an annual revenue of about $750 million.

Our Network

We operate out of six distribution centers:

• Fresno, CA• Salina, KS• Appleton, WI• Mansfield, OH• Lancaster, PA• Nashua, NH (primarily Science kitting operation)

We also have an Agenda printing operation in Bellingham WA, and a Furniture manufacturing operation in Lancaster PA.

Network Statics – FY 10

Operations (in millions)Shipments - 2.5 Lines - 15.8Cartons- 6.1Weight (lbs)- 109.7

Expense (in millions)Labor- $13.2 Other- $7.3Freight /Outbound $27.2

InventoryStocked SKU’s vary by DC - 8,500 to 41,000 Network Inventory from $85 - $130 million

OtherFacility Sq. Footage – 140,000 to 380,000Total network - 1.7 million Sq. Feet

Operational Flow Discussion

InboundReceiving

• Freight - Truckload and LTL• Parcel

PutawayReplenishment

OutboundOrder Filling

• Vendor Case• Split Case• Non-Conveyable

Shipping• Parcel• Freight

Freight Receiving

Pallet Breakdown

Receiving Worksheet

Pallet / Carton Putaway Label - LPN

Bulk Storage Area

Bulk Storage Area

Bulk Putaway – Less than pallet qty’s

Parcel Receiving Work Station

Parcel Receipts – Staged for Split Case Putaway

Carton Flow pick area

Carton Flow Pick Facing

Carton Flow – “Pick-to-Light” Wedge Scanner

Two Level Bin Operation

Bin Operation – Split Case

Bin Aisle

Bin Pick Facing – High Velocity SKU’s

Bin Filling

Carton Content and Shipping Label Placement

Carton Content and Shipping Label

RF Gun

Packing area

Packing Area and conveyors to Shipping

Packing Slip

Void Fill Process

Carton Sealer

Freight Lanes

Freight Lane

Conveyor feed to UPS truck

Questions prior to Cartonization Discussion?

End of Operations Discussion

Cartonization - Good

Cartonization - Good

Cartonization- SKU dimensional issues

Cartonization Opportunity

Cartonization Opportunity