Agenda

The North West Company

Canadian Network

Sealift Operation

Winter Road Operation

Improvements to our Network

Our Canadian Operations

13 Stores

7 Stores

31 Stores – West of Manitoba/Ontario Border

122 Stores

The North West Company Canadian Network

One of the most complex networks in the world!

The distribution of goods to NWC’s communities is complex, the environment is

challenging with a supply chain that lacks sophistication.

Multi-modal

Truck

Train

Plane

Ship

Cube Van

No Visibility to

3rd Party Orders

Merge-in-Transit

NWC Warehouse Inventoried Goods

Crescent Multi Foods (Produce and Fresh Meat)

Westco (Fresh and Frozen Inventory)

DSD Cross Dock Merging at NWC Warehouse

DSD Cross Dock is Direct to Store Delivery (e.g.: Milk, Bread and Furniture)

More Direct to Store Goods

(e.g.: pop, chips)

Air Freight

Perishables

Roll On/Roll Off

Rail Freight

Dry Grocery,

Frozen Food,

General

Merchandise

Long Life

Product,

General

Merchandise,

Transportation

Building

Materials

Regular Transportation

Road

Truckload (TL) and Less Than Truckload (LTL)

Rail Roll On/ Roll Off, Box Car and Intermodal

Air Cargo

Passenger/Cargo Service (LTL) and Freighter (TL)

Last Mile

Cube Van or Pickup

Seasonal Transportation Used Helicopter

Freeze up and Break up

Sea Lift

Barge

Winter Road

WEATHER!!! Fog

Freezing Rain

Blizzards

Extreme Cold

Sealift Operations

Sails from Valleyfield, Quebec

Operates from May to September

3 Sailings (3 to 4 ships)

Service 41 stores

13.9M lbs. Delivered during 2013 Season

692 - 20’ Containers

Transportation Hub 1. Valleyfield

Stores Serviced 2. Akulivik

3. Arctic Bay

4. Baker Lake

5. Qikiqtarjuaq

6. Cambridge Bay

7. Cape Dorset

8. Chesterfield Inlet

9. Clyde River

10. Kugluktuk

11. Coral Harbour

12. Arviat

13. Gjoa Haven

14. Hall Beach

15. Igloolik

16. Inukjuak

17. Iqaluit

18. Kangiqsujuaq

19. Kangiqsualujjuaq

20. Kangirsuk

21. Kuujjuaq

22. Kuujjuarapik

23. Kimmirut

24. Pangnirtung

25. Pond Inlet

26. Puvirnituq

27. Rankin Inlet

28. Repulse Bay

29. Salluit

30. Sanikiluaq

31. Taloyoak

32. Umiujaq

Sealift Operations

M/V Umiavut

Capacity of: 16,500 m3 - 9,587 metric Tonnes

– which means Our Boat

Winter Road Operations

Operates from December to March

Additional 65,000 square foot warehouse in Winnipeg

Service 34 stores

9.5M lbs. Delivered during the 2014 Season

382 Loads 53 foot truckload

Trailer Arriving into Moosonee, Ontario

Freeze Up and Break Up Access from Moosonee, Ontario to Moose Factory, Ontario

No all weather access No local airport During Freeze Up and Break Up We deliver freight

Via Helicopter

Air Shuttle

Improvements to our Network

Transportation Management System

Project started in 2011

Visibility

Proof of Delivery

Plan our loads throughout our network

Provide real time information

Stores

Carriers

Current Systems Modifications

Over 30 unique interfaces

4 Different Warehouse Management Systems

3 Different Integration Systems

2 Inventory Management Systems

Set up of:

PIM (Product Item Master)

Commodity codes

Outbound Starting Points

Integration Architecture is part of the Solution Architecture

Track and Trace

Custom Application

Interfaces into OTM and WMS

Enables Labeling throughout Network

Purchase Order, Pallet and Case Level

Pallet, Case tracking

Clarity around last touch point for claims

Enabler for Perpetual Inventory

Receiving, Labeling and Loading

OTM – Functions We’re Using

Planning

Bulk Plan

Order Release

Order Movement

Equipment Selection

Tender

Rating

Match and Pay

NWC OTM

Outbound Itineraries - 279

Weekly Planned Shipments – 450 to 500

Planned shipments can contain over 500 orders and over 2000 lines

Over 95% at the Order Movement level

Enables our Multi-leg planning

Planning, Picking and Packing Central and Regional Planners

Customer Order interfaced at an Order Release level

Create Shipment in advance

Sent to Warehouse for picking

WMS completes pick and pack – order lines to ship units

Repacks, Consolidation, Re-pillarization

Finalized Shipments

Loading is completed

Scan to Plan

Systems Communicates back to OTM the confirmed picked and loaded quantities and handling units

We started with update Shipment (Very Slow)

Moved to Topic (7 – 10 Minutes)

Ship Confirm must occur before the next leg shipment can be planned

Single Store – Orders Included

1a GM Orders are sent to GM WMS for Picking

2 Central transportation planner builds shipments in TMS for all items

3 Planned Shipments sent to warehouse for Grocery picking and load building activities for all items

4 Shipment confirmation is sent to TMS enabling traceability throughout shipment execution

5 Receiving locations confirms receipt of all items as Proof of Delivery (POD)

Steps 4 and 5 are repeated for each leg of

the shipment

1c Manifest closure in GM WMS is sent to TMS

1b

Retek GM WMS

TMS

WMS

Hubs/Store

TMS

TMS has become the Foundation for Logistics Operations at the North West Company

Grocery, DSD Crossdock PO’s and Warehouse 12 Orders are sent to TMS

1b

NWC Warehouse

TMS

Hub

2 TMS is updated by WMS with Ship Unit level Confirmation of Shipment

4

3b DSD Crossdock sent directly to Hub. Call PO and Create Ship Unit Labels to Receive to Hub Systems, label each handling unit and confirm receipt to TMS

WMS Hub Systems

5 Scan Ship Unit Labels to Ship from Hub – Scan to Load Design

TMS is updated by Hub systems with Ship Unit level Proof of Delivery - Live through Regional Planner Profile

6

TMS is updated by NWC Warehouse to Store Receiving System with Ship Unit level Proof of Delivery

TMS is updated by Hub systems with Ship Unit level Confirmation of Shipment Live through Regional Planner Profile

7 Product delivered to Store. Scan Ship Unit labels to Confirmation of Receipt

1a DSD Crossdock sent directly to Warehouse. Scan Ship Unit Labels to Receive to RPWMS

Scan Ship Unit Labels to load trailer and Ship to Hub For GM, Grocery and Crossdock

Warehouse to Store Receiving System

Store

As products move through the NWC network, each partner plays a key role

Vendor

8

Warehouse Product delivered to Hub. Scan Ship Unit Labels to Receive to Hub Systems

3a

Leave Behind

Plan to Load, Scan to Plan

Contracted Priorities

Customer Requirements

Physical Constraints

Available for the Next Plan

Automatically assigned new shipment date

Full detail retained

Pallet, Case, Order, SKU and Quantity

Additional Items

Proof of Delivery (POD)

Tolerance based on know ship units

Email Delay Notifications

Added a tolerance to the email

Search Screens for the Store

Wave Rollout

Wave # of Stores / # of

New Carriers

Pilot Completed

December 2013

NCR Stores: 4 Carriers: 2

Wave 3 Completed April 2014

NCR Stores: 28 GT Stores: 13 Carriers: 5

Wave 2 Completed March 2014

NCR Stores: 49 GT Stores: 16 Carriers: 7

Wave 4 Fall 2014

NCR Stores: 35 Carriers: 4

Wave 5 Fall 2014

NCR Stores: 6 Carriers: 7

Wave 1 Completed January 2014

NCR Stores: 25 GT Stores: 5 Carriers: 5

Questions…

Network: Calm Air

Transportation Hubs 1. Thompson

2. Churchill

Stores Serviced 3. Baker Lake

4. Brochet

5. Chesterfield Inlet

6. Coral Harbour

7. Arviat

8. God's River

9. Island Lake

10. Lac Brochet

11. Oxford House

12. Red Sucker Lake

13. Repulse Bay

14. St Theresa Point

15. Shamattawa

16. Tadoule Lake

17. Wasagamack

18. God’s Narrows

19. Rankin Inlet

Regional Air Hubs

Network: Gardewine

Transportation Hubs 1. Winnipeg

Air Beyond Hubs 2. Thompson

3. Churchill

4. Red Lake

5. Pickle Lake

6. Cochrane

Stores Serviced by Road 3. Churchill

5. Pickle lake

7. Cross Lake

8. Cumberland House

9. Lynn Lake

10. Moose Lake

11. Nakina

12. Nelson House

13. Norway House

14. Wawa

15. Pelican Narrows

16. Pukatawagan

17. Sapotaweyak

18. Sioux Lookout

19. South Indian Lake

20. Split Lake

21. Radisson

Central Road Network

Network: Wasaya Air

Transportation Hubs 1. Pickle Lake

2. Red Lake

Stores Serviced 3. Bearskin Lake

4. Cat Lake

5. Deer Lake

6. Kasabonika Lake

7. Keewaywin

8. Lansdowne House

9. Peawanuck

10. Pikangikum

11. Poplar Hill

12. Sachigo Lake

13. Sandy Lake

14. Fort Severn

15. Webequie

16. Wunnumin Lake

17. Weagamow Lake

Northwestern Ontario –Air Hubs

Network: Air Creebec

Transportation Hubs 1. Cochrane

2. Moosonee

Stores Serviced by Road 3. Albany

4. Attawapiskat

5. Kashechewan

West James Bay – Rail and Air Hubs

Network: Air Inuit

Transportation Hubs 1. La Grande

2. Kuujjuaq

Stores Serviced 2. Kuujjuaq

3. Akulivik

4. Inukjuak

5. Kangiqsujuaq

6. Kangiqsualujjuaq

7. Kangirsuk

8. Kuujjuarapik

9. Puvirnituq

10. Salluit

11. Sanikiluaq

12. Umiujaq

East James Bay – Air Hubs

Network: First Air

Transportation Hubs 1. Winnipeg

2. Val d’Or

3. Ottawa

4. Montreal

5. Yellowknife

Stores Serviced 6. Rankin Inlet

7. Taloyoak

8. Arctic Bay

9. Cambridge Bay

10. Cape Dorset

11. Gjoa Haven

12. Hall Beach

13. Igloolik

14. Inuvik

15. Kangiqsualujjuaq

16. Kimmirut

17. Kugluktuk

18. Kuujjuaq

19. Pangnirtung

20. Pond Inlet

21. Qikiqtarjuaq

22. Ulukhaktok

23. Clyde River

24. Iqaluit

Arctic Air Hubs