OUR GOAL to be a final mile parcel delivery company

is within reach as we come to the final weeks before starting first deliveries. Well over a year ago we started down this path and after a few twists and turns, we set our transform ation course. Since then there has been an enormous amount of learning, exploration, investment and sheer hard work to establish the components required to compete as a final mile parcel delivery provider.

Throughout this journey we have exercised our extraordinary capacity for collaboration, demonstrat­ed flexibility in the face of unforeseen events, and proven the determination required to creatively overcome obstacles and challenges. All areas of the organization have participated in some way and that engagement will only deepen as parcel delivery operations gets on its feet and gains momentum.

This is our future and over the last several weeks

we have conducted a series of unit and end­to­end tests to learn, adjust and ultimately prove we are ready. Ready to service our first clients, ready to grow this business and ready to take our place as a final mile parcel delivery provider.

In the following pages of this newsletter, you will read how we have bolstered our team and made some structural changes to support our future. We have also built two sortation hubs, refreshed the PCF brand, and developed a very encouraging pipeline of potential clients. With people, process and technology just about aligned, we are in the final sprint and our first parcel clients are within our grasp.

At the same time, plans to optimize operations and service in Manhattan through FMDX, LLC, our joint operating venture with Mitchell’s are in motion. As I communicat­ed in January, both companies—PCF and Mitchell’s—have greater

opportunities for efficiency and service stability in Manhattan under FMDX, LLC than either could achieve separately, believ­ing “we are better togeth­er.” Given the density and importance of the territory,

this venture will be key to our parcel growth strategy in Manhattan.

Though few and far between, I have likened such major transforma­tions for PCF as trying to change the tires on a moving bus. And, true to form, we are doing it. We are so very close, and

we’ve got to keep our focus and momentum. The day client packages first roll down those conveyors and our carrier network completes those first deliveries will be a most important and

memorable day in PCF’s history. A day we can all truly be proud of and a day when our work and focus will shift to ramping up the operation with growth, building new client relationships and securing our future. We have come so far, now, together, let’s get it done!

n Message from Jerryn The Final Mile Distribution

Organization n PCF Sortation Hubs

n Customer Experiencen Sales & Marketingn Financen Information Technology

n FMDX Joint Venture— PCF & Mitchell’s are

“Better Together” in Manhattan, NY

IN THIS ISSUE

News ViewsMARCH 2020

By Jerry Giordana, President & Chief Executive Officer

Final Sprint

‘‘’’

Ready to serve our first clients, ready to grow this business, ready to take our place as a final mile parcel delivery provider.

S P E C I A L E D I T I O N

n RISTO SOPOV HAS BEEN NAMED EXECUTIVE DIRECTOR—PARCEL OPERATIONSIn this new role, Risto will provide oversight to our brand­new sortation hub operations, located in Perth Amboy, NJ and Northborough, MA. The sortation hub is the first injection point for parcel clients and as this business grows and evolves, so will the complexity of these operations.

Working with the onsite hub managers, Risto and his team will develop key performance measurements and reporting for the sortation operation as well as developing standard operating procedures that, when appropriate, are in harmony with client nuances and requirements, distribution operations and customer experience parameters.

Risto will also be the primary contact working with our Man­aged Transportation Solutions (MTS). MTS handles the schedul­ing and coordination of shipments inbound to the hubs as well as trucking gaylords to individual PCF plants post­sortation.

In addition, the team will also collaborate with Human Resources and Sales, to create staffing models and hub operat­ing schedules that are timed and aligned with evolving business needs and volume being injected to each hub.

n MICHAEL BARLOW REMAINS EXECUTIVE DIRECTOR—DISTRI-BUTION SERVICESOne of the many things we’ve learned over the last year is parcel operations has many tentacles, components and details that need attention— at “go live” and as the business grows and evolves. Incorporating parcels into the existing operation is no easy task. By placing leadership of the sortation hubs and transportation under Risto, Mike can dedicate his attention more fully to distribution services—the true final mile of both newspapers and parcels.

As you know, Distribution Services covers a broad footprint up the northeast corridor. It is a broad network with 40 plants, some run by Distributors and most run by PCF employees. Mike and his team of Directors and their Regional Managers are focused on working with Distributors and preparing our own operations for this new type of delivery, while maintaining the day to day. Within that is supporting the DSP community with the information, guidelines and best practices they need to adapt and embrace the tools and requirements for successful parcel delivery. They are literally the last step in the final mile delivery process and their performance is essential to our success.

n PETER EGLITIS HAS BEEN NAMED DIRECTOR—FINAL MILE RELATIONS AND DEVELOPMENTWe will continue to capitalize on Peter’s strengths, skills and abilities to effectively connect and communicate across the Distribution Services employee, Distributor and DSP populations. This includes developing and facilitating the implementation and training plans for tools, applications, evolving expectations and best practices within the final mile hub and distribution operations.

This definition is not new as it reflects how Peter’s role has evolved throughout the transformation. He has led the charge both in designing and executing a multi­pronged approach to share, involve and engage leaders across Distribution Services in preparations for final mile parcel delivery. He has prepared and tirelessly promoted a readiness agenda for operational success at parcel go live.

Once we are live, we will learn and adjust, systems and process­es will evolve, enhancements and improvements will need to be implemented and new clients will bring nuances and new requirements to be adopted. Throughout we will look to Peter to facilitate, coordinate and align the planning, communication and deployment of changes and/or evolving requirements of both the hub and distribution operations.

n MATT GRIFFIN REMAINS DIRECTOR—FINAL MILE PLANNING & OPTIMIZATIONOnly a couple of months ago I announced Matt had assumed the new position of Director—Final Mile Planning & Optimiza­tion. In this role, Matt and his team are responsible for maintaining our footprint map as well as planning and ensuring efficient route structures and optimization as we grow with final mile parcel delivery.

To remain efficient, we must maintain a clear understanding of available capacity on existing routes—what is the number of parcels an existing newspaper route can reasonably absorb. As we move forward, newspaper volume will continue to erode and we expect parcel volumes and new parcel clients to steadily increase. Throughout we will depend on this team to make whatever changes are needed to maximize capacity, ensure efficiency and support performance at each plant. Nothing is stagnant, which makes the work of this team so critical.

I believe anchoring these components of operations with this leadership team puts us in a very strong position to ensure final mile parcel delivery success, not just at the outset, but for the foreseeable future as we grow and evolve.

The Final Mile Distribution OrganizationBy Kevin Daly, EVP & Chief Operating Officer

Building a fully functional final mile parcel delivery operation is one step in the equation for success, how we operate it is another. As we move from transformation to growth, we must think well beyond simply “going live” with our first parcel clients. We have aggressive growth goals and a sales team with a robust pipeline of potential clients. Our ability to quickly and seamlessly launch new clients, absorb increased volume into the operation, and scale our resources is going to be critical. To that end, we have reset some leadership roles in operations to ensure we are in the best position for ongoing success.

n SCOTT CAFARELLISortation Hub Manager—NorthboroughScott re­joined PCF, having previ­ously served as a PDS Managerduring our involvement with FedExGround operations. He mostrecently was a Regional Managerwith Beck’s Transportation in thecentral Massachusetts area.

n ANTHONY BRODIESortation Hub Manager—Perth AmboyAnthony joins PCF after serving asOperations Manager for XPO Logistics, a global provider of transportationand logistics services. During hiscareer he has held varied positionswith FedEx in the Massachusetts,New York and New Jersey areas.

PCF Sortation Hubs THE TRAVEL PATH OF A PACKAGE within our final mile operations begins when shipments are received at either of our new

sortation hubs, strategically located in Perth Amboy, NJ and Northborough, MA.All our active plant numbers are serviced by one of these two facilities. Arriving shipments are unloaded to the conveyer belts,

scanned and sorted for trucking to each respective plant. The location, nightly sortation and trucking processes are designed to enable next day delivery by Distribution Services. In most cases, packages arriving at a hub today, will arrive in a plant for delivery during normal morning operations. Currently, the hubs are designed to handle a capacity of 18k packages each, so there is plenty of room for growth.

Preparing the hubs for first deliveries are our Sortation Hub Managers, who are responsible for the overall management of the sortation facilities, its equipment and ultimately a team of package handlers.

Customer ExperienceBy Michael Giordana, EVP & Chief Transformation Officer

OUR SALES TEAM, Vincent D’Amato, Frank Parisi, and Solomon Zakinov have spent the last months methodically targeting leads, building relationships and strategically

cultivating opportunities to build and maintain a robust pipeline of potential new business. A couple of those opportunities have now entered the agreement stage and in the coming weeks, we expect packages will start flowing into both sortation hubs and out to distribution services for delivery.

The Sales team’s parcel industry knowledge and experience has been invaluable in shaping and executing our sales strategy, bringing us to this point. To support them, we have developed several marketing tools that include our corporate website, a print and electronic sales brochure, promotional materials and carefully crafted messaging for our presence at industry events. These are in addition to our ongoing advertising campaign to generate awareness of our presence in this industry.

CLICK IMAGE ON LEFT TO VIEW OUR ELECTRONIC PARCEL SALES BROCHURE.

AS WE PREPARE for our first parceldeliveries, we must also be

prepared to handle inquiries that come from shippers and their custom­ers about delivery status. Undoubtably there will be occasions when things don’t go as planned. A package may be lost, damaged, delayed and we need a clear path to receive, respond and resolve the issue, whatever it may be.

Our ability to react, respond and recover in these instances is paramount to shaping our reputation in the parcel industry and it will take cross­functional collaboration, funneled through customer experience to be successful.

Beyond self­serve package tracking via the PCF website, we are working with Matt Clark, a skilled and experi­enced transportation executive who

brings a depth of parcel and customer support knowledge. Jonathan Gajilan, our Customer Support Manager, and Account Managers, Victor Alemar and Fernando Perez, will continue working with Matt and I through the means and methods required to ensure client satisfaction, issue resolution, retention and growth.

Sales & MarketingBy Michael Giordana, EVP & Chief Transformation Officer

Towson, MD502 Washington Avenue, Suite 500Towson, Maryland 21204

Billerica, MA85 Rangeway RoadBillerica, Massachusetts 01862

www.pcfcorp.com© 2020 Publishers Circulation Fulfillment, Inc

Information TechnologyBy Paul Adams, VP Information Technology

ENGAGEMENT ACROSS the Finance and Admin­istrative team in support of final mile parcel

delivery has been steady throughout the transform­ation. This includes input, design, development and varied activities focused on pricing, insurance, equipment, procurement, safety, Distributor and DSP compensation, invoicing, reporting and analysis.

Recognizing the focus and support required by this line of business, Wes Whalen has been named Manager of Parcel Analytics.

In this position Wes will focus on supporting the Sales, Finance and operational teams with analytics and pricing, while also supporting customers with related inquires and audits. In addition, this position is also responsible for financial system integration to ensure alignment across all systems for accuracy in invoicing, payments and reporting.

Finance By Amy Weinreich, VP Finance & Administration

ΜOVING A PACKAGE end­to­end through

the system—from the shipper to the final destination doorstep— is accomplished through a series of handoffs and travel paths. At each step of the way, specific tasks are completed before the next handoff in the progression. The one common denominator, however, throughout the entire chain is information technology—systems and data—that enables each progressive step and keeps track of each and every package.

Throughout the transformation, virtually

all arms of the extensive Information Technology group have been involved to varying degrees at various stages to enable and support final mile parcel delivery. From the highest level, this includes selecting and integrating technology, designing and building applications for scan­ning, tracking, and ensuring data flow is timely and accurate. This enables clients to access our service at the start of the process and ensures Finance has everything they need to invoice clients

and make payments at the end of the process. It also includes being boots on the ground during end­to­end testing and DSP pre­paredness efforts.

As we approach our first clients, we continue to refine, test, tweak and polish what we have built. Our operations and data teams will add parcel clients to their monitor­ing and support process­es. And, as the parcel business grows, we will navigate the integration and introduction of multiple new clients, always learning and all ways improving.

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THE MANHATTAN, NY, GEOGRAPHY is perhaps the most vibrant economic

geography in the United States, and both PCF and Mitchell’s have been servicing this market

for over 35 years, primarily for print media clients, while Mitchell’s has also been delivering milk and assorted beverages, along with other consumer staples. The two companies, while continuing to maintain their own respective commercial relationships, have joined forces

effective January 1st of this year to perform the distribution services in Manhattan to improve

operational performance and efficiencies.

There are three collaborative team efforts underway to accomplish the objectives of FMDX:

OPERATIONAL INTEGRATION A three phased approach beginning

March 30th with expected completion by the end of June/early July.

DATA INTEGRATION Utilizing the Dart platform,

combining the various “street files” to optimize route structures

FINANCIAL/ADMINISTRATIVE INTEGRATION Establishing the accounting,

financial reporting, along with the administrative and legal support

Alan Newman, FMDX COO, and Tom Foard, FMDX CFO, are overseeing

the three team’s efforts.PCF’S TEAM MEMBERS

David Scheef, Vin Morrissey, Alex Soto, Anthony Friel, Juan Urena,

Jim Bakanowsky, Bunny Selfridge, and Jerry Hosza

MITCHELL’S TEAM MEMBERS Alan Rafal, Dennis D’Abbraccio,

Nestor Ouiya, and Michael Koskorelos

There are many others from both organizations supporting the efforts of the

three integration teams and their contributions are certainly appreciated in

helping us getting things on the “done” pile!

While the short­term operational efficiencies are important to accomplish in a

shrinking print media environment, the longer­term opportunity to grow parcel

deliveries in Manhattan will further prove that PCF and Mitchell’s are “better together!”

FMDX Joint Venture—

PCF & Mitchell’s are “Better Together”

in Manhattan, NY By Tom Foard,

EVP & Chief Financial Officer

NEWSLETTER SUBMISSIONWe encourage you to submit articles to PCF News & Views. We greatly depend on your contributions in order to provide interesting and informative articles. If you have any quesitons, please email:

james.cunningham@pcfcorp.com