Let’s Get Down to BusinessAfter another amazing summer here in Michigan, we’re back at it here at Columbian Logistics Network. Each year, the arrival of fall and back to school season brings a sense of renewal and reinvigoration. We’ve been learning on the conference scene and getting reengaged in the business community. Now it’s time to take that energy and focus it on providing that Legendary Customer Service that’s so vital to our core values. Happy fall, everyone- now let’s get down to business!

Q3 Leadership Notes

Doug JohnsonExecutive Vice President

Q3Newsletter

2019

PG 2 | ProServices PG 4 | FTZ Strategy PG 6-7 | Company News

ProServicesSupply Chain Strategy Consulting

Introducing ProServices, a new service offering from Columbian Logistics Network

DC Optimization | Business Process Outsourcing | Supply Chain Systems

2

Q3| Newsletter

ProServicesSupply Chain Strategy Consulting

Throughout our long history as a third party logistics provider, Columbian has worked with hundreds of different customers and helped address even more unique supply chain challenges. There is one thread that runs through nearly all our customer engagements: supply chain strategy. Some customers believe that owning and operating their own distribution networks is a key differentiator from their competition. Some choose to outsource non-core activities that aren’t central to their mission. Still others are led to the logistics marketplace as result of their financial gearing, access to capital, or appetite for capital expenditure. In each of those scenarios, the final decisions related to execution (buy vs rent, hire vs outsource, etc) are the product of the intersection of supply chain strategy, operations execution, and the business environment. Weighing those factors, firms make decisions that can have major impacts.

With those decisions in mind, Columbian Logistics Network is proud to introduce a new Professional Services offering. ProServices is designed to help companies assess their own capabilities, evaluate the marketplace, and implement solutions that make sense and deliver results. Columbian’s ProServices team is available for consulting engagements to help businesses address supply chain challenges without any obligation to commit to using Columbian’s more traditional logistics services.

ProServices is ready to assist clients in three key areas:• Distribution Network Optimization• Business Process Outsourcing• Supply Chain Systems

Introducing ProServices, a new service offering from Columbian Logitics Network

ProServices is designed to help companies assess their own capabilities, evaluate the marketplace, and implement solutions that make sense and deliver results.

3

Q3| Newsletter

Distribution Network Optimization

In Columbian’s decades of operational experience, we’ve learned a lot about how a distribution network should perform. For shippers without such knowledge, skills, experience, and resources, a trusted advisor can be a key sounding board for making sure a distribution network stays on track. The ProServices group can be that advisor.

• Facility Layout & Design• Developing Standard Work• Documentation Practices• Training Program Development• Transportation Network Analysis• Transportation Mode Analysis• Labor Management• Project Management

Business ProcessOutsourcing Cycle

RFP Prep & Provider Sourcing

Vendor selection contracting

Implementation

Provider evaluation

what to outsource

Supply Chain Systems

The final key area for ProServices is in supply chain systems. Far too many com-panies, when faced with an underlying complexity in their business, take the im-mediate step of designing workarounds and adding labor. Often, investing in the right piece of supply chain software can be a far more effective use of time and resources than just throwing labor at the problem. Specializing in Warehouse Management Systems (WMS), Transportation Management Systems (TMS), and Yard Management Systems (YMS), ProServices has the business analysis strate-gies and the project management tools to help an organization make the right investment into technology.

• Identify the business need• Identify the marketplace of potential providers• Request for Information (RFI) or Proposal (RFP)• Demos and provider evaluation• Bid development and vendor selection• Custom code or enhancement evaluation• Implementation • Project management• Provider audit and evaluation

We Are Here To HelpWhether your company is struggling with a present day challenge, or evaluating strategic direction for the future, Columbian’s ProServices group stands ready to ensure that you don’t have to “go it alone.” If you are facing a challenge, need a second set of eyes/ears, or want to set direction for your organization, don’t hesitate to reach out to us. For more information or to start an engagement, contact Blair Thomas at bthomas@columbian.us or 616-514-5977.

Business Process Outsourcing

Business Process Outsourcing (BPO) is the common strategy of finding capable providers to perform repeated business tasks. Reasons to outsource may include labor considerations, cash flow optimization, strategic direction, and many more. At Columbian, we’ve built a business in providing these outsourced services. Today, we’re offering to help companies with the exercise of making that outsourcing decision. In our BPO Cycle approach, we work with clients in a five-point cycle, including

• Deciding what to outsource• RFP preparation and finding capable providers• Selecting a vendor and contracting• Implementation• Provider evaluation

These steps in the BPO Cycle can be taken sequentially in a large-scale outsourcing initiative, of course. However, many of them can be taken uniquely on an ad hoc basis as a touch point in making sure your distribution network is performing as it should. With our decades of experience being on the “other side of the table” in outsourcing decisions, we have a deep knowledge of what works in an outsourcing relationship, and a keen eye for identifying the right fit, both economic and cultural.

4

Q3| Newsletter

Can a Foreign Trade Zone Protect Against Tumulutious Tariffs?

Keeping up with today’s tariff schedules can be a dizzying task. The seemingly constant raising and lowering of tariff rates and the expanding and contracting of the goods being tariffed and countries on which they are imposed are driving supply chain managers to think differently about sourcing strategies both domestically and abroad. While it hasn’t garnered as much press in the last few years as it did in the immediate post-9/11 world, the Foreign Trade Zone (FTZ) can be a very effective strategy for providing stability in today’s economy.

As you may be aware, Columbian Logistics Network is the only third party logistics firm in West Michigan (Kent, Ottawa, and Muskegon counties) that offers FTZ services. Leveraging the FTZ at Columbian can provide a tremen-dous cost savings over time, but more importantly, can provide a safe harbor in a tumultuous sea of tariff and duty change.

Using FTZ Strategy to Mitigate Tariff Impact

7 FTZ Zones Operating In The State of Michigan 1935 The Year Congress Established

The Foreign-Trade Zones Act$798 BILLION in shipments via FTZ, 2014

5

Q3| Newsletter

1. Defer, reduce, or eliminate certain dutiesIf your goods are coming into the US stream of commerce, you don’t payduties until they areconverted to your use. For importers of high value goods, this delay can provide significant cashflow benefits.

2.Provide relief from inverted tariffsIf tariffs are levied on both the raw materials you import and the finished goods you produce, anFTZ may allow you to pay the lower of the two.

3. Exempt you from duties on re-exportsIf your goods are going to be sent further into Canada or Mexico, you may be able to avoidpaying any duty at all, since the goods never formally enter the US stream of commerce.

4. Eliminate duty on waste, scrap, or yield lossIf your production process results in less than 100% consumption of the imported material, youpay duty only on what you use.5.Provide weekly entry savings- instead of filing an entry forevery shipment that arrives, you may file a consolidated entry each week. This delay saves onfiling fees, along with customs brokerage fees.

5. Provide improved compliance and inventory trackingInstead of the port or another customs control point being responsible for identifyingoods, the FTZoperator can do that once the goods are in hand.

6. Allow for indefinite storageThere is no time limit by which imported goods must be converted into the US stream ofcommerce. You don’t pay until you use the goods

7. Waive duties on zone-to-zone transfersThis transfer protocol can allow for continued delay of duty payment all the way through yourmanufacturing network, even if there are sites throughout the US.

The beauty of the FTZ program is that it is unchanged regardless of how volatile the tariff programs in the US become. They offer “safe harbor” from changes that could cost your business significant amounts of money. If these benefits make sense to your business, please reach out to us at info@columbian.us to learn more.

What An FTZ Can Do For Your Organization

Q3| Newsletter

Lisa Rodriguez, Administrative Support at the Grand Rapids DC, has won the most recent internal award for her dedication to meeting customer needs in a constantly changing public warehouse environment. The GRDC is often in a state of flux, and Lisa has become known for always keeping her eye on making sure her facility delivers the Legendary Customer Service for which the award is named. Her nomination stated that she “always works independently and in a team to make sure [everyone] stays on track.” Great job Lisa!

Will Slupe, who plays a Dual Role in the Kentwood Campus, is a man of many talents. Splitting his time between the warehouse floor and the administrative office, Will can drive results nearly single-handedly for our customers. His nomination came from a grain milling company in the area who said “especially, I would like to thank Will Slupe, the customer service he provided was top notch.” The nomination goes on to cite specific examples of Will using his crossover skills to make the customer’s experience a positive one. Many thanks to Will for demonstrating our organization’s Agility in such a clear way!

Q3 Legendary Customer Service Winners

Scouts Popcorn Support

From Late August to early Novermber, Columbian Logistics supports the Lower Peninsula Cub and Boy Scout popcorn sales for the Michigan Crossroads Council. Columbian will be the cross dock point for all council shipments into the state as well as the main distribution point for the area units.

Lisa Rodriguez William Slupe

Volunteering At Kids Food Basket

Columbian Logisticsemployees volunteered their time to pack nutritious sack lunches for local kids in need.

7

Q3| Newsletter

Zethcon User ConferenceDale Bray, Kelly Cole, Zach Hendrickson, and Jim Gadziemski attended the Zethcon Synapse User Conference in Downers Grove, IL Sept 18th and 19th. The days were setup with hourly breakout sessions to learn more about all the functionality within Synapse and how to leverage it.

Some key takeaways from the conference included:

•Customer and item setup configurations to speed up receiving with standard quantities•Development on known needs of the business like 947’s and 20 digit License Plate fields•Additional billing options to do as an RF prompt•How to leverage Web Synapse with customers•Opportunities to network with peers on how to handle unique requirements

Congrats!2019 Cornhole Tournament Winners

Chad Curtis and Doug Skutt

Dale Bray (far left) & Kelly Cole (far right) won the Zethcon cornhole tournament

Columbian Blood Drive

Columbian hosted a blood drive in August. Employees helped exceed their donation goal with 19 successful donations, and three employees reaching their 1st Gallon Donation Milestones!