NYK Logistics Innovate Supply Chains

NYK LOGISTICS INNOVATE AND DELIVER

NYK Group Values

integrity
Be respectful and considerate to our customers and
colleagues. Stay warm, cordial, courteous, and caring.

innovation
Continually think of new ideas for improvement, even when
conditions appear satisfactory. Remain open to betterment.

intensity
Carry through with and accomplish your tasks.
Never give up. Overcome challenges. Remain motivated.


New Horizon 2010
Medium - Term NYK Group management plan
running from fiscal 2008 to fiscal 2010
(April 1, 2008 – March 31, 2011)


Supply Chain Solutions
• Working with all Divisions and Functional Groups
• Integrating multiple NYK Services and Technologies
• Collaborating on Solution Design and Development
• Design and build replicable Logistics Solutions that integrate multiple NYK
services and technologies
– Fill operational and process gap between customer acquisition and order
fulfillment
• Flawless Implementation of customer solutions
– Follow tested integrated implementation methodology to reduce variability
between scope design and solution deployment/operate
• Institutionalize a culture of continuous improvement
– Deploy performance metrics through Balanced Scorecard at the customer
level


NYK Logistics
Total Supply Chain Capability
NLA Visibility System: Inventory Visibility Function
Total Visibility / Total Inventory

End-To-End Inventory

Ocean / Air Transport Deconsolidation
HQ Supplier / Cargo Mgt Distribution Store
Factory NYK / Yusen / TCL / NWL / D.C. By-Pass
Consignee Consignee INSD / 3PL Bulk Ship/ 3PL
GST / ETA/ 3PL Shelf
UWDC / 3PL

 Full Gate In
Actual Sail/
Flight Date Loaded
Item #/Count

BE W 9,010

PFF 3,524
Outbound to D.C.
Outbound
to Store
Booking on Truck Warehouse Gate Out
P.O. Sent to Shipping Cycle Counts
Manufacturer Cargo Received Loaded Order
Create P.O. on Rail Final
Full Gate Out
Cargo Shipped Delivery
Empty
Loaded on Arrival at Cargo from Warehouse
Warehouse Cargo Available
Shipment Order Shipped Vessel/Plane Port Received
in Warehouse Staged Cargo

Event Capture

Ordered At Origin In Transit Inland Delivered

NLA Visibility System: Tracking
 In Transit / Tracking Detail  Container Manifest  In Warehouse Report
 Tracking by Vessel/Voyage, Container, P.O.  Container Inventory by Vessel  Allocation Reporting
 Inquiry By Vendor Invoice, B/L, Item #, Description  Detailed Container Status Events  Service Contract Snapshot

NLA Visibility System: Inventory Visibility Function
 “On Order” Inventory Totals  “On Hand / In Warehouse” Inventory  “Outbound” Inventory
 In Transit Detail  Detail By Item Code, Customer, Region
 Search By Customer P.O.  Damaged / Destroyed / Returned Counts
 Search By Availability  Totals Across Multiple Warehouses  Event Notifications
 “In Transit” Inventory Totals
Inbound to Warehouse
In Transit to Warehouse
On Hand / In Warehouse
Outbound to Customer

Author: T. McKeon v1.2
Last Updated: August 9, 2004


NYK Logistics (Americas) Inc.
Service Offerings

Transportation Services
• Intermodal
• OTR (TL+LTL)
• Project Cargo
• International
• Ocean
• NVOCC / CHB
• Warehouse
• Air Freight
• Preprint / Expedited Services
• Reverse Logistics
• Mexico Logistics


Intermodal Services
Contracts / Equipment:
NYK has rail contracts with all Class I Railroads in North America and access to nearly 100,000 rail
containers.

Service / Coverage:
NYK is above Tier 1 ranking in terms of equipment reservations, rail line haul services, & rail terminal
performance ensuring a consistently higher lever of Intermodal service across all countries in North
America.

Priority:
NYK receives the highest level IMC priority for equipment and service. In addition to standard
intermodal service, NYK offers expedited intermodal service which is comparable to over the road
service at reduced rates.

Green:
NYK is a “Green Company”, has ISO 14001 certification, & has been recognized as a leader in the
transportation industry for our efforts to reduce carbon emissions.


OTR Services
• Robust industry purchasing power & leverage
• Full truck load, partial truck load, & LTL truckload capabilities
• Non-asset based flexibility & benefit with asset-based mentality
• Single point of contact with centralized dispatch
• Regional presence & insight with complete North American coverage
• Thousands of carriers through single source solution
• Minimum $100,000 cargo insurance
• Always market competitive rates


LTL Services
• NYK offers our customers a select group of carriers
• Unparalleled service within the 48 states, Canada, & Mexico
• A complete web-based management program available 24 / 7 / 365
• Dedicated management of our customers shipping needs
• Expedited, time definite guaranteed LTL service
• Local LTL knowledge & professional expertise

By selling LTL, NYK adds value to your company
because we know what makes our product offering attractive
to LTL shippers & consignees


Special Projects Services
Service Offerings & Market Development
• Truck (Open equipment: flats, steps, lowboys, etc.)
• Dry Vans (53’ & 48’ equipment)
• LTL & Intermodal
• Super permit loads (19 axle or goldhofer platform trailers)
• Ocean Containers (move intact or move as breakbulk)
• Barge service (including intracontinental)
• Over-dimensional rail service
• On-site supervision
• Unloading / Uncrating
• Dunnage Removal / Rough Set Installation
• Local distribution
• Crane Service
• Complete cradle-to-grave project management


International Services

• NVOCC (Non-Vessel Operating Common Carrier)
• CHB (Customs House Brokerage)
• Customer, Vendor, & Supplier Assessment
• Purchase Order Management
• Vendor Compliance
• Origin Consolidation
• Import / Export Technology
• Security Education & Training
• Homeland Security Compliance
• Supply Chain Security (C-TPAT)
• Facilities Inspection & Evaluation
• Global Logistics Infrastructure


International Network
Solutions Division
STANDARD CONSOLIDATION SERVICES

• Order Monitoring A
• Late Shipment Status Reporting
• Carton Condition & Marking Inspection A
• Custom Loading A
• Bill of Lading Preparation
A
• Ocean Carrier Booking Delivery
• Commercial Document Collection A
• Negotiable Cargo Receipt A
• Container Manifest Preparation
• A
Transmittal Advice
• Document Distribution
• Sailing Advice

INSD: A full service, neutral consolidator with global coverage NYK LOGISTICS INNOVATE AND DELIVER

International Network
Solutions Division
STANDARD VALUE-ADDED SERVICES

• Bar Code Scanning
• GOH Handling
• Asia Warehousing & Distribution
• Multi-Country Consolidation
• INSD Self Appraisals
• Performance Reports
• Pre-Distribution
• Vendor Education
• Vendor Compliance metrics
• ACE Participants
• C-TPAT & supply chain security


Ocean Transportation Services
• Founded 1885
• Member of the Grand Alliance
• Top 10 World’s Largest Shipping Company – 777 Vessels
• Worldwide Service Network Asia, Europe, Oceania, North & South America
• MLB, All-Water, & Intermodal Options
• Large Container Inventory (40’ HC, 45’, & reefer containers)
• Customer Service through Global Office Network
• E-Commerce Applications
• C-TPAT Certified - ISPS Certification
• ISO14001 Environment Certification
• Company Owned Terminal Operations


NVOCC Services
NYK provides a complete Non-Vessel Operating Common Carrier
(NVOCC) option for global coverage of freight

• Over 19 contracted global carriers
• Overflow provider
• Alternative for customers using NVOCC that require a full logistics package
in addition to value-added services
• Full Container Loads with our global carriers
• Less than Container Loads (LCL) options available;
• Sailing flexibility with expedited and deferred services to support varying
& seasonal inventory demands


CHB Services
• US & Mexican CHB Services
• Freight Forwarding, Warehousing, & Distribution
Services
• US Customs Bonded Warehouse
• Foreign Trade Zone
• Tolling Operations & Contract Services • Centralized Remote Location Filing & Record Keeping
• Compliance Consulting
• Proactive program recommendations
• ISA, Internal Controls & Training Programs

• NYK will assist customers in understanding the C-TPAT program and aid them throughout
the process from MOU to VALIDATION.
• NYK will assist customers in establishing training programs for their employees.
• NYK will assist customers in assessing their security systems by:

– Reviewing procedures and policies and comparing them with industry best practices
– Helping to identify risks for the customer and developing programs to manage that risk
– Developing pilot asset protection programs
– Providing business solutions to security problems
– Developing training solutions to meet government standards


Warehouse Services
• WhereNet Yard Management System • Transloading Cross-Dock Facilities
• Large Capacity Trailer Yard • EDI Integration
• Real-Time WMS • Small Parcel Processing
• Automatic Event Billing & Invoicing • ASN/RF Receiving
• Pick & Pack Operations • Lot / Expiration Control
• Harbor Drayage • Consolidation / Deconsolidation
• Assembly, Kitting & Repacking • Serial Number Capture
• Marking & Ticketing • Replenishment
• Bar Code Scanning • Cycle Counting
• RFID Container Tracking • Specialized Reporting
• 24 Hour Guard Service • Returns Processing
• Electronic Surveillance • Web-Based Inventory Visibility
• ISO 9001-2001 Certified • Palletizing, Labeling, & Packaging Programs
• QMS Employee Quality Program • Compliance Labeling UCC128


Air Freight Services
In the current economic condition with other
• NFO (Next Flight Out) – Same day service, goods delivered global air freight providers reducing overhead,
within the 48 mainland states with 23 hours of initial pick up. make sure your air freight gets there on time with NYK!
Excludes Alaska, Hawaii, & International Cargo.
• Next Day AM – Cargo that is picked up by 15:00 (M-F) & Specialized Services
delivered by 12:00 NOON the next business day in most major • Mission Critical
markets.
• Trade Show Logistics
• Next Day – Cargo that is picked up by 15:00 (M-F) &
delivered by 17:00 the next business day. Alaska & Hawaii • Oversized
points are next day from 11 western states only. International
rates do not apply. • High Value
• 2nd Day AM – Cargo that is picked up by 15:00 (M-F) & • Maintenance & Parts Recovery
delivered by 12:00 on second business day.
• White Glove - Inside Delivery
• 2nd Day – Cargo that is picked up by 15:00 (M-F) & delivered
by 17:00 on second business day. • LTL Recovery
• 3rd Day – Cargo that is picked up by 15:00 (M-F) & delivered • Cargo consolidations to all points
by 17:00 on third business day. in Alaska, Hawaii, and Puerto Rico
• Economy – Expedited ground cargo that is picked up by
15:00 (M-F) & delivered by 17:00 between the third business
and fifth business day (More time definite and higher sense of
urgency than LTL service).
• Charter – Exclusive use of aircraft (Lear jet to Airbus) to
transport cargo 24 / 7.
ISO 9002 Certified


Preprint / Expedited Services
Benefits of NYK Preprint / Expedited Services:

• Eliminates most, if not all, of your company’s • Contracts with more than 5,000 carriers that
warehouse personnel understand the time sensitive market
- Reduces your company’s overhead
• NYK pre-negotiates contracts with our carrier
• Ability to mix jobs on site at warehouses
which optimizes the truckloads partners, securing capacity and unequaled
- Allows NYK to provide a much lower rate service at competitive prices

• NYK handles most (if not all) of the • Access to 100,000 pieces of rolling stock
extensions
- Saves overhead / overtime • Full EDI support with real-time, web-enabled
shipment tracking and reporting
• Greatly reduces liability risk
for late / missed deliveries • Always 24 / 7 availability
- If an error occurs during the
shipping process – the risk is to NYK

• Knowing your inserts will arrive on time
- Peace of mind!


Reverse Logistics Services
LIFE - CYCLE ASSET VISIBILITY

Core Redistribution & Repair Recycle &
Logistics Remarketing & Disposition
Capabilities Management Refurbishment Operations

Transportation Repackaging Inspection End of Life Disposal

Sorting & Segregation Liquidation to Plug & Disposition & Reporting
Secondary Markets Play Testing
Consolidation Asset Recovery

Inventory Management Parts Harvesting

Surplus and return merchandise, usually in LTL lots, move from customer return channel to NLAT Reverse Consolidation Centers

Products from multiple locations are consolidated into full truckloads with similar / same destination

Over 40 state of the art, fully secured, warehouse facilities across the country that include comprehensive information management systems

Over 300 return orders processed each day and an average of 75 consolidated full truck load return moves per day


Mexico Services
Equipment
• 40’, 48’, & 53’ air-ride equipment
• Boxcars
• Specialized Reefers, Flatbeds, & TOFCs
• Drop deck equipment available
• Transborder / NAFTA – all steel-wheel service
• Passport – Steel-wheel / rubber-wheel combination

Facilities
• Branch office in Celaya, MX
• Border facility with a Secure 100 trailer yard in Laredo, TX
• 23,000 ft2 of warehousing available in Tijuana, MX
• 260,000 ft2 of warehousing available in Laredo, TX
• Railroad Spur, Union Pacific served

Security
• Security guard service available
• Specialty Mexican cargo insurance available upon request
• E-track visibility capability
• Trailers include security features including satellite tracking & door sensors
• Full operating authority in all Mexican states


Industry Differentiators
Why Choose NYK?
NYK has a history of providing exceptional services
and has received many honors including:

• “Best of the Best” by Logistics Management Magazine
• “One of the Most Sustainable Corporations in the World” by Global 100
• “One of the World’s Most Ethical Companies” by Ethisphere
• “Circle of Excellence” by Distribution Business Management Association
• “NDTA Quality Award” by the National Defense Transportation Association
• “Carrier of the Year” awards from the Electronics, Auto, & Chemical industry


Connecting All The Links
In The Supply Chain

Ocean OTR Air

Warehousing Intermodal LTL
and A & D

NYK Innovate and
Deliver!

NYK Logistics Innovate Supply Chains

NYK Logistics Innovate Supply Chains

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