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OVERVIEW OF SEDLAK MANAGEMENT CONSULTANTS

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I

N N OVAT I VE

D

I ST RI BUT ION

& F

UL FI L L M E N T

S

OLUT I ON S

O

VERVIEW

OF

S

EDLAK

M

ANAGEMENT

C

ONSULTANTS

TM

(2)

M A N A G E M E N T

C O N S U L T A N T S

Our Story

The Sedlak name is synonymous with

independent, innovative, common sense solutions.

After graduating from John Carroll University with

a major in philosophy and a minor in industrial

engineering, Joe Sedlak went to work for Hodel

Chain and later Picker X-ray designing their

material handling systems. He also taught at John

Carroll, where he met Maurie Salzman, the CEO of

Bobbie Brooks.

Maurie hired Joe to be his distribution center

manager, where Joe designed a totally new,

state-of-the-art DC. It was such the envy of the industry,

Maurie would host tours of the facility and Joe

would get calls from companies on evenings and

weekends asking, “Can you help us?” And he did.

In 1958 Joe decided to hang his shingle. A busy

family man with a strong faith, he based his

company on three principles: family, faith and

profession.

Now a second-generation, family-owned

business, Sedlak supports clients in planning

and deploying their distribution networks and

designing and implementing facilities based on

operational best practices.

We are passionate about listening to our

clients…seeing their business through their

eyes and partnering with them to deliver value

on their terms.

We pride ourselves on both the unsurpassed

body of industry knowledge and the trusted,

enduring client relationships we have built.

(3)

1950s

Company founder Joe Sedlak had a reputation for innovative garment handling systems dating back to his work with former employer Bobbie Brooks. Early on, the majority of Sedlak’s clients were garment manufacturers. Other clients included Picker X-Ray, Ford Motor Company and Colgate-Palmolive.

Joseph A. Sedlak Management Consultants, Inc. founded in August 1958

1960s

Sedlak developed high-speed unit sortation systems to answer the needs of JC Penney, General Merchandise and other catalogers. As specialty retailers began to take market share from traditional department stores, we began working for companies like The Limited and Paul Harris.

Expanded client base of Fortune 500 companies Family ownership changed from 1st generation to 2nd generation

1970s

In this decade, President Reagan approved spending to modernize our defense infrastructure, which had not been updated since WWII. Sedlak did a lot of government work and designed multiple facilities for the military.

1980s

Sedlak developed an information technology practice to support system implementations that were quickly becoming a critical component of automated distribution centers. Also in this decade environmental concerns were growing, impacting building and operational practices.

First green distribution center completed

1990s

With the popularity of internet shopping, Sedlak continued developing innovative designs for e-commerce clients and multi-channel retailers, as well as 3PLs entering the dot-com boom. The Y2K scare was an added concern for many clients, now relying on information systems for daily operations.

Moved into corporate offices in Highland Hills

2000s

Network strategy became a large part of Sedlak’s business as companies faced rising fuel costs on transportation. We continued to support the maturing 3PL market and the ever-changing needs of retailers. Our labor management practice also grew as clients sought greater workforce efficiencies in the distribution center.

In 2008 Sedlak celebrated 50 years as a leader in the industry

(4)

Differentiators

Industry Experience since 1958

We are a niche provider in the logistics industry,

with an unsurpassed body of knowledge and

over 2,500 projects for more than 1,200 clients

worldwide.

Independence

We employ all technologies without bias and

never recommend a vendor’s product of

services unless we are certain it is the best

solution for our client.

Data-Driven

We come prepared with factual information

supported by deep distribution experience.

Process Discipline

We develop proactive, efficient processes and

pursue flawless execution. We address all issues

openly and constructively so that projects are

completed on time and on budget.

Attention to Detail

Our focus on detail and performance metrics

enable our clients to achieve capacity and

operational execution that supports targeted

growth.

Customer Mindset

We listen to our clients and see the business

through their eyes. Over 75 percent of our

clients return to us for solutions to their

ongoing business needs.

Collaborative Methodology

Our time-tested, collaborative approach

engages the client’s participation at every

critical stage of the project and ensures that

optimum answers emerge.

(5)
(6)

Supply Chain Strategy Distribution Network Design

Fulfillment Strategy Assessment & Design Capacity Studies Consolidation Analyses Site Selection

Inventory Deployment & Flow Strategies Statistical KPI & Performance Development

Conceptual Design of New and/or Expanded Facilities

Economic Analysis including ROI

Capital Estimating and Budgeting

Detailed Drawing and Specification

Development Solicitations of Competitive Bids & Vendor Evaluations Transition Planning Implementation & Project Management

Service Offerings

Sound, Unbiased Solutions for New & Retrofitted Facilities Capital Estimates & Budgets Detailed, Engineered Layouts Simulation Modeling Detailed Functional Specifications Comprehensive Competitive Bid Packages & Evaluations Installation Project Management

Functional Systems Requirements

Current Systems Audit Bid Package & RFP Prep System Rollout Planning Comprehensive Project Management

Solution Configuration, Set-Up & Testing Host and Material Handling Interface Support Training Program Development Post Implementation Support Transportation Cost Improvement Assessments Core Carrier Program Development ‘Last Mile Delivery’ & Parcel Delivery Design & Optimization

Private Fleet Optimization Transportation Mode Optimization

Assessorial Charge & Freight Payment Audits Prepaid-to-Collect Conversion TMS Selection & Implementation Outsourcing Support

(7)

Facility/Operational Assessments & Process Audits Energy Savings Productivity & Operations Enhancements “Best Practices” Engineered Standards Labor Management Programs Product Slotting Modeling

Liaison between Client and Contractors/Vendors Coordination of Building, Equipment & IT Vendors Schedule, Budget & Compliance Oversight Implementation Coordination & Testing Transition Planning Communication, Change Readiness, Change Management & Training Programs

Service Offerings

Core Competency Reviews & Outsourcing Assessments 3PL Structure & Relationship Design 3PL Selection & Management Transition & Implementation Planning & Oversight 3PL Performance Audits Insourcing Assistance

Omni-Channel Fulfillment Strategy

Order Capture & Management Design Multi-Channel Distribution Facility & Operations Design

Fulfillment Location Design & Enablement Inventory Deployment Optimization

Store Fulfillment

Operations & Back Room Design

Inventory Assessments Forecasting, Planning & Replenishment Design Inventory Accuracy Process Improvements Inventory ‘Right-Sizing’ Initiatives Inventory Deployment Planning OS&D Inventory Reconciliation & Disposition

Forecasting & Demand Planning Tool Selection & Implementation

(8)

From

Strategic

Planning

To

Tactical

Execution

Project Management / Change Management

• Data collection • Client and customer

interviews • Facility tours and

operational reviews • High level data analysis • Benchmark comparisons

Diagnosis (Phase 0)

• Detailed data analysis • Design alternative creation • Options comparison &

selection

• Stakeholder acceptance • Plan & budget preparation • Approval support

Conceptual Design

(Phase 1)

Detailed process/facility design

Equipment and application specification

Bid preparation and vendor selection

Implementation schedule development

Detailed Design and

Selection (Phase 2)

Implementation/

Integration (Phase 3)

Our Methodology Keeps Us Focused on Results!

• Project management • Schedule management • Quality control

• Operational and applications training

• Transition assistance

(9)

H

UNDREDS

OF

M

ILLIONS

OF

S

QUARE

F

EET

TOTALAREAOFFACILITIES, SYSTEMSANDOPERATIONS

SEDLAKHASDESIGNED, OPTIMIZEDANDIMPLEMENTED ACROSSALLINDUSTRIESANDMARKETS

Founded by innovative material handling system designer Joseph A. Sedlak. Still privately owned by 2nd generation family

members and one of the longest-standing independent supply chain and logistics consultancies in North America.

19

58

O

VER

2,500

P

ROJECTS

for

more than

1,200

C

LIENTS

IN OUR 55 YEAR HISTORY, SEDLAK HAS COMPLETED

W O R L D W I D E

Sedlak by the Numbers

80

%

OVER

Clients who return to Sedlak for solutions

to their ongoing business needs

Average amount our clients save on equipment and

technology purchases, compared to buying direct,

as a result of our strategic vendor alliances and attention to design detail

Average tenure of

our Associates

(Many over 15 yrs.)

11

YEARS

Average ROI 3 to 5 years

$

Cost per Unit (Retail Direct Labor)

$.08 - $.15

Cost per Unit (D2C Direct Labor)

$.25 - $.40

Order Cycle Time 2.5 - 4.0 hrs

OUR DESIGN EXPERTISE AND ATTENTION TO DETAIL HAVE ACHIEVED THESE RESULTS FOR SOME OF OUR CLIENTS.

PERFORMANCE METRICS

10% to

15%

One centralized corporate office in Northeast Ohio facilitates innovation and team-based

solutions for our clients.

Our company was founded upon three principles:

Family, Faith and Profession.

We encourage our associates to engage in life balance and work excellence.

(10)

Alliance Partners

We maintain partnerships with selected vendors whom we have

worked with on client engagements, providing MHE, information

technology, and complementary consulting services.

These partnerships serve to keep our staff abreast of vendor

capabilities, product offerings, and industry news.

Our national account status with these and other vendors coupled

with our attention to design detail typically saves our clients 10-15%,

as compared to buying direct.

As an Independent Consultancy, We are Answerable Only to Our Clients

Sedlak does not receive any kind of compensation from vendors that we recommend for

our client engagements. We employ all technologies without bias and will not recommend

a vendor’s products or services unless we are certain it is best solution for our client.

(11)

Alliance Partners

Material Handling Equipment

Information Technology

Real Estate and Construction

(12)
(13)
(14)
(15)

Why Sedlak?

C R E A T E C O M P E T I T I V E

A D VA N TA G E

F O R O U R C L I E N T S T O D A Y B Y

PARTNERING

W I T H T H E M T O S O L V E T H E I R

LOGISTICS & SUPPLY CHAIN

C H A L L E N G E S O F T O M O R R O W

OUR

MISSION

OUR

PEOPLE

Experienced

Know ledgeable

Objective

Detail-Oriented

Time-Tested

Collaborative

Data-Driven

Disciplined

Performance-Based

Quality Service

Independence

Trust

Enduring

Relationships

OUR

PROCESS

OUR

PASSION

(16)

Thank you!

S

EDLAK

M

ANAGEMENT

C

ONSULTANTS

, I

NC

.

22901 M

ILLCREEK

B

LVD

.  S

UITE

600  H

IGHLAND

H

ILLS

, OH 44122

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