Nz distribution changes

Nylex

Distribution changes

New Zealand

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Content• Overview of changes: New Zealand

• Changes to service overview

• How will it work now?

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Overview of New Zealand distribution strategy

Nylex New Zealand had entered a agreement with Logistics provider Mondiale to perform a 3PL (third party logistics) services from it site at the Auckland

international airport site.The project was offered to both Mainfreight & Toll – with a strategy being worked with

Mainfreight until changes to the model became unworkable from a Nylex position. These changes were tabled to Nylex on the cusp of an agreement, at which the position

became unviable for Nylex.

Details on Mondiale.

1. Mondiale has a 17 year relationship with Nylex dating back to the Able Cooke days2. Mondiale currently performs 70% of international inbound freight for Nylex NZ. Also Mondiale is the biggest

international freight provider in NZ for all international deliveries.3. The Airport site has 1.5 times the capacity required by Nylex. The site is also fully racked with integrated RF

systems4. Mondiale has recently employed an experienced senior logistics manager.5. Mondiale has a full Warehouse management system that is SAP compliant.6. Mondiale has committed in writing to delivering a successful outcome for Nylex.7. Mondiale has committed to a “whatever resource in needed” approach to the successful outcome.8. Mondiale has committed to current lead times offered by our existing transport solutions ex Auckland, and a

timely solution for deliveries to the south island ex Auckland.

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How will NZ now work?

Nylex Mondial distribution

• All current stock will be transferred to new facility from both Auckland & Christchurch.

• Warehouse manager Karen Chaplin will be employed by Mondale specifically to oversee the Nylex distribution changeover as well as day to day expertise brought through 22 years of service to Nylex.

• Go Live date is 15th December.

• North Island deliveries will retain the current delivery leads times with no changes to service. Mondiale has & fleet of 37 vehicles currently servicing this region as well as strong relationships with other specialty providers.

• South island deliveries will 2 days ex Auckland for Christchurch & down the east coast of the north island. From Christchurch down south these lead times can be impacted by weather in winter but are successful +90% of the time. Far reaching destinations in the South island through the alpine region will be 3 days. Full destination map will be available with comprehensive Modiale documentation over the coming days.

• Mondiale has a team of 7 IT specialists that are of this moment working on the interface between Nylex & Mondiale systems with the Nylex IT department.

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How will NZ now work?

Other non distribution based staff

• Mondiale airport site has an office complex consisting of two separate floors. This office is modern spacious with all necessary facilities including significant IT cabling & infrastructure.

• Nylex NZ sales, & other non-distribution teams will occupy the second floor of this complex. This transition will be in the new year as the IT infrastructure has a min 6 week lead time. Until this is configured the current office site will be used as it will take at least this period to source potential tenants. The warehouse will be cleaned & locked after the transition.

• Some photos of the offices & work area below

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The Mondiale Site complexInternal & external

Mondiale presentation in next document

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QUESTIONS & ANSWERS

• Please refer all questions to T Evans