Page: 1 AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000 Prepared for GERMAN SPORT GUNS Presented by Bob Bona, VP Operations.

Page: 1AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Prepared for

GERMAN SPORT GUNS

Presented by Bob Bona, VP Operations

Page: 2

What is A&D Secure

Shared Asset Visibility

RFID Integration

Benefits

Implementation Steps

AdvanTech’s Role

Next Steps

A&D Secure Overview

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Page: 3

Shared Asset Data RFID Technology

A&D Secure Overview

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Page: 4

Shared Asset Data RFID Technology

A&D Secure Overview

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Page: 5

Current Supply Chain Asset Visibility

Manufacturing Distributors

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Page: 6

Shared Supply Chain Asset Visibility

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Manufacturing Distributors

Dealers

A&DSecure

Page: 7

A&D Secure Data Flow

Manufacturing Distributors

Dealers

A&DSecure

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

P/OS/O

ASN

P/O

S/O

ASN

A&D

POS

Shipment ShipmentRecpt

Recpt

A&D

Page: 8

A&D Secure Overview

Shared Asset Data RFID Technology

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Page: 9

Introduction

Focus on Passive RFID (pRFID) Focus on pRFID and an Integrated Supply Chain Personal Privacy Department of Defense pRFID Successes

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Page: 10

What pRFID:

ISValuable Management ToolImproves OperationsImproves AccountabilityIncreases Asset Visibility

IS NOT

“Electronic Bar Code”

Additional Overhead

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Page: 11

RFID Technologies

GPS

Active RFID

Passive RFID

Transmitter Satellite Reader Satellite Receiver

Reusable Transmitter with internal power source

Multiple Fixed Readers Extension of LAN / WAN

Disposable Transmitter with external power source

Fixed Reader with Multiple Antennas and/or Handheld Readers

Category Specifications Reading Range

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Page: 12

1)RFID Truck With Tagged ContainerApproaches Interrogator

2) Interrogator sends out signal for aRFID tag to respond

3) aRFID tag transmits signal in response to interrogator –

Active RFID Operation

4) Interrogator reads and sends data to supporting Information System

Container Tagged with aRFID

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Page: 13

1) Forklift with pRFID tagged pallets and cases approaches portal

2) Portal reader creates RFID read zone

3) Signal from RFID portal energizes pRFID tag antenna and chip for response

4) Portal reads pRFID tag information and sends to supporting Information System

Passive RFID OperationPassive RFID Operation

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Page: 14AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Page: 15

End to End Supply Chain Quality ProcessPoints of RFID Integration

ManufacturerManufacturer Wholesale/DistributorWholesale/Distributor

1 7 8 95 6

Receiving Repackaging Shipping Receiving Stock Movements

Sale

43

ShippingPackaging F/G Inventory

2

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

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Manufacturing Wholesale/Distributor Dealer

Demand Planning Yes Yes Yes

Contract Management Yes Yes

Production Management Yes

Shipping / Invoicing Yes Yes

Receiving Yes Yes

Location Management Yes Yes Yes

Order Picking and Staging Yes Yes Yes

Physical Inventories and Cycle Counts Yes Yes Yes

Shelf Space Allocation Yes

Point of Sale Yes

Anti-Counterfeiting Yes Yes Yes

Product Recalls Yes Yes Yes

Expiration Date Tracking Yes Yes Yes

Stop Loss (Theft Prevention) Yes Yes Yes

Where can pRFID be Incorporated?

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Page: 17

Operational Improvements

Operational Activity Documented ResultsProduction Control Reduced Quality Checks by 20 hours per week

Receiving Reduced Receiving Time from 3 hours to 20 Minutes

Point of Sale Processed Platoon of 50 Recruits in 1 hour down from 2.5 hours

Physical Inventory Counting Reduced Counting Time from 2 days to 6 hours

Physical Inventory Variance Variances reduced from 5% to 0.18%

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Page: 18

A&D Secure Overview

Shared Asset Data RFID Technology

Immediate Production Status Data Improved Finished Goods Tracking Automated Location Management 99%+ Picking, Staging and Shipping accuracy Visibility of Assets throughout the Supply

Chain Improved Production Planning

Eliminate handwritten documentation Immediate Updates to A&D Bound Book Rapid Serial Number Searches Automatic Bound Book changes audit trail Electronic Bound Book files and Back ups Automated Receiving Vault Management and Asset Tracking ATF Audit Ready

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Benefits

Page: 19

A&D Secure Implementation Steps

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Data Integration with Legacy SystemData Integration with Legacy System Packaging Module (RFID / Bar Code)Packaging Module (RFID / Bar Code)

RFID Vault ManagementRFID Vault Management

Push Master Catalog, Current Inventory, Production Orders and Sales Order Data from Legacy System

Data is incorporated into A&D Secure and A&D Local databases

Updates can occur multiple times per day

Incorporate RFID into existing Packaging Processes that incorporate current Labeling requirements

Generate RFID Tag to attach to each item and verify correct link to each Serial Number

Update A&D Book on A&D Secure Web site

Tracks Personnel in and out of Vault using RFID Enabled ID Cards

Track individual items into and out of Vault Customized Rules to notify appropriate personnel

for Items that have left the vault

Perform complete Shipping function including individual Serial Number accounting using RFID Tags or Bar Code Serial Numbers

Generate RFID Case and Pallet Labels a part of Shipment Staging Process

Generate Packing Slips and Manifests as required

Update A&D Bound Book on A&D Secure Web site

Electronically sent Advanced Shipping Notice to Distributors/Dealers using A&D Secure application

Send Detailed Packaging data back to update the Production and Inventory Tables

Send Detailed Shipping data back to update Shipping, Sales Order and Inventory Tables

Shipping Module(RFID / Bar Code)Shipping Module(RFID / Bar Code)

Data Integration back to Legacy System

Data Integration back to Legacy System

A&D Secure Implementation Steps

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AdvanTech:

Does

Train Clients on Use and Value of an Integrated pRFID approachProvide “Test Kit” to allow Clients to try pRFID first handProject ManagementBaseline Current Processes and Identify points of pRFID IntegrationRFP Development and EvaluationsDevelop Business Case AnalysisImplementation SupportLink 3 Supply Chain Segments in coordinated solution (Manufacturers, Distributors, DealersReduce Implementation TimeReduce Start-up Costs

Does NOT

Sell HardwareHave Contractual Relationships with RFID ManufacturersHave Contractual Relationships with RFID Solution Providers

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000

Page: 22

Thank You

Vielen Dank für Ihre Zeit und Interesse

Questions and Next Step

Visit our website(s):

http://AD-Secure.com

http://RFID.advantech-inc.com

AdvanTech, Inc. 2661 Riva Rd, Suite 1030, Annapolis MD, 21401 * (800) 266-8000