Lift Volume 6

volume 6

LiFT Lift – ( l˘ıft ) verb • 1. raise to a higher position or level; encourage or cheer; to raise or direct upward

this issue: Global Logistics: Lean Logistics in Action

2016 Scholarship Winners Employees Making a Difference

Photo: Lean Logistics Team Pritchard Road, Global Logistics

Executive Insight After another busy Peak Season that has come and gone and as we approach year’s end, I am grateful for the determination of our employees across this great company. In the last year, we have made some significant changes to how we operate our businesses. There have been some challenges along the way as we make tough decisions in a challenging and evolving global marketplace. However, at the core, our strong team, robust culture and newly invigorated brand still remains resilient and unwavering. We are positioned to continue our role as market leaders in some segments and become leaders in others with our unparalleled breadth and depth of services offerings.

Going full speed ahead into the remaining month of the year, we will continue to focus on driving consistency, ensuring accountability for our goals of market

leadership and operational excellence. This quarter, we have concentrated on standardization and efficiency within our business units. In this edition of LiFT, we take a deeper look into how we are going to improve productivity and efficiency in the Global Logistics space – we have made some real progress in our thought leadership capabilities and in our global presence. We will also highlight how we are making a difference and are personally invested in our customers, employees and communities in which we operate.

As your president and CEO, I am profoundly aware of the drive, commitment, trust and teamwork it takes from each of you to take moving the world personally. Together, we are stronger and cannot be beat.

Please take a moment to read and reflect on the wonderful accomplishments of our organization within the pages of this volume of LiFT.

Mike Brannigan President and Chief Executive Officer The Suddath Companies

To contribute to the next LiFT, submit your stories and photos to: lift@suddath.com.

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In the News... Handling Office Relocations with Care

“Moving an office requires way more planning than moving a house,” according to an article in the Minnesota-based Finance & Commerce. While residential moves are based on cubic feet and weight of the items, office moves are better estimated in terms of laborers’ hours. READ ARTICLE

Feature Article Lean Logistics in Action

We all know the saying “less is more” however, in the business of Global Logistics, “less” equals LEAN—Lean Six Sigma that is. When the Suddath ® Contract Logistics (CL) team recently embarked on a journey to implement the Lean Six Sigma methodology into their production processes, they knew it would take the right combination of people, processes and culture to be successful. Lean Six Sigma is a powerful, proven method of improving business efficiency and effectiveness. It relies on a collaborative team effort to improve

performance and reduce waste associated with the flow of materials and information in a process from beginning to end. The goal of Lean is to identify and eliminate non-essential and non-value-added steps in the business process in order to streamline production, improve quality and gain customer loyalty. “Our Lean Six Sigma roll-out is expected to be a game changer for Contract Logistics,” explains Dan DeSoto, president of Global Logistics. “There are many benefits of adopting Lean Six Sigma for Suddath. By implementing this process nationwide at our logistics warehouses, we will create efficiencies, standardize work culture and ensure a consistent workflow. While there will always be differentiations in the marketplace, when there is consistency across the division and locations, customers and prospective customers can be confident that the same quality and management standards are being implemented across the board.”

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Feature Article (continued) This past April, Total Quality Management-certified and ISO-9000 trained professional, Manju Thirtha, was hired as vice president of engineering solutions to kick start this journey. Manju, along with CL senior vice president, Sam Sharp, will lead the Lean Six Sigma roll-out to all locations and bring operational excellence to Global Logistics for Suddath. Their goals are many, including the expectation to redefine processes and procedures, and to eliminate the inherent waste in daily operations. Manju and Sam are working together with their teams to finalize the national Lean roll-out schedule for all CL locations. Manju, trained in Lean Six Sigma, comes to Suddath with practical knowledge and certification as a Green Belt. “My priority is to develop a ‘Lean Platform’ on which the entire Suddath network operates,” explains Manju. “By improving quality and safety, along with productivity improvements and waste reductions, customer service naturally improves which provides added competitive advantages in the 3PL market. Lean makes you think broader about the entire setup in the warehouse, not in silos, and gives employees a voice. It’s the true difference of working IN the process versus ON the process.”

LEAN SIX SIGMA is a methodology that relies on a collaborative team effort to improve performance by systematically removing waste, combining LEAN manufacturing and Six Sigma to eliminate the 8 wastes of DOWNTIME .

D Defects O Overproduction W Waiting N Non-Utilized Talent T Transportation I Inventory M Motion E Extra-Processing

Along with Manju and Sam, all key operational owners in CL completed their Yellow Belt Certification in June of this year. The Yellow Belt training certifies knowledge of how to integrate Six Sigma methodologies for the improvement of production and transactional systems to better meet customer expectations and bottom-line objectives. Yellow Belts typically do not lead projects on their own, but their understanding of Lean Six Sigma allows them to be a core team member and subject matter expert in operations for projects.

By investing in our people, CL will have the optimal procedural and reporting infrastructure to ensure Suddath runs the most efficient, yet profitable, operations possible. The following Suddath employees have completed their Yellow Belt Certification for Contract Logistics.

• Vincent Barone, Jacksonville • Scott Brown, Jacksonville • Nate Cass, Jacksonville • Jeff Gregory, Jacksonville • James Jefferson, Jacksonville • Joe Moes, Dallas • Carlos Monjarrez, Miami

• Russell O’Dell, Jacksonville • Sam Sharp, Jacksonville • Claudia Sysak, La Mirada • Mike Valnoha, Jacksonville

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Feature Article (continued) As part of this nationwide rollout, Suddath first introduced the Lean methodology to our Pritchard Road facility for a newly acquired customer—a Jacksonville-based company that produces and sells nostalgic products including clothing, accessories, jewelry and home décor targeted for women of all ages. Currently, Suddath provides 17 dedicated employees who manage over 2,000 inventoried items and fulfill close to 60,000 orders a year. CL provides receiving, pick, pack & ship, international shipment, trade show support and value-added services for this e-commerce client.

As already evidenced with this roll-out, by empowering employees to be a part of the solution and to take ownership of their work, companies and leaders who embrace Lean can create a climate that encourages true engagement and success.

Ghana-born warehouse pick lead, Kwasi Addu, shares his recent introduction to LEAN in our Pritchard Road facility, “It’s like a secret diamond – a powerful tool that can benefit businesses in a defined space with a lot of wasted time or delays in the system.” Addu, employed with Suddath for three years, has worked in several warehouses before but never had the opportunity to be a part of Lean explains the importance of the philosophy, “You see what Lean means to business. You instantly know what needs to be done – what is right or what is wrong. It gives you a positive mindset and an urgency to fix things because it empowers you to do so. Lean changes your perspective and gives employees enthusiasm. We are all part of the process as it gives us new tools and ideas to implement here in the warehouse.”

Initial reports show that the Lean Six Sigma implementation has made a positive impact on the CL business; truly showing that less waste and less downtime generates MORE efficiency, consistency and quality throughout the organization.

Opportunity on the Move SM — Lean in Action A practical example of Lean in action: After an initial review, it was determined that a more streamlined approach to the pick & pack step in the process to fulfill a customer’s order could be achieved. Warehouse workers noticed that by removing the redundant step of placing the contents into a plastic tote, valuable time could be saved by placing the order directly into the shipping box instead. By removing this non-value-added step, 12% of the pick & pack time has been saved, increasing the effectiveness and efficiency of the pick & pack process.

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Awards and Professional Recognition Winning Spirit

With determination that goes beyond what’s expected, the following section highlights awards, recognition and professional development success for our people and our processes. This pursuit of excellence mobilizes endless opportunities for us to do what we do best.

Thought Leadership Lexicon ®

Relocation’s China Global Mobility 360˚ Survey Report won the Forum for Expatriate Management’s (FEM) EMMA Award for “Thought Leadership – Survey or Research Study of the Year.” This is the first full-scale survey of China employee relocation practices that examines the full breadth of mobility in China for both China and non-China headquartered companies. The survey was translated into Chinese and sent to companies with both domestic China relocations and full global mobility programs.

“Being named as the winner for this EMMA reflects a concerted effort behind the scenes to consistently deliver high impact thought leadership,”

added Jon Hile, Lexicon Relocation president. “These efforts are particularly evident on our website’s blog and resource center. This award is a great compliment to Lexicon’s continued focus on being a resource that brings practical tools, advice and thought leadership to global mobility managers worldwide.”

Re:locate Awards Re:locate Magazine recently announced the results of its ninth annual awards, and Lexicon Relocation is proud to report that in connection with its client, Maritime and CoastGuard Agency, won for the category of Outstanding HR & Supplier Partnership. The award acknowledges human resource teams who work in partnership with a supplier to deliver a relocation project or an aspect of global mobility that enhances the company’s business objectives and/or the quality of the relocation support provided to individual employees. Re:locate judges cited evidence of a great partnership where working together to manage a difficult transition has resulted in an ideal outcome.

“This award validates our belief that Lexicon can transform a company’s relocation program with innovative global mobility solutions that come from truly listening to our clients,” said Jon Hile, Lexicon Relocation president. “We strive to be a partner that can tailor programs to fit a company’s unique challenges and objectives, and we believe our clients are seeing the significant results that come from our commitment to our customers. We are truly humbled by the award.”

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Awards and Professional Recognition (continued)

Paralegal Cori Derstine has the winning spirit More than 200 submissions of employees who truly represent the Suddath brand were received during our inaugural “We Are The Brand” campaign. Based on the heart felt and detailed submissions from fellow employees, it is clear Paralegal Cori Derstine is Driven by People and has a Winning Spirit! Suddath salutes Cori on receiving the highest number of nominations during this special time.

“Working at Suddath has been a wonderful experience. I’ve learned so much in my time here. I love my team, and I’m excited to see what the future holds!”

Driven by People – Employees Making a Difference Tucson Raises $4,000 for March of Dimes

What began four years ago as a desire to support an organization whose aim is to provide a fighting chance for every baby, has grown into an annual event that embodies our core values: integrity, trust, innovation, commitment and teamwork.

The concept seems easy: hold a rummage sale and donate all proceeds to the March of Dimes. However, behind the scenes an enormous amount of organization, collaboration, management and compassion is necessary to have a successful result. Amanda Weaver has been at the forefront of this event since its inception four years ago. She has connected the heart of what we do to the heart of who we are by bringing customers into the experience; willing customers are able to donate unwanted items during their move and receive a tax deductible receipt from the March of Dimes. What is even more amazing is that every employee at the Tucson location has been involved in one way or another. The involvement in this event doesn’t end with our employees at Suddath; the community has really embraced the event and donated their time, supplies and services. This included a local printer who printed over 500 flyers, donations of cases of bottled water, and had the Tucson Food Truck Rally onsite who donated a portion of all sales to the March of Dimes. After completion of the fourth annual rummage sale on April 9, 2016, over $16,000 has been raised for the March of Dimes. Great job Tucson on exemplifying what can be accomplished when integrity combines with teamwork and commitment!

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Driven by People – Employees Making a Difference (continued) Customer Service taken to new heights When Delta Airlines Transatlantic Pricing Specialist Nicholas Lanoue got his overseas job assignment, he was more than thrilled. However, that joy soon turned to panic when he realized he had done the unthinkable—left his passport in a locked safe, packed up in our Atlanta warehouse awaiting his Amsterdam-bound shipment. With his overseas flight the next day and a going-away party of well-wishers in full swing, Lanoue reacted quickly to his realization and called the weekend emergency number. International Operations Manager José Marrero handled the call despite being on vacation and then contacted Atlanta General Manager Chris Perry, who confirmed that Lanoue’s shipment was still in the warehouse and made arrangements to retrieve the elusive passport. They arrived at 8:00 am on Sunday morning to find that warehouse worker Kevin Henry had already pulled the shipment and had it ready to be opened. Even after finding the specific box with the safe, Kevin then carefully re-assembled the shipment to ensure proper transport overseas.

“It is rare for situations to be handled with such understanding, responsiveness, and professionalism in the normal course of business—let alone on vacation and over the weekend,” exclaims Lanoue. “All too often, it seems that people only hear negative feedback in the service industry. I’ve seen in my move coordinator emails that ‘Suddath is committed to providing the highest level of service to you, our customer’ and José, Chris, and Kevin exemplified exactly that.”

Suddath salutes José Marrero, Kevin Henry and Chris Perry for making a difference in the lives of our customers and by truly taking moving the world personally.

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Infographics: Worthy of a Thousand Words How Technology is Improving Safety and Efficiency in Transportation Technology has helped truck drivers become more efficient and stay within safety guidelines as they travel across the nation and around the world. This infographic shares some of the latest advancements helping companies, like Suddath, monitor the safety and efficiency of an entire fleet of drivers. CLICK HERE

Be on the Lookout for… Global Mobility: Top Trends to Watch Report This bi-annual trends report by Lexicon Relocation can help you stay current on all of the hot topics affecting our industry right now. • How events like the possible Brexit could impact global mobility • The evolution of international relocations due to technology and immigration changes • The role of localization in global mobility in different regions

CLICK HERE to read more.

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Suddath Compliance Program: What We Do Matters SM Our Compliance Program empowers every employee with the responsibility to create a positive work environment by promoting open communication, safety, quality and ethical behavior. As part of this program, Suddath wants to educate employees about various issues affecting today’s business environment.

With data security breaches happening in companies every day, Corporate Counsel Sean Murray shares his insight on personally identifiable information (PII) and what you can do to safeguard this vital information.

Safeguarding PII: An Ounce of Prevention Is Worth a Pound of Cure Despite the arrival of the digital era, Benjamin Franklin’s famous saying still rings true, particularly in the context of data protection. Companies routinely acquire vast amounts of information. This information presents opportunities to deepen existing relationships and develop new ones. However, the volume of data acquired and retained in today’s business environment also poses significant risk because it frequently includes personally identifiable information, commonly known as “PII.” What is PII? PII is generally defined as information maintained in either paper, electronic or other media that directly or indirectly identifies an individual such as, name, address, race, date of birth, or social security number or other identifying numbers or code. More simply, PII is information that can be used to identify, contact, or locate an individual, either alone or when combined with other easily accessible sources. Why Should Businesses Protect PII? Failure to safeguard PII can expose a company’s clients or employees to identity theft and fraud. Mishandling PII can also have corporate reputational, financial, and legal consequences. According to Information Week, approximately 89% of U.S. consumers have avoided doing business with a company because of concerns about how the company handled PII. Also, the average cost of a direct or inadvertent disclosure of PII is approximately $3.8 million, up 23% over the past two years (Reuters 2016) . Inadequate protection of PII, such as a failure to follow the simple safeguards listed below, could also result in civil liability or criminal sanctions for a company, and even individuals, under state, federal, and international laws.

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Suddath Compliance Program: What We Do Matters SM (continued)

How Can I Help Protect PII? You can take several simple steps to protect PII. To assist you in your efforts, just remember to P-I-I.

• Protect PII by using and frequently changing strong passwords. Strong passwords should include a mix of letters, numbers, and special characters. Limit access to, and disclosure of, PII to those with legitimate business needs.

• Investigate emails requesting PII. Verify the sender’s email address; be suspicious of even slight deviations in the originating address or naming convention. Evaluate whether the requestor has a legitimate need for the PII. Consider the context of the request, even if it comes as a directive from internal senior management.

• Identify concerns about the disclosure of PII to your compliance, legal, IT, or management team.

The Suddath Companies: Code of Business Conduct and Ethics “CLICK HERE”

Corporate Social Responsibility: Scholarships Each year Suddath scholarships are awarded to graduating seniors of current employees. The scholarships provide tuition, books and fees for four years at a state university or college. Since 1990, Suddath has awarded 37 total scholarships. The recipients are chosen based on a combination of grade point average, community involvement, personal achievements and an essay submitted to the selection committee. The following scholarships were created to honor the commitment and dedication of our former leaders and the many achievements realized during their years at the helm of The Suddath Companies. We are pleased to announce this year’s recipients of the Richard H. Suddath, A. Quinn Bell and Barry S. Vaughn scholarships.

2016 Richard H. Suddath Scholarship Award Winner Elyse Politica, daughter of Maria Politica, relocation counselor with Lexicon Relocation of Connecticut, is the recipient of the 2016 Richard H. Suddath Scholarship. Elyse graduated from Notre Dame Catholic High School, in Fairfield, Connecticut, with a GPA of 4.73. Elyse was captain of her varsity volleyball team, a member of the National Honor Society, Spanish Honor Society and a conservation discovery corps member. She also volunteers at animal conservations and organizations in her free time. She is attending the University of Connecticut, majoring in Animal Sciences with aspirations to attend veterinary school.

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Corporate Social Responsibility: Scholarships (continued)

About The Richard H. Suddath Scholarship Established in 1990, The Richard H. Scholarship was created following Richard Suddath’s 1989 retirement as Chairman of the Board of The Suddath Companies. Dick, the son of founder, Carl Suddath, was instrumental in growing the company from a small, local moving company to a regional leader.

2016 A. Quinn Bell Scholarship Award Winner Miranda Kishel, daughter of Network Operations independent contract driver, Brett Kishel, is the recipient of the 2016 A. Quinn Bell Scholarship. Miranda graduated from Virginia High School in Virginia, Minnesota, with a GPA of 3.97. An activist in the community, Miranda volunteers regularly to help younger kids experience the arts and has held various positions at her high school while excelling in honors classes. She is a member of both the National Honor Society and Phi Theta Kappa Club. She will be double majoring in Entrepreneurship and Finance at the University of Minnesota Duluth.

About The A. Quinn Bell Scholarship Established in 2005, The A. Quinn Bell Scholarship was created following Quinn Bell’s 2005 retirement as president and CEO of The Suddath Companies. Quinn was CEO from 1968 to 2004 and led Suddath during some of the company’s greatest periods of growth and expansion.

2016 Barry S. Vaughn Scholarship Award Winner Taylor Reis, daughter of Government Services accounts payable coordinator, Linda Reis, is the recipient of the 2016 Barry S. Vaughn Scholarship. Taylor graduated in the top 2% of her class of 700 from Sandalwood High School in Jacksonville, Florida, with a GPA of 3.91. Since her freshman year, Taylor has been actively involved in her community celebration youth group, going on her first mission trip to Costa Rica in 2014. She was also a member of the varsity soccer team, drama club and has held various leadership positions while still maintaining a high GPA. She plans to attend the University of Florida in the Fall of 2017, following receiving her associate’s degree from Florida State College of Jacksonville in May 2017.

About The Barry S. Vaughn Scholarship Established in 2015, The Barry S. Vaughn Scholarship was created following Barry Vaughn’s 2015 retirement as president and CEO of The Suddath Companies. Barry joined Suddath in 1974 and assumed the CEO position in 2003. He continues to represent Suddath in various industry leadership positions and is currently the vice chairman of the Board of Directors.

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LiFT LiFT is published to highlight various accomplishments, accolades and activities of The Suddath Companies. Stories and ideas are generated through business events, corporate communications, customer testimonials, and social media engagement. Please refer to each section header and send us your relevant content for review and inclusion.

To contribute to the next LiFT, submit your stories and photos to: lift@suddath.com.

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LiFT is published by The Suddath Companies | Editor-in-Chief: Melinda Byrnes | Editor: Randy Bruce | Graphics: Michael Traylor All material for publication must be submitted to Corporate Marketing, lift@suddath.com.

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