bh Pandemic Preparedness for Logistics & Supply Chain Tom Miazga- Director of Safety, Quality & Regulatory Affairs Randy Karcz- Director of Sales & Marketing, Food Group Assumptions • Pandemic outbreak will originate somewhere other than Wisconsin, Illinois, Iowa • Hydrite will not have more than 35% of its workforce absent on any given day • Affects of pandemic will not endure more than 4-6 weeks Agenda Hydrite Profile Raw Materials Mfg. & Distribution Operating Practices Customer Service Company Profile •Founded in 1929 •Headquarters Brookfield, WI •10 Manufacturing Plants •Contract manufacturing in Modesto, CA & Boise, ID •525 Employees •$300MM + Annual Revenue •10th largest North American chemical distributor •Members of Omnichem & National Association of Chemical Distributors b Agenda Hydrite Profile Raw Materials Mfg. & Distribution Operating Practices Customer Service Raw Material Sourcing Considerations • Maintain adequate supply of key raw materials so we can meet customer requirements • Raw material supply disruptions caused by transportation problems (rail and semi) • Alternative raw material suppliers located in other regions of USA • Unavailability or shortages of key raw materials Raw Material Sourcing Strategy • Understand pandemic preparedness plans of key suppliers • Maximize inventories of key raw materials at first sign of pandemic outbreak • Caustic & Bleach • Nitric & Phosphoric acid • Split purchasing responsibilities for organic and inorganic chemicals • Identify potential backup suppliers with manufacturing located in regions different than major suppliers Raw Material Sourcing Strategy •Increase raw material inventory •Pick up raw materials with Hydrite trucks if common carrier transportation is disrupted •Utilize Omni-Chem partners for tertiary source of raw materials •Partner locations include: Birmingham, AL Detroit, MI Dallas, TX Pittsburgh, PA St. Louis, MO Portland, OR Minneapolis, MN Waterbury, CT Baltimore, MD Memphis, TN Denver, CO Ontario, Canada Agenda Raw Materials Hydrite Profile Mfg. & Distribution Operating Practices Customer Service Hydrite Manufacturing & Distribution Locations Terre Haute, IN Mfg. & Distribution Considerations • Safeguard health of Hydrite manufacturing & distribution personnel • Maintain adequate supply of finished goods so we can meet customer requirements • Current inventory approximately two weeks • Space available for two additional weeks • Distribution interruptions caused by diesel fuel shortages Manufacturing Strategy • Utilize multiple Hydrite locations to manufacture key products- capitalize on product line overlap • Suspend all non-essential manufacturing and transportation activities • Utilize employees from neighboring plants if necessary • Increase production to seven day week • Outsource production if necessary • Omni-Chem members • Contract manufacturers & competitors Distribution Strategy • Reduce frequency of deliveries to multi-delivery areas to allow delivery to all areas • Request that customers carry more inventory • Weekend delivery of customer orders • Limit customer plant access by Hydrite drivers • Driver swapping among neighboring Hydrite facilities • Deliver via common carrier bh Agenda Mfg. & Distribution Hydrite Profile Raw Materials Operating Practices Customer Service Operating Practice Considerations • Maintain uncontaminated production facilities • Maintain adequate production levels of key products • Maintain pandemic related communications with all Hydrite employees Operating Practice Strategy • Broaden HACCP program to encompass entire facilities • Restrict access of non-Hydrite employees • Intensify equipment sanitization practices • Implement wearing of face masks when making deliveries/receiving raw ingredients/working in production areas • Install additional hand washing/sanitizing stations in plants and offices • Stay current with updates from CDC Agenda Operating Procedures Hydrite Profile Raw Materials Mfg. & Distribution Customer Service Hydrite Food Group Service Team • • • • • 3 Senior Managers 22 Sales/Service Reps 3 Regional Managers 4 Business Development Managers 5 Technical Service Managers Branch Customer Service Personnel Delivery Drivers Customer Service Considerations • Safeguarding health of Hydrite customer service personnel • Availability of service reps to conduct service visits- (potential illness) • Potential plant visitor restrictions imposed by customers • Potential gas rationing • Potential product/raw material unavailability Customer Service Strategy • Conference call for customer service personnel outlining policy for safeguarding their health • Use offices at home- telephone and email • Letter to all customers outlining temporary change in service practices- weekly updates • Minimize personal contact with customers • Hand shaking • Wearing of face masks Customer Service Strategy • Reduction of service visit frequency- extended visits • Regional Managers/Tech Staff cover for ill service reps • Adhere to customer imposed site restrictions • Provide substitute products in case of raw material unavailability • Frequent communication with all customers Thank You a PROVIDING CREATIVE SOLUTIONS