LOGISTICS & SECURITY SYSTEM

Logistics Overview

Monterrey Plant

• Products:

•Distribution

•Marine

•Special Applications

•Electronic & TV System

•Automotive

•ETC

San Luis Plant

• Products:

•Building Wire

• We moving around 25,000 shipments per We moving around 25,000 shipments per year, moving more than 242 million of year, moving more than 242 million of pounds from suppliers and to our customers pounds from suppliers and to our customers around the world.around the world.

• We process more than 6000 sales orders in a We process more than 6000 sales orders in a year with about 5000 different SKU´s.year with about 5000 different SKU´s.

• We process more than 50,000 PO´s for more We process more than 50,000 PO´s for more than 9000 SKU´s.than 9000 SKU´s.

Logistics Overview

CMSA Products presence & Ops

Europe Supply Chain

Tech Suppliers

•High value Shipments

•Lead time is critical

•Inco terms:

•EXWORK

•CIP

Transport: Air

BAX

Lufthansa

DHL

FedEx

Complexity:

Lead time

Customs release

Asia Supply Chain

Raw Material Suppliers

•Long term production programs

•Inco terms:

•EXWORK

•CIF

Transport: Sea (40” DC)

Hamburg Sud

CMA

Complexity:

Lead time

Logistics Cost (projects)

•Quality insurance

America´s Supply Chain

Raw Material Suppliers

• large lead time

•Inco terms:

•CIP

Transport: Sea (40” DC)

MSC/Hamburg Süd / Happag

Complexity:

Lead time

Logistics Cost (projects)

Domestic Supply Chain

ss

ss

ss

ss

ss

ss

ss

ss

ss

All Kind Suppliers

• Strategic & non strategic materials / spare parts / ETC

• JIT deliveries

•Inco terms:

•CIP / EXWORK

Transport: ALL

Complexity:

Logistics Cost (projects)

More than 200 suppliers'

Logistic Overview – Transport -

GROUND83%

AIR1%

SEA16%

• Low Boy

• Plataforma

• Fulles Plataforma

• Caja Seca

• Fulles caja seca

• Tortón

• Rabón

• Tortoneta

• 3 ½ Tons

• 40 DC

• 20 dc

• 40 & 20 HIGH CUBE

• OPEN TOP

• FLAT RACK

Logistics Overview – Export -

Asia & Africa3%

DOMESTIC30%

USA 52%

LATAM15%

MARKET DISTRIBUTIONS

CUSTOM´S DISTRIBUTION

Manzanillo, Col5%

Cd. Hidalgo, Chia5%

Altamira, Ver10%

Others0%

Nuevo Laredo, Tamps80%

How we make it?

Our Logistics system involves three major critical areas: Our Logistics system involves three major critical areas: Security, procedures & training and certification with one Security, procedures & training and certification with one key objective - key objective - keep it simple & visualkeep it simple & visual

Warehouse

• All the material is labeled with a tag since its initial All the material is labeled with a tag since its initial production processes. Upon arrival at our shipping production processes. Upon arrival at our shipping warehouse, it is read with a hand-held device in warehouse, it is read with a hand-held device in order avoid human error.order avoid human error.

• CMSA invested over in our new C-TPAT certified CMSA invested over in our new C-TPAT certified Warehouse during the past 2 years. Warehouse during the past 2 years.

Warehouse Security

• Our Warehouse was designed to be a independent operation and without transit of people and transport.

• It has fence and light in order to prevent any intrusions

• We have a CCTV on all the critical areas

• IT developed a friendly and visual tool IT developed a friendly and visual tool which allows a quick and easy load program. which allows a quick and easy load program. This includes order information such as time This includes order information such as time at warehouse, promised delivery date, % of at warehouse, promised delivery date, % of the order in the warehouse, destination, size, the order in the warehouse, destination, size, weight and length of the each label…weight and length of the each label…

• This system allows an automatic This system allows an automatic communication with the warehouse dpt. communication with the warehouse dpt. What, how and when everything is loaded…What, how and when everything is loaded…

Load assignation program

Load

• The tool gives the order to the shipping The tool gives the order to the shipping department, providing all of the department, providing all of the customer´s intructions such as special customer´s intructions such as special markings, lagging, delivery intructions, markings, lagging, delivery intructions, etc. Warehouse personnel have the etc. Warehouse personnel have the Load Packing List & the instructions Load Packing List & the instructions together.together.

• Another critical concern is security. For Another critical concern is security. For this reason, we abide by the C-TPAT this reason, we abide by the C-TPAT bases, checking all the equipment that bases, checking all the equipment that we load since it arrives at the plant and we load since it arrives at the plant and when we start to load avoiding any any when we start to load avoiding any any kind of smuggling or security threat. kind of smuggling or security threat. We keep records in 90-day batches, We keep records in 90-day batches, which include load details, security which include load details, security checklist and graphic evidence. All the checklist and graphic evidence. All the system are protected by a passwordsystem are protected by a password

Security aspect of load

• Invoice, packing list and letter of instructions Invoice, packing list and letter of instructions is a process on our MFG system which is is a process on our MFG system which is encrypted with a personal password and is encrypted with a personal password and is tied with the load program system & the load tied with the load program system & the load checklist in order to prevent mistakes and checklist in order to prevent mistakes and information leaks (security issue).information leaks (security issue).

• The system, sends the information to our The system, sends the information to our customs broker and our American carrier at customs broker and our American carrier at the moment that we finish the the moment that we finish the documentation process; with this, the documentation process; with this, the moment the unit arrives to the international moment the unit arrives to the international border, all the procedures are expedited. border, all the procedures are expedited. This reduces wait-time by over 3 hours per This reduces wait-time by over 3 hours per load. load.

Documentation

Documentation

• The American and the Mexican The American and the Mexican Government documents (pedimento de Government documents (pedimento de exportación, Manifest and entry) are exportación, Manifest and entry) are linked with our invoice and the linked with our invoice and the shipping number and are available in shipping number and are available in our records. The BOL for the American our records. The BOL for the American carrier is also provided by our customs carrier is also provided by our customs broker and linked also in our files.broker and linked also in our files.

Track & Trace

• 100% of our units are on a “trace & track” 100% of our units are on a “trace & track” system. system.

• This system has all the delivery information, This system has all the delivery information, ETA, RTA, packing lists, Load pictures. ETA, RTA, packing lists, Load pictures.

Linked System & Proof of Delivery

• Tracking product by batch and by reel and by spooling on mfg & Tracking product by batch and by reel and by spooling on mfg & intranet since they´ve been labeledintranet since they´ve been labeled

• Load program is made with specific labels which continue with the Load program is made with specific labels which continue with the tracking of the materialtracking of the material

• Invoicing and packing list are both linked with the tracking of the Invoicing and packing list are both linked with the tracking of the product and with the shipmentproduct and with the shipment

• Shipping document and official documents link the invoice and the Shipping document and official documents link the invoice and the shipment #shipment #

• The BOL for the carrier & the POD once the material is received by The BOL for the carrier & the POD once the material is received by your customer Links to the invoice on Intranetyour customer Links to the invoice on Intranet

• ALL THE REELS THAT CMSA PRODUCES WILL BE ALL THE REELS THAT CMSA PRODUCES WILL BE TRACKED ON INTRANET BY THE LABEL CODE OR TAGTRACKED ON INTRANET BY THE LABEL CODE OR TAG

How we improve?

We follow Key Performance Indicators We follow Key Performance Indicators (KPIs)(KPIs)• On-time DeliveryOn-time Delivery• Invoicing mistakesInvoicing mistakes• Transit timesTransit times• Idle timesIdle times• Deviation of loadsDeviation of loads• Cyclic inventoriesCyclic inventories• POD recovery cycle timesPOD recovery cycle times• Freight costFreight cost• Improve projectsImprove projects Our Target is to give the customer the best on-Our Target is to give the customer the best on-

time service around the worldtime service around the world

Latam Export Logistic

ss ss

ss

ss

ss ssss

ss

ss ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss ss

ss

ss

ss

ss

ss

•Several customers around LATAM

• Incoterms:

•FOB

•CIF

•DDU

•DDP

TRANSPORT:

Land : 53” & 48”

SEA: 40 & 20 DC, High Cube, Open Top, Flat Rack

COMPLEXITY

Custom regulation, booking timing. security

Nafta Export Logistic

•Nafta Wide market

•All product / one dustribuitor/ delivery on final customer warehouse & job sites

• Incoterms:

•CIP

TRANSPORT

FLAT BED, DRY VAN, LOW BOY, AIR, LTL.

COMPLEXITY

JIT, SAVING COST, VELOCITY & INFORMATION

BEST ON CLASS SERVICE

ss

ss

ss ss

ss

ss

ss

ssss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ssssss

ss ss

ss

ssss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

ss

Domestic logistic

Customers:

Government / distribuitors, comercial branch, automotive sector, TV system sector, etc

National wide market

• JIT deliveries

Transport: ALL

Complexity:

Logistics Cost, velocity, security, special deliveries, special areas, focus on timing

CMSA LOADS

VIAKABLE Division

VIAKABLE Division

CONDUCTORES MONTERREY S.A. DE C.V.

CONDUCTORES MONTERREY S.A. DE C.V.

Grupo XignuxGrupo Xignux

C-TPAT: A Company-wide effort

C-TPATJoint Steering

Committe

MAGNEKON S.A. DE C.V.

MAGNEKON S.A. DE C.V.

CONDUCTORES MONTERREY PLANTA SAN

LUIS

CONDUCTORES MONTERREY PLANTA SAN

LUIS

CONDUCTORES DEL NORTE S.A. DE C.V.

CONDUCTORES DEL NORTE S.A. DE C.V.

Successfully Certified and Validated

Successfully Certified and Validated

Successfully Certified and Validated

Successfully Certified and Validated

Best Practices Mention

Best Practices Mention