twi newsletter - the expedition - june 2014

THE EXPEDITIONTheodor Wille Intertrade | June 2014 Issue

THEODOR WILLE INTERTRADE │ JUNE 2014

ABOUT US

INTRODUCTION Welcome to the June 2014 issue of the Theodor Wille Intertrade (TWI) newsletter,

The Expedition, dedicated to providing you with information about our business and the services we provide to our customers. Published every quarter, this newsletter contains industry news throughout the Government, Military, and Energy sectors TWI supports. In addition, the newsletter highlights company success stories as well as articles covering information technology, compliance, and recent company events. We hope that this newsletter will provide you with a better understanding of who we are and the supply chain solutions we provide worldwide.

Founded in 1844, Theodor Wille Intertrade (TWI) provides premiere end-to-end supply chain solutions to Government & Industrial sector customers worldwide. With offices in the US, Germany, Switzerland, UAE, Turkey, Iraq, and Kazakhstan, we provide services and expertise across all segments of the supply chain, including logistics and distribution, procurement, program management, information technology, and customer service.

To learn more about TWI, please visit www.twipv.com.


LEADING WITH COMPLIANCE

These investments codify and help bring to the forefront who we are as individuals and as an organization: trustworthy, knowledgeable, transparent, and ethical. These are key business attributes that cannot be bought or fabricated, yet they are highly desired by our customers in both the government and commercial sectors. Often during customer meetings, I like to lead off by providing a copy of the TWI COBEC and talk passionately about our commitment to our compliance program. This commitment resonates with customers and immediately puts us in a low risk, high value category from their perspective. I am often greeted with gratitude and sincere appreciation from our quality customers for this emphasis. This commitment is further evident in our behavior where it is clear that these are not just words or a template for our company. Compliance is deeply rooted in the Core Values that we established for our company, and it is further enhanced by our differentiators. In many companies, a compliance program is an afterthought or an additional duty. We “walk the walk” when it comes to compliance and ethics. We are extremely proud of our individual and collective investments in creating a truly robust and differentiating compliance program.

Compliance continues to be an engrained part of our culture at TWI and Safar, which is palpable to both our customers and suppliers. After receiving my

annual Code of Business Ethics and Conduct (COBEC) refresher training with the rest of the TWI Senior Management team a few weeks ago, it dawned on me that our investments in our Compliance program are similar to the investments we have made in our other differentiating systems: people systems, financial management systems, supply chain systems, and Merger & Acquisition systems.

Jake FrazerChief Operations Officer


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TABLE OF CONTENTS06 Major Energy Event Provides Global Opportunities

08 TWI Surpasses $10 Million in Cost Savings for GSA Contract

10 Safar Hosts Key Suppliers at Inaugural Sales Workshop

12 Customers Explore New Safar Facility in Kazakhstan

13 Safar Offers Tested Chemical Solutions in Iraq

14 DLA Captains of Industry

14 BuildExpo africa

15 International Franchising Expo

15 IADC World Drilling Conference & Exhibition

17 CONTACT US

These events are the pinnacle of conferences and provide the opportunity to meet with industry leaders and see innovative and industry-leading products and services.

TWI was invited to participate in DLA’s second “Captains of Industry” roundtable focused on Subsistence operations held at DLA headquarters in early May.

TWI’s GSA Hub in Almaty, Kazakhstan surpassed the $10 million mark in transportation cost savings.

TWI participated in the 17th edition of the BuildExpo Africa conference held in Kenya.

Safar successfully completed the first edition of its Supplier & Sales Workshop.

Held 19-21 June at The Javits Center in New York City, the event brought together thousands of entrepreneurs and business owners.

To kickoff the opening of the new location, Safar organized and hosted a customer showroom exploration event.

TWI and Safar Oilfield Services recently participated at the IADC World Drilling Conference and Exhibition in Vienna, Austria.

Safar Oilfield Services provides unique chemical solutions to the vast H2S challenges faced in Iraq.


MAJOR ENERGY EVENT PROVIDES GLOBAL OPPORTUNITIES

Founded in 1969 and held annually in Houston, Texas, OTC brings together tens of thousands of attendees and exhibitors to showcase the newest products and services available to the global market. It is also where oil and gas professional and leaders can meet to exchange ideas and opinions to advance the industry both technologically and environmentally. The attendance for 2014 hit a 46-year high of 108,300, marking the highest total in show history. In addition, this year’s event hosted over 2,500 companies representing 43 countries, including 163 new exhibitors.

For TWI and Safar Oilfield Services, we are committed to developing our relationship with not only our customers but with our extensive supplier base. OTC provides an excellent opportunity for us to meet and develop our relationships with key suppliers throughout the oil and gas industry. Throughout the four day event our senior leadership team met with a wide range of suppliers to discuss pivotal business areas, such as products, news, trends, and supply chain.

By establishing strong relationships with each of our suppliers and service providers, we are able to provide our global customer base customized and scalable products and solutions around the world. Whether you need a butterfly valve in Oman or a consolidation hub established in Atyrau, TWI and Safar Oilfield Services provide our customers smart, tested, trusted solutions that are supported by a dependable, global supplier network.

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In each and every industry, there are always those select events that everyone marks on their calendar. These events are the pinnacle

of conferences and provide the opportunity to meet with industry leaders and see innovative and industry-leading products and services. For the oil and gas industry, it is the Offshore Technology Conference (OTC).


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TWI SURPASSES $10 MILLION IN COST SAVINGS FOR GSA CONTRACT

Technologically speaking, the Almaty logistics hub is a showcase example. The FASCOR Warehouse Management System (WMS), the JD Edwards financial database, and ExPRSS are smartly interconnected, ensuring easy tracking, updated delivery status, and new order projections in only a matter of a minutes – and all online.

We should also draw special attention to TWI’s highly interactive tool QlikView. With just

a few clicks, the user can build a number of sophisticated and highly informative comparative tables and charts on all aspects of our company’s activities, whether financial, operational, or vendor-specific. But what makes it truly invaluable is that our customers can access QlikView and get a highly transparent real-time look at what is happening with their orders.Such technological advances are only possible through a process of continual improvement. These improvements are derived from the on-the-ground experiences of our professional staff in Kazakhstan and a relentless focus on evolving our processes to improve operations and provide better customer service. We do not just invent disconnected features; we provide solutions to the real needs of our staff, which are aimed at providing the best value to our customers. This is what makes our people special. Our team in Kazakhstan is in continuous dialogue with other TWI departments across the world, exchanging various ideas on how to improve systems to provide our customers customized

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In May 2014, TWI’s GSA Hub in Almaty, Kazakhstan surpassed the $10 million mark in transportation cost savings in support of

our General Services Administration (GSA) Supply Chain Integrator contract. This has been made possible through the unique mix of the right people, processes, and culture that can be observed not only at our Central Asia Procurement and Logistics Integration Center (CPLIC), but throughout TWI’s worldwide operations.


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supply chain solutions. Through this Big Picture approach, each employee looks outside of their responsibilities and is ready to engage in continuous dialogues in order to provide innovative, scalable solutions.

Our GSA Hub team uses these systems extensively to ensure timely planning and projection of orders that arrive from our Dubai Procurement and Logistics Integration Center (DPLIC) for delivery and consolidation to the Hub and also for outbound deliveries. Our guiding principle is to plan all orders in advance according to contractual Promised Delivery Dates (PDDs) and keep precise track of when each order will be delivered to the Hub, how they will be consolidated, and when they will be assigned to a Freight Forwarder (FFW) and shipped. Detail is the beauty of our systems; precision is our strength.

We should never forget that our staff operates in a difficult environment different from many developed countries. Corruption, non-compliant behavior, and non-transparency are everyday challenges and risks that we face as an organization. For this we have three solutions: compliance, compliance, and compliance.

We are proud of our global reputation for ethical business practices, and hold ourselves – as well as the suppliers and services providers we work with – to the highest ethical standards.

At TWI, we continue to be proactive in approaching any issues regarding low-quality products from our vendors. From the onset of our relationship with each vendor, we provide written and in-person training to ensure our suppliers are aware and understand our high packaging, labeling, and financial standards. After completing the training, all participants sign a Vendor Supplier Checklist which is later uploaded onto an electronic form in our systems for historical filing. Through TWI’s training and support, our supplier base is providing well-packaged, timely deliveries which ensure we meet our customers’ high standards.

PROCESS OVER 11,000 CUSTOMER ORDERS

DELIVERY OF ALMOST 11,000 PALLETS

OVER $10.1 MILLION IN TRANSPORTATION COST SAVINGS

DELIVERY OF OVER 700 TRUCKLOADS OF CENTRAL ASIAN PRODUCTS TO GSA CUSTOMERS IN AFGHANISTAN

The TWI GSA Hub by the numbers


SAFAR HOSTS KEY SUPPLIERS AT INAUGURAL SALES WORKSHOP

In recent weeks, Safar successfully completed the first edition of its Supplier & Sales Workshop. Held April 8-10 at our Dubai location, the event provided an ideal opportunity to bring together the Safar sales team & several key suppliers to discuss industry trends, sales processes, and best practices. As we continue to develop our sales processes, the Safar Sales & Supplier Workshop

(SSSW) offered an invaluable period of time for the global sales team to come together and collaborate on all aspects of the sales spectrum. Areas of discussion that were covered included: customer service, sales best practices, & customer and market opportunities. Through various working sessions, the sales team was able to work together to facilitate further growth in multiple high-priority areas of the business.

Another take away from this year’s event was the continued relationship development with several key suppliers in the industry. Each supplier session offered a step to continue building our supplier management program as well as highlight areas of risk and opportunity for each organization. The sessions also allowed both organizations to discuss product information, past performance, and industry trends.

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At Safar, we are committed to establishing and developing transparent, collaborative, and successful

relationships with our extensive supplier network. By focusing on a well defined systematic process, working closely with suppliers, and identifying risks and opportunities, we are able to provide our customers high quality products and unique solutions throughout the oil and gas industry.


CUSTOMERS EXPLORE NEW SAFAR FACILITY IN KAZAKHSTAN

To kickoff the opening of the new location, Safar organized and hosted a customer showroom exploration event. The two-day event offered a unique opportunity for local customers to visit our facility, meet the Safar team, and explore the comprehensive list of products that we offer. In addition, customers were provided an extensive tour of our warehouse, giving them a firsthand look at the large quantity of inventory

that we have stocked on the ground to meet their growing demands.

During the event, as another way to continue learning more about our customer base, Safar conducted a brief survey with attendees using iPads. The survey offered customers an opportunity to highlight the products that they are not only purchasing, but prefer Safar stock locally. It also allowed customers to provide invaluable feedback on our products and services which can be used to further develop our processes and customer relationships. After concluding the survey, the Safar team presented the new web shop, taking customers through the interactive and convenient online tool to further enhance Safar’s innovation and forward thinking.

With almost 100 customers in attendance throughout the two day event, Safar was able to extensively promote and provide an inside look of our operations to our customers throughout Central Asia. We would like to thank all of those that supported, managed, and attended the event as it was a big success. None of this would have been achieved without the hard work and dedication of everyone involved.

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In April 2014, the Safar team in Kazakhstan established a new office and warehouse facility located in Aktau. Through this

new facility, the Safar team is able to expand its operations and our solutions offering to customers through additional office space and increased warehousing capabilities. Another highlight of the new location is a product showroom that showcases our high quality oilfield supplies and equipment for our growing customer base. Throughout the showroom, Safar displays our extensive product line offering, from personal protective equipment to valves to oilfield tools. To further enhance the showroom, a wall-mounted TV provides continuous videos and images of both Safar and supplier products and various production information.


”SAFAR OFFERS TESTED CHEMICAL SOLUTIONS IN IRAQ

Through a partnership with United Technical Services (UTS), Safar Oilfield Services provides unique chemical solutions to the vast H2S challenges faced in Iraq. As the Kurdistan region of Iraq continues to combat the challenging issue of H2S, Safar now offers and supplies H2S Scavengers and related production chemicals as well as provides customers with critical on-the-ground technical support and expertise.

These innovative chemical solutions allow oil companies to remove H2S from affected crude, which improves production operations as well as reduces potential gas exposure risk to both the crude processing station and personnel on site. The dangers of H2S are well known across the oil and gas industry in the Kurdistan Region of Iraq and require the industry to continuously adapt special safety measures throughout the value stream. Through our partnership with UTS, Safar offers a tailored, premium solution that surpasses these growing safety measures.

Our partnership with UTS will be a unique synthesis that incorporates the added value of both companies. UTS provides technical support and expertise while Safar Oilfield Services provides timely logistics support, warehousing, and personnel on the ground. Through our new chemical solutions, Safar Oilfield Services showcases our commitment to supporting our vast customer base in remote locations while ensuring the region’s development and longevity. Furthermore, the offering expands our scope; providing global customers in the upstream oil and gas industry with local operational support from beginning to end.

Safar now offers and supplies H2S Scavengers and related production chemicals as well as provides customers with critical on-the-ground technical support and expertise.

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The latest market appraisals confirm that oil companies are preparing for oil production throughout the Kurdistan region of

Iraq. Unfortunately, Kurdistan oil producers are finding high levels of hydrogen sulfide gas (H2S) in their crude oil. As part of its continued support of Iraq’s oil and gas market, Safar Oilfield Services brings innovative and tested solutions to this challenging environment.


BUILDEXPO AFRICA

DLA CAPTAINS OF INDUSTRY

TWI participated in the 17th edition of the BuildExpo Africa conference, held 2-4 May in

Nairobi, Kenya. BuildExpo Africa hosts companies from around the world operating in markets such as: building and construction, equipment and machinery, interiors and lighting, tools and hardware, mining, safety, and air conditioning. The three day event provides an ideal forum for international companies to showcase products and services to the local African market as well as discuss regional opportunities.

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TWI was invited to participate in the Defense Logistics Agency’s (DLA) second “Captains of Industry” roundtable

focused on Subsistence operations held at DLA headquarters in early May. The event brought together leaders from DLA Headquarters, DLA Troop Support, DLA Distribution, and Subsistence Prime Vendors from all over the world. CEO Patrick Malcor and VP of Program Support, Jay Scoggin participated in the event where senior representatives of several overseas prime vendors companies described cost-cutting initiatives they believe can further help the Agency achieve a savings goal of $13 billion in six years.

Patrick offered three recommendations to DLA that we believe could result in significant cost savings for the US Government without any loss in quality of service. First – increase the use of Central Asian food suppliers for support in Afghanistan. TWI has identified many qualified suppliers capable of providing high quality products at significantly less costs compared to similar items being sourced in the United States. Second – explore the possibility of going to a single prime vendor contract in Europe versus the dual zone concept in place today. Economies

of scale in a single zone could yield cost savings and decrease the amount of contractual oversight required by DLA. Third – DLA should explore the possibility of consolidating food supply chains in Europe. For example, is there really a need for the Defense Commissary Agency to maintain their own warehouses in Europe when they could be combined under the DLA Subsistence Prime Vendor contract?

DLA Director, VADM Mark Harnitchek was very interested in TWI’s suggestions and directed his staff to explore each one of them for further analysis. TWI’s participation in this eventand the input we provided was another great example of the collaborative relationship we have with DLA.


INTERNATIONAL FRANCHISING EXPO

IADC WORLD DRILLING CONFERENCE & EXHIBITION

EVENTS

15TWI highlighted its continued focus on

expanding into new markets by attending the 2014 International Franchise Expo.

Held 19-21 June at The Javits Center in New York City, the event brought together thousands of entrepreneurs and business owners as well as over 450 proven franchises to discuss domestic and international investment and expansion opportunities. In addition, there were 70 insightful seminars that offered attendees further support and guidance on establishing and expanding a formidable franchise.

TWI and Safar Oilfield Services recently participated at the International Association of Drilling Contractors

(IADC) World Drilling Conference and Exhibition in Vienna, Austria. Held 18-19 June at the Austria Vienna Center, the event brought together industry leaders to network and discuss industry trends and operations.

Throughout the event there were highly engaging presentations covering various areas of the oil and gas industry, including market outlook, drilling trends, and emerging technologies. The event also provided an ideal opportunity for us to meet with key suppliers and customers to continue developing our relationships and discuss opportunities.


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For additional contact information please visit our website at www.twipv.com or contact TWI Communications at [email protected]

CONTACT US

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twi newsletter - the expedition - june 2014

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issuetheodor wille intertrade

twi cobec

supply chain systems

program management

differentiating systems

quality customers

energy sectors twi

financial management