Pandemic Preparedness for Logistics & Supply Chain

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Tom Miazga- Director of Safety, Quality & Regulatory AffairsRandy 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

CustomerService

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

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Agenda

Mfg. & Distribution

Operating Practices

Customer Service

Hydrite Profile

Raw Materials

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

Operating Practices

CustomerService

Raw Materials

Hydrite Profile

Mfg. &Distribution

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

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Agenda

CustomerService

Mfg. & Distribution

Hydrite Profile

RawMaterials

OperatingPractices

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

Customer Service

Operating Procedures

Hydrite Profile

RawMaterials

Mfg. & Distribution

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

• 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

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

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PROVIDING CREATIVE SOLUTIONS

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