Logistically Speaking - 2024

Logistically Speaking

A Letter from Sid Brown

Each time I write this message, it allows me to reflect on the past and think about the future. It is hard to believe we are almost a third of the way through 2024, and our industry and organization continue to face changes. The past few years have been challenging due to the ups and downs created by the COVID-19 pandemic. It is amazing that our economy and our lives are still feeling its impact.

A few years ago, consumer spending was at an all-time high as people focused on buying goods and staying home. NFI and our customers saw tremendous growth during this time. However, more recently, people’s spending shifted toward services, like dining out and travel, instead of buying goods that are often held in our warehouses and pulled by our trucks. While 2023 was considered a successful year, it was the first year NFI’s revenues declined in more than a decade.

That said, I am very confident in our business and remain optimistic for the future. Our multiple service offerings create stability for us and a platform for growth. Our plans for the coming year are clear: to focus on growth while being mindful of costs. Each of you plays a crucial role in driving our business forward.

Expanding in new markets

There is much to look forward to. With plans to enter new markets like Memphis, TN, and expand our presence in Savannah, GA, and Canada, exciting opportunities are on the horizon for our employees and customers. From state-of-the-art frozen warehouses in Phoenix, AZ, to innovative transload facilities in Savannah, GA, we consistently push boundaries and explore new territories, just like we have for the past 90+ years.

Driving 5

We also set our 2024 goals, called the “Driving 5.” They are all about growing our business, providing an excellent customer experience, improving how we operate, staying safe, and, most importantly, focusing on our people. This newsletter explains how all employees can contribute to these goals, and I’m excited to work on them together this year.

A culture of caring

Throughout this newsletter, you will see examples of how our employees impact our business and our communities. NFI is committed to caring for our people and helping them grow through our talent development programs, health and wellness offerings, and D&I initiatives. I also encourage you to learn more about NFI Cares, which takes contributions from ownership and NFI employees and gives funds to fellow employees in need.

Thank you for the commitment made every day to serve our customers with premium service. It is what differentiates us from our competition. 2024 will be a challenging year, and I know our employees will respond like always, doing the right thing at the right time and place. Let’s all look forward to a successful balance of the year.

NFI’s 2024 Goals

Our 2024 goals, called the “Driving 5,” are about growing our business, providing an excellent customer experience, improving how we operate, staying safe, and, most importantly, focusing on our people.

Read more in this newsletter to see how fellow employees contribute to these goals every day, and how you can make an impact. Follow the color-guided legend below to see The Driving Five in Action throughout this newsletter:

Expand North American Market Share

Exceed Customer Expectations

Improve Operational Performance

Reduce Risk

Cultivate Our Culture

Remembering Shirlee Brown & Ed DeFilippis

Sid, Ike, and Jeff Brown fondly remember their mom, Shirlee, and former President of National Freight, Ed DeFilippis two individuals who greatly impacted NFI. Scan the QR code to read the note Sid, Ike, and Jeff wrote.

Shirlee Brown

Bernie Brown

Ed DeFilippis

Expand North American Market Share

Grow faster than the industry by taking market share from our competition.

Welcome SDR

Tailored Services, North American Reach

In April 2023, NFI acquired SDR, a Canadian multichannel supply chain company, doubling our distribution footprint in Canada and expanding our network in Toronto, Vancouver, Calgary, and New Jersey. With this acquisition, NFI is now one of Canada’s largest warehousing and distribution companies.

NFI has operated in Canada for 20 years but grew significantly with the acquisition of Dominion in 2016. Glenn Nicodemus, former President of SDR, now oversees NFI Canada Distribution as President of NDC Canada, integrating NFI, SDR, and Dominion and aligning resources for sustainable growth.

SDR’s long-term customer partnerships, like Canada Goose, reflect the team’s commitment to excellence. A loyal customer for ten years, Canada Goose began with 25,000 square feet and needed capacity and expertise to scale with the company’s ambitious growth projections. SDR addressed their service level concerns and allowed

Who is SDR?

Canada Goose to focus on their business growth. SDR also provided technical support for the launch of RFID technology on their outdoor apparel.

Today, Canada Goose occupies a 220,000-squarefoot facility, and SDR services all of their Canadian wholesale, direct-to-consumer, and retail stores. They also recently participated in the One Program (more on page 5), which allowed the team to see what they do every day in a new light.

“The One Program has changed how we receive freight from our suppliers and reduced movement and touchpoints. We post our KPIs in plain sight so everyone understands expectations. There is excitement and a desire to be involved.”

SCOTT BRANDT, SDR OPERATIONS SUPERVISOR

1979

ESTABLISHED

100+ BRANDS SERVED

2M+ SQUARE FEET

800+

EMPLOYEES AT PEAK

A Real Peach

TOP 5

CANADIAN WAREHOUSE PROVIDER

Meet Our Future-Focused Facility in Savannah, GA

Last December, NFI and the Georgia Port Authority opened a one-ofa-kind transload facility in Savannah, GA. This facility connects NFI’s Savannah operations to our larger Southeast network and helps NFI address future port congestion and capacity issues. Because it’s close to the port, it is the premier transload location in the fastest-growing transload market in the country. This means it’s the best place for moving goods for customers from ships to trucks and trains in the country.

(continued on next page)

Exceed Customer Expectations

Be our customers’ provider of choice by anticipating their needs and going beyond great service and execution.

Adding a Little Zestt

A Top-Quality eCommerce Partnership

NFI’s eCommerce success story with Zestt Organics underscores our commitment to offering comprehensive supply chain solutions. Zestt needed a partner that offered supply chain solutions, including picking, packaging, shipping, storage, brokerage, parcel management, and value-added services.

Thanks to NFI, Zestt has experienced a 60% increase in volume year over year during peak season. With NFI’s eCommerce team leading the way, leaders in NFI’s Central Region, DSIT, and local operations have been pivotal in managing the volume surge, which proved difficult with Zestt’s previous logistics provider.

“Thank you from the Zestt team and me for all the hard work and dedication you [NFI] put into making this one of the best holiday seasons ever. We are so grateful for the entire NFI staff and can’t wait to see what 2024 holds.” Benita Goldblatt, Zestt Co-founder and Creative Director.

NFI secured Zestt’s business by offering a flexible and scalable solution, surpassing the capabilities of their previous 3PL provider. NFI’s access to diverse trading partners, marketplaces, and advanced reporting and analytics sets us apart. In addition to the surge in volume during peak season, NFI achieved an impressive 99.7% order accuracy. Congratulations to the eCommerce team!

(“A Real Peach” continued) With the increased speed of getting products through the port to the domestic supply chain, on-site container stacking capability, custom design to handle conveyable and non-conveyable freight efficiently, and extreme security to keep products safe –NFI is evolving how we serve customers. This new facility helps get products from ships to stores quicker because of its proximity to the port and reliance on bomb carts instead of chassis for transportation.

Plus, the yard design helps alleviate customer detention and demurrage fees, creating an environment that delivers more predictable drayage costs.

With a goal to employ 1,000 residents across four shifts, this facility is great for the local economy. It also allows NFI to provide career advancement opportunities to its employees with the best working conditions. Based on valuable employee feedback, a special ventilation system was installed to keep the dock cool, and an exterior break area was installed for facility events. A training center also serves as a regional hub to train over 2,100 NFI employees and help them learn new skills.

Gina Cosby, who just celebrated 15 years with the company, began her career with Cal Cartage as a clamp operator in 2007. After a series of promotions, Gina is now the onsite system expert in Savannah and helped launch the site and train our team on Yard and Warehouse Management Systems. Gina’s success is just one example of the opportunities a building like this creates for the Savannah community. We’re so excited for what’s next.

WANT TO SEE MORE? VIEW OUR “LIFE OF A CONTAINER” VIDEO BY SCANNING THE QR CODE.

Assistant GM, Rebecca Mckee, leads a training in Savannah.

The Stanley Cup is Half-Full

Expanding on Solutions and Building Lasting Relationships

In Sumner, WA, a long-time customer, Bosch, had to move quickly when they learned their current warehouse was closing. NFI discovered a drinkware company also sharing this space that needed a place to go.

Within 48 hours, Andrew Kirkpatrick, Senior Director of Sales, and our proactive sales team mobilized a targeted outreach initiative to the beverage company Pacific Markets International (PMI), which shared the same building with Bosch. PMI sells Aladdin products and a wide variety of Stanley brand drinkware, and it is rapidly expanding. The Stanley brand was initially marketed to campers until their 40-ounce tumbler went viral, sparking interest in the everyday consumer. The brand’s annual revenue skyrocketed from $70 million to $750 million in only four years.

In a strategic move, NFI’s Warehousing team leased the Sumner facility, which allowed PMI to stay in the same building. This location became fully operational on January 1, 2023. Today, we’re not only providing nearly one million square feet of warehousing and drayage services for PMI in multiple states, but our Integrated

Logistics Services team also helped move truckload inventory from Washington to California. Our Port Services team also manages PMI’s container imports in Southern California.

“Our relationship with PMI is a great example of NFI’s diversification strategy,” said Kirkpatrick. “Diversification, especially during economic uncertainty and spikes in demand, is important to building lasting relationships and establishing market leadership. NFI is proud to partner with PMI and offer this level of service.”

This relationship speaks to NFI’s ability to transform opportunities and build diverse customer relationships under multiple business lines, making us a top choice for many customers. Looking ahead, we’re excited about the ongoing opportunities to grow this partnership, including the pursuit of managing PMI’s eCommerce business and growth in Canada. “This partnership is growing, and NFI is thrilled to be a part of it,” shared Kirkpatrick.

Improve Operational Performance

Increase efficiency by introducing productivity improvements and growing profitably.

to Continuous Improvement

NFI’s Finance and Accounting teams consistently look for ways to save time, enhance data security, and make impactful process improvements. In 2023, the team saved 5,478 hours by implementing new software and automation workflows.

The Accounts Payable team also incorporated Artificial Intelligence (AI) to automate invoice processing. This technology helped extract and categorize invoice

data, reducing manual effort and allowing the team to focus on more important tasks. The tool automatically extracts vendor information, invoice amounts, profit centers, and approval workflows.

The F&A team is just one example of how small changes can make a big difference.

Employees gather at our Sumner, WA PMI site

Improving Together as One

Expanding on Solutions and Building Lasting Relationships

What is the One Program?

NFI’s One Program creates a culture where employees feel empowered to change their everyday work, one person at a time. By employing tools and lessons from Lean methodology, teams across NFI are encouraged to implement these principles into practice. From the field to the corporate office, the One Program enables NFI employees to strive for a zero-waste business model, deliver consistent customer value, and build a culture that focuses on continuous improvement.

[Maxx]imizing Productivity and Customer Satisfaction | TJX in Groveport, OH

Nearly two years after the April 2022 One event, the TJX Crossdock in Groveport, OH, still benefits from the One Program’s impact. They’ve maintained improvements by integrating Lean methodologies into their culture. Initially facing challenges with productivity and turnover, the One Program empowered the team to identify and address issues independently. The One Program provided a breakthrough for the Ohio site, which manages TJX accounts, such as Marshall’s and Home Goods. It allowed team members to pinpoint problems and learn Lean fundamentals to solve them independently. They identified issues and created a Lean Transformation Plan (LTP), with team members volunteering to lead projects.

WANT TO LEARN MORE?

SCAN THE QR CODE TO LEARN HOW THE ONE PROGRAM HELPED CARTER’S IN CHINO, CALIFORNIA.

They addressed training gaps by creating Standard Work for all roles. This reduced defects and improved consistency across shifts. They incentivized employees with engagement events to tackle turnover, fostering a sense of community.

Some projects required in-depth review, with dedicated engineers supporting the process. Through routine LTP reviews and ongoing support from engineering, they’ve sustained improvements and tackled new challenges.

Many temp workers transitioned to full-time roles, with individuals rising to leadership positions. Randy Akabuaku, a lead during the One Program, is now a supervisor, exemplifying the program’s impact.

Today, TJX OH has been running with an average productivity of 63 cases per hour (CPH) compared to an average of 34 cases per hour before the One program. The team’s commitment to the One Program’s culture continues to drive success.

Reduce Risk

Take preventive actions to lower risk for our employees, the public, and NFI.

Safety First

Elevating Safety Standards with Focus Five

Congratulations to the Focus Five for elevating safety standards and reducing risk across NFI. In 2023, the Focus Five initiative, in collaboration with the Safety team, tracked five sites across NFI with the greatest opportunities. The goal was to achieve a 15% reduction in the site’s Risk Index, a tool intended to help employees better understand the hazard risks at their sites.

PC 833 in Janesville, Wisconsin, had the most significant risk reduction. Transportation Safety Manager Jeffrey Godwin and Transportation Manager Dannielle Cooper Burkett led the initiative to improve safety habits and achieve better results.

Charged Up and Ready for Action

Sustainability at NFI

At NFI, social responsibility is a core value. That’s why we’re partners in the Joint Electric Truck Scaling Initiative (JETSI) to help make our future cleaner and more sustainable.

Recently, we added 50 Class 8 battery-electric trucks, including 30 Freightliner eCascadia trucks and 20 Volvo VNR Electric trucks that run on batteries instead of diesel fuel, putting us one step closer to becoming the US’s first 100% zero-emission drayage fleet.

Using these electric trucks reduces about 4,400 metric tons of greenhouse gases every year. Over five years, we’ll save almost 3 million gallons of diesel fuel.

Hector Banuelos, Fleet Manager in Chino, shared, “Being one of the pioneering zero-emission fleets in the market is exciting. California is a green state, and we’ve been at the front of the pack since 2019. Our customers are great partners and advocates of the green initiatives that NFI has implemented.”

This is a big step for NFI in using electric trucks for our port deliveries. Throughout 2024, NFI will work with Electrify America and Southern California Edison to put the finishing touches on our electric charging depot and install onsite solar panels and battery storage. When fully up and running, we can charge 7 MW of power at a time—that’s enough energy to power the Empire State Building. There’s even a special maintenance shop just for these trucks. This way, we can keep our trucks charged and ready to go while helping the environment.

New techniques and habits were implemented to reduce the risk of injury, starting with WSL (Wide, Set, Lift) to help people lift heavy items safely. While small, bending the wrong way could cause serious injury. These changes resulted in positive outcomes, particularly in Janesville, where subtle changes in employee movements contributed to a safer work environment.

All NFI sites emphasize warehouse and driver safety through visuals, personal motivators, and regular checkins.

From MakuSafe wearable technology to the Mobile Training Unit (MTU) and on-the-spot check-ins, safety is a core value at NFI. Stay tuned as the safety team rolls out “Focus Ten” in 2024.

“Sometimes, we only need to be shown another way to do things. In Janesville, this group has a manager willing to show them. As a safety leader, I have only been here to collect and share best practices with other groups, and their work has been impressive.”

JEFFREY GODWIN, TRANSPORTATION SAFETY MANAGER

Jeffrey with Driver Matt Obrien at PC 833

Driver Reyes Sanchez gives a demonstration at the JETSI event.

Cultivate Our Culture

Investing in our people is a core value. Hiring, developing, and retaining the very best team will differentiate NFI. We Bleed Blue everyday.

Honk for Howard

TCA Professional Driver of the Year

Congratulations to NFI’s Howard Robinson, the TCA Professional Driver of the Year, who was recently awarded this title at the Truckload Carriers Association’s (TCA) Annual Convention on March 26. This award is one of the highest forms of recognition for drivers and Howard was one of five recipients awarded this distinguished title.

Known for his radiant personality, neverending smile, and conscientious nature, Howard is highly regarded and cherished by his team, customers, management, friends, and family. Howard is always willing to go the extra mile to ensure the job gets done.

Howard has been an NFI driver for 30 years, starting his career with MCO. He was recognized with the Million Mile Award in 2023 and has never had an accident or any violations. Howard is thorough with his pre/posttrip inspections and stresses the importance of safety at every turn.

WATCH A VIDEO ABOUT HOWARD’S EXTRAORDINARY PATH TO BECOMING A PROFESSIONAL DRIVER OF THE YEAR. SCAN THE QR CODE!

As a proud Veteran, Howard dedicates his life to serving others. He and his wife, Judy, began a prison ministry, lead a Bible study at a local nursing home, and are actively involved in their church community. Howard transformed a troubled past and lives by his unwavering commitment to his faith, family, and community. We are so lucky to have him on our team. Congratulations, Howard!

Howard’s family celebrates his well-deserved award.

Howard gives his acceptance speech at the TCA Awards ceremony.

Diversity & Inclusion

Say HOLA to an EVOLVE-ing NFI

In 2023, NFI introduced eight employee resource groups (ERGs) that help strengthen and amplify the voices of our diverse company. We are inspired by the initiatives powered by these groups, including our newest additions: the Hispanic Organization for Leadership Advancement (HOLA) and EVOLVE.

Evelyn Guajardo, Regional Recruiting Manager for NFI and Communications Lead for HOLA, recently attended an Emotional Intelligence and Career Conference to speak with over 350 high school and middle school students from Mexico and South America.

WANT TO JOIN THE 700+ EMPLOYEES ALREADY INVOLVED IN OUR ERG s? MEMBERSHIP IS OPEN YEAR-ROUND TO ALL EMPLOYEES. SIGN UP FOR ONE OR MANY BY SCANNING THE QR CODE.

Evelyn spoke about the transportation industry, NFI, SheDrives, and her experience with HOLA, a group dedicated to spreading awareness of Hispanic and Latino culture. The students were happy to hear how their culture was being recognized and, even better, that an entire employee group was dedicated to celebrating it. Representation makes a difference.

EVOLVE empowers employees to invest in their wellbeing by educating them on physical, mental, and financial health. Using resources available to NFI employees like SupportLinc and Principal, EVOLVE helps employees achieve their full potential personally and professionally. EVOLVE recently invested in a professional consultant to deliver training based on their three pillars of wellness. They also recently launched “Wellness Wednesdays” to connect employees with internal and external resources to help them explore their wellness journey.

Talent Development

Bloom Where You Are Planted

We delight in seeing our employees succeed and provide opportunities for them to further their careers. Check out these Career Success Stories:

“I started as a forklift operator with NFI in May 2014. Thanks to the training and support from my leaders, I was able to finish school and be promoted to Operations Supervisor in January of 2022.”

HECTOR TORRES, OPERATIONS SUPERVISOR | BREININGSVILLE, PA

“I was hired as a Clerk/CSR at NFI in August of 2016. Every experience with NFI contributed to my personal and professional growth. With each position came new challenges that helped me gain knowledge and pushed me to continuously learn and apply my true potential.”

NATASHA FLORES, OFFICE MANAGER | CHINO, CA

Evelyn meets with high school and middle school students in McAllen, Texas.

Awards and Recognition

Disability:IN

Recently, earning a top score on Disability:IN and the American Association of People with Disabilities Disability Equality Index, NFI continues to strengthen its commitment to creating an accessible workplace. Disability:IN serves as the collective voice for advocating change in business for individuals with disabilities.

Weaving An Intricate Webb | A Recipe for Success

Congratulations to Brian Webb, promoted to President of NFI Port Services. Previously serving as the SVP of Distribution in the West Region, Brian’s supply chain experience will bring immense value and a fresh perspective to the team as our Port Services division continues its expansion and growth.

Brian’s secret to success is leaning into your unique personality and making yourself approachable through the natural skills you’ve been given.

WANT TO KNOW MORE ABOUT HOW BRIAN SHOWS UP FOR OTHERS AND HIMSELF? TUNE INTO THE LEADERSHIP EXPERIENCE PODCAST BY SCANNING THE QR CODE.

LX Marks the Spot

Have you registered for NFI’s Leadership Experience program? If not, visit MyLearning to sign up.

Keep in Touch

Is your contact information up to date? Visit My-NFI and follow the steps below to update: CLICK MENU, CLICK MYSELF, REVIEW NAME, ADDRESS, AND ALTERNATIVE PHONE NUMBER

In the Know

Keep up with important updates and information with our weekly email, This Week at NFI.