Logistically Speaking Fall/Winter 2014

Fall/Winter 2014

LOGISTICALLY SPEAKING Introducing The NFI Strategy Focus on the Customer From Sid Brown, CEO Your favorite sports team needs a strategy to be highly competitive – NFI is no different. Teams and organizations without a strategy often lose their competitive advantage. With a clearly defined strategy, we at NFI can prioritize how we invest our time and money, highlight characteristics that differentiate us from our competition and, most importantly, focus on how we can best serve our customers.

Strategy helps us win!

You may be asking yourself: “If we became a billion dollar company without a strategy, why do we need one now?”

The answer is that NFI has always had a strategy, and its growth over the past few years is a direct reflection of this strategy. This year we are making a concerted effort to communicate our refined strategy to the organization and reinforce its key principles. Why? So that all of us at NFI can pull in the same direction and support the strategy that is going to fuel our

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NFI Strategy NFI Joins the World of E-Commerce

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success going forward. Furthermore, as you become accustomed to the direction of NFI, you will recognize that the many talented NFI associates embody this strategy and live it each day.

As you can see in the illustration, the foundation of our strategy is built on four main pillars which all revolve around the customer (both internal and external).

The reasoning for customer focus is simple, if we do not listen and adapt to our customer’s needs, they will choose another provider.

Whether you are an operator, driver, customer service rep, or accountant, we need to think about the customer in everything we do.

By listening to our customers we will understand their complex issues, and in turn come up with creative solutions to solve problems.

These solutions will spur our growth and drive our success.

(Continued on Pg. 2)

The TB2 Foundation Samanatha Lucas Memorial Fund Safety Celebration NFI Intermodal NFI Around Town

6 It’s All About the Driver Park at Florence Crossings 7 NFI NFI 2014 Driver & Forklift Rodeos 8 Driver Referral Program 1

Introducing The NFI Strategy (Continued from Pg. 1)

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If we do not listen and adapt to our customer’s needs, they will choose another provider.

High Level Roll Out Town Hall Kickoff Corporate Communications Collateral Distribution Small Group Meetings

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Supporting our customer-centric focus are the four main pillars which drive our strategy: 1. Create customer intimacy by understanding the supply chain needs of the customer and address opportunities with the customers in a friendly and entrepreneurial way.

2. Offer end-to-end capabilities where customers can pick and choose services that best meet their needs. We will not be everything to everybody, but we will have a suite of services to meet our customer demands. Our expansion into the non-asset business can be seen as a reflection of this.

3. Provide consultative-engineered solutions by addressing more than the specific problem that the customer presents.

These solutions prove our value to our customers and differentiate us from those that sell a standard service. By looking at issues differently, NFI will be able to further establish itself as a trusted partner and a go-to problem solver.

4. Create a culture of continuous improvement to help us be efficient and competitive in the marketplace. We rolled out our branded Performance Excellence program, the NFI continuous improvement initiative, which will expand over the next few years.

Even with a robust strategy, you may ask “What truly differentiates us?” It is our people. That is why our framework is encircled with personal traits of NFI employees. You, the NFI family, are tasked to execute this strategy. We are proud to have the most talented, motivated, passionate, empowered, and entrepreneurial employees. On multiple occasions our customers have used the word “entrepreneurial” to describe us.

We take great pride in encouraging our associates to run this business like it is their own. We have a culture that empowers our managers to make decisions, ownership that continues to invest and reinvent the business, and leadership that is fully vested in our success.

Over the next few months, we will be devoting time and resources to the strategy roll out. We ask that you take the time to participate in sessions, engage with your managers, ask questions, and challenge our strategy. Think about your and your team’s day to day activities and how these actions support our strategy. What changes could you make to better support the strategy? Just like any great sports team or business, we will continue to tweak our strategy and adjust to the changing environment. Continue the hard work in executing this strategy, and as always, we are deeply grateful for your dedication to the NFI family.

NFI Joins The World of E-Commerce Orlando, FL & Kutztown, PA

by Blair Clarke, SVP Distribution E-commerce is quickly becoming the most popular way to buy and sell goods to a large, widespread customer base. With online retailers like Amazon.com and Alibaba, merchandise is available to be purchased on a global scale, and shopping is convenient with websites running 24-hours a day. This huge change in the way goods are being sold means a lot to logistics, transportation, and distribution companies like NFI. Initially a worrying task for most third-party logistics providers, NFI threw all e-commerce doubt aside in 2014 when taking on the challenge of managing operations for the biggest e-retailer in North America, Amazon. NFI completed two start-up facilities for Amazon in a 6-week time frame during the summer of 2014. The distribution centers, located in Orlando, FL and Kutztown, PA, handle inbound warehousing and the outbound shipment of non-conveyable products.

The non-conveyable products that NFI distributes on behalf of Amazon are large or unusually shaped items that don’t fit in a typical sized box and cannot be put on an automated sortation system. Some examples of non-conveyable items include ladders, hot tubs, furniture, shovels, or home improvement supplies like bathroom fixtures or building materials. The storage and handling of these types of items is not a core competency of Amazon, who excel at storing and shipping smaller, easily conveyed packages. NFI has the experience and talent in managing distribution centers for these large items that need to be moved with pallet jacks and forklifts.

The main challenge of distributing non-conveyable items is the complexity and diversity of the products. When so many different items are being stored, racking needs to change to fit products, and outgoing orders need to be analyzed to find out what the best way to ship them is. NFI works closely with Amazon when there is a need to reconfigure.

With experience outside the world of e-commerce, NFI can be flexible with adapting new modifications.

The 3PL Operations and Integration teams received their first Amazon unit on May 14th 2014 at 7:20 PM, a Whirlpool 4.4 cu.ft. capacity all fridge.

Teamwork from cross-functional groups was also crucial for these start-ups. With hands-on representatives from IT, HR, Loss Prevention, Engineering, and Operations working together, the project had a core group of decision makers driving each process. Each representative involved was enthusiastic, committed, and knowledgeable about the business. These start-up teams determined what the processes should be and then actually went into the field to implement them with their colleagues.

NFI prides itself on a continuous improvement focus. When we began work in e-commerce, we knew that this piece of strategy would be crucial to our success in an area that is quickly evolving. The implementation of the Manhattan system, a warehouse management system (WMS) being used at both Amazon locations, helped NFI maintain a high-level of excellence. With this new WMS all orders are fulfilled efficiently and strategically.

Jodi Lavender, the General Manager for NFI’s Amazon operation in Orlando, has a great analogy for how NFI has kick-started e-commerce operations. “It’s like taking that first dive into a pool after a long winter,” he says. NFI was prepared for the jump, and made the leap. Hitting the water was cold, but once we made it in the pool, it felt comfortable. NFI took on e-commerce headfirst this year, and we’re proud to say that moving forward, we’re up for the challenge.

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The TB2 Foundation

by Steve Aubertine, Logistics Supervisor NFI Driver, Anthony Barksdale, (Merrimack, NH) has built a foundation in honor of his late son, Tony Barksdale II, who passed away in 2013. A Boston University Engineering student, Tony NFI Driver, Tony Barksdale I, with his son, Tony Barksdale II, at his high school graduation. was known for his outgoing personality and interest in basketball and philanthropy. As a college freshman, he planned to continue his studies in computer engineering and aeronautical design. The TB2 Foundation raises money annually for a scholarship in Tony’s name, presented to a High School senior who has been accepted to Boston University, will be pursuing an engineering degree, and demonstrates an interest in humanitarian activities. To find out more about the TB2 Foundation and how you can contribute, visit www.TB2Foundation.com.

Samantha Lucas Memorial Fund

by Scott Benton, CIO

Rodney Lucas, Director of Application Development and Integration in NFI’s IT department, lost his daughter Samantha Lucas to a car crash in March of 2013. At the age of 19, Samantha was a very talented artist and she understood that drive is the key component to success. In their daughter’s name, Rodney and his wife, Cynthia, have set up a charity organization to provide Sam at the beach scholarship money to a local High School student that shows promising artistic abilities. “We’re thrilled that we have the opportunity to keep our daughter’s memory alive,” say Rodney and Cynthia on the foundation website, set up to raise funds and promote the cause. The Samantha Lucas Memorial Art Award is presented annually to a promising graduating artist who is pursuing a career in art. To find out more about the Samantha Lucas Memorial Fund, please visit www.samanthasfund.com.

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Safety Celebration Muskogee, OK

by David Bailey, HR Manager In June of 2014 the NFI Muskogee facility held a Safety Celebration for all employees and their families at a local park in Muskogee, OK. RVP, Patrick J. Byrnes, and Human Resources Director, Janeth Villalobos, also attended. The Muskogee facility has gone over two years without an OSHA recordable injury and has one shift that has gone over 8 years without an injury.

Also recognized were 34 employees who had perfect attendance.

The event was held over a two day period allowing both weekday and weekend shifts to participate. The management team, led

by General Manager Troy S. Bell, cooked hotdogs and hamburgers and served the employees food. Games including volleyball and horseshoes were played.

Employees from Muskogee, OK with Perfect Attendance.

Share your News with NFI by emailing communications@nfiindustries.com Follow company news on social media

NFI Intermodal Getting on the Right Track

by Don Aiken, SVP Intermodal Here at Intermodal we're excited about what's happening in our business. The Intermodal industry in North America continues to grow dramatically. With growth in the industry, opportunities abound for companies that are prepared. Your Intermodal division is working hard to meet the challenges that growth brings.

Our division serves customers who want to move goods in 53 foot containers on the railroads. Many of our customers utilize our state-of-the-art refrigerated containers when moving their temperature-controlled freight. Whether it's hard frozen products at -10 degrees or products that need to be kept within a narrow temperature range, we get it done. We also serve the broader dry Intermodal market through our participation in container programs on the UP and CSX railroad. We are a "Service First" provider of Intermodal. Our customers expect great service and NFI Intermodal delivers it!

Over the next few months, Intermodal will continue to strive for greatness by setting ourselves apart. Some of the initiatives that you can expect us to focus on are listed here.

• Grow our top-line revenue by diversifying the customer base in both the dry and temperature controlled segments.

• Provide top-tier service to our existing customers setting us up to take advantage of organic growth with these customers.

• Increase our use of NFI drivers to execute our pickups and deliveries.

• Cost controls in other areas such as fuel, equipment maintenance and chassis cost per load will also help us deliver on our commitment to ensure Intermodal is profitable.

Your Intermodal team is passionate about winning! We are committed to delivering results that meet or exceed our competitor set. Our customers want to reward us with more freight and we're getting the table set to make it ours. Our best days are ahead of us.

NFI Around Town Check out these photos of NFI in the field, sent in by Facebook followers.

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It’s All About the Driver Driver Retention

by Joe Roeder, President Drivers are the most important part of any transportation organization. At NFI, our drivers are the heart of the company. We value and care about our drivers and realize that their daily contributions keep NFI running. Starting at the top of the organization with our ownership, and working down to our management teams in the field, everyone involved is in charge of caring for the wellbeing of NFI’s driver workforce.

This top-down caring is what sets NFI apart from other companies in the industry where driver turnover continues to run near 100%. This in an industry that is driven and shaped by a worsening shortage of professional drivers, and NFI works hard to stay ahead of that standard to succeed.

Without drivers our organization is feeble, but with a strong driver workforce we can flourish.

Hiring new drivers is enormously difficult and will only get harder. Because of this, we choose to focus much of our energy on retaining valued drivers. Our approach includes a Driver Retention department whose sole function is to review the driver work experience that NFI provides. This review of the Driver’s work experience includes what we call the "Driver Touch Point" program. This program is designed to frequently review every interaction point with our drivers to ensure we are providing the best work environment and positive experience that we can. Examples of these touch points are equipment, pay, benefits, relationships with management, home time, and schedule.

We continue to focus tirelessly on providing the best work experience for our drivers. As Sid Brown once told me, "We are a family business and our drivers are a very big part of our family, they need to know that! At NFI we take care of each other.” We care about our drivers and show it daily through the efforts of our owners, leadership team and all of our associates. We realize that our drivers are what "drive" the success of the transportation business line.

Let’s all take a moment to appreciate just how much drivers mean to us. Right now, while you’re at your desk or working a warehouse floor, there are truck drivers out on the roads delivering goods to customers and fundamentally supporting this company. The next time you meet an NFI driver, give them a handshake and say thanks for a job well done. No matter the day, the time, or the weather, our truck drivers are working hard to keep this company moving!

If you have feedback about your driver experience, please reach out to Al Almo, Director of Driver Retention via phone (508-922-1492) or email (albert.almo@nfiindustries.com).

To all of our drivers, thanks for what you do and be safe down the road.

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NFI Park at Florence Crossings Real Estate Awards

by Jeff Brown, President 2014 has been an exciting year for the NFI Real Estate team. Construction of a new distribution center for Ocean Spray and Amazon in Allentown, PA was completed in May, a groundbreaking in Oldmans Township, NJ marked the start of a building for Five Below, and NFI Park at Florence Crossings has received outstanding recognition for its contribution to business in NJ. NFI Park at Florence Crossings is a business park totaling 1.65 million square feet of development opportunity located just off the NJ Turnpike. The park is home to facilities developed by NFI on behalf of Subaru of America and Express Scripts.

The two buildings, which total almost 765,000 square feet, offer expansion opportunities for each tenant and have created approximately 750 full time jobs and nearly 675 construction-related jobs.

NFI and Subaru broke ground in 2012 at NFI Park.

In June of 2014 NFI was proud to receive the New Jersey Business & Industry Association (NJBIA) New Good Neighbor Award for NFI Park at Florence Crossings. The NJBIA recognized the complex for bringing substantial economic growth and development to the state of New Jersey.

Also in June, NFI won the Industrial Deal of the Year Award from the NAIOP, a leading commercial Real Estate Development Association. NFI’s environmental initiatives and exemplary customer service on completing facilities for the unique needs of Subaru of America and Express Scripts led directly to this important recognition.

NFI’s Real Estate service offerings continue to complement our supply chain solutions. Having the in-house capabilities to source, develop, and construct differentiates us from our competition.

NFI 2014 Driver & Forklift Rodeo Season

by Al Almo, Director of Driver Retention Our 2014 Rodeo season was filled with tight competition, tiebreakers, and a lot of fun around the country. We held five Regional Rodeos, starting in Waxahachie, TX in May and finishing in Jacksonville, FL in late September.

Our Rodeos consist of competition for both our Forklift Operators and Tractor Trailer Truck Drivers.

The top three winners from each regional competition compete in a "Company Specific" Grand Championship. In all we had over 200 contestants compete across the country and welcomed over 2,000 attendees at the events.

This year's Grand Championship Rodeo was for our Forklift Operators and was held Saturday, October 11th at the NFI Corporate office in Cherry Hill, NJ. Next year will be the Truck Driver Grand Championship and will include the top three regional winners from 2014 and 2015 competitions.

This year’s Grand Championship winner was Bruce Parish from our Port Wentworth, GA facility. Bruce took home the Grand Prize of $20,000 and was so excited when his name was announced that he was literally jumping for joy! Bruce has a newborn baby girl at home who was his motivation on winning the prize. The first runner-up was Nicholas Sombrano from Fort Worth, TX, who received $5,000, and the second runner-up was Jay Feipel, who came all the way from Chino, CA and received $2,500.

Winners of the Forklift Rodeo Grand Championship in Cherry Hill, NJ

We want to congratulate all of our Forklift Operators and Truck Drivers that competed this year. See you all next year at the Rodeo!

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Driving Success Forward

D E HIR $

& How You Can Help For companies like NFI to be successful, we need Drivers to deliver goods for our customers safely.

Reliable Drivers are vital to enabling us to keep our word and exceed customer expectations.

Over the past few years, NFI has grown steadily through acquisitions and by adding new customers and expanding our business with existing ones. At the same time, the market for safe, qualified drivers has become much more competitive. The demand for drivers greatly exceeds supply.

In the last five years, NFI’s driver workforce has grown by over 500 drivers, many of whom were referred by NFI employees. Driver referrals make up 30% of our employee-base, and in 2013, NFI awarded nearly $600,000 in Driver referral bonuses. An employee who refers a Driver to work at NFI can earn up to $4,000!

Here’s what you can do to grab your referral bonus this year.

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1. Refer any Drivers you know by having them apply online at www.nficareers.com.

2. Tell them to enter YOUR name on the application where it asks, “How did you hear about us” or “Do you have any Friends/Relatives working for NFI.” That’s it! Once the candidate is hired, you will receive up to $1,000 (pre-tax) after the new employee completes 30 days of employment.

When the employee completes 90 days of service, you will receive up to an additional $1,000 (pre-tax). And in some areas of the country, you can receive up to a total of $4,000.

As NFI continues to grow and additional start-ups begin to operate, we need to have Drivers behind the wheel, delivering the goods. We’re looking for great people like you to join the NFI family. If you know any Drivers, be sure to refer them!

Learn more about the Referral Program on My-NFI.com