Ferguson Fire & Fabrication

1. FFFWEST Managers’ Meeting Monday, October 28th 2013 Ferguson Fire & Fabrication

2. Topics… • Credit Memos • Freight Billed vs. Freight Paid • APC Communication Change & Discrepancies • Mandatory Manager Legal Training Program • Location Self Assessment Survey Deadline – 11/15/13

3. FFFWest Managers’ Meeting 10/28/2013 CREDIT MEMO S YEAR-END RECAP

4. Total Credit MemosIssued FY 2012-13 • # Credit Memos issued= 3,759 • 336 less than 2011-12 (-7.53%) • Total Credits Amt ($) = $(1,869,910.82) • Excludes Vic SPF True-up credits • Gross Profit ($) = $(497,209.53)

5. “Our Fault” CMs Issued FY 2012-13 A total of 1,229 “Our Fault” Credit Memos were issued in 2012-13 ***15.9% decrease*** (234 less from 2011-12) 32.7% of all Credit Memos issued were “Our Fault”.

6. Credit Memo - Best Practices • Be clear on the reason code. • Be precise when affecting inventory. • Communicate as much information as it takes to give the approver the confidence to Approve/Deny the credit.

7. FFFWest Managers’ Meeting 10/28/2013 Freight Billed vs. Freight Paid RECAP

8. Freight Billed vs. Freight Costed FY 2012-13 • 2.29% Increase in AP Freight Paid (FY2011-12) • 11.24% Increase in Freight Billed to Customer (FY2011-12) • -17.99% decrease in the Freight Paid vs. Freight Billed (FY2011-12)

9. Freight Billed vs. Freight Costed In a Perfect world… FY2011-12 Freight Double Costing = $25,967.13

10. Freight – Best Practices • Tag purchase orders to orders. • Work the Freight Verification Report EVERY week. • Use Freight Rate Shop (FRS) when quoting freight or to determine outbound shipping charges. • Use the NON-WMS INBOUND FREIGHT/OUTBOUND SHIPPING BILLING/COSTING for more Best Practices.

11. FFFWEST Managers’ Meeting 10/28/2013 APC Communication Change & How-to Respond Effectively

12. Why the Urgency to Respond? • Purchase Discounts $ (797,022) 2012-13 YTD (G/L 6050) • Victaulic = 2% discount if paid by the 8th • Afcon = 3% discount if paid with in 10 days • Tyco = 2% discount if paid within 30 days • Cash discounts taken for prompt payment of vendor invoices. • Includes 2% discount from the DCs’ based on product codes; recorded at time of purchase.

13. SAC will now send specific request types at one time through Outlook. For example, an e-mail will only contain the first requests, another will contain all second requests and so on… • This e-mail contains all first requests on an Excel Spreadsheet attachment.

14. The attached spreadsheet will have all of the first requests and can be filtered. You may need to expand the columns width to see the data by “double-clicking” on the line between the columns.

15. To see the entirety of the AP comments you will need to use either ‘POI’ or ‘API’.

16. Responding to APC Discrepancies – Using Purchase Order Inquiry(POI) • Go into POI. Pull up the PO in question. • Type D for detail and hit enter. • Type the Invoice # and hit enter. • Type M for memo • You will see the comments that APC sent you in regard to the discrepancy. • Type ADD and add  your response • *APC will work all responses within 24-48 hours of entry.

17. Responding to APC Discrepancies - Using Accts Payable Inquiry (API) • Go into API. Enter the vendor number. • Type D for detail and hit enter. • Type the Invoice # and hit enter. • Type M for memo • You will see the comments that APC sent you in regard to the discrepancy. • Type ADD and add  your response • *APC will work all responses within 24-48 hours of entry. Best used for instances such as: PO: K###-DIRECT PO: K###-INVALID

18. Responding to APC Discrepancies Regarding Intra-company PO Discrepancies (ICPD) • Go into ICPD (Jumpword). Enter the vendor number. • If you don’t know the vendor number • Type D for detail and hit enter. • Type the Invoice # and hit enter. • Type M for memo • You will see the comments that APC sent you in regard to the discrepancy. • Type ADD and add  your response • *APC will work all responses within 24-48 hours of entry.

19. FFFWEST Managers’ Meeting 10/28/2013 Mandatory Manager Legal Training Program

20. Mandatory Manager Legal Training (J00013) • A series of training webcasts conducted by the Employment Practices Group. • These webcasts are designed for management in order to assist you in managing your associates and to ensure compliance with company policies as well as federal, state and local laws, thereby reducing risks of costly litigation.

21. Webcast Topics Includes… • Associate Discipline and Terminations • Americans with Disabilities Act • Wage and Hour (“FLSA”) • Harassment and Discrimination Prevention • Leaves of Absence

22. Mandatory Manager Program • You may now enroll in the individual webcasts by searching for the individual webcasts in ELM or referring to the links for the original October 14th e-mail. • Deadlineto complete is 12 months from date of registration (10/23/14) • Once you have finished the program, your certification is good for two years from the date of completion • Only (2) managers are currently certified… • William Pleitez (7/12) & Dave Olivas (7/12)

23. Webcast Dates/Times… The above shows the training calendar through 2013 only at present, but will be updated for 2014 in the coming weeks.

26. Questions???