TWI Newsletter: The Expedition - March 2015

THE EXPEDITIONTheodor Wille Intertrade | March 2015 Issue

ABOUT US

INTRODUCTION W elcome to the March 2015 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 premier 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.

THEODOR WILLE INTERTRADE │ MARCH 2015

TWI DELIVERS TRUSTED SOLUTIONS THROUGH COMPLIANCE PROGRAM

It's very important that throughout the company we are thoroughly familiar with each of the program elements and that we all feel comfortable talking about them both internally and externally. As a highlight of TWI's robust Compliance Program, listed below are the multiple elements that have helped build the program into what it is today.

Core ValuesPosted throughout all of TWI's offices and facilities, our Core Values highlight TWI's beliefs and commitment to ethical business practices.

WI's global reputation as an ethical company depends on each employee always acting consistent with the laws, our policies, and our values. Around the world, we work hard to

build trust and create an environment that invites employee candor and engagement. Our Compliance Program includes multiple elements that all play a role in keeping ethical behavior and business practices at the forefront of everything we do.

Our Compliance Program includes multiple elements that all play a role in keeping ethical behavior and business practices at the forefront of everything we do.

Code of Business Ethics & Conduct (COBEC)Our COBEC continues to be the foundation of our Compliance Program. The COBEC outlines the guiding principles that employees must adhere to in order to help ensure we conduct our business using ethical business practices. The COBEC highlights pertinent topics and laws, including the U.S. Foreign Corrupt Practices Act, Unfair Trade Practices, Discrimination & Harassment, Confidentiality, as well as Gift Giving & Receiving.

Compliance TrainingTWI believes that continuous training is an important tool to maintain currency and awareness of compliance related topics. Each employee is asked to complete training sessions on at least an annual basis. Our training program consists of the New-hire Compliance Program training and an annual COBEC refresher training.

AwarenessTWI utilizes several tools to develop and maintain awareness of compliance throughout the company. These tools include Compliance Moments and articles in the TWI Internal and External Newsletters.

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Risk AssessmentTWI is continually assessing risks within its business units. Risk assessment is an ongoing process within each business unit to identify and mitigate risks. Following this exercise, the conclusions are then shared with others in the company.

External Awareness & RelationsTWI prides itself on having excellent external relations with our customers, vendors, and service providers. Through customer and vendor visits, marketing materials, sales presentations, and the Supplier COBEC, TWI extensively highlights its dedication toward compliance and the highest ethical business standards.

Incident ReportingThe TWI Compliance Program includes several mechanisms for employees to report questionable behavior or suspected violations. Whether it’s through a supervisor or manager, the TWI Compliance & Ethics Officer, or the TWI Ethics Hotline, we provide our employees with multiple channels to express concerns anonymously and without retaliation.

THEODOR WILLE INTERTRADE │MARCH 2015

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Jay ScogginVice President, Program Support

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TABLE OF CONTENTS

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14 Gulfood Food & Hospitality ShowTWI recently attended the 2015 edition of Gulfood, one of the biggest food and hospitality trade shows in the Middle East.

12 Safar Web Shop Saves Oil & Gas Customers from DowntimeIn support of the growing demand for innovative procurement solutions, Safar developed a new and convenient web shop, providing customers with an online purchasing capability for a comprehensive list of world renowned oilfield product brands.

14 EcoWASTEHeld at the Abu Dhabi National Exhibition Center on 19-22 January, EcoWASTE is one of the leading international events for sustainable waste management and recycling, bringing together key local and international technology providers, buyers, and industry professionals

08 US Government Supports Increased Demand in Foreign Military Sales Programs The US Department of Defense's FMS Program facilities the sale of US arms, defense equipment, defense services, and military training to foreign government and organizations.

10 TWI Supports New USG Customers in Central & Eastern EuropeThrough its Subsistence Prime Vendor (SPV) program, TWI leveraged its 75,400 square foot distribution facility in Frankfurt, Germany to ensure expedited food deliveries to multiple locations.

11 TWI Awarded Contract to Submit Country Reports for DLA IBEXIn January 2015, TWI was awarded a contract by the Defense Logistics Agency (DLA) to complete and submit four (4) micro country reports.

15 Middle East ElectricityTWI participated in the 2015 Middle East Electricity Conference, the world's largest power exhibition.


US GOVERNMENT SUPPORTS INCREASED DEMAND IN FOREIGN MILITARY SALES PROGRAMS

In support of its government and commercial customers for Foreign Military Programs, TWI attended this year’s IDEX conference. TWI has accumulated an extensive portfolio in supporting military support programs in austere and remote environments. After being awarded a large contract to support the F-16 Balad Bed-Down Project, an international contractor looked to TWI to establish an immediate supply chain solution. To meet our customer’s high standards and short timeline, TWI utilized its robust network of suppliers and partners to establish a reliable supply chain that delivers Base Life Support tools and equipment with decreased lead times and transportation costs.

Furthermore, in support of the Afghanistan Technical Equipment Maintenance Program (A-TEMP), TWI leveraged its extensive regional supplier network to source over $15 million in spare and maintenance parts. Through its world-class vendor management processes, TWI delivered several supply chain efficiencies, including establishing Blanket Purchase Agreements (BPAs), reducing delivery times, minimizing inventory levels, and cutting procurement costs..

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I n recent years, there continues to be a steady growth inthe demand for Foreign Military Sales (FMS) between foreign governments and the US Government. The US Department of Defense’s FMS Program facilities the sale of US arms, defense equipment, defense services, and military training to foreign governments and organizations. Since 2005, the annual dollar value spend on FMS programs has increased an incredible 150%.

Highlighting the massive global interest in Foreign Military Sales was the 2015 edition of the International Defense Exhibition and Conference (IDEX). Held 22-26 February at the Abu Dhabi National Exhibition Center, IDEX gathered global military representatives in addition to key international contractors. This year’s event included over 80,000 attendees and nearly 2,000 exhibitors showcasing a vast range of products and services to support foreign militaries throughout the region and beyond.


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TWI SUPPORTS NEW USG CUSTOMERS IN CENTRAL & EASTERN EUROPE

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I n recent weeks, the USGovernment (USG) announced rotational troop deployments to Central and Eastern Europe, including the countries of Poland, Latvia, Lithuania, Estonia, and Ukraine. As USG operations continue to expand throughout the region, TWI leveraged its 75,400 square foot distribution facility in Frankfurt, Germany to ensure expedited food deliveries to multiple locations.

Through its Subsistence Prime Vendor (SPV) program with the Defense Logistics Agency Troop Support (DLA-TS), TWI delivers tested and trusted food distribution solutions to USG customers across Northern Europe and Central Asia.


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TWI AWARDED CONTRACT TO SUBMIT COUNTRY MICRO REPORTS FOR DLA IBEX

Each report consisted of TWI capacity in specific supply chain elements as well as challenges and difficulties for each element. These elements included: Knowledge of Country/Region; Electronic Supply Chain; Transportation Arrangements and Customs Requirements/Documentation; Assembly Capability; Manpower, Equipment, and Food Service Capability; Storage Facilities and Distribution; Quality Assurance Procedures; Access to Various Sources of Supply; and Other Logistical Support.

I n January 2015, TWI was awarded a contract by the Defense Logistics Agency (DLA) to complete and submit four (4) micro country reports. The contract and micro country reports are in support of DLA’s Industrial Base Extension (IBEX) Program. Within these micro reports, TWI highlights our services and capabilities that can be offered throughout each country and the surrounding regions. The four reports that were submitted covered locations throughout the Middle East and Africa.

The DLA Troop Support IBEX Program was developed as an Industrial Preparedness Measure (IPM) in order to gain commercial asset visibility over global capability available to support US Military operations and natural disasters, with possible access to these capabilities if required. As DLA strives to consistently provide a rapid response to worldwide events, it has formed strategic partnerships with industry experts to allow government planners to rely on the expertise of the commercial sector.

These strong industry relationships enhance the government’s ability to identify global supply chain issues and solutions prior to the onset of an emergency situation. Through the IBEX program, TWI continues to expand awareness throughout the commercial industry as a reliable and experienced supply chain solutions provider in the most difficult and remote environments.


SAFAR WEB SHOP SAVES OIL & GAS CUSTOMERS FROM DOWNTIME

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One area of focus is the need for innovative procurement strategies. As the oil and gas industry continues to develop and expand, organizations continue the search for timely and value added procurement solutions to maintain tight schedules. For years, companies consistently turned to traditional procurement processes, which led to higher costs, a longer purchasing timeline, and more. By falling back on these inefficient processes, oil and gas companies were left overspending and missing critical production schedules.

rom increasing environmental standards to climate change to growing competition, there are growing issues that the oil and gas industry must address. Global trends lead the oil and gas industry to search for better solutions to surmount emerging obstacles.

As drilling companies begin operations at a new site, it’s critical for them to implement efficient, timely procurement processes. Without a well managed and effective purchasing process, drilling rigs can fall victim to downtime, a contractor’s worst nightmare. Downtime in the drilling industry causes negative impact such as: immediate loss of production, inconvenience to field operations, increased costs due to lack of production, and the possibility of a tarnish reputation which may affect future contract opportunities.

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In support of the growing demand for innovative procurement solutions, we have developed a new and convenient web shop, providing customers with an online purchasing capability for a comprehensive list of world renowned oilfield product brands. With the support of Sana Commerce, the new web shop allows customers to place live quotes that can be instantaneously approved and ordered through the web shop, ensuring an expedited and streamlined purchasing process.

Through the new purchasing capability, customers are able to search and locate products in just seconds and subsequently place live orders. With easy-to-use search features, you are able to filter product results by brand, model type, product type, or event manufacturer part number. This feature ensures customers aren’t scrolling through endless pages of a product catalog, wasting valuable time. This is made possible through the integration of Sana with our ERP system.


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In addition, customers in the field now have the full capability of ordering through the web shop, saving valuable time by expediting the purchasing process. Rather than going through multiple purchasing channels to send and receive a quote for material, drilling managers and other field personnel are now able to use the online tool to quickly find a specific product and begin the purchasing process. With order history data available, customers are able to view and duplicate past orders, when necessary.

As well, the web shop offers customer real-time inventory levels for more than 2,000 products we stock and deliver. With up-to-the-second accurate data, customers are able to work with our purchasing team to develop a scalable, tailored procurement solution in a matter of minutes. Furthermore, equipped with an iPad, our sales team is able to provide real-time inventory data to customers when out in the field during site visits, allowing customers to have stock visibility and awareness.

At Safar Oilfield Services, we strive to remain at the forefront of the oil and gas industry by providing you with the products you need when you need them. We believe that information should be free to empower you, the customer, to make the best purchase decision possible. Visit our web shop now at www.safaroil.com.


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TWI attended the 2015 EcoWASTE event in Abu Dhabi. Held at the Abu Dhabi NationalExhbition Center on 19-22 January, EcoWASTE is one of the leading international events for sustainable waste management and recycling, bringing together key local and international technology providers, buyers, and industry professionals. This year's event showcased more than 50 exhibitors for over 2,000 attendees.

TWI recently attended the 2015 editionof Gulfood, one of the biggest food and hospitality trade shows in the

Middle East. Held 8-12 February at the Dubai World Trade Center, the event featured 4,000 international food companies from countries including India, Australia, France, UK, and the US.

In addition, the event, celebrating its 20 year anniversary, attracted more than 80,000 visitors. This year's event included awards for various products and services in addition to several competitions, including The Emirates Salon Culinaire.

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power exhibition. Held 2-4 March at the Dubai World Trade Center, this year'sevent gathered key industry leaders and professional to network and discussnews and opportunities in the regional power market. The event posted a 14%

WI participated in the 2015 Middle East Electricity Conference, the world's largest

growth in exhibitor numbers, taking the total number to over 1,400. In addition, the event offered extended educational programs with three informative conferences, supported by the Dubai Municipality, the event's government partner.

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

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TWI Newsletter: The Expedition - March 2015