1. If It Moves, Scan It! The Sugar Foods Story Kerry White, Sugar Foods Ray Agrusti, Eagle Global Services

2. QAD Proprietary SUGAR FOODS PRODUCTS ARE CONSUMED 80 MILLION TIMES PER DAY! #1 Supplier of sugar substitutes #1 Supplier of powdered, non-dairy creamer #1 Supplier of almonds #1 Supplier of croutons and crunchy salad toppings

3. QAD Proprietary SUGAR FOODS PRODUCTS ARE DISTRIBUTED TO MORE THAN 850,000 OPERATORS Commercial Food Service Providers Non-Commercial Food Service Providers Restaurants Hotels Colleges Health Care Facilities Retail and Consumer Warehouse clubs Supermarkets Mass merchandisers

4. QAD Proprietary Sugar Foods operates four manufacturing facilities, with another coming on-line later in 2008. Bakery items Takes sales orders; Produces dry items, condiment type Bakery and dry items

5. QAD Proprietary Manufacturing Manufacturing in 4 Locations: – Sun Valley, CA – Villa Rica, GA – Commerce, CA – Mazatlan, Mexico Service the following markets: – Foodservice – Specialty Markets Office Coffee Services (OCS) Vending Convenience Stores Membership Warehouse Clubs – Retail – Mexico – and Beyond! Sun Valley, CA (180,000 sq. ft.) (5 football fields) Commerce, CA (250,000 sq. ft.) (7 football fields) Villa Rica, GA (340,000 sq ft.) (10 football fields) Mazatlan, Mexico (70,000 sq. ft.) (1.5 football fields)

6. QAD Proprietary Challenges Less than acceptable inventory accuracy Maximize efficiency and profitability Limited granularity in transaction history Unidentifiable products with similar characteristics Meet compliance requirements for lot traceability Position for future growth

7. QAD Proprietary Meeting the Challenges: Phase 1 Implemented QAD Eb2.1in 2006 – QAD recognized Sugar Foods with its Rapid Implementation Award at Explore 2007 – Discovery to GO-LIVE in 77 days

8. QAD Proprietary Known Challenges – Specific to ADC Inventory accuracy or a single location called OT Inventory thats Out There somewhere Real-time information Elimination of manual logging of raw materials Track materials from receiving through production and then shipping by means of an automated system that provides full lot traceability

9. QAD Proprietary The Right Solution for Sugar Foods Sugar Foods chose Eagles RF Express for QAD Enterprise Applications Chose Intermec Corporations CK31 RF handheld devices Chose Zebra Technologies 105SL bar code label printers for the shop floor

10. QAD Proprietary Why Eagle? Strategic QAD Partner since 1992 Seamless integration with QAD EA Progress-based solution 99% data accuracy or better Real-time data capture without changes to QAD code Personal experience with Eagles solution – Ease of implementation and use – Hardware and device flexibility

11. QAD Proprietary Phase 2: Leveraging QAD EA with an Automated Data Collection Solution ERP system implementations have 50% higher benefits when integrated with an Automated Data Collection System. Gartner Group 2001 Began ADC of raw material data in Villa Rica facility in July 2007 – Receiving – Material transfer – WIP production Completed rollout of raw material in Sun Valley in September 2007 Completed rollout of raw material in Commerce in December 2007

12. QAD Proprietary HOW DID WE DO IT? Made early determination that all items should be tracked utilizing pallet IDs with very few exceptions Identified data that should be visible and scanable on all items (Label Definitions) Identified material flow and drop-off/storage locations Identified QAD transactions required to achieve maximum efficiency and traceability Identified Eagle transactions Labeled all possible storage locations (racks, floor, trailers, etc.) Performed repetitious hands-on training with users

13. QAD Proprietary CAN WE SEE UNDER THE HOOD?

14. QAD Proprietary

28. KEYS TO SUCCESS? Know the Flow Simplify the process Provide as many tools as necessary Reduce keypad entry Review the process periodically

29. QAD Proprietary Where do we go from here? Implement scanning of finished goods w/lot control – Production recording using backflush transaction – Pallet transfer between inventory locations – Sales order picking & shipping Inter-company transfers utilizing DRP Meet specialized customer labeling requirements – UCC/EAN 128 labeling – RFID labeling – Link to ASN transaction Implement all scanning functionality in Mazatlan facility Turn on lot control for raw materials

30. QAD Proprietary Kerry White IT Manager, Villa Rica Facility Sugar Foods Corporation +1.770.459.5225 +1.770.459.9863 (fax) KWhite@SugarFoods.com www.SugarFoods.com Contact Information Ray Agrusti Senior Product Consultant / Project Manager Eagle Global Services +1.973.838.5006 +1.973.492.2758 (fax) RAgrusti@EagleConDev.com www.EagleConDev.com RF Express for QAD Enterprise Applications is a trademark of Eagle Consulting and Development. QAD is a registered trademark of QAD Inc. All other products or Company names herein may be trademarks of their respective owners.