The Urgent Need for Change and The Superior Path Forward slide image

The Urgent Need for Change and The Superior Path Forward

PRIORITY #2: OPERATIONAL PROFIT ENHANCEMENTS (CONT.) Vendor Savings ▪ Volume discounts through bundling There is an opportunity for Synalloy to improve its supply chain by unlocking meaningful purchasing and logistics savings ■ ■ ■ ■ Conversion to co-op based supply chain agreement can save up to 1% on materials Rebates through coordinated procurement Logistics Savings Optimize freight lane utilization ■ Utilize UPG's in-house freight network for route overlap Partner with UPG on LTL bulk commitment freight contracts to drive down costs Expect additional purchasing power to increase rebates by ~$10/ton Scrap and working capital savings PRIVET FUND 01. 02. 03. 04. 05. Our Plan To Strengthen Synalloy UPG STRONGER TOGETHER $1.8 million in savings We estimate the Company can save over $2.6 million per year through improved purchasing and smarter logistics spend $0.8 million in savings 83
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