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600 500 400 300 200 100 0 Needs? 5 - Matching Responsibility & Capacity 2... 2... 2... FACILITY Order Confirm Sort & transfer 2... Validate POD CROSS DOCK Confirm Order & Pay Deliver 2... SUPPLIER HIGH LOW VOLUME SITES VOLUME SITES LOW VOLUME / RELIABILITY SUPPLIERS HIGH VOLUME / RELIABILITY SUPPLIERS Determined on a case-by-case basis CMS -30% Stock from small suppliers (or infrequent deliverers) AND to consolidate stock for small volume clinics Cross-Docking -40% Reduce handling of bulk goods and reduce the workload for CMS operational and administrative functions Direct Delivery - 30% Full truck load product volume 7 X Top suppliers 27 Major hospitals = = 70% ! Of volumes

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