SGS Sample Management BelgiumSeptember 2006

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A BRIEF HISTORY OF SGS

Founded in Rouen in 1878, under the name of Goldstück, Hainzé & Co.

First registration as Société Générale de Surveillance in Geneva in 1919, head office still there

Growth by agglomerations of various companies

Listed publicly in 1985, single share structure since 2001

Global leader in verification and monitoring services for international trade and governmental services

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SGS competitive advantages

Our range of geographical network with 42.000 employees and almost 1000 offices and laboratories

The cross selling of the various businesses

The skill and leadership of our people

The depth of our expertise The quality of our laboratories Our Brand and independence Our culture of integrity and

performance ethics

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SGS Sample Management Business Strategy

Provide our client with cost effective quality services with clear pricing, in order to enhance their customer service and sample distribution programs worldwide

Provide services in a consistent manner, managed by a highly skilled IATA/ADR trained team

Deliver additional savings through economies of scale ( gain-share) :• Transportation costs • Sample containers and packaging materials • Labor efficiencies

To become the Global Supply Chain Partner for samples, providing a good “first impression” towards our client’s (potential ) customers

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SGS Sample Management History

1950: first sample dispatch for the Inspection and Testing Division

1982: “Destpack” is created, first commercial samples are being dispatched

1997: the Sample Logistics Centre in Antwerp is built, storage capacity is doubled in 2000

2000: globalisation of our Services

2003: trade name changes into “SGS Sample Management”

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Organisation Chart

Quality AssuranceRoger Janssens

Safety Officer:Eddy van Eenoo

Satellite Brucargo( Brussels Airport )Walter Myttenaere

Antwerp Head OfficeKoen Mertens ( Customer Service )

Geert Lammerant ( Operations )

Satellite Zelzate( Ghent - Terneuzen)

Ria Buysse

SGS Sample Managementa Division of SGS Belgium N.V.

Dirk Adriaenssens

SGS Belgium N.V.

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Worldwide Network

Satellite:Houston

AmericasSample Logistics Center:

Bridgeport N.J.( close to Philadelphia )

Satellites South:France:Le Havre

Italy: Porto MargheraSpain: Barcelona

Satellites North:The Netherlands: Spijkenisse

United Kingdom: WiltonGermany: Duisburg

EuropeSample Logistics Center:

Belgium, Antwerp

Asia, Far EastSample Logistics Center:

Singapore

SGS Sample ManagementCompetence Center

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SGS SaMan Antwerp facility

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SGS SaMan Antwerp Facility

Warehouse surface: 2500 m2

Warehouse capacity: • Euro pallets: >900• drum sampling: >150• square meters of shelf:> 1250 capacity can be increase for 100%

For storage of: • Non Hazardous substances• ( Highly ) Flammable liquids or

solids• Corrosive/ Irritant products• (Very) Toxic/ Harmful substances• Environmentally hazardous

products

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Sample preparation

At the SaMan Warehouse:• liquids, solids, powders, flakes,

granulars in glass, metal, PE, etc.• volumes ranging from 0.1 till 25 L• heating of solid or viscous

products up to 150 °C• sampling under Nitrogen for

humidity sensitive products

Storage under ambient or cooled/refrigerated conditions

On site:• by our inspectors of the Oil, Gas &

Chemicals Division

Collection at the premises

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Antwerp facility

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Labelling and Documentation

• Dangerous substances: Hazardous Label as per EC regulations in the language of the receiver

Labels:• Dangerous and Non-dangerous

substances: Product identification Label.

Documentation:• SGS acts as Shipper, issuing the

IATA Shipper’s Declaration for Dangerous Goods, Consignment Note, Custom formalities, etc.

• MSDS, CofA, etc added to each shipment

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Stock management

Bulk is sampled in advance in order to have standard sample size(s) available on shelf

Automatic inventory control of (minimum ) stock of samples and bulk, follow up of pending replenishment orders

Automatic verification of expiry dates by the WMS

Max. stock levels are set in order to minimise the expired stock quantities at the expiry date

Yearly physically stock counting Disposal of expired bulk/sample

stock

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Packing

Combination packaging:• intermediate packaging for

hazardous liquids is a tin can filled with absorbing material.

• outer packaging: own SGS UN approved 4G(V) fibreboard boxes, 4D plywood boxes

Single Packagings: • 10, 25 and 60 L pails or drums UN

certified 1A1 and 1H1

2005 Antwerp statistics• 20.900 sample orders or

88.000 samples packed

By competent trained personnel

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Forwarding

Worldwide in a door-to-door service by approved suppliers: DHL, TNT and Fedex

Automatically best solution is selected, based upon:

• Hazardous or non-hazardous• destination and weight • requested delivery date• tariff structure

EDI-link between SGS and courier companies ensures:

• transfer of all data to the courier companies

• downloading of POD, tracking and tracing info in our files

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Customer Service Representatives ( CSR )

Committed to partnering with customers and meet their demands :

• assist companies in transition plans for outsourcing

• sample follow-up services• inventory monitoring services• sample order management and

stock replenishment in SAP • 24/7 Emergency response• periodic reporting to sales,

marketing or financial Department• periodic operational Review

meetings • etc.Suzy Koen

ErikAnnemie

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Quality Assurance

Driven excellence through matrix and continuous improvement

• ISO 9001 -2000 certified• participating in Six Sigma

programs • approved suppliers • complaint and none conformities

handling

KPI’s ( Key Performance Indicators) :

• order execution • delivery time to consignee• others: client specific

KPI order execution 2005

0

5

10

15

20

25

30

35

40

45

50

sameday

next day 2nd day 3th day

% o

f ord

ers

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2005 KPI Sample delivery

2005 KPI sample delivery worldwide non-dangerous substances (75% )

0

10

20

30

40

50

60

next day 2nd day 3th day 4th day

% o

f ord

ers

2005 KPI sample delivery worldwide dangerous substances (25% )

0

10

20

30

40

50

60

next day 2nd day 3th day 4th day

% o

f ord

ers

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2005 number of samples per destination country

0

500

1000

1500

2000

2500

3000

3500

4000

Germ

any

UKFr

ance

Italy

Belg

ium USA

Nethe

rland

sSp

ainSw

itzer

land

Polan

dTu

rkey

Swed

enCz

ech R

epub

licJa

pan

Aus tr

i a Ch

inaHu

ngar

y So

uth A

frica

Israe

lCo

reaDe

nmark

Finl

and

Russi

an F

edNo

rway

Gree

ceot

her d

est

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Safety Management

VCA** ( Safety Checklist Subcontractors ) accredited

In all compartments Argonite fire extinguishing system ( 50% Argon/ 50% Nitrogen )

Explosion proof electrical equipment and forklift ( zone 2 )

Vapour extraction systems for sampling and ventilated storage compartments

Intervention team

ADR Safety Advisor on site

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Environmental issues

Storage of Hazardous Substances in accordance with Flemish Environmental Regulations

Retention basin and epoxy coated floor

Filter box for sampling of powders

Disposal of expired samples or bulk via SGS EWACS ( European Waste Care Services )

SGS Environmental laboratory ( Air-Soil-Water ) on same site

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SGS Dangerous Goods Services

Present at Brucargo since September 1996

Moved from building/warehouses 706 to 724 in November 2004

Services:• Pre-shipment inspections• (Re-)packing, overpacks and labeling• Recovery of damaged cargo• Documentation

– Issuing of Shipper’s Declaration– and other transport docs

• Cooled and dryice shipments• Transport arrangements • 24 Hours emergency response

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For more information please contact:

• Benjamin Appermont• Business Development• SGS Belgium N.V.

• phone: + 32 3 545 84 52• benjamin.appermont@sgs.com• www.SGS.com