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815 South Main Street, Jacksonville, FL 32207<br />

+1 904 390 7100 • 800 395 7100 • suddath.com<br />

© 2015 Suddath Van Lines, Inc. U.S. DOT No. 29609 MC-029904 Centra Worldwide, Inc. WP94-01116 Sentry Household Shipping, Inc. FF 001124 7434N


YEAR IN REVIEW<br />

2014


TRUST INNOVATION COMMITMENT INTEGRITY TEAMWORK<br />

Suddath World Headquarters, Jacksonville, FL


As we reflect on another year, I am eager to share our areas of focus and significant<br />

developments with you. In recent years, we have experienced growth through global<br />

expansion, strategic acquisitions across the country as well as emphasis on leadership<br />

enhancement. This year, no less exceptional, has been one of looking inward and<br />

continually making improvements to our operating efficiencies across the board.<br />

First and foremost, one of our areas of attention has been on our greatest asset, our<br />

employees and the pride with which they carry out their duties to provide the highest<br />

quality services in the industry. Secondly, we believe in continual assessment to<br />

ensure top quality performance. To that end, we commissioned a third-party partner<br />

to conduct both qualitative and quantitative audits of the Suddath ® brand experience<br />

with many of our internal and external constituents. We are in the process of<br />

evaluating this feedback which will be used to elevate the customer experience<br />

each and every day.<br />

Staying true to one of our core values, we are investing heavily in technology innovation. In 2014, we responded<br />

to the challenges of growth by the refinement of our systems including implementing both a human capital and<br />

warehouse management system, as well as a global mobility technology platform now accessible on any device in<br />

any part of the world. These tools are necessary to ensure the longevity of our operational and administrative abilities<br />

to deliver the highest possible quality of service across all of our business lines. All of these and future technological<br />

advancements will be led by our first-ever executive leadership position of chief information officer.<br />

Much progress is evident on operational fronts with 2014 being a banner year for industry recognition including<br />

awards for safety, global relocation, thought leadership and our very own Customer Hero Award winner. Our service<br />

delivery continues to expand and grow as reflected in many exciting projects around the globe including the opening<br />

of a Global Center of Excellence in Shanghai for our global mobility constituents. We continue to use our resources<br />

and expertise prudently to meet the needs and challenges unique to our industry including launching a new service<br />

offering, remanufactured office furniture. This is not only an exciting new venture for Suddath, but one that is<br />

sustainable for the environment and a cost benefit to our customers.<br />

Looking forward, we remain dedicated to developing our people, strengthening our capabilities and building trusting<br />

relationships with our clients, customers and partners. You have my commitment and sincere appreciation for your<br />

continued confidence and support in Suddath as we continue ‘Setting the Standard for Moving the World. ® ’<br />

Barry S. Vaughn<br />

President & CEO<br />

The Suddath Companies


FEATURE PROJECT<br />

Suddath Global Logistics is the logistics partner for Baha Mar, the $3.5 billion<br />

luxury resort on the Bahamian island of New Providence near Nassau. Transporting<br />

and installing the furnishings and fixtures required a single-source solution to<br />

provide the high-end resort with a coordinated, efficient and cohesive effort to<br />

get the project done on time and within budget.<br />

Who: Suddath Global Logistics<br />

What: Baha Mar<br />

When: 6 months: November 2014 through March 2015<br />

Where: Nassau, Bahamas<br />

How: Furniture, fixtures and equipment (FF&E) to be installed in a luxury hotel<br />

- 800 inbound TEU’s; 1,200 outbound TEU’s<br />

- Creation of a new Foreign Trade Zone (FTZ) in Jacksonville, FL


ONE OF THE LARGEST<br />

HOSPITALITY CONSTRUCTION<br />

PROJECTS IN THE<br />

WESTERN HEMISPHERE<br />

After a rigorous vetting process, Suddath was chosen to direct and<br />

manage the supply chain and logistics for the furniture, fixtures and<br />

equipment to Baha Mar through the Port of Jacksonville. The shipments<br />

began in November of 2014 and will span six months. Cargoes include<br />

everything from furniture to artwork to gaming equipment. Suddath<br />

will move 800 inbound twenty-foot equivalent units (TE<strong>Us</strong>), primarily<br />

from Europe and China, and 1,200 outbound TE<strong>Us</strong>.<br />

One of the main reasons Baha Mar chose Suddath as their logistics<br />

partner was due to the fact that Suddath, with the assistance and<br />

guidance from JAXPORT, SM created a new Foreign Trade Zone (FTZ).<br />

By having a FTZ there is a significant reduction in supply chain costs<br />

and offers advantages, including eliminating the need for additional<br />

customs bond on admissions and eliminating duties on foreign<br />

goods re-exported to the Bahamas.<br />

When the resort opens in 2015, Baha Mar<br />

Resort will undoubtedly be one of the most<br />

sought after vacation destinations in the<br />

world with high-end hotels, casinos,<br />

residences, and other venues.


PEOPLE<br />

BUSINESSES<br />

Responsible for moving over 8,500 military and government families<br />

between the U.S. and overseas while continuously maintaining a 99.5%<br />

customer satisfaction survey score.<br />

Suddath continues to gain market share by signing numerous new partners<br />

in 2014 — an accomplishment providing even greater agent and hauling<br />

capacity and allowing us to ensure the highest level of<br />

service to Department of Defense members and<br />

their families.<br />

Awarded a three-year,<br />

multi-million dollar national<br />

office moving and furniture<br />

management contract with<br />

one of America’s largest health<br />

care benefits companies. The<br />

program spans 35 states<br />

and over five million square<br />

feet of commercial real estate.<br />

Managed a 357-person group move from<br />

Portland, Oregon, to Dublin, Ireland, for one<br />

of the world’s largest and most innovative<br />

microprocessing companies.<br />

Awarded a three-year contract with one of the world’s<br />

largest beverage manufacturers to manage employee<br />

relocation at their worldwide headquarters. In the first<br />

year alone, 5,000 employees have<br />

been relocated.<br />

Office relocation project decommissions 850,000 square<br />

foot facility and moves 550 employees in three weeks<br />

for the world’s leading provider of satellite services.


INTEGRATED SOLUTIONS<br />

PRODUCTS<br />

Suddath was responsible for all of Harley-Davidson ® ’s<br />

consumer event transportation and annual worldwide<br />

dealer conference transportation. This included six<br />

dedicated trucks and eight drivers servicing 240<br />

events per year.<br />

®<br />

Responsible for the seasonal<br />

roll-out for an American<br />

specialty foods company for<br />

all their retail kiosks.<br />

Family Support Services of North Florida saved nearly<br />

$160,000 and reduced environmental impact by 93% by<br />

utilizing a remanufactured office furniture solution when<br />

Suddath relocated their headquarters in Jacksonville.


AWARDS AND RECOGNITION<br />

As an industry leader, Suddath received significant accolades in 2014. Our<br />

successes spanned all facets of our business and product lines. These<br />

successes are a result of a continued strategic effort to decrease our (and<br />

our clients’) environmental impact and increase efficiency, safety and quality<br />

across the board. We will continue to make great strides in these areas and<br />

demonstrate to our clients, partners and vendors how Suddath is Setting the<br />

Standard for Moving the World. ®<br />

Anthony “Tony” Meindel (Suddath Relocation Systems of Tampa/St. Petersburg)<br />

was honored with United Van Lines’ Customer Hero Award — this award honors<br />

front-line service providers for their commitment to quality customer service.


SAFETY IS, AND ALWAYS<br />

WILL BE, A TOP PRIORITY<br />

For the 10th year in a row, Suddath Government Services ® was<br />

awarded the “Booker of the Year” award from UniGroup.<br />

For the second time in three years, Suddath received FEM’s<br />

(Forum for Expatriate Management’s) prestigious EMMA<br />

(Expatriate Management & Mobility Award) for International<br />

Mover of the Year — showing continued excellence in the global<br />

arena of household goods relocation. We also received an EMMA<br />

in the global mobility space for Thought Leadership – Survey or<br />

Research Study of the Year.<br />

Suddath was named a Gold Winner of the First Coast Worksite<br />

Wellness Council’s Healthiest Places to Work.<br />

Suddath received recognition from the highly regarded industry<br />

publication, The Commercial Carrier Journal, as one of the top 250<br />

fleets in size in North America.<br />

5<br />

5<br />

14<br />

Among its peers of nearly 1,000 agents, Suddath accepted 34<br />

awards at UniGroup’s annual convention, inclusive of almost all<br />

categories — sales, safety, fleet, hauling and customer service.<br />

5<br />

Since safety is, and always will be, a top priority for Suddath, one<br />

of the most significant achievements was receiving the prestigious<br />

2,000,000 Plus Miles FLEETTop Performance SALESAward for PRESIDENT’S Fleet Safety.<br />

SAFETY<br />

5<br />

FLEET<br />

SAFETY<br />

ACHIEVEMENT<br />

14<br />

5<br />

SALES<br />

ACHIEVEMENT<br />

CLUB<br />

FLEET<br />

SAFETY<br />

14<br />

2<br />

PRESIDENT’S<br />

CLUB<br />

MILLION<br />

DOLLAR CLUB<br />

SALES<br />

ACHIEVEMENT<br />

5<br />

5<br />

FLEET<br />

SAFETY<br />

HAULING<br />

PRESIDENT’S<br />

CLUB<br />

5<br />

2<br />

SALES<br />

ACHIEVEMENT<br />

CUSTOMER<br />

CHOICE<br />

1<br />

PRES<br />

C<br />

5<br />

FLEET<br />

SAFETY<br />

SALES<br />

ACHIEVEMENT<br />

14<br />

5<br />

2<br />

SALES<br />

ACHIEVEMENT<br />

PRESIDENT’S<br />

MILLION<br />

DOLLAR CLUB CLUB<br />

14 2<br />

5<br />

PRESIDENT’S<br />

MILLION<br />

DOLLAR CLUB CLUB<br />

HAULING<br />

5<br />

2<br />

HAULING FLEET<br />

SAFETY<br />

CUSTOMER<br />

CHOICE<br />

52<br />

CUSTOMER<br />

SALES<br />

ACHIEVEMENT<br />

CHOICE<br />

14 2<br />

1<br />

PRESIDENT’S<br />

MILLION<br />

DOLLAR CLUB CLUB<br />

CUSTOMER<br />

HERO<br />

5<br />

HAULING<br />

CUS<br />

CH


READY, SET, GROW!<br />

In addition to a year full of industry recognition, Suddath sustained our organic<br />

and acquisitional growth. A renewed focus on safety, quality, service offerings<br />

and technology innovation continues to allow Suddath to meet the growing<br />

needs of our customers.<br />

Suddath Workplace Solutions launched a new office furniture remanufacturing<br />

operation in Jacksonville, Florida. Because fewer raw materials such as wood,<br />

aluminum, steel and plastics are being used, remanufacturing conserves energy<br />

and natural resources. The EPA estimates that approximately three million tons<br />

of office furniture is discarded each year in the United States and that for each<br />

pound of natural resources used in remanufacturing, five to nine pounds of<br />

original materials are conserved. By offering our clients a remanufactured option,<br />

they are able to keep office furniture in circulation and out of landfills. Conserving<br />

energy and reducing air pollution are also benefits of using remanufactured<br />

furniture; the amount of energy required to remanufacture an existing product<br />

is 85 to 95 percent less than that required to manufacture new.


IMPROVING AND ENHANCING<br />

OUR OPERATING EFFICIENCIES<br />

ACROSS THE BOARD<br />

Addition of more than 120,000 square feet of dedicated warehouse<br />

space to support our logistics customers in Los Angeles and Dallas.<br />

New domestic location in Portland, Oregon, increasing our market<br />

share in the Pacific Northwest.<br />

In line with recent expansion into Hong Kong and London and in<br />

support of our overall global mobility strategy, we have opened a<br />

Global Center of Excellence in Shanghai.<br />

Began the implementation of a new and extremely robust Tier 1<br />

Warehouse Management System to provide our customers<br />

across all product lines a new level of functionality and visibility.<br />

Portland, OR<br />

Continual focus on employee development and education<br />

allowed us to begin the implementation of our new Human<br />

Capital Management System and Learning Management System.<br />

Ongoing investment in the containerization program to<br />

combat capacity issues continues to grow and is producing<br />

tremendous capacity benefits for our clients.<br />

As a result of our focus on safety, Suddath achieved a 4-Star<br />

safety status with UniGroup, established a new Agency Safety<br />

Representative role and is currently piloting the new UniGroup<br />

telematics device for our assets.<br />

Shanghai


IN PURSUIT OF BIG DREAMS...<br />

Every year, two Suddath scholarships are awarded to children of employees,<br />

which provides tuition and books for four years at a state university or college.<br />

The recipients are chosen based on a combination of grade point average,<br />

community involvement, personal achievements and an essay submitted to<br />

the selection committee.<br />

Suddath is pleased to announce the 2014 award recipients:<br />

Zachary Guerriero, Richard H. Suddath Scholarship<br />

Zachary Guerriero graduated from Kings High School, in Kings Mills, Ohio,<br />

with a weighted GPA of 4.18. Zach will attend the University of<br />

Cincinnati and plans on majoring in Engineering.<br />

EST. 1990<br />

Andrew Smith, A. Quinn Bell Scholarship<br />

Andrew Smith graduated from Suncoast Community High<br />

School in Riviera Beach, Florida, with a weighted GPA of<br />

4.08. He will pursue a double major in computer science/<br />

engineering and theatrical design at the University of<br />

Central Florida in Orlando.<br />

SCHOLARSHIPS<br />

AND COUNTING


HELPING HANDS<br />

Each year, Suddath locations across the nation volunteer time and<br />

donate monies and resources in support of their communities. The<br />

list is long but we wanted to share a few of these organizations we<br />

partnered with in 2014.<br />

®<br />

Raised and<br />

donated<br />

15k<br />

to the<br />

ACS<br />

ENVIRONMENTAL STEWARDSHIP<br />

In 2014, there were four major areas where The Suddath Companies continued to not only reduce our own<br />

environmental footprint but also help our customers fulfill their sustainability goals.<br />

CARB<br />

Natural Resources<br />

Energy Efficiency<br />

Waste Management<br />

Entire fleet will meet all<br />

CARB requirements by<br />

the end of 2016.<br />

Our new remanufactured<br />

furniture reduces the use<br />

of natural resources and<br />

consumption of energy.<br />

Suddath is a SmartWay<br />

partner — responsible<br />

in the area of fuel<br />

consumption.<br />

Waste removal from<br />

island at Baha Mar<br />

project site.<br />

100%<br />

REMOVAL


HONOR, HELP, HEAL<br />

In the fall of 2014, Suddath was honored to announce our newly<br />

formed partnership with K9s For Warriors as the Official Transportation<br />

Provider. Suddath donated two new vehicles so K9s For Warriors<br />

can safely transport their warriors and rescue dogs to and from<br />

their new facility in Ponte Vedra, Florida. We are so proud to unveil<br />

the first van of their fleet and are honored to be a small part of<br />

making quality of life possible for the most deserving of Americans<br />

(and dogs) among us! For more information on this amazing<br />

organization, visit k9sforwarriors.org.

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