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Savings in costs and CO2 for Baxter and Donaldson through orchestrated co-loading of transports

Important savings in costs and CO2 for Baxter and Donaldson through orchestrated co-loading of transports between Belgium and Ireland.

Brussels, American Chamber of Commerce in Belgium (AmCham Belgium), (February 13th, 2013) – Baxter, a global healthcare company, and Donaldson Company, Inc., a global manufacturer of filtration systems, have successfully been co-loading their transports between Belgium and Ireland since August 2012. Neutral orchestrator TRI-VIZOR is synchronizing the shipments of both companies in real time, while ECS European Containers supports the community as logistics service provider. The realized savings in cost and CO2 are substantial.

Baxter is a global healthcare company with expertise in medical devices, pharmaceuticals and biotechnology and has its European distribution center in Lessines, ca. 40 km from Brussels. Donaldson Company Inc. (NYSE: DCI) is one of the largest manufacturers of filtration solutions in the world with a European distribution center in Bruges. Both companies have compatible freight flows, among others between Belgium and Ireland. This bundling opportunity was detected by TRI-VIZOR, a company specialized in creating and operating innovative transport collaborations among shippers. In Q2 of 2012, TRI-VIZOR invited Donaldson and Baxter around the table to forge a horizontal collaboration partnership. “As our delivery destination in Ireland turned out to be in the same enterprise park as Baxter’s, we felt that co-loading presented a real opportunity” says Johan Rosquin, traffic manager at Donaldson Leuven.

As the potential savings in costs and CO2 turned out to be substantial for both Baxter and Donaldson, they decided to start a pilot in August 2012. Neutral orchestrator TRI-VIZOR was asked to manage and synchronize the shipments of both companies in real-time. Alex Van Breedam, CEO of TRI-VIZOR: “To perform this operational orchestration activity, TRI-VIZOR has developed the Cross Supply Chain Cockpit®, a powerful and unique ICT platform for managing horizontal collaboration communities”. The result of TRI-VIZOR’s synchronization activity is that every week, containers from Belgium to Ireland are being filled to their maximal volumetric capacity with a mix of Baxter and Donaldson products.

For the transport of the co-loaded containers from Belgium to Ireland, Baxter and Donaldson selected logistics service provider ECS European Containers, mainly because of its experience with the Belgium-Ireland lane. Pieter Balcaen, CEO of ECS European Containers: “As a specialist in full container loads, particularly on the leg from Belgium to Ireland, we felt we could add significant value to this collaboration”. The complete intermodal journey physically looks as follows: the container is first loaded with Baxter products in Lessines and is subsequently trucked to Bruges where the products of Donaldson are added. In the port of Zeebrugge the container is transshipped onto the ferry to Dublin. Upon arrival in Dublin, ECS European Containers takes care of the final deliveries, first at Donaldson’s end customers and subsequently at the Baxter production site.

The benefits for the companies involved in co-loading are manyfold, but mainly include substantial savings in transportation cost in combination with the use of fewer containers, with higher capacity utilization. On top of that, important sustainability gains are being realized through co-loading. In this case, a CO2 reduction of more than 15% is achieved. For Baxter, this is not the first successful horizontal collaboration experience. In 2011, Baxter started to co-load with another global healthcare company on multiple destinations to central and eastern Europe. “We’ve

experienced that the benefits of bundling and consolidation could be very significant, especially if trust is installed in the community by a neutral orchestrator. Our aim is to continuously expand this collaboration to new destinations and with new partners. Moreover, driving reductions in our carbon footprint is part of Baxter’s long-term sustainability approach to balancing business priorities with social, economic and environmental responsibilities”, says Ludovic Ménédème, director transport and distribution EMEA at Baxter.

About TRI-VIZOR (www.trivizor.com)

TRI-VIZOR was established in 2008 as a spin-off company from the University of Antwerp. By creating “The World’s First Cross Supply Chain Orchestrator®” the company founders wanted to make the transport and logistics sector more profitable and sustainable with innovative solutions for network orchestration and horizontal collaboration. In November 2012, TRI-VIZOR won the “Belgian spin-off company of the year 2012” award, in recognition of its blue ocean vision of “carpooling for cargo”.

About Baxter (www.baxter.com)

Baxter International Inc., through its subsidiaries, develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. As a global, diversified healthcare company, Baxter applies a unique combination of expertise in medical devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide. In 2010, Baxter reported a turnover of USD 12.8 billion and employed 49 700 people worldwide. The company is listed on the New York Stock Exchange (symbol: BAX) and included in the Dow Jones Sustainability Index.

About Donaldson (www.donaldson.com)

Donaldson is a leading worldwide provider of filtration systems that improve people’s lives, enhance our Customers’ equipment performance, and protect our environment. We are a technology-driven Company committed to satisfying our Customers’ needs for filtration solutions through innovative research and development, application expertise, and global presence. Our approximately 13,000 employees contribute to the Company’s success by supporting our Customers at our more than 100 sales, manufacturing, and distribution locations around the world.

About ECS European Containers (www.EuropeanContainers.com)

ECS European Containers Ltd was founded in 1995 in the port of Zeebrugge (Belgium). It is a 45’ intermodal logistics operator, specializing in transport between the UK & Ireland and mainland Europe. All its activities are centralized at the head office in Zeebrugge. This well-considered strategy increases noticeably the level of control and efficiency. Taking into account its operational excellence perspective, ECS European Containers expands its intermodal ambitions and covers a corridor ranging from Belgium over Duisburg through Vienna as far as Istanbul .