The CarrierPoint Option?

1. The CarrierPoint Option? October 19, 2004 SCM Conference Call

2. Contact • Meeting at CLM • John C. Huggins • Norcross, Georgia (770)263-2509 • John Tomson • VP, Enterprise Solutions Group • John started CarrierPoint • CarrierPoint is now part of TransCore

3. This Presentation • Compiled from handouts provided by CarrierPoint

4. IF FGLC shippers provide shipment history for year by November 15, 2004 ~ 100,000 shipments

5. Carrier Point will run data on their system and show FGLC • Basic traffic lanes with directional volumes • Potential for backhauls • How much collaboration would reduce empty miles if mileage is included • Logical cluster areas for origin and destinations • Logical back haul pairings • Dock scheduling information • How much industry could save • How much capacity could be increased

6. What will it cost FGLC? • No up front costs • Carrierpoint will make presentation at January meeting

7. What would it cost to implement? • $15,000 - $25,000 setup cost per computer interface • Much of cost is to learn shippers system and convert output to XML • Does each company have separate order processing system at each plant? • $1 - $2 /truckload depending upon annual volume

8. Shipper data to be furnished

9. Shipper data to be furnished (2)

10. Automated Backhaul Matching Region CarrierPoint uses calculated freight savings to suggest the optimal pairs of segments to combine into round trip moves for your fleet or for your core carriers. Backhaul One segment of a multi-segment Facility Customer

11. Network suggested backhaul load pairings

12. Other combinations of segments that do not present the optimal cost savings (based on the reference rate) presented on the earlier screen for DSM 8768 but might make a better operational choice

13. Appointment Book • The Appointment book is location specific • It is driven by a configured template • Appointments are entered by the carrier/vendor or by the customer • Floating appointments Double booking capabilityStanding appointments

14. Aug(Pre—CP) Sept(-CP) Improvement Outside loads per day 53 56 Average Detention for on-time loads 2.7 hours .33 hours 87% reduction Average On-Site time for on-time loads 2.7 hours 1.7 hours 37% reduction Percentage of on-time loads held < 1 hr 10% 57% Percentage of on-time loads held 1-2 hrs 26% 28% Percentage of on-time loads held 2-3 hrs 24% 13% Percentage of on-time loads held 3-4 hrs 23% <1% Percentage of on-time loads held 4+ hrs 17% <1% Percentage of loads subject to demurrage >2 64% 15% 77% Reduction One Month of Dock Scheduling • One month after implementation results in a 77% reduction in carrier billable demurrage time. Other customers increase facility production where bottlenecks existed at the docks previously

15. How does the system work? • Identify Shipment points • Enter rates by shipment point pairs • Electronic solicitation of rates option available • Designate carrier priority • Define priority rules • Assign shipments to carriers as orders are received • Pair backhauls recommendations and candidates • (All shipments for company are on one screen) • Show options for consolidating LTL to TL loads • Allocate freight by priority rules and rates • Publish spot market loads for carriers to bid on

16. Region setup via zip ranges

17. Rate base setup for combined moves – can be uploaded from Excel

18. Rate base setup for combined moves

19. eRFQ Calendar • Set RFQ timeline and tracking parameters • Upload lanes to be included in the process or add lanes individually through the user interface if you already have a rate database • Choose and notify carriers to receive the rfq • Monitor responses from carriers and carriers that have not yet responded • Choose carriers you want involved in your business and include them in a modeling tool so that you can determine the best mix of carriers on any given lane • Award the business and notify the carriers then export your results to the rating engine so that you can execute your plan

21. Settings for selecting loads to consider for combination

22. Tender Strategies Wider Spot Market Private Trading Network • 4 Levels of visibility insure maximum visibility & carrier capacity • You control who sees your loads and equipment….and when • Fleet assets act as a 1st Level Contract Carriers Fleet

23. Lane Analysis • View detail of carrier response with provided links for additional detail then model, award and upload directly to the rate base • Model cost combinations of carriers on specific then award and upload directly to the rate base

24. View Shipment Dashboard • View shipments for a single location or for the entire company • The Shipper’s Dashboard provides a ready reference of all loads and their real time status • Quick Views allow for easy sorting of the information

25. View Shipment Detail • Detailed single or multi stop shipment information is readily available to, Transportation, Customer Service, Core Carriers, and any other division or business partner that you want to have access. • Bills of Lading as well as other documentation can be printed directly from this screen

26. Tracking and Communication • Advance Shipping Notices can delivered to the customer and other business partners • Status updates can be provided at the load or stop level • Carriers that are EDI capable deliver 214 transaction sets through to proof of delivery and smaller carriers without EDI can update statuses and delivery through an efficient user interface so that there are no gap in tracking • Status requests automated in the interface, or shipper initiated • Proof of delivery from carriers with delivery detail also advance the status on the shipper dashboard to “Delivered” • Use Proof of Delivery as a payment trigger for automated freight pay

27. Backhaul Pairing & Alternate Pairings • All new loads interfaced into carrier are reviewed against existing loads in the load pool so that the backhaul matching is continuous and does not have to be performed in batch runs as with older optimization tools. • Other combinations of segments that do not present the optimal cost savings presented on the above screen but might make a better operational choice are available through the view alternatives link

28. With • Receiver Data • Carrier data including rates by lane • Shipment Data • Automatically consolidates LTL to TL loads • Combine loads within company to utilize backhauls • System automatically sees other firms shipments and create collaborative backhauls • If carriers have GPS or other tracking system you can track shipments and send advance shipment notification with expected arrival time and exact configuration of load

29. By capture gate time, dock time, release time and departure time you can • Determine dock utilization • Determine wait time, unload time, tarp time, and email summaries to each customer every month • Determine distribution of unload time and reality of 6 am-10am delivery time requests • By capturing glass breakage by load analysis can be made of breakage by load type, equipment type, customer, highway, etc. • Proof of deliver • Implement automatic billing for glass • Automatic freight payment • Allows easy audit of each freight bill • Allows capture of freight cost by category by customer for involving marketing (in cases where glass is priced delivered)

30. Appointment Book • The Appointment book is location specific • It is driven by a configured template • Appointments are entered by the carrier/vendor or by the customer • Floating appointments Double booking capabilityStanding appointments

31. Carrier can select dock time or be assigned dock times • Reports issued to show conformance to schedule for both parties • Yard management system for trailers • Fuel surcharges can be assigned automatically

32. Aug(Pre—CP) Sept(-CP) Improvement Outside loads per day 53 56 Average Detention for on-time loads 2.7 hours .33 hours 87% reduction Average On-Site time for on-time loads 2.7 hours 1.7 hours 37% reduction Percentage of on-time loads held < 1 hr 10% 57% Percentage of on-time loads held 1-2 hrs 26% 28% Percentage of on-time loads held 2-3 hrs 24% 13% Percentage of on-time loads held 3-4 hrs 23% <1% Percentage of on-time loads held 4+ hrs 17% <1% Percentage of loads subject to demurrage >2 64% 15% 77% Reduction One Month of Dock Scheduling • One month after implementation results in a 77% reduction in carrier billable demurrage time. Other customers increase facility production where bottlenecks existed at the docks previously

33. Audit • Audit allows each line-item on the accessorial to be reviewed and approved. • Carriers can use this screen to claim charges, but only for accessorials that are configured by the shipper to be claimable by the carrier. • The Audit pages only contain accessorials that are available on the schedule used on the load. • Shipper can “Approve” a load from this screen, triggering the send of detailed freight bill info via OMSI.

34. LTL to TL Consolidation • Screens can be filtered to show only loads assigned to a specific weight range, origin, and delivery region to aid in the combination of partials. Loads that have matching origins and destination and partial weights are presented to the user on this screen for consolidation by clicking on the matched loads. The combined loads are then released to the carrier base to go thought the cascading tender process

35. Accessorials, Fuel Surcharges & Audit • Shipper/3PL can assign fuel surcharge schedules to carriers (user-defined or based on DOE Regional Fuel Indices) • Fuel Surcharges automatically calculated based on line-haul and applied to shipment • Shipper/3PL can assign Accessorial schedules to carriers and specify services on load when posted or after-the-fact • Shipper can permit/deny carrier to claim charges on-line • Review and approval done on-line • New OMSI messages created for line-level detail of freight bill including configurable GL codes • Shipper can choose to auto-approve freight bill at time of carrier acceptance, delivery confirmation, or only after submitted for approval by carrier • Can auto-approve based on absolute or percent-of-bill variances

36. Capacity Driven Dock Scheduling DockMaster – Interactive Scheduling • Provides “self-service” scheduling by carriers • Location specific dock appointment books are created • Accommodates any number of doors • Any number of access level can be granted • Doors/areas are named and grouped by type • Filters drive the correct cargo to the correct doors • The customer assigns carrier’s levels of access • Full self-scheduling, cancellation capabilities, rescheduling capabilities • Request an appointment only • Outside of the core carrier group, but granted direct route scheduling • Appointment data is provided for performance reporting • Dock in and out reporting generate lift driver productivity, load and discharge time actuals and averages, interfaces new inventory to WMS software on inbound moves, etc. • Gate in delivers the on time arrival of carriers, and generates an exception notification if late • Gate out provides the first indication of on time delivery probability

37. DataDepot Reports • A selection of performance and benchmarking reports are available (Right) • Reports can also be scheduled for automatic generation and delivery via e-mail for active performance monitoring (Below)

38. What about CarrierPoint? • Who are they? • How big are they? • What Industries do they serve?

39. TransCore Overview • 1700 employees focused on transportation management software and services for 18,000 truckload carrier, intermediary, and shipper customers • Portland, Ore. headquarters with 25-year history making commercial ground transportation more efficient and profitable • Broad and flexible product range: • Freight Matching (DAT Partners, etc.) 3,500,000 monthly loads matched • RFID • GPS Tracking • 3PL Management Systems • Regulatory Services • CarrierPoint • Transcore Media Group • Truckstop Services • CarrierPoint joined TransCore March of 2003 • $380 million in annual revenues

40. CarrierPoint Customers Are: • Purchasing technology to improve core competencies including transportation • Enhancing corporate visibility of their supply chain • Providing appropriate information views to the entire corporation • Easily interfacing data from separate systems to one common platform • Differentiating their products through enhanced customer care • Tracking to delivery • Providing shipped notification • Streamlining the distribution process • Automating the process so employees can manage the exceptions • Reducing transportation cost • Negotiating better freight rates without damaging carrier partners • Using current contracts to their fullest • Choosing the correct carrier for a specific lane or customer • Compressing dock schedules • Transporting additional product • Eliminating demurrage charges and long standing units • Creating more efficient continuous moves for fleet and 3rd party carriers • Applying metrics to their vendors/customers/departments to: • Measure compliance • Benchmark • Improve management decisions

41. ASP Overview CarrierPoint provides: • Hardware(redundant application servers, redundant database servers, SSL accelerators, tape backup, etc.) • Software(CarrierPoint application and supported 3rd party SW – Web server, database, backup, system monitoring) • Hosting infrastructure(secure facility, redundant links and power, etc.) • 24 x 7 system monitoring (heartbeat monitoring, notification, escalation procedures, etc.) • System maintenance (database administration, backup, system upgrades, etc.) • Customer support (for users and business partners at no additional charge) • Upgrades and new features(on a quarterly basis through the existing interface)

42. System Interface and OMSI • OMSI is a simple, secure integration tool • Allows 2-way communication with CarrierPoint • Send loads, changes, cancellations • Send messages to carriers/vendors • Receive Dispatch/Scheduling results • Receive carrier self-scheduling results • Receive status updates from carriers. • Through “staging” database: • Customer fills CarrierPoint-supplied database tables • Customer reads results from tables filled by CarrierPoint • CarrierPoint supplies all connection software • Simple • No 3rd party software required (such as WebMethods or Crossworlds) • Does not require that the customer know XML, Java, or other internet technologies • No Webserver required • Less than 6 weeks to interface • Secure • Uses a secure communications protocol (SSL) • Is “passive” - website never initiates a transfer into the customers’ network (to minimize security/firewall concerns) • Behaves like a browser – HTTP Request/Respond flow

43. If you decide on this approach? • 3 to 6 week implementation time • $1 to $2 per load cost • Each shipper would contract with them independently • No firm would ever see competitor’s shipments • Carriers can see loads tendered to them and loads available on spot market

44. Supply Chain Contribution

45. Loading Unloading Process

46. What would such a system do? • Eliminate and report on most wasted time steps in arrival, loading, unloading steps • Addresses potential to reduce empty miles and unproductive hours • Addresses the 6 am - 10 am arrival time issue • Monthly reporting on receiver unloading performance • Provides data collection for analyzing glass breakage by type glass, by carrier, by customer, by route, or mixed loads • Provides data for analyzing load and unload time by mixed load • Allows integration of specialized and non specialized transportation

47. What it would not do • Not address wasted time in ordering process. • SCM committee will make separate efforts to address potential of • Vendor Managed Inventory methods – Widely used • POS methods – Wal*Mart • JIT II methods - Bose • CPFR methods – Retailers with extensive promotions • ECR methods – Grocery Industry • 13 week rolling forecast method - Dell