The CarrierPoint Option? October 19, 2004 SCM Conference Call

The CarrierPoint Option?

October 19, 2004

SCM Conference Call

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

This Presentation

• Compiled from handouts provided by CarrierPoint

IF

FGLC shippers provide shipment history for year

by

November 15, 2004

~ 100,000 shipments

• 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

What will it cost FGLC?

• No up front costs

• Carrierpoint will make presentation at January meeting

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

Shipper data to be furnished

Each row represents a shipment

ORG3ZIP DEST3ZIP ORIG CITYORIG

STATE

DEST CITYDEST

STATE

SHIPDATEDELIVER

DATEPICKUP

TIMEDELIVER

TIME

38010 21045 MEMPHIS TN ATLANTA GA 4/19/2001 4/19/2001 14:30 14:30

38010 21045 MEMPHIS TN ATLANTA GA 4/20/2001 4/20/2001 16:00 16:00

38010 21045 MEMPHIS TN ATLANTA GA 4/20/2001 4/20/2001 18:00 18:00

38010 21045 MEMPHIS TN ATLANTA GA 4/20/2001 4/20/2001 14:30 14:30

38010 21045 MEMPHIS TN TAMPA FL 4/23/2001 4/23/2001 16:00 16:00

38010 21045 MEMPHIS TN TAMPA FL 4/20/2001 4/20/2001 18:00 18:00

38010 21045 MEMPHIS TN TAMPA FL 4/20/2001 4/20/2001 14:30 14:30

38010 21045 MEMPHIS TN TAMPA FL 4/20/2001 4/20/2001 16:00 16:00

38010 21045 MEMPHIS TN TAMPA FL 4/20/2001 4/20/2001 18:00 18:00

38010 21045 MEMPHIS TN TAMPA FL 4/23/2001 4/23/2001 14:30 14:30

38010 21045 MEMPHIS TN TAMPA FL 4/23/2001 4/23/2001 16:00 16:00

38010 21045 MEMPHIS TN TAMPA FL 4/23/2001 4/23/2001 18:00 18:00

38010 21045 MEMPHIS NT TAMPA FL 4/23/2001 4/23/2001 16:00 16:00

Shipper data to be furnished (2)

SCAC AMOUNT MILEAGE EQUIP # Stops Stop off Charge Comments / Instructions

PSQA 224.66 63 Flatbed1 50  

PSQA 215.82 57 Flatbed1 50  

SUBF 224.88 72 Flatbed1 50  

SUBF 222.72 72 Flatbed1 50  

PSQA 216.36 63 Flatbed1 50  

PSQA 221.72 63 Flatbed1 50  

PSQA 217.43 63 Flatbed1 50  

PSQA 217.41 63 Flatbed1 50  

PSQA 221.83 63 Flatbed1 50  

PSQA 218.18 63 Flatbed1 50  

PSQA 224.93 57 Flatbed1 50  

PSQA 220.84 57 Flatbed1 50  

PSQA 224.93 57 Flatbed1 50  

Facility

Customer

Backhaul

One segment of a multi-segment

Automated Backhaul MatchingAutomated Backhaul MatchingAutomated Backhaul MatchingAutomated 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.

Network suggested backhaul load pairings

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

Appointment BookAppointment Book Appointment BookAppointment 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

One Month of Dock SchedulingOne Month of Dock SchedulingOne Month of Dock SchedulingOne Month of Dock Scheduling 

  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

Detention Time DistributionBefore CarrierPoint

<1 Hr.10%

1-2 Hrs26%

2-3 Hrs24%

3-4 Hrs.23%

4+ hrs.17%

Detention Time DistributionAfter CarrierPoint

<1 Hr.57%

1-2 Hrs28%

2-3 Hrs13%

3-4 Hrs.1%

4+ hrs.1%

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

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

Region setup via zip ranges

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

Rate base setup for combined moves

eRFQ CalendareRFQ CalendareRFQ CalendareRFQ 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

Settings for selecting loads to consider for combination

Tender StrategiesTender StrategiesTender StrategiesTender Strategies

Private Trading Network

Wider Spot Market

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

Fleet

Contract Carriers

Lane AnalysisLane AnalysisLane AnalysisLane 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

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

View Shipment DashboardView Shipment DashboardView Shipment DashboardView Shipment Dashboard

View Shipment DetailView Shipment DetailView Shipment DetailView 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

Tracking and Tracking and CommunicationCommunication

Tracking and Tracking and CommunicationCommunication

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

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

Backhaul Pairing & Alternate PairingsBackhaul Pairing & Alternate PairingsBackhaul Pairing & Alternate PairingsBackhaul Pairing & Alternate Pairings

• 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

• 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)

Appointment BookAppointment Book Appointment BookAppointment 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

• 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

One Month of Dock SchedulingOne Month of Dock SchedulingOne Month of Dock SchedulingOne Month of Dock Scheduling 

  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

Detention Time DistributionBefore CarrierPoint

<1 Hr.10%

1-2 Hrs26%

2-3 Hrs24%

3-4 Hrs.23%

4+ hrs.17%

Detention Time DistributionAfter CarrierPoint

<1 Hr.57%

1-2 Hrs28%

2-3 Hrs13%

3-4 Hrs.1%

4+ hrs.1%

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

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.

AudiAudi

ttAudiAudi

tt

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

LTL to TL ConsolidationLTL to TL ConsolidationLTL to TL ConsolidationLTL to TL Consolidation

Accessorials, Fuel Surcharges & Accessorials, Fuel Surcharges &

AuditAuditAccessorials, Fuel Surcharges & Accessorials, Fuel Surcharges &

AuditAuditShipper/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

Capacity Driven Dock SchedulingCapacity Driven Dock Scheduling Capacity Driven Dock SchedulingCapacity 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

DataDepot ReportsDataDepot ReportsDataDepot ReportsDataDepot 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)

What about CarrierPoint?

• Who are they?

• How big are they?

• What Industries do they serve?

TransCore OverviewTransCore OverviewTransCore OverviewTransCore 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

CarrierPoint Customers Are:CarrierPoint Customers Are:CarrierPoint Customers Are:CarrierPoint Customers Are: Purchasing technology to improve core competencies including transportation

Enhancing corporate visibility of their supply chainProviding 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

ASP OverviewASP OverviewASP OverviewASP 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)

System Interface and OMSISystem Interface and OMSISystem Interface and OMSISystem 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

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

Supply Chain Contribution

Need occursWhether by

Use, production schedule, sale

Need is recognized

Replenishment InitiatedWait Wait

PO CreatedIf delivery

date required it will be filled

in whether accurate or

not

Wait

P.O. ApprovedWait Wait Order Created Wait Order Sent Wait

Order Received Wait Order Entered

Schedule Production

Schedule Construction

Sales

Normal Usage

Activity

Go to A

Processor Customer

Loading Unloading Process

Manufacturer

Select Carrier

Process Order

Shipping

Stage order

Place order with carrier with defined pick up time

Wait

Dispatcher Dispatch truck with assigned

pickup time

Receive Dispatch

Drive to pick up point

Announce Arrival

Position truck for Loading

Clear Truck for Loading

Load Truck

Tarp Load

Announce Arrival

Clear Truck for Loading

Position truck for

Unloading

Unload Truck

Untarp the load and

secure the tarp

Wait

Position truck for next trip

Wait

Report

Clear

ReportCleared

Wait

Wait

Drive to customer site

A Order Received

Enter OrderWait Wait

Wait

Pick Order

Wait

Wait

Wait Wait

Secure Tarp and Ready

truck

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

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