Economic and Operational Benefits of Cargo Tracking Technology

© Savi Technology 2012 1

Economic & Operational Benefits of Cargo Tracking Technology BILL GOSS Senior Vice President, Global Sales, Services & Support

Common Cargo Concerns

•  Security: Curb theft and unplanned diversion of cargo; reduce the need for physical escorts

•  Reliability: Uninterrupted movement of cargo

•  Visibility: Live location updates on all journeys and assets

•  Efficiency: Improve transit times, least cost routing, establish audit trails

•  Profitability: Reduce costs for fuel; Improve revenue streams; lower insurance premiums


How does technology address these needs?


4

PM J-AIT Radio Frequency Identification Network

Contract brief: " Sole source provider

from 1990 through 2008 " Developed the largest

active RFID network " Leader in developing the

technology compatible with ISO 18000-7 & other AIT

" Valued and recognized partner with DoD

Customer Challenges Solution

"  Deploy a wired and wireless active RFID network along routes that containers travel

Savi installed a wired and wireless RFID network to track U.S. DoD and Allied containers moving from CONUS ports to the areas of responsibility, including Pakistan, Afghanistan, Haiti, Europe

"  Track location & condition of containers moving through critical supply chain nodes

"  Maintain security of containers in transit

"  Reduced costs associated with tracking containers

"  Identification of container pilferers

"  Improved readiness of troops

Benefits

“The RFID network… has improved visibility and delivery of supplies needed by troops…”

Lt. Col. Pat Burdon, PM J-AIT

"  Ensure warfighters have the right parts at the right time

5

NATO

Savi products enabled eight NATO nations to achieve interoperability in the tracking of NATO consignments

Project brief: " 22,000 reads per month " Containers transported

from Pakistani ports into Afghanistan

" Technology compatible with ISO 18000-7 & other AIT

" DoD pays “by the drink” for data on containers


"  Savi SmartChain Consignment Management Application to track military consignments

"  Comply w/ NATO Standardization agreements (STANAGs) for interoperability

"  Gain better visibility of joint NATO operations

"  Compliance w/ STANAGS

"  Command-level visibility of joint NATO operations

"  Interoperability between NATO nations

Benefits

“NATO has concluded that this type of system can greatly contribute to the Commander’s situational awareness in the logistics arena.”

- Brent Bingham, NC3A Project Manager

6

Benefits Customer Challenges Solution Project brief: " Worldwide tracking of

consignments " Fixed and mobile

installations " Active RFID " Integration with legacy

systems

Australian Defence Force Savi Consignment Management Application (CMA) solution

ADF deployed SmartChain® CMA for increased visibility of operational assets deployed globally in support of Allied Operations

Customer Challenges Solution Benefits " Near real-time visibility

of consignments

" Nested visibility of assets and consignments

" Interoperability with coalition partners, e.g. NATO, US DoD

" Integration with Legacy Systems

" Implemented SmartChain® CMA with active RFID to track consignments and contents of containers both across its National Support base and Deployed Operations.

" Lack of visibility of consignments locations

" Unknown contents of containers

" Fixed infrastructure and deployed operations

" Multiple Legacy ERP and Logistics Systems

7

Army Joint Munitions Command

JMC deployed a material management system to gain visibility and distribute, receive, move, count, and classify its CONUS ammunition inventory


"  SmartChain® FM Web with Extended Business Logic

"  Conversion to SAP-based ERP system missing key AIT functionality

"  Short delivery time-frame to provide existing functionality in new ERP environment

"  Reduced change management; retained legacy look and feel

"  Seamless interface to ERP

"  Interfaces with other Army systems

"  Maximizes AIT initiatives in place in DoD

Benefits Project brief: " 8 ammunition depots

CONUS " 12,000+ zones enterprise

wide " 2 million+ inventory lines " Barcode & active RFID " SAP & SmartChain®

“Right ammo, right place, right time”

8

Benefits Customer Challenges Solution Project brief: " 5M Pallets and Crates

under management " Ordering and tracking for

commodity assets only " 1000s of DC, store, and

supplier sites " Interface with EAO

systems

Coles – Australia

Coles has adapted Savi’s SmartChain® Asset Management Application (AMA) to manage their five million returnable assets

Customer Challenges Solution Benefits " Provide accurate billing

of suppliers for RPCs and hence increase revenue

" Provide accurate inventory tracking of pallets and hence substantially reduce rental costs

" Customized SmartChain® AMA Solution to track commodity (non serialized) assets between Coles, their suppliers, carriers, and EAOs.

" Need for accurate records of RPC inventory (3.5M Crates) to manage the issue , return and invoicing of suppliers.

" Need for accurate records of pallet inventory to reconcile External Asset Owner (EAO) accounts

9

Benefits Customer Challenges Solution Project brief: " Custom HW & SW " Worldwide Opportunity " Significant business for

SGS and Savi " Live in Kenya and Ghana

SGS Electronic Cargo Tracking Solution (OMNISTM)

Exclusive, worldwide technology supplier to SGS OMNIS™ Electronic Cargo Tracking Service for monitoring, tracking, and security of shipments in developing countries

Customer Challenges Solution Benefits

" Reduced cost of protection and enforcement

" Increased customs revenue

" Vehicle security and trip efficiency

" Savi SMTSTM integrated hardware and software solution

" In-transit cargo losses currently exceed 40%

" Track bonded shipments as they move across the country

" Haulier monitoring of vehicle location and activity

“SGS conducted an exhaustive review to determine the best technology for the SGS OMNIS™ offering. The Savi solution is far superior to any solution in the market and provides the most complete range of coverage for customers’ tracking needs.”

- Roger Kamgaing, VP , Government & Institution division of SGS

Case Study: Kenya

Challenge: •  Improve reliability and security of cross-border consignments •  Increase visibility of goods-in-transit •  Increase profitability Solution: •  Journey tracking software

from Savi •  Rugged electronic seals for

trucks, containers and assets •  Defined routes


Case Study: Kenya


Result: •  Real-time visibility of trucks •  Automatics alerts when trucks are diverted •  Customizable Alarms and notifications •  Reliability, Visibility. Profitability improved.

Case Study: Ghana

Challenge: •  Cargo theft affecting revenue •  Hired guards a temporary solution •  800 kilometer corridor within 250

square kilometer area

Solution: •  Asset tracking software

from Savi •  Active tracking devices for trucks •  Live online mapping show

consignment status


Case Study: Ghana


Result: •  2500-3000 trucks under management •  Real-time visibility for all journeys •  Losses from theft reduced •  Certificate of Merit from the World

Customs Organization (WCO)


About Savi Mobile Tracking SystemTM (SMTS)

What Happens

Presentation Title © Savi Technology 2011 15

From Here….. ……..to Here?

? Where is it?

Is it safe?

Stop Loss!

The Value of Knowing

16

With SMTS …. You KNOW.

Presentation Title © Savi Technology 2012

17 Presentation Title © Savi Technology 2012

SMTS – it’s all about communication

Simple Workflow with Powerful Information

•  Step 1. Attach tracking and security tags to cargo. •  Step 2. Establish cargo journey on predetermined routes

•  User-defined origin/destination •  User-defined corridors/routes of travel •  Alerts for dwell times, deviations, departure and arrival

•  Step 3. Supervise journey activity •  Monitor all active journeys or assets •  Drill down to individual journeys •  View movement activity •  Manage security alerts

•  Step 4. Manage suspect journeys and cargo statuses in all phases •  Dispatch intervention and security teams!


Begin Journey


Comprehensive Real-Time Alerts


Common System Alerts

Tag Security alerts •  Tag Tamper •  Missing reads •  Tag armed •  Tag armed outside

origin •  Authorized for unlock •  Tag disarmed •  Tag not deactivated


Route alerts •  Origin departure •  Excessive dwell time •  Deviation from route •  Change direction •  Destination arrival

Tag Power alerts •  Low battery •  Vehicle moving

with engine off •  In-Vehicle

Master (IVM) is disconnected

Geo-fencing

•  Establishes a virtual “safe zone” for your assets

•  If your asset leaves the “safe zone” , a real-time alert is triggered •  unexpected stop •  assets being diverted, •  movement outside of the

zone


Total Visibility


• Playback of cargo movement

• Truck color shows your cargo status

• Significant events displayed

• At-a-glance dashboard overview of all active assets and journeys.

Drill down to a cargo


Manage the alert


User Controls for Application Security


Journey Management

•  Single dashboard to monitor multiple assets in one simple view

•  Monitor condition or status

•  See route deviations or progress and related alerts.

•  Drill down on individual shipments for details


Review Journey History


The Value of Knowing!

•  Curb theft and unplanned diversion of cargo

•  Improve revenue streams

•  Improve transit times, least cost routing, and save fuel

•  Reduce administrative costs of physical escorts

•  Uninterrupted movement of Cargo

•  Audit trails

•  Live location updates on all journeys and assets

•  Lower insurance premiums


Software Products and Engineering © Savi Technology 2012 30

About Savi

About Savi


Ghana

Kenya

•  Provides the leading active asset tracking platform

•  Industry pioneer: Helped to invent active tracking in early 1990s

•  Developer: Created standard-setting software and hardware

•  Innovator: Over 40 patents protect Savi-invented technology and business processes

•  Customer Driven: Clients include Commercial Companies, Governments, Logistics and Freight Service Providers, Military Agencies

32

Our Heritage

Savi has a proud past in the evolution of asset tracking technology usage by the U.S. and allied military, worldwide

Lockheed Martin/Savi Technology Proprietary and Confidential

•  Put to test in 1990 and 1991 in Desert Shield and

Desert Storm •  Our solutions helped track supplies, spare parts, and

shipments •  Savi solutions worked in the harshest conditions •  We gained a reputation for innovation and reliability •  RFID technology was mandated by US DoD in mid

2000’s •  DoD has standardized on our technology •  Products are the backbone of the world’s largest RFID

network

Management Presentation

33 Management Presentation Lockheed Martin/Savi Technology Proprietary and Confidential

PACOM CENTCOM

EUCOM

SOUTHCOM

229R / 157W Sites

12R / 20W Sites

206R / 150W Sites

218R / 693W Sites

NORTHCOM 697R / 1,042W Sites

AFRICOM 6R / 8W Sites

1 Week Activity: Tags Written –

16,139 Tags Read – 142,345

World’s largest active RFID network (52 countries) Critical enabler for In-Transit Visibility (ITV) – “no more iron mountains of supplies”

Data integration between automated information systems – fewer stovepipes

Currently Over 3,400 Read and Write Sites with

over 13,000 Satellite-Based

Tracking Systems United Kingdom 83R / 52W Sites

Australia 108R/ 2W Sites

NATO 21R Sites

Success Continues in DoD Environments

34

Solutions that Solve Real Problems

•  Asset Visibility Challenges §  Misplaced assets §  Asset status §  Asset environmental condition

•  Inventory Management Challenges §  Inventory counts cost (time & efforts) §  Up-to-date inventory on-hand

•  Asset Optimization Challenges §  Asset request & scheduling §  Asset dwell, availability, trending

•  Cargo In-Transit §  Optimal routing §  Shipment and vehicle security §  Real-time transport decision making

Smart Chain: Enterprise Asset Management

•  Enterprise-class software/ hardware platform

•  Enables intelligent management of shipments, inventory, sites, and asset coding

•  Supports RFID, UID, ANSI or GPS

•  Helps customers reliably locate assets and know their status.

•  Provides real-time operational data, detail reports, and alerts

•  Reduce logistics costs, eliminate loss, cut shrinkage •  Enables stronger performance guarantees.


Software Products and Engineering © Savi Technology 2012 36

Questions?


Documents

Economic and Operational Benefits of Cargo Tracking Technology