FLEET MANAGEMENT SOLUTIONS

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FLEET MANAGEMENT SOLUTIONS

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RYDERS TIRE PROGRAM

• Bridgestone and Bandag are our tire program
  partners
• On vehicles we buy new, we match tread to
  application for maximum life, fuel economy and
  performance
• Radial tires only, no bias ply

• We replace tires at tread depth of 4/32 or better
• Federal law is 4/32 on the front, 2/32 on the
  rear
• Less tire failure and better casings at 4/32
• Steer tires are always replaced with new for
  safety reasons, no exceptions
• Drive tires are typically replaced with retreads
• Exception is high mileage (over 125,000 miles per
  year) tractors and trailers use new primary
  reason is for casing

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RYDERS TIRE PROGRAM

• Majority of our replacement tires are premounted
  on rim to save replacement time and cost
• Ryder handles the tire warranty

• Our tire program results in long tire life
• Typical tire in an over-the-road application
• New Tire 400,000 plus miles
• Retread 250,000 plus miles
• Typical tire in a regional application 125,000
  to 150,000 miles, depending on geography
• Typical tire on a straight truck 60,000 to
  80,000 miles

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WARRANTY

• We are authorized by all the major truck OEMs,
  engine, component and component manufacturers to
  handle and process warranty work
• We do it for over 170,000 vehicles
• Ryder passes on warranty parts and labor credits
  as they are received from manufacturer if
  vehicles are pegged.
• Credits can be higher or lower than the cost of
  the repair
• Can take 60-90 days to receive back from
  manufacturer
• Ryders warranty applies on your vehicles which
  is more comprehensive than dealer warranties
• Length and what is covered

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RYDERS MAINTENANCE PHILOSOPHY

• Preventive Programs
• Operate with the understanding that breakdowns
  cost more than allowing maintenance the time to
  service the equipment properly. Worn components
  are replaced at regular intervals and repairs can
  be scheduled to reduce downtime.
• Lowest planned costs
• Maximum life for each component
  
• Ensures safety of the vehicles
• Annually complete nearly 600,000 PMInspections

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RYDERS SAFETY SERVICES
Standard

• DOT Compliance Assistance
• New/Current Driver Qualification Consists of the
  Following
• Motor Vehicle Record (MVR) check on each driver
• Driver and fleet risk ratings to help you assess
  driver/fleet accident potential
• Certificate of Motor Vehicle Violations
• Assistance in identifying problem drivers and
  submitting warning letters when necessary
• New/Current Driver Orientation
• To help get drivers off to a safe start we will
  provide them with
• DOT Regulations Handbook
• Drivers Vehicle Condition Report
• Accident Report Kit
• Driver Orientation Handbook
• Driver Logbook
• Annual Driver Re-evaluation
• Ryder will obtain MVRs and perform risk ratings
  for drivers on an annual basis. We will also
  help identify potential problems by producing a
  driver evaluation report which includes the DOT
  required Certificate of Motor Vehicle Violations.
• Assistance in Maintaining an Accident Register
• Local Ryder safety manager will help maintain a
  current accident register by providing yearly
  updates on all accidents brought to Ryders
  attention.

Up to 2 per Ryder power unit annually included
with FSL. Additional compliance services may be
purchased for a fee.
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RYDERS SAFETY SERVICES
Standard

• Annual Safety Meeting
• Every FSL customer is entitled to attend one
  annual group safety meeting covering relevant
  issues. A customer with 10 or more vehicles at
  any one district location, will be eligible for a
  private meeting.
• Safe Fleet/Driver Recognition Awards
• FSL customers drivers will qualify for
  participation in Ryders local and national
  awards programs. These programs are designed to
  build moral and motivate drivers to operate
  safely.
• Vehicle Maintenance Safety Inspections
• Ryder will perform our standard multi-point
  vehicle safety inspections during the customers
  regularly scheduled preventive maintenance or at
  the service island. We can help identify minor
  problems before they compromise driver or vehicle
  safety and escalate into a major expense for our
  customers.
• Safety Manager Assistance
• Local safety professionals are available by phone
  to provide quick, guidance on how to address
  transportation safety concerns. Upon request,
  safety managers will conduct a free on-site
  safety needs analysis to identify areas where the
  customer may benefit from some of our premium
  services.

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RYDERS SAFETY SERVICES
Enhanced Services
Enhanced services were developed in order to help
promote the insurance product line and reward
those customers for their additional business.
When Ryder extends Liability Insurance or assumes
physical damage responsibility as part of a Full
Service Lease, we will offer those customers
something extra. In addition to the Standard
Services, they will also receive the services
outlined below. All of these services, are
designed to help our customers minimize
accidents and their related costs.

• Driver Road Tests
• Ryder will conduct a limited number of road tests
  for customers drivers and provide a certificate
  of completion and evaluation report.
• Coordination of Physical Damage
• In the case of an accident, a Ryder
  representative will coordinate the repair of
  physical damage to those Vehicles for which Ryder
  has assumed physical damage responsibility. We
  will procure repair estimates from qualified
  vendors and verify that repairs are completed in
  accordance with manufacturers specifications and
  Ryder requirements.
• Vehicle Spill Services
• A fuel spill kit will be provided for each
  vehicle leased from Ryder. To help ensure
  effective use of the kit, Ryder also provides a
  training video for the customer. Finally,
  Ryders Spill response Center will help
  coordinate spill containment, clean up and
  regulatory reporting. If the spill kit is used,
  Ryder will provide a replacement free of charge.
  
• Accident Prevention Seminar
• Ryder will present a customized accident
  prevention seminar geared especially for the
  customers safety needs. This is in addition to
  the annual safety meeting included in the
  Standard Services.
• DOT Compliance Review
• Applying the format used by DOT auditors, Ryder
  will review the customers DOT files, help
  identify regulatory deficiencies and recommend
  improvement strategies.

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RYDERS SAFETY SERVICES
Premium Service
Ryders premium services are designed to help our
customers stay abreast of the latest safety
issues delegated by the multiple government
agencies (DOT, EPA, and OSHA). The local Safety
Manager should work with interested customers to
identify which optional, premium services are
most appropriate for their industry and business
goals and advise them of the associated costs.
These premium services access a range of DOT,
EPA and OSHA issues.

• DOT Premium Services
• DOT Compliance Reviews
• Applying the format used by DOT auditors, Ryder
  will review DOT files and help identify
  regulatory deficiencies and recommend improvement
  strategies.
• Alcohol and Drug Testing
• We will coordinate al controlled substances and
  alcohol testing required by DOT, perform
  regulatory-required training and assist our
  customer with regulatory reporting and policy
  development.
• Log Audit Training
• Ryder will conduct training for drivers on how to
  properly maintain logs.
• Road Testing/Driver Evaluation
• Ryder will perform road tests or driver
  improvement evaluations. Ryder will provide a
  record of the road test for DOT purposes and/or a
  formal report on the strengths and improvement
  needs of the driver(s) evaluated.
• Driver Improvement Assistance
• We will provide educational on the road
  evaluations for customers employees who are
  required to obtain a CDL.

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RYDERS SAFETY SERVICES
Premium Service

• Education/Training
• At customers request Ryder can assess
  education/training resources and design a
  specialized training program that will fit
  customer needs and budget.
• OSHA Premium Services
• If our customers need compliance tools, an
  in-house comprehensive regulatory compliance
  assessment, training for employees or management,
  or compliance program development assistance, we
  will be available to deliver these services in
  such regulatory areas as
• Hazard Communication, Personal Protective
  Equipment, Lockout/Tagout and OSHA Compliance
  Training.
• Premium Environmental Services (to be delivered
  by Environmental Services)
• Storage Tank Services
• Ryders Environmental Services Department will
  review customers storage tank system, analyze
  current and future product usage, and recommend a
  plan that will help meet or exceed regulatory
  compliance requirements.
• Vehicle Spill Services
• A fuel spill it will be provided for each vehicle
  leased from Ryder. Used properly, the kit can
  minimize damage and limit cleanup costs. If the
  kit has been used, Ryder will replace it free of
  charge. To ensure effective use of the kit, Ryder
  will provide a training video for drivers.
  Ryders Emergency Spill Response Program will
  quickly mobilize the resources needed to respond
  to a vehicle fuel spill. Using a 24 hour,
  seven-day-a-week emergency hotline, the response
  is fast, professional and thorough, potentially
  reducing clean-up costs and future liability.
• Environmental Site Assessment
• Ryder will perform an environmental investigation
  of properties proposed to be acquired or vacated
  in order to help reduce future liability
  associated with environmental conditions.
  Property transfers can create liabilities for
  both owners and operators. As a buyer, seller or
  renter, before the customer decides to occupy, he
  will need to know the compliance history of the
  property, actual or suspected contamination and
  whether or not any threat of leaks currently
  exist on the property.

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RYDERS SAFETY SERVICES
Premium Service

• Environmental Auditing
• An Environmental Compliance Review of customers
  facilities will help identify local, state and/or
  federal compliance status. Ryder will review
  current reporting procedures, analyze materials
  management, review waste management, fuel storage
  and spill response programs and recommend changes
  to improve compliance throughout the customers
  business.
• State Trust Fund Reimbursements
• Ryders extensive knowledge of intricate
  petroleum state trust fund reimbursement programs
  and our experience in successfully recovering
  millions of dollars can help identify eligible
  expenses from past, present and future tank
  remediation projects.
• Storm Water Management
• Storm water is a potential source of pollution
  that often requires a permit. Requirements are
  industry specific and differ from state to state.
  Ryder can assist in
• Determining if customer facility needs a permit
• Preparing a permit application
• Complying with permit requirements including
• Record keeping and plan development
• Developing a storm water pollution prevention
  plan
• Developing an employee training program
• Documenting compliance activities and submitting
  annual reports
• Vehicle Wash Water Issues
• Federal, state and local laws regulating vehicle
  wash water are broad and far reaching. Penalties
  for noncompliance can include fines of 25,000
  per day and imprisonment for up to 3 years.
  Ryder has experience dealing with wash water
  systems and can help develop a cost-effective
  strategy to meet regulatory requirements.

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RYDERS SAFETY SERVICES
Premium Service

• Spill Plans
• Facilities where storage tank capacity exceeds
  specified thresholds are required to develop and
  implement a Spill Prevention Control and
  Countermeasure (SPCC) plan. Ryder can assist in
  determining if an SPCC Plan is needed at a
  specific facility, provide guidance in developing
  a plan to fit facility needs and provide employee
  training as needed.

If local safety managers have expertise in
certain areas, they may choose to offer a
specialized service for an interested customer.
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ACCOUNTING TREATMENT
On- or Off- Balance Sheet

• Off-Balance Sheet means that neither an asset nor
  a liability are recorded on the lessees balance
  sheet. However, there is a footnote disclosure in
  the Notes to the Financial Statements. From an
  accounting perspective, this is called an
  Operating Lease.
• Lease Accounting - Leases are classified for
  financial reporting purposes as either Capital
  (on the lessees balance sheet ) or Operating
  (off the lessees balance sheet).
• The accounting determination of On- or Off-
  Balance Sheet treatment (Capital or operating
  lease classification) is governed by Financial
  Accounting Standards Board (FASB( Statement 13,
  Accounting for Leases.
• FASB-13 lists four criteria or tests that are
  used to determine whether the lease agreement
  points to a purchase of the equipment by the
  lessee or to temporary usage only. If any one of
  the four tests is met, the equipment must be
  classified as a Capital Lease and must appear as
  an asset on the lessees balance sheet. If none
  of the criteria is met, the lease is considered
  an operating lease and does not appear on the
  lessees balance sheet.

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ACCOUNTING TREATMENT
On- or Off- Balance Sheet

• An Off-Balance Sheet Structure lowers the
  companys asset base. The companys ROA ratio
  improves in comparison to an On Balance Sheet
  Structure (ownership or lease). This could mean
  the company would appear more attractive to
  potential investors, or it may help to bring the
  ROA ratio in alignment with the industry
  standard.
• Since some organizations allocate overhead based
  on total assets, a division or department with an
  Off-Balance Sheet Lease would have lower asset
  base. This could mean a lower overhead allocation
  and would result in higher income on a project.

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RYDERS SAFETY SERVICES
Capital Lease

• The FASB-13 criteria used to determine lease
  classification are
• Ownership transfers to the lessee by the end of
  the lease term
• The lease contains a bargain purchase price
  option
• The lease term is equal to 75 or more of the
  estimated economic life of the lease property.
• The present value of lease payments equals or
  exceeds 90 of the fair market value of the
  property at the inception of the lease.
• To qualify as a Capital Lease, only one of the
  above four criteria needs to be met.
• Note Criteria 3 and 4 are NOT applicable if the
  beginning of the lease term occurs during the
  last 25 of the assets economic life.

• Operating Lease
• To qualify as an operating lease, this criterion
  applies
• The lease meets none of the criteria for a
  Capital Lease.

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RYDER JOB DESCRIPTION/PERSONNEL
Tech 1, Tech II, Tech III, Tech IV Mechanics

• Provides quality maintenance and service to your
  company
• Specific Responsibilities
• Tech I
• This category is used for the individual learning
  the truck mechanic trade. The primary
  responsibility is to assist an experienced
  mechanic and to provide preventive maintenance
  work with proper training and supervision.
• Tech II, III
• This category is used for the individual with
  limited experience in the truck mechanic trade.
  This employee should assist more experienced
  mechanics and perform specific or general duties
  as directed. This person should be proficient in
  preventive maintenance work and should be able to
  perform such with limited supervision.
• Tech IV
• An employee in this category must have sound
  experience in the latest technology related to
  the truck mechanic trade and should take
  advantage of any training available to keep
  updated with this rapidly changing technology.
  This employee should be able to completely
  diagnose, repair, rebuild, overhaul or replace
  any mechanical, electrical or other component
  failure on a motor truck or related equipment.
  Must be proficient in the use of all tools of the
  trade including, but not limited to, diagnostic
  equipment and shop manuals. Requires little
  supervision, is able to instruct and train others
  in the trade.

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RYDER JOB DESCRIPTION/PERSONNEL
Customer Service Manager (CSM)

• Contact customer to assess maintenance related
  causes of issues
• Determine that customer is at risk
• Analyze measurements and other indicators to
  identify customer's likelihood to renew business
• Contribute to or develop plans for resolving
  maintenance issues for customer
• Oversee correction and prevention of maintenance
  problems to ensure customer retention
• Discuss the status of service and operating
  business relationship with customer on a periodic
  basis
• Ensure that information about customer's account
  is shared on an as-needed basis with other
  departments
• Coordinate with customer on schedule for visits
• Review Customer Management Surveys to identify
  potential maintenance related weak areas
• Resolve difficult disputed maintenance related
  bills
• Resolve major vendor specification or mechanical
  issues
• Ensure communication among all Ryder employees
• Maintain contact record
• Monitor and manage shop performance against goals
• Conduct regular shop visits
• Inspect and approve RPM units and take-over units
• Coordinate warranty issues and repairs for sold
  units
• Analyze shop reports to determine trends and
  identify exceptions/weaknesses
• Provide reports, status updates to customer

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RYDER JOB DESCRIPTION/PERSONNEL
Roles and Responsibilities - Service Support
Leader (SSL)

• Service Support Leader (SSL)
• Conduct technical, computer system, EPA, new
  initiatives training
• Consolidate training needs identified by shop
  management or customer
• Establish training priorities for Customer
  Business Unit (CBU) and customer
• Communicate identified training needs
• Develop training plans and schedules
• Update corporate training records of completed
  training
• Assist shop management in establishing training
  plans
• Follows up on local implementation of training
  plans/schedules/vendor training
• Adapts training to varying facilities/equipment/to
  ol condition
• Assist in developing new training programs
• Analysis and Consulting
• Identifies problems/issues among maintenance shop
  employees
• Analyzes issues to determine root causes
• Distinguishes training needs from other needs
• Consults on technical and new initiative issues
  with shop personnel
• Evaluates progress of new initiatives in the
  shops
• Conveys potential needs to corporate management
  and staff

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RYDER JOB DESCRIPTION/PERSONNEL
Roles and Responsibilities - Service Team Leader
(STL)

• Conducts Yard Checks ...
• Schedule/assign work for technicians and SEs
• Inspect new and out service units for physical
  damage
• Determine when specific repairs/work is to be
  out-sourced
• Determine work to be performed on new units
• Plan weekly workload
• Schedule maintenance on shop equipment
• Set employee and shift schedules
• Endure information is accurately communicated
  between shifts
• Coordinate the maintenance of shop/yard
• Purchase shop tools and equipment
• Outside Vendor Selection Use ...
• Select outside vendors
• Negotiate service, terms, conditions, and charges
  worth outside vendors
• Approve repairs above established limit with
  outside vendors
• Evaluate vendor service work

• Financial Control ...
• Review P.O. and R.O. reports weekly to assess
  accuracy, correctness
• Approve P.Os, ROs, VCNs
• Approve weekly payroll time
• Review warranty credits and denials
• Conduct periodic physical inventories and set
  inventory min/max levels
• Safety and EPA ...
• Determine extent and damage of on-premise
  accidents
• Complete accident report and interface with
  police, customer, and safety for off premise
  vehicle accidents
• Implement fuel spill procedures

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RYDER JOB DESCRIPTION/PERSONNEL
Customer Service Coordinator (CSC)

• Handle incoming phone calls
• Receive incoming DVCRs from drivers and list on
  schedule board
• Follow-up with customer on follow-up, road calls,
  scheduled units, units not done on time
• Handle road calls
• Clarify service/repair needs with drivers
• Coordinate extra equipment to meet customer's
  needs
• New Vehicles
• Complete delivery paperwork on new vehicles
• Generate VCNs
• Arrange vendors for new vehicles (decals, etc.)
• Arrange licensing and permits
• Create vehicle files
• Ensure readiness of new vehicles
• Outside Vendors
• Coordinate work with outside vendors
• Arrange transfers of vehicles to and from
  customer
• Get estimates from vendors on all outsourced work

• Parts
• Receive and process vendor invoices to POs
• Close POs
• Review special order parts shelf
• Receive parts
• Tag parts and stock
• Review min/max levels
• Print recommended parts orders
• Review stock against RPO
• F.I.S. and S.M.S. System
• Create purchase orders
• Create repair orders
• Input parts on repair orders
• Add tasks to repair orders
• Close repair orders
• Enter VCNs into FIS
• Approve daily payroll times
• Update vehicle information in system

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SHOP MANAGEMENT SYSTEM

• Computer diagnostic equipment onboard to service
  all major engines and electronics
• Parts room stocked to your fleet specifications.
• Shop management systems automate the shop floor
  and data collection.
• Satellite data transfer.
• Provides customers with complete vehicle
  history, maintenance records, and performance
  reports.
• Automated inventory management to ensure
  appropriate levels and control obsolescence and
  shrinkage.
• Advance and daily planning to provide scheduled
  maintenance services.
• Scheduling of work based on customer requirement.

• Assigns work based on technician qualification.
  The qualifications are built in the system.
• Automated yard check function by way of the
  button on all Ryder units. Just touch the
  button with the handheld and the system does the
  rest .
• Will identify and place parts orders .
• Tracks unit maintenance history, automatically
  tracks follow-up tasks.
• Automated repair order processing.

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HUMAN RESOURCES
Differentiators

• Ryders Maintenance Services are distinguished in
  the following ways.
• The experience and tenure of Ryder Maintenance
  Personnel (many with 20 years experience).
• Ryders involvement in, and leadership of,
  national organizations that deal with current
  maintenance trends, issues, policies, and
  regulations.
• Ryders commitment to the Maintenance Promise.
  This is a set of standards that allows us to
  serve the maintenance needs of a diverse customer
  base through a commitment to state-of-the-art
  technology, effective and systematic parts
  delivery, and the anticipation and repair of
  problems so they do not adversely affect our
  customers levels of service to their clients.
• 40 hours per maintenance employee isinvested
  annually in training.
• 70 on-going technician qualification rate.

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PARTS INVENTORY
Your Inventory

• Proper parts inventory critical to minimizing
  fleet downtime
• Your existing parts inventory is valued and
  assessed for obsolescence
• We supplement your current inventory by bringing
  in a new bar-coded parts inventory based on your
  fleet configuration
• Parts inventory levels are system-maintained, so
  re-orders occur automatically to prevent
  stock-outs

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