CHRW Overview Presentation

1
Transportation Best Practices
May 2007
2
Overview of C.H. Robinson Worldwide

• 102 year Tradition of excellence (founded in
  1905)
• Leading 3PL of transportation, distribution,
  sourcing and other supply chain services
• 2006 gross revenues in excess of 6.5 billion
• Over 6,700 employees in 214 offices worldwide
• Over 5.2 million shipments delivered for over
  25,000 customers in 2006
• Contracts with over 45,000 carriers worldwide
• Publicly owned and traded on NASDAQ (CHRW)
• Ranked 349 on Fortune 500 (Ranked 1 in our
  industry)

3
Overview contd
. 4th largest produce / sourcing companies in
the North America.

• CHRW had its beginning in the buying and selling
  of produce
• 2006 Sourcing sales were 8.7 of CHRW gross
  profit
• 2006 Produce volume, over 90 million cases sold
• 430 employees dedicated to produce and
  perishable transportation
• 28 produce offices in major cities and growing
  areas

4
North American Network
Now Open Youngstown, OH
5
Overview Contd
WHAT WE DO Manage and execute supply chain
activities for our customers

• Basic Services
• Transaction sourcing/transportation
• Product development
• Procurement
• Transportation
• LTL
• Carrier/mode management

• Value Added Services
• Logistics
• Replenishment
• Facility management
• Business category analysis
• Supply chain analysis
• Total project management

6
Driver Availability Ensuring Capacity Meets
Supply

• Collaborative Capacity Planning
• Product Need Drives Mode
• Sustain and Grow the Carrier Base

7
Driver Availability (Impact)

• Loyalty at a Cost
• Volatility of Rates
• Supply Issues

8
Loading How Best Practices impact efficiency in
loading a shipment.

• Supply Chain Efficiency
• Freshest product to market
• Capacity Increases

9
Unloading Impact of poor receiving practices

• Supply Shortages
• Inflated Rates

10
Rejection Process (Important steps to follow)

• Notify All Parties of the Issue
• Be Available
• Document Everything
• Seek Guidance from Peers and Industry Experts

11
Rejections - How to ensure loads arent rejected

• Teach/Train the Driver/Carrier
• Define Your Expectations
• Be Proactive/Over Communicate Your Expectations
• PULP EVERY PALLET
• Check Product Temps Daily

12
Rejections - Impact of a rejected load

• Sub Par Quality Product in the Marketplace
• Rates Increase
• Supply Issues/Shortages

13
Waiting Times How to communicate delays

• Call
• Carrier to call the shipper/receiver immediately
  of the delay.
• Shipper/Receiver to call carrier to provide new
  pick up/delivery time and verify new time can be
  met.
• Follow up
• Follow up with an email/fax reviewing discussion
  and requesting new pick up/delivery times.
• Notice gives customers a chance to fill shorts
• Customers require updates so they can either buy
  product to cover the orders, halt or reschedule
  production and advise receiving of delays to
  limit staffing.
• Avoid/limit penalties for missing original
  delivery times.

Waiting Times Why communicate?
14
Lumper and gate fees Who is responsible?

• Unloading responsibilities
• Who owns it?
• Receiver
• Clearly define costs to each carrier prior to
  negotiating terms
• How is unloading paid? (Avoid cash transactions)
• Pallet exchange policy