The CarrierPoint Option?

1
The CarrierPoint Option?

• October 19, 2004
• SCM Conference Call

2
Contact

• Meeting at CLM
• John C. Huggins
• Norcross, Georgia [phone]
• 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
Each row represents a shipment Each row represents a shipment Each row represents a shipment
ORG3ZIP DEST3ZIP ORIG CITY ORIG STATE DEST CITY DEST STATE SHIPDATE DELIVER DATE PICKUP TIME DELIVER TIME
38010 21045 MEMPHIS TN ATLANTA GA 4/19/2001 4/19/2001 1430 1430
38010 21045 MEMPHIS TN ATLANTA GA 4/20/2001 4/20/2001 1600 1600
38010 21045 MEMPHIS TN ATLANTA GA 4/20/2001 4/20/2001 1800 1800
38010 21045 MEMPHIS TN ATLANTA GA 4/20/2001 4/20/2001 1430 1430
38010 21045 MEMPHIS TN TAMPA FL 4/23/2001 4/23/2001 1600 1600
38010 21045 MEMPHIS TN TAMPA FL 4/20/2001 4/20/2001 1800 1800
38010 21045 MEMPHIS TN TAMPA FL 4/20/2001 4/20/2001 1430 1430
38010 21045 MEMPHIS TN TAMPA FL 4/20/2001 4/20/2001 1600 1600
38010 21045 MEMPHIS TN TAMPA FL 4/20/2001 4/20/2001 1800 1800
38010 21045 MEMPHIS TN TAMPA FL 4/23/2001 4/23/2001 1430 1430
38010 21045 MEMPHIS TN TAMPA FL 4/23/2001 4/23/2001 1600 1600
38010 21045 MEMPHIS TN TAMPA FL 4/23/2001 4/23/2001 1800 1800
38010 21045 MEMPHIS NT TAMPA FL 4/23/2001 4/23/2001 1600 1600
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Shipper data to be furnished (2)
SCAC AMOUNT MILEAGE EQUIP Stops Stop off Charge Comments / Instructions
PSQA 224.66 63 Flatbed 1 50  
PSQA 215.82 57 Flatbed 1 50  
SUBF 224.88 72 Flatbed 1 50  
SUBF 222.72 72 Flatbed 1 50  
PSQA 216.36 63 Flatbed 1 50  
PSQA 221.72 63 Flatbed 1 50  
PSQA 217.43 63 Flatbed 1 50  
PSQA 217.41 63 Flatbed 1 50  
PSQA 221.83 63 Flatbed 1 50  
PSQA 218.18 63 Flatbed 1 50  
PSQA 224.93 57 Flatbed 1 50  
PSQA 220.84 57 Flatbed 1 50  
PSQA 224.93 57 Flatbed 1 50  
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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
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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
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
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Rate base setup for combined moves can be
uploaded from Excel
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Rate base setup for combined moves
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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

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(No Transcript)
21
Settings for selecting loads to consider for
combination
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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
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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

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View Shipment Dashboard

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

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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

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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

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• 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

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• 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)

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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

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• 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
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

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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 carriers 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

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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)

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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

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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/depart
  ments to
• Measure compliance

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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)

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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)

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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 competitors shipments
• Carriers can see loads tendered to them and loads
  available on spot market

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Supply Chain Contribution
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Loading Unloading Process
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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

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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 WalMart
• JIT II methods - Bose
• CPFR methods Retailers with extensive
  promotions
• ECR methods Grocery Industry
• 13 week rolling forecast method - Dell