Transportation Process Framework

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1 ation Process Framework Qualify ation Partners Data Orders for Plan Schedule Book Resources and Monitor Execution Approve Shipment Charges Monitor ation Performance CORE TMS VALUE TENANTS Reduce transportation spend through optimized transportation sourcing, planning, execution and settlement. Gain operational efficiencies through automating manual transportation functions and managing by exception. Gain detailed visibility of in-transit inventory and all associated transportation costs. Single repository (Control Tower) for all transportation data and metric measurement

2 Global ation Platform Control Globally Execute Locally Centrally Plan, execute, track and settle for all orders / shipments - All divisions - All product flows (inbound, outbound, internal) - All modes: truck, ocean, air, rail, private / dedicated fleet Visibility across the global network Accommodate line of business, geographic region, and supply chain flowspecific business practices - Workflows, business logic, reports, etc. Using multiple languages and currencies - User interface configuration by region / country, user groups All operational information in one location - Centralized visibility - Centralized reporting Single set of integration points for customers, carriers, partners Single information technology infrastructure to support

3 Multiple Tenant Access Top Level Users Full Visibility Parent Company Shared Service Logistics Domain Users Secured Visibility Configure Software for Specific Look & Feel Business 1 Business 2 Business n Specific rules and data by domain provides single instance support for multiple companies, divisions, or other business entities Access role-based info, including specific views for trading partners Prevent other users from accessing non-privileged info or actions

4 Trading Partner Collaboration Enablement Acknowledge PO / Sales Order Confirm ship date Confirm ship quantity Issue Purchase Order Request pick-up View Pick Up Status Supplier Planners Service Providers Ship confirmation Route & Pick Up Schedule data Optimize shipments Approve and Secure Resources Monitor activities Dynamic re-routing Receive and accept tenders/bookings Shipment management Review shipment status Provide Status updates ation ment Review shipment status Provide status updates Alerts Material Shortages Date Changes Cross-Docks Pool Points Ports Etc Customers Receiving

5 Service Provider and Rate ment Qualify ation Partners Data Orders for Plan Schedule Book Resources and Monitor Execution Approve Shipment Charges Monitor ation Performance TMS Enabling Capabilities Robust and flexible rating engine supporting all modes of transportation Ability to model detailed accessorial charges Ability to enable frequent rate updates to be used in optimization Support for buy and sell rating ment of service provider insurance compliance

6 Global Rating Engine Flexible Rate Models Compare Rate & Route Options Support for all modes of transport Truck, rail, ocean, barge, air, parcel, etc. Attribute based rate structures Attributes of Shipment, Order, Product, Location E.g., Lane, Commodity, equipment, distance, weight, volume, arbitraries, etc Bracket pricing (e.g., weight/distance breaks) Accessorial Surcharges Fuel, special services, BAF, CAF, terminal fees, detention/demurrage, etc. Multi-Currency E.g., Freight in Euros, terminal fee in Chinese Yuan Carrier Commitments Minimum business levels: Percentage or absolute Buy vs. Sell Buy transportation cost Sell transportation revenue

7 Orders and Planning Qualify ation Partners Data Orders for Plan Schedule Book Resources and Monitor Execution Approve Shipment Charges Monitor ation Performance TMS Enabling Capabilities Web based vendor portal enabling on-line booking request Immediate Visibility of booking requests internal and externally Optimization of routing and consolidation of order releases Easy modification/adjustment to carrier and routings as needed

8 Supplier Request for Booking

9 Planning and Optimization Optimizers Load Consolidation Multi-Stop Consolidation Multi-Leg Multi-Mode Common Leg Consolidation Pooling/Cross Dock Multi-Tier Network Continuous Moves Load Configuration Engines and Rules Itineraries & Profiles Service Time Calculation Rating Resource Capacity and Commitments Container Optimization Other rules and constraints Optimized Decisions Route Mode Timing Equipment Consolidation Service Provider

10 Complex Multi-Mode Options Supplier CHN INCO Terms: EXW SSL Service: PTP Port CHN Port USA Customer USA INCO Terms: EXW SSL Service: PTD INCO Terms: FOB SSL Service: PTP

11 Multi-Tier Multi-Leg Planning What s the optimal port of export? Port of import? Consolidation: how to maximize container utilization? Which voyage / vessel to book? How to plan inland transportation? Example Multi-Leg & Multi-Mode Route LTL/TL Consolidation Dray Ocean Dray Rail Dray

12 Booking and Execution Monitoring Qualify ation Partners Data Orders for Plan Schedule Book Resources and Monitor Execution Approve Shipment Charges Monitor ation Performance TMS Enabling Capabilities Enable the automated carrier booking and tendering process Real time shipment tracking via EDI integration Proactively alert staff of key process exceptions Ability to divert shipments in cost effective manner

13 Enabling ment By Exception Controls Automation Visibility By Exception

14 Supply Chain Event ment Anticipate Analyze Resolve Collaborate Monitor for Planned and Actual Events Evaluate Conditions Execute Automatic Response Notify Affected Parties Configure monitors to track orders against shipment milestones Confirm events or identify missed, abnormal, and outof-sequence events Customize logic to interrogate all incoming events Trigger follow-up actions according to pre- defined conditions & thresholds Automatically perform actions (e.g., re-planning) in response to common problems Initiate resolution workflow based on changing conditions Notify / alert internal and external users or IT systems of an event or action Prompt users for response and process iteratively until resolved

15 Proactive Visibility

16 Visibility = Adaptability Visibility is a pre-requisite for Adaptability Visibility is THE key to ation and Logistics management and control

17 Settlement and Performance Monitoring Qualify ation Partners Data Orders for Plan Schedule Book Resources and Monitor Execution Approve Shipment Charges Monitor ation Performance TMS Enabling Capabilities Invoices within tolerances automatically processed for payment Cost visibility to PO line level for improved tracking of landed costs Ability to measure and report on key internal and service provider performance metrics

18 Auto- Pay Match & Pay ation Settlement Carriers Invoices via web or integration Match, validate, and pay invoices; flag exceptions Pay based on actual shipment activity and contract rates Allocate costs to orders & order lines for billing Apply appropriate GL codes based on order characteristics Calculate profit margin for each shipment VAT & NFRC* Bills via web or integration Business Units/ Customers Intra-company cost transparency AR & AP Vouchers Allocated costs Payments Financial System Payments *Value-Added Tax and Non-Freight Related Charges

19 Detailed Freight Cost Allocation Freight costs allocated to each order & order line Planned Costs Estimated freight charges per shipment Allocate to order & line item level Rules/metric based allocation formulation Actual Costs Invoiced freight costs Allocate to order & line item level Compare to planned costs Cost Analysis / Business Intelligence Attribute based G/L Coding Multi-dimensional views of freight costs: product, customer, location, lane, mode, carrier, etc Trends, targets, automated alerting

20 Carrier KPIs & Score Cards

21 Drill Down Analysis

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