The Evolution of Enterprise Management Software for Trucking. Dave Mook- COO/CTO TMW Systems, Inc.

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1 The Evolution of Enterprise Management Software for Trucking Dave Mook- COO/CTO TMW Systems, Inc.

2 Agenda Who we are Technology stack for trucking companies Vision

3 TMW Systems - Who We Are Largest provider of enterprise management software for the trucking industry Over 1,000 active carrier, private fleet, 3PL and brokerage customers 175,000 power units under management across 5,000 terminals 260+ employees Support and Development operations in Cleveland, Indianapolis, Vancouver Growing and Profitable $44M in TTM Revenues of as of 12/31/ % 4 Year CAGR Key Customer Benefits Increased Efficiency, Improved Customer Service, Driver Retention

4 Transportation Company s IT Solution Set Software solutions that enable trucking companies to manage and optimize their operations. Order Entry Planning Dispatch Exception Mgt. Billing Settlement Accounting Maintenance Order Scheduling Order Import View All Shipments Auto Rating Load Balance Scheduling Optimize Route Load Qualification Driver Assignment Assignment Monitoring Logs On Time Delivery ETA Alerts Out of Route Alerts Accounting Interface Invoice Accuracy Multiple Currency Accessorials Multiple formats Automatic Processing Electronic Funds Transfer Advances Accounts Payable Accounts Receivable General Ledger Management of: - Equipment - Shop - Parts/Purchasing - Facility -Fuel -Warranty -Bar Coding BULK REFRIGERATED DEDICATED VAN FLATBED PRIVATE

5 Transportation Information Ecosystem Order Capture Planning Dispatch Exception Mgt. Billing Settlement Accounting Maintenance Order Entry EDI, ecommerce, order downloads Commitment management/ forecasting Load Balance Scheduling Optimize Route Load Qualification Driver Assignment Brokerage Assignment Monitoring Logs On Time Delivery ETA Alerts Out of Route Alerts Accounting Interface Invoice Accuracy Multiple Currency Accessorials Multiple formats Automatic Processing Electronic Funds Transfer Advances Accounts Payable Accounts Receivable General Ledger Management of: - Equipment - Shop - Parts/Purchasing - Facility -Fuel -Warranty -Bar Coding Common Data Repository Mobile Comm M EFT Fuel Tax Driver Advances Trailer Tracking Maps BI Imaging Fuel Optimzation Mileage Services Freight Matching EDI Qualcomm GeoLogic PeopleNet On Route D2Link Great Plains ComData EFS FleetOne ALK Inter- Tax OTS ComData EFS Qualcomm SkyBitz AirIQ ALK Rand- McNally Cognos Results- Now Dawg EBE Microdea Pegasus TMW Imaging ComData IDSC ALK Rand McNally ProMiles DAT Get Loaded Kleinschmidt ProEdi

6 Complementary Products BI-Results Now TM Command Center BAM-The Dawg TM BPM-WorkCycle Mobilecomm TotalMail D 2 link Productivity/GUI LoadView LoadView XT Driver Retention- DriverSeat DriverZone B2B-CarrierHub Optimization- Intelligent Dispatch Assistant- IDA Border Compliance- ACE E-Manifest Imaging

7 ATA s Top 4 Issues & Technology Solutions Driver Shortage / Driver Retention Home-time monitoring, utilization maximization, real time directions, driver communication capture, and driver portal Fuel Issues Fuel optimization Hours of Service Proactive HOS monitoring, electronic logs, shipper/consignee detention monitoring. Congestion Traffic queries integrated into mobile communications

8 Today s state of the art Business Activity Monitoring Highly configurable business applications Ubiquitous mobile communications Customer Self-Service KPI & Analytics Alerts Notification Event & Process Management The Dawg TM Logistics Visibility

9 Vision #1 Total Supply Chain Visibility An Interconnected World Enabled by Service Oriented Architectures (SOA), Web Services, XML messaging, EDI and yes even RFID Complete supply chain visibility EPCglobal S-GTIN (Instance level info) SUPPLIER EPC-IS Invoices, Ship Notices EPC-IS Where is it? EDI EDI DISTRIBUTOR Purchase Orders Where EPC-ISthe %&!! is all my What is stuff? Boy am it? I in deep $#@@ RETAILER GDSN GTIN (Baseline info)

10 Supply Chain Visibility TMS planning Problem: Load tendering rules based on carrier commitments and NOT on current capacity information Empty trucks are driving by loads all across the land Capacity inputs into TMS planning required Intransit visibility Ubiquitous mobile communications + web/web services + reliable data + standards means everyone could know status and exceptions at all times Problems: Mobile communications limited rollout, data unreliable or not in standard formats. Issues largely solved for high value cargo and the solution will continue to progress down market.

11 TMW Vision # 2 The Automation of Intelligence Optimization, expert systems, the automation of intelligence.

12 TMW Vision: Adding intelligence Takes cost out / adds profit in / improves both customer and driver experience Continued Evolution & Proliferation of Business Intelligence Engines From Scorecards to Alerts to enforcing business practices to predictive intelligence. Next frontier is predictive intelligence: where will it break? How can we prevent it Real time network analysis which assists you in Pre-positioning equipment Load acceptance / load brokerage Pricing Maximizing Driver Miles (Lower Turnover)

13 TMW Vision: Adding intelligence Optimization & Advice Load consolidation & routing Shipment tender shortest route, lowest cost Fuel optimization power load match re-power optimization Bid response analysis How to price a request, what to accept, where to partner, effect on network balance

14 TMW Vision: Future State Technology demands will mean fewer in house developed systems Individual companies reap the benefits of commercial system Tailored application suites Each market niche will have tailor applications to precisely match their businesses and support best industry practices Unified supply chain visibility The internet will knit it all together Extended supply chain Globalization, world-wide trade, off-shore manufacturing will all add complexity. That complexity will be largely hidden to the carrier-- who will need to be a specialist. 3pls will grow Movement of information becomes as import as the movement of goods. Intelligence/ optimization / cross database networks Large carriers, logisticians, and 3pls will ever increasing demands

15 Best Practices Centralized planning & accounting/ decentralized execution Centralized planning can at a minimum be cross terminal visibility Technical requirements: shared database or cross database queries, management dashboard Procedural requirements: Multi-terminal authority must exist, appropriate reward systems, routine use of performance metrics, well defined procedures. Centralized planning can at a maximum be centralized order acquisition, centralized planning and central dispatch All CSRs, planners and dispatchers are in one location. Only driver & terminal managers are remote locations Centralized back-office functions Specialization of task, staff efficiencies and centralized audits Settlements, invoicing, accounting, HR, safety, management Electronic data feeds Cost of order acquisition for a machine is less that 50 cents. For a human, more than 10 dollars Ditto for invoicing

16 Thank You - Any Questions? dmook@tmwsystems.com

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