Northern Continental Logistics

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1 Excellence in Logistical Services Profile: Northern Continental Logistics 204 Pearl Street, Suite 301 New Albany, IN (812) FAX (812)

2 Excellence in Logistical Services NCL Awarded GLI R6 Award Greater Louisville Inc. (GLI) Logistics Network award for technology (R6 Router Award) was given to Northern Continental Logistics at GLI's annual awards luncheon on October 28, Receiving the award on behalf of NCL were Charles Harrett, President, and Kathryn Leamer, Vice President. Smooth moves - Logistics company saves clients money by handling outsourced shipping President Charles Harrett, right, and vice president Kathy Leamer, left, are co-owners of Northern Continental Logistics Inc.

3 Excellence in Logistical Services Smooth moves - Logistics company saves clients money by handling outsourced shipping Business First of Louisville - August 2008 With the price of diesel fuel having set a record high earlier this summer, companies that ship things always are looking for ways to save money on freight charges. That s where Northern Continental Logistics Inc. can help, said president and co-owner Charles Harrett. The 10-year-old company is a third-party logistics provider. It has no trucks, trains, planes or barges of its own, but it works with companies that do to get the best price on shipping. Harrett said his company normally can save a client about 50 percent on fuel surcharges that shippers are charging these days, as well as 10 percent to 20 percent on total freight charges. The company does this in several ways: Auditing the client s freight bills for the past six months. This identifies instances where shippers have overcharged the client money that the client can recover. It also helps Northern Continental create a profile of the client s shipping needs. Sending the profile to more than 30 carriers, which competitively bid for the client s shipping business. Many clients don t know that they can negotiate factors such as fuel surcharges, Harrett said. Giving clients Web-based information storage and retrieval for their logistical expenses and needs, which allows them to securely monitor costs and efficiency. Before owning his own company, Harrett worked in the logistics department at the former Brown & Williamson Tobacco Corp. for 18 years. When the company moved its logistics department to Macon, Ga., in 1995, he and a cohort started Louisville Logistics LLC, which they later sold to a larger company. His office manager at Louisville Logistics, Kathy Leamer, started Northern Continental in September 1998, and Harrett joined the company the following January. At Brown & Williamson, he and his co-workers sometimes would spend days crunching numbers to figure out the cheapest way to ship a product from Point A to Point B, he said. Now, he can plug ZIP codes and freight weights into a software application and get the correct answer with a click of a mouse. Northern Continental s three-person technology department makes custom software applications for clients, which allows the company to modify the applications as clients needs change. The company also created its own, Internet-based software for accounting, , payroll, human resources and other functions that originally required several applications.

4 Excellence in Logistical Services Organization Information Charles E. Harrett President (10 years with NCL) 40 years in logistics Mr. Harrett was Executive Vice President of Marketing and Operations for a national logistics company and co-founder of Louisville Logistics, a highly successful regional logistics integrator. A graduate of the University of Louisville with a degree in Marketing with post graduate studies in Distribution and Logistics, he has extensive experience in domestic and international logistics. His early logistics experience included rate negotiation and tariff compellation for Less than Truckload carriers and the management of the total logistical support services for the field sales force and general product line of a fortune 100 company. He is skilled in logistical program development and implementation with emphasis on the integration of technology in logistical processes. Mr. Harrett has held the office of President of Delta Nu Alpha, Derbytown Chapter 112, an organization supporting the development of logistical professionals in the Kentucky and Indiana areas. In May of 2000 he was named the Supply Chain Management Professional of the Year by the Logistics and Distribution Institute of the University of Louisville. This award was in recognition of his outstanding contribution to Supply Chain Management in Kentucky. Kathryn Leamer Vice President (10 years with NCL) 20 years in logistics Founder of Northern Continental Logistics. Has extensive experience in logistical program support and customer service. Managed logistical support staff for multi client national logistics provider. She has additional managerial experience as director of operations and customer service with a regional logistics provider. She has domestic and international logistical support experience and has been instrumental in the development and implementation of freight payment programs with several fortune 100 companies. Possesses unique capabilities in the implementation and ongoing support of logistical client services.

5 Excellence in Logistical Services Organization Information (Continued) Michael Taggart Director of Systems Development 11 years in logistics (8 years with NCL) A graduate of the University of Evansville with a degree in Electrical Engineering, he wrote a program that won the Best Engineering Design Project award and has since gone on to copyright two more software programs. After working on a Digital Integrity Testing System which is used by NASA and automotive manufactures, he helped create and maintain networks and programs for Louisville companies. He was introduced to logistics in 1996 where he was involved in brokerage, freight payment, and account management. While at NCL he has written an Ajax library which is focused on rapid prototyping and web data entry. Michael is versed in several web and database development languages and holds certifications with Compaq, Hewlet Packard and Microsoft. Todd Harrett Account Executive (1 year with NCL) 2 years in logistics Todd joined Northern Continental Logistics as an Account Executive in After graduating from the University of Kentucky with bachelors degrees in Economics and Finance, he started his sales career in 2004 as a commercial real estate broker for Sperry Van Ness in Louisville. During his time there he represented various clients in the sale or acquisition of 15 properties with an aggregate value in excess of $30,000,000. Currently, Todd is active in numerous professional organizations and serves on the Board of Directors for New Directions Housing, the second largest provider of affordable housing in Louisville. He is presently working to obtain an MBA from the University of Indiana with emphasis in Logistics and Supply Chain Management.

6 NCL OVERVIEW Northern Continental Logistics was founded in 1998 in order to provide local companies with best practice logistical services that optimize supply chain performance, reduce operating costs, and maximize value. To this day, Northern Continental Logistics remains a leading innovator of web-based technologies, providing companies with complete visibility of their logistical processes and valuable analytical tools and reports. The implementation of this technology has resulted in enhanced customer service and increased profitability for NCL customers. Why NCL is Unique There is a wide spectrum of companies providing third-party logistical services, but few are setting the industry standard. Northern Continental Logistics is unique in that: NCL utilizes a variety of technological tools to capture logistical data and assemble it into meaningful information that can be utilized by customers at the ground level all the way up to the CEO. NCL s award winning technologies have automated logistical processes resulting in improved efficiency and quality of service to NCL s customers and theirs as well. NCL develops and maintains all our web-based technologies in-house with a full service IT staff. This ensures the integrity of our system matches that of our people and we are exceptionally responsive to the needs of every customer. The Competitive Advantage NCL s competitive advantage is the ability to customize services and technology to fit a wide range of customers no matter their needs, organizational structures or levels of sophistication. This includes: Assisting logistics managers with carrier pricing, selection and shipment routing via proprietary webbased tools, such as Rater Router. Generating various accrual reports and account coding functions to ease bookkeeping and enhance a customer s ability to track logistical costs. Dedicating a team of NCL s experienced logistics professionals to collaborate with customers to develop best practices and technological tools that are easy to implement, user-friendly, and sustainable. To learn how the NCL competitive advantage can work for you, call (888) or visit our website at

7 Third Party Logistics - Transportation, warehousing and other logistics related services provided by companies employed to assume tasks that were previously performed in-house by the client. Web Based: Post Audit /Logistical Studies Freight Bill Pre-audit and Payment Logistical Reporting Carrier Negotiations Route Guide Development Loss & Damage Claims Logistical Support Services Import / Export Services Logistical Route Guide Carrier Pre-Audit of Freight Bills Support Development Negotiations Payment of Freight Bills The Foundation for the NCL Logistical Process

8 Post Audit / Logistical Studies Determination if correct charges have been paid to carriers. Recovery of any overcharges by carriers. Analysis of current process compared to like industries. Service provided free of charge except for % of recoveries from carriers on overcharges. OVERVIEW: Northern Continental Logistics will recover any money to which you may be entitled due to overcharges by your transportation carriers. Some typical ways carriers overcharge are mis-classification of products, weight errors, incorrect discounts, arbitraries or accessorial charges and rate errors. NCL Customized Data Capture Screen PROCEDURE: NCL will audit your freight bills to ensure that the proper charges have been applied. Our experienced staff will record the freight billing activity for reporting and verification of duplicate payments, if any. This data base can be used for further analytical activity. A management summation of the post audit will be provided upon completion of the audit. STATUTE OF LIMITATIONS: 6 months unless specifically defined in your transportation contract. LOGISTICAL REVIEW: Upon completion of the Post Audit, an analysis will be conducted as to the competitiveness of your rates to those currently enjoyed by similar industries in the marketplace. Action steps will be determined predicated upon that comparison. SERVICE FEE: The NCL fee is 50% of the overcharges collected. There will be no fee if overcharges are not collected from the carrier. A no charge logistical review as noted above is provided with each audit.

9 Pre-Audit and Payment of Freight Bills Insure that correct freight charges are paid to carriers. Assurance against duplicate payments to carriers. Supply Chain visibility for freight expense by the development of a logistical database for ongoing reporting and review. Account coding of freight charges. Reduction in internal labor and materials costs. NCL Customized Data Capture Screen OVERVIEW: Northern Continental Logistics will establish correctness of carrier freight rate review by product class, discount, extension, contract or mileage. NCL will perform a search for duplicate billings based on carrier pro number or shipper number. DATA CAPTURE: Data entry screens are customized for each client. The base audit fee includes up to 13 data captures. A listing of basic data captures is available upon request. PRE-AUDIT INFORMATION REPORTING: After the pre-audit and data capture, NCL will promptly forward the freight bills to the client for payment accompanied by the relevant data needed for processing. Specific reports customized to the client s needs are available at nclworldwide.com via the client s individual web pages. These pages are password protected and are available 24/7 to the client or their designated representatives. MANAGEMENT INFORMATION REPORTING: NCL recognizes the importance of prompt payment of freight charges to carriers. For many shippers this is an integral part of their ability to successfully maintain satisfactory carrier relations and minimize costs. NCL will advise client by FAX, or Web download of the dollar amount required for the carrier payment. This statement will be customized to the client s needs and provide sub-totals by client s requirements. NCL will release funds to carrier 72 hours (excluding Saturdays, Sundays and Holidays) from date of receipt of funding from the client, if the client pays by check, or 24 hours to carriers if client pays by direct deposit. SERVICE FEE: Generally transactional in nature, the fee for this service can also be bundled into an all inclusive fee per shipment or weekly management fee.

10 Logistical Reporting Monitoring of logistical cost and savings on a real time basis. Monitoring of carrier overall performance on costs, transit times, shipment integrity, claims, accessorial charges, etc. Evaluation of Supply Chain effectiveness and possible alternatives. Determination of overall program benefits. Facilitation of internal accounting processes. OVERVIEW: Northern Continental Logistics will develop customized web reporting to meet the individual needs of each client. These processes interface with in house software applications to facilitate the dissemination of logistical information. WEBSITE SECURITY: Each client s information is posted to their password protected web site located at nclworldwide.com. All logistical functionally is maintained at that location. Such functionally includes freight payment data, reporting, shipment rating, shipment mapping and additional custom designed capabilities. SERVICE FEE: This service is generally bundled with other service fees, however, extensive programming applications are billed on an hourly basis. NCL Customized Reporting Screens

11 Carrier Negotiations Reduce freight cost through the utilization of technology to enhance the bid process. Improved internal and external customer service capabilities. Monitoring capabilities through improved carrier selection processes on inbound and outbound shipments. Improved internal savings and efficiencies. NCL Customized Negotiation Screen OVERVIEW: Northern Continental Logistics will negotiate your carrier rates and establish those rates in the proper contracts to support your logistical process. Rates are negotiated with air, package, less than truckload (LTL) and truckload (TL) domestic and international carriers. PROCEDURE: What are the key elements of a successful logistics process? NCL begins with a thorough examination of a company s logistics network. This is accomplished through the establishment of a database in the audit and payment or post audit process. From this examination, lane patterns and volumes are determined from the bid process is a joint client and NCL process. All tangible and intangible factors are considered when selecting the appropriate carriers. Upon completion of the carrier negotiations and contracting. A core carrier group is established. This program is monitored through the freight payment process to insure compliance to the approved routings. This program provides a client with the span of control insuring the appropriate carrier service at an economical level of rates. SERVICE FEE: This service can be priced on a gain, share approach or a specific per shipment charge can be determined and assessed. This per shipment fee can be structured to include other core logistical services.

12 Route Guide Development Vehicle to insure maximum impact and benefit from carrier negotiations by routing control on distribution facilities, vendor inbound and third party drop ship routings Determination of lost cost, best service carrier through web technology. Freight cost and carrier determination for return goods / reverse logistics applications. Customer service rate quote and carrier applications. NCL Web Claim Filing Program OVERVIEW: NCL, as a continuation process to the negotiation and contracting of rates, will implement via the appropriate carriers outbound routings. This implementation will encompass the proper integration of all modes of transportation in order to maximize logistical dollars. The development of web supported route guides for distribution facilities and vendor routing management facilities the implementation of carrier negotiations. PROCEDURE: The selection of core carriers is determined by the specific logistical needs of the client. Selection criteria often encompasses carrier transit times, pricing, technology, specialized equipment and commodity requirements. In addition to web route guide developments for outbound, inbound and third party applications, routing support can be obtained from NCL personnel through 800 number contact. The above methods of implementation are monitored for routing compliance by the pre-audit and payment process. WEB TECHNOLOGY: All claim functions are driven by NCL s web base claims filing, collection and reporting system. This functionality allows for 24/7 visibility as to the claims status and carrier performance. SERVICE FEE: This service is an extension of the carrier negotiation process which fees included carrier routing implementation in order to maximize the impact of the negotiations..

13 Loss and Damage Claims Filing and Collection Recovery of dollars associated with the loss or damage of product in transit. Monitoring of damages by carriers through web based software for appraisal of carriers overall performance. Determination of origins of damages with resulting improved packaging implementation. Improved internal labor and material savings. OVERVIEW: With the continued interest in today s corporate management to improve the quality of service at a reduced cost, outsourcing of distribution functions has become a viable method of attaining those goals. NCL provides the para-legal expertise to file and collect loss and damage (Domestic and International) and overcharge claims at an economical cost to the customer. CLAIM DOCUMENTATION REQUIRED: The basic claim documentation required to file a claim would be: Bill of Lading Invoice covering damage / shortage Delivery receipt Inspection reports Additional supportive information as required With the above information, NCL will: Prepare and file the claim with the appropriate carrier Provide follow up communications with the carrier as required. Collect payments. Provide management reports / additional services on an as needed basis. NCL Web Claim Filing Program WEB TECHNOLOGY: All claim functions are driven by NCL s web based claims filing, collection and reporting system. This functionality allows for 24/7 visibility as to the claims status and carrier performance. SERVICE FEE: Generally transactional in nature, the fee for this service can also be bundled into an all inclusive fee per shipment or weekly management fee.

14 Logistical Support Services Support provided by NCL experienced staff utilizing web logistical support tools to provide optimum customer service to a client s internal and external customers. Reduced internal logistical support cost. OVERVIEW: Northern Continental Logistics can fully support NCL Logistical Support Team your customer services specialists with the logistical resources needed to serve your customers. With one phone call or , NCL can assist you with: Carrier routings and truckload scheduling. Expedite, rush and service sensitive shipments. Trace air, LTL and Truckload shipments. Provide faxed POD s. Rate quotes. Assist with transportation questions an concerns. This high level of customer service is paramount at NCL. Each customer is supported by a logistical support team, a single contact that affords a wealth of logistical experience. All requests are handled in a timely, professional manner. WEB TECHNOLOGY: All logistical support functions are driven by NCL s web based logistical programs. This functionality allows for 24/7 visibility as to the client s logistical network and support activities.. SERVICE FEE: Generally transactional in nature, the fee for this service can also be bundled into an all inclusive fee per shipment or weekly management fee.

15 Import / Export Services Support provided by NCL experienced staff for Import and Export shipments utilizing a network of international freight forwarders, customs house brokers and contacts. Only proven service and cost sensitive forwarders are qualified under the NCL program. Improved inbound and outbound international freight Management. Reduced freight expense and transit times. Reduced internal logistical support cost. OVERVIEW: Northern Continental Logistics will provide assistance on various international services as rate negotiations via all modes, customs clearance, letters of credit and international distribution. As a non-asset based logistics integrator, NCL provides the client the flexibility necessary to determine the optimum service at the lowest possible costs. The experienced staff at NCL will review the international requirements of the client s program identifying the specific opportunities for enhancements in service and savings. This review process is the first step of the logistics process. Upon identification of these opportunities, NCL will work with numerous international service providers to determine the appropriate carrier to be used to support the client s process. After contracting with the selected carrier (s), NCL will monitor all shipping activity from origin to destination in order to provide each client with an up to date status on every shipment. Additional NCL logistical services provide for warehouse site selection, freight payment, L&D claims filing and collection and reporting. WEB TECHNOLOGY: All logistical support functions are driven by NCL s web based logistical programs. This functionality allows for 24/7 visibility as to the client s logistical network and support activities.. SERVICE FEE: Generally transactional in nature, the fee for this service can also be bundled into an all inclusive fee per shipment or weekly management fee.