Training Guide

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1 Training Guide For Third Party Logistics Services for Prepared By

2 Table of Contents Introduction to the Freight Program 3 Managing Freight 4 Purchasing 5 Logistics 7 System 10 Frequently Asked Questions 17

3 Introduction to the Freight Program Ardmore Power Logistics has served GenOn and its predecessor companies since The freight program provides a broad scope of service offerings to all GenOn business units. The program currently addresses inbound and outbound freight movements for all GenOn offices, operating plants and repair/storage facilities for all shipments - from small parcels to the largest pieces of equipment. International services are also supported by Ardmore Logistics. The following training guide is intended to introduce the user to the processes and systems with which Ardmore will be managing GenOn s freight program.

4 Managing Freight To create the cost efficiencies and achieve the service levels desired by GenOn, freight transactions are managed by Ardmore Logistics. Ardmore Logistics reduces freight cost through unbundling vendor-managed freight, carrier contract negotiation, shifting modes, ensuring vendor compliance and combining shipments. In particular, the unbundling of vendor managed freight and the control of unnecessary expediting provide the greatest opportunity for freight cost reduction. From a service standpoint, Ardmore Logistics is a single call source for all transportation needs. GenOn has access to Ardmore 24/7 for support of all routine and expedited shipping needs. Ardmore is an energy industry provider serving 94,000 MW of generation around the country and delivers the high level of service and responsiveness generation customers require. The major tool for creating shipments, carrier selection and the consolidation of freight spend is the online routing guide found at A later section of this document illustrates the methods by which GenOn s vendors and GenOn employees will use the guide to make shipping arrangements. Vendors will normally be instructed to go the route guide to arrange shipments in the text of GenOn s purchase order. Once at they will be asked to enter the relevant purchase order and will proceed to enter their shipment. GenOn personnel can register for system access by visiting and clicking into the GenOn Users: Login feature. Ardmore Logistics issues a log in identification and passwords to each GenOn system user. Once logged in, the system has the capability of setting the outbound shipping point as the default location. In addition to the online route guide Ardmore provides toll-free customer support at all times at For the purpose of this training document we will be

5 focusing on the online routing guide. Later in the training guide you will find examples showing how GenOn users interact with the online routing guide.

6 Purchasing Unbundling Freight GenOn spends approximately 80 percent of its transportation dollars on shipments moving from vendors to GenOn facilities. A purchasing opportunity for savings lies in unbundling the cost of this freight from the cost of material purchased by GenOn. Purchasing currently plays a major role in the unbundling process with vendors with other opportunites available during contract renegotiations and commodity evaluations. Using the freight program, GenOn buyers can require vendors to quote with freight included, as well as excluded, from the cost of goods. Ardmore Logistics will provide GenOn with the market cost of the freight. Using this information, the buyer can make an informed decision to select freight collect terms, and capture the savings achieved. Savings created in the unbundling process include: sales tax savings, reduction of commodity exposure, elimination of vendor markups and discounts from contract carriers. While most purchases can benefit from freight collect terms it is important to ask the vendor to quote both ways in order to validate savings. Purchasing Owning Freight The freight component of a purchase is made up of two major elements: The location at which GenOn takes ownership of the material and thus the risk, and the control of the carriage (the freight). GenOn frequently uses the terms ZDC whereby ownership of the material is not accepted until the material reaches the GenOn dock. International shipping is supported by the freight program. Due to a variety of factors and the greater array of commercial options, we recommend contacting Ardmore Logistics for support as you select your freight terms.

7 Purchasing Common Freight Terms Incoterms International FOB ZAS ZCF ZCI ZFF ZFH ZOB ship. (Free on Board) Port of Departure Buyer is responsible for all Risk and cost incurred after freight is loaded on board the ship. (Free Alongside Ship) Port of Departure Buyer responsible for all risk and cost incurred after freight is moved from alongside the ship. Cost and Freight Allowed to port of destination (Cost, Insurance, & Freight) Port of Destination Buyer responsible for all risk and cost incurred after ship arrives at port of destination. Freight Free no freight charges /or included in material cost Free House Buyer responsible for risk and cost incurred once freight is on the port of destination dock. Seller responsible for risk and cost incurred for delivery to and loading on to UCC Freight Terms Destination, Prepaid and Allowed - Seller responsible for risk & carriage. Destination, Collect Freight billed by the carrier Seller responsible for risk, Buyer responsible for carriage. An attractive term in all but sales tax implications. Destination, Prepaid and Added Seller responsible for risk & carriage but breaks out freight from the cost of materials when billing Origin, Prepaid and Allowed Seller responsible for carriage, Buyer responsible for risk. This term is unattractive to Buyer. Origin, Collect Freight billed by Carrier Buyer is responsible for carriage and risk. Seller bills only for materials. This is a typical managed freight term.

8 Origin, Prepaid and Added - Seller responsible for carriage, Buyer responsible for risk. This term is unattractive to Buyer.

9 Logistics Shipping Ardmore Logistics supports GenOn shipping activity through the online route guide at and through a continuously manned toll-free customer service line at Most shipment requests will be placed using the online route guide which will provide carrier selection, load tendering and bill of lading creation for parcel and motor freight shipments. Truckload, air, dimensional and expedited shipments are supported through the tollfree number. To arrange a truckload, air, dimensional or expedited shipment you can call We will require basic shipping information including: addresses, material weight and dimensions, ready time and needed date. Using that information Ardmore Logistics will select the carrier most appropriate to the shipment and best able to meet the service requirements. Service options for expedited shipments vary greatly in cost. Ardmore will provide options for expedited shipments allowing the user to choose the right mix of speed and cost. Local courier and hotshot work plays a major role in GenOn maintenance operations. This activity is supported by the freight program. Available at any hour of the day or night, Ardmore Logistics is a one-call resource for GenOn and for GenOn vendors for local shipping needs.

10 Logistics Freight Claims Over, Short or Damaged Material It is imperative that any overage/shortage or damage be notated on the delivering carrier s bill of lading. This notation must be made prior to signing the BOL verifying delivery. If a camera is available take pictures of the damaged material. In the case of extreme damage, notify Ardmore Logistics prior to unloading. Note the damage on the bill of lading presented by the carrier making the delivery. Note any carton damage as well as any merchandise damage that is visible. Preserve the shipping carton and the material until the claim is resolved. Keep a copy of the delivering carrier s BOL and return original to the carrier s driver. Fax a copy of the Bill of Lading, the invoice, and a completed Claim Information Form (shown below) to Ardmore Logistics. Freight Terms and Lost or Damaged Material When material is delivered with damage, the freight terms determine whether the material is owned by GenOn or the shipping vendor. Shipments with 'origin' terms are owned by GenOn and refusing such shipments even when damaged, may expose GenOn to further loss. When damaged shipments are found to have 'destination' terms shipments may be refused although in some cases receiving the material may prevent further damage. Concealed Damage If concealed damages are discovered subsequent to delivery to the job-site or warehouse, immediately notify Ardmore Logistics. Concealed damages are those product damages discovered at delivery after unpacking, where the carton/packing material reflects no damage and is noted as such. On shipments that are not unpacked at delivery and/or no exceptions taken, those damages must be reported within 15 days of delivery. Circumstances such as promptness of notification, delivery environment and product type are all considered. Concealed damage claims can be difficult to resolve when not promptly filed.

11 Claim Request Information Shipper Information: Name: Address: City, State, Zip: Contact #: Consignee Information: Name: Address: City, State, Zip: Contact #: PO# / WO# / Job#: Carrier Involved with Claim Information Name: Pro/tracking #: Purchase Price: Was Value Declared on Carrier BOL?: Date shipment received damaged: Was damage Visible/Concealed/Lost? If Visible, was Delivery Receipt annotated with damage? Date Damage reported to carrier and Ardmore: Reason For Claim: Please describe damage reason for claim/loss:

12 System Logging In GenOn employees who prepare material for shipment will need to know the web site address and will require a user name and password. To obtain a user name and password, go to and click the Registered Users: Login icon. Underneath the button you will see a link which reads If you do not have a user name and password, you can request one by completing the form located here. Click on this link and fill out the requested information and your user name and password will be sent to you via with 24 hours.

13 System Parcel Shipments With a user name and password you will be able to log in and will see the address verification screen. From here you can enter origin and destination address information. Hitting the submit button at the bottom of the page will take you to the material verification screen where you will enter the shipment weight. Using the information you have provided the system will verify the proper mode of transportation.

14 On the mode verification page the system will show the recommended mode and service for your shipment. When shipping parcels, please use standard Ground unless there is a need for expedited delivery. If so, you may choose the desired service level (Next Day, Second Day, etc.). Transit times and costs associated with each service level will be provided to assist you in making the optimal choice. Should you require expedited service for your shipment, the system will ask you to confirm the reason for expediting before continuing. At the bottom of the mode verification page you will notice a field for a purchase order or cost reference. The default cost reference you provided when setting up your user name will automatically populate during the scheduling process however, you may override if you wish to charge an alternate cost center.

15 After confirming the mode you are now ready to tender the shipment. At this point you will enter package info such as packaging type, weight and dimensions and select any additional services desired. Finally, check the box at the bottom of the page indicating you are ready to ship and press submit.

16 Click on the.pdf icon to print your shipping label. You may directly affix this to your parcel and tender it to you parcel carrier.

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18 System Motor Freight Shipments Shipments above the weight range for parcel shipping but less than truckload quantities will normally be shipped motor freight. The process of address verification and material verification are identical to that of a parcel shipment. Once the system identifies motor freight as the appropriate mode of shipping you will have the opportunity to either confirm the selected mode or select that it requires special handling. Shipments requiring special handling will be managed direct by Ardmore Logistics. Your default cost center information will automatically populate during the scheduling process however you may override if you wish to charge an alternate Purchase Order number.

19 On the shipment tendering screen you will supply the shipment and packaging information which will help create the bill of lading. Once you have completed entering this information if you are ready to tender the shipment to a carrier, press submit and the pickup request will be electronically sent to the carrier. After the shipment is submitted the carrier name and information indicating the shipment has been tendered to the carrier will appear. To print your bill of lading, click on the PDF icon.

20 Frequently Asked Questions Question: Answer: Question: Answer: Question: Answer: Question: Answer: Is there a specific person at Ardmore that I should talk to? Anyone fielding a call at Ardmore will be able to assist your needs at Can I reach someone 24 hours a day? Yes. In addition to coverage during normal business hours, Ardmore maintains personnel on call at all times to support GenOn freight. What are the advantages of using the on line route guide? Vendors using the on line route guide will be able to quickly identify the appropriate carrier for their shipment, generate bills of lading, receive pre-assigned pro numbers, and request pickups for motor freight shipments to GenOn. In turn, GenOn will have visibility of inbound freight the day it ships. Expediting - Should I contact Ardmore for same-day expediting? Yes. Question: What information will be required when I visit to Answer: Question: Answer: At a minimum the GenOn Purchase Order number, the ability to confirm the origin and destination points and the size and weight of the shipment. The ship date, ready time and packaging information will be helpful to complete and print the Bill of Lading. What if I have an existing relationship with a carrier that I have always used in the past? You are encouraged to contact Ardmore to recommend a carrier that you would like to use. Ardmore will evaluate the carrier for opportunity to include them in the program.

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