Keeping Score: Carrier, Customers and Shippers of Choice

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2 Keeping Score: Carrier, Customers and Shippers of Choice Ryan Hanson, Target Bryan Ward, The Home Depot Spencer Frazier, J.B. Hunt Craig Callahan, Werner Enterprises Matthew Menner, Transplace

3 Shipper of Choice Matthew Menner Sr. Vice President Strategic Accounts

4 Poll: What is your industry classification?

5 Poll: How would you characterize most shipper/carrier relationships?

6 Poll: As you think about domestic transportation capacity, how would you characterize the market?

7 Preferred Shipper Scorecard & Checklist Matthew Menner, Senior Vice President, Strategic Account Management, Transplace

8 Transplace at a Glance Delivering complex third party logistics solutions since PL/LLP, Technology, Intermodal and Truck Brokerage Across North America 140 Contract Logistics/Transportation Management Customers CPG, Retail, Diversified Manufacturing and Chemicals Private Equity-owned: Greenbriar Equity Group $6.5B+ Freight Under Management; holding 14.4% market share (A&A DTM) 12M+ Shipments executed annually associates; 16 Operations Centers Lean Six Sigma as continuous improvement framework Gartner-ranked proprietary TMS Customer Advisory Board; led and directed by our customers

9 Preferred Shipper the why (COST) Shipper: Control Logistics costs Source : CSCMP State of Logistics Report (2014)

10 Preferred Shipper the why (SUPPLY + DEMAND) Source : Morgan Stanley

11 Preferred Shipper the why (DRIVERS)

12 Preferred Shipper the why (DRIVERS) Source : FTR

13 Preferred Shipper Thought Leadership Checklist and Scorecard Development Transplace s Customer Advisory Board members requested a checklist and scorecard to benchmark performance and identify gaps in their practices and performance as a shipper of choice. Project Objectives - Facilitate and manage development of a Preferred Shipper Checklist covering the following: shipper profile, planning + facilities, tendering, technology, scorecarding, etc.: 1. Initial: Surveyed 250+ carriers to ascertain their collective voice as to what constitutes a Preferred Shipper 2. Primary: Work with select carriers to identify the key shipper practices and policies that most impact carrier / driver productivity. Use this information to create a checklist that will help shippers understand and score their performance against preferred shipper best practices. 3. Secondary: Use checklist to develop a scorecard that carriers can use to provide shippers with feedback on their performance across the major freight management areas (freight profile, sourcing, planning, execution, facilities origin and destination), etc.

14 Poll: Do you have a formal Shipper of Choice program in place? (Shippers)

15 Poll: Do you have a formal Shipper Scorecard program in place? (Carriers, Intermodal, Brokers)

16 J.B. Hunt Transport Services, Inc. Spencer Frazier Sr. Vice President of Sales

17 Customer Utilization Scorecard

18 Scorecard Trends

19 Werner Enterprises Craig Callahan Sr. Vice President of Sales

20 Werner Customer Scorecard

21 Customer Scorecard Example Max Score Actual Score Category Comments / Details Rev Growth Potential Multi-year growth trend, growing company Margin Contribution nd quartile Product Diversity Missing Ocean / Air Freight Buying Strategy 10 5 DTP =32, annual bid strategy, average incumbency weighting Ease of Business 10 5 Violent volume swings, excessive trailer usage Account Relationship Constant interraction, top level connectivitiy Financial Stability Publicly traded, financially healthy Bonus - Frt Mgmt / WGL Project contract TOTAL SCORE Rank = 2

22 Primary Lane Acceptance

23 Poll: What do see as the main driver of benefit for a formal Shipper of Choice Program?

24 Poll: Do you think your Shipper of Choice Program is effective and achieving your desired results? (Shippers)

25 Poll: Do you think your Shipper of Choice Program is effective and achieving your desired results? (Carriers, Intermodal, Brokers)

26 Social Q&A