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2014 ANNUAL CONFERENCE & EXHIBITION. New Transportation Paradigm Demands Carriers Adopt ‘Supply Chain’ Mentality. Planning Your Next IT & Finance Move. June 16-18 Lincolnshire Marriott Resort Lincolnshire, IL. ATA Antitrust Statement.

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2014 ANNUAL

CONFERENCE

& EXHIBITION

New Transportation Paradigm Demands Carriers Adopt ‘Supply Chain’ Mentality

Planning Your NextIT & Finance Move

June 16-18

Lincolnshire Marriott Resort

Lincolnshire, IL


Ata antitrust statement
ATA Antitrust Statement

All ATA meetings are held in strict compliance with applicable state and federal laws and ATA’s antitrust policies that prohibit the exchange of information among competitors regarding matters pertaining to price, refusals to deal, markets division, tying relationships and other topics which might infringe upon antitrust regulations.

No such exchange or discussion will be tolerated during this meeting.

As an attendee it is your duty to avoid improper conversations.


Thanks to our sponsors
Thanks To Our Sponsors!

Gold Sponsor

Welcome Reception Sponsor


Thanks to our sponsors1
Thanks To Our Sponsors!

Silver Sponsors

Walk Around Luncheon Sponsor

Banquet – Pre-Dinner Reception Sponsor

General Luncheon Sponsor


Thanks to our sponsors2
Thanks To Our Sponsors!

Bronze Sponsors

Registration Desk Sponsor

Coffee Break Sponsor

Continental Breakfast Sponsor


Speakers

Ben Cubitt, Transplace, Inc.

Erika Matias-Goodman, US Gypsum Corp.

Andy Miller, TMW Systems

Moderator

Carl Kirk, American Trucking Associations


Ben Cubitt

Transplace


Transplace size and scale
Transplace Size and Scale

Transplace has successfully built a critical mass of supply and demand in the North American transportation marketplace – across all modes and regions.

  • Domestic & global scope

    • North American customer base

    • Global shipment flows

  • Critical mass of demand

    • 15 Million orders

    • 48 Million transactions annually

    • 4 Million shipments annually

    • $5+ Billion managed spend

  • Critical mass of supply

    • Thousands of carriers under contract

    • Multi–modal network

  • Business process excellence and Lean Six Sigma execution

    • Inbound and Outbound shipment execution excellence

    • Focus on granular information on shipper side

    • Focus on carrier communications excellence on the capacity side


Technology and service offerings
Technology and Service Offerings

  • LEAD LOGISTICS PROVIDER (LLP)

  • Full Transportation Outsourcing

  • Transportation Provider Contracting

  • Shipment Control Centers

  • Inbound Freight Management

  • Freight Bill Audit & Payment

  • Co-Loading Innovation

  • $3.0 BILLION TOTAL SPEND MANAGED

  • LOGISTICS CONSULTING SERVICES

  • Benchmarking

  • Transportation Procurement

  • Network Analysis & Design

  • Professional Services Consulting

  • Joint Lean Six Sigma Projects

  • $1.5 BILLION TOTAL SPEND MANAGED

Comprehensive

MANAGEMENTSOLUTION

  • TECHNOLOGY

  • On-Demand TMS

  • Optimization

  • Highly Configurable

  • BI, Reporting and Analytics

  • Rapid Implementation & Integration

  • Documentation Creation & Management

  • $320 MILLION TOTAL SPEND MANAGED

  • CAPACITY PROVIDER

  • Single Source

  • Core, Committed and Primary

  • Brokerage

  • Spot

  • Dedicated Fleet

  • $550 MILLION TOTAL SPEND MANAGED

Basic

Basic

Comprehensive

TECHNOLOGY SOLUTION


Performance scorecards state of the industry
Performance Scorecards – State of the Industry

  • Freight metrics and KPI’s are now on the C-Team (especially the CFO) agenda. Erratic fuel costs (and FSC impact on EPS), weather events (Hurricane Katrina to Polar Vortex 2014), and emergence of Supply Chain profession.

  • Shippers use TMS systems and 3PL relationships to generate BI reports. Rarely shared with carrier partners.

  • Shippers increasingly generating monthly Performance Scorecards shared with Core Carriers

  • Many carriers generate shipper scorecards, generally not shared with shippers

  • Shippers respond to data and fact based selling. TL carriers do not share industry trend / cost data as well as Rail / IM / LTL carriers.

  • Information sharing and a more comprehensive “network” score card could help shippers and carriers drive “network” efficiency.


Internal kpi benchmarking
Internal KPI Benchmarking

KPI’s begin at a site or carrier level, then shippers want to benchmark performance across the network – by site, by carrier classification, etc.


External kpi benchmarking
External KPI Benchmarking

3PL’s can also provide collaborative benchmarks – across customers, by industry vertical, etc..


Carrier merit or award programs
Carrier Merit or Award Programs

Carrier Performance against established and communicated criteria are key inputs to carrier recognition programs – Carrier of the Year, Platinum carrier, etc.


Erika Matias-Goodman

US Gypsum Corp.


Usg profile

Focused on Building Products and Specialty Distribution

Leading brands, product innovation

Excellent customer base

Strong manufacturing and distribution network

Expanding into global markets

USG PROFILE


Leading industry positions
LEADING INDUSTRY POSITIONS

USG

11%

USG

USG

32%

28%

Market Share of U.S. Ceilings Systems

Market Share of Gypsum Wallboard Distribution in U.S.

Market Share of Gypsum Wallboard in N.A.

#2

#1

#1

Source: USG estimates and SEC filings



Usg carrier performance ranking
USG Carrier Performance Ranking

USG scorecard ranks and classifies carrier performance – Gold, Silver, Bronze. Data driven, Performance KPI’s, color coding for easy visual management.


Usg carrier scorecard
USG Carrier Scorecard

USG provides carriers data on their volume and performance.


Usg carrier scorecard1
USG Carrier Scorecard

USG scorecard focuses on all areas of performance – service, claims.


Usg carrier scorecard2
USG Carrier Scorecard

USG scorecard ties back to performance levels – Gold, Silver, Bronze.


Usg carrier of the year criteria
USG Carrier of the Year Criteria

  • Carrier maintained 4 consecutive quarters of consistent certification on USGs top 30 Scorecard. (Mandatory)

  • Carrier hauled at least 2500 loads for USG during the year.

  • Carrier provided service from multiple USG shipping locations. (Mandatory)

  • Carrier meets annual On-Time Delivery goal for current year (96% 2014). (Mandatory)

  • Carrier is EPA SmartWay certified. (Mandatory)

  • Carrier settled 100% of their claims within 45 days during the year. (Mandatory)

  • 80% of Flatbed trailers used to service USG are 102” wide and able to haul 49,000 pounds.

  • Carrier invests in technology to allow real-time information, e.g.

    • EDI Capable (ability to send unfiltered data)

    • Electronic On-Board Recorders (EOBR)

    • Geo Fencing


Performance reports tms carrier portal
Performance Reports – TMS Carrier Portal

  • USG carriers have the ability to log into Transplace TMS portal

  • They can do this as often as desired (monthly, weekly, daily)

  • Three reports are available to help carriers monitor and optimize their performance

    • Status Updates Compliance

      • Shows how many of the required check calls have been entered and how timely they were submitted

    • Tender Acceptance

      • Shows the date/time a shipment is tendered, the response date/time by the carrier to accept or reject the tender, and the time difference between the two

    • Accept/Reject Detail

      • Shows the following details of any loads that weren’t accepted by the carrier: Origin/Destination, Pickup Date, and Transplace transaction number


Carrier shipper scorecards
Carrier “Shipper” Scorecards

Carrier’s have “shipper” scorecards but these are generally for internal use only and not shared with the shipper.


Preferred shipper program
Preferred Shipper Program

Carrier’s survey responses and discussions consistently ranked economics and driver productivity as the keys to “preferred shipper” status


Are network scorecards in our future
Are Network Scorecards in our future?

Network efficiency and driver productivity (pay) is becoming the driving concern and focus for carriers.

  • Carriers will reward efficient shippers with capacity.

    • Keep the trucks and drivers moving.

    • 24/7 freight is very desirable

    • No touch, efficient freight

  • Keeping drivers becoming more important than finding loads.

    • Treat drivers with respect and as a valuable network asset.

    • Understand what impacts driver pay (miles per week).

    • Plan tender times, pick-up and delivery times to maximize miles per day.

    • Get drivers loaded and unloaded in target times.

  • Carriers want “partners at every level”

    • Pre-bid discussion and non-bid “”strategic lanes”

    • Want more flexibility “pick-up / delivery windows, equipment, etc”

    • Less rigid tender times, increase late day / weekend acceptance


Where is the market headed
Where is the market headed…

  • Will the economy shift into a higher gear with negative impacts on capacity?

  • Will the leverage shift from shippers to carriers? How fast? How strong?

  • Will shippers respond to carrier requests for changes in accessorials or modifications to drive network efficiency?

  • Will changes be collaborative or carrier mandates?

    • Can carriers negotiate changes with shippers - Some? Most? All?

    • Will carriers have to pursue indirect actions (swap up shippers / lanes)

  • Will industry “driver shortage crisis” force more collaborative network optimization?


Andy Miller

TMW Systems


Tmw systems

TMW Systems is best-known for transportation operations software

Automates the workflow of the entire transportation process from order to cash

Drives business execution, efficiency and profitability

Facilitates visibility and transparency across all organizational departments

TMW Systems

Human Resources

Purchasing

Payroll

Management

Maintenance

Customer

Accounting

Customer Service

Drivers/Carriers

Operations

Dispatch

Shipment Planning

5


Omni channel what does it mean to the consumer
Omni-Channel…what does it mean to the consumer? software

  • Seamless customer experience across all touch points with a retailer

    • Shop and purchase goods online, in a store, from a catalog or a smartphone

    • Be able to pick up or have goods delivered anywhere

    • Ability to easily return good anywhere

    • High expectations are set across all retailers

Experience


Omni channel what does it mean to the retailer
Omni-Channel…what does it mean to the retailer? software

  • Tasked with offering exceptional flexibility and service to match that of leading retailers

    • Provide on the fly visibility to product availability for consumers

    • Provide multiple shipping and delivery options

    • Challenges with satisfying consumer demand

SERVICE


Omni channel what does it mean to carriers and logistics companies
Omni-Channel…what does it mean to Carriers and Logistics Companies?

  • Carriers must be willing to adapt to the changing procurement arrangements established by the retailer

    • Omni-Channel retailers utilize a network of distribution channels

    • The fixed environment is now becoming much more dynamic

    • Carriers can expect retailers to continually re-evaluate their distribution network

Flexibility


Omni channel what does it mean for carriers and logistics companies
Omni-Channel…what does it mean for Carriers and Logistics Companies?

  • Visibility to orders and the parameters around each order are imperative

    • Where are the orders coming from?

    • What day and time are goods to be delivered?


Omni channel what does it mean for carriers and logistics companies1
Omni-Channel…what does it mean for Carriers and Logistics Companies?

  • Adaptive Freight Rate Pricing

    • Exceptional service doesn’t come with a small price tag

    • Carriers and Logistics companies are adapting complex costing models

    • Retailers are focusing on network optimization


Omni channel what does it mean for carriers and logistics companies2
Omni-Channel…what does it mean for Carriers and Logistics Companies?

  • Primary challenges faced

    • Offering higher service levels typically underutilizes capacity

    • Requires more resources in an environment that already has a driver shortage

    • Speed of delivery is imperative, a smaller distribution footprint is typically a requirement to provide cross-dock operations closer to customers


Omni channel what does it mean for carriers and logistics companies3
Omni-Channel…what does it mean for Carriers and Logistics Companies?

  • Last Mile Delivery is now becoming more of a focus than ever

    • High consumer expectations have set the bar amongst retailers

    • Retailers are offering multiple delivery options to best suit the needs of the consumer

    • High Service standards are not only labor intensive, but also cause Carriers and Logistics Companies to operate less efficiently when compared to conventional distribution models


Tmw systems how are we equipping customers for the omni channel
TMW Systems…how are we equipping customers for the Omni-Channel

  • Sophisticated Planning Requirements….

    • Strict Appointment and/or Delivery Windows

    • Special Equipment Requirements

    • Driver Skillsets, shifts, and work rules

    • Mixed fleets with varying truck Capacities


Emerging markets with the omni channel retail home delivery
Emerging Markets with the Omni-Channel Omni-ChannelRetail Home Delivery

  • Business Requirements

    • Next day for traditional Online orders

    • Need for same day delivery rapidly growing

    • Coordination between Inbound product availability and outbound routes

  • Planning Challenges

    • Customer Volume and Locations change daily

    • 80-150 stops per route

    • Accurate driving times are crucial for scheduling


Complexities of serving the omni channel
Complexities of Serving the Omni-Channel Omni-Channel

  • A small example:

    • 15 trucks / 15 stops each

    • 1,800 possible combinations to think about and manage

  • It’s not just point A to point B, but rather point A to every other possible stop that could go with it!



Thank You Omni-Channel

Questions?


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