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Concentrek Overview for August 12, 2005 Concentrek Today Our Business Transportation Management Experts Specialize in complex, multi mode networks $175M+ in Freight Under Management Manage entire shipment lifecycle Non-Asset Based Data Driven Our Company 79 Associates in 10 Locations 479 Carriers Under Contract (All Modes) Process more than 200,000 freight bills annually Fast Growing - #112 on INC. 500 List Concentrek Locations Concentrek Locations Bombardier Recreational Products Bombardier Transportation Concentrek Headquarters Cummins Engine Temple Inland Vermeer Manufacturing Concentrek Customers Services & Technology Concentrek Services OPERATIONS Inbound Material Flow Manufacturing Supplier Compliance Route Design & Mgmt Dynamic Optimization Cross Docking / Sequencing Expediting Import / VMI Programs FTZ Management SUPPORT Transportation Support Rate & Contract Admin. Procurement Claims Administration Freight Bill Audit & Pmt Scanning / Indexing General Ledger Coding Parcel Service Audits Trade Lane Analysis Outbound Distribution Order Management Consolidation Mode & Carrier Selection Execution & Tracking Appointments/Dock Sched. Export / Forwarding Dedicated Fleet Operations Business Intelligence Standard Reporting Ad Hoc Reporting Customer KPI Reporting Web-Based Tracking Data Warehousing Continuous Improvement Network Analysis & Design Six Sigma Projects Lean Mfg Initiatives Pool Points & Crossdocking Dedicated Fleet Redesign Global Trade Lane Design Supply Chain Strategy Technology Suite Supplier Compliance Standard Reports Ad-hoc Reports Drill-Down Analytical Network Modeling Central Data Repository Order Mgmt Optimization Execution Track & Trace Audit & Payment Reporting and Analysis Supplier Routing Shipment Lifecycle Mgmt General Ledger Coding Parcel Service Audit Concentrek Proprietary Support Tools Concentrek Value Our customers benefit from… Lower Total Logistics Costs Improved Service Greater Supply Chain Visibility Ability to Focus on Core Competencies Less Administrative Burden Continuous Improvement & Quality Focus Detailed Reporting and Analysis Capabilities Case Studies Cummins, Inc. Company $8.4B in revenue, 2004 Leading manufacturer of engines and related technologies Project Scope All Inbound and Outbound Transportation Mgmt – Engine Division $60M+ Annual Freight Spend Engine Plants – Whitakers, NC; Jamestown, NY, Southern Indiana, Charleston, SC Memphis Distribution Center (Parts) – Memphis, TN Solution On-Site presence at all facilities managed Centralized supplier compliance, carrier mgmt, freight payment Proprietary Inbound Freight Optimization (IFO) Program Data warehousing Results Inbound Freight Optimization/Supplier Compliance (Average 11% Savings Per Day) Dedicated Fleet Rationalization – $300K - $500K / year Ongoing Milk Run Analysis & Implementation Individual Plants - Savings Identification and Project Implementation Bombardier Transportation Company $16.0B in international revenues, 2004 World’s largest railway equipment maker Project Scope Inbound Transportation Management Off-Site Receiving, Sequencing, Kitting, & Line-Side Delivery to primary assembly plant in Plattsburg, NY US, Canadian Carrier Management & Expediting Freight Payment Administration & Reporting Solution On-Site Manager & Logistics Technician in Plattsburg, NY Partnership with warehousing company for single-source solution Inbound Routing and Optimization Multi-Currency Freight Payment Complete Business Intelligence Solution on-site in Montreal Results $100K+ in savings in first four months of operation Reduced transportation spend as a % of purchased materials by 22% in first 3 quarters Vermeer Manufacturing Company Privately-held maker of agricultural, environmental and trenching equipment 7 manufacturing facilities, in Pella, IA Project Scope Inbound and Outbound Transportation Mgmt 872 Suppliers, 100 Vermeer Dealers Specialized equipment requirements Solution On-Site Logistics Manager and Logistics Technician in Pella Phased program; LTL & Parcel, then outbound to dealers Logistics Support of Lean Manufacturing Program Results 11.8% savings project for Parts Distribution network Global Small Package agreement yielding 7.5% ongoing savings Developed and deployed Dealer Shipment Email Notification Developed logistics solutions to support Bombardier Recreational Products Company Privately-held maker of recreational vehicles Ski-Doo® snowmobiles, Sea-Doo® watercraft and sport boats, Johnson® and Evinrude® outboard engines and ATVs Project Scope Inbound and Outbound Transportation – Outboard Engine Div. Outbound distribution of Sea-Doo and Sea-Doo products from Valcourt, QB to dealers throughout North America Freight Bill Audit / Multi-Currency Freight Payment Solution On-Site presence in Sturtevant, WI and Valcourt, QC Significant savings project analysis, design and implementation US and Canadian carrier base Results More than $1.6M in project savings in first year of operation $90K+ in freight audit savings Performed analysis of inbound cross-dock savings opportunity for shipments into El Paso, TX – annualized savings of $100K Identified $195K opportunity through pool distribution program Owens & Minor Company $4.5B in annual revenue Nation’s leading distributor of national name-brand medical/surgical supplies to hospitals and healthcare systems 42 Distribution Centers Project Scope Carrier Management & Purchasing Savings Project Identification & Implementation Network Redesign Dedicated Fleet Analysis and Utilization Improvement Continuous Improvement Projects Solution Dedicated Account Manager Project-focused engagement Access to Concentrek’s procurement & engineering expertise Results Completed nationwide small parcel bid process; identified significant parcel saving opportunity and changed provider Currently analyzing all 3rd party freight nationwide to optimize private fleet utilization Temple-Inland Company $4.75B in annual revenue Major manufacturer of corrugated packaging and forest products High-volume truckload shipper Project Scope Inbound and Outbound Transportation Management Carrier Capacity Development Load Planning based on production schedule & changes Bogalusa, LA Paper Mill Solution On-Site Logistics Manager in Bogalusa In/Out Matching / Continuous Moves Capacity Management, Trailer Pool Program National, Regional, Local Carrier Relationships Results Provided stable, steady capacity in highly competitive TL market in 2004 Redesigned inbound scheduling process to eliminate yard hostling costs and improve loading efficiency Implemented inbound/outbound load matching program Rain Bird Company Privately-held manufacturer of irrigation products Agricultural, landscape, golf course and home irrigation Project Scope Daily load optimization from two national DCs Freight bill audit & payment Reporting Savings Projects Solution Remote Optimization – low touch, fast, cost effective daily optimization of orders (consolidation, mode & carrier selection) Centralized Freight Payment Engineering support of savings initiatives Results Average two-day hold consolidations savings – 30% vs. LTL direct 250K+ in annualized savings opportunities identified New Customers - 2005 Company World leader in designing, manufacturing, marketing, and distributing agricultural equipment Company Commercial, industrial, recreational, emergency and residential power equipment Sold in more than 140 countries by 3900 dealers Project Scope Solution Major leader in increasing the availability and reliability of electric power Inbound Freight Optimization for multiple US manufacturing facilities Project Scope Inbound Freight Planning and Execution for primary manufacturing facility Concentrek’s proprietary Inbound Freight Optimization Program (IFO) Solution Concentrek’s proprietary Inbound Freight Optimization Program (IFO) Implementation and Engineering Capabilities Phase Project Implementation – Example 6/1/03 5/1/04 10/3/03 Phase 1 Implementation •Finalize BOD Phase II •Network Redesign ONGOING Phase III •Expedite RFP •Site Assessments •Domestic TL RFP •Dynamic Routings •On-Site Staffing •Domestic LTL RFP •Carrier Management Transition (Rate Conversion and Contracting) •AK Forwarder Replacement •Outbound engine pooling analysis •Address operational issues relating to network design •Design and Implement outbound Beloit engine optimization •DC Replenishment •TM Optimization Development •Outbound Beloit 3 day hold engineering study •Update and distribute Carrier Routing Guide •Freight Claims Management •Supplier Compliance Reporting •Canadian LTL RFP •UPS Zone Skipping •BRP inbound BOMEX synergies •Small package shipment level freight bill processing •Coordinate ICN Process •OB Shipment Visibility, ASN’s •Implement freight audit/payment process •Freight optimize with other BRP facilities Engineering & Analysis Capabilities Cross Dock Analysis Inbound El Paso Volume Weight by ZIP Code 100,000 to 999,999 10,000 to 99,999 1,000 to 9,999 100 to 999 Engineering & Analysis Capabilities Quarterly Operations Review – Customer KPIs Destination Key BMCA - Sturtevant BMCA - Sturtevant BMCA - Sturtevant BMCA - Sturtevant BMCA - Sturtevant BMCA - Sturtevant BMCA - Sturtevant BMCA - Sturtevant BMCA - Sturtevant BMCA - Sturtevant BMCA - Sturtevant BMCA - Sturtevant Shipping Year-Pd 2004-01 2004-02 2004-03 2004-04 2004-05 2004-06 2004-07 2004-08 2004-09 2004-10 2004-11 2004-12 Totals Shipment Weight Total 1,708,766 1,772,397 1,913,337 1,437,594 1,493,100 1,992,908 1,092,848 1,981,757 1,833,614 2,104,705 2,020,335 1,575,057 20,926,418 Paid Amount Total $ 129,003.67 $ 132,296.16 $ 152,411.03 $ 125,909.88 $ 132,420.13 $ 145,737.41 $ 83,908.61 $ 128,438.84 $ 130,012.68 $ 147,878.87 $ 156,854.25 $ 109,299.92 $ 1,574,171.45 Cost Per IB Trends $ 0.0755 $ 0.0746 $ 0.0797 $ 0.0876 $ 0.0887 $ 0.0731 $ 0.0768 $ 0.0648 $ 0.0709 $ 0.0703 $ 0.0776 $ 0.0694 $ 0.0752 FY05 Goal: = $0.1606/lb. 2,500,000 2,250,000 2,000,000 1,750,000 1,500,000 1,250,000 1,000,000 750,000 500,000 $0.1200 $0.0800 COST/LB TRENDS $0.1600 $0.0400 SHIPMENT YEAR/PERIOD 20 04 -1 2 20 04 -1 0 20 04 -1 1 20 04 -0 8 20 04 -0 9 20 04 -0 6 20 04 -0 7 $20 04 -0 4 20 04 -0 5 20 04 -0 1 20 04 -0 2 20 04 -0 3 SHIPMENT WEIGHT STURTEVANT IB COST/LB. TRENDS - 2004 INBOUND Shipment Weight Total Cost Per IB Trends Engineering & Analysis Capabilities Customer Reporting Tool Faces of the Concentrek Team Concentrek Founders Mike McClelland John Patterson Greg Morello Concentrek Totally centered on your bottom line.