APL Logistics MTS – Managed Transportation Services OTM SIG Singapore October, 2014

APL Logistics Introduction & China Strategy

APL Logistics MTS Service

Implementation Methodology

System Solutions

Benefits of APL Logistics MTS

Q&A

1

Outlines

APL Logistics Introduction & China Strategy

3

An overview of the NOL Group

Liner Shipping and Terminals Supply Chain Services

Container Shipping Logistics

A world leader in global transportation and logistics services Strategic focus on integrated supply chain solutions The largest shipping and transport company listed on Singapore Stock

Exchange

NOL at a Glance

• World’s 7th largest containership operator - 120 vessel fleet - Container fleet size of more than 1.1M TEUs - 9 terminals (6 owned & 3 joint venture) • US$7.3B in revenue (FY’13) • More than160 years of continuous operation • Global network serves in over140 countries

with over 100 weekly services

• Global Top 100 3PL Provider and Supply Chain

Partner

• US$1.6B in revenue (FY’13)

• More than 110 offices and agents in over 60

countries

• More than 20M ft² of warehouse facilities globally

• Leading provider of origin and destination services

4 Focused Industry Verticals

Auto Industrials Consumer Retail

5 Regions

Strategic Functions

Solutions Engineering

Supply Chain Technology

Logistics Service Quality

Account Management

Partnered with industry leaders to compliment our service offerings.

In USA for last mile Trucking

In India for domestic Rail Transportation

In Japan for Contract Logistics

In USA/India for Automotive logistics

In China for Automotive logistics

North Asia South East Asia Europe/Middle East South Asia Americas

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Organized to ensure continuous enhancement in providing better supply chain solutions to customers in complex and competitive environments

• Operating from 38 service hubs across 18 cities

• Managing over 2.5 million sqm of distribution centers and freight stations across China

• Broad transportation and distribution network covering over 2,000 locations in China, including third and fourth tier cities

• Nationwide network consisting of line-haul trucking, local PUD, short sea, rail, Yangtze River ferry, domestic air, cross -border transportation

• Over 100 owned trucks and access to

over 1,000 trucks through managed transportation services deployed nationwide

• Bonded & non-bonded trucking services through preferred partners

• Full truckload and less-than-truckload services

• Covering all major cities in China • Stringent lead time control • GPS-equipped with real time track & trace

capability

•Over 1,600 dedicated employees with key management staff in many hub locations •Supported by professional and experienced Solutions Engineering and project implementation teams focused on developing solutions for our customers’ unique supply chains •Strong customer care provided through key account management teams in China

Warehousing and Distribution Network

Owned Fleet and Network of Partners Our People and Expertise

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APL Logistics China Supply Chain Services

APL Logistics’ Suite of WMS and TMS solutions •Top-tier WMS functionality, especially retail/apparel and high-tech customers that provide:

Robust functionality drives efficiencies throughout the distribution center

Inbound: Receiving, Put away & Inventory Management

Outbound: Planning, Fulfillment & Shipping

Task Management •Proprietary applications applied to projects that require a low-middle tier functionality needs, lower cost WMS solution •Transport Management System (TMS) Driving Freight Management

• Experienced and focus in High-tech, Retail and FMCG, Automotive and Chemical

• Delivering tailored solutions and market expertise for many leading brands

Suite of Information Systems Broad and Deep Expertise in Select

Verticals Solutions for Our Customers

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Warehouse management

•Inbound and outbound management

•Automatic receiving and picking according to orders; Inventory management

•Value-added Services - Labeling and repacking according to buyers’ requirements

Distribution Management

•Transportation management

•Distribution planning and arrangements, cargo tracking and timely feedback

•WMS & TMS support inventory transfer and management

•Integrated Order Management with clients

Supplier Management

•Coordination of inbound shipments with suppliers

•Documentation and customs clearance

•Physical receipt, storage and inventory data integrity and visibility

•Cargo staging and delivery to fulfillment locations

APL Logistics China Supply Chain Services Con’t

HAK

Shanghai

Beijing

Tianjin

Qingdao

Dalian

Shenyang

Hangzhou

Nanjing

Guang zhou

Shenzhen

Hong Kong

Zheng zhou

Wuhan

Chang sha

Chengdu

Chongqing

Xi’an

Hefei

Weihai

Harbin

Changchun

Shijiazhuang

Taiyuan

Nanchang

Kunming

Guiyang

Nanning

Haikou

Xiamen

Lanzhou

Urumqi

Lhasa

Yinchuan

Xining

Huhehaote

Jinan

Huiyang Dongguan

Quanzhou

Ningbo

Bazhou

To Vietnam

APLL SCS operation site, DC

APLL SCS operation site, Hub

Futrue potential hubs

17ops cities nationwide

Among 17 cities, 11 hubs have been set up, which in line with China economic development trend • Shenyang, Beijing,

Zhengzhou, Shanghai, Wuhan, Changsha, Guangzhou, Shenzhen, Dongguan, Huiyang, Hong Kong

Further 25 hubs will be set up within next 3 years

Trucking Business Volume 2013: • Over 175,000 truck moves • 715k+ orders delivered to 200 plus cities • 2,000+ trucks employed • 30+ trucking partners contracted. • 70k+ moves of container haulage

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Our hub and network provides extensive China coverage

APL Logistics MTS Service

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Sales Order

Creation

Delivery Order

Creation

Shipment Creation and Optimization

Shipment Execution

Shipment Trace and

Track

Operation Reporting

Service and Payment

Verification Payment

APL Logistics Provides managed Transportation Service to Customer

Customer ERP system

APL Logistics OTM Customer ERP system

3PL 3PL 3PL

OTM Platform

APL Logistics Control Tower

3PL1 3PL2 3PL3 3PL4 3PLn

APL Logistics provides a Control Tower between Customer and 3PLs

The control tower includes an IT platform and a Operational Team

• Order Capture

• Order Validation

• Shipment Optimization

• Tender to 3PLs

• Track and Trace

• Exceptional Handling

• Settlement Verification

• KPI-Reporting

Customer

Implementation Methodology

Implementation Methodology

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25% 50% 75% 100%

Project Resource Consumption / Per Phase

Project Team Alignment

13

Operational Organization

APLL Account Manager

Site 1 Supervisor

Operator

1

Operator

2

Operator

3

3PLs

Customer

Daily Work Communication

Daily Work Communication

Site 2 Supervisor

Operator

1

Operator

2

3PLs

System Solutions

APL Logistics OTM Journey

2009 2010 2011 2012 2013 2014

Regions Locations

Africa 3

Asia 172

Caribbean 7

Central/North America 10

Europe 4

Middle East 3

South America 12

Grand Total 211

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Purchased

Oracle OTM

software

Domestic Land Transport

Optimization for a large

Chemical company in North

America

ShipmentOptimizer

Plus in Asia and

Europe

ShipmentOptimizer

implemented for a leading

Sports Footwear company in

North America with Asia

International ShipmentOptimizer

Pro for a Leader in Sports and

Apparel in Asia and North America

ShipmentOptimizer for a

major Sporting Apparel and

Accessories company in

North America

Domestic Land Transport

Optimization for a large Chemical

company in China

Expansion from Legacy TMS and

move forward to a collaborative

domestic TMS platform (ShipMax)

Domestic Land Transport

Optimization in China for a

Key Retailer

Domestic Land Transport

Optimization for a large

Chemical company in

Mexico

Domestic Land

Transport

Optimization in

Europe for a Key

Retailer

Continuous

development for our

International Logistics

platform

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Order Management & Integration Shipment Planning

OTM Shipment Execution

Order Tracking & Exception Management

Settlement Management

Management Reports

• EDI Integration • Multiple Order Entry Modes (EDI, Manual) • Order Pre-Processing & Validation

• Consider Various Shipment Options • Consider Request Delivery Date and Pickup/Delivery Window • Consider Commodity Characters (DG/Non DG) • Worst Direct Cost, Best Direct Cost, Best Planned Cost and Cost Savings • Auto Trucking Cost Calculation

• Service & Payment Verification Process

• Shipment Tendering Process • Shipment Spot Rating • Shipment Management

• Order event mass update • Order track& trace visibility • E-POD management • Milestone to alert user on events which require attention and action

• Operational Reporting • Management Reports & KPIs - 3PL KPI: -On-time Delivery ; -Timely Reporting; -Tender Reject… APLL KPI: -Productivity ; -Cost Saving…

APL Logistics provides OTM System solution to Customers

Order in OTM via interfaced from Customer system

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Order Management & Integration (1/2)

Order in OTM via manually created by excel upload

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Order Management & Integration (2/2)

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Distance Calculation (1/2)

Distance engines supported by OTM do not have map data for China

Interface is developed to query distance engine that host China map data

OTM send source/destination location data

Interface return lane and distance info to OTM

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Distance Calculation (2/2)

OTM build orders directly for worst direct cost and best direct cost and then get cost saving

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Shipment Planning (1/2)

OTM will consolidate orders into shipment with below criteria and choose service provider with best planned cost

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Shipment mode (Truck/Rail/Multimodal)

Reefer/Non Reefer DG/Non DG

Request Delivery Date

Shipping Window

Source City and Delivery

City

Equipment Weight Constraint

Shipment Planning (2/2)

Tender to Carrier

Carrier accept/decline the tender

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Shipment Execution

Use OTM UI to mass update order event

Order track & trace visibility

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Order Track & Trace

Carrier can upload E-POD and other document into OTM

User can view /download these uploaded documentations

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E-POD Upload

Email alert will be sent to involved parties to remind exceptions

Message Center to alert users on order modification

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Exception Management

Carrier mass input invoice number via OTM UI after confirming the cost calculated by OTM

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Settlement Management

Carrier KPI Report

Country Spending Report

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Management Reports

Order Entry

Order Validation

Shipment Planning

Shipment Rating

Shipment Approval

Shipment Tendering

Shipment Execution

Freight Payment

Customer Billing

Order Entry

Order Validation

Shipment Planning

Shipment Rating

Shipment Approval

Shipment Tendering

Shipment Execution

Freight Payment

Customer Billing

Building Flexible Workflow

Order Entry

Order Validation

Shipment Planning

Shipment Rating

Shipment Approval

Shipment Tendering

Shipment Execution

Freight Payment

Customer Billing

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APLL Base TMS

Order Entry

Shipment Planning

Shipment Rating

Shipment Tendering

Shipment Execution

Freight Payment

APLL China TMS

Order Entry

Order Validation

Shipment Planning

Shipment Tendering

Shipment Execution

Customer Billing

APLL US TMS

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Building Flexible Workflow – Illustration (1/3)

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Building Flexible Workflow – Illustration (2/3)

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Building Flexible Workflow – Illustration (3/3)

Benefits of APL Logistics MTS

What are the Benefits?

Win Margin

Improve Visibility

Enhance Service

4. Enhance delivery service quality with pro-active risk management and instant incident response

5. Improve order tracking visibility with information sharing

1. Increase communication efficiency on the same platform

2. Save on customer’s manpower by centralization management

3. Win higher product margin due to potential savings on cost of shipment

APL Logistics MTS: we know what you want, we can make it better.

Increase Efficiency

Save Manpower

Q&A

Thank you