Single Source Presentation

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What’s your next move?™ SINGLE SOURCE INTERMODAL DEDICATED FINAL MILE TRUCKLOAD LESS THAN TRUCKLOAD REFRIGERATED FLATBED EXPEDITED J.B. Hunt Single Source Building Partnerships

Transcript of Single Source Presentation

What’s your next move?™

SINGLE SOURCE • INTERMODAL • DEDICATED • FINAL MILE • TRUCKLOAD • LESS THAN TRUCKLOAD • REFRIGERATED • FLATBED • EXPEDITED

J.B. Hunt Single SourceBuilding Partnerships

2What’s your next move?™ |

Agenda

4 Overview of Solutions4 Operations – CVD®

4 Transportation Management Systems

4 Q&A

3What’s your next move?™ |

J.B. Hunt Solutions

4 Intermodal4 Dedicated4 Truckload4 LTL4 Delivery4 Refrigerated4 Flatbed4 Expedited

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Intermodal Advantages

h Largest company-owned container fleet

h Proprietary company-owned chassis

h Company drivers

h Integration with other JBHT asset offerings

h Delta Intermodal Service Group

h Experienced Network Management

h Carbon Emission Reduction / Calculation

h On Site Load Securement Analysis

h Long standing, mutually-beneficial relationships

h Favorable contracts

h Expedited rail ramp entry/exit

h Expedited or standard service available

Ownership ExecutionRail

Partnerships

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Dry Van Solutions

4 Over 21,500 capacity providers

4 Over 3,100 company tractors

4 Over 13,000 company trailers

4 Tractor and trailer tracking available

4 Team and expedited transit available

4 Multiple equipment types

4 Service to all Canada and Mexico

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LTL Solutions

4 Customized solutions

4 Online rate quotes & booking

4 Online BOL, track and trace

4 Multiple pricing options

4 Special handling capabilities

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LTL Solutions

4 Customized solutions4 Special handling capabilities

h Lift gateh Temperature protecth Expedited

4 Online BOL4 Online track and trace4 Online rate quotes4 Online booking4 Multiple pricing options

h Czarlite® rates availableh Per pallet pricingh Contracted rates

4 Multiple carrier options

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LTL Consolidation

4 Cross Dock4 Pool Points4 Zone Skipping4 Warehousing4 Transloading4 Distribution Services4 ETP – Enterprise Transportation

Planning

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4 Over 3,000 teams available

4 Service to US and Canada

4 Specialized Services Available

4 Equipment Availableh 48’ and 53’ Vansh Refrigeratedh Flatbedh Straight Truck & Cargo Van

Team & Expedited Solutions

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Final Mile Solutions

4 Home & Office Deliveryh Dedicated equipment usedh Warehousing availableh Product set-up available

4 Drop off and white glove delivery

4 Full delivery visibility technology

4 Uniformed staff4 Branded equipment

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Transportation Management

4 Single Source Management

4 Network and Freight Optimization

4 Bid Management

4 Freight Payment Audit

4 Carrier Risk Consultation

4 Site Selection

4 Consulting

What’s your next move?™

SINGLE SOURCE • INTERMODAL • DEDICATED • FINAL MILE • TRUCKLOAD • LESS THAN TRUCKLOAD • REFRIGERATED • FLATBED • EXPEDITED

Operations - CVDWhat’s your next move?

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Customer Value Delivery®

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Customer Value Delivery®

UNDERSTAND4 Cross-functional process involving sales, operations & IT groups

4 Calls and meetings scheduled to ensure a clear understanding of specific needs, connectivity and activities

4 Key performance indicators mutually identified

4 Enables a seamless startup process

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Customer Value Delivery®

DELIVER4 Implementation process started

4 People, equipment, and systems placed

4 Systems connectivity finalized

4 Operations team begins executing designed solution

4 Manage exceptions

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Customer Value Delivery®

MEASURE4 Award-winning technology measures performance

4 Weekly, monthly, and year-to-date intervals

4 Evaluate planned vs. actual performance

4 Review successes or issues

4 Establish priorities for continuous improvement

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Customer Value Delivery®

COMMUNICATE4 Formal communication methods

4 Planned review events

4 Mutual review of past performance

4 Discussion of future priorities

4 Strong relationship building

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Customer Value Delivery®

ANTICIPATE

4 Always seeking to improve performance

4 Create more value and control costs

4 Analysis and idea creation

4 Improve position in respective markets

What’s your next move?™

SINGLE SOURCE • INTERMODAL • DEDICATED • FINAL MILE • TRUCKLOAD • LESS THAN TRUCKLOAD • REFRIGERATED • FLATBED • EXPEDITED

ConnectivityWhat’s your next move?

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Information Technology Overview

4Award-Winningh 350 internal technology employeesh 40+ industrial engineersh 40+ offshore developersh Premier 100 Leader – Kay Palmer, CIOh Premier 100 Leader – Tracy Black, SVP IT

4Differentiatorsh Handheld Technologyh Full feature “in-cab” systemsh State of the art call center technologyh Proprietary optimization technology (ETP)h Best-in-class safety technologiesh Complete carrier management

4Complete system integrationh Proven integration with3rd Parties (SAP, Oracle, etc...)h Internet enabled self-service support (myJBHunt)h Web services and automation to integrate corporate web sitesh EDI and XML supports large volume data exchange

CRM Software

Most Innovative Third Party Service Provider

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TMS Customers

What’s your next move?™

SINGLE SOURCE • INTERMODAL • DEDICATED • FINAL MILE • TRUCKLOAD • LESS THAN TRUCKLOAD • REFRIGERATED • FLATBED • EXPEDITED

Critical TMS ComponentsWhat’s your next move?

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Our System

Manage Freight-Tender-Optimize-Appointment Scheduling

-Track & Trace

Manage Carriers-Tender -Status - Invoicing

Manage Drivers -Safety-Directions-Fueling

Analysis

Contract Management

Rate Publication

Spot Quote Management

Routing Guide

Perfect Invoice-Auto Pay

Freight Charge Calculation

Freight Payment Interface

Reporting-KPI Reporting-Cost Analysis-Carrier Turndown-Mode Conversion-Routing Guide Compliance

-Data Storage-Proof of Delivery

Shipment Consolidation

Routing & Scheduling

Mode Selection -LTL-Multi-stop TL-Dedicated Fleet- Intermodal-Truck

Carrier Selection

Optimization

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Modeling and Optimization Capabilities

4 Enterprise Transportation Planning (ETP)h Consolidate Shipmentsh Route and scheduleh Select best mode

4 LTL4 Multi-stop TL4 Dedicated fleet4 Intermodal4 Truck4 Other

h Select Best Carrierh Subject to service and other constraints

4 Best-in-Class Optimization Technology

Planning

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Operationally Implementing ETP

Inputs:• LTL, TL Rates• Shipment Level

information• Backhaul information• Location Level

information• Fleet Resource

information

Inputs:• LTL, TL Rates• Shipment Level

information• Backhaul information• Location Level

information• Fleet Resource

information

Outputs:• Multi-Stop TL

Shipments• LTL Shipments• Routing &

Scheduling information

Outputs:• Multi-Stop TL

Shipments• LTL Shipments• Routing &

Scheduling information

Web Interface Web InterfaceOptimization Engine

Planning

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Example – Mode Optimization, Truck to Intermodal Conv.

4 Results:hA large retailer significantly converted their truck volume to intermodalhCarbon savings and transportation cost savings always move together

OTR IM OTR IMLoads 1,701 12,810 1,681 19,084

Avg LOH 468 1,737 426 1,452Point to Point Miles 795,000 22.23MM 716,000 27.7MM

Tonnes CO2e 1,725 25,167 1,583 30,876

Total CO2e Carbon Savings 0 18,425 0 24,229

Total footprint redution %

2007 2008

32,45926,892

43%41%

4 Approach:hLeverage 20 yrs of Intermodal Exp.

4 Network understanding4 Service and schedules understanding4 Intermodal economics

hOptimize for low-cost solution4 Meeting service requirements

Planning

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Example – Multi-Stop TL Routing and LTL Consolidation

Data Detail4 606 shippers/receivers4 Shipment data:

MONTH Shipments WEIGHT

Sep 07 588 11,879,205

Oct 07 759 15,251,076

Nov 07 722 13,639,369

Dec 07 677 13,649,556

Jan 08 774 14,996,096

Feb 08 691 13,842,830

Mar 08 667 13,847,616

Apr 08 664 13,381,047

May 08 611 11,857,716

Jun 08 564 11,361,615

Jul 08 520 9,854,582

Aug 08 511 10,092,189

TOTAL 7748 153,652,897

Planning

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Web Portal – Routing/Transit Guide

4 Displays available transit modes and costs:h LTLh Dry Vanh Intermodal

4 Calculates transit times

Lane Optimization & Mode SelectionProcurement

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Rating & Publication System

4 Customer specific rate publication systemh Point to Pointh Zip to Ziph Zip Rangeh State to Stateh Backup Matricesh Accessorialsh Contracted time periods

Procurement

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Streamlined Menu Quick Track Automatic Notifications Logon As External User (web based) J.B. Hunt Transport News Quick Reports Customized Reports Online Forms Quick Links

Detailed list of loads-delivered, scheduled, in progress, history

View and print documents as needed (POD, Invoices)

Design custom reports that meet your individual needs.

Create automated notifications to stay informed.

Access to updated J.B. Hunt documentation, information and services

Internet Enabled Self ServiceExecution

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Auto-Tendering Capabilities

Internet, Spreadsheet, and EDI Load Tendering

EDI Load Tender Data StreamISA*00* *00* *14*098630254OMD *ZZ*HJCS1 *070726*0438*U*00301*000098507*0*P*> GS*SM*098630254OMD*HJCS1*070726*0438*98506*X*003040 ST*204*001857615 B2**HJCS****11285856**DF B2A*00*LT G62*BB*070726*W*0418*LT G62*10*070731*U*0700*LT R3*HJCS*B**J S5*1*CL LAD*PLT*25*L*50922***ON*0000025021 N9*QN*001 N9*IA*TIER4 N9*CO*0000025021 G62*69*070731*U*1400*LT N1*SF*ST. LOUIS MO*92*52400 S5*2*CU LAD*PLT*25*L*50922***ON*0000025021 N9*QN*002

Execution

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Shipment ConsolidationExecution

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LTL Consolidation – Basic Structure

ConsolidationLocation

Shipper #1 Receiver #1

Receiver #2

Receiver #3

2

OTR (ICS / JBT)

Teams

ConsolidationLocation

Intermodal

Shipper #2

Shipper #3

Step 1:

LTL Pickup

Step 2:

Cross Dock

Step 3:

Line Haul

Step 4:

Cross Dock

Step 5:

LTL Delivery

Execution

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Best In Class Load Management

4 Dynamic Carrier Selection4 Automated Freight Charges

h Line Haulh Fuel Surchargeh Accessorial Management

4 Load Tender and Trace4 Dynamic Planning4 Monitoring Options

Execution

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Best In Class Carrier Tools

4 Proprietary Routingh Customer Establishedh Hunt Established

4 Fully Integrated CMSh Carrier Contacth Payment Optionsh Insurance & Safety Data

4 Automated Uplink With DOT

4 Fully Staffed Carrier Relations Department

4 Carrier Communications

Execution

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Supply Chain Visibility

4 On-Time performance is measured daily, weekly and monthly

4 Appointment reset actions are tracked by category

4 The customer report card identifies key performance metrics by customer and facility

4 Real-time load monitoring

Execution

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Perfect Invoice

4 Rating engine4 Invoice processing4 Payment processing4 Claims Management4 Financial Reporting

Settlement

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Reporting and Analysis

MM_ YYYY MODE COST MODE COST $ %

LTL $ 91,404 LTL $ 17,313

TL $ 805,389 TL $ 813,255 $ 896,793 $ 830,569 66,225$ 7%

LTL $ 54,158 LTL $ 5,735

TL $ 658,017 TL $ 676,445 $ 712,175 $ 682,180 29,995$ 4%

LTL $ 45,093 LTL $ 7,615

TL $ 747,241 TL $ 747,486 $ 792,334 $ 755,102 37,232$ 5%

LTL $ 34,483 LTL $ 1,469

TL $ 662,473 TL $ 678,083 $ 696,957 $ 679,553 17,404$ 2%

LTL $ 33,575 LTL $ 6,544

TL $ 745,473 TL $ 753,418 $ 779,049 $ 759,963 19,086$ 2%

LTL $ 23,654 LTL $ 1,273

TL $ 666,264 TL $ 677,016 $ 689,918 $ 678,289 11,628$ 2%

LTL $ 37,633 LTL $ 13,139

TL $ 756,796 TL $ 751,068 $ 794,430 $ 764,207 30,223$ 4%

LTL $ 21,282 LTL $ 9,280

TL $ 613,688 TL $ 616,285 $ 634,970 $ 625,565 9,405$ 1%

LTL $ 28,420 LTL $ 4,571

TL $ 603,202 TL $ 617,190 $ 631,622 $ 621,761 9,861$ 2%

LTL $ 45,074 LTL $ 11,437

TL $ 620,596 TL $ 639,297 $ 665,670 $ 650,734 14,936$ 2%

LTL $ 32,006 LTL $ 5,949

TL $ 580,742 TL $ 591,054 $ 612,748 $ 597,004 15,744$ 3%

LTL $ 28,004 LTL $ 6,034

TL $ 605,749 TL $ 620,855 $ 633,753 $ 626,890 6,863$ 1%

SUMMARY $ 8,540,418 $ 8,271,815 268,603$ 3%

ACTUAL OPTIMAL SAVINGS

J an-08

Feb-08

Mar-08

Apr-08

May-08

Oct-08

Nov-08

Dec-08

J un-08

J ul-08

Aug-08

Sep-08

Settlement

h Optimization Savings:

h Spend Trends:

h Rate Benchmarking:

39What’s your next move?™ |

Sample Implementation Plan

4 Implementation Start-Up (30 days or less)h ***

4 On-Site Manager (60-90 days)h ***

4 Web Based TMS Phase 1 (30-60 days)h Pricing, Routing & Transit Guide

4 Web Based TMS Phase 2 (timeline TBD)h TL/LTL Auto Tendering Functionality

4 Web Based TMS Phase 3 (timeline TBD)h Optimized LTL Consolidation & Mode Selectionh Data, KPI Measurement, Documentation Retrievalh Long Range Planning

40What’s your next move?™ |

What’s your next move?