Adding Value to your Transportation Processes Simplifying Your Shipping Adding Value to your Transportation Processes Mark McMonagle VP Solutions Engineer Operations

Agenda Adding Value to your Transportation Processes Simplifying Your Shipping Agenda Adding Value to your Transportation Processes Simplifying your Non-Production Shipping QAD TMS Overview Transportation Management Global Trade Management Trade Compliance Package Exception Management ‘Live’ Software Demonstration Available On Demand Recap of Benefits Q&A Linda Hello and thank you for joining us for this webinar on Precision’s Desktop Shipping functionality. We will first discuss the challenges and opportunities that surround the process of non-production shipping, Mark will then provide an overview and demo of the product with a brief discussion of our On Demand environment, we’ll then recap the benefits and finish with a 10 minute Q&A session.

Return on Investment Reduce Transportation Costs QAD TMS - Adding Value to your Transportation Processes Return on Investment Reduce Transportation Costs Consolidations, Rate Shopping, Routing Guide Automate Manual Processes Reduce keystrokes and duplicate processes Error Free and compliant International Paperwork and Manifests Reduction in Overtime Reduce Headcount Increase opportunities for consolidations Zone Skipping, Group destinations Eliminate some 3rd party activity

Automotive Industry Challenge Solution Transportation / Trade Challenges & Opportunities by Industry Automotive Industry Challenge Meet Industry Standards (e.g. AIAIG & Odette Shipping Labels / documents) Customer-specific document and label requirements Customer Routings based on weight/carrier Scheduled / Consolidated Shipments Solution Automate label creation based on product / customer Maintain customer-specific routing instructions electronically Consolidate shipments by customer for scheduled deliveries

Consumer Products Challenge Solution Transportation / Trade Challenges & Opportunities by Industry Consumer Products Challenge Control Shipment Costs (esp. from offshore suppliers) On-time deliveries / pro-active customer service Regulatory Compliance for broad base of customers Collaboration with suppliers for direct delivery to customers Solution Multi-modal shipments and rate shopping Restricted party checks and product/country/end use compliance Visibility & tracking of inbound and outbound

High Tech / Electronics Transportation / Trade Challenges & Opportunities by Industry High Tech / Electronics Challenge On-time delivery for manufacturing lines Moving parts to spare parts depots / field service engineers Some hazmat Return / Repair Mgmt Solution Automation of key logistics processes via workflow management Electronic routing guide to support customer-routed shipments and product requirements Rules-based documentation library ensures cross-border compliance Product classification for import/export reporting Package Tracking to ensure on-time delivery Landed Cost calculations for inventory network optimization

Industrial Challenge Solution Transportation / Trade Challenges & Opportunities by Industry Industrial Challenge Often hazardous types of shipments Large / Bulky equipment needing to be broken up into multiple shipments Multiple drop shipments Solution Product compliance checks for hazardous shipments Automate hazmat documentation and label printing Load building of trucks for multiple drop-offs Create single manifest for multiple shipments

Life Sciences Challenge Solution Transportation / Trade Challenges & Opportunities by Industry Life Sciences Challenge On-time Delivery (e.g. critical drug delivery, for equipment maintenance/repair Cold Chain Shipping Product Approvals by Country Visibility within the Supply Chain Solution Track inventory from supplier through delivery to customer Reduce transportation costs through carrier and service-level choice Automate documentation to meeting country/product-specific regulations Automate regulatory compliance checks

Logistics Service Providers Transportation / Trade Challenges & Opportunities by Industry Logistics Service Providers Challenge Management / Fulfillment for multiple customers Reverse Logistics / Return & Repair Management Need for visibility to inventory movements & locations Accountability for handling goods across multiple industries/regulatory bodies Solution A single system for transportation, global trade and compliance Visibility to multiple clients, locations, inventory and transportation tracking Return labels and tracking of inbound shipments

Retail Challenge Solution Transportation / Trade Challenges & Opportunities by Industry Retail Challenge Often high volumes of shipments Visibility to supply chain to match demand with inventory availability Control of transportation costs Need for import / export compliance as new suppliers and markets are developed Solution SOA deployment of PRECISION for high volume processing Automated documentation and compliance checks Supply Chain visibility and tracking of inventory

QAD TMS Solution Overview

QAD TMS Solution Overview Supply Chain Portal & Transportation Tracking Base Transportation Management Package Exception Management …based on 1 There are a number of main components available as part of the Precision application. Our clients are able to turn on or turn off components as they see fit or as their business requirements dictate. <CLICK>  The Base component is the core of the Precision Solution it contains: The Database Over 400 Reports and Report Templates And Utilities such as ePage– which allows you to be more self sufficient in creating or modifying documents.  <CLICK> The TMS component allows you to perform Routing and Rating of your shipments and also generates labels and documents required for your shipments automatically. We also have the Global Trade Management module, which allows you to produce International documents as required. It also provides customs integration – such as AES filing here in North America or ATLAS filing in Germany. We also have the Trade Compliance module. This module provides for denied party and embargoed country screening It also provides license management capabilities for any licensed goods you may be shipping. The Package Exception Management module, provides tracking and traceing and carrier communications capabilities. It allows you to perform pro-active shipment management from your dock door through to delivery.      And finally – we also have the Supply Chain Portal component available – This module allow you to track and manage inbound shipping and purchase orders. The Supply Chain Portal is a bit separate from the rest of the product suite in that we offer it as a hosted solution with a separate database. We do this for security reasons... so that your suppliers cannot see your shipping data.   Precision is A Single platform solution It is Modular in design – allowing you to implement what you need today and build on it going forward as your needs grow without new software installation It also provides One interface to support multiple functions and allows multiple deployment options from same instance (such as a black box option, a windows UI, and also a web UI). Database Set of Rules and Workflow User Interface (black box / interactive) Shared Architecture Global Trade Management Trade Compliance

Functional Capabilities QAD TMS Base

Functional Breakdown: QAD TMS Base Key Master Tables Functionality Standard Integrations Partners* Workflow QAD SE / EE Applications Products* Rules/Rulebooks Other ERP Systems Languages (Includes Translations) QADTMS ePage (Form Design) Any WMS System Edit Codes (Numeric Formats) Document Production and Distribution (Note: This does NOT include Document Library – See GTM) Units of Measure Document Imaging Currencies Security Setup Transaction Types* Packing Pack Types* Dataflow (Create Master Shipment) Cost/Charge Codes* XML Data Exchange Utility Hazmat UN Codes* Highway (Messaging Subsystem) This is an overview of the functionality within the TMS Base module. It contains several master tables, so that you can capture data specific to KEF It also houses functionality such as our workflow engine, and the rules and rule books

Functional Capabilities Transportation Management

Functional Breakdown: QAD TMS Carrier-Related Functionality Functionality Key Transportation Documents & Labels Certified / Approved Carriers (Refer to Topic 029 – Per Carrier Functionality) Routing Guide Packing List Generate Tracking Numbers (Pro #’s / Waybill #’s) Charge Table/Rate Maintenance (All modes, spreadsheet updates) Bill of Lading (BOL) Label Production (Carrier Compliant for Integrated Carriers) Rating (Other non-carrier charges, e.g., handling, insurance) Generic Labels Electronic Communication (including End-of-Day Manifesting) Rate Shopping Dispatch / Consignment Notes Carrier Rate Maintenance and Upload Freight Quoting Hazardous / Dangerous Goods Notes (ADR , IATA, Sea) (Carrier rates and accessorials) Load Offering (e-mail offer of a shipment, portal for carrier to accept, user selects carrier) Driver’s Manifest Transit Times Consolidations/ Master Shipments Carrier Consolidations (FedEx Int’l Priority Distribution – IPD, UPS WorldEase, DHL Breakbulk Zone Skipping Load Building Desktop Shipping Basic Freight Audit (Match carrier invoice to shipping estimates) Lets start at a very high level of what is in TMS. We have broken out the Transportation Management module in to Carrier-Related Functionality, General Functionality, and Key Documents and Labels The solution automatically generates carrier labels and documents while managing carrier rates and service updates. The solution allows you to take advantage of Rate Shopping, Freight Quoting, Zone Skipping and also Desktop (or Manual) shipping (which is used for the shipping of non-inventory items) And these are some of the key documents we support in TMS.

Sample Worldwide Carrier Coverage

QAD TMS Transportation Management System Multi-modal Domestic & International Shipping Certified with 40+ carriers worldwide Automated Routing Guide Selection of carrier/mode Adhere to company policy / customer routings Communication with Multiple Carriers Rate, Label and Manifest Shipments Return Label Support Transportation Visibility in real time One of the Main goals for our TMS solution is to automate the overall shipping experience as much as possible. We do this by leveraging our Automated Routing Guide.   When a transaction is created, we analyze the data elements of the shipment and we can do a freight shop behind the sceens and assign the correct carrier and service to the shipment – based on your company policies or a customers routing request. The TMS has the capability to communicate with several carriers at once in order to route and rate your shipments while also automatically generating all of the required shipping labels and documents. We also provide real time Transportation visibility, which means that an end user can see the actual status of their shipments as they are being processed. Some of the Key features of TMS are: Multi carrier support and Multi mode support – you can ship with couriers, and parcel carries such as UPS, Fedex, DHL, Purolator, LTL carriers like Yellow Freight, truckload carriers like JB Hunt, and also Air carriers and Ocean carriers within a single application In a single step, we can route your shipments, rate them, and generate your labels and documents automatically. Under your support agreement, PRECISION will maintain carrier certifications in line with the carrier requirements. The DATA CONTENT is managed by PRECISION for Rating and Routing via our Data subscription service Benefits Uniform way of working with all shipments Transportation Visibility Ensure compliance with carrier requirements

Standard QAD TMS Features Automatic Hundredweight Consolidation Electronic Communications with Customers and Carriers Carrier Certified Manifests and Labels Automated BOL Generation Automated EOD Manifest Generation Automated HazMat compliance and documentation Automated International Document Generation Buy and Sell rating capable Could be published vs. negotiated Negotiated, with uplift applied Manage Promotions around shipping cost Let’s dig a bit deeper and talk about what is standard in QAD TMS that can benefit you. It automatically performs hundredweight consolidation, based on what you actually load onto the truck. We can generate your labels and documents automatically, including BOL’s if you are shipping LTL or truckload We can also automatically generate any required international or hazmat documents. We also have the ability to perform buy and sell rating – which means… You can have rates in the system that represent what you pay for shipping, with another set of rates that represent what you are billing the customer for shipping. These rates could represent the published rates and your negotiated rates. You could also have negotiated rates with an uplift applied if you desire.

Carrier Certification Carrier Certification Programmes Tracking number generation Label Rating Published / List Negotiated EOD FTP, HTTP, other Test Case Validation When we speak of Certified Carriers, that means that we have received certification from over 40 carriers. This means that we can correctly generate tracking numbers, shipping labels, perform accurate rating, and EOD manifesting We also do test case validation with each implementation, to ensure that you will have no issues with your certified carriers.

Other Carriers - Overview Label Rating Engine Tracking Number generation EOD Manifest URL Tracking link When we speak of non-certified carriers, we are typically talking about any mode other than small parcel. For non-certified carriers: We can generate Shipping labels and documents We can rate these shipments as we support a vast array of rate structures We can generate tracking numbers (or PRO numbers), complete with Check Digits if required We can perform EOD manifesting, which may be electronic or may simply be the printing of the driver manifest

LTL and other Carriers - Shipping Label Sender Address Details Receiver Address Details Carrier Code Pro Number (Tracking Number) Barcode of Pro Number Also available without Pro number Customizable reference field Ship Date Total Weight Mailing Label 22

Zone Skipping Consolidate based on end-point delivery Ship From nearer to final destination Pre-label with alternative Ship From Sample: US to US carrier hub

Zone Skipping - Example

QAD TMS Invoice Matching Invoice Matching Engine Automated Matching for Actual Freight Invoice Estimated Cost Determination of discrepancies Approval of supplier invoices Creation of ‘light’ shipments

QAD TMS Matching Process Shipment Retrieval by tracking number Invoice Cost tends to be Totalled Estimates matched in precedence: Freight Fuel Accessorial charges Variance calculated Carrier variance (default) Shipper variance (manually chosen)

Non-Production Shipping Challenges Simplifying your Non-Production Shipping Process Non-Production Shipping Challenges Multiple departments Different types of shipments Limited or no process in place Time consuming Little oversight Linda According to a study by PARCEL Magazine and the ARC Advisory Group, poor management of desktop shipping can lead to shipping cost increases of at least 20% on a yearly basis.

Opportunities for Improvement Non-Production Shipping Opportunities Opportunities for Improvement Empower employees Control Freight Usage Streamline handling in your mailroom / dock Automate documentation Gain visibility to costs Consolidation of carriers / accounts Linda One high-tech firm found that they had 73 different contracts in place with parcel carriers around the world. By consolidating that to three or four carriers that could serve the entire company, they found they would save an estimated 10% from their annual parcel spend.

Who Uses Desktop shipping? Non-Production Shipping Who Uses Desktop shipping? Departments and people across your company Shipping things like Samples Engineering pre-production products Marketing materials Documents Internal assets (Equipment) Mark

Why Use Desktop Shipping? Non-Production Shipping Benefits Why Use Desktop Shipping? Mark: Based on a survey of over 500 companies by ARC Advisory Group, Customers who implement DTS do so to: Visibility to multiple carrier and services rate shopping Control service options and accessorial usage Apply dynamic routing guide (Business Rules applied over Carrier Rules) Streamline the mail room / warehouse processing and productivity Ability to negotiate better rates based on total enterprise spend Automated domestic and international document generation Single system of record Ease of use…. Clients not having to create “orders” or “memo items” to generate manual shipments Client manage by exception, while the technology automates routine tasks ARC Advisory Group, The High Cost of Desktop Shipping

Functional Capabilities Package Exception Management

Shipment Tracking Challenges Lack of visibility to shipments after they leave your door Inability to track every package due to shipment volumes Too much time spent looking up tracking numbers via individual carrier websites On-time delivery is critical for time-sensitive products Missed deliveries means penalties and damages customer satisfaction

Operational and Carrier Challenges No visibility to inbound / return shipments Claims are not always made for lost/damaged shipments due to lack of resources No easy way to analyze carrier and service-level usage across the organization We rely on the carrier to tell us how they performed Invoicing can’t happen until Proof-of-Delivery is obtained

A Day in the Life of a Typical CSR Time Consuming / Inefficient Ad hoc Tracking Activities Customer calls Look up shipment Carrier Web site / System Call Advise customer of delivery status Customer Request Lost / Damaged Shipment Carrier Web Site / System Raise a Tracer Lost or Damaged Finance needs POD Screen shots / off-line notes of delivery info Revenue Recognition .

Package Exception Management Report Ship Control Tower Deliver In-transit Manage Alert 35

PEM: Delivering Value Get “Control Tower” Visibility and Management Shipments In-transit Inbound, Outbound and Return Shipping Automated Alerts Pro-Active Exception Management and Communication Automated Proof-of-Delivery Reporting Carrier A Carrier B Carrier C Carrier D PEM is an internet enabled centralized portal that provides visibility, event, and exception management of your shipments from your dock door thru to delivery. PEM can be used… for any carrier regardless of mode or service level for inbound and outbound shipping for shipments that are domestic or international The Exception Management features of PEM alert you to an Anticipated delivery commitment failures, so you can Pro Actively communicate with your customer and carriers PEM can also notify you of a lost or damaged shipment, so that you can submit a tracer with the carrier. More Carriers With Visibility Across ALL Modes and Carriers

QAD TMS Demonstration Mark Checkpoint – have we covered the issues that you expect us to cover. Are there any functional questions so far before we actually go into the software? Any concerns yes/no – what are they. * Recap as we go into presentation – that this will be a BLACKBOX implementation. Screens are being displayed purely to illustrate functional support. So as in PF Europe this will be predominantly a BLACKBOX approach.

Demo Scenario description Demo Scenarios Demo Scenario description Desktop Shipping Manual Shipment (Domestic) Parcel shipment with rate shopping Interfaced Shipment number 0900001 Demo Scenario 001 - UPS Next Air (Domestic) Interfaced Shipment number 0900002 Demo Scenario 002 - UPS Ground Interfaced Shipment number 0900003 Demo Scenario 003 - USPS – Parcel Post Interfaced Shipment number 0900004 Demo Scenario 004 - USA to France (International & Documents generation) Interfaced Shipment number 0900005 Demo Scenario 005 - LTL/TL – YFSY 500 Rated (Domestic) Tracking Package Exception Management Outbound/Inbound These are the scenarios that I will be showing you within the software. STOP HERE – GO TO WEB UI

Standard Integrations

TMS Deployments with Shipper Most popular integration One interface point at Shipper Creation Option to deploy in background* 7.1.1 Order Entry 7.9.1 Create PreShipper 7.9.2 Create Shipper QAD QAD/TMS ABS_MSTR QAD/TMS SO_MSTR Packing Consolidation Calculate Freight Shipping Documents TMS Client Workflow Kick Off Ship Confirm Message Compliance Transaction TMS Message / SOA Run TMS workflow Process Compliance / Freight Print Documents TMS Deployments with Pre Shipper 7.1.1 Order Entry QAD Warehousing (optional) QAD 7.9.1 Create PreShipper QAD/TMS ABS_MSTR QAD/TMS SO_MSTR Packing Consolidation Calculate Freight Shipping Documents TMS Client Workflow Create Shipper Kick Off Ship Confirm TMS Message / SOA Compliance Transaction

TMS Deployments with Discrete Sales Orders 7.1.1 Order Entry 7.9.1 Create PreShipper 7.9.13 SO Packing List QAD 7.9.15 SO Shipments QAD/TMS SOD_DET QAD/TMS SO_MSTR Packing Consolidation Calculate Freight Shipping Documents TMS Client Workflow Compliance Transaction TMS Message / SOA TMS Deployments QAD Warehousing Messaging High Volume Parcel Automation Limited TMS processing QAD Warehousing 7.1.1 Order Entry QAD QAD/TMS SO_MSTR Message Message TMS B lack Box / SOA Compliance Transaction Consolidation Rating / Labels

Deployment Options Available On Demand Global Solution Local Execution Established Express Carrier Network On Premise Traditional deployment behind the firewall Reduce Cost of Ownership On Demand Mark Rapid and simple to deploy No software to install, no updating required No hardware to maintain Easy On Boarding Established Carrier Network Predictable & cost effective Global solution Deploy users anywhere in world Reliable and scalable > 99.5% availability 10-5000 users Secure & risk free SAS 70 Type II secure data centers Off site back up & disaster recovery >200 support professionals

Save Time. Save Money. No Headaches. Reduce costs and control usage Empower employees Streamline handling in your mailroom / dock Ensure compliance Visibility to all shipments and cost center usage On Demand for easy on-boarding Linda Carriers / service levels / accessorials Rules-based, easy-to-use web user interface Elimate dual entry of info Business policies and procedures International documentation Easy access / easy on-boarding / reduced cost Reduce shipping costs Voluntary rate shopping Mandatory rating & routing enforcement Add local carriers that add value and reduce cost Accessorial reduction (e.g., address correction) Redirect interoffice shipments from commercial carriers to internal pouch network Reduce labor costs Cost center accounting Reduce risk Eliminate delays in international shipments Increase shipping compliance Increase business compliance with unified audit & reporting

Thank you for joining us! Additional Information Available At: www.precisionsoftware.com