DoDAAD PRC Commercial Addressing August 23, 2011 Kirstin J. Knott – Director, FedEx Government Services Jim Solares – Manager, FedEx Government Services Addam Cuevas and Mark Edem – Worldwide Account Managers - DLA

Background Best Practices Insufficient Address Correction and Reduction Benefits of Populating the Commercial Street Address Questions Agenda 08/23/20112 DoDAAD PRC

FedEx delivers thousands of DoD shipments daily A significant percentage do not follow standard addressing guidelines which leads to service disruptions and decreases visibility FedEx is delivering shipments despite addresses lacking key pieces of information Some shipments are delayed due to incomplete delivery addresses Lack of information or software field mapping issues are key factors As systems become more automated the seriousness of this issue will be amplified Background 08/23/20113 DoDAAD PRC

Commercial Transportation Best Practices A valid delivery address should be complete and follow standard addressing guidelines (which include): Name of recipient/consignee name Company Name (Facility or location name) Address Line 1 (Valid street number & name) Address Line 2 (Ste., bldg., other key pieces of information) City State and/or Country Zip Code (if applicable) Phone Number Commercial Addressing 08/23/20114 DoDAAD PRC

Commercial Transportation Best Practices – Cont’d. Valid Address: Jane Doe DLA Distribution San Joaquin CA S Chrisman Rd Bldg. 56 Tracy, CA (209) Invalid Address: Receiving - CCP Bldg 56 Chrisman Rd Transportation Chief Tracy, CA /23/20115DoDAAD PRC

1.FedEx Express Operations builds delivery routes prior to package arrival to delivery station using recipient address data transmitted from the customer. Delivery route numbers and delivery stop sequence are also assigned. 2.Benefits:  Accurate route planning  Fewer misloads, right package on right truck  Identification and reduction in service risks and failures due to route imbalances  Early courier leave building time results in improved on time delivery performance 3.FedEx Express searches the data transmission (Recipient Name, Recipient Company name and Address Fields 1 & 2) for numeric street address. Insufficient Address Identification and Reduction 08/23/20116 DoDAAD PRC

4.Primary insufficient address types that impede capture of a numeric street address are:  Address field mapped where it pushes the numeric street address out of the FedEx Electronic Data File  Ancillary information placed at the beginning of the address such as a reference number or words like “BLDG” 1870 Aberdeen Ave  Incomplete Recipient Addresses i.e., Fleet and Industrial Supply Ct or Bldg 110 Door Insufficient Address Summary for June 2011: Insufficient Address Identification and Reduction 08/23/20117 DoDAAD PRC

……requires a sustained address database with proper numeric recipient street address information maintained Insufficient Address Identification and Reduction 08/23/20118 DoDAAD PRC

What is FedEx doing today? Utilizing your data feed to create routes and stop counts for couriers Valid data is critical as it allows for proper load planning so that shipments can be delivered on-time Invalid or Blank address fields cause inbound shipments to be worked by our staff and manually assigned a stop location. A few things: –The location selected manually may not be the right location –The material may be delivered to the right location; however, inbound visibility efforts to track the material will most likely still be ineffectual. Material that must go to a specific location, such as secret or classified material, may not be delivered to the right location causing delays in securing the material internally –Any subsequent variation of that address will cause the process to start all over again once potentially fixed The Future is Now 08/23/20119 DoDAAD PRC

What Can Standardized Addressing Accomplish? The right product, to the right customer, at the right time…..on time Improved data integrity Better utilization of data, i.e.. FedEx Insight….Inbound visibility –DLA Dashboard Project (currently only 60% accurate data available) Mitigation of possible address correction fees Better utilization of DoD staff resources – Reduction of SG&A –Eliminate the need to clarify information needed for delivery –Task DoD staff to perform more important tasks Allows your partners to perform their functions more efficiently Ultimately, the DoD will experience significant time savings Additional Benefits 08/23/ DoDAAD PRC

Questions? Valid Addresses saves time and money…. 08/23/ DoDAAD PRC