ELD’s IT and Operations How Do They Fit Together 1

Mileage & Routing Enterprise Software In-Vehicle Navigation ELD’s with Mobile Communications The Industry Standard for over 70 Years Trucker Tested. Trucker Approved. Results for Fleets. Trusted by Drivers. Our Products Confidential and Proprietary. Copyright© Rand McNally

Major Industry Trends & Issues A Brief Review Confidential and Proprietary. Copyright© Rand McNally

 An ELD, is an electronic device which allows drivers to remain compliant with Hours of Service (HOS) requirements for drive time restrictions.  A new proposed regulation will reportedly require all commercial motor vehicles to operate with an ELD installed.  The proposed regulation was sent to the White House Office of management and Budget earlier this year and “anticipated to be published later this year”, different than the November 8 th date previously announced.  The regulation will reportedly call for ELD’s to be implemented within the next 2 years. Confidential and Proprietary. Copyright© Rand McNally Electronic Logging Device (ELD) 4

Compliance Safety Accountability (CSA)  CSA is an automated system that quantifies motor carrier on-road safety performance based on Behavioral Analysis and Safety Improvement Categories (BASICs).  Continued poor CSA performance can result in the shutdown of trucking operation.  This is a new regulation that started in Confidential and Proprietary. Copyright© Rand McNally 2013.

Driver Shortage  Stricter safety rules combined with an insufficient number of new drivers entering the workforce has created a driver shortage  More than 90 percent of truck drivers leave in their first year, either to go to a competitor, start another career, or are fired*  Costs of recruiting new drivers are increasing – some fleets are spending over $5000/driver in recruitment and advertising costs*  Increasingly, fleets are often forced to hire less experienced drivers  Shortage potentially 30,000 drivers by end of 2014*  Drivers are now like “Free Agents” 6 Confidential and Proprietary. Copyright© Rand McNally *ATA, Transport Fundamentals, Cost of Truckload Driver Turnover

ELD Technology How it can help operations? 7

ELD Technology Breakdown Confidential and Proprietary. Copyright© Rand McNally  At a core level, ELD’s utilize 5 critical pieces of technology  These include:  On-board Computing – The device must be able to run software applications  Display Device – An ELD system must provides a user interface for the driver so they can record duty status information, certify their daily logs, and show law enforcement  GPS – Detects vehicle position by listening to global positioning satellites  Vehicle Diagnostics- Detects engine activity and odometer via a connection to the trucks diagnostic system (J1708/1939)  Wireless Communications – Transmits information to a back- end system to store and retain data ELD Technology = Mobile Communications Technology 8

9 Confidential and Proprietary. Copyright© Rand McNally Due to the new ELD regulations, the critical question facing carriers is no longer: “Do I adopt the technology?” “Invest In a Platform – Not a Product” It is “You Cannot Afford To Wait” With the right ELD system, you will effectively have a full mobile communications platform

10 Automatic Vehicle Location & Geofencing Confidential and Proprietary. Copyright© Rand McNally Location visibility improves asset utilization and minimizes deadhead miles Know when assets arrive at their destination and how long they remain on site

11 Out of Route Driving Detection Confidential and Proprietary. Copyright© Rand McNally % of miles driven are out of route (OOR) Be aware of when off route driving occurs and take immediate action

12 Electronic Hours of Service Confidential and Proprietary. Copyright© Rand McNally Eliminate costs of paper log books (~$3/mo) and gain 30 minutes per day of productivity from the driver Simultaneously improve CSA scores while also dispatching more efficiently.

13 Truck Navigation Confidential and Proprietary. Copyright© Rand McNally Reduce the stress of driving in unfamiliar areas Navigation has become a create comfort for many drivers and has proven to be an effective retention tool Avoid costly fines from driving on roads where commercial trucks are not permitted

14 2-Way Communication Confidential and Proprietary. Copyright© Rand McNally Improve command and control by streamlining the flow of communications between driver, dispatchers and customers Maximize the ratio of drivers to dispatchers by automating basic tasks and looking at issues on an exception basis

15 Confidential and Proprietary. Copyright© Rand McNally Accident / Critical Event Detection & Alerting Proactively monitor emergency events as they happen to ensure Identify driving behaviors such as following too close behind other vehicles

16 Driver & Vehicle Performance Monitoring Confidential and Proprietary. Copyright© Rand McNally Provide a fair standard for measuring driver performance. Let drivers see their own performance in real time. Try the carrot first, then use the stick with respect to performance incentives. Understand where your fuel is being used. How much does idling, speeding, improper shifting cost in gallons?

17 Remote Diagnostics / Vehicle Fault Code Detection Confidential and Proprietary. Copyright© Rand McNally Detect mechanical issues remotely through fault code alerts. Schedule maintenance proactively. Roadside breakdowns typically cost more than $500 per incident. That does not factor in the opportunity cost of the asset or customer issues

 The ROI of the system is in the hands of the managers who set company policy  Fleets that aggressively deploy the technology typically pay back the initial investment within 6 months  Getting the maximum ROI is usually not an overnight process – set realistic but escalating goals throughout the first year of deploying the system  Simply knowing your metrics is a great place to start. Is there a problem? If so where is at and what is driving it?  Target the low hanging fruit first – Idling, Speeding, Hours of Service, off route driving are easy to track and identify.  As the organization becomes more experienced with the system, begin to mine the mountains of data that is available Confidential and Proprietary. Copyright© Rand McNally Implementing ELD/Mobile Comm Technology Strategically

19 Other Benefits of EOBR Technology  Automate manual processes like Fuel Tax  FMCSA now recognizes modems as Transponders enabling an ELD to work for Pre-Clearance Bypass.  Turn administration into analysis - less time on the phone or manually tracking data  Maximize the drivers time by reducing paperwork related to VIR and HOS  Free up dispatcher time providing routes/directions  Provide better customer service by having immediate access to information such as vehicle location and ETA. Confidential and Proprietary. Copyright© Rand McNally 2013.

Questions & Answers Confidential and Proprietary. Copyright© Rand McNally Bill Bland Cell