1. Title SlideTitle Slide TMS Trends ABF Freight System, Inc. ® Danny Loe Director, Marketing & Public Relations

2. Transportation Management Software TMS  Provide transportation solutions to shippers  Automate transportation management processes  Created to help shippers in transportation selection, visibility, & management

3. TMS Who provides TMS packages?  3PLs  Software vendors  Carriers

4. 3PL TMS Benefits  Multiple rate quotations from participating carriers  Schedule pickups & create bills of lading  Load optimization  Manage inventory  Manage shipment documentation  Tracking & shipment visibility  Contacts / shipment locations stored online  Freight payment  Potential for virtual traffic department

5. 3PL TMS Disadvantages  Act as a layer between the shipper and asset-based provider  Possible increase in total transportation cost  Loss of internal control – increased dependence on external parties  Lack of acceptance by management and labor

6. Carrier TMS Solutions  Majority of solutions also offered by asset-based companies  Most services provided free of charge to the shipper  What carriers provide TMS solutions?  Example: ABF, Yellow, Roadway, Watkins, Fed Ex, and USF

7. Carrier TMS Benefits  Advanced, customer-specific rate quotations directly from service providers  Schedule pickups & create bills of lading  Load optimization  Manage inventory  Manage shipment documentation  Advanced tracking & shipment visibility  Contacts / shipment locations stored online  Freight payment  Potential for virtual traffic department

8. Why Consider Carrier TMS?  Internal control of your shipments  Services are provided free of charge  No middle layer; direct contact with service provider  No hidden costs per shipment  Flexible  Internet Enabled Logistics

9. Internet Enabled Logistics Internal users of Online Logistics Applications Traffic & Transportation Customer Service Accounting Sales & Marketing Manufacturing & Production Purchasing Warehousing

10. Shipment Staging Service research, Rate quotations, Pickup requests, Document creation… Shipment Visibility Comprehensive tracking, Proactive notification, Status reports, Document access… Shipment Control In-transit rerouting, Merge-in-transit, Freight invoice review… Logistics Planning Historical reports, Charts & graphs, Business trend analysis, Pool distribution… Internet Enabled Logistics

11. Shipment Staging Rate Quotations

12. Shipment Staging Pickup Request

13. Shipment Staging BOL Creation

14. Integrated Flexibility  Applications are designed to:  Streamline operations at all levels of the organization  Recognize and capitalize from efficiencies  Integrate with new technologies  Internal data is shared with applications to expedite completion of tasks  Transfer shipment details from quotation directly to the bill of lading or pickup request

15. Sharing of Internal Data Example: Location Information for Shippers

16. Shipment Staging Contact Management Add, manage, and create your own customizable contact database.

17. Shipment Staging Advanced Rate Quotations

18. Shipment Staging Commodity Management Manage a database consisting of saved commodities. Commodities shipped in the past 45 days are dynamically added. If you do not know what the class is, look it up with the NMFC item lookup.

19. Shipment Staging Rate Quotations ABF Key Features & Benefits  Quotation based on customer’s specific pricing  Choice between advanced form and short form:  Advanced Form – Offers ability to provide more shipment details and use of templates  Short Form – Page changes based on account pricing  Search NMFC by freight description  Assured and TimeKeeper options appear on quotation  Transfer shipment details from quotation directly to the bill of lading or pickup request

20. 1.The shipper performs a rate quotation. 2.The shipper creates a bill of lading based on data entered on the rate quotation. 3.The shipper submits a pickup request based on data from the bill of lading. 4.The pickup request is routed to the origin service center. With each step, requests are saved – may create templates for common requests. Also, each request may be e-mailed to multiple third parties.

21. Shipment Director The Shipment Director simplifies the steps involved in document preparation and carrier pickup notification for multiple shipments.

22. Internet Enabled Logistics Shipment Control Dynamic rerouting, Merge-in-transit, Freight invoice review… Shipment Staging Service research, Rate quotations, Pickup requests, Document creation… Shipment Visibility Comprehensive tracking, Proactive notification, Status reports, Document access… Logistics Planning Historical reports, Charts & graphs, Business trend analysis, Pool distribution…

23. Shipment Control Dynamic Rerouting Change the destination point of an in-transit shipment.

24. Shipment Control Merge-in-Transit

25. ABF Key Features & Benefits  Facilitates the simultaneous delivery of several shipments from different origin points.  Customers assign existing and/or prospective shipments to a coordinated delivery project.  Customers can track the individual shipments with a single project identification number.  ABF will deliver the shipments on the requested date and in the order specified by the customer. Shipment Control Merge-in-Transit

26. Shipment Control Invoice Review Quickly resolve questions regarding the charges on an ABF invoice. ABF answers most inquiries, by e-mail, within one hour with a detailed explanation of the basis for the charges or an immediate adjustment to the amount due.

27. Internet Enabled Logistics Shipment Visibility Comprehensive tracking, Proactive notification, Status reports, Document access… Shipment Staging Service research, Rate quotations, Pickup requests, Document creation… Shipment Control In-transit rerouting, Merge-in-transit, Freight invoice review… Logistics Planning Historical reports, Charts & graphs, Business trend analysis, Pool distribution…

28. Shipment Visibility Tracking Access status information on your shipment.

29. Shipment Visibility Proactive Notification Access up-to-the-minute status information on your shipments. Setup e-mail reminders to be notified when a shipment is delivered, delivered with an exception, may be delayed or for every change in shipment status.

30. Shipment Visibility Automated Reporting Schedule status and historical reports to be sent to you on a daily, weekly or monthly basis and access these scheduled reports by e-mail or from the online Reports Inbox.

31. Shipment Visibility Manage your shipments via a simple calendar interface that integrates your shipment data and personal events.

32. Shipment Visibility Integrated Flexibility

33. Shipment Visibility Document Access

34. Internet Enabled Logistics Shipment Staging Service research, Rate quotations, Pickup requests, Document creation… Shipment Visibility Comprehensive tracking, Proactive notification, Status reports, Document access… Shipment Control In-transit rerouting, Merge-in-transit, Freight invoice review… Logistics Planning Historical reports, Charts & graphs, Business trend analysis, Pool distribution…

35. Logistics Planning Historical Reports, Charts & Trend Analysis

36. Logistics Planning Load Optimization

37. OptiPool, Key Features & Benefits  Examines prospective large LTL shipments to be tendered at the same time and offers an online pool distribution solution.  Customers can have flexible LTL delivery schedules and can avoid the delays associated with the sequenced deliveries of the typical truckload/stop-off scenario.  Offers other advantages of LTL delivery, including single-carrier tracking, billing and control, with a single tracking number.

38. Trends for 2005+ 1. 1.The increasing availability of wireless broadband networks and devices is creating the possibility of a truly connected society. 2.Business intelligence systems are moving beyond a research and analysis platform to an intelligent, proactive state – they will monitor and manage individual transactions and business processes in real time. 3.Supply chain event management capabilities are providing real-time information about order status and inventory levels, as well as other supply chain events such as deliveries, shipments and production. 4.Expanded use of XML is providing the basis for developing specifications and standards for automating business process within and between enterprises.

39. Trend #1 – Wireless Broadband ABF Anywhere

42. Trend #2 – Business Intelligence+ ABF Historical Reports

43. Trend #2 – Business Intelligence+ ABF Charts & Graphs

44. Trend #3 – Real-time SCM ABF Status Reports

45. Status Reports, Key Features & Benefits  Pull status information for multiple shipments without knowing specific reference numbers.  Link directly from the report to related information and documents per shipment.  Download reports in multiple formats: Web page, Excel file, ASCII comma-delimited file.  Use standard reports or create and save custom reports. Trend #3 – Real-time SCM ABF Status Reports

47. Reports Inbox, Key Features & Benefits  Automate the creation and distribution of status and historical reports.  Allows customers to manage exceptions.  Fulfills the “push” niche of customers – would rather not go online to get shipment data.

48. Trend #4 – Expanded Use of XML ABF Transparent Direct Links The ABF server processes the request and returns the shipment status back to the shipper’s server. ABF Customer gABF.COM The shipper’s customer requests a shipment status from the shipper’s Web site. A program on the shipper’s Web server validates the customer data and sends a trace request to the ABF Web server (via XML, HTML or Web Services technologies). The shipper’s server parses the status data into a custom trace page that is returned to the shipper’s customer.

49. Personalization Molding information to the preference of the customer. Customization Selling to a marketplace of one; using decision support systems to determine customer needs. Integration Along the supply chain – serving the customer’s customer.

50. Personalization–Customization–Integration Integration – buy.com & USPS

51. Personalization–Customization–Integration Integration – chemdeals.com & ABF

54. Satisfied Customers