© transplace 2015. all contents confidential. 1 cscmp atlanta roundtable: planning and procurement...
TRANSCRIPT
copy Transplace 2015 All Contents confidential 1
CSCMP Atlanta Roundtable Planning and Procurement of
TransportationndashA Panel Discussion
December 18 2015
2copy Transplace 2015 All Contents confidential
bull Introductionsbull Freight Market Conditionsbull Perspectives from Panelistsbull QampA
Agenda
3copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
4copy Transplace 2015 All Contents confidential
TECHNOLOGY SOLUTION
Transplace Technology and Services
5copy Transplace 2015 All Contents confidential
Transplace Footprint
AVERAGE EMPLOYEE TENURE
54 YEARSNUMBER OF TRANSPLACE
1200+
TOTAL NUMBER OFTRANSPLACECOE LOCATIONS 16
EMPLOYEES
Calgary ABEdison NJFrisco TX (Dallas Headquarters)Greensboro NCGreenville SCKennett Square PA (Philadelphia)Lowell AR (Northwest Arkansas)Laredo TXMexico City MXMonterrey MXMontreal QCOrange CA (Los Angeles)Richmond Hill ON (Toronto)St Louis MOStuttgart ARTinley Park IL (Chicago)
October 2013 October 2014 October 2015
Transportation Demand and Capacity Trends are Local
October is usually busy but October 2015 is relatively quiet October 2013 Typical fall freight season October 2014 Capacity constrained due to HOS West Coast
ports October 2015 More demand than 2013 but also a lot more
trucks
Business-critical markets or lanes may still be challenging
copy 2015 DAT Solutions
LT Ratio00 55+
7copy Transplace 2015 All Contents confidential
bull ELD mandate late lsquo17early lsquo18 pending no further legal challenges
ndash Data shows mid single digit negative impact to carrier utilization
bull Suspension of HOS restart provision minimally impactful (+ lt1)
ndash Suspension contingent on more robust studyndash Unlikely to see changes to maximum drive
time near term
bull Significant progress with existing initiatives and the introduction of additional initiatives unlikely with Republican Congress and Interim FMCSA Commissioner
Regulatory UpdateLimited near-term impact but expectation remains that regulations are likely to generally restrict capacity longer term
8
Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Problem not Just a Carrier Problem
Source BBampTCM (analysis and survey) comments on right from BBampTCM cartoon from ATA
0 10 20 30 40 50 60 70 80 90 100
Other
Have Not Lef t A Trucking Job
They Were Running Me Too Hard
I Just Wanted To Make A Change
Didnt Get The Right Loads Or Enough Loads
Didnt Get Home Enough
Lack Of Recognition amp Respect
Pay
288
165
73
138
223
183
298
380
280
159
94
104
184
238
341
429
Source BBTCM analysis and survey
Why Did You Leave Your Last Trucking Job
Owner-Operator Company Driver
Does the shipper value a driverrsquos time
Bathrooms phones Wifi availability Helpful staff Parking availability Clear signs Paperwork handled
courteously and simply
Third Parties Gate Do they share your view
3 rate hike ~1 goes to driver
9copy Transplace 2015 All Contents confidential
Truckload Bid Savings Gap Analysis
Savings reduced shippers accept lower savings to align with ldquocore carriersrdquo
Savings Gap increases as carrier capacity tightens
2008 2009 2010 2011 2012 2013 2014 2015000
500
1000
1500
2000
2500
TL Savings Gap Between Minimum Cost and Routing Guide
Savings Gap Average First Round Savings Average Final Scenario Savings
Ove
rall
Ave
rage
Sav
ings
Coca-Cola North America amp
Coca-Cola Bottling System
Transportation Planning
Classified - Internal use--Restricted
Two Business Model RTM
Production Center to Distribution Center to Red Truck
Production Center to WarehouseDistributor
Highly Confidential ndash Not for Distribution
Coca-Cola
bull US Transportation
bull More than 10000 lanesbull Average Length of Haul 250 milesbull Freight Spend $14B
bull Full Truck Loadbull 11 million shipments
bull Less than Truck Loadbull $16M
bull Oceanbull $120M
bull Railbull Intermodal lt 1bull Tanker ndash Raw Materials
bull The worldrsquos largest beverage companyndash More than 500 brands over 200 countries
19 billion servings each day
bull North America Operating Modelndash Coca-Cola North America (CCNA) Coca-
Cola Refreshments (CCR) and bottler partners
bull US Operationsndash Sparkling Beverages (Coca-Cola
Refreshmentsbull 70 Production Centers
ndash Still Beverages (Coca-Cola North America)bull 8 Chilled Production Centersbull 6 Syrup Production Centersbull 15 Still Production Centers
Coca-Cola at a glancehellip
Transportation Procurement StrategyOverview
2016
Highly Confidential ndash Not for Distribution 13
Long Term Demand greater than Supply
So why not
increase trucks
Highly Confidential ndash Not for Distribution
Our Transportation Strategy starts with Mode Allocation
14
IntermodalIntermodalCaptive FleetCaptive Fleet Carrier Type AllocationCarrier Type Allocation
Customer DirectCustomer Direct Plant to PlantPlant to PlantPrivate FleetPrivate FleetDedicated FleetsDedicated Fleets 3PL Brokers3PL BrokersAsset CarriersAsset Carriers
CORE CHALLENGER CONTENDER
Dedicated Private Fleet
Intermodal
Over the Road Asset
3PL
Supplier Relationship MngSupplier Relationship Mng
Mode OptimizationMode Optimization
Key initiatives complement
one another to create a holistic transportation
strategy
Highly Confidential ndash Not for Distribution
Evolution of CCR Carrier Base
2011Total Carriers 335
3PL Brokers 45
Carriers moving 80 72
2011 20132012
2012Total Carriers 265
3PL Brokers 15
Carriers moving 80 66
2015Total Carriers ~77
3PL Brokers 7
Carriers moving 80 22
2014Total Carriers ~85
3PL Brokers 8
Carriers moving 80 30
2013Total Carriers ~110
3PL Brokers 8
Carriers moving 80 35
2014 2015
2016Total Carriers 60
3PL Brokers 6
Carriers moving 80 18
2015
Highly Confidential ndash Not for Distribution
Great execution leads to long-term partnershipsDaily
ExecutionLong-term Relationships
CAMProgram
Scorecards
Value-Add ScoresFo
reca
st
Performance Communication
Mini-bid
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
2copy Transplace 2015 All Contents confidential
bull Introductionsbull Freight Market Conditionsbull Perspectives from Panelistsbull QampA
Agenda
3copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
4copy Transplace 2015 All Contents confidential
TECHNOLOGY SOLUTION
Transplace Technology and Services
5copy Transplace 2015 All Contents confidential
Transplace Footprint
AVERAGE EMPLOYEE TENURE
54 YEARSNUMBER OF TRANSPLACE
1200+
TOTAL NUMBER OFTRANSPLACECOE LOCATIONS 16
EMPLOYEES
Calgary ABEdison NJFrisco TX (Dallas Headquarters)Greensboro NCGreenville SCKennett Square PA (Philadelphia)Lowell AR (Northwest Arkansas)Laredo TXMexico City MXMonterrey MXMontreal QCOrange CA (Los Angeles)Richmond Hill ON (Toronto)St Louis MOStuttgart ARTinley Park IL (Chicago)
October 2013 October 2014 October 2015
Transportation Demand and Capacity Trends are Local
October is usually busy but October 2015 is relatively quiet October 2013 Typical fall freight season October 2014 Capacity constrained due to HOS West Coast
ports October 2015 More demand than 2013 but also a lot more
trucks
Business-critical markets or lanes may still be challenging
copy 2015 DAT Solutions
LT Ratio00 55+
7copy Transplace 2015 All Contents confidential
bull ELD mandate late lsquo17early lsquo18 pending no further legal challenges
ndash Data shows mid single digit negative impact to carrier utilization
bull Suspension of HOS restart provision minimally impactful (+ lt1)
ndash Suspension contingent on more robust studyndash Unlikely to see changes to maximum drive
time near term
bull Significant progress with existing initiatives and the introduction of additional initiatives unlikely with Republican Congress and Interim FMCSA Commissioner
Regulatory UpdateLimited near-term impact but expectation remains that regulations are likely to generally restrict capacity longer term
8
Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Problem not Just a Carrier Problem
Source BBampTCM (analysis and survey) comments on right from BBampTCM cartoon from ATA
0 10 20 30 40 50 60 70 80 90 100
Other
Have Not Lef t A Trucking Job
They Were Running Me Too Hard
I Just Wanted To Make A Change
Didnt Get The Right Loads Or Enough Loads
Didnt Get Home Enough
Lack Of Recognition amp Respect
Pay
288
165
73
138
223
183
298
380
280
159
94
104
184
238
341
429
Source BBTCM analysis and survey
Why Did You Leave Your Last Trucking Job
Owner-Operator Company Driver
Does the shipper value a driverrsquos time
Bathrooms phones Wifi availability Helpful staff Parking availability Clear signs Paperwork handled
courteously and simply
Third Parties Gate Do they share your view
3 rate hike ~1 goes to driver
9copy Transplace 2015 All Contents confidential
Truckload Bid Savings Gap Analysis
Savings reduced shippers accept lower savings to align with ldquocore carriersrdquo
Savings Gap increases as carrier capacity tightens
2008 2009 2010 2011 2012 2013 2014 2015000
500
1000
1500
2000
2500
TL Savings Gap Between Minimum Cost and Routing Guide
Savings Gap Average First Round Savings Average Final Scenario Savings
Ove
rall
Ave
rage
Sav
ings
Coca-Cola North America amp
Coca-Cola Bottling System
Transportation Planning
Classified - Internal use--Restricted
Two Business Model RTM
Production Center to Distribution Center to Red Truck
Production Center to WarehouseDistributor
Highly Confidential ndash Not for Distribution
Coca-Cola
bull US Transportation
bull More than 10000 lanesbull Average Length of Haul 250 milesbull Freight Spend $14B
bull Full Truck Loadbull 11 million shipments
bull Less than Truck Loadbull $16M
bull Oceanbull $120M
bull Railbull Intermodal lt 1bull Tanker ndash Raw Materials
bull The worldrsquos largest beverage companyndash More than 500 brands over 200 countries
19 billion servings each day
bull North America Operating Modelndash Coca-Cola North America (CCNA) Coca-
Cola Refreshments (CCR) and bottler partners
bull US Operationsndash Sparkling Beverages (Coca-Cola
Refreshmentsbull 70 Production Centers
ndash Still Beverages (Coca-Cola North America)bull 8 Chilled Production Centersbull 6 Syrup Production Centersbull 15 Still Production Centers
Coca-Cola at a glancehellip
Transportation Procurement StrategyOverview
2016
Highly Confidential ndash Not for Distribution 13
Long Term Demand greater than Supply
So why not
increase trucks
Highly Confidential ndash Not for Distribution
Our Transportation Strategy starts with Mode Allocation
14
IntermodalIntermodalCaptive FleetCaptive Fleet Carrier Type AllocationCarrier Type Allocation
Customer DirectCustomer Direct Plant to PlantPlant to PlantPrivate FleetPrivate FleetDedicated FleetsDedicated Fleets 3PL Brokers3PL BrokersAsset CarriersAsset Carriers
CORE CHALLENGER CONTENDER
Dedicated Private Fleet
Intermodal
Over the Road Asset
3PL
Supplier Relationship MngSupplier Relationship Mng
Mode OptimizationMode Optimization
Key initiatives complement
one another to create a holistic transportation
strategy
Highly Confidential ndash Not for Distribution
Evolution of CCR Carrier Base
2011Total Carriers 335
3PL Brokers 45
Carriers moving 80 72
2011 20132012
2012Total Carriers 265
3PL Brokers 15
Carriers moving 80 66
2015Total Carriers ~77
3PL Brokers 7
Carriers moving 80 22
2014Total Carriers ~85
3PL Brokers 8
Carriers moving 80 30
2013Total Carriers ~110
3PL Brokers 8
Carriers moving 80 35
2014 2015
2016Total Carriers 60
3PL Brokers 6
Carriers moving 80 18
2015
Highly Confidential ndash Not for Distribution
Great execution leads to long-term partnershipsDaily
ExecutionLong-term Relationships
CAMProgram
Scorecards
Value-Add ScoresFo
reca
st
Performance Communication
Mini-bid
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
3copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
4copy Transplace 2015 All Contents confidential
TECHNOLOGY SOLUTION
Transplace Technology and Services
5copy Transplace 2015 All Contents confidential
Transplace Footprint
AVERAGE EMPLOYEE TENURE
54 YEARSNUMBER OF TRANSPLACE
1200+
TOTAL NUMBER OFTRANSPLACECOE LOCATIONS 16
EMPLOYEES
Calgary ABEdison NJFrisco TX (Dallas Headquarters)Greensboro NCGreenville SCKennett Square PA (Philadelphia)Lowell AR (Northwest Arkansas)Laredo TXMexico City MXMonterrey MXMontreal QCOrange CA (Los Angeles)Richmond Hill ON (Toronto)St Louis MOStuttgart ARTinley Park IL (Chicago)
October 2013 October 2014 October 2015
Transportation Demand and Capacity Trends are Local
October is usually busy but October 2015 is relatively quiet October 2013 Typical fall freight season October 2014 Capacity constrained due to HOS West Coast
ports October 2015 More demand than 2013 but also a lot more
trucks
Business-critical markets or lanes may still be challenging
copy 2015 DAT Solutions
LT Ratio00 55+
7copy Transplace 2015 All Contents confidential
bull ELD mandate late lsquo17early lsquo18 pending no further legal challenges
ndash Data shows mid single digit negative impact to carrier utilization
bull Suspension of HOS restart provision minimally impactful (+ lt1)
ndash Suspension contingent on more robust studyndash Unlikely to see changes to maximum drive
time near term
bull Significant progress with existing initiatives and the introduction of additional initiatives unlikely with Republican Congress and Interim FMCSA Commissioner
Regulatory UpdateLimited near-term impact but expectation remains that regulations are likely to generally restrict capacity longer term
8
Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Problem not Just a Carrier Problem
Source BBampTCM (analysis and survey) comments on right from BBampTCM cartoon from ATA
0 10 20 30 40 50 60 70 80 90 100
Other
Have Not Lef t A Trucking Job
They Were Running Me Too Hard
I Just Wanted To Make A Change
Didnt Get The Right Loads Or Enough Loads
Didnt Get Home Enough
Lack Of Recognition amp Respect
Pay
288
165
73
138
223
183
298
380
280
159
94
104
184
238
341
429
Source BBTCM analysis and survey
Why Did You Leave Your Last Trucking Job
Owner-Operator Company Driver
Does the shipper value a driverrsquos time
Bathrooms phones Wifi availability Helpful staff Parking availability Clear signs Paperwork handled
courteously and simply
Third Parties Gate Do they share your view
3 rate hike ~1 goes to driver
9copy Transplace 2015 All Contents confidential
Truckload Bid Savings Gap Analysis
Savings reduced shippers accept lower savings to align with ldquocore carriersrdquo
Savings Gap increases as carrier capacity tightens
2008 2009 2010 2011 2012 2013 2014 2015000
500
1000
1500
2000
2500
TL Savings Gap Between Minimum Cost and Routing Guide
Savings Gap Average First Round Savings Average Final Scenario Savings
Ove
rall
Ave
rage
Sav
ings
Coca-Cola North America amp
Coca-Cola Bottling System
Transportation Planning
Classified - Internal use--Restricted
Two Business Model RTM
Production Center to Distribution Center to Red Truck
Production Center to WarehouseDistributor
Highly Confidential ndash Not for Distribution
Coca-Cola
bull US Transportation
bull More than 10000 lanesbull Average Length of Haul 250 milesbull Freight Spend $14B
bull Full Truck Loadbull 11 million shipments
bull Less than Truck Loadbull $16M
bull Oceanbull $120M
bull Railbull Intermodal lt 1bull Tanker ndash Raw Materials
bull The worldrsquos largest beverage companyndash More than 500 brands over 200 countries
19 billion servings each day
bull North America Operating Modelndash Coca-Cola North America (CCNA) Coca-
Cola Refreshments (CCR) and bottler partners
bull US Operationsndash Sparkling Beverages (Coca-Cola
Refreshmentsbull 70 Production Centers
ndash Still Beverages (Coca-Cola North America)bull 8 Chilled Production Centersbull 6 Syrup Production Centersbull 15 Still Production Centers
Coca-Cola at a glancehellip
Transportation Procurement StrategyOverview
2016
Highly Confidential ndash Not for Distribution 13
Long Term Demand greater than Supply
So why not
increase trucks
Highly Confidential ndash Not for Distribution
Our Transportation Strategy starts with Mode Allocation
14
IntermodalIntermodalCaptive FleetCaptive Fleet Carrier Type AllocationCarrier Type Allocation
Customer DirectCustomer Direct Plant to PlantPlant to PlantPrivate FleetPrivate FleetDedicated FleetsDedicated Fleets 3PL Brokers3PL BrokersAsset CarriersAsset Carriers
CORE CHALLENGER CONTENDER
Dedicated Private Fleet
Intermodal
Over the Road Asset
3PL
Supplier Relationship MngSupplier Relationship Mng
Mode OptimizationMode Optimization
Key initiatives complement
one another to create a holistic transportation
strategy
Highly Confidential ndash Not for Distribution
Evolution of CCR Carrier Base
2011Total Carriers 335
3PL Brokers 45
Carriers moving 80 72
2011 20132012
2012Total Carriers 265
3PL Brokers 15
Carriers moving 80 66
2015Total Carriers ~77
3PL Brokers 7
Carriers moving 80 22
2014Total Carriers ~85
3PL Brokers 8
Carriers moving 80 30
2013Total Carriers ~110
3PL Brokers 8
Carriers moving 80 35
2014 2015
2016Total Carriers 60
3PL Brokers 6
Carriers moving 80 18
2015
Highly Confidential ndash Not for Distribution
Great execution leads to long-term partnershipsDaily
ExecutionLong-term Relationships
CAMProgram
Scorecards
Value-Add ScoresFo
reca
st
Performance Communication
Mini-bid
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
4copy Transplace 2015 All Contents confidential
TECHNOLOGY SOLUTION
Transplace Technology and Services
5copy Transplace 2015 All Contents confidential
Transplace Footprint
AVERAGE EMPLOYEE TENURE
54 YEARSNUMBER OF TRANSPLACE
1200+
TOTAL NUMBER OFTRANSPLACECOE LOCATIONS 16
EMPLOYEES
Calgary ABEdison NJFrisco TX (Dallas Headquarters)Greensboro NCGreenville SCKennett Square PA (Philadelphia)Lowell AR (Northwest Arkansas)Laredo TXMexico City MXMonterrey MXMontreal QCOrange CA (Los Angeles)Richmond Hill ON (Toronto)St Louis MOStuttgart ARTinley Park IL (Chicago)
October 2013 October 2014 October 2015
Transportation Demand and Capacity Trends are Local
October is usually busy but October 2015 is relatively quiet October 2013 Typical fall freight season October 2014 Capacity constrained due to HOS West Coast
ports October 2015 More demand than 2013 but also a lot more
trucks
Business-critical markets or lanes may still be challenging
copy 2015 DAT Solutions
LT Ratio00 55+
7copy Transplace 2015 All Contents confidential
bull ELD mandate late lsquo17early lsquo18 pending no further legal challenges
ndash Data shows mid single digit negative impact to carrier utilization
bull Suspension of HOS restart provision minimally impactful (+ lt1)
ndash Suspension contingent on more robust studyndash Unlikely to see changes to maximum drive
time near term
bull Significant progress with existing initiatives and the introduction of additional initiatives unlikely with Republican Congress and Interim FMCSA Commissioner
Regulatory UpdateLimited near-term impact but expectation remains that regulations are likely to generally restrict capacity longer term
8
Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Problem not Just a Carrier Problem
Source BBampTCM (analysis and survey) comments on right from BBampTCM cartoon from ATA
0 10 20 30 40 50 60 70 80 90 100
Other
Have Not Lef t A Trucking Job
They Were Running Me Too Hard
I Just Wanted To Make A Change
Didnt Get The Right Loads Or Enough Loads
Didnt Get Home Enough
Lack Of Recognition amp Respect
Pay
288
165
73
138
223
183
298
380
280
159
94
104
184
238
341
429
Source BBTCM analysis and survey
Why Did You Leave Your Last Trucking Job
Owner-Operator Company Driver
Does the shipper value a driverrsquos time
Bathrooms phones Wifi availability Helpful staff Parking availability Clear signs Paperwork handled
courteously and simply
Third Parties Gate Do they share your view
3 rate hike ~1 goes to driver
9copy Transplace 2015 All Contents confidential
Truckload Bid Savings Gap Analysis
Savings reduced shippers accept lower savings to align with ldquocore carriersrdquo
Savings Gap increases as carrier capacity tightens
2008 2009 2010 2011 2012 2013 2014 2015000
500
1000
1500
2000
2500
TL Savings Gap Between Minimum Cost and Routing Guide
Savings Gap Average First Round Savings Average Final Scenario Savings
Ove
rall
Ave
rage
Sav
ings
Coca-Cola North America amp
Coca-Cola Bottling System
Transportation Planning
Classified - Internal use--Restricted
Two Business Model RTM
Production Center to Distribution Center to Red Truck
Production Center to WarehouseDistributor
Highly Confidential ndash Not for Distribution
Coca-Cola
bull US Transportation
bull More than 10000 lanesbull Average Length of Haul 250 milesbull Freight Spend $14B
bull Full Truck Loadbull 11 million shipments
bull Less than Truck Loadbull $16M
bull Oceanbull $120M
bull Railbull Intermodal lt 1bull Tanker ndash Raw Materials
bull The worldrsquos largest beverage companyndash More than 500 brands over 200 countries
19 billion servings each day
bull North America Operating Modelndash Coca-Cola North America (CCNA) Coca-
Cola Refreshments (CCR) and bottler partners
bull US Operationsndash Sparkling Beverages (Coca-Cola
Refreshmentsbull 70 Production Centers
ndash Still Beverages (Coca-Cola North America)bull 8 Chilled Production Centersbull 6 Syrup Production Centersbull 15 Still Production Centers
Coca-Cola at a glancehellip
Transportation Procurement StrategyOverview
2016
Highly Confidential ndash Not for Distribution 13
Long Term Demand greater than Supply
So why not
increase trucks
Highly Confidential ndash Not for Distribution
Our Transportation Strategy starts with Mode Allocation
14
IntermodalIntermodalCaptive FleetCaptive Fleet Carrier Type AllocationCarrier Type Allocation
Customer DirectCustomer Direct Plant to PlantPlant to PlantPrivate FleetPrivate FleetDedicated FleetsDedicated Fleets 3PL Brokers3PL BrokersAsset CarriersAsset Carriers
CORE CHALLENGER CONTENDER
Dedicated Private Fleet
Intermodal
Over the Road Asset
3PL
Supplier Relationship MngSupplier Relationship Mng
Mode OptimizationMode Optimization
Key initiatives complement
one another to create a holistic transportation
strategy
Highly Confidential ndash Not for Distribution
Evolution of CCR Carrier Base
2011Total Carriers 335
3PL Brokers 45
Carriers moving 80 72
2011 20132012
2012Total Carriers 265
3PL Brokers 15
Carriers moving 80 66
2015Total Carriers ~77
3PL Brokers 7
Carriers moving 80 22
2014Total Carriers ~85
3PL Brokers 8
Carriers moving 80 30
2013Total Carriers ~110
3PL Brokers 8
Carriers moving 80 35
2014 2015
2016Total Carriers 60
3PL Brokers 6
Carriers moving 80 18
2015
Highly Confidential ndash Not for Distribution
Great execution leads to long-term partnershipsDaily
ExecutionLong-term Relationships
CAMProgram
Scorecards
Value-Add ScoresFo
reca
st
Performance Communication
Mini-bid
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
5copy Transplace 2015 All Contents confidential
Transplace Footprint
AVERAGE EMPLOYEE TENURE
54 YEARSNUMBER OF TRANSPLACE
1200+
TOTAL NUMBER OFTRANSPLACECOE LOCATIONS 16
EMPLOYEES
Calgary ABEdison NJFrisco TX (Dallas Headquarters)Greensboro NCGreenville SCKennett Square PA (Philadelphia)Lowell AR (Northwest Arkansas)Laredo TXMexico City MXMonterrey MXMontreal QCOrange CA (Los Angeles)Richmond Hill ON (Toronto)St Louis MOStuttgart ARTinley Park IL (Chicago)
October 2013 October 2014 October 2015
Transportation Demand and Capacity Trends are Local
October is usually busy but October 2015 is relatively quiet October 2013 Typical fall freight season October 2014 Capacity constrained due to HOS West Coast
ports October 2015 More demand than 2013 but also a lot more
trucks
Business-critical markets or lanes may still be challenging
copy 2015 DAT Solutions
LT Ratio00 55+
7copy Transplace 2015 All Contents confidential
bull ELD mandate late lsquo17early lsquo18 pending no further legal challenges
ndash Data shows mid single digit negative impact to carrier utilization
bull Suspension of HOS restart provision minimally impactful (+ lt1)
ndash Suspension contingent on more robust studyndash Unlikely to see changes to maximum drive
time near term
bull Significant progress with existing initiatives and the introduction of additional initiatives unlikely with Republican Congress and Interim FMCSA Commissioner
Regulatory UpdateLimited near-term impact but expectation remains that regulations are likely to generally restrict capacity longer term
8
Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Problem not Just a Carrier Problem
Source BBampTCM (analysis and survey) comments on right from BBampTCM cartoon from ATA
0 10 20 30 40 50 60 70 80 90 100
Other
Have Not Lef t A Trucking Job
They Were Running Me Too Hard
I Just Wanted To Make A Change
Didnt Get The Right Loads Or Enough Loads
Didnt Get Home Enough
Lack Of Recognition amp Respect
Pay
288
165
73
138
223
183
298
380
280
159
94
104
184
238
341
429
Source BBTCM analysis and survey
Why Did You Leave Your Last Trucking Job
Owner-Operator Company Driver
Does the shipper value a driverrsquos time
Bathrooms phones Wifi availability Helpful staff Parking availability Clear signs Paperwork handled
courteously and simply
Third Parties Gate Do they share your view
3 rate hike ~1 goes to driver
9copy Transplace 2015 All Contents confidential
Truckload Bid Savings Gap Analysis
Savings reduced shippers accept lower savings to align with ldquocore carriersrdquo
Savings Gap increases as carrier capacity tightens
2008 2009 2010 2011 2012 2013 2014 2015000
500
1000
1500
2000
2500
TL Savings Gap Between Minimum Cost and Routing Guide
Savings Gap Average First Round Savings Average Final Scenario Savings
Ove
rall
Ave
rage
Sav
ings
Coca-Cola North America amp
Coca-Cola Bottling System
Transportation Planning
Classified - Internal use--Restricted
Two Business Model RTM
Production Center to Distribution Center to Red Truck
Production Center to WarehouseDistributor
Highly Confidential ndash Not for Distribution
Coca-Cola
bull US Transportation
bull More than 10000 lanesbull Average Length of Haul 250 milesbull Freight Spend $14B
bull Full Truck Loadbull 11 million shipments
bull Less than Truck Loadbull $16M
bull Oceanbull $120M
bull Railbull Intermodal lt 1bull Tanker ndash Raw Materials
bull The worldrsquos largest beverage companyndash More than 500 brands over 200 countries
19 billion servings each day
bull North America Operating Modelndash Coca-Cola North America (CCNA) Coca-
Cola Refreshments (CCR) and bottler partners
bull US Operationsndash Sparkling Beverages (Coca-Cola
Refreshmentsbull 70 Production Centers
ndash Still Beverages (Coca-Cola North America)bull 8 Chilled Production Centersbull 6 Syrup Production Centersbull 15 Still Production Centers
Coca-Cola at a glancehellip
Transportation Procurement StrategyOverview
2016
Highly Confidential ndash Not for Distribution 13
Long Term Demand greater than Supply
So why not
increase trucks
Highly Confidential ndash Not for Distribution
Our Transportation Strategy starts with Mode Allocation
14
IntermodalIntermodalCaptive FleetCaptive Fleet Carrier Type AllocationCarrier Type Allocation
Customer DirectCustomer Direct Plant to PlantPlant to PlantPrivate FleetPrivate FleetDedicated FleetsDedicated Fleets 3PL Brokers3PL BrokersAsset CarriersAsset Carriers
CORE CHALLENGER CONTENDER
Dedicated Private Fleet
Intermodal
Over the Road Asset
3PL
Supplier Relationship MngSupplier Relationship Mng
Mode OptimizationMode Optimization
Key initiatives complement
one another to create a holistic transportation
strategy
Highly Confidential ndash Not for Distribution
Evolution of CCR Carrier Base
2011Total Carriers 335
3PL Brokers 45
Carriers moving 80 72
2011 20132012
2012Total Carriers 265
3PL Brokers 15
Carriers moving 80 66
2015Total Carriers ~77
3PL Brokers 7
Carriers moving 80 22
2014Total Carriers ~85
3PL Brokers 8
Carriers moving 80 30
2013Total Carriers ~110
3PL Brokers 8
Carriers moving 80 35
2014 2015
2016Total Carriers 60
3PL Brokers 6
Carriers moving 80 18
2015
Highly Confidential ndash Not for Distribution
Great execution leads to long-term partnershipsDaily
ExecutionLong-term Relationships
CAMProgram
Scorecards
Value-Add ScoresFo
reca
st
Performance Communication
Mini-bid
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
October 2013 October 2014 October 2015
Transportation Demand and Capacity Trends are Local
October is usually busy but October 2015 is relatively quiet October 2013 Typical fall freight season October 2014 Capacity constrained due to HOS West Coast
ports October 2015 More demand than 2013 but also a lot more
trucks
Business-critical markets or lanes may still be challenging
copy 2015 DAT Solutions
LT Ratio00 55+
7copy Transplace 2015 All Contents confidential
bull ELD mandate late lsquo17early lsquo18 pending no further legal challenges
ndash Data shows mid single digit negative impact to carrier utilization
bull Suspension of HOS restart provision minimally impactful (+ lt1)
ndash Suspension contingent on more robust studyndash Unlikely to see changes to maximum drive
time near term
bull Significant progress with existing initiatives and the introduction of additional initiatives unlikely with Republican Congress and Interim FMCSA Commissioner
Regulatory UpdateLimited near-term impact but expectation remains that regulations are likely to generally restrict capacity longer term
8
Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Problem not Just a Carrier Problem
Source BBampTCM (analysis and survey) comments on right from BBampTCM cartoon from ATA
0 10 20 30 40 50 60 70 80 90 100
Other
Have Not Lef t A Trucking Job
They Were Running Me Too Hard
I Just Wanted To Make A Change
Didnt Get The Right Loads Or Enough Loads
Didnt Get Home Enough
Lack Of Recognition amp Respect
Pay
288
165
73
138
223
183
298
380
280
159
94
104
184
238
341
429
Source BBTCM analysis and survey
Why Did You Leave Your Last Trucking Job
Owner-Operator Company Driver
Does the shipper value a driverrsquos time
Bathrooms phones Wifi availability Helpful staff Parking availability Clear signs Paperwork handled
courteously and simply
Third Parties Gate Do they share your view
3 rate hike ~1 goes to driver
9copy Transplace 2015 All Contents confidential
Truckload Bid Savings Gap Analysis
Savings reduced shippers accept lower savings to align with ldquocore carriersrdquo
Savings Gap increases as carrier capacity tightens
2008 2009 2010 2011 2012 2013 2014 2015000
500
1000
1500
2000
2500
TL Savings Gap Between Minimum Cost and Routing Guide
Savings Gap Average First Round Savings Average Final Scenario Savings
Ove
rall
Ave
rage
Sav
ings
Coca-Cola North America amp
Coca-Cola Bottling System
Transportation Planning
Classified - Internal use--Restricted
Two Business Model RTM
Production Center to Distribution Center to Red Truck
Production Center to WarehouseDistributor
Highly Confidential ndash Not for Distribution
Coca-Cola
bull US Transportation
bull More than 10000 lanesbull Average Length of Haul 250 milesbull Freight Spend $14B
bull Full Truck Loadbull 11 million shipments
bull Less than Truck Loadbull $16M
bull Oceanbull $120M
bull Railbull Intermodal lt 1bull Tanker ndash Raw Materials
bull The worldrsquos largest beverage companyndash More than 500 brands over 200 countries
19 billion servings each day
bull North America Operating Modelndash Coca-Cola North America (CCNA) Coca-
Cola Refreshments (CCR) and bottler partners
bull US Operationsndash Sparkling Beverages (Coca-Cola
Refreshmentsbull 70 Production Centers
ndash Still Beverages (Coca-Cola North America)bull 8 Chilled Production Centersbull 6 Syrup Production Centersbull 15 Still Production Centers
Coca-Cola at a glancehellip
Transportation Procurement StrategyOverview
2016
Highly Confidential ndash Not for Distribution 13
Long Term Demand greater than Supply
So why not
increase trucks
Highly Confidential ndash Not for Distribution
Our Transportation Strategy starts with Mode Allocation
14
IntermodalIntermodalCaptive FleetCaptive Fleet Carrier Type AllocationCarrier Type Allocation
Customer DirectCustomer Direct Plant to PlantPlant to PlantPrivate FleetPrivate FleetDedicated FleetsDedicated Fleets 3PL Brokers3PL BrokersAsset CarriersAsset Carriers
CORE CHALLENGER CONTENDER
Dedicated Private Fleet
Intermodal
Over the Road Asset
3PL
Supplier Relationship MngSupplier Relationship Mng
Mode OptimizationMode Optimization
Key initiatives complement
one another to create a holistic transportation
strategy
Highly Confidential ndash Not for Distribution
Evolution of CCR Carrier Base
2011Total Carriers 335
3PL Brokers 45
Carriers moving 80 72
2011 20132012
2012Total Carriers 265
3PL Brokers 15
Carriers moving 80 66
2015Total Carriers ~77
3PL Brokers 7
Carriers moving 80 22
2014Total Carriers ~85
3PL Brokers 8
Carriers moving 80 30
2013Total Carriers ~110
3PL Brokers 8
Carriers moving 80 35
2014 2015
2016Total Carriers 60
3PL Brokers 6
Carriers moving 80 18
2015
Highly Confidential ndash Not for Distribution
Great execution leads to long-term partnershipsDaily
ExecutionLong-term Relationships
CAMProgram
Scorecards
Value-Add ScoresFo
reca
st
Performance Communication
Mini-bid
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
7copy Transplace 2015 All Contents confidential
bull ELD mandate late lsquo17early lsquo18 pending no further legal challenges
ndash Data shows mid single digit negative impact to carrier utilization
bull Suspension of HOS restart provision minimally impactful (+ lt1)
ndash Suspension contingent on more robust studyndash Unlikely to see changes to maximum drive
time near term
bull Significant progress with existing initiatives and the introduction of additional initiatives unlikely with Republican Congress and Interim FMCSA Commissioner
Regulatory UpdateLimited near-term impact but expectation remains that regulations are likely to generally restrict capacity longer term
8
Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Problem not Just a Carrier Problem
Source BBampTCM (analysis and survey) comments on right from BBampTCM cartoon from ATA
0 10 20 30 40 50 60 70 80 90 100
Other
Have Not Lef t A Trucking Job
They Were Running Me Too Hard
I Just Wanted To Make A Change
Didnt Get The Right Loads Or Enough Loads
Didnt Get Home Enough
Lack Of Recognition amp Respect
Pay
288
165
73
138
223
183
298
380
280
159
94
104
184
238
341
429
Source BBTCM analysis and survey
Why Did You Leave Your Last Trucking Job
Owner-Operator Company Driver
Does the shipper value a driverrsquos time
Bathrooms phones Wifi availability Helpful staff Parking availability Clear signs Paperwork handled
courteously and simply
Third Parties Gate Do they share your view
3 rate hike ~1 goes to driver
9copy Transplace 2015 All Contents confidential
Truckload Bid Savings Gap Analysis
Savings reduced shippers accept lower savings to align with ldquocore carriersrdquo
Savings Gap increases as carrier capacity tightens
2008 2009 2010 2011 2012 2013 2014 2015000
500
1000
1500
2000
2500
TL Savings Gap Between Minimum Cost and Routing Guide
Savings Gap Average First Round Savings Average Final Scenario Savings
Ove
rall
Ave
rage
Sav
ings
Coca-Cola North America amp
Coca-Cola Bottling System
Transportation Planning
Classified - Internal use--Restricted
Two Business Model RTM
Production Center to Distribution Center to Red Truck
Production Center to WarehouseDistributor
Highly Confidential ndash Not for Distribution
Coca-Cola
bull US Transportation
bull More than 10000 lanesbull Average Length of Haul 250 milesbull Freight Spend $14B
bull Full Truck Loadbull 11 million shipments
bull Less than Truck Loadbull $16M
bull Oceanbull $120M
bull Railbull Intermodal lt 1bull Tanker ndash Raw Materials
bull The worldrsquos largest beverage companyndash More than 500 brands over 200 countries
19 billion servings each day
bull North America Operating Modelndash Coca-Cola North America (CCNA) Coca-
Cola Refreshments (CCR) and bottler partners
bull US Operationsndash Sparkling Beverages (Coca-Cola
Refreshmentsbull 70 Production Centers
ndash Still Beverages (Coca-Cola North America)bull 8 Chilled Production Centersbull 6 Syrup Production Centersbull 15 Still Production Centers
Coca-Cola at a glancehellip
Transportation Procurement StrategyOverview
2016
Highly Confidential ndash Not for Distribution 13
Long Term Demand greater than Supply
So why not
increase trucks
Highly Confidential ndash Not for Distribution
Our Transportation Strategy starts with Mode Allocation
14
IntermodalIntermodalCaptive FleetCaptive Fleet Carrier Type AllocationCarrier Type Allocation
Customer DirectCustomer Direct Plant to PlantPlant to PlantPrivate FleetPrivate FleetDedicated FleetsDedicated Fleets 3PL Brokers3PL BrokersAsset CarriersAsset Carriers
CORE CHALLENGER CONTENDER
Dedicated Private Fleet
Intermodal
Over the Road Asset
3PL
Supplier Relationship MngSupplier Relationship Mng
Mode OptimizationMode Optimization
Key initiatives complement
one another to create a holistic transportation
strategy
Highly Confidential ndash Not for Distribution
Evolution of CCR Carrier Base
2011Total Carriers 335
3PL Brokers 45
Carriers moving 80 72
2011 20132012
2012Total Carriers 265
3PL Brokers 15
Carriers moving 80 66
2015Total Carriers ~77
3PL Brokers 7
Carriers moving 80 22
2014Total Carriers ~85
3PL Brokers 8
Carriers moving 80 30
2013Total Carriers ~110
3PL Brokers 8
Carriers moving 80 35
2014 2015
2016Total Carriers 60
3PL Brokers 6
Carriers moving 80 18
2015
Highly Confidential ndash Not for Distribution
Great execution leads to long-term partnershipsDaily
ExecutionLong-term Relationships
CAMProgram
Scorecards
Value-Add ScoresFo
reca
st
Performance Communication
Mini-bid
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
8
Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Problem not Just a Carrier Problem
Source BBampTCM (analysis and survey) comments on right from BBampTCM cartoon from ATA
0 10 20 30 40 50 60 70 80 90 100
Other
Have Not Lef t A Trucking Job
They Were Running Me Too Hard
I Just Wanted To Make A Change
Didnt Get The Right Loads Or Enough Loads
Didnt Get Home Enough
Lack Of Recognition amp Respect
Pay
288
165
73
138
223
183
298
380
280
159
94
104
184
238
341
429
Source BBTCM analysis and survey
Why Did You Leave Your Last Trucking Job
Owner-Operator Company Driver
Does the shipper value a driverrsquos time
Bathrooms phones Wifi availability Helpful staff Parking availability Clear signs Paperwork handled
courteously and simply
Third Parties Gate Do they share your view
3 rate hike ~1 goes to driver
9copy Transplace 2015 All Contents confidential
Truckload Bid Savings Gap Analysis
Savings reduced shippers accept lower savings to align with ldquocore carriersrdquo
Savings Gap increases as carrier capacity tightens
2008 2009 2010 2011 2012 2013 2014 2015000
500
1000
1500
2000
2500
TL Savings Gap Between Minimum Cost and Routing Guide
Savings Gap Average First Round Savings Average Final Scenario Savings
Ove
rall
Ave
rage
Sav
ings
Coca-Cola North America amp
Coca-Cola Bottling System
Transportation Planning
Classified - Internal use--Restricted
Two Business Model RTM
Production Center to Distribution Center to Red Truck
Production Center to WarehouseDistributor
Highly Confidential ndash Not for Distribution
Coca-Cola
bull US Transportation
bull More than 10000 lanesbull Average Length of Haul 250 milesbull Freight Spend $14B
bull Full Truck Loadbull 11 million shipments
bull Less than Truck Loadbull $16M
bull Oceanbull $120M
bull Railbull Intermodal lt 1bull Tanker ndash Raw Materials
bull The worldrsquos largest beverage companyndash More than 500 brands over 200 countries
19 billion servings each day
bull North America Operating Modelndash Coca-Cola North America (CCNA) Coca-
Cola Refreshments (CCR) and bottler partners
bull US Operationsndash Sparkling Beverages (Coca-Cola
Refreshmentsbull 70 Production Centers
ndash Still Beverages (Coca-Cola North America)bull 8 Chilled Production Centersbull 6 Syrup Production Centersbull 15 Still Production Centers
Coca-Cola at a glancehellip
Transportation Procurement StrategyOverview
2016
Highly Confidential ndash Not for Distribution 13
Long Term Demand greater than Supply
So why not
increase trucks
Highly Confidential ndash Not for Distribution
Our Transportation Strategy starts with Mode Allocation
14
IntermodalIntermodalCaptive FleetCaptive Fleet Carrier Type AllocationCarrier Type Allocation
Customer DirectCustomer Direct Plant to PlantPlant to PlantPrivate FleetPrivate FleetDedicated FleetsDedicated Fleets 3PL Brokers3PL BrokersAsset CarriersAsset Carriers
CORE CHALLENGER CONTENDER
Dedicated Private Fleet
Intermodal
Over the Road Asset
3PL
Supplier Relationship MngSupplier Relationship Mng
Mode OptimizationMode Optimization
Key initiatives complement
one another to create a holistic transportation
strategy
Highly Confidential ndash Not for Distribution
Evolution of CCR Carrier Base
2011Total Carriers 335
3PL Brokers 45
Carriers moving 80 72
2011 20132012
2012Total Carriers 265
3PL Brokers 15
Carriers moving 80 66
2015Total Carriers ~77
3PL Brokers 7
Carriers moving 80 22
2014Total Carriers ~85
3PL Brokers 8
Carriers moving 80 30
2013Total Carriers ~110
3PL Brokers 8
Carriers moving 80 35
2014 2015
2016Total Carriers 60
3PL Brokers 6
Carriers moving 80 18
2015
Highly Confidential ndash Not for Distribution
Great execution leads to long-term partnershipsDaily
ExecutionLong-term Relationships
CAMProgram
Scorecards
Value-Add ScoresFo
reca
st
Performance Communication
Mini-bid
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
9copy Transplace 2015 All Contents confidential
Truckload Bid Savings Gap Analysis
Savings reduced shippers accept lower savings to align with ldquocore carriersrdquo
Savings Gap increases as carrier capacity tightens
2008 2009 2010 2011 2012 2013 2014 2015000
500
1000
1500
2000
2500
TL Savings Gap Between Minimum Cost and Routing Guide
Savings Gap Average First Round Savings Average Final Scenario Savings
Ove
rall
Ave
rage
Sav
ings
Coca-Cola North America amp
Coca-Cola Bottling System
Transportation Planning
Classified - Internal use--Restricted
Two Business Model RTM
Production Center to Distribution Center to Red Truck
Production Center to WarehouseDistributor
Highly Confidential ndash Not for Distribution
Coca-Cola
bull US Transportation
bull More than 10000 lanesbull Average Length of Haul 250 milesbull Freight Spend $14B
bull Full Truck Loadbull 11 million shipments
bull Less than Truck Loadbull $16M
bull Oceanbull $120M
bull Railbull Intermodal lt 1bull Tanker ndash Raw Materials
bull The worldrsquos largest beverage companyndash More than 500 brands over 200 countries
19 billion servings each day
bull North America Operating Modelndash Coca-Cola North America (CCNA) Coca-
Cola Refreshments (CCR) and bottler partners
bull US Operationsndash Sparkling Beverages (Coca-Cola
Refreshmentsbull 70 Production Centers
ndash Still Beverages (Coca-Cola North America)bull 8 Chilled Production Centersbull 6 Syrup Production Centersbull 15 Still Production Centers
Coca-Cola at a glancehellip
Transportation Procurement StrategyOverview
2016
Highly Confidential ndash Not for Distribution 13
Long Term Demand greater than Supply
So why not
increase trucks
Highly Confidential ndash Not for Distribution
Our Transportation Strategy starts with Mode Allocation
14
IntermodalIntermodalCaptive FleetCaptive Fleet Carrier Type AllocationCarrier Type Allocation
Customer DirectCustomer Direct Plant to PlantPlant to PlantPrivate FleetPrivate FleetDedicated FleetsDedicated Fleets 3PL Brokers3PL BrokersAsset CarriersAsset Carriers
CORE CHALLENGER CONTENDER
Dedicated Private Fleet
Intermodal
Over the Road Asset
3PL
Supplier Relationship MngSupplier Relationship Mng
Mode OptimizationMode Optimization
Key initiatives complement
one another to create a holistic transportation
strategy
Highly Confidential ndash Not for Distribution
Evolution of CCR Carrier Base
2011Total Carriers 335
3PL Brokers 45
Carriers moving 80 72
2011 20132012
2012Total Carriers 265
3PL Brokers 15
Carriers moving 80 66
2015Total Carriers ~77
3PL Brokers 7
Carriers moving 80 22
2014Total Carriers ~85
3PL Brokers 8
Carriers moving 80 30
2013Total Carriers ~110
3PL Brokers 8
Carriers moving 80 35
2014 2015
2016Total Carriers 60
3PL Brokers 6
Carriers moving 80 18
2015
Highly Confidential ndash Not for Distribution
Great execution leads to long-term partnershipsDaily
ExecutionLong-term Relationships
CAMProgram
Scorecards
Value-Add ScoresFo
reca
st
Performance Communication
Mini-bid
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
Coca-Cola North America amp
Coca-Cola Bottling System
Transportation Planning
Classified - Internal use--Restricted
Two Business Model RTM
Production Center to Distribution Center to Red Truck
Production Center to WarehouseDistributor
Highly Confidential ndash Not for Distribution
Coca-Cola
bull US Transportation
bull More than 10000 lanesbull Average Length of Haul 250 milesbull Freight Spend $14B
bull Full Truck Loadbull 11 million shipments
bull Less than Truck Loadbull $16M
bull Oceanbull $120M
bull Railbull Intermodal lt 1bull Tanker ndash Raw Materials
bull The worldrsquos largest beverage companyndash More than 500 brands over 200 countries
19 billion servings each day
bull North America Operating Modelndash Coca-Cola North America (CCNA) Coca-
Cola Refreshments (CCR) and bottler partners
bull US Operationsndash Sparkling Beverages (Coca-Cola
Refreshmentsbull 70 Production Centers
ndash Still Beverages (Coca-Cola North America)bull 8 Chilled Production Centersbull 6 Syrup Production Centersbull 15 Still Production Centers
Coca-Cola at a glancehellip
Transportation Procurement StrategyOverview
2016
Highly Confidential ndash Not for Distribution 13
Long Term Demand greater than Supply
So why not
increase trucks
Highly Confidential ndash Not for Distribution
Our Transportation Strategy starts with Mode Allocation
14
IntermodalIntermodalCaptive FleetCaptive Fleet Carrier Type AllocationCarrier Type Allocation
Customer DirectCustomer Direct Plant to PlantPlant to PlantPrivate FleetPrivate FleetDedicated FleetsDedicated Fleets 3PL Brokers3PL BrokersAsset CarriersAsset Carriers
CORE CHALLENGER CONTENDER
Dedicated Private Fleet
Intermodal
Over the Road Asset
3PL
Supplier Relationship MngSupplier Relationship Mng
Mode OptimizationMode Optimization
Key initiatives complement
one another to create a holistic transportation
strategy
Highly Confidential ndash Not for Distribution
Evolution of CCR Carrier Base
2011Total Carriers 335
3PL Brokers 45
Carriers moving 80 72
2011 20132012
2012Total Carriers 265
3PL Brokers 15
Carriers moving 80 66
2015Total Carriers ~77
3PL Brokers 7
Carriers moving 80 22
2014Total Carriers ~85
3PL Brokers 8
Carriers moving 80 30
2013Total Carriers ~110
3PL Brokers 8
Carriers moving 80 35
2014 2015
2016Total Carriers 60
3PL Brokers 6
Carriers moving 80 18
2015
Highly Confidential ndash Not for Distribution
Great execution leads to long-term partnershipsDaily
ExecutionLong-term Relationships
CAMProgram
Scorecards
Value-Add ScoresFo
reca
st
Performance Communication
Mini-bid
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
Highly Confidential ndash Not for Distribution
Coca-Cola
bull US Transportation
bull More than 10000 lanesbull Average Length of Haul 250 milesbull Freight Spend $14B
bull Full Truck Loadbull 11 million shipments
bull Less than Truck Loadbull $16M
bull Oceanbull $120M
bull Railbull Intermodal lt 1bull Tanker ndash Raw Materials
bull The worldrsquos largest beverage companyndash More than 500 brands over 200 countries
19 billion servings each day
bull North America Operating Modelndash Coca-Cola North America (CCNA) Coca-
Cola Refreshments (CCR) and bottler partners
bull US Operationsndash Sparkling Beverages (Coca-Cola
Refreshmentsbull 70 Production Centers
ndash Still Beverages (Coca-Cola North America)bull 8 Chilled Production Centersbull 6 Syrup Production Centersbull 15 Still Production Centers
Coca-Cola at a glancehellip
Transportation Procurement StrategyOverview
2016
Highly Confidential ndash Not for Distribution 13
Long Term Demand greater than Supply
So why not
increase trucks
Highly Confidential ndash Not for Distribution
Our Transportation Strategy starts with Mode Allocation
14
IntermodalIntermodalCaptive FleetCaptive Fleet Carrier Type AllocationCarrier Type Allocation
Customer DirectCustomer Direct Plant to PlantPlant to PlantPrivate FleetPrivate FleetDedicated FleetsDedicated Fleets 3PL Brokers3PL BrokersAsset CarriersAsset Carriers
CORE CHALLENGER CONTENDER
Dedicated Private Fleet
Intermodal
Over the Road Asset
3PL
Supplier Relationship MngSupplier Relationship Mng
Mode OptimizationMode Optimization
Key initiatives complement
one another to create a holistic transportation
strategy
Highly Confidential ndash Not for Distribution
Evolution of CCR Carrier Base
2011Total Carriers 335
3PL Brokers 45
Carriers moving 80 72
2011 20132012
2012Total Carriers 265
3PL Brokers 15
Carriers moving 80 66
2015Total Carriers ~77
3PL Brokers 7
Carriers moving 80 22
2014Total Carriers ~85
3PL Brokers 8
Carriers moving 80 30
2013Total Carriers ~110
3PL Brokers 8
Carriers moving 80 35
2014 2015
2016Total Carriers 60
3PL Brokers 6
Carriers moving 80 18
2015
Highly Confidential ndash Not for Distribution
Great execution leads to long-term partnershipsDaily
ExecutionLong-term Relationships
CAMProgram
Scorecards
Value-Add ScoresFo
reca
st
Performance Communication
Mini-bid
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
Transportation Procurement StrategyOverview
2016
Highly Confidential ndash Not for Distribution 13
Long Term Demand greater than Supply
So why not
increase trucks
Highly Confidential ndash Not for Distribution
Our Transportation Strategy starts with Mode Allocation
14
IntermodalIntermodalCaptive FleetCaptive Fleet Carrier Type AllocationCarrier Type Allocation
Customer DirectCustomer Direct Plant to PlantPlant to PlantPrivate FleetPrivate FleetDedicated FleetsDedicated Fleets 3PL Brokers3PL BrokersAsset CarriersAsset Carriers
CORE CHALLENGER CONTENDER
Dedicated Private Fleet
Intermodal
Over the Road Asset
3PL
Supplier Relationship MngSupplier Relationship Mng
Mode OptimizationMode Optimization
Key initiatives complement
one another to create a holistic transportation
strategy
Highly Confidential ndash Not for Distribution
Evolution of CCR Carrier Base
2011Total Carriers 335
3PL Brokers 45
Carriers moving 80 72
2011 20132012
2012Total Carriers 265
3PL Brokers 15
Carriers moving 80 66
2015Total Carriers ~77
3PL Brokers 7
Carriers moving 80 22
2014Total Carriers ~85
3PL Brokers 8
Carriers moving 80 30
2013Total Carriers ~110
3PL Brokers 8
Carriers moving 80 35
2014 2015
2016Total Carriers 60
3PL Brokers 6
Carriers moving 80 18
2015
Highly Confidential ndash Not for Distribution
Great execution leads to long-term partnershipsDaily
ExecutionLong-term Relationships
CAMProgram
Scorecards
Value-Add ScoresFo
reca
st
Performance Communication
Mini-bid
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
Highly Confidential ndash Not for Distribution 13
Long Term Demand greater than Supply
So why not
increase trucks
Highly Confidential ndash Not for Distribution
Our Transportation Strategy starts with Mode Allocation
14
IntermodalIntermodalCaptive FleetCaptive Fleet Carrier Type AllocationCarrier Type Allocation
Customer DirectCustomer Direct Plant to PlantPlant to PlantPrivate FleetPrivate FleetDedicated FleetsDedicated Fleets 3PL Brokers3PL BrokersAsset CarriersAsset Carriers
CORE CHALLENGER CONTENDER
Dedicated Private Fleet
Intermodal
Over the Road Asset
3PL
Supplier Relationship MngSupplier Relationship Mng
Mode OptimizationMode Optimization
Key initiatives complement
one another to create a holistic transportation
strategy
Highly Confidential ndash Not for Distribution
Evolution of CCR Carrier Base
2011Total Carriers 335
3PL Brokers 45
Carriers moving 80 72
2011 20132012
2012Total Carriers 265
3PL Brokers 15
Carriers moving 80 66
2015Total Carriers ~77
3PL Brokers 7
Carriers moving 80 22
2014Total Carriers ~85
3PL Brokers 8
Carriers moving 80 30
2013Total Carriers ~110
3PL Brokers 8
Carriers moving 80 35
2014 2015
2016Total Carriers 60
3PL Brokers 6
Carriers moving 80 18
2015
Highly Confidential ndash Not for Distribution
Great execution leads to long-term partnershipsDaily
ExecutionLong-term Relationships
CAMProgram
Scorecards
Value-Add ScoresFo
reca
st
Performance Communication
Mini-bid
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
Highly Confidential ndash Not for Distribution
Our Transportation Strategy starts with Mode Allocation
14
IntermodalIntermodalCaptive FleetCaptive Fleet Carrier Type AllocationCarrier Type Allocation
Customer DirectCustomer Direct Plant to PlantPlant to PlantPrivate FleetPrivate FleetDedicated FleetsDedicated Fleets 3PL Brokers3PL BrokersAsset CarriersAsset Carriers
CORE CHALLENGER CONTENDER
Dedicated Private Fleet
Intermodal
Over the Road Asset
3PL
Supplier Relationship MngSupplier Relationship Mng
Mode OptimizationMode Optimization
Key initiatives complement
one another to create a holistic transportation
strategy
Highly Confidential ndash Not for Distribution
Evolution of CCR Carrier Base
2011Total Carriers 335
3PL Brokers 45
Carriers moving 80 72
2011 20132012
2012Total Carriers 265
3PL Brokers 15
Carriers moving 80 66
2015Total Carriers ~77
3PL Brokers 7
Carriers moving 80 22
2014Total Carriers ~85
3PL Brokers 8
Carriers moving 80 30
2013Total Carriers ~110
3PL Brokers 8
Carriers moving 80 35
2014 2015
2016Total Carriers 60
3PL Brokers 6
Carriers moving 80 18
2015
Highly Confidential ndash Not for Distribution
Great execution leads to long-term partnershipsDaily
ExecutionLong-term Relationships
CAMProgram
Scorecards
Value-Add ScoresFo
reca
st
Performance Communication
Mini-bid
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
Highly Confidential ndash Not for Distribution
Evolution of CCR Carrier Base
2011Total Carriers 335
3PL Brokers 45
Carriers moving 80 72
2011 20132012
2012Total Carriers 265
3PL Brokers 15
Carriers moving 80 66
2015Total Carriers ~77
3PL Brokers 7
Carriers moving 80 22
2014Total Carriers ~85
3PL Brokers 8
Carriers moving 80 30
2013Total Carriers ~110
3PL Brokers 8
Carriers moving 80 35
2014 2015
2016Total Carriers 60
3PL Brokers 6
Carriers moving 80 18
2015
Highly Confidential ndash Not for Distribution
Great execution leads to long-term partnershipsDaily
ExecutionLong-term Relationships
CAMProgram
Scorecards
Value-Add ScoresFo
reca
st
Performance Communication
Mini-bid
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
Highly Confidential ndash Not for Distribution
Great execution leads to long-term partnershipsDaily
ExecutionLong-term Relationships
CAMProgram
Scorecards
Value-Add ScoresFo
reca
st
Performance Communication
Mini-bid
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
Measures Schedule Adherence WOS Age of Stock Forecast Accuracy Order FillCase Fill Master Data Dependent Demand Signals
Primary Tender On-Time Delivery
Production0 -7 days
Logistics0 ndash 28 days
Warehouse0 -28 days
Procurement0 ndash 28 days
PlanTransportation
Supply NetworkPlanning
PlanProduction
Inventory Management ndash Inventory Policy
PlanMaterials
Unconstrained Demand
Forecasting
Ship to customer
OrderFulfillment
Process
OrderFulfillment
Process
Operations ExecutionSupply PlanningDemand Planning
Demand Planning
Logistics Planning Interdependencies
Field Planning2004 - Tactical Planning 2009 - Operational Execution
30 - 120 14 - 90 0 - 14 0 - 28
Rolling Time Horizon (Days)
17CCNA - CONFIDENTIAL
ObjectiveLane volume
forecasts tied to customer specific
promotional activity Plan
Warehousing
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
TRANSPORTATION SIPOC D M A I C
Suppliers Inputs Process Outputs Customers
Strategic Customer Promo Vs
procured review
Strategic Customer Promo Vs
procured review
Procure amp monitor
shipments vs plan
Procure amp monitor
shipments vs plan
Measure accuracy of
Evaluator data provide
feedback
Measure accuracy of
Evaluator data provide
feedback
Custom
er Freight
Plan
ning Lane
Forecastin
g
Evaluator Tool Accuracy
Volume by lane measurements
New Volume Projections by lane
Evaluator Tool Management
Transportation Planners
Transportation Procurement
National Retails sales
Contract Carriers
Current Procured Volume
Historical TL Customer
Promotional Volume
Contracted Carriers
LOL Historical Volume
BW Historical Volume
National Retail Sales
Transportation Procurement
Extract Evaluator data
Extract Evaluator data
Evaluator Vs Historical Analysis
Evaluator Vs Historical Analysis
Transportation Planners
Evaluator Tool
Projected TL by Customer Lane
Demand Planning
Logistics SIPOC Customer Freight Planning Lane Forecasting
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
About Us
bull Over 2000 power unitsbull Over 6000 53rsquo trailersbull Satellite equippedbull First class customer service
Dart Transit Company providing quality transportation services since 1934
Our family-owned and operated business is one of the largest dry-van truckload carriers in the United States
Dallas TX Operating CenterEagan MN Operating Center
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
2016 Critical Issues for Transportation
bull Driver recruitingretentionbull Driver and tractor
utilizationbull Driver training costsbull History of class 8 tractor
ordersbull Used tractor valuesbull ELD mandatebull Cost containment
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Truth About Bids
bull Carriers can be replaced during a bid
bull Shippers can be replaced during a bid
bull No one knows if their pricing or awards will be accepted
bull Bids shake up the business in good times and bad times
bull We are all negatively impacted by a sluggish economy
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Bids Are Risky
Costof
Service
Qualityof
Service
Stability
of
Carrier
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
The Greatest Bid Obstacle
TIME
ndashUnrealistic turn around time
ndashMultiple rounds
ndashElapsed time until award
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
800 Lone Oak Road Eagan MN 55121 8003669000 wwwdartnetThe Dart Network of Companies
Carrier Needs
bull Business partners
bull Consistency in freight volumes
bull Fair return on investment
bull Communication
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
26copy Transplace 2015 All Contents confidential
Moderator bull Brent Hudspeth - Vice President Transportation
Management Transplace Past President CSCMP DFW Roundtable
Panelists bull Rob Haddock - Group Director Thermal Logistics Coca-
Cola North Americabull Steven Johnson - Director Transportation Procurement
Coca-Cola North Americabull John Pinyerd - Director Southeast Shorthaul Dart Transit
Our Panelists
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
Back-up
Classified - Internal use--Restricted 27
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
Highly Confidential ndash Not for Distribution
Short Term Available Capacity
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
Highly Confidential ndash Not for Distribution 29
Long Term Pessimism
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
Highly Confidential ndash Not for Distribution 30
Performance Requirements Reminder Primary Tender Acceptance
bull Core ndash 97
bull Challenger amp Contender ndash 95
Surge
bull Core ndash 20
bull Challenger ndash 10
bull Contender ndash 0
On-Time Pick Up amp Delivery to Final Appointment ndash 97
On-Time to Original Appointment ndash 82
System Status Message Reporting ndash 96
Shipment Delay Messages
bull Core ndash 100
bull Challenger amp Contender ndash In process of rolling out
While 82 is a starting point most customers require 95 and carriers will be held to that
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
Regulations More than Demand Will Drive the Next CrunchmdashBut Itrsquos Coming
Source FTR Associates and BBampTCM analysis
Tons of New Regulations
-
20000
40000
60000
80000
100000
120000
140000
160000
180000
Implied Driver Hires Per Quarter Required By Regulation
Electronic Stability controls
Speed limiters
Safe Harbor
OSHA Worker Protection
Minimum Insurance
Entry Proficiency
Training Provisions
Drug amp Alcohol Data Base
Prohibition Of Coercion
1 Safety information and carrier ratings2 Special state regulations on trucking (ex CARB)3 Opening the border to trucking4 Elimination or allowing of illegal aliens5 Various health regs (apnea medical certs etc)6 Require ELDs or electronic logging devices7 Hours of service changes8 Increase broker bond amp require prompt payment to carriers9 More stringent temperature amp cleanliness requirements
10 Encourage union membership and require benefits for ICs11 Examination of fleets for patterns of violations12 Prevent shipper coercion regarding HOS CSA etc13 National drug clearinghouse14 Requiring standard training procedures15 Test new carriers for proficiency16 Increase minimum insurance coverage for carriers17 Tightened OSHA requirements18 Hold shippers amp brokers responsible for hired carriers safety19 Limit max governed speed (64 MPH)20 New vehicle stability controls
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
32copy Transplace 2015 All Contents confidential
Rob Haddockbull Group Director Thermal Logistics Coca-Cola North Americabull CSCMP National Programs Process Team Chairbull 34 year career with the Coca-Cola system
ndash Field experiencebull United Steel Worker hourly associatebull Warehouse managementbull Transportation managementbull Production managementbull Production schedulingbull Customer service management
ndash Corporate Experiencebull Marketing amp Sales Business liaison strategic planningbull Mid amp Short term production distribution amp procurement planningbull SAP SME APO SNP PPDS amp ECCbull SampOPSampOE process managementbull Transportation Management
bull Over 3 decades of supply and operations management experience with The Coca-Cola Company ranging from plant management customer service transportation business Liaison Vendor Managed Inventories Operational Excellence Transportation Management Production amp deployment planning etchellip
bull SME for SAP planning systems and planning organizational designSteven Johnson bull 20 year supply chain career including 13 years with Coca-Colabull Led various functions including Accounting Plant Operations Production Planning Transportation Project Management Customer Service and
Procurementbull ldquoConstantly pursuing the perfect supply chainrdquobull Resident of Atlanta with wife Arden and 3 children
Bios
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
33copy Transplace 2015 All Contents confidential
Brent HudspethTwo kids born in ATL Mr Hudspeth has 25 years of supply chain and transportation industry experience in executive and consulting roles During his seven-year tenure with Transplace Hudspeth has held both Supply Chain Consulting and Transportation Management roles Presently he steers Transplacersquos programs across an array of manufacturing retail and distribution companies which utilize the Transplace TMS managed transportation logistics engineering brokerage and related services Prior to Transplace Mr Hudspeth held executive roles in both logistics services and consulting organizations with a continued focus on achieving greater productivity in transportation and supply chain He has overseen the business development and marketing teams in two entrepreneurial logistics organizations NextJet and Aviation Services Group Additionally he has worked in management and operations consulting capacities within AT Kearney Arthur Andersen and Precision Moreover Hudspeth gained valuable consumer products experience through headquarter level sales and marketing positions at The Coca-Cola Company Hudspeth has contributed articles and been quoted in a numerous publications including the Wall Street Journal the Journal of Commerce and Supply and Demand Chain Executive Brent is a two-time president of the Dallas-Ft Worth CSCMP Roundtable and board member of the Stanford Business School Alumni Association Mr Hudspeth holds a MBA from Stanford University and BA from Washington amp Lee University
John Pinyerdbull John Pinyerd is a graduate of Auburn University where he majored in Transportation and Logistics (War Eagle) bull His career has been fairly equally divided between being on the shipper 3PL and on the carrier sides of the industry and along
the way he achieved the ldquoLifetime Certified Purchasing Managerrdquo achievement from ISM bull At Menlo Logistics he served as Senior Project Director over their national freight bid and directed their largest freight
accounts Electrolux IBM and Homelife He also served as Menlorsquos lead consultant to William Sonoma Prior to joining Dart John was the Senior Strategic Sourcing Manager at Cendian Corporation and was responsible for $250 million in transportation procurement
bull John joined Dart Transit in 2002 as the Southeast Regional Sales Manager In his current role of Director of Southeast Shorthaul John is responsible for directing both the sales and operations for Dart in the southeast At Dart he helped create and grow a Southeast Regional Fleet
Bios
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
34copy Transplace 2015 All Contents confidential
bull How are companies planning transportation Looking historically thinking future will be like the past Or is there someone out there who is inline with future volumes
bull Recent thoughts on Freight Forecastingmdashmore customers talking about itbull What do we see from other companies in the market How do you deal with reality when averages are not the same You bid
lanes and volume from plant x move part or all to another plant Volumes change ndash bid 20 per week and becomes 40 or 5bull Seasonal adjustmentssurges contingency planning tapping additional capacity how does a carrier plan for thatbull Impact of plant openingsshifting production volumes bull Implications of Polar Vortexmdashhow has that made you behave differently relative to freight procurement and planning bull What technology is out there that can tie between ERPDemand Planning applications and TMSExecution systems ERP only
gets you so far
bull What is your bid process How are other companies handling their bid process bull When do you hold your bids Do you keep to a strict schedule or adjust based on internal or external factors bull What timelines do shippers think are reasonable Carriersbull What type of data format do you want to work with in a bid How do you all want to manipulate the data bull Do you want to have a dedicated and IM component in your bids bull How do you measure the successful outcomes of your bid process
bull What is the right number of suppliers you should havemdashtrucking companies How many too few or too much bull How do you consider scorecarding your providers
bull What do you all see as the capacity environment Into 2016 bull What do you see as the impact of latest regulations
Questions
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-
35copy Transplace 2015 All Contents confidential
bull Brent open panelndash Introduce the topic and all the panelistsndash Quick overview of TP just to show scale and relevancendash Provide brief market update (1 to 2 slides) some good info we have on bid results over last 5 years
bull Coke panelists providendash Brief overview of Cokendash Talk about how they coordinate planning and sourcing at Cokendash Intro the challenges faced ndash Any thoughts on current market
bull Dart providendash Brief overview of Dartndash Carriers view on current market all the bidsndash Challengesndash How they see disconnect of what was bid and what they actually see other challenges
bull Brent lead discussion around ndash bids market challenges
Flow
- CSCMP Atlanta Roundtable Planning and Procurement of Transpor
- Agenda
- Our Panelists
- Transplace Technology and Services
- Transplace Footprint
- Transportation Demand and Capacity Trends are Local
- Regulatory Update
- Why Drivers Leave Their Jobs (Pay amp Respect)mdashItrsquos a Shipper Pro
- Truckload Bid Savings Gap Analysis
- Coca-Cola North America amp Coca-Cola Bottling System
- Coca-Cola
- Slide 12
- Long Term Demand greater than Supply
- Our Transportation Strategy starts with Mode Allocation
- Evolution of CCR Carrier Base
- Great execution leads to long-term partnerships
- Logistics Planning Interdependencies
- Transportation SIPOC
- Slide 19
- About Us
- 2016 Critical Issues for Transportation
- The Truth About Bids
- Bids Are Risky
- The Greatest Bid Obstacle
- Carrier Needs
- Our Panelists (2)
- Back-up
- Short Term Available Capacity
- Long Term Pessimism
- Performance Requirements Reminder
- Regulations More than Demand Will Drive the Next CrunchmdashBut
- Bios
- Bios (2)
- Questions
- Flow
-