Electronic Billing and Payment Trends in the U.S.

and Abroad

Electronic Billing and Payment Trends in the U.S.

and Abroad

International Association of Movers Conference

October 9, 2013

Jeff Lineberger

Asst Vice President

Government Solutions

International Association of Movers Conference

October 9, 2013

Jeff Lineberger

Asst Vice President

Government Solutions

Economic IndicatorsGlobal and DomesticEconomic IndicatorsGlobal and Domestic

Changing trade patterns: Q1 ‘13 TEU growth

Import growth rate

Source: Seabury Global Trade Database

-5%

0%

5%

10%

15%

20%

-15% -10% -5% 0% 5% 10% 15% 20% 25%

West Africa

Australasia

ChinaJapan

Caribbean

Central America

South America

GulfLevant

South Asia

S. KoreaTaiwan

SE AsiaEastern Europe

Russia

Western Europe

South Africa

North Africa

East Africa

Export

growth rate

USA

Poor exports driven by reduction in wood

exports to China

<< Average: 3.3%

Average: 3.3%<<

Emerging Markets Helped Global Recovery

4

• Emerging markets have helped the global economic recovery

• China and India are unlikely to sustain their support since:

o 30% to 50% of their GDP is investment spending, global average is 20%

o China’s growth is still largely dependent on exports but this is changing

• Developed economies need to step up

-8%

-4%

0%

4%

8%

12%

16%

1999

2001

2003

2005

2007

2009

2011

2013

World US Japan Euro area

-8%

-4%

0%

4%

8%

12%

16%

1999

2001

2003

2005

2007

2009

2011

2013

World China India Brazil

Source: Moffatt Nichol

Real GDP

1-quarter % change, annualized

Aug 29 release, Q2 = 2.5

3-year average

4

2

0

-2

-4

-6

-8

-10

2007 2008 2009 2010 2011 2012 2013

Source: Bureau of Economic Analysis http://www.dallasfed.org

Retail Outlook

7

1.30

1.35

1.40

1.45

1.50

1.55

1.60

1.65

1.70

1.75

250

300

350

400

450

500

550

May

-93

May

-94

May

-95

May

-96

May

-97

May

-98

May

-99

May

-00

May

-01

May

-02

May

-03

May

-04

May

-05

May

-06

May

-07

May

-08

May

-09

May

-10

May

-11

May

-12

May

-13

I/S

Rat

io

Ret

ail I

nven

torie

s ($

bn)

Retail Inventories Inventory/Sales Ratio

May '13 I/S Ratio: 1.41

Source: U.S. Census Bureau, Stifel

Domestic Fuel Prices Stable

8

-60%

-40%

-20%

0%

20%

40%

60%

80%

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

08/1

2/02

12/2

3/02

05/0

5/03

09/1

5/03

01/2

6/04

06/0

7/04

10/1

8/04

02/2

8/05

07/1

1/0

511

/21/

0504

/03/

0608

/14/

0612

/25/

0605

/07/

0709

/17/

0701

/28/

0806

/09/

0810

/20/

0803

/02/

0907

/13/

0911

/23/

0904

/05/

1008

/16/

1012

/27/

1005

/09/

1109

/19/

1101

/30/

1206

/11

/12

10/2

2/12

03/0

4/13

07/1

5/13

Y/Y

% C

han

ge

U.S

. Nat

ion

al O

n-H

igh

way

Die

sel

Pri

ce (

$ U

.S.) U.S. National On-Highway Diesel Prices Y/Y % Change

Source: Energy Information Administration, Stifel

Payment Data Sources

Source: American Shipper 2013 Transportation Payment Benchmark Study

USBank Payment Solutions

Updates for our IAMS / HHGs Carrier Community

USBank Payment Solutions

Updates for our IAMS / HHGs Carrier Community

2013 US Bank Freight Payment Key Initiatives

Enhanced User ExperienceWebsite re-designDriven by user feedbackUsability design expert in placeUsability enhancements driving increased efficiencyInitial enhancements to be rolled out in 2013Increased Marketing Portals for our Carrier CommunityWatch for additional feedback surveys

13

Non Temporary Storage Update

DOD Complete To Date: 62 DOD sites processing NTS Invoices

electronically Overall TSP community happy with process,

expedited payment Training on both DOD and TSP was a challenge

and many lessons learned for future initiatives Big Project, lessons learned can be applied to

future (DPM) efforts Thanks for all for involvement to fruition

14

Direct Procurement Method (DPM) Update

Involves electronic payment of HHGs, Unaccompanied baggage, using Federal Acquisition (FAR) Regulations

USBank and DOD “White Board” Session Process Complete

Awaiting “Green Light” to begin from DOD Target Early 2014 to start Lessons learned from Non-Temp Storage will improve

implementation• Training for Buyer and Sellers• TSP enrollment

We need your support /voice to DOD!

15

Business IntelligenceReports

15 Standard Report available to Carriers• No additional cost• Easy to run, real time, across the board Metrics

Reports can measure • Invoice Statues• Shipment Life Cycle Statistics• Service Charges• Rate Variances

On-Line Training and Quick Reference Guides Replacement for Webfocus

16

Business Intelligence Reports available for our Carrier clients

Sequestration Forecasts Outlook Forecast coming years unknown

• DOD Policy changes, Sequestration, O+M Budget cuts, across the board cuts (Travel, HHGS, Freight) all will reduce Transportation spend

• Budget Approval, debt Ceilings, politics Best forecasts DOD HHGs Outlook:

• Flat to Down over next few years

What future holds……..• More cuts, impact on PCS/HHGs shipments

• Troop reductions

• Congressional Politics will continue

• Carrier perspective: Less traffic, more competition, better rates for Buyer…

Your thoughts about Gov Forecasts for FY14?????.

Total HHGs Invoices Paid Total NTS Invoices Paid

NTS Totals Invoices Paid Avg Per Month2012 152,338 12,695

2013 To Date 279,451 31,050

HHG Totals Invoices Paid Avg Per Month2012 771,147 64,262

2013 To Date 580,642 64,516

HHGs/NTS Invoices TotalsHHGs Shipments TOTALS--Includes HHGs and NTS Shipments

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecTotal 2012

2012 66,555 60,475 60,192 57,504 61,992 62,917 92,041 105,598 77,891 122,120 92,718 63,482 923,485

2013 126,056 76,463 68,785 114,842 79,985 70,590 127,659 97,106 98,607

Delta 59,501 15,988 8,593 57,338 17,993 7,673 35,618 (8,492) 20,716

Total W/O NTSJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals

2012 66,555 60,475 60,183 52,986 57,745 58,494 72,896 79,057 68,746 82,118 63,438 48,454 771,147

2013 71,391 57,241 56,599 55,017 58,376 58,883 65,067 73,169 84,899

Delta 4,836 (3,234) (3,584) 2,031 631 389 (7,829) (5,888) 16,153

Total Carriers Paid*2012 1098 1066 1096 1107 1173 1275 1358 1473 1464 1589 1612 1554

2013 1735 1594 1552 1731 1640 1572 1748 1681 1558

Delta 637 528 456 624 467 297 390 208 94

NTS Shipment Totals2012 0 0 9 4518 4247 4423 19145 26541 9145 40002 29280 15028 152,338

2013 54665 19222 12186 59825 21609 11707 62592 23937 13708

USBank Payment Solutions

Other Product Update for our Carrier Industry

USBank Payment Solutions

Other Product Update for our Carrier Industry

Uniting the Global Payment Process

European Union Facts• 27 countries• 27 tax regimes• 23 languages• 11 currencies; Euro

used in 17 countries

22

Global Capabilities Visibility and consolidated reporting of global spend Collaborative online work environment Managed services Shippers extend DPO with trade finance and carriers reduce

DSO Automated audit and G/L coding function Localization

• VAT processing and support

• E-invoicing capabilities that meet the unique requirements of each country

• Consolidated invoices

• Compliance with European regulations

• Multilingual platform

• Customer support in 21 languages

23

Global Advantages More complete, more timely supply chain intelligence

• Optimize global supply chain spend while reducing costs

• Enhanced ability to more quickly take advantage of strategic opportunities

• Gain awareness of developing trends for proactive planning

• Interpretive data for use in managing cost , spend and carrier relationships

Better understanding of global spend allows you to:• Compare mode / 3PL and carrier rates

• Identify best practices and replicate them

• Measure the impact of global initiatives

• Contribute to the global organization’s bottom line

Improved staff efficiency• Reduces manual, hands-on processes for European staff

• Promotes staff efficiencies, creating capacity for more value added activities

Reduced costs from the addition of automated auditing • Pay invoices accurately the first time – become a low cost shipper for your carriers

Better planning of payment timing when manual processes are automated

24

A Market Leader in Payments

25

26

U.S. Bank Over The Road Card The only class 7-8 fuel and maintenance payment solution backed

by the strength and stability of a leading bank Manage and grow your business with unmatched control,

convenience and flexibility• Control

– Comprehensive reporting

– Enhanced Data Capture

• Convenience

– 24/7 card program support for dispatch and drivers

– Integration with popular dispatch systems

• Flexibility

– Set purchase, fraud and driver monitoring parameters

• Acceptance

– Purchase fuel and maintenance at thousands of truck stops nationwide

U.S. BankAcquisition U.S. Xpress OTR2012

TranscardDesignU.S. Xpress OTR1993

U.S. Bank Over The Road Card

U.S. Bank’s Commitment to Fleet Solutions

27

U.S. BankAviation Card

U.S. BankAcquisition MSA Aviation2005

Multi Service CorporationDesign & Launch MSA Aviation1980

U.S. BankOne Card with fleetU.S. BankOne Card with fleet Launch2010

U.S. BankAcquisition of Voyager1999

The AssociatesAcquisition of Voyager1997

Voyager, Inc.Incorporated from TexacoUniversal Fleet Card1995

TexacoProprietaryFleet Card Programs1960-1990

U.S. Bank Fleet Card

U.S. Bank Over The Road Card Solutions The only heavy-duty truck cards

backed by a major bank1. Over The Road Card

2. Over The Road Plus

Both card provide fleetmanagers and drivers with unmatched: Control Convenience Reliability

28

Solutions Overview

29

Benefits ofU.S. Bank

Over The Road Card Solutions

30

Control Flexible controls allow you to tailor-fit them to

your policies Comprehensive reporting provides visibility

to a wide range of program data Detailed data capture for every transaction Immediate transaction access via your

dispatch system or online portal Payment networks supports data and control

requirements

31

Pump prompts to match needs A mix of required and optional pump prompts

require drivers to enter your data elements prior to receiving authorizations to purchase

Fleets can select the optional prompts that best meet their data validation needs

32

Required Prompts1.Hub/Odometer Reading2.Vehicle/Unit ID

Optional Prompts1.Trip number2.Driver ID3.Driver License4.Trailer ID5.Reefer Hours

USBank Loves our Carriers! U.S. Bank was a sponsor of the Truckload Carriers Association's

(TCA) Health and Wellness Fairs held this week in observance of National Truck Driver Appreciation Week (NTDAW). Several state trucking associations partnered with participating Petro and TravelCenters of America (TA) locations nationwide to host driver events, which included a special focus on health and wellness.

Some locations had walks and exercise sessions for the drivers, while the Minnesota location offered free blood pressure and glucose testing. All the drivers appreciated the recognition and thanked the Bank for supporting them.

Where are WE Going Next? Wherever it is, WE need to go together More than ever, we are in the “information business” as

much as the transportation business.

Thank You!

Jeff Lineberger

Jeff.Lineberger@usbank.com