Fleet Management

Initiative Project Overview

August 13, 2012

Copyright © 2012 All rights Reserved. Page 2

Agenda

Overview of Penske Logistics Operations

Solution for Order Management

Team

Tom Foerster – CSC Project Manager

Rick Bowman – Penske Logistics Operations Lead

Chirag Patel – Penske Logistics IT Lead

John Parillo – Penske Logistics Change Management Lead

Tom Smiley – Penske Logistics Operations SME

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Penske is a strong, stable logistics provider based in the U.S., that operates globally…

Penske Transportation is a partnership between Penske Corporation & General Electric, and consists of both Penske Logistics and Penske Truck Leasing.

Penske Logistics provides comprehensive transportation, distribution, and related material support and border crossing services for complex, multinational companies.

Based in the U.S., Penske operates globally in Mexico, Canada, Europe, South America and Asia; Penske is a Customs-Trade Partnership Against Terrorism (C-TPAT) service provider.

Committed ownership…

Proven experience...

Regional presence...

$5.3B 2009 Revenue

$25B Penske Corp 2009 Revenue

Regional Head Offices

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Penske provides service elements in all areas of supply chain including as a Lead Logistics Provider…

Transforming Everyday Business We bring our pursuit of excellence to every task, finding new and better ways to coordinate all aspects of supply chain service. As a Lead Logistics Provider Penske can:

> Optimize Transportation Operations

> Coordinate All Suppliers

> Integrate Supply Chain Technologies

> Synchronize Inbound & Outbound Flows

> Model and Manage Distribution Networks

The combination of services enables Penske to capitalize on all synergistic opportunities, providing the best value to our customers.

Lead Logistics Provider

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Penske chose Oracle OTM to improve the efficiency of our Transportation business…

Transforming Everyday Business We bring our pursuit of excellence to every task, finding new and better ways to coordinate all aspects of supply chain service. As a Lead Logistics Provider Penske can:

> Optimize Transportation Operations

> Coordinate All Suppliers

> Integrate Supply Chain Technologies

> Synchronize Inbound & Outbound Flows

> Model and Manage Distribution Networks

The combination of services enables Penske to capitalize on all synergistic opportunities, providing the best value to our customers.

Lead Logistics Provider

Copyright © 2011 Penske. All rights Reserved. Page 6

DCC Fleet Management Scope Generally, Penske Dedicated operations are diverse & decentralized

Executable route plans created.

Resources & routes assigned

& initiated appropriately.

Resource & route information

automated & timely.

Associates paid & customers

billed accurately & timely.

Route Planning & Scheduling

Fleet Management & Dispatching

Onboard Communication

Financial Management

4,100 static routes

4,100 dynamic routes

1-30 (avg. 4) stops / route

Many route types (i.e., single leg,

multi-leg, crossdock, backhaul,

continuous move).

135 operating locations (+15

remote)

2,500 power units

2,900 drivers

350 non-driver associates

2,500 Cellcomm units (total)

90 barcode scanners

480 signature capture

< 2,900 activity based drivers

135+ customer invoices / week

20-30 centralized billing associates

Timely information availability.

Performance Management

20,000 reports (40% printed).

250-500 business object reports.

Orders ready for processing.

Customer & Order Management

50 customers (22 order based)

17,000 orders / day

1-25 (avg. 4) lines / order

95% EDI orders

20% order changes

Copyright © 2011 Penske. All rights Reserved. Page 7

DCC Processes Opportunity to standardize processes & create synergies as appropriate

Executable route plans created.

Resources & routes assigned

& initiated appropriately.

Resource & route information

automated & timely.

Associates paid & customers

billed accurately & timely.

Route Planning & Scheduling

Fleet Management & Dispatching

Onboard Communication

Financial Management

Load configuration &

building

Static routing

Dynamic routing

Resource & appointment scheduling

Resource visibility

Resource validation & assignment

Driver management

Exception management

Tracking, visibility & information

Vehicles

Drivers

Routes, loads & shipments

Payroll

Billing

Accounting

Timely information availability.

Performance Management

Real-time data, queries & reports

Drill-down metrics

Performance dashboards

Orders ready for processing &

customers well informed.

Customer & Order Management

Order receipt

Order validation

Order changes

Order & shipment information

Account information

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How did we eat the apple?

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Flexibility is a key differentiator for Penske Logistics

Penske large and diverse customer base requires supporting various order management related options.

•Receive/create order options:

• EDI from customer or LLP

• Manual (spreadsheet)

• None (regularly scheduled route)

•Plan (route) order options:

• Routed by Penske

• Content of orders (weight, volume, pallet count, etc.) may not be known until pickup

• Routed by customer

•Flexible execution:

• Re-sequence, add, and delete stops

• Relay shipments

• Planned and un-planned backhauls

•Minimal impact on existing customers.

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Specific order and planning examples

•No order from Customer/Simple Fixed Route

•Spreadsheet with Customer’s Orders/Planning by Penske

•Manual Orders/Planning by Customer

•EDI Orders/Planning by Penske or Customer

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No Order from customer/simple fixed route

•Overview:

• Same route is run 5 days a week.

• No orders from customer

•Solution: Order templates with order schedule

• Will evaluate agents in lieu of order schedule

• Benefits & Limitations:

• Straightforward, works well for just a few orders

• Impractical for creating large sets of orders for an interval of time.

•Alternate Solution: Adapt Penske’s Master Schedule Program

• Easy to create and maintain a set of rules for creating orders:

• Origin and destination, pickup and delivery days and times

• Effective time period for rule set

• Benefits:

• Ease of configuration and maintenance

• Able to create the complete set of orders for a time interval at once.

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Spreadsheet with customer’s orders/planning by Penske

•Overview

• Customer provides a spreadsheet with all (typically 10-15) the orders.

• Penske dispatcher bulk plans the set of orders

•Solution

• Tool to convert the customer’s order spreadsheet into an XML file and to automatically push this XML file into OTM.

• Benefit:

• Avoid effort and reduce risk of error during manual order entry.

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Manual orders and planning by customer

•Overview

• Customer specifies route, which may be multi-stop (2 deliveries or less)

•Solution

• Upload orders using the tool described earlier and, if necessary, re-plan them.

• Rejected using multi-stop orders because of execution related limitations

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EDI Orders

•Overview:

• Receive customer’s orders via EDI.

• Orders may or may not routed.

•Planned Solution:

• For routed orders, the interface will convert the incoming orders into a SAWs with order releases

• For other orders, the interface will create OTM orders which are then planned into shipments

Copyright © 2012. All rights Reserved. Page 15

High-Level conceptual workflow

EDI

Route/Order

Manual

Route/Order

No Order

Fixed Route

EDI Portal

XML Conversion

Tool

Order

Release PlanningPlanned Shipment

SAW with

Order Releases

Order Release

Template

Route? Yes

No Fleet Management

Order Type OTM

“Master Schedule”

Same starting point for Fleet Management in all cases.