etary & Confidential
MULTI-SHIPPER
CAPACITY SHARING
From the people at
Sarah Edge
Director Implementation & Support Services
Shippers Commonwealth LLC
Duane Charbonneau
Corporate Manager Motor Freight Transportation
North American Salt Company Caravan Network LLC
Proprietary and Confidential
About Shippers Commonwealth
q
Formed 1996
q
Logistics Leaders in Automated TMS Programs
�
CEO & CTO founders Sure Shipping, McHugh (RedPrairie)TMS
�
Execs JRC (GP), Stage Stores, Mead, Reynolds (Alcoa) Load Centers
�
Over 70 Major TMS & Load Control Center Programs
q
Exclusive TMS Program for Red Prairie (McHugh)
q
Optional Freight Audit/Payment & Services Programs
q
Go To Partner in TMS for Leading Firms
�
Eveready, Sonoco, Safelite, Stage Stores, Peebles, General Cable,
Johns Manville, Metro Canada Logistics, Alcoa, Overnite Logistics,
Four Seasons, North American Salt, many others
q
Leaders - Multi-Shipper Collaboration
q
Inbound Vendor Logistics Portal E Commerce Activation Caravan Network LLC
Proprietary and Confidential
TMSOptimal Shipment Planning
with Dynamic Execution
q
Complete Transportation Dept. Operating System
�
Enabling Centralized Corporate Logistics Multi Modal
q
Optimal Mode, Route, & Plan Shipment Plan
�
Load Building & Consolidation: Inbound & Outbound
�
Dynamic Pool Distribution
�
Optimal Carrier Assign & Continuous/Ded. Moves
q
Web-Enabled Multi-party Coordination
q
Dynamic Execution Shipment Management
�
Tendering, Dispatch, Status & Event Management
�
Customer Service & Customer Portal
�
Freight Payment Add-On Solution Options incl.ERS/Self Pay
�
Extended Reporting Suite
�
Scorecarding and Inbounds Sample Customers... Caravan Network LLC
Proprietary and Confidential
LOAD LINKING & MATCHING
�
MULTI-SHIPPER CLUSTERING Programs
q
Capacity Sharing
q
Connected Capacity
q
Continuous Moves
q
Dedicated & Private Fleet
q
Group Tariff Alternative
q
Future Multi-Shipper Pool & Multi-Stop

0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
1-Jan15-Jan29-Jan12-Feb26-Feb12-Mar26-Mar 9-Apr23-Apr7-May21-May4-Jun18-Jun 2-Jul16-Jul30-Jul13-Aug27-Aug10-Sep24-Sep 8-Oct22-Oct 5-Nov19-Nov3-Dec17-Dec31-Dec
97-99 Average
2000
2001
2002
2003
2004
DEMAND > SUPPLY & WORSENING..
Morgan Stanley TL Freight Index
Demand (Number of Shipments) vs. Number of Trucks on Road
SHIPPERS COMING TO US IN PAIN & SEEKING HELP Caravan Network LLC
Proprietary and Confidential
Heritage to Todays Demands
q
1992 1995 First Multi-Shipper Network
�
ShipComm Principals (R. Shagawat) Sure Shipping Cluster Group
�
Reynolds (Alcoa), MeadWestvaco, Miller Brewing, Owens Corning
�
Showed 45% Load Link Potential
�
Semi-Automated, Pre Internet, Pre Market Demand
�
FSA 1994 R. Shagawat/Campbell Soup (FutureVision)
q
1996 2000 Ongoing R&D & Trial Groups
�
FSA 2000 R.Shagawat/Miller Brewing/Reynolds Metals
(Need/Case Studies Collaboration
)
q
2000 2004 Other Follower Attempts -
None Successful Caravan Network LLC
Proprietary and Confidential
Heritage to Todays Demands
q
1992 1995 First Multi-Shipper Network
�
ShipComm Principals (R. Shagawat) Sure Shipping Cluster Group
�
Reynolds (Alcoa), MeadWestvaco, Miller Brewing, Owens Corning
�
Showed 45% Load Link Potential
�
Semi-Automated, Pre Internet, Pre Market Demand
�
FSA 1994 R. Shagawat/Campbell Soup (FutureVision)
q
1996 2000 Ongoing R&D & Trial Groups
�
FSA 2000 R.Shagawat/Miller Brewing/Reynolds Metals
(Need/Case Studies Collaboration
)
q
2000 2004 Other Follower Attempts -
None Successful
q
2004 2005 Capacity Shortage Continues/Worsens
q
Market Now Ready for Comprehensive Solution Caravan Network LLC
Proprietary and Confidential
Heritage to Todays Demands
Market Now Ready for Comprehensive Solution
q
Low Cost
�
Pay For Capacity & Load Links Attained
q
Open Web-Based Network
�
integrates to any TMS or
�
serves as TMS for those without one
�
most advanced optimization with execution
q
Group Rate Alternatives
q
No Brokerage
�
Keep Relationship with Carriers
�
Avoid Markups
q
Rapid Deployment
q
Critical Mass Caravan Network LLC
Proprietary and Confidential
INITIAL SHIPPER LAUNCH GROUP
CARAVAN PILOT PROGRAM
q
OVER 560K TLs per year
q
Over 350 Ship Sites US/Canada The Product and The Solution
q
CURRENT: EXTENDED TMS Inbound/Outbound
q
PROPOSED: CARAVAN Network
�
Multi-Shipper Load Sharing/Linking Networks
�
Shipper Communities
�
Hub Clients
�
Mid Market Clusters
�
Proprietary Optimization & Execution
�
Automated Settlement & Group Tariff
�
Ease of Integration
�
Open System regardless of TMS environment
�
Compelling Unsatisfied Demand
AUTOMATED LOAD CONTROL CENTER
AUTOMATED LOAD CONTROL CENTER
TMS SUITE
TMS SUITE JM
Caravan
Database and
Optimization Engine
Planned
Load Import
Carrier Status
Import
Equipment Capacity Search
Spot Bids
204 Tender
Requests
Caravan
IO Interface
System
990 Tender
Responses
Rating
Caravan
Web App
Historical
Reporting

CARAVAN
CARAVAN
Multiple Leg Tours
Backhaul Opportunities
HIGH LEVEL
FLOW CHART
Pilot thru Phase 1
Import/Tender Avail.Loads to Cluster
Import Load Actuals with Statuses
Optional Phase 1
Contract Rate TL Import
Cluster Rate DB
Load Export to TMS
Tendering within Portal
Auto-Alerts:
�
Auto Queries/Matches
�
Status Changes
Managed Services Live Assist
Phase 2
�
Adv. Optimization & Allocation
�
Adv. Reporting & Settlement Dispatch - Center Help Escalation
Live
Help
encourages
Web calls
OK
Knowledge
Base
Call back help
VOIP
Fax back
e-mail:
Auto and
Manual
Shipper, Carrier,
Consignee
Agents handle
multiple callers
Resolve Issues
Outside of
Software
Automatic
and
Self Help
Live Help
Text
Conferencing
Common
questions &
agent
answered
questions
Push:
URL, graphics, text
Confirming Email Transcript
Shipment
Database
Web Interactive
INTERACTIVE LOGISTICS RESPONSE CENTER
INTERACTIVE LOGISTICS RESPONSE CENTER
VIRTUAL HELP:
For Delivering
3
rd
Party Load Control
& Cluster Mgmt Services
VIRTUAL HELP:
For Delivering
3
rd
Party Load Control
& Cluster Mgmt Services
XML
XML
XML
Shipment/Request
Tracking #
Shipment/Request
Tracking #
LIVE ASSIST
LIVE ASSIST Caravan Network LLC
Proprietary and Confidential
KEY BENEFITS
q
SHIPPER BENEFITS
�
LOWER COSTS
�
Caravan Tariff vs. Contract Rate Choices
�
Continuous Move Reload Discounts
�
Shared Dedicated Move Program Savings
�
Sell Backhauls -Existing Ded. & Private Fleets
�
Eliminate Brokerage Premiums
�
Reduce Spot Rate Carrier Premiums
�
LOCK IN BEST CAPACITY
�
More Low $ Capacity to Cover Freight
�
BETTER SERVICE
�
NEW UNFORESEEN OPPORTUNITIES
�
BETTER KNOWLEDGE OF COST/SERVICE Caravan Network LLC
Proprietary and Confidential
TRADE PARTNER BENEFITS
q
CARRIER BENEFITS
�
EMPTY MILEAGE (Deadhead) REDUCTION
�
TRAFFIC PREDICTABILITY & CONSISTENCY
�
IMPROVED DRIVER RETENTION
�
Increase Driver Home Potential & Relays
�
Plan Ahead on Known Backhauls with Headhauls
�
FLOW BALANCE
�
EQUIPMENT UTILIZATION Tractor & Trailer
Open to all carriers no fee
Werner, CRST, Smithway, etc in launch group KEY DIFFERENTIATORS
q
STRENGTHS
�
CRITICAL MASS IN LAUNCH GROUP
�
Ability to Set New Standards
�
Significant Volume Creates Density, Leads Way
�
Caravan Group Tariff Potential
�
NO REAL LEGAL/REGULATORY OBSTACLES
�
EXPERIENCED GROUP & SYSTEM PROVIDER
�
TMS CAPABLE GROUP
�
OPEN & INTEGRATED SOLUTION
�
COMPATIBILE EQUIP & CARGO
(NON-COMPETING)
�
MEASURABLE BENEFITS
�
DED/PRIVATE ASSETS FOR PILOT
�
Maximize Control for Proving Concept STRATEGIC HORIZON
q
OPPORTUNITIES
�
CAPACITY IMPROVEMENT
�
COST SAVINGS
�
SERVICE IMPROVEMENT
�
TRADING WITH OTHER CARAVAN CLUSTERS
�
Cluster to Cluster Trading
�
Membership in Multiple Caravan Clusters
�
MULTI-SHIPPER CM & SHARED DEDICATED
�
MULT-SHIPPER LOAD SHARING
�
Multi-Shipper Pool Distribution & TL Consolidation
�
GROUP RATE FOR MOTOR FREIGHT (TL)
�
In Addition to Shipper Contract Rates Caravan Network LLC
Proprietary and Confidential
Load Matching & Sharing
Clustering Earnings Impacts
5-15% Increase
12%
10%
5%
Reduce Logistics
Reduce Logistics
Costs
Costs
Improve On Time
Improve On Time
Performance
Performance
Improve Cycle Time
Improve Cycle Time
for Load Coverage
for Load Coverage
Reduce Admin Costs
Reduce Admin Costs
Average Fortune 1000 Manufacturing Company, Killen & Associates; Cluster Study Caravan Analysis
q
Earnings Impact
CM
DM
Reduce
Brokers
q Caravan Network LLC
Proprietary and Confidential
Caravan Network LLC
Proprietary & Confidential
MULTI-SHIPPER
CAPACITY SHARING
Duane Charbonneau
Corporate Manager Motor Freight Transportation
North American Salt Company Caravan Network LLC
Proprietary and Confidential
NORTH AMERICAN SALT
q
Primary Subsidiary of COMPASS MINERALS
q
IPO Last Year - NYSE: CMP
�
Sales $695M 2004 Up 16% (Y/E 2004)
�
Net Income $49.8M Up 27% (Y/E 2004)
�
HQ: Overland Park KS
q
Over 72,000 TLs annually plus rail
q
>40 Ship Sites US/Canada + UK
q
Salt for Food Ingredient, Road, & Softener Trade
q
Worlds Largest Salt Mine Goderich ON
q
Transportation is Large