Managing Private Fleet &3rd Party Carriers usingOTM as a single platform

Agenda• Overview of Penske Corporation• OTM / Fleet Manager• Current / future implementation plans• Hub & Spoke network• 3rd party carriers• Illustration of fleet & 3rd party network

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Penske Organization Corporate Structure

A market-leading providerof full-service leasing,contract maintenance,truck rental, and supply

chain solutions.

An international company,operating retail dealerships

and commercial vehicledistribution.

A third-party private equityfund that invests in the

transportation andtransportation services

industries.

Transportation Automotive Performance Private Equity

• Headquartered in Bloomfield Hills, MI• Over $25 Billion in Revenue• 50,000 Employees• 3,300 Locations Worldwide

Indy Race League

NASCAR

Penske Logistics - Product Overview

Managing “privatefleet” operation forshippers

Managing movementthrough a warehouse

Managing inbound andoutbound materialflow

Managing &optimizing overalllogistics network

Value based supplychain consultingservices

Dedicated Contract Carriage

› Manage professionally trained drivers› Provide equipment, maintenance and road service› Oversee fuel procurement and consumption› Manage safety, insurance and compliance

Core Services› Optimize and design fleet› Determine routing and scheduling› Arrange third-party and supplier backhauls› Maximize trailer capacity

Value Added Services

Employing dedicated transportation resources to efficientlyachieve peak service performance.

DCC

One single platform for managingDedicated Contract Carriage Drivers,Trucks, Routes & Costs and 3rd partyCarriers

What is Fleet Manager?

OTM is the solution for efficient & profitableoperations

• Master Schedule• TIRB• EDI

Static & dynamic routeschedules

Cellcomm AppDriver’s mobile device

Billing & DriverPay Portal

Special services and billingmanagement

OIC – Driver PayDriver Work Invoice anddriver pay Cellcomm Portal

Update actual and shipmentevents

Fleet Manager

OrderManagement

Carrier onboarding, contractand payment management

• POPS• FMA• FPAP• CSR

MasterDataMgmt.BI / AnalyticsMCP PortalReal time Operational

DashboardManage / Monitor integration

messages & exceptionsOperational, Billing and

Analytical Reports

Support and ContentManagement

• HRIS• VeCAP• RentalNet

OMD

TMS and Brokerage integration

Penske’s OTM Ecosystem

CURRENT IMPLEMENTATIONSTATUS

What Have We Done?

2,000+ 2,680+172+

What’s Next?

61

876

1,052

2016 Plan 2017 Plan2016 YTD

39

333

394

Target

59

853

1,220

250+

3,350+

5,000+

Current State of ImplementationKey OTM’s Fleet Related Functionalities

OrderManagement

Buy ShipmentPlanning

FleetAssignment Track & Trace

Driver Pay

Sell Shipmentcreation

CustomerBilling

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• Application of Dispatch Board andrelated functionalities

• Automatic Fleet Asset Assignment– Driver – Self Assignment using CellComm™– Power Unit assignment by Driver– Equipment assignment by Driver

• Dynamic Shipment Building• Polling position• Tandem Equipment Assignment

– Doubles and Triples

• Substitute Equipment Assignment

Implementing Hub & Spoke process flows for Fleet businessLeveraging OTM’s single platform advantage

• Penske’s acquisition of Transfreight required us to enhance our model

• Key functionalities incorporated for Hub & Spoke:– Utilizing an inter-connected cross dock network– Executing shipments across multiple days and shared fleet assets for a single or multiple OD Pairs– Executing an order shared across both private fleet and 3rd party carriers– Centralizing the management of the shipments from hub locations– Incorporating brokerage loads to leverage backhaul opportunities

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Adding 3rd party carrier operations and managementExpanding OTM Fleet’s implementation framework

• Penske’s DCC business model utilizes private fleet assets and 3rd party carriers• The framework was provisioned to consider the future requirements of the 3rd party carriers• The introduction of carriers onto our fleet framework required additional complexity and expansion

of OTM’s functionalities• The updated framework ensures a separation of workflows between private fleet and 3rd party

carriers• The co-existence of two distinct paths are vital• Our automated QA processes ensure the successful co-existence of these diversified operations

in one domain

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Key functionalities implemented for 3rd party carrier management

• Automatic carrier selection• TL & LTL modes• Tender management and spot rates for expedited loads• Intra-company tenders• Transfer of shipments between Penske & 3rd party carriers• Co-execution of a shipment by fleet and 3rd party carriers• Track & Trace Penske’s trailers used by 3rd party carriers• Freight settlement• Fuel surcharge and ETA / Delivery Confirmation Notifications

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Pickup A Hub ADriver 1picks theshipmentand dropsat Hub

Driver 1 picks empty racksand delivers back at Pickup Aand returns to DCCDCC

Driver 2 delivers theBackhaul order andreturns home

1

3rd party carrier was tenderedto haul between Hubs

Hub B

2

Driver 2 picks up theOrder and delivers tofinal destination

Driver 2 was informed of abackhaul shipment

Delivery A DCC

3

Driver 2 picks upthe backhaul

order Pickup B

Delivery B

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Centralized OperationalGroup monitors the end toend movement of theshipments and assets

Illustration of co-existing fleet and 3rd party shipment execution

Penske’s domain structure

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• Master Data• Locations• Carriers• Fleet Assets (Driver, Trailer, Power Units)

ParentDomainParent

Domain

Child DomainChild Domain

• Transactional Data:• Order Release• Order Movements• Buy Shipments• Carrier Payment Invoice• Driver Work Invoice• Sell Shipments

172+ DCC customers 70+ Carriers

• Configuration Items:• Business Automation Agents

Roadmap - OTM’s 6.4.x functionalities to leverage

• Migration to 6.4.x• Leverage Work Bench and Map

related functionalities• Fleet Aware planning• Bulk planning with carrier capacity

and commitment constraints• Usage of bulk planning to determine

carrier selection

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Q&A

Michael Sharp, IT Manager, Penske Logisticsmichael.sharp@penske.comMobile: +1.330.212.4684

Chirag Patel, Director Product Developmentchirag.patel@penske.comMobile: +1.216.288.6040

Sanju Sethumadhavan, Manager Advisorysanju.sethumadhavan@penske.comMobile: +1.920.819.2117