If you are using your TMS to make Transportation Procurement decisions – you don’t want to miss this presentation! Transportation procurement is a complex sourcing activity, requiring careful evaluation of thousands of options presented by potentially hundreds of carriers across your shipping lanes, while considering the internal requirements and preferences of your stakeholders, to generate the right balance of cost and service across your supply chain. Transportation Management Systems help keep freight moving efficiently and effectively, from tendering loads with approved carriers to scheduling pick-ups and deliveries, and managing the payment of carrier invoices. A good TMS is a logistics team’s operational right hand. But a TMS can only function to the highest degree if the plan it’s working from provides the best carrier options for all of your shipments. In this presentation, we’ll review the fundamental differences between a TMS application and an Advanced E-Sourcing Solution. The presenters will discuss and demonstrate how advanced e-sourcing solutions can create the ideal roadmap for more effective transportation management within a TMS, including: ** Increasing Carrier Competition and Price Compression -- through next-generation e-sourcing capabilities, including Expressive Feedback ** Securing Capacity -- Ensure appropriate capacity for shipments by leveraging carrier assets and network flow, even with wide seasonal variations in traffic volume ** Reducing Risk – Utilize risk and service level indicators such as DOT safety scores, on-time ratings, and transit times to reduce supply chain disruptions ** Gaining Total Cost Insights -- Considering carrier capabilities, strengths, and even assessorials and fuel surcharges to identify each carriers’ total cost and value to your business ** Optimizing Carrier Selection -- Utilizing optimization-based bid analysis and advanced negotiations to identify the right carriers for each lane for optimal execution ** Using Expressive Bidding -- to encourage creative carrier proposals that drive efficiency, innovation and of course, deeper cost reductions ** Leveraging a Single Solution -- to conduct sourcing events for all modes of transportation, from Truckload/Intermodal, to Ocean and Air freight Real-world case studies will highlight these and other issues to consider when evaluating the difference between using an advanced e-sourcing solution for transportation procurement vs. the sourcing module within an existing TMS solution or other e-sourcing products.

1. Copyright © 2012. CombineNet, Inc.

2. Speakers and Agenda
Greg Holt
Director of Product Marketing
Topic Introduction and Case Studies
Rob Achtzehn
Director of Account Development
A Look at Transportation Sourcing Best Practices
and How Advanced Sourcing Solutions Can
Complement your TMS
Copyright © 2012. CombineNet, Inc.

3. CombineNet Company Overview
The Company The Technology Customer Value
Established in 2000. Best of Breed Solutions that Capture >2X spend under E-
improve Strategic Sourcing Sourcing management
Global: Offices in
Pittsburgh, PA; London, UK; Software-as-a-Service (SaaS) Address complex spends
Hamburg, Germany. delivery model for ease of with advanced functionality
Partners for Latin America, adoption and scale
Middle East, APAC Fast implementation and
Easy integration into your broad adoption for any type
Customers: Global 2000 environment to complement of user
spanning CPG, Food & Bev, existing applications
Retail, Manufacturing, Nearly 100% see full payback
Transportation, and more after 1st sourcing event
Copyright © 2012. CombineNet, Inc.

4. We Do this for Companies Just Like Yours
A Wide Variety of Customers across All Industries
Copyright © 2012. CombineNet, Inc.

5. Best of Breed E-Sourcing Solutions
Bid Award
CombineNet
Create CombineNet
Expressive Bidding® Scenario
Spend RFxpress for Contract
Expressive Feedback Analysis
Analysis E-RFX or Management
Event Management & Bid
E-Auction
Optimization
CombineNet ASAP
Supporting End-to-End E-Sourcing for All Spend Categories
with Advanced Technology Solutions
Copyright © 2012. CombineNet, Inc.

6. Increasing Spend Under Management
Large European Conglomerate $ Billion in Spend Managed
Annually
8
>1,000 e-sourcing events conducted 7
annually 6
E-Sourcing Suite user since 2007 5
Adopted CombineNet in Jan. 2011 4
More than 2X Increase in Corporate 3
Spend Managed between years 1 and 2 2
1
0
$7.5 Billion E-Sourced 2010 2011 2012
in 2012
(projected)
E-Sourcing Suite CombineNet
Copyright © 2012. CombineNet, Inc.

7. Advanced Sourcing Events within
CombineNet ASAP
Very broad application across the enterprise
Transportation is still one of the largest focus areas of E-Sourcing events in
CombineNet ASAP
Customer Events by Category: January 2011 - June 2012
Services
12%
Packaging
12%
Transportation
42%
Indirect
Materials
13%
Direct
Materials
21%
Copyright © 2012. CombineNet, Inc.

8. CombineNet ASAP for Transportation Sourcing
Best in Class e-Sourcing for Transportation
400+ Transportation Sourcing Events per Year
More than $30 Billion in Annual Transportation Spend
All Modes:
Truckload/IM, LTL, Ocean, Airfreight, Parcel, Multi-mode
Shippers, 3PLs, Freight Forwarders and Logistics Consultants of
all sizes, across all industries, use CombineNet ASAP
Copyright © 2012. CombineNet, Inc.

9. Best-in-Class Transportation
Sourcing
Copyright © 2012. CombineNet, Inc.

10. Transportation Sourcing Best Practices
Leverage as much of your network as possible
– Show carriers all the opportunities that exist within your business
– Enable carriers to match their network/assets to yours
– Enable carriers to pick and choose which pieces of the business they
want, and express how they can best support that business
Focus on balancing rates with the capacity, service levels, & carrier
mix that suits your business
Find the right mix of carriers based on business strategies & needs
Evaluate the impact of regional or lane-level decisions on your
network as a whole
As much as possible, reduce sourcing cycle time and implement
results quickly
– Time is money!
Copyright © 2012. CombineNet, Inc.

11. Challenges of Transportation Sourcing
Consolidated spend is a large, complex challenge
– Potentially 1,000’s of individual lanes; 100’s of carriers
Regionalized decisions vs. center-led team/strategy
– Business unit/regional rules & preferences
– Site rules
– Customer delivery requirements
– Incumbency preferences
Balancing cost/coverage/service levels/strategic carrier decisions
– Rates
– Capacity
– Transit time
What’s the right number and mix of carriers
– At the Network & Lane level
– Price compression between primary and secondary carriers on high volume lanes
Internal resources constrained – focused on daily execution
Not supported by standard technology tools
Copyright © 2012. CombineNet, Inc.

12. Advanced Sourcing in Transportation
Carrier Measurement
• Flexible RFI
• Assessing Carrier Capabilities, Equipment, Drivers, Carbon Footprint,
Insurance, DOT Ratings
Expressive Bidding
• Expressive, Creative & Alternative Bids
• Equipment type, transit time, mode, capacity, service, volume
offers/discounts
• Total Cost of Ownership Models
• Rates, assessorials, fuel…
Scenario Analysis & Optimization
• “What If?” Scenario Models
• Regional preferences, network-wide contracts, corporate business goals
• Robust Reporting on Impact of Decisions
CombineNet ASAP
Copyright © 2012. CombineNet, Inc.

13. CombineNet Customers’ Strategies
Consolidating Freight Spend for
Negotiation Leverage Mode Switching
Explore options for moving from LTL to
• Network-wide bids vs. regional bids Truck to Intermodal to Rail; Review mode-
• Outbound + Inbound shipments mix for Ocean and Air
• Common carriers, dedicated, LSPs, NVOs
• Dry, Refrigerated, Bulk, Container, Intermodal
Carrier Collaboration: Understanding
Business Strategies & Needs
Review Carrier/Network Options
Look for mutual value/win-win opportunities
For efficiencies, service & equipment
that match your shipments with their assets
alternatives
and existing business
• Continuous loops/ backhauls/ multi-stop
• Carrier business/expansion plans
• Utilize imbalance between
Scalability
inbound/outbound & import/export in
Responsiveness to changes in volume certain regions
Copyright © 2012. CombineNet, Inc.

14. Transportation Sourcing:
TMS vs. Advanced Sourcing
Copyright © 2012. CombineNet, Inc.

15. TMS Benefits: Operations Execution
TMS solutions provide a number of operational benefits
Cost savings through automated carrier selection, route
planning and load consolidation.
Process efficiency gains with the automation of global freight
movement and the ability to better adapt to changes.
Improved asset utilization.
Service performance management in real-time.
Access to historical carrier performance and cost information.
Copyright © 2012. CombineNet, Inc.

16. Sourcing with TMS: The Limitations
Strategic sourcing capability is often an extension of
shipment tenders or spot buying functionality
Good enough for collecting rate information, but what about
engaging carriers in real negotiations?
Carrier capacity is often an afterthought in the sourcing process –
evaluated after bids are collected and analyzed
Service and Equipment mirrors what is available in the execution
system, but how can your carriers add value?
Simultaneous analysis of all key decision criteria (Capacity, Service,
Sustainability, Mode Conversion, Safety/Risk, etc.) is non-existent, so
how do you get the “Big Picture”?
Copyright © 2012. CombineNet, Inc.

17. Advanced Sourcing Complements TMS
Enables carrier collaboration with Expressive Bidding
– On lanes, alternate service/mode/equipment/O&D pairs
– Capacity on a lane, region, and network level
– Volume discounts and carrier-defined packages
Price compression tools to reduce rate variability on lanes between
primary and secondary carriers
Powerful, Flexible and Efficient Bid Analysis and Optimization
– All key decision criteria and savings levers considered at one time
Extensive & efficient negotiation support
Reporting capabilities that quickly provide clear insight into Cost Tradeoffs,
Stakeholder Alignment, Negotiation priorities & Routing Guide
Development
Easy data migration to/from TMS
Process Control: Launch same RFX structure on like events
Flexibility: Easily configurable to incorporate outside data
Copyright © 2012. CombineNet, Inc.

18. Customer Success Story Examples
Copyright © 2012. CombineNet, Inc.

19. Case Study: AstraZeneca
Global biopharmaceutical company. Key Stats
1,000 + global lanes. 12% + savings.
Customer since: 2011
95% of volume on 250 70% reduction
Initial project: Global Air-Ocean lanes. in sourcing
Freight cycle time.
Special handling
Strategic initiative to transition requirements, 10% mode
more product from air to ocean including temp-control. switch from air
to ocean.
“The additional insight we were able to capture and use in
negotiations thanks to CombineNet ASAP would not have
been possible before with other solutions, especially in the
accelerated timeframe and global scale of this spend
category.”
James Shaw, Global Lead, Freight & Logistics, AstraZeneca
Copyright © 2012. CombineNet, Inc.

20. Case Study: Bayer
Bayer MaterialScience AG global ocean Benefits delivered:
tender performance improvement.  23% in savings over prior bid rounds.
Customer since: 2009  50% time reduction to manage data
Initial project: Transportation - Global and process: Tender executed in 2
Ocean Tender sourcing months vs 4.5.
Growth: Continue to extend/expand  Awarding based on multiple criteria.
CombineNet for ocean sourcing.  Supports global strategy while
considering regional requirements.
 One interface to the carriers.
Key Sourcing Stats
“CombineNet lets sourcing teams
Nearly 80,000 45 carriers involved.
concentrate on the analysis of differentiated
containers in 2010. 15,000 bids to scenarios instead of mainly managing the
4 regions, 3 subgroups, manage. data and process.”
and 3 silent partners.
– Lars Blüthner, Lead Ocean Buyer, Bayer
MaterialScience AG
Copyright © 2012. CombineNet, Inc.

21. Case Study: SABMiller plc
One of world’s leading brewers with
200 beer brands and 70,000 Spend Under Management
employees in 75 countries.
Road Freight Ocean Freight
Customer since 2011
(mostly FTL)
Initial Projects: Aggregate ground
transportation (2,500 lanes); and “With more data under one tender event,
improve Ocean freight (up to there was the need to support the process
30,000 TEU of standard containers) with a strong e-sourcing solution. We chose
CombineNet based on its intuitive handling
Results: of large data sets, the flexibility in defining
– Road Freight: 8% savings and tender variables, and the strong analytical
achieved one consolidated engine to assess and visualize different
sourcing process implementation scenarios."
– Ocean Freight: 10% savings and – Flavio Gall, Global Category Director –
major efficiency gains Freight and Fleet, Trinity Procurement/
SABMiller
Copyright © 2012. CombineNet, Inc.

22. Next Steps
Download the CombineNet ASAP Transportation Solution Kit
www.combinenet.com/TransportationKit
Read the latest Transportation Sourcing Case Study:
“SABMiller Brews Up Impressive Transportation Sourcing
Improvements with CombineNet”
http://www.combinenet.com/resource-center/index.php
Copyright © 2012. CombineNet, Inc.

23. Next Steps
Download the CombineNet ASAP Transportation Solution Kit
www.combinenet.com/TransportationKit
Read the latest Transportation Sourcing Case Study:
“SABMiller Brews Up Impressive Transportation Sourcing
Improvements with CombineNet”
http://www.combinenet.com/resource-center/index.php
Questions & Discussion
Contact Us
www.combinenet.com
info@combinenet.com
1-877-293-5480
Copyright © 2012. CombineNet, Inc.