1 MDS Freight & Shipping Overview TSH User Meeting 2008.

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MDS MDS Freight & Shipping Freight & Shipping

OverviewOverview

TSH User Meeting 2008TSH User Meeting 2008

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Why to Look at Freight for Why to Look at Freight for your Company? your Company?

►Rising Fuel and Shipping CostsRising Fuel and Shipping Costs►Shorter Delivery WindowsShorter Delivery Windows►Shrinking MarginsShrinking Margins

►MDS Freight Subsystem Offers: MDS Freight Subsystem Offers: Additional Revenue StreamAdditional Revenue Stream Increased Visibility into Actual CostsIncreased Visibility into Actual Costs Better Control of Freight and Shipping CostsBetter Control of Freight and Shipping Costs Better Customer ServiceBetter Customer Service

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MDS Freight SubsystemMDS Freight Subsystem

►Shipping MethodsShipping Methods►Ship Rate Table/Ship Zone TableShip Rate Table/Ship Zone Table►Freight Class TableFreight Class Table►Add on Dollar Amount by: Add on Dollar Amount by:

CustomerCustomer Customer ClassCustomer Class

►Percentage of Order/Actual Freight Amount:Percentage of Order/Actual Freight Amount: CustomerCustomer Customer ClassCustomer Class

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Shipping and DeliveryShipping and Delivery

MDS has two methodologies MDS has two methodologies available – for customers available – for customers who deliver via:who deliver via: Third Party Shipping systems Third Party Shipping systems

(UPS, FedEx)(UPS, FedEx) Customer owned trucksCustomer owned trucks

►Either approach generates Either approach generates shipping papers, carton shipping papers, carton labels and ASN’s as result of labels and ASN’s as result of shipping operationshipping operation

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Shipping MethodsShipping Methods

►Third Party Shipping (Fedex, UPS, DHL)Third Party Shipping (Fedex, UPS, DHL)►Common Carrier/LTL – Less than Common Carrier/LTL – Less than

TruckloadTruckload►Your own TruckYour own Truck

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Third Party Third Party Shipping Systems Shipping Systems ► Warehouse picks, packs, and verifies order Warehouse picks, packs, and verifies order ► MDS includes interface to Third-Party MDS includes interface to Third-Party

Shipping Systems (UPS Worldship, FedEx, Shipping Systems (UPS Worldship, FedEx, DHL)DHL)

► Carton placed on shipping scaleCarton placed on shipping scale► MDS provides shipping information to MDS provides shipping information to

manifest system (address method of manifest system (address method of shipment etc.)shipment etc.)

► Manifest System uploads tracking number, Manifest System uploads tracking number, number of cartons, weight and costnumber of cartons, weight and cost

► Based on customer profile MDS applies Based on customer profile MDS applies shipping charge to invoiceshipping charge to invoice

► Invoice or Pack Slip printed at the shipping Invoice or Pack Slip printed at the shipping stationstation

► Shipment status inquiry available from Shipment status inquiry available from within the MDS applicationwithin the MDS application

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MDS Shipment UpdateMDS Shipment Update

►Automatic (Via ODBC) or Manual (Via Automatic (Via ODBC) or Manual (Via Keyboard)Keyboard)

►Barcode Scanning Reduces ErrorsBarcode Scanning Reduces Errors►UPS/FEDEX Can Correct Address Errors UPS/FEDEX Can Correct Address Errors

and update MDSand update MDS

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Shipment Drill Shipment Drill Down/TrackingDown/Tracking

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Ship Rate/Ship ZoneShip Rate/Ship Zone►Pros: Pros:

Simplest MethodSimplest Method Based upon UPS/Fedex Zones or MapsBased upon UPS/Fedex Zones or Maps

►Cons:Cons: Not Exact – Rates fluctuateNot Exact – Rates fluctuate Maintenance IntensiveMaintenance Intensive

►Customer CodingCustomer Coding►Carrier (UPS) UpdatesCarrier (UPS) Updates

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Freight Class TableFreight Class Table

Allows for Free Freight cut offAllows for Free Freight cut off Allows override based upon local Allows override based upon local

warehousewarehouse Simple and Easy to UnderstandSimple and Easy to Understand Can change based upon customer or Can change based upon customer or

Sales OrderSales Order Percentage of Order TotalPercentage of Order Total

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Customer/Customer Class Freight SurchargeCustomer/Customer Class Freight Surcharge

►Allows Actual Freight to be used or Allows Actual Freight to be used or Order totalOrder total

►Can be Percentage or Flat DollarCan be Percentage or Flat Dollar►Can be set at Customer or Customer Can be set at Customer or Customer

Class LevelClass Level►Allows for a Minimum Order Total Allows for a Minimum Order Total

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Company Freight SetupCompany Freight Setup

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Drop Ship Freight ChargesDrop Ship Freight Charges

►Allows you to pass on or Up charge Allows you to pass on or Up charge Freight and or miscellaneous Charge to Freight and or miscellaneous Charge to your customersyour customers

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Delivery Master Delivery Master Running Your Own TrucksRunning Your Own Trucks

► Initial routing information in the customer Initial routing information in the customer filefile

►Warehouse picks, packs, and verifies orderWarehouse picks, packs, and verifies order►Bar code label generated for each packageBar code label generated for each package►Shipping manager reviews truck loads and Shipping manager reviews truck loads and

adjusts routes and stops (initially assigned adjusts routes and stops (initially assigned from customer profile) based upon from customer profile) based upon schedule, truck loading etc.schedule, truck loading etc.

►Paper manifests are printed to serve as a Paper manifests are printed to serve as a backup if neededbackup if needed

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Routing Information on each Routing Information on each OrderOrder

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Truck Route Truck Route AssignmentAssignment

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Create your Own LabelsCreate your Own Labels

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Loading the TruckLoading the Truck

►Each carton is scanned as truck is being Each carton is scanned as truck is being loaded to insure that all packages have loaded to insure that all packages have been loaded on the right truck. been loaded on the right truck.

►Driver downloads the electronic manifest Driver downloads the electronic manifest to handheld device, enabling the device to handheld device, enabling the device to record delivery and stop informationto record delivery and stop information

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PDA DisplaysPDA DisplaysManifestManifest

by Route and by Route and StopStop

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Customer DeliveriesCustomer Deliveries

► Driver scans each carton’s barcode as it is being Driver scans each carton’s barcode as it is being delivered to insure that the right boxes are being delivered to insure that the right boxes are being delivered, and that no cartons have been missed. delivered, and that no cartons have been missed.

► Driver captures customers’ signatures on the Driver captures customers’ signatures on the handheld devicehandheld device

► Upon return, the device in placed in cradle (docked) Upon return, the device in placed in cradle (docked) mode, the signature and delivery information is mode, the signature and delivery information is uploaded to the server when the truck returns to the uploaded to the server when the truck returns to the warehousewarehouse

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Driver Route ManagementDriver Route Management

Signature data is uploaded upon driver return to the warehouse.

Delivery information is capturedon each driver’s handheld device. Upon return information in the handheld device is uploaded to the MDS system.

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A variety of reports are available on any aspect of the delivery process.

Driver and delivery performanceCustomer Issues

Report and Management Report and Management CapabilitiesCapabilities

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Benefits of Delivery Benefits of Delivery MasterMaster

Improved delivery service Improved delivery service Ability to capture signature when Ability to capture signature when

packages are delivered.packages are delivered. Provides Proof of DeliveryProvides Proof of Delivery Insure that all packages have been Insure that all packages have been

delivered to the right customer.delivered to the right customer. Maintain history of all packages Maintain history of all packages

delivered by customer and driver.delivered by customer and driver.

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Benefits of theBenefits of theMDS Shipping & Freight MDS Shipping & Freight

SubsystemsSubsystems

Create Additional Revenue StreamCreate Additional Revenue Stream Increased Visibility into Actual Increased Visibility into Actual

CostsCosts Better Control of Freight and Better Control of Freight and

Shipping CostsShipping Costs Better Customer ServiceBetter Customer Service