Sprint Transportation & Distribution Solutions

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Transportation andDistributionSolutions Overview

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Transportation and Distribution Agenda

• Trends

• Challenges

• Solutions

• Additional information

© 2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

Introduction

Discussion points for Sprint solutions for transportation and distribution companies

Transportation and Distribution Trends With close ties to the success and failure of other industries, transportation and distribution has felt the effects of today’s economy

•  Tightening governmental regulations (FDA/ DEA/ DOD/ Homeland Security/ DOT) demand additional expenses and place greater burdens on business operations related to drivers’ hours of service, driver logs and material safety


Introduction

•  Forcing continual cost cuts and increased efficiencies due to extremely low profit margins

•  Growing sensitivity to fuel price fluctuations that represent one of the industry’s major costs

•  Strengthening of safety, security, risk management and additional funding

•  Consolidating to deal in large volumes and negotiate lower prices with suppliers and retailers

•  Spending more time on training and worker retention programs with annual driver turnover up to 100% and warehousing turnover around 60%

•  Improving order fulfillment and customer satisfaction with real-time inventory tracking from the field

•  Providing visibility into shipment deliveries to decrease theft and improve estimated time of delivery

•  Increasing demand for technology solutions that allow real-time tracking of mobile workforces to monitor delivery status and improve exception management process at customer sites

Controlling costs Increasing need for end-to-end supply chain visibility

Tightening federal regulations

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•  Increasing the ability to meet customer’s order fulfillment expectations

•  Implementing plans based on actual demand and order status versus forecasting

•  Improving fuel efficiency for successful operations and company survival

•  Improving in-building connectivity within warehouses and distribution centers for effective communication and inventory control

Transportation and Distribution Challenges Transportation and distribution companies are facing significant challenges that can often be alleviated through the use of innovative solutions


Introduction

•  Improving real-time field communication among various worker groups

•  Tracking and managing fleets, inventory and people in real time to increase visibility into movement of physical assets and information flow

•  Improving efficiency of logistics, delivery, inventory management and sales operations via integration of back-end systems and field data

•  Improving fleet safety and driver safety (OSHA Safety Compliance)

•  Adhering to DOT/ Hours of Service (HOS) regulations

•  Enabling Fuel Tax Reporting (IFTA) and mile tracking

•  Adhering to Emission Control (EPA), idle time and cargo security regulations

Increasing operational efficiencies

Addressing economic and regulatory affairs

Maintaining competitiveness in the marketplace

By utilizing Fleet Management solutions, transportation and distribution companies can: •  Improve levels of customer service

•  Implement consistent business processes across your on-site and mobile user base

•  Enable device-based mobile timecards to capture time in and out on customer location and break time

•  Implement GPS tracking of delivery worker locations and hours along with automated Proof Of Delivery and Exception Management

Solution: Fleet Management Increase operational efficiencies, address economic and regulatory affairs and maintain your company’s competitive edge in the marketplace

GPS: Requires GPS & Java-enabled device. GPS reliability varies by environment. Use without a plan that includes data is 3¢/kb).© 2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

Direct Connect Solutions

Mobile Resource Management

Electronic On Board Recorder

Know your fleet’s location, analyze driver behavior and make appropriate changes based on easy reporting with real-time updates from the field. •  Utilize vehicle tracking for optimized dispatching and scheduling of

routing, enabling more stops with fewer trucks, as well as reliable communication of delivery time windows

•  Locate fleet vehicles and track routes in real time via intuitive map-based interfaces

•  Improve employee driving habits with instant feedback on risky maneuvers and coaching tools for supervisors

•  Leverage GPS-based turn-by-turn dynamic voice and onscreen routing •  Enable device-based mobile timecards to capture time in and out •  Enter orders, check inventory or validate delivery accuracy •  Electronically capture signatures at the time of delivery

Mobile Resource Management Keep drivers connected in the field, enabling them to effectively meet customer needs

Solution: Fleet Management


Applications Include: • AirClic®

• Xora® GPS TimeTrack™

• TeleNav Asset Tracker • Cheetah Software • Actsoft®

• AIRCHARGE • Air-Trak • Sprint Workforce

Locator

Case Study

Challenge •  More than 600 drivers utilized paper time sheets to document hours of

service, resulting in confusion and a lack of accountability

•  Unable to provide customers with accurate ETA’s with no way to track drivers in the field

•  Limited delivery status information impeded the back-office from efficiently routing drivers from one site to the next

Solution •  Implemented GPS tracking with picture capabilities and web-based reporting

to provide visibility into deliveries and status

•  Utilized mobile applications run on Direct Connect devices to automate time keeping, location tracking and electronic Proof of Delivery / signature capture

Bottom line •  Improved customer satisfaction with web-based reporting and real-time job

status visibility to provide accurate ETA’s and to resolve customer disputes

•  Increased cost savings and significant reduction in driver overtime with electronic bookkeeping and time sheets

•  Increased efficiency with visibility into the field, resulting in optimized routing

Sprint helps major electrical distributor improve efficiencies of delivery operations

•  More than $5 billion in revenue •  Approximately 8,500 employees •  Company is a leader in the distribution

of high-quality electrical, telecommunications and networking products

•  Supply chain management and logistics services are also among their many expertise

GPS: Requires GPS & Java-enabled device. GPS reliability varies by environment. Use without a plan that includes data is 3¢/kb). Direct Connect: Nextel and PowerSource devices operate on the Nextel National Network. Sprint devices operate within certain EVDO Rev-A coverage areas on the Sprint 3G network. © 2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.


Case Study

Challenge •  Lack of visibility into location, delivery route and job status

•  Poor communication between delivery drivers and dispatch office

•  Management wanted to track delivery activity and fleets to manage the entire delivery process more efficiently

Solution •  Field fleet and asset management solution on the Sprint 3G and 4G networks

•  In-vehicle unit with a Sprint embedded modem that transmits order and truck status information in real time

•  Management tracks asset location and work order and inventory status continuously

Bottom line •  Customer was able to fully automate labor-intensive, error-prone processes

with minimal training for drivers and field personnel

•  Real-time monitoring of routes allowed the company to quickly identify deliveries that are falling behind and to take immediate actions

•  Achieved financial and operational efficiency

Sprint helps a major food wholesale distributor to increase their revenue by automating their job delivery process

Coverage not available everywhere. Sprint 4G network reaches over 70 markets and counting, on select devices. Sprint 3G network reaches over 274 million people. See sprint.com for details. © 2011 Sprint. © 2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.


Case Study

Challenge •  Dispatchers relied on printouts to calculate routes and posted updates on

paper copies of each truck’s manifest

•  Establishing the best routes for pick up and delivery of furniture required up to 4 hours, based solely on dispatcher experience

•  If a truck ran late and delivery window was missed, the driver was required to rearrange his load mid-route, causing further delay

•  Overtime hours soared and fuel costs were out of control

Solution •  Company selected the Cheetah Deliver™ System to optimize routing,

scheduling and delivery and dispatch operations

•  Managers and dispatchers can now see, graphically, where each truck is on its assigned route

•  When a delay occurs, the system suggests alternative route and decision-making has become easier and more effective

Bottom line •  Reduced overtime payments by 27% in the first month

•  Due to more efficient routing the company benefited from significant fuel costs reduction

•  Transportation managers now have the information to coach drivers on ways to save time and improve service levels.

•  Increased customer satisfaction with the services provided

Sprint helps a furniture rental and distribution company increase operational efficiencies through route optimization solutions



Case Study

Challenge •  Unable to know driver’s whereabouts and provide customer with an accurate

ETA

•  Experienced increased costs with the inability to hold drivers accountable in the field

Solution •  Implemented route-tracking devices to improve drivers’ day-to-day

performance

•  Eliminated excess idle time that resulted in additional costs

•  Held employees accountable with daily reporting on idle time, speed history, hard braking counts and a location map of where each incident occurred

Bottom line •  Decreased idle time from an average of 8 hours per day to 30 minutes

per day

•  Improved fuel economy due to reduced idle time and out of route miles

•  Reduced insurance costs due to fewer accidents

•  Saved approximately $1 million per year overall with the tracking solution

Sprint helps a large truckload carrier track, route and analyze their fleet information, increasing productivity and driving down costs


•  Family-owned business •  Established in 1947 •  Has grown into one of the largest truckload

carriers •  Serves steel, manufacturing and food

industries •  Goal is to provide best-in-class customer

service


Electronic on Board Recorders track GPS data, engine diagnostics, IFTA mileage reporting, odometer readings, fuel efficiency, Electronic Hours of Service and other fleet data right from mobile devices. •  Use GPS to track mileage and job locations •  Automate regulatory compliance data collection for HOS,

IFTA, Idle Time (EPA) and chain-of-custody requirements •  Ensure safety and fleet performance with automated

maintenance reporting and real-time engine diagnostics •  View engine diagnostics, hard-braking, engine idling,

speeding, RPMs, odometer readings, mileage and fuel efficiency

•  Access vehicle, driver and fleet performance reports, and logs needed to properly file international Fuel Tax Agreement (FTA) information and record payroll

Electronic On Board Recorder (EOBR) Maximize delivery schedules, optimize routes and reduce costs with real-time access to data and driver logs

GPS: Requires GPS & Java-enabled device. GPS reliability varies by environment. Use without a plan that includes data is 3¢/kb). TELENAV is a trademark of Telenavigation, Inc.© 2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.


Case Study

Challenge •  Needed to improve the performance of their trucks

•  Needed to ensure the safety of their drivers, while lowering costs to improve profitability

Solution •  Sprint and RouteTracker powered by Xata Turnpike®

•  GPS solution to meet their needs and achieve results to help reach their goal

•  Route Tracker is an Electronic On Board Recorder (EOBR) that collects GPS data and diagnostic information among vehicle fleets

Bottom line •  Standard operating procedures have improved significantly

•  Completing the IFTA information now takes less than a day (2-3 weeks previously) and has reduced the need for two workers, saving an estimated $100,000 per year

•  Miles per gallon increased from 5.75 to 6.2 for company drivers, increasing fuel economy by 7.8% and saving $150,00 annually in fuel costs

•  Safety improved with a 75% reduction, decreasing from 12 accidents to 3 at an average of $5,000 per accident this results in savings of $45,000 per year

Sprint helps C&K Trucking (Intermodal) transform their operations and increase profitability

GPS: Requires GPS & Java-enabled device. GPS reliability varies by environment. Use without a plan that includes data is 3¢/kb). © 2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

•  Headquartered in Chicago, Illinois •  One of the largest intermodal trucking

companies •  Specializes in the drayage of containers

and trailers between ports, railroads and shippers

•  Has 420 trucks, nine terminals, 92 company drivers, more than 300 owner-operators and 300,000 moves annually

•  Mission is to become a premier intermodal logistics and drayage company by providing reliable, safe, “value-added” drayage services


By utilizing Asset Management solutions, transportation and distribution companies can: •  Improve cash flow, order fulfillment processes and customer

satisfaction and retention

•  Facilitate efficient transport of goods and delivery operations •  Manage inventory and sales channel operations

•  Perform real-time network updates that speed supply chain management and cash flow

Solution: Asset Management Increase operational efficiencies, address economic and regulatory affairs and maintain your company’s competitiveness in the marketplace


Asset Management Solutions

Location-Based Services

With built-in GPS receivers, most Sprint devices work in tandem with location-based applications to pinpoint whatever you’re tracking - in seconds. With GPS software, you can know where your workforce and vehicles are at all times, optimizing your assets and responding to customer needs immediately by integrating with existing back-office systems. •  Track data on mobile workers, assets, inventory, jobs and events •  Dispatch jobs, receive status updates and pinpoint worker locations •  Enable mobile workers to access job info, transmit data and receive driving

directions •  Expedite jobs by tracking the time, tasks and location of your mobile workers •  Optimize scheduling and dispatching to coordinate routes and loads •  Provide current information on traffic, weather and road conditions •  Track hours and cut travel time while reducing overtime and unauthorized mileage •  Enable exception reporting, including speed, stops and mileage

Location-Based Services Increase your company’s competitiveness with the ability to track vehicles and jobs, providing delivery information in real time to improve customer service

Solution: Asset Management

GPS: Requires GPS & Java-enabled device. GPS reliability varies by environment. Use without a plan that includes data is 3¢/kb). © 2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization..

Applications Include: •  AirClic®

•  Xora® GPS TimeTrack™

•  TeleNav Asset Tracker •  Cheetah Software •  Actsoft®

•  Turnpike® RouteTracker •  AIRCHARGE •  Air-Trak •  Sprint Workforce Locator

Case Study

Challenge •  Used radios and phone calls to ensure delivery.

•  Company struggled to provide customers with accurate ETA’s.

•  Expansion was impeded by the need to open local offices and hire more dispatchers in target markets, making expansion difficult due to curtailed margins

Solution •  JS Logistics spent two years searching for the ideal system before selecting

the Cheetah Delivery route optimization and dispatch application

Bottom line •  Staff can accurately predict when couriers are going to arrive and the

company can proactively deal with delays

•  Previously, when a customer called to ask when a courier would arrive, the CSR had to transfer that call to dispatch. Now 99% of the calls are dealt with by CSR’s in seconds

•  Predicted cost of operations in Kansas City are 20-30% lower than any of his competitors

•  Now able to expand into new markets without the need to add more dispatchers

Sprint helps major electrical distributor improve delivery operations efficiency

“ My operations department went from 10 dispatchers to 5, and I was able to increase my volume from 3,000 deliveries a day to about 7,000 deliveries.”

John Cochran, President JS Logistics



Case Study

Challenge •  Drivers used online mapping solution to map out customer locations

•  Online mapping solution became inefficient as new deliveries were added throughout the day to driver schedules, resulting in managers providing directions over the phone

•  No method to audit locations of portable units to ensure deliveries were made and customers receive their orders

Solution •  Turned to a GPS navigation and tracking application to help route drivers to

customer locations using GPS capabilities on their devices

•  Enabled facility management team to manage the schedule, locate trucks in the field and monitor the safety and policy compliance of drivers

•  Allowed drivers to receive schedule changes in the field with information provided electronically through the workers’ devices

Bottom line

•  Improved efficiency with drivers’ ability to easily find a customer address and electronically receive schedule changes in the field

•  Enhanced customer service with accurate, real-time navigation information resulting in maximized fuel efficiency

•  Increased employee accountability to ensure company resources are being used effectively

Sprint helps portable storage and moving company, 1-800 Pack Rat, improve worker productivity and fuel efficiency in the field

GPS: Requires GPS & Java-enabled device. GPS reliability varies by environment. Use without a plan that includes data is 3¢/kb). © 2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

• Storage company • Offers portable storage units that are delivered to a customer’s home or business • Has more than 37 company-owned and franchise-owned locations • Located throughout 21 states


Case Study

Challenge •  Supervisors had no visibility into activities performed by sales &

merchandisers (time spent in each location, overtime, mileage)

•  Needed optimum allocation of workers/ jobs to different stores

•  Needed to comply with Safety/Labor laws (e.g. proof of break)

•  Needed proof of jobs done in line with supplier requirements

Solution •  Rugged wireless devices with a mobile tracking application automatically

captures timesheet data and integrates data with payroll system

•  The solution also provides mileage reports, work status indicator and worker and fleet productivity summary reports

•  Instant GPS visibility of all workers, including the location, date and start/break/finish time streamlines supervising

Bottom line •  Reduced overtime by 54%

•  Productivity gains over 14%

•  Almost $1M in annual cost savings

•  ROI realized within one month of solution deployment

Sprint helps California food and beverage distributor maintain their competitive edge with merchandising solutions


“We can never be confident that timesheets and mileage reported by our merchandisers are accurate…but we can’t prove it, so we pay …”

- Food & Beverage Distributor


By utilizing Mobile Worker Productivity solutions, transportation and distribution companies can: •  Improve fuel costs and employee efficiency and safety through enhanced data,

applications and management reports

•  Manage maintenance with service reminders, alerts and tracking to prolong vehicle life and optimize performance

•  Enable employees to access the Internet and company networks quickly and easily via multiple devices

Solution: Mobile Worker Productivity Contain costs and increase operational efficiency and productivity by turning vehicles into full-featured communications centers


Mobile Worker Productivity Solutions

Mobile Connectivity

Field Service Automation

Get improved responsiveness, efficiency and cost controls for your sales reps, drivers and dockworkers. With Sprint devices and the dependability of the Sprint 3G and 4G networks, quickly connect with customers, vendors and co-workers, and update data on the spot. •  Provide secure, reliable connectivity for multiple devices,

including laptops, smartphones and mobile devices •  Allow employees to access critical information on the go •  Deliver simple, consistent connectivity, without the need to

reconnect when travel includes multiple stops or locations with varying coverage

•  Process order fulfillment, product delivery and accounting logistics faster

•  Extend proprietary applications and databases to reach virtually anywhere

•  Monitor order activity and shipment status, review schedules, meetings and inventory levels, and automatically populate order information into databases from smartphones or laptops

•  View and update key client metrics from the field

Mobile Connectivity Turn company vehicles into mobile Wi-Fi hotspots to keep employees securely connected while on the go

Solution: Mobile Worker Productivity

Coverage not available everywhere. Sprint 4G network reaches over 70 markets and counting, on select devices. Sprint 3G network reaches over 274 million people. See sprint.com for details. © 2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

Cut material costs, plan routes and load more effectively, and provide your drivers with remote access to the important data they need to get their jobs done. •  Access real-time systems for Customer Relationship

Management (CRM) and Sales Force Automation (SFA) •  Update important information for customer and sales from

just about anywhere employees are located •  Track and manage leads, contacts, accounts and

schedules; respond to new opportunities; and close more deals

•  Manage your sales force and generate accurate forecasts to make more informed decisions

•  Reduce driver log reporting mistakes by allowing drivers to log their status immediately from their mobile device

Field Service Automation Spend more time maintaining effective operations and less time focusing on paperwork


Solution: Mobile Worker Productivity

Motorola ES400S

Industry Leadership Sprint is a recognized and award-winning provider

Why Sprint?

Sprint ranks #1 among national carriers in wireline Business Customer Service* *National carriers include AT&T, Century Link, Global Crossing, Level 3, Qwest and Verizon.

– 2010 ATLANTIC-ACM Business Connectivity Report

Sprint ranks #1 in overall satisfaction for wireless voice and data services among large business customers.

– Yankee Group, U.S. Carrier Satisfaction Survey, 2010

“Top Provider of MPLS Services” IT professionals name Sprint best provider of MPLS in overall score, ranking highest in the value and technology category and finishing a close second in customer service.

– Nemertes Research, 2010

Product Leadership Award, MPLS Network Service Level Agreements, North America Sprint combines high-level network performance and aggressive SLA terms to create a competitive differentiator.

– Frost & Sullivan, 2010

Sprint ranks #1 among national carriers in wireline Enterprise Data Value*

*Sprint tied with another carrier. National carriers include AT&T, CenturyLink, Global Crossing, Level 3, Qwest and Verizon.

– 2010 ATLANTIC-ACM Business Connectivity Report


Sprint offers dedicated support, plans and devices to meet the needs of today’s business customers.

•  Specialized care designed to handle needs specific to business

•  Business Device Select for the best pricing on new equipment

•  Promotions and credits for transferring from other carriers to Sprint

•  Ready Now for Business in-store device setup

•  Robust portfolio of business-ready devices to help meet business needs including cutting-edge smartphones, mobile broadband devices and rugged phones

Business Focus and Support Sprint has the people, network and partners dedicated to support the unique needs of business customers

Why Sprint?


•  Sprint pledges to reduce greenhouse gas emissions, increase the deployment of renewable energy and continue aggressive device recycling efforts through the Sprint Buyback Program

•  Sprint engages in environmentally responsible business practices, including "green" IT, waste-reduction efforts, e-billing, procurement, Device Eco-Criteria and a strong environmental employee-engagement program

•  Sprint Device Eco-Criteria aims to reduce chemicals in products and eliminate unnecessary packaging for eco-friendly devices

Sprint Sustainability Sprint is committed to being a corporate leader in environmental responsibility with initiatives to help reduce their environmental footprint

Why Sprint?

Newsweek ranks Sprint the most environmentally responsible provider among national carriers - Newsweek Green Rankings based upon environmental impact, green policies and performance, and reputation survey scores as of Sept. 21, 2009


Additional Information

Your business is more powerful with Sprint. With excellent value, the latest devices and solutions, a nationwide 3G network and a blazing-fast 4G network, Sprint is the perfect provider for transportation and distribution companies. For more information,

contact your Sprint representative or visit sprint.com/business

Coverage not available everywhere. Sprint 4G network reaches over 70 markets and counting, on select devices. Sprint 3G network reaches over 274 million people. See sprint.com for details. © 2011 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

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