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TO: Client Management Team

FROM: 3PL Transportation
Transportation Report for XXX Client DATE: 1/8/2013


The Dallas Smart Post beta test reporting has been initiated for the last couple of weeks with positive
results. There have been 1180 shipments with an average in transit time of 1.8 days and a weekly
average savings of $1K compared to shipping HD. One negative note to this implementation was
finding out that the 3PL system is not mapped correctly to receive the APO service method, therefore
causing additional work during the waving process. The solution is currently being mapped out by
the 3PL IT department.

Provided Bill M with the 2013 Trans Impact Report that showed a net impact of $488K or 6% over
2012 due to the 2013 carrier increases. In order to mitigate some of this increase, action items were
presented that included the execution of the 2day to HD project, expansion of the Smart Post
delivery method, and developing a process for capturing address corrections prior to shipping.
Confirmed with Sheryl V and the local Dallas USPS facility, that the R&F postage due and CAPS
accounts have been setup and linked.

Cost Improvements
Average cost per shipment continues to reduce month over month due to utilizing the lower cost
service. December provided the lowest per carton cost to date at $9.21.

Metrics Overview
Overall each metric continues to track according to the established goals.
Express shipments
86% of the express shipments in December shipped via 2nd Day therefore meeting the 2 day
Ground shipments
Monthly goal was exceeded due to call tag volume and freight associated with returns.
Smart Post
Week ending 12-29 was the first week for receiving Smart Post billing based on the Dallas
beta test which drastically reduced the overall cost per order.
Express performance suffered during the month of Dec mainly due to increased holiday
volume, which is expected each year.

Ongoing Tasks/ Proposed Cost Solutions

Continuing to negotiate with the carrier in order to mitigate some of the 2013 rate increases.
Testing 214 EDI / Shipment Status report to provide more insight on managing and reporting
delivery exceptions.