TMS – Business Analysis Review

Version – October 3, 2019

This document contains the results of an initial business analysis undertaken for Omnicorp/OSHT to
better understand the workflows from a local transportation company that will be mapped into the
proposed TMS project. This document is subject to further revision and addition.

Transportation Corridor
It is important that TMS understands the interrelated nature of the transportation corridor that is being
modelled based on the Province of Ontario. Below, is a table of all cities/transportation hubs that will be
used in the TMS prototype. Distances are provided along with notations indicating the previous/next
destinations. This is important, as TMS must calculate the correct distances involved when facilitating
the Route Planning function.

Destination Km’s Time (h) West East

Windsor 191 2.5 END London
London 128 1.75 Windsor Hamilton
Hamilton 68 1.25 London Toronto
Toronto 60 1.3 Hamilton Oshawa
Oshawa 134 1.65 Toronto Belleville
Belleville 82 1.2 Oshawa Kingston
Kingston 196 2.5 Belleville Ottawa
Ottawa N/A Kingston END

Operational Rules for Carriers

Current Business analysis indicates the following business rules are in place for Carriers (E.g. Trucking
companies hired by OSHT to deliver orders):

1) A driver can only operate a maximum of 12 hrs per day, and only 8 of those hours can be
driving.
2) LTL – 2 hrs per load at the origin of the trip, and 2 hrs unload at the destination are calculated
for trip duration; Each intermediary destination for an LTL ship must add 2 hrs as other cargo is
off loaded in those cities.
3) FTL – As with LTL at origin and destination; FTL shipments pass through, but do not stop in
intermediary cities.
4) Based on the time to complete the order, a surcharge of $150 per day past the first is added to
the charge for the order.

Example:

LTL from Windsor to Hamilton = 2hrs load in Windsor, 2hrs stop in London, 2hrs unload in Hamilton,
+5.5hrs driving = 11.5hrs total.

FTL from Windsor to Hamilton = 2hrs load in Windsor, pass through London, 2hrs unload in Hamilton,
+5.5hrs driving = 9.5hrs total.
Costs and Charges
OSHT will operate essentially as a transportation broker and will not operate its own fleet of trucks. In
addition, OSHT does not directly employ drivers. Therefore, the most significant issue at costing an order
is to understand what a Carrier will charge OSHT for booking cargo onto their trucks.

For the purposes of the TMS project, the average rates OSHT sees in the marketplace are as follows:

FTL Avg Rate = $4.985/km as a flat rate

LTL Avg Rate = $ 0.2995/km for each pallet

Note: The actual rates charged by Carriers may be higher or lower than these averages.

Carrier Data
Carrier Name

Depot City – E.g. the city they operate from. A Carrier that does not operate from the same depot city as
the origin city will not take our contracts. Carriers may operate from multiple cities/depots.

FTL Availability – The number of full truck loads that are available at a depot.

LTL Availability – The number of pallets of LTL shipping that are available at a depot.

FTL Rate – the per km charge for a Full Truck Load. This fee hires the entire truck/trailer.

LTL Rate – the per km charge for a single pallet (usually 48”x40” by max 500lbs) on ‘Less than Truck
Load’ orders. A Dry Van or a Reefer Van can both hold up to 26 pallets.

Reefer Charge – A percentage increase (usually between 5 and 10% extra on the km charges above)
when the order specifies a refrigerated trailer (Reefer Van) is required.

How will OSHT make money?

1) OSHT will markup any FTL rate from a Carrier by 8% and any LTL rate by 5%
2) If it is possible to combine multiple LTL jobs departing the same city into a single trailer, OSHT
will hire a truck at the FTL rate, and still charge the LTL customers the LTL rate. This is deemed to
be particularly lucrative in the eyes of Mr. Snodgrass the third!
a. Note… Dry cargos and Reefer cargos can never be combined… only like cargo
b. TMS will have to determine the break even point to make this strategy successful and
ensure that TMS users are aware of this functionality
c. A ‘converted LTL’ job must still stop at take a 2hr duration hit at each intermediary city,
regardless of the fact that the cargo was hired onto an FTL contracted trailer.
Contract Market Place (CMP)
This online service allows OSHT to login and pull shipping requests from a third part request
management system. The anticipated data messages from the CMP would follow this format:

CLIENT_NAME|JOB_TYPE|QUANTITY|ORIGIN|DESTINATION|VAN_TYPE

Job_Type = Values are ‘0’ for FTL, ‘1’ for LTL

Quantity = 0 for FTL, or an integer for the number of pallets of LTL cargo

Van_Type = 0 for Dry Van, 1 for Reefer

Details on CMP implementation are still pending from the industry partner collaborating with OSHT on
its development. It is expected that the data outlined above would be provided through a SQL query to
the CMP database.

TMS Time Based Simulation

It will be important for TMS to be able to properly evaluate an Order for not only the rates involved (e.g.
FTL or LTL rates) but also for the time duration required to pick up and deliver the cargo, including stops
at intermediary cities, and the impact of orders that will take more than one day.

Possible Changes to Orders

These are not confirmed, though they have been discussed at the Product Development’s last retreat to
the luxurious Half Moon Bay resort complex…

- Consider how we could add a North/South branch to get cargo to Sudbury

- Advanced Carrier Availability scenario would include connecting to Carrier systems to update
their availability of FTL and LTL capacity
- Intermodal shipping would add trips to an Order where the cargo would be transferred from
truck to rail for efficient, long-distance transportation.