Managing Private Fleet &

3rd Party Carriers using

OTM as a single platform
 Agenda
• Overview of Penske Corporation
• OTM / Fleet Manager
• Current / future implementation plans
• Hub & Spoke network
• 3rd party carriers
• Illustration of fleet & 3rd party network

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Penske Organization Corporate Structure
• Headquartered in Bloomfield Hills, MI
• Over $25 Billion in Revenue
• 50,000 Employees
• 3,300 Locations Worldwide

Transportation Automotive Performance Private Equity

A market-leading provider An international company, A third-party private equity

of full-service leasing, operating retail dealerships fund that invests in the
contract maintenance, and commercial vehicle Indy Race League
transportation and
truck rental, and supply distribution. transportation services
chain solutions. industries.
NASCAR
Penske Logistics - Product Overview

Managing “private Managing inbound and Managing movement Managing & Value based supply
fleet” operation for outbound material through a warehouse optimizing overall chain consulting
shippers flow logistics network services
Dedicated Contract Carriage
DCC
Employing dedicated transportation resources to efficiently
achieve peak service performance.

Core Services Value Added Services

› Manage professionally trained drivers › Optimize and design fleet
› Provide equipment, maintenance and road service › Determine routing and scheduling
› Oversee fuel procurement and consumption › Arrange third-party and supplier backhauls
› Manage safety, insurance and compliance › Maximize trailer capacity
What is Fleet Manager?

One single platform for managing

Dedicated Contract Carriage Drivers,
Trucks, Routes & Costs and 3rd party
Carriers
OTM is the solution for efficient & profitable
operations
 • Master Schedule
Penske’s OTM Ecosystem • TIRB Static & dynamic route
Order • EDI schedules
Management
TMS and Brokerage integration
Driver’s mobile device Cellcomm App

Driver Work Invoice and Fleet Manager Update actual and shipment
OIC – Driver Paydriver pay events Cellcomm Portal

Special services and billing Carrier onboarding, contract • POPS

Billing & Driver management and payment management • FMA
Pay Portal • FPAP
• CSR

Master
Data
OMD MCP Portal Mgmt.
Support and Content Real time Operational BI / Analytics • HRIS
Manage / Monitor integration Operational, Billing and
Management Dashboard • VeCAP
messages & exceptions Analytical Reports • RentalNet
CURRENT IMPLEMENTATION
STATUS
What Have We Done?

172+ 2,000+ 2,680+

What’s Next?
2016 Plan 2016 YTD 2017 Plan Target

61 39 59 250+

876 333 853 3,350+

1,052 394 1,220 5,000+

 Current State of Implementation
Key OTM’s Fleet Related Functionalities

• Application of Dispatch Board and

related functionalities
Order Sell Shipment Customer
Management creation Billing • Automatic Fleet Asset Assignment
– Driver – Self Assignment using CellComm™
– Power Unit assignment by Driver
– Equipment assignment by Driver
Buy Shipment
Driver Pay
Planning • Dynamic Shipment Building
• Polling position
Fleet • Tandem Equipment Assignment
Track & Trace
Assignment – Doubles and Triples
• Substitute Equipment Assignment

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 Implementing Hub & Spoke process flows for Fleet business
Leveraging OTM’s single platform advantage

• Penske’s acquisition of Transfreight required us to enhance our model

• Key functionalities incorporated for Hub & Spoke:

– Utilizing an inter-connected cross dock network
– Executing shipments across multiple days and shared fleet assets for a single or multiple OD Pairs
– Executing an order shared across both private fleet and 3rd party carriers
– Centralizing the management of the shipments from hub locations
– Incorporating brokerage loads to leverage backhaul opportunities

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 Adding 3rd party carrier operations and management
Expanding OTM Fleet’s implementation framework

• Penske’s DCC business model utilizes private fleet assets and 3rd party carriers
• The framework was provisioned to consider the future requirements of the 3rd party carriers
• The introduction of carriers onto our fleet framework required additional complexity and expansion
of OTM’s functionalities
• The updated framework ensures a separation of workflows between private fleet and 3rd party
carriers
• The co-existence of two distinct paths are vital
• Our automated QA processes ensure the successful co-existence of these diversified operations
in one domain

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16
 Key functionalities implemented for 3rd party carrier management

• Automatic carrier selection

• TL & LTL modes
• Tender management and spot rates for expedited loads
• Intra-company tenders
• Transfer of shipments between Penske & 3 rd party carriers
• Co-execution of a shipment by fleet and 3 rd party carriers
• Track & Trace Penske’s trailers used by 3rd party carriers
• Freight settlement
• Fuel surcharge and ETA / Delivery Confirmation Notifications

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 Illustration of co-existing fleet and 3rd party shipment execution
Driver 1 picks empty racks
and delivers back at Pickup A
DCC and returns to DCC

Driver 2 picks up the

3rd party carrier was tendered Order and delivers to
to haul between Hubs final destination
Driver 1
Pickup A picks the Hub A Hub B
shipment
1 and drops 2 3
at Hub
Driver 2 was informed of a
backhaul shipment
Driver 2 picks up
the backhaul DCC
Delivery A
order Pickup B
4 Driver 2 delivers the
Centralized Operational Backhaul order and
Group monitors the end to returns home
end movement of the Delivery B
shipments and assets

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 Penske’s domain structure
• Master Data
Parent • Locations
Domain • Carriers
• Fleet Assets (Driver, Trailer, Power Units)

• Configuration Items:
• Business Automation Agents
Child Domain
• Transactional Data:
• Order Release
• Order Movements
• Buy Shipments  172+ DCC customers
• Carrier Payment Invoice  70+ Carriers
• Driver Work Invoice
• Sell Shipments

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 Roadmap - OTM’s 6.4.x functionalities to leverage

• Migration to 6.4.x
• Leverage Work Bench and Map
related functionalities
• Fleet Aware planning
• Bulk planning with carrier capacity
and commitment constraints
• Usage of bulk planning to determine
carrier selection

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Q&A
Michael Sharp, IT Manager, Penske Logistics
michael.sharp@penske.com
Mobile: +1.330.212.4684

Chirag Patel, Director Product Development

chirag.patel@penske.com
Mobile: +1.216.288.6040

Sanju Sethumadhavan, Manager Advisory

sanju.sethumadhavan@penske.com
Mobile: +1.920.819.2117