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2014 ANNUAL CONFERENCE & EXHIBITION Planning Your Next IT & Finance Move June 16-18 Lincolnshire Marriott Resort Lincolnshire, IL New Transportation Paradigm Demands Carriers Adopt Supply Chain Mentality

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ATA Antitrust Statement All ATA meetings are held in strict compliance with applicable state and federal laws and ATAs antitrust policies that prohibit the exchange of information among competitors regarding matters pertaining to price, refusals to deal, markets division, tying relationships and other topics which might infringe upon antitrust regulations. No such exchange or discussion will be tolerated during this meeting. As an attendee it is your duty to avoid improper conversations.

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Thanks To Our Sponsors! Gold Sponsor Welcome Reception Sponsor

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Thanks To Our Sponsors! Silver Sponsors Walk Around Luncheon Sponsor Banquet Pre-Dinner Reception Sponsor General Luncheon Sponsor

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Thanks To Our Sponsors! Bronze Sponsors Registration Desk SponsorCoffee Break Sponsor Continental Breakfast Sponsor

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Speakers Ben Cubitt, Transplace, Inc. Erika Matias-Goodman, US Gypsum Corp. Andy Miller, TMW Systems Moderator Carl Kirk, American Trucking Associations

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Ben Cubitt Transplace

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8 Transplace 2014. All Contents confidential. Transplace has successfully built a critical mass of supply and demand in the North American transportation marketplace across all modes and regions. Domestic & global scope North American customer base Global shipment flows Critical mass of demand 15 Million orders 48 Million transactions annually 4 Million shipments annually $5+ Billion managed spend Critical mass of supply Thousands of carriers under contract Multimodal network Business process excellence and Lean Six Sigma execution Inbound and Outbound shipment execution excellence Focus on granular information on shipper side Focus on carrier communications excellence on the capacity side Transplace Size and Scale

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9 Transplace 2014. All Contents confidential. Technology and Service Offerings LOGISTICS CONSULTING SERVICES Benchmarking Transportation Procurement Network Analysis & Design Professional Services Consulting Joint Lean Six Sigma Projects $1.5 BILLION TOTAL SPEND MANAGED LEAD LOGISTICS PROVIDER (LLP) Full Transportation Outsourcing Transportation Provider Contracting Shipment Control Centers Inbound Freight Management Freight Bill Audit & Payment Co-Loading Innovation $3.0 BILLION TOTAL SPEND MANAGED CAPACITY PROVIDER Single Source Core, Committed and Primary Brokerage Spot Dedicated Fleet $550 MILLION TOTAL SPEND MANAGED TECHNOLOGY On-Demand TMS Optimization Highly Configurable BI, Reporting and Analytics Rapid Implementation & Integration Documentation Creation & Management $320 MILLION TOTAL SPEND MANAGED TECHNOLOGY SOLUTION MANAGEMENT SOLUTION Basic Comprehensive Basic Comprehensive

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Performance Scorecards State of the Industry Freight metrics and KPIs are now on the C-Team (especially the CFO) agenda. Erratic fuel costs (and FSC impact on EPS), weather events (Hurricane Katrina to Polar Vortex 2014), and emergence of Supply Chain profession. Shippers use TMS systems and 3PL relationships to generate BI reports. Rarely shared with carrier partners. Shippers increasingly generating monthly Performance Scorecards shared with Core Carriers Many carriers generate shipper scorecards, generally not shared with shippers Shippers respond to data and fact based selling. TL carriers do not share industry trend / cost data as well as Rail / IM / LTL carriers. Information sharing and a more comprehensive network score card could help shippers and carriers drive network efficiency.

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Internal KPI Benchmarking KPIs begin at a site or carrier level, then shippers want to benchmark performance across the network by site, by carrier classification, etc.

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External KPI Benchmarking 3PLs can also provide collaborative benchmarks across customers, by industry vertical, etc..

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Carrier Merit or Award Programs Carrier Performance against established and communicated criteria are key inputs to carrier recognition programs Carrier of the Year, Platinum carrier, etc.

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Erika Matias-Goodman US Gypsum Corp.

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USG PROFILE Focused on Building Products and Specialty Distribution Leading brands, product innovation Excellent customer base Strong manufacturing and distribution network Expanding into global markets

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LEADING INDUSTRY POSITIONS Source: USG estimates and SEC filings #1 Market Share of Gypsum Wallboard in N.A. USG 28% USG 32% #2 Market Share of U.S. Ceilings Systems USG 11% #1 Market Share of Gypsum Wallboard Distribution in U.S.

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17 Transportation Operations - Strategy USG Plan to Win - Strengthen the Core - Diversify Earnings - Differentiate through Innovation Key MeasuresKey ObjectivesKey Strategies Strengthen the Core: Lowest cost procurement strengthens the core. Freight Cost vs. Budget Freight Cost vs. Last Year Achieve lowest competitive cost that meets USG service, safety, and capacity needs. Annual full TL RFP. Manage Fuel Surcharge. Manage Accessorial Charges. Manage payload utilization. Strengthen the Core: Provide industry leading delivery service and solutions. On-Time Delivery Customer Satisfaction Provide industry leading On Time Delivery experience. Exceed Customers service requirements. Measure Carrier performance via fact based score carding. Partner with high service, growing carriers. Differentiate through Innovation: Capacity during tight supply can be a competitive advantage. Tender Acceptance % % Uncovered Shipments Maintain available capacity throughout the business cycle. Be recognized as a Preferred Shipper by key Carriers. Leverage USG spend to achieve Tier 1 Customer Status. Proactively develop multisource strategies and support Carrier networks. Develop Driver Friendly culture.

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USG Carrier Performance Ranking USG scorecard ranks and classifies carrier performance Gold, Silver, Bronze. Data driven, Performance KPIs, color coding for easy visual management.

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19 USG Carrier Scorecard USG provides carriers data on their volume and performance.

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20 USG Carrier Scorecard USG scorecard focuses on all areas of performance service, claims.

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21 USG Carrier Scorecard USG scorecard ties back to performance levels Gold, Silver, Bronze.

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USG Carrier of the Year Criteria Carrier maintained 4 consecutive quarters of consistent certification on USGs top 30 Scorecard. (Mandatory) Carrier hauled at least 2500 loads for USG during the year. Carrier provided service from multiple USG shipping locations. (Mandatory) Carrier meets annual On-Time Delivery goal for current year (96% 2014). (Mandatory) Carrier is EPA SmartWay certified. (Mandatory) Carrier settled 100% of their claims within 45 days during the year. (Mandatory) 80% of Flatbed trailers used to service USG are 102 wide and able to haul 49,000 pounds. Carrier invests in technology to allow real-time information, e.g. EDI Capable (ability to send unfiltered data) Electronic On-Board Recorders (EOBR) Geo Fencing

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Performance Reports TMS Carrier Portal USG carriers have the ability to log into Transplace TMS portal They can do this as often as desired (monthly, weekly, daily) Three reports are available to help carriers monitor and optimize their performance Status Updates Compliance Shows how many of the required check calls have been entered and how timely they were submitted Tender Acceptance Shows the date/time a shipment is tendered, the response date/time by the carrier to accept or reject the tender, and the time difference between the two Accept/Reject Detail Shows the following details of any loads that werent accepted by the carrier: Origin/Destination, Pickup Date, and Transplace transaction number

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Carrier Shipper Scorecards Carriers have shipper scorecards but these are generally for internal use only and not shared with the shipper.

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Preferred Shipper Program Carriers survey responses and discussions consistently ranked economics and driver productivity as the keys to preferred shipper status

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Are Network Scorecards in our future? Network efficiency and driver productivity (pay) is becoming the driving concern and focus for carriers. Carriers will reward efficient shippers with capacity. Keep the trucks and drivers moving. 24/7 freight is very desirable No touch, efficient freight Keeping drivers becoming more important than finding loads. Treat drivers with respect and as a valuable network asset. Understand what impacts driver pay (miles per week). Plan tender times, pick-up and delivery times to maximize miles per day. Get drivers loaded and unloaded in target times. Carriers want partners at every level Pre-bid discussion and non-bid strategic lanes Want more flexibility pick-up / delivery windows, equipment, etc Less rigid tender times, increase late day / weekend acceptance

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Where is the market headed Will the economy shift into a higher gear with negative impacts on capacity? Will the leverage shift from shippers to carriers? How fast? How strong? Will shippers respond to carrier requests for changes in accessorials or modifications to drive network efficiency? Will changes be collaborative or carrier mandates? Can carriers negotiate changes with shippers - Some? Most? All? Will carriers have to pursue indirect actions (swap up shippers / lanes) Will industry driver shortage crisis force more collaborative network optimization?

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Andy Miller TMW Systems

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TMW Systems is best- known for transportation operations software Automates the workflow of the entire transportation process from order to cash Drives business execution, efficiency and profitability Facilitates visibility and transparency across all organizational departments Management Human Resources Accounting Drivers/ Carriers Shipment Planning Customer Service Customer PurchasingPayroll Operations Maintenance Dispatch 5

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Omni-Channelwhat does it mean to the consumer? Seamless customer experience across all touch points with a retailer Shop and purchase goods online, in a store, from a catalog or a smartphone Be able to pick up or have goods delivered anywhere Ability to easily return good anywhere High expectations are set across all retailers

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Omni-Channelwhat does it mean to the retailer? Tasked with offering exceptional flexibility and service to match that of leading retailers Provide on the fly visibility to product availability for consumers Provide multiple shipping and delivery options Challenges with satisfying consumer demand

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Omni-Channelwhat does it mean to Carriers and Logistics Companies? Carriers must be willing to adapt to the changing procurement arrangements established by the retailer Omni-Channel retailers utilize a network of distribution channels The fixed environment is now becoming much more dynamic Carriers can expect retailers to continually re-evaluate their distribution network

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Omni-Channelwhat does it mean for Carriers and Logistics Companies? Visibility to orders and the parameters around each order are imperative Where are the orders coming from? What day and time are goods to be delivered?

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Omni-Channelwhat does it mean for Carriers and Logistics Companies? Adaptive Freight Rate Pricing Exceptional service doesnt come with a small price tag Carriers and Logistics companies are adapting complex costing models Retailers are focusing on network optimization

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Omni-Channelwhat does it mean for Carriers and Logistics Companies? Primary challenges faced Offering higher service levels typically underutilizes capacity Requires more resources in an environment that already has a driver shortage Speed of delivery is imperative, a smaller distribution footprint is typically a requirement to provide cross-dock operations closer to customers

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Omni-Channelwhat does it mean for Carriers and Logistics Companies? Last Mile Delivery is now becoming more of a focus than ever High consumer expectations have set the bar amongst retailers Retailers are offering multiple delivery options to best suit the needs of the consumer High Service standards are not only labor intensive, but also cause Carriers and Logistics Companies to operate less efficiently when compared to conventional distribution models

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TMW Systemshow are we equipping customers for the Omni-Channel Sophisticated Planning Requirements. Strict Appointment and/or Delivery Windows Special Equipment Requirements Driver Skillsets, shifts, and work rules Mixed fleets with varying truck Capacities

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Emerging Markets with the Omni-Channel Retail Home Delivery Business Requirements Next day for traditional Online orders Need for same day delivery rapidly growing Coordination between Inbound product availability and outbound routes Planning Challenges Customer Volume and Locations change daily 80-150 stops per route Accurate driving times are crucial for scheduling

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Complexities of Serving the Omni-Channel A small example: 15 trucks / 15 stops each 1,800 possible combinations to think about and manage Its not just point A to point B, but rather point A to every other possible stop that could go with it!

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What Does the Future of Omni-Channel Entail?

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Thank You Questions?