Seismic

Commodity Ground Transportation

Pramod Mallina

July 16th 2018

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 Commodity Ground Transportation
Objectives:
• Review Vendor and Commodity Service Mix for 2016 shipments
• Recommend Optimization & Improvement opportunities
• Define leading & lagging KPIs

Given Commercial Assumptions:

Carrier & Mode Cost Category
Asset Carrier Truck Very High
(Dedicated Asset, Special equipment, Single & Team)
Broker Truck (Single & Team) High (10% below market)
Broker IMDL Low
IMC (Std. & Premium) Very Low (Max discount)

Additional Assumptions:
• Single and Standard Truck are same
• Only Asset Carrier has dedicated asset and special equipment
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 2016 Shipment Analysis
By Project By Project Category By Carrier Shipment Summary

Destinations (sized by #shipments)

By Cost Category Seasonality

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 Recommendation
Production Projects (93%) Launch Projects (6%) Test Projects (<1%)

Main Goal Maximize savings, Fast movement of loads White Glove Service for
Sustainability special equipment
Other Goals Low inventory, reliability Cost secondary Heavy equipment moves

Current Mix Single Truck (Broker/Asset) Single Truck, Intermodal Single Truck, Intermodal

Proposed Mix Intermodal(Broker & IMC), Asset & Broker Team Asset Single (Spl. Eqp,
LTL Truck Trucking Heavy Eqp) & Broker Single
Risks with Intermodal less efficient Asset team is most Special, Heavy Equipment
Proposed Mix expensive requirements

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 Production Projects
• Seismic’s projects are 93% production but no Intermodal loads used. So we can increase the share of
Broker Intermodal and IMC. LTL can also be used as an alternative.
– Scenario 1: Move 50-60% of Asset & Broker Truck to Intermodal
– Scenario 2: Move 50-70% of Asset & Broker Truck to LTL
– Scenario 3: Hybrid for Intermodal and LTL

Project Category Carrier & Mode Service Level Current Scenario 1 Scenario 2 Scenario 3
LTL 0% 0% 30% 20%
Asset Carrier Truck Single 21% 10% 10% 0%
Team 2% 0% 0% 0%
Production
LTL 0% 0% 40% 30%
Project
Broker Truck Single 55% 30% 20% 0%
Team 21% 0% 0% 0%
IMC/Broker Intermodal Standard 0% 60% 0% 50%

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 Launch Projects
• Use of IMC can be lowered significantly to meet launch milestones. Focus should be on Team
Trucking for fastest delivery method.
• Proposed Mix : Combination of Asset Team and Broker Team for 80% of loads.

Project Category Carrier & Mode

Service Level Current Proposed
LTL 0% 0%
Asset Carrier Truck Single 20% 10%
Team 2% 40%
Broker IMDL Standard 0% 0%
Launch Project
LTL 0% 0%
Broker Truck Single 53% 10%
Team 4% 40%
IMC Intermodal Standard 20% 0%

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 Testing Projects
• Proposed Mix: IMC to be switched to Asset Single for reliability
• For Special/Heavy equipment: Use Asset Single

Project Category Carrier & Mode

Service Level Current Proposed
LTL 1% 0%
Asset Carrier Truck Single 19% 40%
Team 1% 0%
Testing Project Broker IMDL Standard 1% 0%
Single 51% 50%
Broker Truck
Team 8% 5%
IMC Intermodal Standard 20% 5%

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 KPIs for Operational Excellence
Lagging KPIs: Order fulfilment
– On time delivery: % arrived on time
– Fill Rate: % quantity missed = (Ship qty/Ship qty + Missed qty)*100

Leading KPI: Service mix change based on Seasonality

– YoY/QoQ % change in IMC, Trucking (Broker, Asset)
– Seasonality of loads

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 Thank you

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 Appendix – O/D Pairs

Lanes Sum of Loads

EL PASO , TX LAS VEGAS, NV 8.45%
HOMER, MI VENTURA, CA 4.88%
Ventura , CA LAS VEGAS, NV 4.62%
MARKHAM, ON LAS VEGAS, NV 2.90%
LAWRENCE, KS LAS VEGAS, NV 2.68%
LAS VEGAS, NV VENTURA, CA 2.47%
LAS VEGAS, NV TORRANCE, CA 2.27%
LONG BEACH, CA LAS VEGAS, NV 2.02%
LAS VEGAS, NV TULTITLAN, EM 1.92%
LAS VEGAS, NV COLUMBUS, IN 1.64%
BLISSFIELD, MI VENTURA, CA 1.61%

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 Appendix – Seasonality by Service Mix

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