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COMPANY PROFILE
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2011 Revenue: $2 billion 2011 Net Income: $103 million
NASDAQ: WERN Alliance Carriers: 8,500
Trucks: 7,300 Trailers: 23,165
Premium provider of transportation and logistics services, specializing in Truckload, Intermodal, LTL, Ocean and Air services.
RECOGNIZED LEADER
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2012, 2011, 2010, 2009
THE STRENGTH OF WERNER
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Global, Comprehensiv
e Portfolio
Award-Winning Customer Service
Technology Driven
Customizable Logistics Strategies
Consistent, Credible and Conservative
COMPREHENSIVE SOLUTIONS
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Werner offers complete 3PL supply
chain solutions across all shipping modes
and geographies, from network design
through implementation.
Freight Management
With a network of 7,300 trucks, 8,500 alliance carriers and ocean, air and rail providers, we offer
unsurpassed delivery solutions worldwide.
Freight Movement
Providing door-to-door services for
companies of all sizes and industries as they
compete in today’s global marketplace is what sets us apart.
Global Implementation
Our tools provide customers instant
visibility across their supply chain, which allows them to better
manage their business.
Technological Advantages
THE PATH OF WERNER PROGRESS
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1980• Deregulation
1986• IPO
1992• GPS on all trucks• Dedicated, Regional
and TC fleets formed
1998• Electronic driver
logs (EOBR)
1999• Mexico launch• Canada designated
fleet formed
2003• Brokerage and
Intermodal expansion
2006• Werner Global Logistics
formed• China launch
2007• LH fleet reduction
2009• Safety improvement initiative• Australia launch
2008• Fuel MPG initiative• Balanced portfolio
initiative
1956• Founded by
C.L. Werner
TECHNOLOGY AREAS
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Werner leverages many technological
advances to improve equipment
performance and reduce diesel fuel
consumption.
Equipment / Fuel
Werner has long been the leader in using
technology to ensure compliance and safety within the
federally regulated trucking industry.
Regulation
Trucking may be simple, but Werner's
complex systems provide a competitive
advantage over others in the industry.
Systems
Our tools enable our customers to leverage
our experience and technological
investments to manage their transportation
network.
BI / GIS / Analysis
ENVIRONMENTAL SUSTAINABILITY
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Fuel Efficiency Initiativeso Aerodynamic trucks & trailerso ArrowShield trailer skirt developmento Speed management & driving behavioro Automated tire inflation systemso Computer controlled truck idling and paperless log systemo Weight reduction strategieso LNG / CNG Engineso Continual in-depth testing of the latest fuel saving technologies
EQUIPMENT – ARROWSHIELD
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• Proprietary trailer skirting system
• Internal development and testing more than 12 months
• U.S. Environmental Protection Agency SmartWay®
Transport Partnership verified
• Overall highway efficiency gain of 4 to 5 percent
EQUIPMENT – WEIGHT REDUCTION
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Key items of focus:
• Reducing wheel base length• Single wide based tires• Dead or non-drive rear axles on tractors• Smaller sleepers • Reducing fuel tank size• Aluminum wheels on trailers• Aluminum cross members on trailers• Horizontal exhaust system
Aggressively pursuing weight reduction in our tractors & trailers.
BEHAVIOR – DRIVER TRAINING PROGRAMS
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Areas where driver behavior can impact fuel consumption:
• Equipment maintenance
• Minimizing out-of-route miles
• Implementing proper driving habits:• Speed• Acceleration• Progressive shifting• Hard Break Monitoring
• Eliminating unnecessary truck engine idling
EQUIPMENT – DRIVER COMFORT
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100 percent of fleet is currently equipped with idle reducing technology.
Espar Heater Electric APU
Diesel APU
TIRE STRATEGIES
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• Single wide-based• Automatic tire inflation system
• MPG savings• Tire consumption
EQUIPMENT INITIATIVES
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1. Ultra Low Sulfur Diesel Fuel (ULSD)
2. Lowered idle rpm
3. Advanced lubricant
4. Automatic engine shut-offs
5. Minimized tractor-trailer gap
6. Lighter weight equipment
7. DEF
8. Single drive axle
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9. Trailer boat tails
10. Automated tire inflation
11. Aerodynamic tractor models
12. Stationary fifth wheel
13. Speed reduction
14. Trailer skirting
15. Wide based tires
16. Under Tray System
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WERNER ENTERPRISES’ IMPACT
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Results from fuel saving initiatives:
• 20 consecutive quarters of YOY improvement to mpg
• More than 50 million gallons saved from 2007 to YTD 2012
• More than 560,000 ton reduction in carbon footprint from 2007 to YTD 2012
FUEL MPG IMPROVEMENT
1Q11 2Q11 3Q11 4Q11 1Q12 2Q125.505.605.705.805.906.006.106.206.306.406.506.606.706.806.907.00
6.40
MP
G
Trucks 7,300 7,300
Mi / Truck 495 495
MPG 6.125 6.850
$/G 4.086 4.086
Mi/Day 3,613,500 3,613,500
G/Day 589,959 527,518 62,441
$/Day $ 255,134
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HOS AND EOBR
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HOS impact on shippers Utilization decrease per tractor in the marketDecreased driver wage potentialDecreases capacity thus increases the number of tractors needed to haul the same amount of goods
Overall impact higher transportation costs
In late 2011, the U.S. Court of Appeals for the Seventh Circuit overturned the FMCSA’s proposal that would require carriers that have a 10 percent or higher rate of noncompliance with HOS rules in any single compliance review to put EOBR technology in place to monitor HOS.
The FMCSA announced various changes effective February 2012, with a compliance date of July 2013.
Primary rule change: 34 hour restarts will now need to include two periods between1 a.m. and 5 a.m.
SAFETY PROCESS
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Computer Based Training (CBT)• Specific driver training (computer testing, pictures, video)• Courses cover all aspects of driving, including seasonal planning• Accessible from home or terminals• Will be accessible in trucks with new Qualcomm units
Safety Improvement Training• Safety KPI scorecard• CSA monitors• Corporate training• Constant focus
PAPERLESS
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Paperless OrientationOn-line applicationsWhen you re-apply we recall previous app infoData for all employment forms is collected before arrivalDuring Orientation Electronic Signature Capture Image merge and driver approval
Scott Andersen - Werner Enterprises Professional of the Year 2011 Nebraska Trucking Association September 2011
Saves ½ day of orientation for 300+/- driver hires per week.
DRIVER CONTACT
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Driver Portal• Self service help 24/7• Increased access to information
Text messages• Not while they are driving• Not while they are sleeping
LIGHTWEIGHT SOLUTIONS
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Drive cost out of the supply chain with a Werner Enterprises value differentiator
Project Initiative
• Increase your shipment weight capacity to more than 50,000, thus reducing your number of shipments
• Reduce your carbon footprint without adding cost or complexity
Multiple options for creative solutions
IT STAFFING OVERVIEW
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• Analysis & Information Systems (AIS)• 130 IT Staff• SMART Transportation Management System
Java, Cold-Fusion, Informix• Document Imaging, Portals, Internal Apps
.Net (C#), SQL Server• DBA’s, Analytics, GIS, BI
DB2, SQL Server, .Net, • Help Desk, System Administrators, Analytics
• Management Information Systems (MIS)• 30 IT Staff• IBM AS/400• Controls Asset Functions
METHODOLOGY
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AIS uses the SCRUM methodology for Agile software development.
• User-driven project requests
• 30-day sprints (development cycles)
• Prioritized backlog of to-do items
• Trust users to know what they do for the business
• Quick steps to perform complex tasks
DEVELOPMENT CYCLE
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Waterfall Method
ProjectApproval & Rank Requirements
Identification`
Approve Plan
Functional Test Plan
Code, Unit Test, DocumentSign Off
QA and Systems Test
Deploy to Production
Approve
Scrum Method
ProjectApproval & Rank
Approve
Sign Off Sign Off Sign Off Sign Off Sign OffApprove Plan Approve Plan Approve Plan Approve Plan Approve Plan
Months
Sprints
= Business Involvement = Usable Functionality Released
= Inspect / Adaptive Feedback
INFRASTRUCTURE
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• Two on site data centers, one remote site Disaster recovery data center• Diesel generators and fuel• IBM DS8800 Storage• IBM Metro Global Mirror
• Trends:• Redhat Linux use growing• Virtualization across several operating systems
• 20-60 hosts per server
• Direct data line to China
• AVAYA VOIP Phones
EDI
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• 3 Million EDI transactions per month
• Converting onto Sterling International
• Historically batch processing was common• Now Java Message Service (JMS) Queues and Web Services make it real-time
• High Availability• Off-site location running as a production instance• HQ data centers and offsite balance workload
• E-mail EDI enables carriers without EDI to send EDI status updates via the web• Can be done on a smart phone
EVENT NOTIFICATION
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• Shipment booked• Booking confirmed• In gated full at origin/late gate• Shipment sailed/late sailing• Documents sent• Arrived port/late arrival• U.S. Customs cleared• U.S. Customs exam hold/release• U.S. OGA exam hold/release• Available at destination/late
availability• Delivered/late delivery
Transit Exception Notifications• Late gate• Late sailing• Late arrival• Late availability• Late delivery
OPTIMIZATION
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• Java backend ColdFusion user interface• More than 1,000 mileage calls per second• Production rate structure• Driver scheduling• Modified Vehicle Routing Problem (VRP)
• Genetic Algorithm's
• Chipper (continuous solution)• Continuous Moves Solver• John Henry’s Hammer• Timeline
IMAGING
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Werner Enterprises Imaging System (WEIS)
• Internally developed imaging system
• 11 departments fully automated
• 45,000 new images per day
• Over 220 million images in DB2
• Retrieval time is less than 1 second
• Average image size is 35K (200dpi Tiff G4 image)
Savings
• A single 4 drawer file cabinet = 50,000 pages
• 4,400 paper file cabinets worth of images
MOBILE
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• Dedicated mobile development team
• Internal iPad Executive KPI App• Werner News App (Coming Soon!)
• Phone Gap• Responsive Design• Challenges with screen size, resolution, browsers…
• Werner is not BYOD
BUSINESS INTELLIGENCE
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• Enterprise Data warehouse DB2• SQL Server• SQL Server Reporting Services• SQL Server Analysis Services• Data Cubes
• 10 years ago reporting was monthly in order to support a pat on the back, bonus, or need to improve.
• 5 years ago weekly reports were the standard• Now reporting needs to be real time
• Users also like self service• Visualization is also key to alerting users
GIS
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Team4 Developers (2 US, 2 China)
SoftwareESRI ServerESRI DesktopUsed Google for a short trial
ImpactGeocode every shipment recordCustomer Maps & AnalysisRoad closure event responseiMap 2.0 enterprise application
FREIGHT VISIBILITY
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CURRENT TRUCK LOCATIONS
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FUTURE TRUCK LOCATIONS
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ROUTE VISIBILITY
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DETAILED INFORMATION
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ALERTS & ACTIONS
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Real time alerts can be thrown for a variety of reasons:
Truck not moving when we think it should
Load may be delayed
Truck Out-of-Route
Truck breakdown
Split location coordination
Truck due for preventative maintenance
Actions that could be preformed within the map:
Message driver
Assign load to truck
Assign vendor to breakdown
Message shipper and consignees
WHAT’S NEXT
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New user interface
Keyboard Shortcuts
Further integration with
legacy systems
User Profiles
Search History
Saved map state
Embedded documentation and training videos
DEDICATED SERVICES
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• Supply Chain Analysis & Optimization• Optimization Performance Monitoring & Tuning• Continuous Process Improvement • On-Site Customer Analysis• Rapid Response• Special Events• Site Selection• GIS Maps
Analysis and Design Team
• Backhaul Team• Trainer Teams• Slip Seats• Pod Drivers 3 Trucks : 4 Drivers
Continuous Improvement
THE ROI IN SUPPLY CHAIN ENGINEERING
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• Mode Optimization: 3-6%
• Load Optimization: 8-15%
(LTL to multi-stop or pool consolidation)
• Continuous Moves: 2-5%
• Vendor/Supplier Compliance: 6-15 %
(inbound management)
• Transportation Staffing Overhead: 10-30% depending on factors relating to centralization and degree of current automation.
CASE STUDY DOLLAR GENERAL
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Scope of Work
Werner Enterprises operates a Dedicated fleet with 600 trucks servicing 8 facilities. The fleet handles inbound and outbound shipments. We deliver to more than 7,000 stores per week with 99 percent on-time service.Werner Enterprises’ TMS manages the shipment execution for Dollar General’s carrier base, including storing all customer delivery data for Dollar General’s entire network.
Challenges
Surge demands of the small box retailer and the cost pressure of the recession.
Solutions
Werner Enterprises provides additional support for seasonal surges, ranging from 40 to 120 trucks on short notice - usually in less than 24 hours.Werner designed and implemented Slip Seat and Trainer Team solutions, reducing Dollar General’s cost by more than $10 million annually.
2011 Annual Revenue = $125.5 millionLength of relationship (Dedicated): 1994 - present
CASE STUDY ANHEUSER-BUSCH
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Scope of Work
Werner Enterprises operates a Dedicated fleet of 150 trucks and 36 person loading/spotting team servicing the Columbus, Ohio brewery.
Challenges
Replace an underperforming, long-time incumbent at Anheuser-Busch’s second largest brewery in conjunction with the design and purchase of specialized equipment.
Solutions
Werner Enterprises worked closely with the equipment manufacturers and Anheuser-Busch to design a lightweight tractor and trailer solution. Werner Enterprises seamlessly executed a three phase ramp-up encompassing the delivery of 150 new tractors and 500 new trailers.
Continuous Improvement: We increased the backhaul contribution by more than 90 percent and improved driver productivity by more than 13 percent, resulting in more than $1 million in annual savings.
2010 Annual Revenue = $45 millionLength of relationship (Dedicated): 2001 - present
CASE STUDY OFFICE MAX
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Scope of Work
Dedicated provider in OfficeMax’s three distribution centers:
Hazelton, PA McCalla, AL
Las Vegas, NV
Challenges
Solutions
2011 Annual Revenue = $36.3 millionLength of relationship (Dedicated): 2001 - present
For more information visit: www.werner.com
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Thank You
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