Supply Chain Solutions

FIU BusinessInter-American Supply Chain Forum

James W. MooreVice President,

Supply Chain ExcellenceRyder Supply Chain

Solutions

March 16, 2012

Proprietary and Confidential |

Company Overview and Solutions

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Proprietary and Confidential |

CORPORATE OVERVIEW

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Since its founding in 1933, Ryder has become a leading provider of integrated logistics & transportation solutions. We deliver outstanding functional execution and proactive solutions built from deep expertise in key industry verticals, including retail and consumer goods.

2011 Revenue $6.05 Billion

Supply Chain Solutions Division $1.61 Billion (36%)

Fleet Management Solutions $3.84 Billion (64%)

2011 Net Earnings $169.8 Million

Employees 27,500

Fortune 500 Rank [NYSE : R] 437

Distribution Facilities Managed / Sq Ft 235+ / 30+ Million sq ft

SCS Customer Accounts 480

Fleet Equipment 169,900

Clients Worldwide 15,000+

Headquarters Miami

Canada Toronto

Asia Shanghai

Mexico Mexico City

Other London

Freight Under Management* $4.2 Billion

Carriers Under Contract 1,700*Ryder’s 2010 revenue including the acquisition of Scully and TLC is $5.54 Billion.

2010 Revenue $5.14 Billion*

Supply Chain Solutions Division $1.74 Billion (34%)

Fleet Management Solutions $3.40 Billion (66%)

2010 Net Earnings $118.2 Million

Employees 29,000

Fortune 500 Rank [NYSE : R] 437

Dedicated Fleet Locations 700+

Distribution Facilities / Sq Ft 235+ / 30+ M sq f t

Fleet Equipment 150,357

Fleet Maintenance Shops 800+

Clients Worldwide 15,000+

Headquarters Miami

Freight Under Management $4.3 Billion

Carriers Under Contract 1,700

Proprietary and Confidential |

CORPORATE OVERVIEW MEXICO

Since its founding in 1994, Ryder has become a leading provider of integrated logistics & transportation solutions in the

Mexican market. Our customer’s recognize us for our outstanding functional execution and proactive solutions built

from deep expertise in key industry verticals, including automotive, retail, high-tech and consumer goods.

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2010 Revenue ~ $165

Million

Ryder Mexico HQMexico City

and Miami FL.

Ryder Mexico Regional Offices

Monterrey,

Guadalajara,

Saltillo.

Employees ~1,900

Ryder Operational locations 16

Customer’s locations (operated by Ryder) 18

Clients Mexico 87

Ryder Mexico

Ryder Monterrey

Ryder Guadalajara

Proprietary and Confidential |

CORE COMPETENCES

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INTEGRATED

» Control Tower for supply chain visibility

» Solutions Engineering

» Strategic Consulting/Decision Support

» Network Modeling& Optimization

» Total Landed Cost

» Origin/Destination Services

WAREHOUSING VALUE ADDED SERVICESTRANSPORTATION

» Inbound Materials

Management

» Vendor Managed

Inventory (VMI)

» Order Fulfillment

» Multiclient Facilities

» Cross Dock operations

» Reverse Logistics

» Vendor & Retail Compliance

» Retail & Product

Configuration

» Promotional Display

Construction

» Product Customization

» Kitting, Packaging &

Assembly

» Global Transportation

Management

» Dedicated Contract

Carriage

» Shipment Planning &

Execution

» Freight Procurement &

Contract Management

» Cross border network

» Network Optimization Models» Inventory & Shipment Visibility Tools IT SOLUTIONS

Discrete Services

Integrated Logistics Management

Demand Driven Supply Chain

Warehouse Management

Centralize disparate activities across the supply chain

Facilitate Inventory Tracking & Visibility

Provide dedicated resources to support Continuous Improvement & Network Optimization

Enable end-to-end visibility across geographies, providers, and nodes along the supply chain

Centralize demand data to effectively position inventory, plan manufacturing capacity and execute orders

Provide real-time, network-wide data to facilitate continuous improvements and enhancements

Transportation Management

Functionality

Valu

e

Drive Savings, compliance, and service within a network

Optimize and effectively manage planned & dynamic environments

Facilitate collaboration & visibility across the supply chain

Suppliers

Manufacturing

Customers

Logistics Optimization

Center (I/B & O/B)

Suppliers

Manufacturing

Customers

Logistics Optimization

Center (I/B & O/B)

Process and ship orders efficiently

Manage & Report on Performance

Perform engineering analysis to optimize services & reduce costs

Discrete Services

Integrated Logistics Management

Demand Driven Supply Chain

Warehouse Management

Centralize disparate activities across the supply chain

Facilitate Inventory Tracking & Visibility

Provide dedicated resources to support Continuous Improvement & Network Optimization

Enable end-to-end visibility across geographies, providers, and nodes along the supply chain

Centralize demand data to effectively position inventory, plan manufacturing capacity and execute orders

Provide real-time, network-wide data to facilitate continuous improvements and enhancements

Transportation Management

Functionality

Val

ue

Drive Savings, compliance, and service within a network

Optimize and effectively manage planned & dynamic environments

Facilitate collaboration & visibility across the supply chain

Suppliers

Manufacturing

Customers

Logistics Optimization

Center (I/B & O/B)

Suppliers

Manufacturing

Customers

Logistics Optimization

Center (I/B & O/B)

Process and ship orders efficiently

Manage & Report on Performance

Perform engineering analysis to optimize services & reduce costs

Ryder’s asset-light philosophy allows us to design, implement and operate complex, high-value supply chains for our

clients around the world. This approach is based upon a flexible, responsive and customer-focused organization

consisting of world-class people, processes and technology.

» WH & TM Systems

Proprietary and Confidential |

Demand Driven Supply Chains and Ryder’s Control Tower Solution

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Proprietary and Confidential |

DEMAND DRIVEN SUPPLY CHAINS: LSP ROLE

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The challenge of DDSC is seamless visibility—no discontinuities

Logistics Service Providers are integral in the flow of information, product and finance in a Demand Driven Supply Chain

Vendors Retailers

Suppliers Manufacturers

Logistics Service Provider

Market

Proprietary and Confidential |

CONTROL TOWERS FOR VISIBILITY: MARRY PHYSICAL AND VIRTUAL FLOWS

Physical Event

Virtual Event

Plan for Every Product Release & Ship Movement Delivery

TL, CL

LTL, LCLTier 1

Plan for Every Product Release & Ship Movement Delivery

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Proprietary and Confidential |

THE GOAL: RESPOND TO POS FROM THE SHELF

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Control Tower

Design the Flow Execute the Flow

"Sense the Shelf" "Supply the Shelf"

Proprietary and Confidential |

THE LSP CHALLENGE: ONE VIEW; ALL EVENTS; FOR ALL PARTIES

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TDCC830

862

BOL

SO

Manifest

Receipt

PL

Receipt

FB

Manifest

GoalCurrent State

Proprietary and Confidential |

THE LSP SOLUTION: CONTROL TOWER—ONE VIEW; ALL EVENTS; FOR ALL PARTIES

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Vendors Retailers

Suppliers Manufacturers

Proprietary and Confidential |

Mexico Cross Border & Control Tower Capabilities

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Proprietary and Confidential |

CROSS BORDER CAPABILITIES

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Ryder is one of the largest managers of Mexico Cross Border services.

Ryder has dedicated teams focused solely on planning and executing the

fastest, safest and most secure border crossing process on a 24 x 7

operation.

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Infrastructure

» ~156,000 cross border shipments in 2010.

» Integrated or stand alone services.

» Common and Dedicated Cross docks.

» Equipment maintenance and storage.

» Secured trailer yards.

» Management teams on both side of the border.

COORDINATION

» Liaison with US and

Mexican carriers,

customer

representatives and

customs brokers.

» Direct trailer

shipments from

Mexico to US or US to

Mexico.

» Coordinates all door

to door activities

including the handling

of all customs

brokerage

transactions.

CUSTOMS

» Dedicated US and

Mexican brokers to

provide full Customs

Brokerage services.

» Interfaces with the

Customer’s brokerage

system to provide all

data required for

customs processing.

» Manage Forwarding

Services.

» Consolidate &

deconsolidate

products.

» Drayage services.

» Dedicated Yard

facilities.

» Yard management

systems that allow

Ryder to track the

location of trailers

within the network.

» Cross dock facilities

across the border for

material going into

Mexico from US and

material going into US

from Mexico.

OPERATIONS

Tijuana

El Paso

Laredo1,200 per week

700 per week

800 per week

Tijuana

El Paso

Laredo1,200 per week

700 per week

800 per week

Security Program: Prevention & Response• Proven lead time reduction C-TPAT, FAST lane.• Quantitative Success Rate 99.5% incident free• Security Programs CCTV, guards, drug-sniffing dogs• Industry-leading Benchmarks C-TPAT, BASC, TAPA

Proprietary and Confidential |

CONTROL TOWER CAPABILITIES

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OMC Operational Management Center- Nuevo Laredo- Mexico City- Guadalajara

The OMC Operational Management Center is a shared solution center providing the flexibility to deliver a customized

solution that meets our client’s requirements. Ryder’s OMC is a key component in our Transportation solution portfolio

value proposition – providing strategic network design through optimized order fulfillment and flawless shipment

planning and execution.

Tier 1

OptimizationTender & ShipMovementDelivery

PlanProcureExecuteImprove

Tier 1 Automotive CPG

Proprietary and Confidential |

1 4

1

1

2

1

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MEXICO INFRASTRUCTURE

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Area: 42,175 m2

Area: 37,770 m2

GDL: Ryder III

MEX: Carrizal

Laredo: Xdock + Xborder

MTY: Kalos

MTY: Diamante

Nuevo Laredo: YardNuevo Laredo: Control Tower

Area: 4,106 m2

Area: 20,467 m2

Yard Area: 28,000 m2

Area: 5,760 m2 Yard 6,690 M2

MTY: Stiva

Area: 34,123 m2

Yard Area: 10,000 m2

Tijuana: Cross Border

Yard Area: 5,000 m2Cd. Juarez: Yard

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SLP: Ryder ASL

Area: 20,475 m2

Multi-client Facilities

Benefits: Flexibility, economies of scale and complementary seasons that a dedicated facility would be unable to achieve. Allows customer to focus on its core business.

79% Industry Base

70% Urban Population

80% Commerce

Ramos: Ryder ASL

Area: 20,304 m2

Proprietary and Confidential |

Ryder Mexico Locations and Customers (sample)

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WH space221,159 m2

Yard space306,482 m2

Total Space 527,641 m2

WH space221,159 m2

Yard space306,482 m2

Total Space 527,641 m2

Manages approx. 3,000 border crossings each week between Mexico

and US.

MEXICO CUSTOMER BASE

Proprietary and Confidential |

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CONSUMER GOODS CUSTOMER: LEAD TIME REDUCTION OF 55%

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Ryder Solution provides Control Tower & Visibility through planning, optimization, execution, visibility, and reporting enabling an adaptive, responsive supply network reducing total logistics inventory

11 days

Impact to Northbound Crossborder Lead Time

5 days6 days reduction in

inventory

Proprietary and Confidential |

Thank You !!

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Please visit www.ryder.com

Proprietary and Confidential |

Appendix

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Proprietary and Confidential |

Ryder’s Supply Chain Management System includes Warehouse Management System WMS, Transportation Management

System RTMS, Yard Management System YMS and Vehicle Management System VMS for trailer yard and vehicle yard

administration respectively and Control Tower Application CTA for visibility through the entire supply chain. These systems

are able to provide control, reliability, visibility and confidence to our customers that their products are best handled

and delivered to their Customers.

INFORMATION TECHNOLOGY STRATEGY

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Integrated – centralized solution

Infrastructure in support of applications, databases, WAN/Internet, EDI Integration

ERP, Legacy, etc

Customer’s Systems Supply Chain Mgmt System Web based access

Customer, Ryder, 3rd Party

Database

WEBApplication

• IB / Receipts• Put away, Returns, etc• Inventory Control, RF• Order-Delivery, Picking, Dispatch, POD / OB• Product Traceability

EXECUTION INFRASTRUCTUREINTEGRATIONTO CUSTOMER’SEDI WORKFLOW

INTERNET

Delivery Orders,ASNs

Goods Receipts, Goods Issue,

POD, etc

Proprietary and Confidential |

WAREHOUSING CAPABILITIES

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Ryder Mexico has provided supply chain and warehouse solutions to major Automotive, Industrial, High-Tech and

Retail Appliance Customers since 1994. Services include warehousing management and outstanding execution.

OPERATIONAL ENVIRONMENT

» Multi-client and dedicated facilities with more than 220,000

m2.

» Ryder location yard space with more than 306,000 m2.

» Best warehousing practices.

» Cross docking operations.

» Pick, pack and ship through various channels.

» Ryder WMS.

» KPI tracking and reporting.

» Vendor Management Inventory VMI.

» Reverse Logistics.

Value Added Services

» Kitting and packaging.

» Retail pre-distribution per store.

» Bundling.

» Inspection and Private & Branded Label Products

» Other as required by customers.

Proprietary and Confidential |

TRANSPORTATION CAPABILITIES

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Through a carefully executed selection process Ryder has selected several Carrier Partners in the market to whom we

lease Ryder owned trucks to provide us with dedicated transportation services. In addition, Ryder Mexico has over 100

mexican carriers under contract providing services to Ryder on a daily basis. Ryder Mexico provides its customers a

unique and effective transportation management system through access to dedicated and transactional transportation

managed seamlessly by Ryder Mexico. This system works like a Control Tower for all movements of Ryder.

SERVICES

» Dedicated and Transactional Transportation

» Onsite Fleet Management, Dispatch and Administration

» Shipment Planning and Execution (SPE)

» Freight Bill Audit and Payment (FBAP)

PROCESS SYSTEMS

» Contract Administration

» Rate Management

» Claims Management

» POD Management

» Performance Metrics

» Proven Safety Program

» Continuous Improvement

» Training and Compliance

» Transportation Management System RTMS

» Web Visibility

» GPS Tracking

» Electronic Dispatch

» Yard view

» Optimization Modeling

» Integration via EDI

» Onboard Communications

MAINTENANCE

» 7 Maintenance workshops and a fleet of mobile maintenance units.

» Programmed Preventative and Corrective Maintenance

Proprietary and Confidential |

RAIL SWITCHING CAPABILITIES

Another capability in Ryder Mexico is the Rail Switching Operations. Currently,

this service is performed for finished cars in Silao and Ramos Arizpe. USA,

Canada and Middle East destination units, are loaded into Multilevel Railcars.

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OPERATION ENVIRONMENT

» Rail Loading.

» Rail Switching.

» Ryder’s Vehicle Management System (Vintelligent) thru RF scanning.

» Vintelligent updates customer’s system (VTIMS) in an automated process

via EDI.

» Safety is the overriding priority.

» VAS services:

» Finished Vehicles Inspection, Receiving and Driving away according to Ramp Codes Destinations.

» Wrap guard and wax coating to avoid rust damage for thru-ocean destinations

» Laser engrave.

Infrastructure

» 5 Ryder Locomotives (2 in Silao and 3 in Ramos Arizpe)

» Up to 300 railcars in inventory are managed at Silao, 205 at Ramos Arizpe.

Proprietary and Confidential |

At the multi-client facilities:

• Local area network services and computer room.

• Telecommunications to access Ryder’s Data Center with backup link.

• 60 to 90 days backup on hard disk for video surveillance.

At the Data Center (centralized off-site location):

• Data center infrastructure with redundant components.

• Daily database backups.

• Database replica to alternate Data Center.

• Biometric access control to the facility.

• Fire Protection System: Fire hydrant and fire

extinguisher. Mexican regulation and NFPA

Compliant (National Fire Protection Association).

• Emergency power plant.

• Medical service.

• CCTV Digital System.

• Electronic card access control to the high value

areas.

Internal ExternalCentral Monitoring

Video Surveillance / Access Controls

High Value Areas

Infrastructure and Systems Secure Data Processes

SECURITY INFRASTRUCTURE

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Ryder’s Multi-client facilities are equipped with the most innovative and proven security technologies, such as internal

and external CCTV, High Value Areas surveillance and Central Monitoring.