Freight Market Intelligence

Freight Market Intelligence A Better Way to Control Transportation Costs March 29, 2012 CHAINalytics

Today s Speakers Rob Hair Sr. Director, Global Transportation Processes & Systems Rodney Noble Sr. Director, Carrier Operations & Procurement CHAINalytics Gary Girotti Vice President, Transportation Practice Fabrizio Brasca Vice President, Global Logistics Moderator Michael Levans Group Editorial Director, Supply Chain Group 2

Agenda Introduction to Chainalytics Freight Market Intelligence Consortium Overview of PepsiCo s Transportation Procurement Model How Freight Market Intelligence Enhances PepsiCo s Procurement Process Discussion 3

Who is Chainalytics? 2001 2002 2003 2004 2005 2006 2007 2008 Our Genesis Market Lacked Proven, Focused Supply Chain Analytics Competence Best Analytical Minds in Supply Chain 1 st Named to 100 Great Supply Chain Partners List by SupplyChainBrain; Recognized for 8 Years Running Launch of Freight Market Intelligence Consortium (FMIC) Mike Kilgore named a Pro to Know by Supply & Demand Chain Executive; Jeff Metersky (2006), Gary Girotti (2007), Steve Ellet (2011), Irv Grossman (2011), and Kevin Zweier (2012) also named Pros to Know Established Chainalytics India Private Limited in Bangalore FMIC named Top Supply Chain Innovation by Supply & Demand Chain Executive Named to ARC Advisory s 10 Coolest Supply Chain Boutiques TODAY More than 180 Clients 14 of AMR s Top 25 Supply Chains 5 of Top 10 Retailers 7 of Top 10 Food & Beverage Manufacturers 5 of Top 10 CPG Companies Transportation Practice Best Practice & System Assessment Mode Analysis vs. Procurement 2009 2010 2011 2012 Launch of Sales & Operations Variability Consortium (S&OVC) Strategic Growth via Mergers & Acquisitions o Supply Chain Operations (Chainnovations) o Packaging Optimization (Adalis Packaging Solutions Group) Business Intelligence Freight Market Intelligence Consortium Membership-Based Consortium for All Major Modes of Transportation (TL, LTL, Ocean, and Air) $19B Annual Freight Spend from 100+ Customers in All Major Industry Sectors Robust Technology 4

Freight Market Intelligence Consortium Truckload Member Demographics Model Statistics of January 2012 Release $15B in Transportation Spend 12M Truck Loads 91 Model Participants with TL Spend from $10M to $500M+ Includes USA, Canada and In and Out of Mexico 7 Models (Dry Van, Temperature- Controlled, Intermodal, Flatbed, 3 Short Haul) Equivalent to Approximately 7% of Total North American For-Hire Truckload Market 5

Sample Market Insights: Lane Specific Analysis and Market Trends Over Time Origin City Origin State Origin ZIP Destination City Dest State Dest ZIP Distance (miles) Annual Volume Average Reported CPL Reported Annual Linehaul Cost Fuel Surcharge Paid by Company Fuel Surcharge Paid by Market Fuel Surcharge Difference Total CPL paid by Company (Avg. Reported CPL + Fuel Surcharge) Estimated CPL (Including Fuel Surcharge) Difference CPL (Including Fuel Surcharge) Difference Percent (Including Fuel Surcharge) CA MD 2,739 207 $ 3,692 $ 764,333 $ 1,178 $ 1,244 $ (66) $ 4,870 $ 5,240 $ (370) -7.06% BELOW CA OH 2,432 90 $ 2,569 $ 231,193 $ 1,046 $ 1,104 $ (58) $ 3,615 $ 4,432 $ (818) -18.45% BELOW CA OH 2,434 297 $ 3,142 $ 933,230 $ 1,047 $ 1,105 $ (58) $ 4,189 $ 4,435 $ (247) -5.56% BELOW IL OH 282 1 $ 599 $ 599 $ 121 $ 128 $ (7) $ 720 $ 683 $ 37 5.43% ABOVE TX MA 2,398 52 $ 3,466 $ 180,227 $ 1,031 $ 1,089 $ (58) $ 4,497 $ 4,594 $ (97) -2.10% AT CA WA 1,093 1 $ 1,958 $ 1,958 $ 470 $ 496 $ (26) $ 2,428 $ 2,449 $ (21) -0.84% AT IL MO 282 1 $ 580 $ 580 $ 121 $ 128 $ (7) $ 701 $ 655 $ 46 7.02% ABOVE IL OH 275 1 $ 600 $ 600 $ 118 $ 125 $ (7) $ 718 $ 672 $ 47 6.93% ABOVE NJ OH 603 1 $ 500 $ 500 $ 259 $ 274 $ (14) $ 759 $ 778 $ (19) -2.40% AT NV GA 2,545 1 $ 3,519 $ 3,519 $ 1,094 $ 1,155 $ (61) $ 4,613 $ 4,576 $ 38 0.82% AT OH VA 548 4 $ 1,113 $ 4,450 $ 236 $ 249 $ (13) $ 1,348 $ 1,337 $ 11 0.86% AT IL MO 280 1 $ 580 $ 580 $ 120 $ 127 $ (7) $ 700 $ 652 $ 48 7.43% ABOVE Status (Including Fuel Surcharge) Comparing Metrics: RPM vs. Market Position (Week 1 Index) 2011 YOY Average TL Rates per Mile increased by more than 6%. Actual Price per Equivalent Load only increased by about 3%. 6

Sep-10 Oct-10 Sep-10 Nov-10 Oct-10 Dec-10 Nov-10 Dec-10 Jan-11 Jan-11 Feb-11 Feb-11 Mar-11 Mar-11 Apr-11 Apr-11 May-11 May-11 Jun-11 Jul-11 Aug-11 Jun-11 Jul-11 Aug-11 Sep-10 Sep-10 Oct-10 Oct-10 Nov-10 Nov-10 Dec-10 Dec-10 Jan-11 Jan-11 Feb-11 Feb-11 Mar-11 Mar-11 Apr-11 Apr-11 May-11 May-11 Jun-11 Jun-11 Jul-11 Jul-11 Aug-11 Aug-11 Sample Network Insights: Carrier Profile (FSC @ $3.80 DOE Price, Data requested from 10/1/2010 to 9/30/2011) XYZ Inc. 2011- Annual Truckload Model 2 Carrier Report 2011- Annual Truckload Model 2 2011-2011- Annual Annual Carrier Truckload Truckload Report Model Model 2 Carrier Report Carrier Shipment Statistics Carrier Carrier Report Report Estimated Costs and Market Position XYZ Inc. XYZ Inc. Reported Annual Estimated Annual Annual Cost Difference Minimum Average Maximum Number of % Reported Status Annual Cost Cost Difference Percent (FSC Co_Id @ $3.80 DOE SCAC Price, Data Weekly requested from Weekly 10/1/2010 to 9/30/2011) Weekly weeks XYZ XYZ Inc. Weeks Inc. (Including Fuel (FSC @ $3.80 DOE Price, Data requested from 10/1/2010 to 9/30/2011) Volume (Including Fuel (Including Fuel (Including Fuel (Including Fuel Carrier Volume Volume Volume w/volume w/volume Surcharge) (FSC @ (FSC $3.80 @ DOE $3.80 Price, DOE Data Price, requested Data requested from 10/1/2010 from Shipment 10/1/2010 to 9/30/2011) to Statistics 9/30/2011) Estimated Surcharge) Costs and Market Surcharge) Position Carrier Shipment Statistics Estimated Costs and Market Position Surcharge) Surcharge) Carrier Carrier Shipment Shipment Statistics Statistics Reported Annual Estimated Costs Annual and and Annual Market Cost Position Difference Minimum Average Maximum Number of % Reported XYZ Inc. 1 48 73 123 53 Reported 100% Annual Estimated 3,860 Annual $ Annual 4,781,807 Cost $ Difference Status Minimum Average Maximum Number of % Reported Annual Cost Cost Difference Percent 4,853,526 $ (71,719) -1% AT Co_Id SCAC Weekly Weekly Weekly weeks Weeks Status Annual Reported Reported Cost Annual Annual Estimated Estimated Cost Annual Annual Difference Annual Annual Cost Cost Percent Difference (Including Fuel XYZ Co_Id Inc. SCAC Weekly Minimum Minimum 2 Weekly Average Average 3 Weekly Maximum Maximum 9 Number weeks Number of of 18% Weeks Reported % Reported Volume (Including Fuel (Including Fuel (Including Fuel (Including Fuel 53 100% 462 $ 1,255,699 $ 1,260,658 (Including Status Volume Volume Volume w/volume w/volume $ Fuel Volume Annual Annual (Including Cost Cost Fuel (Including Cost Cost Fuel (Including Difference Fuel (Including Percent Fuel Surcharge) (4,958) 0% AT Co_Id Co_Id SCAC SCAC Volume Weekly Weekly Volume Weekly Weekly Volume Weekly Weekly w/volume weeks weeks w/volume Weeks Weeks Surcharge) Surcharge) Surcharge) Surcharge) (Including Surcharge) Fuel Volume Volume Fuel (Including XYZ Inc. 3 6 93 194 53 Surcharge) (Including Fuel Fuel 100% 4,946 Surcharge) (Including Fuel Fuel $ 12,156,167 Surcharge) (Including Fuel (Including $ Surcharge) Fuel Volume Volume Volume Volume Volume Volume w/volume w/volume w/volume w/volume 11,397,639 Surcharge) $ 758,528 7% ABOVE XYZ Inc. 1 48 73 123 53 100% 3,860 $ Surcharge) 4,781,807 $ Surcharge) 4,853,526 Surcharge) $ (71,719) Surcharge) -1% AT XYZ Inc. Inc. 1 4 48 4273 143 123 53 176 100% 53 3,860 $ 100% 4,781,807 $ 7,569 4,853,526 $ $ 7,125,551 (71,719) $ 7,433,016-1% AT $ (307,465) -4% BELOW XYZ Inc. XYZ Inc. 12 1 483 48 739 73 12318123 53 53 53 100% 100% 3,860 3,860 462$ $ 4,781,807 1,255,699 $ $ $ 4,853,526 1,260,658 $ $ $ (71,719) (4,958) -1% AT 0% AT XYZ Inc. 2 3 9 18 53 100% 462 $ 1,255,699 $ 1,260,658 $ (4,958) 0% AT XYZ Inc. XYZ Inc. 23 52 36 3 12 93 9 5418 194 18 53 5377 100% 100% 53 462 4,946 462$ $ 100% 12,156,167 1,255,699 $ 2,840 $ $ 1,260,658 11,397,639 $ $ 3,272,128 $ $ (4,958) 758,528 $ 3,586,608 0% AT 7% ABOVE $ (314,480) -9% BELOW XYZ Inc. 3 6 93 194 53 100% 4,946 $ 12,156,167 $ 11,397,639 $ 758,528 7% ABOVE 3 6 93 194 53 100% 4,946 $ $ $ XYZ Inc. XYZ Inc. 4 3 6 42 6-143 93 1176 194 53 532 100% 17 7,569 4,946 $ 12,156,167 32% 7,125,551 $ $ 11,397,639 23 7,433,016 $ $ $ 758,528 26,810 (307,465) 7% $ 26,224-4% ABOVE BELOW XYZ Inc. 4 42 143 176 53 100% 7,569 $ 7,125,551 $ 7,433,016 $ (307,465) -4% BELOW $ 586 2% AT XYZ Inc. XYZ Inc. 45 4 42 12 42 14354 143 17677176 53 53 53 100% 100% 7,569 2,840 7,569 $ $ 7,125,551 3,272,128 $ $ $ 7,433,016 3,586,608 $ $ $ (307,465) (314,480) -4% -9% BELOW BELOW XYZ XYZ Inc. Inc. Inc. 55 7 12 12 254 54 14 77 77 53 53 27 100% 100% 53 2,840 2,840 $ $ 100% 3,272,128 $ $ 720 3,586,608 $ $ $ 873,428 (314,480) $ -9% 904,858 BELOW $ (31,430) -3% BELOW XYZ Inc. XYZ Inc. 6 5-12 1 54 2 77 1753 32% 100% 2,840 23 $ 3,272,128 26,810 $ $ 3,586,608 26,224 $ $ (314,480) 586-9% BELOW 2% AT XYZ XYZ Inc. Inc. 6 6-8 - 1 58 1 2 1682 17 17 32% 294 32% 23 53 23 $ $ 26,810 100% $ $ 26,224 8,892 $ $ 14,959,787 $ 586 2% $ 14,989,016 AT XYZ Inc. XYZ Inc. 7 6 2-14 1 27 2 5317 100% 32% 720 23 $ 873,428 26,810 $ $ 26,224 904,858 $ $ (31,430) 586 2% -3% AT BELOW $ (29,230) 0% AT XYZ Inc. 77 22 14 14 27 27 53 53 100% 720 $ $ 873,428 $ $ 904,858 $ $ (31,430) -3% BELOW XYZ Inc. XYZ Inc. 8 7 9 58 2 58-168 14 17294 27 53 53 53 54 100% 100% 52 8,892 720 $ 98% 14,959,787 873,428 $ $ 865 14,989,016 904,858 $ $ 1,579,289 $ (31,430) (29,230) -3% BELOW $ 1,551,672 0% AT XYZ Inc. $ 27,617 2% AT XYZ Inc. 8 8 58 58 168 168 294 53 53 100% 100% 8,892 8,892 $ $ 14,959,787 14,959,787 $ $ 14,989,016 14,989,016 $ $ (29,230) (29,230) 0% 0% AT AT XYZ XYZ Inc. Inc. Inc. 9 9 10 -- - 117 17 12 54 54 52 52 20 98% 98% 53 865 865 $ 100% 1,579,289 1,579,289 $ $ 635 1,551,672 1,551,672 $ $ $ 599,163 27,617 27,617 $ 2% 689,347 AT 2% AT XYZ Inc. 9-17 54 52 98% 865 $ 1,579,289 $ 1,551,672 $ 27,617 2% AT $ (90,185) -13% BELOW XYZ XYZ 10 12 20 53 XYZ Inc. Inc. Inc. 10 10 11 1 1 2812 12 Weekly 68 20 20 53 53 Percent 97 100% 100% to Market 53 635 635 $ 100% 599,163 599,163 $ $ 3,585 689,347 689,347 $ $ $ 4,910,758 (90,185) (90,185) $ -13% 5,062,026 BELOW XYZ Inc. 10 1 12 20 53 100% 635 $ 599,163 $ 689,347 $ (90,185) -13% BELOW $ (151,268) -3% BELOW XYZ XYZ Inc. Inc. 11 11 11 28 28 28 Weekly Weekly 68 68 68 Percent Percent 97 97 97 to to to Market Market 53 53 53 100% 100% 3,585 3,585 $ $ 4,910,758 4,910,758 $ $ $ 5,062,026 5,062,026 $ $ $ (151,268) -3% -3% BELOW XYZ Inc. 11 28 XYZ Inc. 12 12 - - - Weekly 68 14 14 Average 14 Percent 97 to Market 53 100% 3,585 $ 4,910,758 $ 5,062,026 $ (151,268) 54 54 Fuel at Per 46 46 54 Mile 87% at 87% $3.80 46 627 627DOE $ $ 1,311,745 87% $ $ 627 $ $ $ 1,311,745 268,030 $ Absolute Absolute -3% BELOW 1,043,715 Weekly Weekly 26% ABOVE $ Market Market 268,030 Position Position XYZ Inc. 12-14 54 46 87% 1,311,745 $ 1,043,715 $ 268,030 26% ABOVE 26% ABOVE XYZ Inc. 12 Average Average - Fuel Per Mile at $3.80 DOE 1 14 26 53 100% 730 $ $ $120,000 546,610 $ (33,160) 1 14 26 53 100% 730 $ 513,450 $ $120,000-6% BELOW XYZ XYZ Inc. 35% Inc. 35% Average Fuel 14 Fuel Per Per Mile 54 Mile at at $3.80 $3.80 46 DOE DOE 87% 627 $ 1,311,745 $ 1,043,715 $ 268,030 26% ABOVE 13 13 1 1 14 14 26 26 53 53 100% 100% 730 730$ 513,450 513,450 $ $ $120,000 $120,000 XYZ Inc. 35% 13 1 14 26 53 100% 730 $ $ 546,610 $ (33,160) -6% BELOW 30% 14 143 492 665 53 100% 26,059 $ TNTI_ 513,450 $ 546,610 $ (33,160) -6% BELOW $120,000 546,610 $ (33,160) -6% BELOW TNTI_ Car3 30,249,440 $ 31,149,423 $ (899,983) -3% BELOW Car3 XYZ XYZ Inc. Inc. Inc. 14 14 30% 143 143 143492 492 492 665 665 53 53 665 100% 100% 5326,059 $ TNTI_ TNTI_ TNTI_ TNTI_ 100% $ 26,059 $ TNTI_ 30% 30% Car3 $ 31,149,423 XYZ Inc. 15 41 126 186 53 100% 6,661 $ 12,957,732 $ 13,458,719 $100,000 $ $ Car3 30,249,440 (899,983) $ 31,149,423-3% BELOW $ (899,983) -3% BELOW Car3 XYZ Inc. 14 143 492 665 53 100% 26,059 $ TNTI_ TNTI_ 30% Car3 30,249,440 $ 31,149,423 $ (899,983) -3% BELOW Car3 $ (500,988) -4% BELOW XYZ XYZ Inc. Inc. 25% 15 15 41 41 126 126 186 186 53 53 100% 100% 6,661 $ $ $ $100,000 XYZ Inc. 15 41 126 186 53 100% 6,661 $ 12,957,732 $ 13,458,719 $100,000 $ $ $ (500,988) (500,988) XYZ Inc. 16 15 4 41 23 12647 53186 100% 53 1,216 $ RTS_ 100% 1,998,122 $ 6,661 2,163,900 $ 12,957,732 $ (165,778) $ 13,458,719 $100,000-4% -4% BELOW BELOW RTS_W 25% 25% 25% -8% BELOW Car12 $ (500,988) -4% BELOWCar12 XYZ Inc. 20% 25% $80,000 AL RTS_W XYZ XYZ Inc. Inc. XYZ Inc. 16 16 16 17 10 4 4 4 23 23 23 37 47 47 47 66 53 53 53 53 100% 100% 100% 1,216 1,216 1,968 $ $ $ RTS_ 2,381,559 $ $ $ 2,380,354 $ $ $ (165,778) 1,205 0% -8% BELOW AT XYZ 16 4 23 47 53 Car12 RTS_ 1,998,122 $ 2,163,900 $ (165,778) -8% BELOW Car12 Car12 RTS_W 100% 1,216 $ RTS_ 1,998,122 $ 2,163,900 $ (165,778) -8% BELOW XYZ Inc. 20% $80,000 AL XYZ Inc. 20% $80,000 AL Inc. XYZ Inc. 20% 17 17 15% 18 10 10 9 37 37 66 146 66 66 53 53 53 100% 100% 1,968 3,475 $ $80,000 AL 17 10 37 66 53 100% 1,968 $ $ 2,381,559 4,763,127 2,381,559 $ $ $ $ 4,999,324 2,380,354 Car12 $ $ $ $ (236,197) 1,205 1,205 20% $80,000-5% 0% AT 0% AT BELOW GRDN_ GRDN $60,000 19 17 11 10 37 3753 53 66 53 Car20 Car20 XYZ XYZ Inc. Inc. 15% 15% XYZ Inc. 18 18 18 9 9 9 66 66 66 146 146 146 53 53 53 100% 100% 3,475 1,960 3,475 3,475 $ $ $ _ 100% 4,763,127 3,085,733 4,763,127 $ $ 1,968 $ $ 2,715,967 4,999,324 $ $ $ 2,381,559 $ 369,765 $ 2,380,354 14% -5% GRDN_ ABOVE BELOW GRDN_ $ 1,205 0% AT 10% Car20 GRDN $60,000 $ (236,197) -5% BELOW GRDN_ 15% GRDN $60,000 Car20 Car20 XYZ XYZ Inc. Inc. XYZ Inc. 19 19 19 11 11 11 37 37 37 53 53 53 53 53 53 100% 100% 1,960 1,960 $ $ $ _ 3,085,733 _ 3,085,733 $ $ $ 2,715,967 $40,000 2,715,967 $ $ $ 369,765 14% 14% ABOVE ABOVE EPES_ XYZ Inc. 15% 18 9 66 146 53 100% 3,475 $ 4,763,127 $ 4,999,324 $ (236,197) -5% BELOW Car25 10% 10% 10% 5% EPES_ Car25 Car20 GRDN $60,000 $40,000 $40,000 $40,000 Car25 EPES_ Car25 EPES_ EPES_ XYZ 5% Inc. 5% 5% EPES_ 19 11 37 53 53 EPES_ 100% 1,960 $20,000 $ _ 3,085,733 $ 2,715,967 $ 369,765 14% ABOVE 0% Car25 Car25 10% $20,000 0% $20,000 $20,000 0% 0% $0 $40,000 1,000 5% 1.2 $0 EPES_ $5,000,000 900 1,000 TNTI_W Car3 $0 $0 Car25 $4,500,000 1,000 800 AL 1.2 $5,000,000 900 TNTI_W 1.21 1.2 $20,000 $5,000,000 $4,000,000 $5,000,000 900 700 900 0% TNTI_W TNTI_W Car3 Car3 $4,500,000 800 RTS_WA AL $4,500,000 Car12 Car3 1 $3,500,000 $4,500,000 800 600 800 AL AL 0.8 L 1 1 $4,000,000 700 $4,000,000 $3,000,000 $4,000,000 700 500 RTS_WA 700 RTS_WA Car12 600 0.6 $0 $2,500,000 600 400 1,000 Car12 $3,500,000 GRDN_ RTS_WA 0.8 $3,500,000 L 600 0.8 L Car20 Car12 0.8 $3,000,000$3,500,000 500 L 1.2 $3,000,000 $2,000,000 $3,000,000 500 300 500 0.4 0.6 $2,500,000 900 400 GRDN_ 0.6 TNTI_W $1,500,000 400 200 GRDN_ 0.6 EPES_W Car3 $2,500,000 $2,500,000 400 Car20 GRDN_ $2,000,000 300 800 AL 100 Car20 Car25 $1,000,000 Car20 0.2 0.4 1 $2,000,000 300 $1,500,000$2,000,000 300 200 0.4 0.4 $500,000 - EPES_W $1,500,000 200 200 700 $1,500,000 100 Car25 EPES_W AL 0.2 $1,000,000 0 Car12 RTS_WA $- 100 Car25 EPES_W 600 AL 0.2 0.8 $1,000,000 100 Car25 $500,000 $1,000,000 - AL 0.2 0 L $- $500,000 - $500,000 500-0 0 $- 0.6 $- 400 Weekly Volume GRDN_ Car20 Cumulative Market Position 300 Weekly Volume 0.4 200 Weekly Cumulative Market Position Volume EPES_W 100 Car25 Cumulative AL 0.2 Cumulative Market Market Position Position - 0 Sep-10 Sep-10 ep-10 Oct-10 Oct-10 ct-10 Nov-10 Nov-10 Dec-10 Dec-10 ov-10 Jan-11 Jan-11 ec-10 Feb-11 Feb-11 an-11 Mar-11 Mar-11 Apr-11 eb-11 Apr-11 May-11 May-11 ar-11 Jun-11 Jun-11 pr-11 Jul-11 Jul-11 Aug-11 ay-11 Aug-11 un-11 2011- Annual Truckload Model 2 Jul-11 ug-11 Sep-10 Sep-10 Oct-10 Oct-10 Nov-10 Nov-10 Dec-10 Dec-10 Jan-11 Jan-11 Feb-11-10 Feb-11 Mar-11 Mar-11 t-10 Apr-11 Apr-11 May-11-10 May-11 Jun-11-10 Absolute Weekly Market Positi Jun-11 Jul-11-11 Jul-11 Aug-11 Aug-11-11 r-11 Car12 Car20 Car25 r-11 7-11

Overview of PepsiCo s Transportation Procurement Model 8

PepsiCo Network Overview We are a Shipper We are a Carrier 9

Global Transportation Procurement Model Overview The Transportation Procurement Model is a comprehensive strategy of five interlocking capabilities to own "all that moves" within your supply chain. Goal: deliver the least landed cost at a best-in-class service level through an uninterrupted supply chain. Least landed cost Best-in-class service levels Uninterrupted supply chain 10

Each step of procurement model has distinct purpose... Get what you pay for 11

...and drives ability to deliver all other capabilities Example: Market knowledge elevates other components of model How have our forecast volumes been affected by transportation market conditions? What rate increases can we expect? Are our carriers equipped to handle new regulations? Are we at, below, or above market rates? 12

Market Knowledge Goal Procurement Activities Understand your transportation market Data gathered and analyzed Carrier rates Fuel prices Carrier input prices Capacity Driver availability & wages Regulatory trends Developed point of view on transportation market 1 Leverage Expansive Network to Understand or Benchmark Similar Lane Rates 2 Use Strategic Carrier Network to Benchmark Market Rates in Any Given Lane or Region PepsiCo Network 13

Output Inputs Market Knowledge: Sample Tools & Resources Industry Lane Rate Benchmarks FMIC BATCH UPLOAD TEMPLATE FOR TRUCKLOAD SHIPPERS 3 Leverage Chainalytics Freight Market Intelligence Resources FMIC FUEL PROGRAM MODEL FUEL PRICE $ 4.00 MODEL TYPE BASE ESCALATOR SURCHARGE (per mile) ADJUSTED FMIC FMIC FSC (per mile) FSC (per mile) LHDV 1.15 0.06 0.01 0.49 0.51 LHTC 1.22 0.05 0.01 0.53 0.55 LHIM 1.16 0.10 0.01 0.29 0.30 LHFB 1.21 0.06 0.01 0.46 0.48 SHDV 1.01 0.06 0.01 0.50 0.52 SHTC 1.19 0.05 0.01 0.54 0.56 SHFB 1.28 0.06 0.01 0.46 0.47 USER DEFINED FUEL PROGRAM CURRENT FUEL PRICE $ 4.10 DISTANCE or Origin Origin Annual MODEL TYPE PERCENTAGE Temp BASE ESCALATOR Additional SURCHARGE Optional FSC Optional Estimate Destination Destination Distance Route Equipment Service Movement Contract RATE Postal Countr Lane Mode ID BASED? Control Corridor Per Load Per Mile Postal Code Country (Miles) Type Size Level Type Type Code y Volume Type Volume Charge Charge LHDV 0.00 LHTC 0.00 1 35618 US 15683 US 702 LHIM369 DM DV N 53 R OB CC 0.00 2 35618 US 21740 US 720 LHFB 413 DM TC F 48 R OB SM 0.00 3 35618 US 23836 US 669 437 DM TC F 53 R OB CC SHDV 0.00 4 35618 US 30439 US 400 508 DM DV N 53 R IB CC SHTC 0.00 5 35618 US 36750 US 152 348 DM DV N 53 X OB CC FMIC MBBC FUEL ADJUSTED FUEL USER DEFINED 6 SHFB FUEL RATE PER MILE ADDITIONAL DATA 0.00 35618 US 42101 US 195 352 MS DV N 53 R OB CC 7 35618 US 46320 US 547 504 DM DV N 53 R OB CC Annual Estimated Annual Estimated Adjusted Fuel- User Fuel- User All-In Cost MBBC MBBC All-In Cost MBBC All- MBBC Adjusted User Fuel Benchmar Adjusted Benchmark Including Fuel Linehaul Including In CPL Fuel MBBC All- Surcharge k Linehaul MBBC Allin CPM CPM and Fuel Linehaul User-defined Price Surcharge CPL MBBC Price and Surcharge In CPL CPL Fuel Programs Programs Model Applied to Determine Estimate Error Description $ 1,607 $ 344 $ 1,263 $ 330 $ 1,593 $ 309 $ 1,284 $ 2.27 $ 1.83 $ 592,945 $ 587,764 2011 July TL Long Haul Dry VOK $ 2,077 $ 382 $ 1,696 $ 367 $ 2,063 $ 317 $ 1,746 $ 2.87 $ 2.43 $ 857,898 $ 851,951 2011 July TL Long Haul Tem OK $ 1,723 $ 355 $ 1,368 $ 341 $ 1,709 $ 294 $ 1,415 $ 2.55 $ 2.11 $ 752,771 $ 746,924 2011 July TL Long Haul Tem OK $ 890 $ 196 $ 694 $ 188 $ 882 $ 176 $ 706 $ 2.21 $ 1.77 $ 452,230 $ 448,166 2011 July TL Long Haul Dry VOK $ 534 $ 76 $ 458 $ 73 $ 531 $ - $ 531 $ 3.49 $ 3.49 $ 185,819 $ 184,761 2011 July TL Short Haul Dry OK $ 585 $ 98 $ 487 $ 94 $ 581 $ - $ 581 $ 2.98 $ 2.98 $ 205,763 $ 204,390 2011 July TL Short Haul Dry OK 14

28-Sep 28-Oct 28-Nov 28-Dec 28-Jan 28-Feb 31-Mar 30-Apr 31- May 30-Jun 31-Jul Weekly Loads Internal Business Intelligence: Overview Goal Procurement Activities Key Data Elements Know your capacity needs Volume trends and seasonality Know geographic areas historically challenged by capacity Accurate historical price, service, and bid cycle data Understand geographic capacity concerns Information management Manage inputs into worksheet or model to gather monthly volume information Leverage Chainalytics models and tools to define internal business intelligence for each business unit Weekly Loads 1,200 1,000 800 600 400 200 1,200 1,000 800 600 400 200 0 Total Reported Loads Per Week Total Reported Loads Per Week 0 28-Sep 28-Oct 28-Nov 28-Dec 28-Jan 28-Feb 31-Mar 30-Apr 31- May 30-Jun 31-Jul 31-Aug 15

Procurement Event: Overview Success Depends on the Amount of Pre-Work and Data Accuracy Goal Procurement Activities Obtain best cost and service agreements Process definition Define scope, timeline, stages, and milestones of process Identify key roles and responsibilities (internal teams and any external support) Data gathering Develop list of lanes, volumes, historic prices for bid Determine what freight you would prefer to renew and not open for bidding. Field coordination Solicit input on carrier participants based on market knowledge. Maintain continuous communication with field throughout process Carrier coordination Discuss rules of engagement with the carriers before, during and after the bid. Formalize in writing (Examples: bid timing, insurance requirements, accessorial policies) Develop and refine bids with carriers to ensure "right" service/cost mix Formalize agreements per applicable business customs/legal framework Information management Determine tool or method for bid, and maintain/monitor bids Formalized framework to define bid requirements and "host" bid 16

Carrier Relationships: Overview Goal Procurement Activities Develop carriers who provide strategic value Carrier Capability who will build their operation around the network Strong growth potential Can they grow with your business, and operations Proper operational authorities, insurance requirements Operations feedback on carrier performance and service Continued Carrier Relationship-building Continually meet with existing / potential carriers to understand capabilities and strategy. Establish working relationship with the carrier base. The carrier must be as familiar with our business as we are with theirs 17

Execution and Tracking: Overview Goal Procurement Activities Get what you pay for Continual performance feedback on execution performance Carrier performance KPI s Capacity plan performance KPI s Route Guide compliance Spot Bid results Problematic lane analysis 18

Discussion 19

Discussion Rob Hair Sr. Director, Global Transportation Processes & Systems Rodney Noble Sr. Director, Carrier Operations & Procurement CHAINalytics Gary Girotti Vice President, Transportation Practice Fabrizio Brasca Vice President, Global Logistics Moderator Michael Levans Group Editorial Director, Supply Chain Group 20

Thank you! CHAINalytics info@chainalytics.com info@jda.com 21