EMS Profit Improvement Software Solution

· Pickup and Delivery Productivity / Capacity Management:

This module measures the PRODUCTIVITY & CAPACITY a Service Center has available in their Pickup and Delivery Operation. Additionally it measures the utilization of capacity by P&D driver, route, and cost area. This module has a unique feature that tells the leader number of P&D drivers needed each day based on the work available and the productivity goal desired. (One of the major keys to profitability is absorbing new business with existing capacity. This module accomplishes that function for P&D.

· Dock / Platform Efficiency:

The EMS Dock Efficiency module measures DOCK productivity using Service Center specific variables based on time allowances for shipments, handling units, and weight. This module accomplishes that function for Dock.

The Efficiency categories are:

1. Inbound
2. Outbound
3. Appointments
4. Pool Distribution
5. Break-bulk

· Linehaul Trailer Utilization:

This EMS module measures Service Center Inbound and Outbound LINEHAUL Trailer Utilization showing lane balance and "Equivalent Empty Trailers" based on unused capacity. Lane Imbalance Factors for use in the EMS costing module are calculated for more effective and timely costing / pricing decisions. This module accomplishes that function for Linehaul.

· EMS Costing Module:

This module brings it altogether. The unique feature of this module is the ability to COST business at 100% efficiency. Every company is inefficient and those inefficiencies, when used in costing business, mask the true quality of the piece of business. Costing, without inefficiencies means more market share available for the carrier. A company's inefficiencies belong to the company and should not be passed along to the customer in the form of higher prices. The capabilities are:

1. All Freight Bill Costing
2. "What If" Scenarios
3. Customer Profitability / Contribution (Inbound / Outbound / Lane / State / Region)
4. Service Center Profitability (Contribution Ratio)
5. Customer Base Analysis

· EMS PERFORMANCE BASED COMPENSATION PROGRAM

This ties the entire company to Performance Improvement....

The participants performance based pay is tied to what the person has control over that affects service center profitability.

The concept is Performance-Based variable compensation.
   - This approach is a more effective way to recognize and reward performance. Is very effective in attracting, rewarding and retaining talent

Two Basic Plans:
  - One is paid on a monthly basis.
  - One is paid monthly with a portion based on year end results versus Plan.

The plan uses a "Cafeteria" approach tied to EMS performance modules. The Primary consideration is...
  - Productivity Improvement! Capacity Management
  - Cost Avoidance

The Cafeteria approach allows plan to be revised periodically based on "Hot" areas such as claims, P&D cost, Service, Linehaul utilization, etc.

The merit elements are selected on a group basis and paid to individuals participating in the group on an individual basis based on performance of the group.

This method aligns and focuses the organization on the fundamentals...

1. Serve the customer
2. Grow the company
3. Improve profitability