Integral Resu lt Optimization in Transpor t and Logistics

1. Integral ResultOptimization in Transport and Logistics The newapproachdeveloped by concipio management solutions GmbH

2. Concipio management solutions GmbH • Founded in May 2013 by Jörg Frommeyer. • Jörg Frommeyer has a long experience in the management of companies in the transport- and logistics industry as managing director. • Several years worldwide responsibility for the Overland-Network of Kuehne + Nagel. Reporting line directly to the Group CEO. • Detailed list of experiences can be found on the homepage. • Jörg Frommeyer is supported by a network of market experts with a very good reputation in the market.

3. Our Services • European KPI Benchmarking – Anonymized comparison of performance indicators • Network Monitoring – Structure analysis for optimized usage of ressources • Management Support – Pragmatic support in daily business by experienced Experts

4. Cost control is one part only… For many years, transport companies have to cope with low margins. The services are exchangeable and as transport is not bound to one fixed location, competition is fierce. Price pressure is tremendous and costs are rising permanently. Managing your costs accurately is important. To survive these difficult times, it is necessary to optimize your full P + L, not just the cost side. Concipio management solutions has developed a set of solutions to support you managing your P + L in an integral way.

5. Manage your whole Profit and Loss Statement! • The firstdriverforyourprofitabilityisyourGrossProfit margin Do youreallyachievethemaximum? • The costsideconsistsofseveralelements  Are yousureyouarecompetitive in all costareas? Turnover ./. Trade Expenses = Gross Profit StaffCosts ./. FacilityCosts ./. AdminCosts ./. Net Profit =

6. The 4 main cost drivers in transport • Transport processes consist of4 main cost drivers Local Traffic costs Handling costs Linehaulcosts Admin costs + + + total direct costs = • Some of these costs are shown before the Gross Profit in your P + L trade expenses • Some other elements are shown in the direct costs of your P + L

7. Full optimization of all cost drivers • There is potential to save costs in all cost driving elements of your P + L Local Traffic costs Handling costs Linehaulcosts Admin costs + + + Saving Potential Saving Potential Saving Potential Saving Potential ./. ./. ./. ./. Optimal costlevel Optimal costlevel Optimal costlevel Optimal costlevel = = = =

8. Full optimization of all cost drivers • Do you achieve the maximum saving potentialof all cost drivers? Local Traffic costs Handling costs Linehaulcosts Admin costs Total costs + + + = Saving Potential Saving Potential Saving Potential Saving Potential Total Saving Potential = ./. ./. ./. ./. Optimal costlevel Optimal costlevel Optimal costlevel Optimal costlevel CostLeadership = = = = =

9. But what is the “optimal cost level“ for the cost drivers?

10. Benchmarking with the best of your business sector would help you to set the right targets + = Setting the right targets Comparing with the best Cost leadership

11. The solution offered by concipio:European KPI Benchmarking • Anonymized comparison of key performance indicators on a monthly basis. • Ranking lists showing you the performance level compared to market participants. • Creation of a Balanced Score Card to see the total saving potential.

12. Gross Profit margin Optimization – Improving the starting point of your Profitability • The grossprofitmarginisinfluenced by three different parameters: SellingPrice Achieving a high price from the customers should always be the first target. Pricing excellence has to be developed.

13. Gross Profit margin Optimization – Improving the starting point of your Profitability • The grossprofitmarginisinfluenced by three different parameters: Selling Price Purchasing Reducing the trade expenses by optimal purchasing of external services is a must. Market trends have to be followed tightly.

14. Gross Profit margin Optimization – Improving the starting point of your Profitability • The gross profit margin is influenced by three different parameters: SellingPrice Purchasing Utilization The optimal utilization of the capacities is something specific in fixed costs environments. You pay the capacities even if you do not use them completely.

15. Gross Profit margin Optimization – Improving the starting point of your Profitability • The gross profit margin is influenced by three different Parameters: SellingPrice Purchasing Utilization Optimal GrossProfit margin + + = To achieve the ideal gross profit margin you need to permanently work on all parameters. Concipio management solutions supports you to optimize the utilization of your capacities.

16. Utilization of Linehaul Trucks – a challenging task • Achieving a high utilizationofyourtrucksisimportanttogetthemaximumrevenue out ofyourpaidcapacities. • Close monitoringoftheutilizationiscrucialtobeabletoreactquicklytonegative developments. • Changes in thecustomerstructure, thecargo mix andtheshipmentstructurecanhave a directandsignificantimpact on yourprofitability. • Concipio management solutions helpyoutokeeptrackofdevelopmentsofyour structures.

17. Network Monitoring by concipio management solutions - keep your business under control

18. Monitor your customer structure! Guideyoursalesforcetotherightareas. See thevolumedevelopmentofyourcustomers. Find therightlocationforyourbusiness. Optimizeyourlocaltraffic. To know where your customers are located is important to know. Changes in your customer structures have a direct impact on your cost structures.

19. Monitoring of Shipment structures – another important profit lever • See developmentofshipmentsizesandoptimizeyourtariffsystem. • Find therightcustomerstooptimizetheutilization. • Follow developments on the different tradelanes. The right mix of shipment sizes and shipment flows is the key to high profitability.

20. Utilization monitoring – squeeze your capacities • Find result optimization potential in hidden capacity reserves. • Optimize your routing. • Focus your sales on filling capacities. • Develop trade lanes efficiently. The closer the better...Following the development of your capacities is crucial.

21. Withthesupportofthe solutions provided by concipio management solutions youknowyourpotentialstooptimizecostsnowaswellasyourcapacityreserves.But we also supportyouwiththerealization.

22. Quick-Win-Workshop – Identify immediate potential • Analysis of your cost situation and your competitiveness. • Short-term cost-cutting measures with direct impact on the results. • Implementation of simple control tools to manage your costs In a 2 day workshop we identify quick-win potential. Finding potential to optimize results to improve your profitability immediately

23. Monthly Sparring – Stay agile and innovative • Discuss your business situation on a monthly basis via video conference. • Develop new ideas to optimize your profitability. • Exchange information about market trends and challenges. Is there somebody who challenges you regularly? Someone experienced who can show you new ideas for your business? Inconvenient but target-oriented?

24. Strategy Workshop – Find your own way • Creating a SWOT* analysis of your company. • Market analysis and positioning. • Defining the market requirements. • Discussing the future organizational setup. In a 3 day workshop we discuss future paths of your company. Based on operational expertise and not just on theoritical assumptions. * „Strenghts/Weaknesses/Opportunities/Threats“

25. Concipio management solutions GmbH was foundedtosupportyouwithpragmatic solutions foryourdailybusiness. Wekeep on developingnew solutions thathelpyoutofurtheroptimizeyourresultsituation.Talk tous!www.concipio-online.com