PowerTrack Presentation To PIDX Symposium October 9, 2000

1. PowerTrack Presentation ToPIDX Symposium October 9, 2000

2. Agenda • U.S. Bank/Corporate Payment Systems • PowerTrack Overview and History • PowerTrack Features and Benefits • Goods On Board • Questions and Answers

3. Who is Corporate Payment Systems? • Division of U.S. Bank (30,000 + Employees) • World’s Largest Issuer of Purchasing Cards • World’s Largest Issuer of Corporate Bank Cards • 770 Employees dedicated to Payment Systems • Leader in Commercial Payment Products • 12 Years Experience Government and Commercial • Specializes in helping Customers reduce costs • PowerTrack is the internet business-to-business payment solutions branch of CPS • Currently contracted for $4 billion in freight payment

4. U.S. Bank Organization U.S. Bank RetailBanking BusinessBanking PaymentSystems CommercialBank CorporateTrust Cards &Lines CorporatePayment Systems CorporateCard PurchasingCard BusinessPlus MerchantProcessing E-Pay IMPAC

5. Some of our Customers... U.S. Air Force Pentair Corporation Delta Tools U.S. Navy U.S. Army U.S. Marine Corps Landstar Logistics Willamette Corporation Andersen Windows Fleck Controls Sunoco John Deere Company, Inc. Defense Logistics Agency U.S. National Guard

6. What is ? is an Internet based payment solution that allows buyers and sellers to see all the information regarding any transaction in real-time, and integrate seamlessly across the trading partner relationship. REAL-TIME SHARED DATA

7. Why is Powerful? PowerTrack allows consistent views of all shipping information throughout the organization, while still allowing for widely varying payment processes in a complex, decentralized agency, giving a complete enterprise solution.

8. How Does Work?

9. Order Goods or Services Payment Made by card-issuing bank to Merchant (Seller) Goods/Services Delivered Consolidated bill every 30 days to Card Holder (Buyer) Cardholder pays bank every 30 days Credit Card Process

10. Payment Made by PowerTrack to Seller Payment made to PowerTrack by Buyer (30 Net 15) Consolidated electronic bill to Buyer every 30 days Order Goods or Services Goods/Services Delivered PowerTrack Process

11. Seller Buyer • Create Order • Rate Order • Transmit Order • Accrue Payment • Track Delivery Performance • Receive Invoice • Match Invoice to Order • Audit Invoice • Resolve Disputes • Pay Seller • Manage Accounts Payable • Accept Order • Delivers Goods/Services • Track Delivery • Rate Order (data entry) • Create & Send Invoice • Manage Cash Flow • Receive Payment to Invoice • Match Payment • Resolve Disputes • Manage Accounts Receivable • 60-90 Days of A/R Billing/Payment Today Billing and payment are a series of separate actions on part of both sellers and buyers. Often, information needed by a buyer is held by a seller, or vice versa, resulting in delayed payments and strained business partner relationships.

12. The PowerTrack Model Seller Buyer • Create Order • Rate Order, Notify Seller • EDI Data to PowerTrack • Approve Payment • Accept Order • Create Invioce • Deliver Goods/Services • EDI NOD/Invoice to PT PowerTrack • Posts on Web Electronic Invoice submitted by Seller • Posts on Web POD/Invoice received from Seller • Payment made to Seller in as little as 24 hours • Consolidated, monthly billing to buyer • Immediate exception handling with E-Bills PowerTrack fits into the existing payment scenarios, and combines all the billing information into one electronic document. Easy access to information by both buyers and sellers facilitates quick payment and better management of the logistics process.

13. Internet PowerTrack allows separate groups within an agency to work as one with all shipments Financial Management • Policy • Planning • Supervision • Process Review • Credit & Risk • AP/AR Allocation • Audit & Reporting • Tracking Planning Operations & Services • Consolidation • Clustering • Continuous • Dynamic • Receipt • Dispatch • Equipment • Technicians

14. ReportingPowerTrack delivers powerful reporting tools to help analyze your performance • Completed Transactions / Aging Summary by Mode • Completed Transactions / Aging Summary by Seller • Completed Transactions / Aging Summary by Buyer • Completed Transactions / Aging Detail by Seller • Modal Delivery Analysis • Seller Performance Summary • Revenue by Buyer by lane • Cost per Lane by Mode • Ad Hoc Reporting Capabilities

15. Outbound Freight Dispatch Vehicle Tender Shipment 104,204 3 9 Daily Electronic Payment & A/R Feed (820) Invoice and/or NOD Goods Delivered 8 Place Order (850) 4 1 7 Transmit BOL (858) 6 10 Electronic Statement 30 Days/Net 15 2 11 5 Acknowledge P.O. (855) 12 G/L Feed Payment Shipment Notice (856) Carrier Receiver Shipper

16. PowerTrack DoD History 1996 September DoD Discussions Begin Credit Card Concept Prototype 1997 February Re-engineer Freight Payment Process (DoD, DCMC, DLA Depots, Army, Navy, Air Force, Marines, MTMC, DFAS, PWC, Commercial Shippers and Carriers, etc.) March Requirements Review April - November Prototype Walkthroughs

17. PowerTrack DoD History 1998 January - March User Acceptance Testing April DLA Depot Tobyhanna, PA - Live June Contract Award/DLA Roll-Out July DLA Depot San Joaquin, CA - Live August DLA Depot Susquehana, PA - Live September DCMC & Navy - Live October-December Remainder of DLA Sites

18. PowerTrack DoD History 1999 March 25 DoD Issues 10 Year Task Order May 27 Navy Issues 5 Year Task Order + GSA Oct 31 DTR Changed to mandate PowerTrack Dec 31 139 Government Shipper Sites 27 Commercial Shipper Sites 198 Carriers* 1999 Totals 500,000 CBLs $ 96 Million 91% Carrier Payment < 3 days * Sept. 99 Inbound Logistics - Of the top 100 carriers by annual revenue, 22 are processing through PowerTrack and 10 more are under contract.

19. PowerTrack YTD 2000 • Accomplishments • $ 235M+ in processed freight/62 % of DoD Volume (7/2000) • 755,000+ Transactions Oct 99-July 00 vs. DFAS @ 460,000 • 850 Carriers (90% of U.S. Carrier Capacity); 332 of 538 DoD Sites • Rail, Sealift, Pipeline & Barge Carriers added • FSMP November, 2000 (45,000 of 650,000 yearly DoD moves) • Goods on Board prototype with DESC • Generic payment tool migration

20. Next Steps • MULTI-MODAL 538 DoD Sites 9/2000 • CONNECTIVITY Optimize Site LANs, NIPRNET ( DISA) • REPORTING Expand functionality • TRAINING Distance-Based, CD-Rom, Regional, Corporate; Basic and Advanced • ENHANCEMENTS Speed, simplicity

21. What is PowerTrack’s Value? BENEFITS TO PETROLEUM SELLERS: Web-enabled, EDI fed freight billing and payment system • Pays sellers instantly upon delivery; thereby • Drastically reduces carrier DSOs, collection workload and costs • Eliminates borrowing to finance receivables • Provides real-time visibility of financial and transit status ACROSS THE ENTERPRISE • Up-Front reconciliation  Reduced dispute resolution • Eliminates dual-billing procedures (Gov’t. vs. Commercial) • Complete Audit Trail(Who placed order, how transaction was billed, any notes associated with event.)

22. PowerTrack Government Sales DSOsXYZ CompanyCY 1999 - Feb 2000

23. What is PowerTrack’s Value? BENEFITS TO PETROLEUM BUYERS: Abilbility to see and measure cycle times • Real-Time On-Line visibility • Ability to write ad hoc reports • Ability to better negotiate with sellers • Ability to analyze payment financial data • Normal billing terms • Itemized statement; electronic mapping to G/L  Simplified Dispute Process • E-bills for credits and debits (No more GBL corrections) • Both parties view the same data • Disputes solved in hours vs. months

24. What is PowerTrack’s Value? BENEFITS TO ALL PARTIES:  Eliminates GBL [Goal of GSA by Sep 30, 2001]  Enables Pre-Audit Capability [Goal of GSA, April 2000]  Enables EDI Billing and Payment [ Goal of GSA]  Reduces Internal Billing Costs (Ex: USPS 60K/20K)  Manpower Efficiencies from Streamlined Bill Payment Process  Visibility Across the Enterprise  Easily Archived Documentation  Cost Savings from basis point rebate Knowledgeable Support Staff

25. “We are impressed with the efforts of PowerTrack…” …”the PowerTrack process radically change(s) the speed with which bills are are submitted, audited, and paid” “The retention of all necessary data will simplify claim and dispute resolution”… …”while at the same time providing an effective audit record”...

26. GOODS ON BOARD PAYMENT OF GOODS DELIVERED • Extends electronic billing/ payment concept to materials purchasing • Payment cycle for Sellers: 1-3 Days • Eliminates GBLs • Eliminates GBL Correction Notices • Billing cycle for Buyers: 30 days • File turn incentive for rapid repayment • Improved Financial Supply Chain management • Simplified dispute resolution • Automated pricing updates • Easily Archived Data • Goal of DLA/DESC in CY 2000

27. Locations Vendors Enterprise Systems Division 1 Location 1 VendorA SAP Location 2 VendorB Division 2 Location 1 PeopleSoft Location 2 Div A Subsidiary 1 Location 1 DSS/CFM Div B Vendor C Location 2 Subsidiary 2 Div C Location 1 Oracle Location 2 PowerTrack Provides Centralized Visibility Across Disparate Systems for Multiple Business Partners

28. What PowerTrack Customers have in common: • Looking to save money • Looking to increase internal efficiencies • Looking for a competitive edge in the marketplace • Looking to stay ahead of technology’s advance • They recognize that business is changing …..

29. Questions and Answers