2014 ANNUAL CONFERENCE & EXHIBITION

1. 2014 ANNUAL CONFERENCE & EXHIBITION New Transportation Paradigm Demands Carriers Adopt ‘Supply Chain’ Mentality Planning Your NextIT & Finance Move June 16-18 Lincolnshire Marriott Resort Lincolnshire, IL

2. ATA Antitrust Statement All ATA meetings are held in strict compliance with applicable state and federal laws and ATA’s antitrust policies that prohibit the exchange of information among competitors regarding matters pertaining to price, refusals to deal, markets division, tying relationships and other topics which might infringe upon antitrust regulations. No such exchange or discussion will be tolerated during this meeting. As an attendee it is your duty to avoid improper conversations.

3. Thanks To Our Sponsors! Gold Sponsor Welcome Reception Sponsor

4. Thanks To Our Sponsors! Silver Sponsors Walk Around Luncheon Sponsor Banquet – Pre-Dinner Reception Sponsor General Luncheon Sponsor

5. Thanks To Our Sponsors! Bronze Sponsors Registration Desk Sponsor Coffee Break Sponsor Continental Breakfast Sponsor

6. Speakers Ben Cubitt, Transplace, Inc. Erika Matias-Goodman, US Gypsum Corp. Andy Miller, TMW Systems Moderator Carl Kirk, American Trucking Associations

7. Ben Cubitt Transplace

8. Transplace Size and Scale Transplace has successfully built a critical mass of supply and demand in the North American transportation marketplace – across all modes and regions. • Domestic & global scope • North American customer base • Global shipment flows • Critical mass of demand • 15 Million orders • 48 Million transactions annually • 4 Million shipments annually • $5+ Billion managed spend • Critical mass of supply • Thousands of carriers under contract • Multi–modal network • Business process excellence and Lean Six Sigma execution • Inbound and Outbound shipment execution excellence • Focus on granular information on shipper side • Focus on carrier communications excellence on the capacity side

9. Technology and Service Offerings • LEAD LOGISTICS PROVIDER (LLP) • Full Transportation Outsourcing • Transportation Provider Contracting • Shipment Control Centers • Inbound Freight Management • Freight Bill Audit & Payment • Co-Loading Innovation • $3.0 BILLION TOTAL SPEND MANAGED • LOGISTICS CONSULTING SERVICES • Benchmarking • Transportation Procurement • Network Analysis & Design • Professional Services Consulting • Joint Lean Six Sigma Projects • $1.5 BILLION TOTAL SPEND MANAGED Comprehensive MANAGEMENTSOLUTION • TECHNOLOGY • On-Demand TMS • Optimization • Highly Configurable • BI, Reporting and Analytics • Rapid Implementation & Integration • Documentation Creation & Management • $320 MILLION TOTAL SPEND MANAGED • CAPACITY PROVIDER • Single Source • Core, Committed and Primary • Brokerage • Spot • Dedicated Fleet • $550 MILLION TOTAL SPEND MANAGED Basic Basic Comprehensive TECHNOLOGY SOLUTION

10. Performance Scorecards – State of the Industry • Freight metrics and KPI’s are now on the C-Team (especially the CFO) agenda. Erratic fuel costs (and FSC impact on EPS), weather events (Hurricane Katrina to Polar Vortex 2014), and emergence of Supply Chain profession. • Shippers use TMS systems and 3PL relationships to generate BI reports. Rarely shared with carrier partners. • Shippers increasingly generating monthly Performance Scorecards shared with Core Carriers • Many carriers generate shipper scorecards, generally not shared with shippers • Shippers respond to data and fact based selling. TL carriers do not share industry trend / cost data as well as Rail / IM / LTL carriers. • Information sharing and a more comprehensive “network” score card could help shippers and carriers drive “network” efficiency.

11. Internal KPI Benchmarking KPI’s begin at a site or carrier level, then shippers want to benchmark performance across the network – by site, by carrier classification, etc.

12. External KPI Benchmarking 3PL’s can also provide collaborative benchmarks – across customers, by industry vertical, etc..

13. Carrier Merit or Award Programs Carrier Performance against established and communicated criteria are key inputs to carrier recognition programs – Carrier of the Year, Platinum carrier, etc.

14. Erika Matias-Goodman US Gypsum Corp.

15. Focused on Building Products and Specialty Distribution Leading brands, product innovation Excellent customer base Strong manufacturing and distribution network Expanding into global markets USG PROFILE

16. LEADING INDUSTRY POSITIONS USG 11% USG USG 32% 28% Market Share of U.S. Ceilings Systems Market Share of Gypsum Wallboard Distribution in U.S. Market Share of Gypsum Wallboard in N.A. #2 #1 #1 Source: USG estimates and SEC filings

17. Transportation Operations - Strategy

18. USG Carrier Performance Ranking USG scorecard ranks and classifies carrier performance – Gold, Silver, Bronze. Data driven, Performance KPI’s, color coding for easy visual management.

19. USG Carrier Scorecard USG provides carriers data on their volume and performance.

20. USG Carrier Scorecard USG scorecard focuses on all areas of performance – service, claims.

21. USG Carrier Scorecard USG scorecard ties back to performance levels – Gold, Silver, Bronze.

22. USG Carrier of the Year Criteria • Carrier maintained 4 consecutive quarters of consistent certification on USGs top 30 Scorecard. (Mandatory) • Carrier hauled at least 2500 loads for USG during the year. • Carrier provided service from multiple USG shipping locations. (Mandatory) • Carrier meets annual On-Time Delivery goal for current year (96% 2014). (Mandatory) • Carrier is EPA SmartWay certified. (Mandatory) • Carrier settled 100% of their claims within 45 days during the year. (Mandatory) • 80% of Flatbed trailers used to service USG are 102” wide and able to haul 49,000 pounds. • Carrier invests in technology to allow real-time information, e.g. • EDI Capable (ability to send unfiltered data) • Electronic On-Board Recorders (EOBR) • Geo Fencing

23. Performance Reports – TMS Carrier Portal • USG carriers have the ability to log into Transplace TMS portal • They can do this as often as desired (monthly, weekly, daily) • Three reports are available to help carriers monitor and optimize their performance • Status Updates Compliance • Shows how many of the required check calls have been entered and how timely they were submitted • Tender Acceptance • Shows the date/time a shipment is tendered, the response date/time by the carrier to accept or reject the tender, and the time difference between the two • Accept/Reject Detail • Shows the following details of any loads that weren’t accepted by the carrier: Origin/Destination, Pickup Date, and Transplace transaction number

24. Carrier “Shipper” Scorecards Carrier’s have “shipper” scorecards but these are generally for internal use only and not shared with the shipper.

25. Preferred Shipper Program Carrier’s survey responses and discussions consistently ranked economics and driver productivity as the keys to “preferred shipper” status

26. Are Network Scorecards in our future? Network efficiency and driver productivity (pay) is becoming the driving concern and focus for carriers. • Carriers will reward efficient shippers with capacity. • Keep the trucks and drivers moving. • 24/7 freight is very desirable • No touch, efficient freight • Keeping drivers becoming more important than finding loads. • Treat drivers with respect and as a valuable network asset. • Understand what impacts driver pay (miles per week). • Plan tender times, pick-up and delivery times to maximize miles per day. • Get drivers loaded and unloaded in target times. • Carriers want “partners at every level” • Pre-bid discussion and non-bid “”strategic lanes” • Want more flexibility “pick-up / delivery windows, equipment, etc” • Less rigid tender times, increase late day / weekend acceptance

27. Where is the market headed… • Will the economy shift into a higher gear with negative impacts on capacity? • Will the leverage shift from shippers to carriers? How fast? How strong? • Will shippers respond to carrier requests for changes in accessorials or modifications to drive network efficiency? • Will changes be collaborative or carrier mandates? • Can carriers negotiate changes with shippers - Some? Most? All? • Will carriers have to pursue indirect actions (swap up shippers / lanes) • Will industry “driver shortage crisis” force more collaborative network optimization?

28. Andy Miller TMW Systems

29. TMW Systems is best-known for transportation operations software Automates the workflow of the entire transportation process from order to cash Drives business execution, efficiency and profitability Facilitates visibility and transparency across all organizational departments TMW Systems Human Resources Purchasing Payroll Management Maintenance Customer Accounting Customer Service Drivers/Carriers Operations Dispatch Shipment Planning 5

30. Omni-Channel…what does it mean to the consumer? • Seamless customer experience across all touch points with a retailer • Shop and purchase goods online, in a store, from a catalog or a smartphone • Be able to pick up or have goods delivered anywhere • Ability to easily return good anywhere • High expectations are set across all retailers Experience

31. Omni-Channel…what does it mean to the retailer? • Tasked with offering exceptional flexibility and service to match that of leading retailers • Provide on the fly visibility to product availability for consumers • Provide multiple shipping and delivery options • Challenges with satisfying consumer demand SERVICE

32. Omni-Channel…what does it mean to Carriers and Logistics Companies? • Carriers must be willing to adapt to the changing procurement arrangements established by the retailer • Omni-Channel retailers utilize a network of distribution channels • The fixed environment is now becoming much more dynamic • Carriers can expect retailers to continually re-evaluate their distribution network Flexibility

33. Omni-Channel…what does it mean for Carriers and Logistics Companies? • Visibility to orders and the parameters around each order are imperative • Where are the orders coming from? • What day and time are goods to be delivered?

34. Omni-Channel…what does it mean for Carriers and Logistics Companies? • Adaptive Freight Rate Pricing • Exceptional service doesn’t come with a small price tag • Carriers and Logistics companies are adapting complex costing models • Retailers are focusing on network optimization

35. Omni-Channel…what does it mean for Carriers and Logistics Companies? • Primary challenges faced • Offering higher service levels typically underutilizes capacity • Requires more resources in an environment that already has a driver shortage • Speed of delivery is imperative, a smaller distribution footprint is typically a requirement to provide cross-dock operations closer to customers

36. Omni-Channel…what does it mean for Carriers and Logistics Companies? • Last Mile Delivery is now becoming more of a focus than ever • High consumer expectations have set the bar amongst retailers • Retailers are offering multiple delivery options to best suit the needs of the consumer • High Service standards are not only labor intensive, but also cause Carriers and Logistics Companies to operate less efficiently when compared to conventional distribution models

37. TMW Systems…how are we equipping customers for the Omni-Channel • Sophisticated Planning Requirements…. • Strict Appointment and/or Delivery Windows • Special Equipment Requirements • Driver Skillsets, shifts, and work rules • Mixed fleets with varying truck Capacities

38. Emerging Markets with the Omni-ChannelRetail Home Delivery • Business Requirements • Next day for traditional Online orders • Need for same day delivery rapidly growing • Coordination between Inbound product availability and outbound routes • Planning Challenges • Customer Volume and Locations change daily • 80-150 stops per route • Accurate driving times are crucial for scheduling

39. Complexities of Serving the Omni-Channel • A small example: • 15 trucks / 15 stops each • 1,800 possible combinations to think about and manage • It’s not just point A to point B, but rather point A to every other possible stop that could go with it!

40. What Does the Future of Omni-Channel Entail?

41. Thank You Questions?