Transportation Guru Vehicle Route Optimization

1. Transportation GuruVehicle Route Optimization

2. LLamasoft Overview We are: • The global leader in supply chain design technology & solution services • Focused 100% on supply chain modeling & scenario analysis • Headquartered in Ann Arbor, MI with support centers around the world We enable companies to: • Optimize their end-to-end supply chain operations • Reduce corporate risk and identify major cost savings • Perform continuous what-if analysis

3. Sample Customers

4. Technology

5. Supply Chain GuruA Complete Supply Chain Design Platform An Intuitive User Interface for complete control of Supply Chain Modeling and Design Activity A Supply Chain Intelligence Database with reference data, and pre-configured data connectors A Design Engine containing multiple integrated solvers, operations research algorithms, and simulation engines Vehicle Route Optimization NetworkOptimization EnterpriseSimulation InventoryOptimization

6. Four Components of a Comprehensive Design Solution • Network Validation • Customer Service • Operational Metrics • Safety Stock • Service vs. Inventory • Replenishment Frequency • Inventory • Optimization • Simulation • Network • Optimization • Vehicle RouteOptimization • Optimal Transportation Routes • Inbound shipment consolidation • Outbound shipment consolidation • Facility Locations • Customer Assignments • Mode Selection

7. Transportation GuruCreating Multi-Stop Vehicle Routes Vehicle route optimization (VRO) that creates multi-stop vehicle routes • Uses optimization to design routes for: • Inbound Consolidation • Outbound Consolidation • Periodic Shipment Balancing • Continuous Moves Backhaul • Continuous Moves Interleaved Shipments* • Asset Planning* • Fully integrated within Supply Chain Guru Transportation Optimization Determine optimal multi-stop routes using detailed cost models * Coming soon!

8. Network Optimization vs. Vehicle Route Optimization Network Optimization Design supply chain network using point-to-point lanes and simplified cost models Vehicle Route Optimization Determine optimal routes for inbound and outbound shipment consolidation

9. Mission of Transportation Guru

10. Transportation Design Questions • How should I consolidate shipments to build multi-stop routes? • Should we ship direct from the vendor or go through the DC? • How much savings will I see if I optimize my baseline existing routes? • Are there backhaul opportunities? • How do my routes change with low, average, and high volume shipment levels throughout the year? • Are there network synergies? Opportunities to consolidate transportation systems among business units? • How do route costs compare to LTL and parcel costs? • Should we consider a 3PL in addition to our private fleet? • How do I balance my shipments across a weekly schedule? • What is my allocated route cost by shipment? • How do I balance my facility costs versus transportation costs? • How do I balance my drivers workloads?

11. Transportation Guru Data Flows Inputs (Required) Outputs Route Summary Sites Stop Details Shipments Vehicle Route Planning Delivered Shipments Transportation Assets Segments Asset Availability Invalid Shipments Rate Unroutable Shipments Inputs (Optional) Relationship Constraints Business Hours * Valid Schedules Transit Override * Periodic VRP Only

12. Example VRP Parameters and Constraints • Shipments • Delivery and pickup time windows • Priority • Fixed and variable loading/unloading time • Business hours • Road distance & transit time calculations via PC*Miler, ESRI, Bing • Assets • Capacity: Weight, Cube, Units • Second compartment capacity • DOT Hours of Service • Max stops, distance, time, waiting time per route • Max distance between stops • Round trip or one-way • Rates • Per distance, stop charges, fuel surcharges, min charge, discounts, driver hourly, service unit cost • Step functions: banded mileage, first stop free • Location based rates: origin, last destination, farthest destination • Compare LTL/Parcel rates – SMC3 RateWare XL, FedEx, UPS integration • Relationship Constraints • Prevent products from shipping together • Force products on certain assets • Prevent assets at certain locations • Prevent certain shipments being combined • Force certain assets with lift gate to locations

13. Transportation Guru Software Demonstration

14. Algorithm Overviews

15. Standard Inbound or Outbound • Utilizing Standard VRP Optimization There are many ways to apply standard VRP optimization technology. Here are just a few examples: • Instead of running LTL lanes, multi-stop vehicle routes can be run to reduce overall costs • Optimize existing baseline routes to identify better shipment consolidation and route sequences • Create high, average, and low volume routes to address seasonality shipment volume shifts • Adjust transportation constraints to identify how route structure changes • Determine how Department of Transportation (DOT) regulation changes affect route structure

16. Periodic Vehicle Route Optimization • Utilizing Periodic VRP Optimization There are many ways to apply periodic VRP optimization technology. Here are just a few examples: • Identify frequency of deliveries or pickups balancing contract requirements and transportation costs • Determine delivery or pickup schedule for all locations while considering transportation system constraints • Balance shipment schedule throughout the week

17. Continuous Moves Backhaul Optimization • Utilizing Backhaul Optimization There are many ways to apply backhaul optimization technology. Here are just a few examples: • Retailers can pick-up returns from stores following deliveries and bring them back to the DC • Following deliveries to retail stores, trucks can pick up materials from suppliers and bring to warehouse • 3PL or carriers can make deliveries and then fulfill pick-up requests on the way back • Direct store delivery trucks can pick up empties or expired goods following store deliveries

18. Continuous Moves Interleaved Shipments Optimization • Utilizing Continuous Moves Interleaved VRP Optimization There are many ways to apply Interleaved VRP optimization technology. Here are just a few examples: • Retailers can create routes that move product between stores • Warehouses can transition inventory to other facilities with inter-facility routes • New product and returns can be considered on one route • 3PL’s can consider delivery and pickup requests during a single route

19. Asset Planning Optimization • Utilizing Asset Planning VRP Optimization There are many ways to apply Asset Planning VRP optimization technology. Here are just a few examples: • Determine optimal private fleet size • Utilize optimization parameter to identify how many assets are needed to run optimal routes • Minimize private fleet and 3PL carrier assets • Consider which 3PL carriers to use in addition to private fleet

20. Transportation Guru Use Cases

21. Transportation Guru Customer Use Cases

22. Last Mile Delivery Company

23. Large Petroleum Company

24. >$20B Large U.S. Grocery Wholesaler

25. Tanzania Medicine Delivery