Missouri Association of Manufacturers Freight Savings Program

MAM Member Benefit
Freight Savings Program

Freight Savings Program Overview

Understanding that freight costs can be one of the largest operational expenses for manufacturers, the
Missouri Association of Manufacturers and Priority Logistics have partnered to present a unique and
exclusive performance-based Freight Savings Program for MAM members that will:

 Reduce freight transportation expenses across all freight categories for both domestic and
international shipments.
 Establish negotiated freight rates for your company’s requirements without hidden fees,
charges, markups or bogus discount rates.
 Simplify your shipping process and eliminate ongoing price increases.
 Enhance delivery lead times and reduce damage claims.
 Show how freight can become a profit center for your company.

Freight transportation is one of your largest operational expenses. Unlike the traditional quote process,
we sit on the same side of the table as you, and create a plan for you resulting in the lowest possible
costs, while at the same time improving performance. MAM’s Freight Savings Program uncovers
savings opportunities in your supply chain which has resulted in an average of 32% in freight
transportation cost reductions for dozens of manufacturers and distributors since 2001.

Priority’s unique and completely transparent approach to freight management means our members will
be able to better control their freight management spend, and deliver more profit to their bottom line.

 100% Pay-For-Performance  Access Group Buying Power
 Little or No Change in Current  Get Weekly Savings Reports
Process Via Email
 No Upfront Costs and No Long-  100% Success Rate
Term Contracts
 Decrease Transit Time and
Reduce Inventory Costs

Missouri Association of Manufacturers Freight Savings Program | PAGE 1
Managed By Priority Logistics Inc | 10851 Mastin Blvd, Overland Park, KS 66210 | Ph (913) 754-2065

MAM Member Benefit

How It Works

1. We work with you in a collaborative and consultative manner.
2. With your current costs as a baseline, we perform an in-depth analysis of your transportation
invoices and current methods.
3. Working with our carrier partners (which may be your current carriers), we develop a pricing
structure that reduces direct costs and gives the option of utilizing multiple carriers, based on
your service requirements.
4. Our rates are possible through a combination of industry relationships, experience and a
proprietary rate structure.
5. Once the pricing is agreed upon, we publish the tariff in your company’s name and you continue
to deal directly with your current carrier reps. Your company pays the carriers directly, free of any
broker markup.
6. You receive weekly Excel reports on your shipments prepared by our freight analysts. Every bill
is reviewed in detail to make sure billing is correct.
7. Our income is determined based on a percent of the savings realized. If we don’t save you
money, we don’t get paid.

Case Studies

 IBT: Overall freight transportation expenses reduced by 56%. Freight collect program improved
by over 78%. Carrier portfolio cut from 178 providers to 6 providers. Inventory and shipping
system remodeled to JIT program. Damage claims reduced from over 5% to less than 1%.
Established freight program as new profit center for company.

 Permacel/Nitto Denko Automotive: Overall freight transportation expenses reduced by almost
30%. Carrier portfolio reduced from over 30 providers to 8 providers. New revenue stream
equivalent to 3% of all LTL freight costs established. Shipments between Mexico & United States
cut from 10 middlemen to 3 middlemen. Delivery lead times improved by more than 50%.

 Eiko: Overall freight transportation expenses reduced by 43%. Carrier compliance improved
from approximately 50% to 100%. Damage claims reduced from over 2% to less than 1%.
Delivery lead times enhanced from approximately 3-5 days to 1-3 days.


MAM Member Benefit

Testimonials

 "Priority was able to assess our needs and negotiate lower rates while improving our service and
lowering inventory levels."
 "Their program resulted in substantial savings. We recommend Priority to help control the costs
of LTL transportation."
 "Priority has taken six-figures out of our freight expense while increasing on-time performance."

Key Benefits

 On average annual cost savings of 20 – 40%, which frees up capital to expand your core
business
 No disruption of service, billing, carrier involvement or business operations
 Waived or greatly reduced accessorial charges and fees
 Transparent invoicing. All costs are disclosed for maximum control over freight management.

About Priority Logistics Inc.

Priority is a full-service freight transportation management firm based in Overland Park, Kansas. Started
in 1998, the company was founded by freight industry veterans tired of the confusion and lack of
consistency in the way freight rates are determined.

To eliminate this confusion and give shippers the
information they needed to lower rates and gain control
over their freight costs, the company decided to do
eliminate markups and margins and disclose all costs to
clients. With the savings percentage as the only source of income in their GainShare program, it assures
Priority is always acting in their client’s best interest by maximizing the long-term savings while ensuring
quality performance.

Priority provides all aspects of domestic and international freight from small-package to ocean freight.


MAM Member Benefit

Freight Savings Review
Documents

Confidentiality Agreement
Documents Needed
Freight Savings Survey

Missouri Association of Manufacturers

Freight Savings Program Manager
Jason Begnaud

Jason’s Contact Info:
913-754-2065 Main Number
913-754-2073 Fax
jason@mamfreight.com


MAM Member Benefit

Confidentiality and Non-Disclosure Agreement

PRIORITY LOGISTICS INC., and COMPANY agree to keep confidential any and all verbal or
written information ("Information") that is disclosed by the other party or its representatives. By
signing this Agreement it is acknowledged that; (I) the Information which is received and/or will
receive is confidential, (2) That neither party makes any representation nor warranty as to the
accuracy or completeness of the Information, (3) That neither party shall have any liability
resulting from our use of nor reliance upon the Information. Neither party will use, nor permit the
use of, the Information in a manner which could be detrimental to the other or for any purpose
other than for evaluation of transactions.

The COMPANY will not disclose the name of PRIORITY LOGISTICS or any of the Information
to any person other than their responsible officers or advisors. In addition, such Information will
be disclosed only to the extent necessary to those advisors (1) who need to know such
Information for the purpose of a transaction within the scope of this Agreement, (2) who are
informed of the confidential nature of such Information, (3) who are directed to treat such
Information confidentially, and (4) who will sign and deliver to PRIORITY LOGISTICS, if so
requested, an agreement substantially in the form of this agreement acknowledging the
confidentiality of the Information.

The COMPANY agrees that without the prior written consent of PRIORITY LOGISTICS they will
not disclose or permit any of their officers, directors, employees, or advisors to disclose to any
person the fact that discussions or negotiations are taking place concerning PRIORITY
LOGISTICS. PRIORITY LOGISTICS and COMPANY agree to return promptly to the other party
all original and duplicate copies of the Information, without retaining any copies, should our
discussion terminate or at an earlier date if so requested by the other party.

The Information provided under this agreement is the compilation of trade secrets belonging to
PRIORITY LOGISTICS. The COMPANY agrees to indemnify and hold PRIORITY LOGISTICS
harmless from and against all losses, claims, damages, expenses and liability (including costs
and attorney's fees) which PRIORITY LOGISTICS may incur and which arise out of actions,
failures to act or statements made by us or our agents and relating to this Agreement. This
agreement shall be governed and construed in accordance with the laws of the State of Missouri
and the venue of legal action, thereon shall, at PRIORITY LOGISTICS' or its designee's option;
be Jackson County Missouri.

COMPANY: PRIORITY LOGISTICS INC.
Company Name:
Name (printed) Name: David Burdick
Title: Title: Vice President
Signature: Signature:

___________________________ ___________________________


MAM Member Benefit

Freight Savings Review
Thank you for taking the time to provide this information. Your answers to the questions on the following
pages will help us give you an accurate and guaranteed savings level you can expect from the Freight
Savings Program. This is not a forecast but a guaranteed minimum level of savings. Further areas for
savings may be found once we are authorized to negotiate on your behalf. If you have any questions,
please contact Jason Begnaud at Jason@mamfreight.com or 913-754-2065.

Along with your answers to the questions on the following pages, we also need the following:

1. For Domestic Freight Analysis: Copies of at least 30 days of your most current invoices for all
methods of transportation including LTL (Less Than Truckload), Air, Ocean, Truckload and Small
Package.

2. For International Freight Analysis: For an accurate analysis of your international transportation
costs, please provide::

1. Invoices for ocean/air freight transportation for the previous 30 days

2. Any notices you might have received about impending rate increases for peak season or mid-
season General Rate Increases. These notices indicate what rates will be 30-45 days from
today) (Applies to ocean shipments only)

3. Customs entry packets from Customs brokers for the same shipments as above.
a. Customs broker’s invoices
b. Entry Summary CF7501 (Custom entry)
c. Commercial Invoice
d. Ocean Bill of Lading

4. A presumption is that the Customs Broker is billing for the drayage / delivery of the ocean
container from the port to the applicable warehouse. If this IS NOT the case and you are
being billed separately for the drays, we will need copies of those invoices as well.

5. An ACE run for the prior 6 months in excel format that would list the entry numbers, entered
values, duty rates, etc. This will provide me with an excellent overview of the volume of
business you are moving, duties you are paying, etc. It will help immensely for compliance
overview purposes as well.

Thank you for taking the time to complete this information. If you have questions, please contact Jason
Begnaud at jason.begnaud@prioritylogistics.net or 913-754-2065.

Please fax or email all documents to your MAM
Freight Savings Program Manager Jason Begnaud.
(FAX 816-756-2954 or email to jason@mamfreight.com)


MAM Member Benefit

1. List any alias names for your company:

2. List all shipping locations including: Name, Address, City, State and Zip Code, Phone #,
Contact Name:

3. List the LTL Carriers you currently are using:

4. Do you use an outside Freight Payment Service to pay and audit your Freight Invoices?

5. Which is more important regarding your shipping needs, COST or SERVICE TIME (or
both)?

6. What National Motor Freight Classification (NMFC) Item #’s do you ship?

7. Do you ship any hazardous materials?

8. Do you ship refrigerated or frozen products?

9. Terms of Payment Required to LTL Carriers: ______Days

10. Are any of your LTL shipments time sensitive?

11. What percentage (if any) of LTL shipments do you ship using the LTL carriers
“Guaranteed” Program (e.g. 40%).


MAM Member Benefit

12. What are the shipping/receiving hours at your location(s):

a. OUTBOUND SHIPPING (____ AM to ____PM)

b. RECEIVING (____ AM to ____PM)

13. Top five (5) Cities/States that you ship to, FROM your location(s):

14. Top five (5) Cities/ States that ship into your location(s):

15. If available, do you have the following shipping information?

a. Total Number of Outbound LTL Shipments YTD:

b. Total Weight of Outbound LTL Shipments YTD:

c. Total Number of Inbound LTL Shipments YTD:

d. Total Weight of Inbound LTL Shipments YTD:

e. Total # of freight claims filed with LTL carriers YTD:

f. Total # of freight claims paid by LTL carriers:

g. Total # of freight claims not paid by LTL carriers:

h. Average weight and number of pallet(s) per shipment:

Example: 2 pallets, 560 lbs., 48” x 48” x 36”


MAM Member Benefit

16. Please mark any accessorial shipments listed below that your company may require when
shipping to your customers:

a. COD Shipments: _________

b. Inside Delivery: _________

c. Lift gate Delivery: _________

d. Limited Access (Church, Construction Site, Schools, Etc.): ________

e. Notification Prior to Delivery: ________

f. Residential Delivery: _________

g. Extreme Length (single piece over 12’ long): __________

17. Do you ship to Canada or receive inbound shipments from Canada:
If yes, who is the customs broker that clears your shipments for entry into Canada, or from
Canada? Include name, address and phone below:

18. Do you ship to Mexico or receive inbound shipments from Mexico?
If yes, who is your customs broker that clears shipments for entry into Mexico, or from Mexico?
Include name, address and phone below:

19. Do you ship small package shipments under 150 lbs? If so, please list the carriers below
(i.e. FedEx, UPS Small Package, DHL, etc.).

Small Package Inbound YTD Cost:

Small Package Outbound YTD Cost:

20. Do you use a local cartage company(s) in your area for shipments that deliver within a 25
mile radius of your facility? (List carrier name and phone)

20. Do you ship truckloads from your facility or direct from your supplier, or third party. If
yes, what truckload carriers do you use. (List carrier name and phone)

Please add any other information you feel is important relating to your transportation needs:


Missouri Association of Manufacturers Freight Savings Program

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