The document outlines a logistics project proposal by GXS to develop an integrated logistics application suite targeting small and medium enterprises, driven by the increasing need for visibility and efficiency in global shipping and transportation management. Key features include cost-saving strategies, competitive analysis, and subscription pricing models, aiming for a market size of $2.5 to $3 billion. Immediate actions include identifying potential customers and overlapping vendor networks to optimize the sales approach.

1. GXS LogisticsProject OverviewPre-DP0S. Livingston SmithGlobal Product ManagerGE Exchange Services 1Q01

2. Project Overview ContentsMarket Drivers & NeedsCurrent OfferingProposalTarget marketProposed Sales PositioningPotential ROICompetitive LandscapeCompetitor FOSTop Competitors Differentiation Benchmarking Potential Market Size Market Pricing Market Capacity Options Recommendation

3. Project Overview eLogistics DriverInventory29%Transport56%Warehousing8%Administration - 6%Other - 1%COST OF TRANSPORT & INVENTORYE-PROCUREMENT & E-COMMERCE IS DRIVING ADOPTIONMAIN COMPONENTS OF U.S. LOGISTICS COST: 1998Percent of ExpenditureSource: U.S. Department of Commerce; CASS Logistics; AT Kearney

4. Project Overview Market NeedsCUSTOMER NEEDSActionable Shipment Visibility Global Shipping CapabilityControl Service Provider CostsManage Shipments-in-transitManage Service ProvidersImprovements In Logistics That Reap Shorter Cycle Times, Reduce Inventories And Result In More Accurate Deliveries

5. Project Overview ProposalLOGISTICSComplete Solution for EM CustomersBut GXS is in the position to also capitalize on anever growing need for online logistics applications in general through the development of Private Logistics MarketplacesAnalysts predict logistics trade exchanges will account for a market space of $2.5 to $3 billion annually (Cap Gemini Ernst & Young)Leveraging Information to Optimize the Flow of Goods, Thereby Reducing Cycle Times and Improving Capital Productivity

6. Project Overview ProposalGXS-HOSTED LOGISTICS APP SUITEIntegrated Into ICP

7. Meeting 90% or MOST of FOS/Req.'s in Version 1.0

8. Customizable to Support Private Exchange Opportunity

9. Version 1.0 Deliverable within 6 Months of DP0 Date

10. Necessary ITL Services to Support Global Trade

11. Phased Integration with Existing GXS Applications

12. Released in Order of N.A., Europe, Asia, Latin AmericaProject Overview Target MarketSMALL & MEDIUM ENTERPRISES (SME)Primary SIC CodesManufacturing, Retail, Transportation, and Electronic CompaniesRevenue $250 to $1BillionNumber of Employees 0 to 500 total (not on site)IndustriesManufactures, Retailers, Transportation, Communications, & Utilities (D&B Tool Can’t Separate Last 3)Region(Initially) US excluding Puerto Rico the Virgin Islands

13. Project Overview ROI DiscussionCOST SAVINGSLower Overall Freight Costs Through Visibility Of Process To Various Invested Groups

14. Increased Optimization Of Transportation Providers

15. Reduced Planning Time

16. Reduced Labor Costs (Which Could Run As High As 40% Reduction)

17. Improved Customer Service (Source: AMR, Inc., Brian Martin, 12/00)

18. Business Case ROI DiscussionRYDER CASE STUDYApp enables transportation personnel to select carriers with best prices, most efficient routes and highest reliabilityrankings within a shipping lane

19. That is, all the diverse transportation options between points A and B-including any combination of ocean shipping, rail and trucks.

20. Logistics providers offer systems for customers (like Whirlpool), which can't afford to build those systems themselves.

21. Whirlpool chose Ryder because of its "ability to crunch out results so that you can see many possibilities before you make a decision."

22. Armed with logistics data, Whirlpool has cut operational costs significantly, percentage-wise “in the double digits”.

23. Whirlpool has also increased its buying power with truck & rail companies, reaping volume discounts.Project Overview Competitive LandscapeVERTICAL EXCHANGESPROVIDERS EXPANDING TO ALL AREASTHIRDPARTYLOGISTICS /CARRIERSShipChem.comGlobalcoal.comRetail.come-Steel.comRai1.come.Chemicals.comPetroDex.comFedEx Logistics

24. UPS Logistics

25. Schneider Logistics

26. TransitGroup

27. TransPlace*

28. HubGroup

29. Maersk/RailVan

30. MarkVII

31. CH Robinson

32. GST

33. DanzosLOGISTICS MARKETPLACESEXECUTIONTOOLS/PORTALSFreightQuote

34. NTE (LTL)

35. CargoForLess

36. ShippingAuction

37. Webmodal

38. BestCarrier

39. Logistics

40. GoCargo

41. eLogistics

42. TransPortal

43. Transportation (Yellow)

44. CarrierPoint (UPS)

45. CargoSphere

46. FreightGate

47. FreightDesk

48. Steelroads

49. Arzoon

50. iLinkGlobal

51. TransPlace

52. Nestivo

53. nPassage

54. TradeCompass

55. Decartes- Load Matching -Source: Kenneth Wickmen, GE TransportationSPECIALIZED FUNCTIONSSOFTWARERailconnect

56. PaymentProcessing

57. Vastera

58. Netlinx

59. ClearCross

60. Capstan

61. Kleinschmidt

62. IntelliTranz

63. Fenix (UP Tech)

64. GEIS

65. IBM

66. From2

67. G-log

68. FreightMatrix (i2)

69. eTransport

70. Sabre

71. Celarix

72. Neomodal

73. TradientProject Overview Features of ServiceLOGISTICS ACTIVITY (Translates Into) FUNCTIONALITYProcure Logistics Services RFQ

74. Manage International Paperwork/Service Providers International Doc/Assistance

75. Optimize Service Choice and Shipments Consolidate/Provider Assist

76. Manage Shipment Releases to Service Providers Tender Notification/Accept

77. Manage In-Transit Inventory Real Time Event Status True Exception Alerts Contingency PlansManage Customer, Sales, and/or Sourcing Inquiries Event Status Access Advance Shipping NotificationMonitor/Control Service Provider Service Levels Event Status Analysis

78. Managing Service Costs Cost/Agreement Analysis Event/Agreement ReportingPaying Service Providers Event/Payment Triggers

79. Reporting on Transportation “Profit Center” Financial Reporting Landed Cost AnalysisManaging Service Provider Systems Ease of Use/IntegrationEach Provider Interprets Each Slightly Differently

80. Project Overview Top CompetitorsSource: e-Global Logistics, Stephens, Inc. 11/00

81. Project Overview BenchmarksMARKET SIZETMS Revenue/spending? Segmented by Company Size, RegionNot the Best Measurement Not Integrated, Out-of-the-box, Limited SolutionTraditional Logistics Market Spending? Segmented by Admin Costs, Carrier ChargesNot the Best Measurement Cannot Extrapolate Software or Applications Spending From Admin NumbersSupply Chain Management By Logistics Application?More Accurate Measure of Revenue Available for Application Spending

82. Project Overview Customer PricingSUBSCRIPTION FEEPRO: Buyer is Encouraged, Rather Than Discouraged, to Use the Service as Often As PossibleCON: Buyer May Not Use Service Often Enough to Justify Subscription FeeControl Risk by Stipulating a Minimum Subscription Period and Up-front Cash PaymentCredit: Stephens, Inc.

83. Project Overview Pricing ExamplesCompetitor/Potential Partner #1 Hosted SolutionSubscription and Set Up Charge Range between $500k to $1MTransaction Fees Range $2.00 to $2.20 Average # of Transactions Per Customer Range between 2500 to 250000 per moMaintenance and Service Fees Range 18% Set Up or 20% perCompetitor/Potential Partner #2 Hosted SolutionImplementation Fee Based on number integrated $3000 per non-community supplier $.50 for every dollar of subscription feeSubscription Fee Based on forecast shipments & ordersMonthly Minimum The average # of shipments (10,000 to 20,000, with 5,000 orders per)

84. Project Overview Immediate ActionSALES OPPORTUNITYTo Determine Customer Base:Overlap of List with D&B Targeted Metrics List

85. Overlap of Truncated EDI List with D&B Targeted Metrics List

86. Domestics Customers OnlyTo Determine Carrier Base:Overlap of List with D&B Targeted Transportation SICs

87. Overlap of EDI Vendor Community with D&B Targeted Transportation SICs

88. Overlap of ECSC Community with D&B Targeted Transportation SICs

89. International and Domestics Carriers Identified SeparatelyProject Overview Immediate ActionTotal Business Count: 1,286,393

90. Project Overview Immediate ActionCustomersTHE <SNIP> HAS 13,557 REGISTERED VENDORSProvided by <SNIP>, <SNIP> OwnerGSN Overlap with D&B SIC List Pull 41.39% of the GSN Vendors Fall Within the Logistics SIC D&B CriteriaGSN Overlap with D&B Industry List Pull 31.00% of the GSN Vendors Fall Within the Logistics Industry D&B CriteriaTHE EDI SAMPLE LIST HAS 9,926 VENDORSEDI Sample List Provided by ECM Group4,069 Vendors When Dupes & Int’l were EliminatedEDI Community Overlap with D&B SIC List Pull42.58% of the EDI Vendor List Fall Within the Logistics SIC D&B CriteriaEDI Community Overlap with D&B Industry List Pull24.26% of the EDI Vendor List Fall Within the Logistics Industry D&B List

91. Project Overview Immediate ActionTHE <SNIP> HAS 13,557 REGISTERED VENDORS<SNIP> Overlap with Transportation SICs*Total of 1,486 Domestic CarriersTotal of 142 International VendorsTHE EDI LIST HAS 30K REGISTERED VENDORSEDI Overlap with Transportation SICs*Total of 3,113 Domestic CarriersTotal of 4,785International VendorsTHE ECSC LIST HAS 392 REGISTERED VENDORSEDI Overlap with Transportation SICs*Total of 7 Domestic CarriersNo International VendorsCarriers* Overlap May Exist Between Int’l & Domestic

92. Project Overview Immediate CapacityLocal Trucking no StorageArrangement of TransportationTrucking except Local

93. Project Overview Immediate CapacityLocal Trucking no StorageTrucking except LocalArrangement of Transportation

94. Project Overview ArchitectureHow is it Done?Most Logistics Applications are Base on EDI Mailbox “Shadowing”Via Request or “Ease Dropping” (LTS)Maps / EDI Documents (ANSI & EDIFACT) Needed for CollectionTMSExcel Sheets Admin - FaxPrimary ProviderS1Carrier/ForwarderS2UserEDIS3OccasionalWEBCarrier OptionLogistics ApplicationIntelligence Option

95. Project Overview Option OneBUILD / LEVERAGE LTSCon: Carrier by Carrier Planning -No Workflow Con: Aggregation of Information - No New Information Created (Ex. Contingency Plans)Con: No Content (Document Assistance)Con: Commitment to Build Every Additional App FeatureCon: Intuitive Sense of TimingPro: We Own <SNIP>Pro: We Control <SNIP> CompletelyWasn’t Successful the First Time

96. Project Overview Option TwoADOPT / PROCURE PARTNERCon: May not Have Complete <SNIP> Control (May Be Possible through Equity Investment)Con: New BD Process Has No Time Estimate (Worst Case: Engineering Build Estimate)Pro: Partner Relationships with Carriers (Maps Already Built)Pro: Workflow Built In: Door-to-door Planning & TrackingPro: New Information: Contingencies built inPro: Content (ITL) already IncludedControl Over MGPP Must Be Determined Upfront

97. Project Overview Option ThreeLEVERAGE CIG / RECOMMENDATIONPRO: Sister Companies Have Committed to <SNIP>GE Power Operational 2Q01GE Plastics Operational 2Q01PRO: <SNIP>Leverage Due Diligence Work to Shorten Acquisition TimePRO: <SNIP> Beginning NegotiationsPotential AlliancePRO: <SNIP>PRO: Meets 4Q00 Preliminary Engineering Hosting RequirementsPRO: Three-way Purchase Strengthens Buying PositionCON: NPI Team Needed Prior to DP0 for EvaluationCON: <SNIP>Internet Speed Decision Necessary

98. Project Overview SummaryTHANK YOU