***Comments Appreciated*** This presentation gives an overview of transportation lanes in SAP TM and SAP TPVS (the functionality is very similar in those products). It talks about the concept of the transportation lanes, the levels at which data exists, and the granularity of transportation lanes along with guidelines on deciding the granularity. Also, it goes into different carrier selection strategies and how priority and cost interact. This presentation does not go into the priorities for broadcast tendering (which is functionality in SAP TM 8.0 and onwards). That will come in update version 3.0.

1. Transportation Lanes in TM and APO Version 2.0

3. Lane Overview Somerset, NJ Paresh Bhagwatkarc PA1 PA2

4. Structure of Transportation Lane Shipping Point US01 > PA1 TL LTL Std. Bulk Truck SNBO QLTY SVTN Lane Header Means of Transport (MOT) Carrier Paresh Bhagwatkar

5. Transportation Lane Design Paresh Bhagwatkar

7. Granularity of Lanes Paresh Bhagwatkar Point-to-Point Point-to-Point Point-to-Point Point-to-Point Zone-Zone Point-to-Zone Point-to-Zone Type SPFPT1 > PLT1 Plant Shipping point US-FRPT > US-PA1 Customer Shipping Site (zone) SPFPT1 > C12345 Customer Shipping point Example Destination Origin US-FRPT > PLT1 Plant Shipping Site (zone) US-TX1 > US-PA1 Transportation Zone Transportation Zone US-FRPT > US-USAPA1 Transportation Zone Shipping Site (zone) SPFPT1 > US-PA1 Transportation Zone Shipping point

8. Lanes from a Site and Shipping Point(s) Plant 1 Plant 2 Plant 3 Site Freeport, TX Plant 4 Customer or Zone Point-Zone Zone-Zone Paresh Bhagwatkar

10. Sequence of Lane Search Paresh Bhagwatkar Customer Shipping point Point-to-Point 1 Customer Shipping Site (zone) Point-to-Point 2 5 4 3 Sequence Destination Origin Type Transportation Zone Transportation Zone Zone-Zone Transportation Zone Shipping Site (zone) Point-to-Zone Transportation Zone Shipping point Point-to-Zone

11. Lane Overview Somerset, NJ Zone NJ Cust 1 Cust 2 Cust 3 Paresh Bhagwatkar Zone PA1 Zone PA2

13. Carrier Cost and Priorities Paresh Bhagwatkar

15. Carrier Selection Strategy and System Behavior Paresh Bhagwatkar Used as a tie-breaker when carriers tie at cost System gets cost for each carrier Priority is mathematically added to cost Resulting number is used for sorting in increasing order Cost + Priority Used when service is much more important than cost. Priority is used as a magnifier of differences in cost. System gets cost for each carrier Cost and priority are mathematically multiplied Resulting number is used for sorting in increasing order Cost * Priority Used when service is most important and cost is not a consideration Carriers from lane ranked in increasing order of priority (Priority 1 being high) Priority (only) Used when lowest cost carrier is desired Carriers from lane ranked in increasing order of cost Cost (only) No real applicable scenario Carriers from lane ranked in the order of maintenance of lane Neither Cost Nor Priority Usage System Behavior Carrier Selection Strategy (on MOT level)

16. TSP Selection Strategy - Neither Cost Nor Priority Lane Data TSP Selection Result $1000 2 Swift $1200 1 Celadon Trucking $1000 4 CH Robinson $1100 3 Schneider National Cost Determined During TSP Selection Priority on lane Carrier Swift 4 3 2 1 Rank Celadon Trucking CH Robinson Schneider National Carrier

17. TSP Selection Strategy - Cost (only) Lane Data TSP Selection Result $1000 2 Swift $1200 1 Celadon Trucking $1000 4 CH Robinson $1100 3 Schneider National Cost Determined During TSP Selection Priority on lane Carrier $1200 $1100 $1000 $1000 Calculation Result (Cost) Celadon Trucking Schneider National Swift CH Robinson Carrier 4 3 2 1 Rank Comes after CHR because of the order of maintenance in the lane Summary

18. TSP Selection Strategy - Priority (only) Lane Data TSP Selection Result $1000 2 Swift $1200 1 Celadon Trucking $1000 4 CH Robinson $1100 3 Schneider National Cost Determined During TSP Selection Priority on lane Carrier CH Robinson 4 4 3 2 1 Rank Schneider National 3 Swift 2 Celadon Trucking 1 Carrier Calculation Result (Priority)

19. TSP Selection Strategy – Cost + Priority Lane Data TSP Selection Result $1000 $1200 $1000 $1100 Cost Determined During TSP Selection 1002 2 Swift 1201 1 Celadon Trucking 1004 4 CH Robinson 1103 3 Schneider National Cost + Priority Priority on lane Carrier Celadon Trucking Schneider National CH Robinson Swift Carrier 1201 4 3 2 1 Rank 1103 Priority used as tiebreaker 1004 Priority used as tiebreaker 1002 Comment Calculation Result (C+P)

20. TSP Selection Strategy – Cost Times Priority Lane Data TSP Selection Result $1000 $1200 $1000 $1100 Cost Determined During TSP Selection 2000 2 Swift 1200 1 Celadon Trucking 4000 4 CH Robinson 3300 3 Schneider National Cost * Priority Priority on lane Carrier CH Robinson Schneider Swift Celadon Carrier Though CHR is low cost they come last 4000 4 3 2 1 Rank 3300 Swift comes second though they are lowest cost 2000 1200 Comment Calculation Result (C+P)

22. Tweak: Cost + Priority – Spacing Out Priorities Lane Data TSP Selection Result Exaggerated Example $1010 $1200 $1000 $1100 Cost Determined During TSP Selection 1210 200 Swift 1300 100 Celadon Trucking 1400 400 CH Robinson 1400 300 Schneider National Cost * Priority Priority on lane Carrier CH Robinson Schneider Celadon Swift Carrier 1400 4 3 2 1 Rank 1400 1300 Swift costed marginally more than CHR. If priorities were maintained in steps of 1 CHR would have been chosen 1210 Comment Calculation Result (C+P)