CUSTOMER SOLUTION STORIES BMW North America MultiService Supply

CUSTOMER “SOLUTION STORIES”

BMW North America • Multi-Service Supply Chain Solution for BMW’s Senatobia, MS and Jacksonville, FL PDC’s – Averitt Customer for 5 years – Service to over 100 BMW dealer locations in the Southeast • Services Include: – On-site receipt of material and loading of outbound trailers • Senatobia and Jacksonville – Direct-to-Dealer dedicated routes • Jacksonville (for East Coast FL and Atlanta) • Unattended overnight deliveries – LTL Relay bypass for accelerated service times – Dedicated Deliveries through LTL Service Centers • Early AM delivery schedules • Liftgate service as required by dealers

BMW North America • Inter-DC Stock Transfer Program – Daily moves from PDC’s in Mt. Olive, NJ; Senatobia, MS; and Jacksonville, FL into and out of a meet point in East TN – Team service – 24 -hour turnaround for any DC: DC transfer

Cracker Barrel • Averitt manages the national distribution of Cracker Barrel retail products to 420 stores • We provide management and transportation resources for all outbound shipments • Dedicated transportation resources include 45 tractors and 54 drivers • Averitt supplements the dedicated resources with LTL and Truckload services • Additional responsibilities include continuous improvement via on-going route reengineering and managing inbound transportation

Cracker Barrel Established a visible company fleet without the operating and maintenance costs

Mercedes Benz • Averitt is responsible for the management of all domestic inbound transportation into the Vance, AL assembly plant • Averitt has on-site personnel that act as a single point of contact for all transportation-related issues • All Averitt business units involved with Mercedes Benz, providing a seamless interface • 151 Drivers operate a dedicated fleet • We manage a 400, 000 sq. ft. sequencing center for multiple inbound suppliers with up to 300 associates providing JIT delivery of parts in sequenced order.

Mercedes Benz • Inventory management, including parts sequencing • Dedicated inter-facility moves • Transportation for inbound materials

Osh Kosh B’Gosh • Importing/exporting • Port. Side distribution • Reduced port to distribution center cycles by three days and transit times by six.

General Electric • • • Cross-country dedicated truck program Managing exports to Germany and imports from the Far East Handling inbound and outbound LTL and truckload transportation Coordinating time-critical shipments Operating inter-plant dedicated moves in Cleveland, OH

Cracker Barrel PROBLEM • Systematic problems with their dedicated fleet and distribution system were creating inefficiencies and service failures • Needed a reengineered, visible company fleet without all the operating and maintenance costs

Cracker Barrel SOLUTION • Averitt developed an efficient, customer-centered delivery system with professional drivers ensuring customer satisfaction at every delivery • Averitt’s fleet of tractors provides transportation of retail products to hundreds of locations across dozens of states • On-site personnel act as a single point of contact for all transportation-related issues

Cracker Barrel RESULTS • Transportation savings - due to reduction in fleet size • Administrative savings - streamlining of routing plans and designing and implementing a more efficient delivery system • Claims reduction – on-site personnel works to reduce claims through improvements in loading/unloading processes • Improved on-time service performance • Improved driver retention rate • Consistency in delivery times • Operational stability • Overall continuity in the partnership

Cracker Barrel RESULTS • "Averitt had an excellent plan not only for our day -to-day needs, but for overflow situations involving our retail products. They also were prepared for peak times, like Christmas, when we have more products that need to be shipped to our retail outlets. They were a good fit for us in terms of their corporate culture and style as well. ”

Food Products Manufacturer PROBLEM • Need to reduce costs and streamline operations at multiple manufacturing/distribution facilities • Mode selection and carrier management strategies were not achieving optimum efficiencies and value – They had been shipping primarily LTL and truckload with little consolidation and had been working with only a single truckload carrier

Food Products Manufacturer SOLUTION • Averitt explored new modes of transportation and designed them to ship more direct • Averitt performs carrier management services, including soliciting carriers, negotiating rates, setting up contracts and evaluating performance • Averitt implemented transportation management software that enables dynamic outbound load planning

Food Products Manufacturer SOLUTION • Employed two logistics coordinators who: – Coordinate all inbound and outbound transportation – Build daily load plans and tender shipments based on EDI reports accessed remotely through the web-native TMS – Serve as primary contacts for day-to-day transportation management issues and handle all aspects of shipment tracking and freight bill audit and payment • Dedicated fleet to reduce need for expedited shipments

Food Products Manufacturer RESULTS • Significant savings resulting from: – More streamlined operations – Better rates from carriers – Fewer exceptions on shipments – Improved communications between customer service and transportation providers, enabling faster returns on inventory – Operational efficiencies due to a much higher degree of load consolidations

GE Advanced Materials, Quartz PROBLEM • Need to manage multiple regional plants and warehouses in a more cost effective manner • Need to increase space utilization at their plants/warehouses and increase the efficiency of shipments moved between plants • Need to shorten production times, order to delivery times and transit times on international shipments

GE Advanced Materials, Quartz SOLUTION • Inter-facility closed loop transportation: Averitt created a dedicated truck program with daily, closed loop runs between GE's warehouses and plants – Built on an efficient, coordinated schedule controlled by GE, this system has greatly reduced the space needed for material staging at the facilities and has dramatically increased production efficiencies

GE Advanced Materials, Quartz SOLUTION • Truckload transportation: Averitt allocated several road units for transportation of loads moving from quartz mines to plants and back. – Averitt built in optimum flexibility by allowing GE to work with drivers to manage delivery timetables – Averitt set up round-trip truckload moves to the origin points to improve efficiencies and reduce costs – This system has allowed GE to efficiently increase the amount of materials they can bring into their plants

GE Advanced Materials, Quartz SOLUTION • Importing/Exporting: Averitt has shortened cycle times for international shipments: – Reduced transit times on export shipments to Germany from 45 -35 days to 14 days with a more efficient endto-end process including an expedited FCL service – Speeding import shipments from the Far East through our Port. Side services: trans-loading shipments from ocean vessel to warehouse, building direct loads for transportation via truck and managing linehaul across the country

GE Advanced Materials, Quartz SOLUTION • Cross-country closed loop transportation: – A dedicated tractor and trailer moves weekly from northeast Ohio to the West Coast carrying both finished goods bound for domestic customers and goods to be exported to international customers – Bundled with our importing/exporting program, the unit picks up imported goods and return across country to GE’s plants in northeast Ohio

GE Advanced Materials, Quartz RESULTS • Streamlined operations • Lower costs • Increased production efficiencies • Increased inbound capacity • Drastically improved cycle times

GE Advanced Materials, Quartz RESULTS • Global Distribution and Logistics Leader: “Averitt took what was a costly transportation process and applied creative solutions for a superior cost effective program to meet our needs. ”

Osh Kosh B’Gosh • Operating Portside Consolidation/Deconsolidation centers (Los Angeles/Long Beach, Laredo, TX, Port Bienville, MS, Gulfport, MS and Charleston, SC • R/T Drayage- Vessel-Road distribution solution for Apparel and retail merchandise • Integrated solution utilizing warehousing/ distribution, TL and LTL services • Dock-Surge, Same-day release-Consol-ship • 3/2 Consolidation Ratio $. 03 per unit and 30 -24 days

Lexmark • • Mc. Allen, TX (Land. Port) 40, 000 ft 2 distribution facility Mexico northbound finished product Transload-Stage-Sort-TL/LTL/PKG Yard/Seal Control US southbound printer engines Transload-Stage-Sort-Verify-(TL) Forecast/Potential LGB transload

Ralph Lauren • Receive fluid, floor loaded trailers at DC • Segregate loads into shipments and crossdock • All items scanned to verify piece count and shipment integrity • Expedite program to meet individual retail store requirements • Appointment driven retail deliveries across the Southeast • A primary LTL provider in the Southeastern US

Large Lighting Customer • Origin Cargo management Averitt Hong Kong • Consolidate shipments from 60+ Vendors • – – – Verify Counts & Documentation Load Containers Initiate AES Customs Process Manage transportation to GE Plant – Hendersonville NC • • Customs Clearance Air / Ocean Truckload / LTL Sequence Parts Direct to the Production Line

BMW North America • In 2001, Averitt successfully earned the right to provide service parts distribution management and execution services to BMW North America. • Averitt’s initial operations for BMW began at their PDC in Senatobia, MS, where we assume responsibility for service parts shipments consigned to over 50 dealers in 10 states. • From Senatobia, Averitt’s LTL network is the method by which these shipments are delivered; the majority of which receive next-day service. • Thus far, Averitt has achieved on-time performance in excess of 97. 5% with a delivery expectation of no later than noon.

BMW North America • Recently, Averitt’s relationship with BMW North America has expanded to encompass 100% of the shipments from BMW’s new Jacksonville, FL PDC (opening in December) as well as responsibility for 8 additional states originating from the Senatobia, MS PDC. • The reason for Averitt’s continued success with BMW is our ability to provide next-day AM service to a large portion of BMW’s dealer base by leveraging Averitt’s extensive LTL service network and auxiliary services such as dedicated contract carriage and expedited transportation management.

BMW North America • On-site management at Senatobia, MS DC – – Receive shipments within the DC Verify counts Load trailers Initiate internal processes • Manage transportation to 58 dealers • Recently awarded new 3 -year contract – Addition of Midwest dealers at Senatobia DC – On-site transportation management at new Jacksonville, FL DC – Unattended, dedicated delivery system for selected dealers

Honda of America • Transportation and cross dock services for 3 automobile assembly plants, 1 motorcycle assembly plant, other manufacturing facilities in Ohio and Canada – Dedicated personnel – 3, 200 inbound material and returnable container shipments per month – 4. 3 million pounds per month – Next day delivery for 75 suppliers in the southern U. S.

Nissan North America • Averitt provides the inbound transportation for Nissan Motor Manufacturing in Smyrna, TN. • We combine our dedicated, truckload, LTL, and supply chain management services to the totally integrated solution necessary to meet the demanding requirements of a large automotive assembly operation. Since the beginning of our relationship years ago, we have never caused a plant shutdown situation. • We have achieved a high level of success with Nissan through the development of an innovative multi-modal transportation network. Averitt provides dedicated services for local suppliers shipping in full truckload quantities or on ‘milk runs’ as they specialize in providing a service that is more ‘short haul’ in nature.

Nissan North America • Averitt services suppliers on full truckload or milk run routes that require teams or over night layovers. • Averitt provides LTL services for suppliers shipping in smaller (typically weekly) volumes that are not economically handled by Averitt’s dedicated or truckload services. We have also partnered with regional LTL carriers to establish regional consolidation points for remote suppliers shipping in less than truckload quantities. • Averitt provides the framework necessary to manage this integrated solution and also performs periodic transportation network redesigns for Nissan. One of the key services logistics provides is determining the proper mode based on service and cost considerations.

ZF Lemforder • • Manage all inbound transportation Asset-based 3 rd Party Logistics agreement Averitt assets except in selected lanes On-site management in Chicago, IL

ZF Lemforder • On-site management at Chicago, IL – – Receive shipments within the DC Verify counts Load trailers Initiate Internal processes • Manage all transportation to Assembly Line • International Services Provided – Origin Cargo Management from Getrag Sweden 40’ FCL • Specialized Equipment – Origin Cargo Management Inchon, Korea 5, 000 kilos of Air Cargo per Week – All Customs Work, Classifications, Payments and Documentation Processed

Idle. Aire • Origin Cargo management Averitt Zhongchen, China • Consolidate shipments for 28, 000 units • Manage transportation to Eaton Plant Ciudad Juarez Mexico Verify Counts & Process Documentation Load Containers 160 units per 40’ Initiate AES Customs Process Customs Arrangements Trans load cargo into Averitt Equipment Dray cargo to Mexico Sequence Units Direct to the Production Line

GE Lighting Systems • Origin Cargo management Averitt Hong Kong • Consolidate shipments from over 60 Vendors in • Manage transportation to GE Plant Hendersonville NC Verify Counts & Documentation Load Containers Initiate AES Customs Process Customs Clearance Air / Ocean Truckload / LTL Sequence Parts Direct to the Production Line