DEDICATED FLEET PROGRAM Dedicated to meeting weekly home

DEDICATED FLEET PROGRAM Dedicated to meeting weekly home time for drivers

The first dedicated fleet was our midwest fleet. We started this fleet in June 2018 with 30 drivers. We then added a dedicated fleet based in the east and then added a third fleet in the south. DEDCIATED FLEET PROGRAM The initial goal of the dedicated fleet was two fold: offer a dedicated weekly home time for our drivers and cover freight that was otherwise seen as less desirable by our OTR drivers. Largely our LTL freight and shorter haul lanes. The dedicated IL fleet was built around our LTL lanes and matching up drivers who lived close or in route to the delivery cities so we could plan then home and keep them on more static routes. The planner worked to build “routes” or lanes that would allow drivers to service some of the same receivers each week while still getting them home weekly for their home time.

Drivers are guaranteed a day rate of pay or miles and stop whichever is greater. Drivers are still eligible for the monthly SSA incentive as well. Provided they meet all of those requirements. DRIVER BENEFITS Drivers are guaranteed to get home weekly for at least a 34 hour reset. Each fleet has a dedicated planner who plans drivers based on home time needs, customer needs and analyzes revenue on each truck daily and weekly to maximize revenue on the fleet.

In order to be eligible for the all the benefits of the dedicated fleet each week drivers must meet all the requirements laid out in the expectations document they sign when they come on board to their dedicated fleet. DRIVER EXPECTATIONS AND REQUIREMENTS Drivers must drive their full hours each day. A driver is expected to be available to start at 0001 and able to run until 2359 each day as the dispatch requires. They cannot refuse any loads if they are safe and legal dispatches. Drivers must work a minimum of 5 days each week and they are planned based on a 34 restart at home. They may get a longer time at home but a 34 is what we commit to them each week. Drivers who have more than 4 service failures in a year are removed from the dedicated fleet and offered the opportunity to go to the OTR fleet. Drivers must turn in all paperwork by the weekly payroll cutoff

We started with 30 drivers on the DED IL fleet in June. We ended 2018 with 65 drivers. We added the DED PA fleet which currently has 39 drivers GROWTH We added the DED GA fleet which currently has 43 drivers We created a formalized expectations document that applies to all the dedicated fleets so that each driver is clear on what they need to do to stay on the dedicated fleet.

PLANNER PROCESS • Each planner has a spreadsheet for their fleet by week which shows each driver by line and revenue per week. • The open slots are where they need to work with CS to fill in the gaps. • This sheet is then used to audit the drivers for compliance each week to ensure they have met the criteria for the dedicated pay. • Any extra time off, service failures or load refusals will cause a driver to revert back to mileage and stop off pay for the week instead of the dedicated pay.

AUDIT PROCESS FOR DRIVERS WITH EXCEPTIONS • Examples above of what is recorded when a driver takes days off, refuses a load or is in the shop. • This spreadsheet is what is used then when reviewing our internal dedicated pay board.

DOEJ 1 DEDICATED PAY AUDIT BOARD DRIVER WHO QUALIFIED JOHN DOE $0. 00 • You can see in this example the driver was off on Sunday and back home on Saturday. He had no load refusals or service failures. He would be eligible for his full dedicated pay.

DEDICATED PAY AUDIT BOARD DRIVER WHO WAS DISQUALIFIED • You can see in this example the driver worked 5 days but had a service failure for late pick up. He will get paid all his miles and stop off pay but he will not receive the guaranteed dedicated pay for the week. • You can also see in the highlighted area that we keep a running total of how many service failures a driver has so that his driver manager can coach him or her that they are getting close to hitting the max of 4 failures that would take them off the dedicated fleet.

Once the dedicated pay board is audited each week. The driver managers review it for any changes they feel need to be made. HOW IS IT PAID? The payroll department runs a trial report after Operations has made any necessary adjustments. If a driver did not exceed miles and stop off pay and has meet all the requirements of the dedicated fleet, payroll makes an offsetting entry to bring that driver’s pay up to the guaranteed amount for that week.

WHAT RESULTS ARE WE SEEING? We have been able to give our recruiting team the opportunity to seat more drivers because we can offer a dedicated home time option We have been able to offer more consistent on time service to our customers by pairing up drivers on the same lanes week over week which creates stability for our drivers and customers

WHAT DID WE LEARN AND CHANGE? We added the written dedication rules and expectations after we grew to three fleets. It became clear not all drivers were going to be hold themselves accountable without it. This helped ensure all drivers were clear on the expectations and ensure that drivers were only receiving the dedicated guarantee pay if they truly earned it. We had to adjust one fleet size after we grew it very quickly and realized from the planning revenue sheets it was oversized. We adjusted that fleet size by natural attrition. We have target sizes for each fleet now so that recruiting

FINDING MORE WAYS TO SAY YES Drivers appreciate that ability to make plans with their families. Drivers on the more static routes are getting to know their shippers and receivers which allows them to create a working relationship so if they are running outside scheduled appointment they are more likely to get in and out without hassle. Planners have more confidence on some of the more difficult multi stop loads that they will be serviced more consistently. Recruiting is able to offer more “options” to drivers to bring them onboard. Sales is able to “yes” to price, sell, and onboard lanes that in the past we have not looked at. OPERATING RATIO ON THESE FLEETS SURPASSED OTHERS BY 7%.

End Result? OPERATING RATIO ON THESE FLEETS SURPASSED OTHERS BY 7%.