Emerson SCO Program Monthly Performance Review February 2018

Emerson SCO Program Monthly Performance Review February 2018 Comprehensive strategies for SUPPLY CHAIN optimization.

Historical Order Volume Ocean volume included starting May 2017 Historical Order Volume 45, 000 38, 911 40, 000 35, 135 35, 000 38, 038 35, 738 34, 760 32, 689 32, 073 39, 225 37, 557 36, 842 35, 568 31, 319 31, 532 Dec-17 Jan-18 Orders 30, 000 25, 000 20, 000 15, 000 10, 000 5, 000 0 Feb-17 2 Mar-17 Apr-17 May-17 Jun-17 Jul-17 | Comprehensive strategies for SUPPLY CHAIN optimization. Aug-17 Sep-17 Oct-17 Nov-17 Feb-18

Order Volume by Type - Recent 3 Months 14000 12000 Orders 10000 8000 6000 4000 2000 0 Dec-17 Jan-18 Feb-18 3 Air 4657 4322 4296 Ocean 734 804 523 Ground (NA) 10862 10251 11864 Ground (NA) HVS 9847 9703 10847 Comprehensive strategies for SUPPLY CHAIN optimization. Ground (EU) 1953 2384 3016 Ground (EU) HVS 1856 2623 3114 Cancelled 1410 1445 1908

Note: Total cycle time will not be a sum of planning and tendering cycle times, as each cycle time is measured separately, excluding relievable orders and tenders. Air Average Cycle Times * Skewed by system processing interruptions early in month Air Cycle Times and % in tolerance February 2018 100% 35 96% 30 97% 30 96% 25 Minutes 100% 95% 97% 26 90% 25 85% 20 80% 75% 15 15 70% 10 65% 10 5 0 4 60% 55% 50% Total CT (max 25 min) Planning CT (max 15 min) Tendering CT (max 10 min) Expected Cycle Time 25 Time 15 Tolerance 10 Expected Cycle Actual Cycle Time Expected in Actual In Tolerance Actual Cycle Time 30 26 4 Expected in Tolerance 97% 97% Actual In Tolerance 96% 100% 4 | Comprehensive strategies for SUPPLY CHAIN optimization. % in tolerance 97%

Ground Average Cycle Times Note: Total cycle time will not be a sum of planning and tendering cycle times, as each cycle time is measured separately, excluding relievable orders and tenders. Ground Cycle Times and % in tolerance February 2018 Minutes 30 97% 25 20 15 99% 95% 25 97% 15 15 12 10 10 6 5 0 Expected Cycle Time Actual Cycle Time Expected in Tolerance Actual In Tolerance Total CT (max 25 min) 25 15 97% Expected Cycle Time 5 Planning CT (max 15 min) 15 12 97% 95% Actual Cycle Time | Comprehensive strategies for SUPPLY CHAIN optimization. Expected in Tolerance Tendering CT (max 10 min) 10 6 97% 99% Actual In Tolerance 100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% % in tolerance 97% 35

Reasons for long planning cycle times: 1. Missing RCUE refnum application when users edit their orders 2. Missing refnums on failed orders/order movements since XPO load planners are not currently root causing these. 3. Absence of appropriate status updates Ocean Average Cycle Times February 2018 6000 5000 Minutes 4000 3000 2000 1000 0 Expected Avg Cycle Time (Mins) Actual Avg Cycle Time (Mins) 6 Booking Confirmation Received 1440 5213 Advanced Leg Planning Main Leg Planning Beyond Leg Planning Tendering 15 4551 240 73 1440 0 10 109 | Comprehensive strategies for SUPPLY CHAIN optimization.

Air and Ground Long Planning Cycle Time Analysis Out of Tolerance Planning Cycle Time Root Cause Analysis February 2018 1200 1192 70 60 58. 48 50 800 40 600 30 Orders 1000 400 20 417 17. 08 200 0. 37 0 Less than 30 min 4. 76 System Planning Interruption 23 8. 34 Replan by SCO Order Count 7 | Comprehensive strategies for SUPPLY CHAIN optimization. 12 Replan by Daily Bulk Plan Average Cycle Time 8 Missing refnum 10 7 0. 52 Bulk plan pushed out due to System Interruption 0 Hours 1400

Air and Ground Total Cycle Time Variance Air and Ground Historical Total Cycle Time 35 30 28 30 23 25 15 20 19 20 18 17 13 12 12 14 15 13 14 18 13 13 13 Aug-17 Sep-17 14 15 15 15 13 13 Nov-17 Dec-17 10 5 0 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Air Total Cycle Time 8 | Comprehensive strategies for SUPPLY CHAIN optimization. Oct-17 Ground Total Cycle Time Jan-18 Feb-18

Air and Ground Total Cycle Time % in Tolerance Variance Air and Ground Historical Total Cycle Time % In Tolerance 100% 99% 100% 98% Feb-17 Mar-17 Apr-17 99% 98% 98% 99% 99% 99% 97% 96% 97% May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 97% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Air % in Tolerance 9 | Comprehensive strategies for SUPPLY CHAIN optimization. Ground % in Tolerance

Air and Ground Planning Cycle Time Cumulative Planning Cycle Time % in tolerance February 2018 100. 00% 94. 02% 98. 29% 98. 49% 98. 80% 99. 47% 99. 66% 100. 00% 16 to 30 min 31 min to 1 hour 1 to 2 hours 2 to 4 hours 4 to 8 hours more than 8 hours 90. 00% 80. 00% 70. 00% 60. 00% 50. 00% 40. 00% 30. 00% 20. 00% 10. 00% 15 min or less 10 | Comprehensive strategies for SUPPLY CHAIN optimization.

Non-AOE Air and Ground Planning Defects February 2018 Non-AOE Order Planning Defects Historical - % of non-AOE Orders with Planning Defects 7. 0% % of orders 6. 0% 5. 0% 4. 0% 3. 0% 2. 0% 1. 0% 0. 0% 2017 Feb % Defect 4. 6% 2017 Mar 4. 3% 2017 Apr 3. 8% 2017 May 4. 3% 2017 June 4. 2% 2017 July 3. 9% 2017 Aug 4. 0% 2017 Sept 5. 7% 2017 Oct 5. 3% 2017 Nov 6. 1% 2017 Dec 6. 2% 2018 Jan 5. 7% 2018 Feb 5. 7% Historical Top Non -AOE Defects (Last 3 months) Month Dec Jan Feb 11 1 st Infeasible Transit (Date/times) | Comprehensive strategies for SUPPLY CHAIN optimization. Count % 2 nd 720 44. 67% Change to order after Tender sent/Accepted 616 32. 87% Change to order after Tender sent/Accepted 446 29. 07% Change to order after Tender sent/Accepted Count % 3 rd 307 19. 04% Calendar conflict 308 16. 44% Manually planned by Emerson 263 17. 14% Manually planned by Emerson Count % 221 13. 71% 175 9. 34% 185 12. 06%

AOE Air and Ground Planning Defects February 2018 AOE Order Planning Defects Historical - % of AOE Orders with Planning Defects % of AOE orders 2. 5% 2. 0% 1. 5% 1. 0% 0. 5% 0. 0% 2017 - 2017 Feb Mar Apr % Defect 1. 1% 0. 5% 0. 8% Month 12 1 st Dec Order Cancellation Jan Constrained Service Provider Missing Rate on Lane Feb Constrained Service Provider Missing Rate on Lane | Comprehensive strategies for SUPPLY CHAIN optimization. 2017 May 1. 1% 2017 June 0. 8% 2017 - 2017 - 2018 July Aug Sept Oct Nov Dec Jan Feb 1. 1% 0. 6% 0. 7% 0. 8% 1. 7% 2. 1% 1. 6% 1. 0% Historical Top AOE Defects (Last 3 months) 2 nd Count % 3 rd 117 22. 24% Standard rate missing on lane 103 19. 58% Manually planned by Emerson 99 36. 40% Infeasible Transit (Date/times) 63 23. 16% Origin/Destination Location Info Corrected (ground only) Count % 44 25. 14% Infeasible Transit (Date/times) 38 21. 71% Origin/Destination Location Info Corrected (ground only) Count % 98 18. 63% 35 12. 87% 22 12. 57%

AOE Error Rate by Shipper AOE Defect Rate - February 2018 4500 4000 100. 00% 3500 AOE Orders 3000 60. 00% 29 1500 40. 00% 1000 500 1. 75% 0 13 Defect Rate Defects | 100. 00% 80. 00% 2500 2000 120. 00% 7. 59% EMERS ON ON ECT ON CLIMAT PROCE DISTRIB PROCE RIDGE E SS APPLET UTION SS TOOL MANAG TOOL TECHN ON SERVIC COMPA EMENT Orders MANAG EUROP OLOGIE without Defects GROUP ES EMENT E N. V. NY S MAGYA PLANT FRANC REFRIG RORSZ 11 EL SAS ERATIO ÁG KFT N SA (FCI) Comprehensive strategies for SUPPLY CHAIN optimization. 1. 75% 0. 57% 4. 05% 1. 36% 7. 59% 3. 41% 29 23 13 13 10 6 6 20. 00% EMERS EMERS ON ON ON CLIMAT EMER PROCE POWER PROCE FISHER CLIMAT E ON SS SS & E SS CONTR E TECHN CLIMA VILTER MANAG WATER OLS - PLANT Defects Defect. TECHN Rate EMENT, MFG EMENT, SOLUTI MANAG OLOGIE E TEC 09 OLOGIE EMENT INTL S- PLAN S. A. DE ONS WAREH SSAS PLANT 8 31 C. V OUSE PLANT 2 (FCI) - SOUTH (REGS) (RAI) DOCK 0. 45% 20. 00% 4. 30% 3. 74% 5. 77% 100. 00% 8. 82% 1. 65% 1. 53% 5. 00% 6 5 4 4 3 3 3 2 2 1

Ocean: Root Cause Cycle Time – Not yet able to be calculated due to unable to add refnum code to orders on hold XPO Root Cause Cycle Times 99% 98% % of Planning Failures Root Caused in Tolerance Goal: Root Cause 98% of orders in 60 minutes or less 98% 98% 60 95% 98% 99% 99% 100% 90% 50 80% Minutes 30 19 20 22 24 25 26 60% 29 24 27 23 23 50% 21 21 17 40% 30% 20% 10 10% 0 0% Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Average Root Cause Cycle Time 14 | Comprehensive strategies for SUPPLY CHAIN optimization. Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 % of Failed orders Root Caused in 1 hr or less Jan-18 Feb-18 % of orders 70% 40

Case and Failed Order Volume by Hour (Monday-Friday average) February 2018 10 Cases 11 411 12 310 3 3 3 8 6 5 12 2 1 3 3 4 3 2 2 3 3 4 9 3 2 2 2 10 3 3 11 2 5 8 3 6 2 2 4 1 1 3 1 1 2 1 3 3 1 2 1 2 2 0 1 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Hour (CST) Daily average case count 15 | Comprehensive strategies for SUPPLY CHAIN optimization. 14 15 16 17 Daily average failed order count 18 19 20 21 22 23 Failed Orders 14

Air and Ground Tendering Cycle Time Cumulative Tender Cycle Time % in tolerance February 2018 100. 00% 98. 78% 99. 48% 99. 55% 99. 73% 99. 87% 100. 00% 10 min or less 11 to 30 min to 1 hour 1 to 2 hours 2 to 4 hours 4 to 8 hours more than 8 hours 90. 00% 80. 00% 70. 00% 60. 00% 50. 00% 40. 00% 30. 00% 20. 00% 10. 00% 16 | Comprehensive strategies for SUPPLY CHAIN optimization.

Tender Accept Cycle Time Cumulative Air Acceptance Cycle Time % in tolerance February 2018 100. 00% 96. 65% 98. 88% 99. 72% 99. 81% 100. 00% Cumulative TL Acceptance Cycle Time % in tolerance February 2018 100. 00% 90. 00% 80. 00% 70. 00% 60. 00% 50. 00% 40. 00% 30. 00% 20. 00% 10. 00% 95. 99% 97. 39% 97. 80% 99. 89% 0. 00% less than 1 hour 1 to 2 hours 2 to 4 hours 4 to 8 hours more than 8 hours less than 1 1 to 2 hours 2 to 4 hours 4 to 8 hours more than 8 hours **Note that Ground Expedite mode and LTL mode are all automatically accepted when tendered. 100% of tenders are accepted in less than 1 hour. 17 | Comprehensive strategies for SUPPLY CHAIN optimization.

Change Types February 2018 Change Types Historical - % of shipments with change types 3. 0% % of shipments 2. 5% 2. 0% 1. 5% 1. 0% 0. 5% 0. 0% 2017 - 2017 - 2017 - 2018 Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Jan Feb % Defect 0. 6% 0. 9% 1. 0% 1. 5% 2. 0% 1. 5% 1. 7% 2. 0% 2. 1% 2. 2% 2. 6% 2. 1% Historical Top Change Types (Last 3 months) Month Dec Jan Feb 18 1 st Premium Tender Process used (manual spot bid) | Comprehensive strategies for SUPPLY CHAIN optimization. Count 375 616 489 % 2 nd 44% Retendered to another carrier 49% Retendered to another carrier 50% Retendered to another carrier Count 210 266 192 % 3 rd 24% Bid outside of threshold, BU approval provided 21% Bid outside of threshold, BU approval provided 20% Bid outside of threshold, BU approval provided Count % 153 253 171 18% 20% 17%

Reporting February 2018 Reporting Interventions Historical - % of shipments with Reporting Codes 1. 2% % of shipments 1. 0% 0. 8% 0. 6% 0. 4% 0. 2% 0. 0% % Defect 2017 -Oct 0. 6% 2017 - Nov 0. 9% 2017 - Dec 1. 1% 2018 - Jan 0. 9% 2018 - Feb 0. 7% Historical Top Reporting Interventions (Last 3 months) Month 1 st Count % 2 nd Count % 3 rd Count Dec Open Tender Follow-Up 258 79% Retendered due to carrier error 61 19% Mode Corrected 3 Jan Open Tender Follow-Up 240 72% Retendered due to carrier error 56 17% Jira Ticket issue related 22 Feb Open Tender Follow-Up 158 64% Retendered due to carrier error 50 20% BU locates capacity after spot bid 20 19 | Comprehensive strategies for SUPPLY CHAIN optimization. % 1% 7% 8%

Ocean Manual Intervention February 2018 Order Defects 45% Order Movement Defect Resolution began December 2017 Ocean Manual Intervention Rate February 2018 40% 35% 30% 25% 20% 15% February 2018 Order Movement Defects 10% 5% 0% Max Expected Actual 20 | Comprehensive strategies for SUPPLY CHAIN optimization. Order Release Order Movement (All legs) 10% 3. 7% 10% 6. 7% Order Movement (Advanced Legs Only) 10% 38. 3%

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System Interruptions Occurrences and Resolution Time for Valid System Planning Interruptions and UI Slowness 6 14: 24 5 12: 00 4 9: 36 3 7: 12 2 4: 48 1 2: 24 0 Occurrences Average Resolution Time 22 16: 48 2 1: 00 2 1: 30 2 2: 10 3 2: 30 2 6: 15 | Comprehensive strategies for SUPPLY CHAIN optimization. 4 2: 11 5 4: 43 3 3: 21 6 1: 37 4 1: 29 3 2: 16 6 15: 04 0: 00 2 5: 04 Hours Occurences 7

System Interruption Details Start Date (CST) Resolved Date Resolution Time(Hrs) Type of Issue Valid System Interruption? Summary of Issue Continued issues from January (last couple of days). Multiple bulk plans continue. The issue was pre-dominantly seen in Intercontinental Air and some Intra-EU lanes. Domestic US orders seemed to plan quicker. Resolution Notes Staggered restart implemented. Air bulk plans pushed out a whole day (stopped running air bulk plans on 1/31/18, commenced again on late morning of 2/1/18) 2/1/18 3: 06 2/1/18 12: 00 8: 54 Processing Delay Yes 2/19/18 14: 00 2/19/18 15: 15 1: 15 Processing Delay Yes AOE order with 477 ship units causing other AOE orders to fail Per Nathan: Ken Deters was able to resolve. AOE pre-assigned order (20180219 -20420) had 477 planning ship units. It planned on its own in bulk plan but failed. Someone may want to reach out to insert user to ensure they’re entering this at the right level per my screenshot below. 2/19/18 17: 32 2/19/18 20: 00 2: 28 Processing Delay No Multiple AOE bulk plans backing up. (over 100 AOE orders trying to plan) 23 Per Don Sorg: The issue appears to be isolated to Regional EU and Air. We have deactivated the old air cargo rates as well as the new EU ground rate. After the restart we will see if these go any better | Comprehensive strategies for SUPPLY CHAIN optimization. Bulk plans ended up completing successfully after delay. Seems due to high volume of AOE orders