Economic & Operational Benefits of Cargo Tracking Technology

BILL GOSS Senior Vice President, Global Sales, Services & Support

Savi Technology 2012

Common Cargo Concerns Security:

Curb theft and unplanned diversion of cargo; reduce the need for physical escorts

Reliability:
Uninterrupted movement of cargo

Visibility:
Live location updates on all journeys and assets

Efficiency:
Improve transit times, least cost routing, establish audit trails

Profitability:
Reduce costs for fuel; Improve revenue streams; lower insurance premiums

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How does technology address these needs?

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PM J-AIT
Radio Frequency Identification Network Savi installed a wired and wireless RFID network to track U.S. DoD and Allied containers moving from CONUS ports to the areas of responsibility, including Pakistan, Afghanistan, Haiti, Europe
Customer Challenges
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Solution
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Benefits
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Contract brief:
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Track location & condition of containers moving through critical supply chain nodes Maintain security of containers in transit Ensure warfighters have the right parts at the right time

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Deploy a wired and wireless active RFID network along routes that containers travel

Reduced costs associated with tracking containers Identification of container pilferers Improved readiness of troops

Sole source provider from 1990 through 2008 Developed the largest active RFID network Leader in developing the technology compatible with ISO 18000-7 & other AIT Valued and recognized partner with DoD

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The RFID network has improved visibility and delivery of supplies needed by troops
Lt. Col. Pat Burdon, PM J-AIT

NATO
Savi products enabled eight NATO nations to achieve interoperability in the tracking of NATO consignments
Customer Challenges
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Solution
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Benefits
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Comply w/ NATO Standardization agreements (STANAGs) for interoperability Gain better visibility of joint NATO operations

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Savi SmartChain Consignment Management Application to track military consignments

Compliance w/ STANAGS Command-level visibility of joint NATO operations Interoperability between NATO nations

Project brief:
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22,000 reads per month Containers transported from Pakistani ports into Afghanistan Technology compatible with ISO 18000-7 & other AIT DoD pays by the drink for data on containers

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NATO has concluded that this type of system can greatly contribute to the Commanders situational awareness in the logistics arena. - Brent Bingham, NC3A Project Manager

Australian Defence Force

Savi Consignment Management Application (CMA) solution ADF deployed SmartChain CMA for increased visibility of operational assets deployed globally in support of Allied Operations
Customer Challenges Solution Benefits

Customer Challenges Solution " Implemented " Lack of visibility of SmartChain consignments locations CMA with active RFID to track " Unknown contents of consignments containers and contents of containers both across its " Fixed infrastructure and National Support deployed operations base and Deployed " Multiple Legacy ERP Operations. and Logistics Systems

Benefits " Near real-time visibility of consignments

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Project brief:
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Nested visibility of assets and consignments Interoperability with coalition partners, e.g. NATO, US DoD Integration with Legacy Systems

Worldwide tracking of consignments Fixed and mobile installations Active RFID Integration with legacy systems

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Army Joint Munitions Command

JMC deployed a material management system to gain visibility and distribute, receive, move, count, and classify its CONUS ammunition inventory
Customer Challenges
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Solution
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Benefits
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Conversion to SAPbased ERP system missing key AIT functionality Short delivery time-frame to provide existing functionality in new ERP environment

SmartChain FM Web with Extended Business Logic

Reduced change management; retained legacy look and feel Seamless interface to ERP Interfaces with other Army systems Maximizes AIT initiatives in place in DoD

Project brief:
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8 ammunition depots CONUS 12,000+ zones enterprise wide 2 million+ inventory lines Barcode & active RFID SAP & SmartChain

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Right ammo, right place, right time

Coles Australia
Coles has adapted Savis SmartChain Asset Management Application (AMA) to manage their five million returnable assets
Customer Challenges Solution Benefits

Customer Challenges Solution " Customized " Need for accurate SmartChain records of RPC AMA Solution to inventory (3.5M Crates) track commodity to manage the issue , (non serialized) return and invoicing of assets between suppliers. Coles, their suppliers, " Need for accurate carriers, and records of pallet EAOs. inventory to reconcile External Asset Owner (EAO) accounts

Benefits " Provide accurate billing of suppliers for RPCs and hence increase revenue
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Project brief:
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5M Pallets and Crates under management Ordering and tracking for commodity assets only 1000s of DC, store, and supplier sites Interface with EAO systems

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Provide accurate inventory tracking of pallets and hence substantially reduce rental costs

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SGS Electronic Cargo Tracking Solution (OMNIS )

TM

Exclusive, worldwide technology supplier to SGS OMNIS Electronic Cargo Tracking Service for monitoring, tracking, and security of shipments in developing countries
Customer Challenges " In-transit cargo losses currently exceed 40%
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Customer Challenges

Track bonded shipments as they move across the country Haulier monitoring of vehicle location and activity

Solution TM " Savi SMTS integrated hardware and software solution

Solution

Benefits " Reduced cost of protection and enforcement

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Benefits

Project brief:
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Custom HW & SW Worldwide Opportunity Significant business for SGS and Savi Live in Kenya and Ghana

Increased customs revenue Vehicle security and trip efficiency

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SGS conducted an exhaustive review to determine the best technology for the SGS OMNIS offering. The Savi solution is far superior to any solution in the market and provides the most complete range of coverage for customers tracking needs. - Roger Kamgaing, VP , Government & Institution division of SGS
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Case Study: Kenya

Challenge: Improve reliability and security of cross-border consignments Increase visibility of goods-in-transit Increase profitability Solution: Journey tracking software from Savi Rugged electronic seals for trucks, containers and assets Defined routes

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Case Study: Kenya

Result: Real-time visibility of trucks Automatics alerts when trucks are diverted Customizable Alarms and notifications Reliability, Visibility. Profitability improved.

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Case Study: Ghana

Challenge: Cargo theft affecting revenue Hired guards a temporary solution 800 kilometer corridor within 250 square kilometer area Solution: Asset tracking software from Savi Active tracking devices for trucks Live online mapping show consignment status

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Case Study: Ghana

Result: 2500-3000 trucks under management Real-time visibility for all journeys Losses from theft reduced Certificate of Merit from the World Customs Organization (WCO)

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About Savi Mobile Tracking SystemTM (SMTS)

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The Value of Knowing

What Happens
From Here..

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Where is it? Is it safe? Stop Loss!

..to Here?

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With SMTS . You KNOW.

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SMTS its all about communication

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Simple Workflow with Powerful Information

Step 1. Attach tracking and security tags to cargo. Step 2. Establish cargo journey on predetermined routes
User-defined origin/destination User-defined corridors/routes of travel Alerts for dwell times, deviations, departure and arrival

Step 3. Supervise journey activity

Monitor all active journeys or assets Drill down to individual journeys View movement activity Manage security alerts

Step 4. Manage suspect journeys and cargo statuses in all phases

Dispatch intervention and security teams!
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Begin Journey

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Comprehensive Real-Time Alerts

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Common System Alerts

Tag Security alerts
Tag Tamper Missing reads Tag armed Tag armed outside origin Authorized for unlock Tag disarmed Tag not deactivated

Tag Power alerts

Low battery Vehicle moving with engine off In-Vehicle Master (IVM) is disconnected

Route alerts
Origin departure Excessive dwell time Deviation from route Change direction Destination arrival

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Geo-fencing
Establishes a virtual safe zone for your assets If your asset leaves the safe zone , a real-time alert is triggered
unexpected stop assets being diverted, movement outside of the zone

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Total Visibility Playback of cargo movement Truck color shows your cargo status Significant events displayed At-a-glance dashboard overview of all active assets and journeys.

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Drill down to a cargo

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Manage the alert

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User Controls for Application Security

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Journey Management
Single dashboard to monitor multiple assets in one simple view Monitor condition or status See route deviations or progress and related alerts. Drill down on individual shipments for details

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Review Journey History

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The Value of Knowing!

Curb theft and unplanned diversion of cargo Improve revenue streams Improve transit times, least cost routing, and save fuel Reduce administrative costs of physical escorts Uninterrupted movement of Cargo Audit trails Live location updates on all journeys and assets Lower insurance premiums

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About Savi

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Software Products and Engineering

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About Savi
Provides the leading active asset tracking platform Industry pioneer: Helped to invent active tracking in early 1990s Developer: Created standardsetting software and hardware Innovator: Over 40 patents protect Savi-invented technology and business processes Customer Driven: Clients include Commercial Companies, Governments, Logistics and Freight Service Providers, Military Agencies
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Kenya Ghana

Our Heritage
Savi has a proud past in the evolution of asset tracking technology usage by the U.S. and allied military, worldwide
Put to test in 1990 and 1991 in Desert Shield and Desert Storm Our solutions helped track supplies, spare parts, and shipments Savi solutions worked in the harshest conditions We gained a reputation for innovation and reliability RFID technology was mandated by US DoD in mid 2000s DoD has standardized on our technology Products are the backbone of the worlds largest RFID network

Lockheed Martin/Savi Technology Proprietary and Confidential

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Success Continues in DoD Environments

Worlds largest active RFID network (52 countries) Critical enabler for In-Transit Visibility (ITV) no more iron mountains of supplies Data integration between automated information systems fewer stovepipes

697R / 1,042W Sites 218R / 693W Sites

NORTHCOM

206R / 150W Sites

EUCOM

CENTCOM

1 Week Activity: Tags Written 16,139 Tags Read 142,345

229R / 157W Sites Currently Over 3,400 Read and Write Sites with over 13,000 Satellite-Based Tracking Systems

PACOM

SOUTHCOM
12R / 20W Sites

AFRICOM
6R / 8W Sites

United Kingdom
83R / 52W Sites

Australia

NATO
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108R/ 2W Sites 21R Sites

Lockheed Martin/Savi Technology Proprietary and Confidential

Solutions that Solve Real Problems Asset Visibility Challenges

Misplaced assets Asset status Asset environmental condition

Inventory Management Challenges

Inventory counts cost (time & efforts) Up-to-date inventory on-hand

Asset Optimization Challenges

Asset request & scheduling Asset dwell, availability, trending

Cargo In-Transit
Optimal routing Shipment and vehicle security Real-time transport decision making
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Smart Chain: Enterprise Asset Management

Enterprise-class software/ hardware platform Enables intelligent management of shipments, inventory, sites, and asset coding Supports RFID, UID, ANSI or GPS Helps customers reliably locate assets and know their status. Provides real-time operational data, detail reports, and alerts Reduce logistics costs, eliminate loss, cut shrinkage Enables stronger performance guarantees.

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Questions?

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Software Products and Engineering

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