1. Current Levels of digitalization in transport logistics 2. How to improve the level of digitalization 3. Answering your needs with predictive analytics

1. Understanding the
digitized value chain -
Transport logistics
research insights in the
chemical industry
WEBINAR:
June 19, 2018 at 10 a.m. (CET)
Ron Heijman
Director Regional Sales EMEA
Transporeon Group

2. Agenda
1. CURRENT LEVELS OF DIGITIZATION IN
TRANSPORT LOGISTICS
2. HOW TO IMPROVE THE LEVEL OF DIGITIZATION
3. ANSWERING YOUR NEEDS WITH
PREDICTIVE ANALYTICS

3. Current levels of
digitization in
transport logistics
• In chemical industry, it is essential to establish robust,
predictable supply chains and powerful transport logistics
processes
• It is all about delivery reliability and planning security while
transporting dangerous goods or valuable
chemical products
• The chemical industry is set to benefit significantly from
‘Logistics 4.0’
We made a deep dive into the current state of transport
logistics across various industries
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4. Current levels of
digitization in
transport logistics
We undertook a study in collaboration with Germany’s
largest technical university RWTH Aachen:
• An online survey with over 1,000 corporations across
all industries
• Aimed to establish the future development of
transport logistics
• We asked about realistic assessment of current levels
of digitization in all different stages of the transportation supply
chain
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5. Current levels of digitization in transport logistics
General overview of the results
Results summary:
• Internationally, the chemical industry stands
in midfield
• The average level of transport logistics
digitization across all industries is 39.6%
• The chemical industry scored 40.7%
• The sets of data reveal that companies in the
chemical industry are not yet fully utilizing the
potential of digital transport logistics
• There is room for considerable growth to achieve
100% digitalization
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6. 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Automotive Building Materials Pharma Wood Chemicals Consumer Other
By telephone / e-mail / fax Via single EDI interface to a logistics provider
Via EDI Hub Online via a logistics platform (no interface to our in-house system)
Online via a logistics platform (fully integrated with our in-house system) I am not sure
Current levels of digitization in transport logistics
We asked about automated processes (1/2)
HOW ARE ROAD FREIGHT TRANSPORT ORDERS
COMMUNICATED TO YOUR LOGISTICS PROVIDERS?
Chemicals vs. other Industries
Only 6% currently using a
fully integrated solution to
communicate with carriers.
Most chemical companies
are using isolated
interfaces (EDI, phone,
email) to communicate with
carriers.
But the future lies in cloud-
based communication and
collaboration on a platform
that integrates every party
in the supply chain.
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7. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Automotive
Building Materials
Pharma
Wood
Chemicals
Consumer
Retail
Other Industries
Average
Nothing at all 0% Only a few 10-40% Some 50-90% Full 100% I'm not sure
Current levels of digitization in transport logistics
We asked about automated processes (2/2)
WHAT PERCENTAGE OF YOUR FREIGHT PURCHASES DO YOU HANDLE
VIA ELECTRONIC PURCHASING PLATFORMS TODAY?
Comparison within Industry None of the
industries reached
100%, leaving much room
for process optimizations
regarding electronic
purchasing platforms.
Less than 50% of chemical
freight purchases are
handled online.
Nevertheless, Chemicals is
the most advanced
industry in terms of
automated processes;
all other industries
surveyed are currently
lagging behind.
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8. Current levels of digitization in transport logistics
We asked about collaboration with carriers (1/2)
ARE YOU ABLE TO SOURCE LOADS ON THE SPOT MARKET?
Comparison within Industries
In most cases, companies
in the chemical industry
allocate transports on a
contract basis.
Only 46% of chemical
companies currently use
the spot market.
Companies that handle
wood products and those
that ship pharmaceuticals
make more significantly
use of the spot market.0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Automotive
Building Materials
Pharma
Wood
Average
Chemicals
Consumer
Retail
Other Industries
Yes No (only contract based) I don't know
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9. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Automotive
Building Materials
Pharma
Wood
Chemicals
Consumer
Retail
Other Industries
Yes No I am not sure
Current levels of digitization in transport logistics
We asked about collaboration with carriers (2/2)
ARE YOU ABLE TO TENDER YOUR LOADS SO
THAT YOUR CARRIERS CAN MAKE BACKHAULS?
Comparison within Industry
Only around 36% of
companies in the chemical
industry currently enable
carriers to build backhauls.
This compares with the
same percentage of
pharma companies, but
ranks below other
companies particularly
those in the building
materials industry.
To hold onto current
capacity, it is now more
important than ever for
shippers to better
collaborate with their
carriers and help them to
reduce empty kilometres.
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10. FOR WHAT PERCENTAGE OF YOUR ARRIVING TRUCKS DO YOU
HAVE REAL-TIME INFORMATION ABOUT THE ACTUAL ARRIVAL?
Comparison within Industry
Current levels of digitization in transport logistics
We asked about transparency for loading/unloading (1/2)
FOR WHAT PERCENTAGE OF YOUR TRUCKS DO YOU
KNOW THE PLANNED (NOT ACTUAL) ARRIVAL TIME?
Comparison within Industry
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Automotive
Building Materials
Pharma
Wood
Chemicals
Consumer
Retail
Other Industries
Average
Noting at all 0% For only a few 10-40% For some 50-90% For all 100% I'm not sure
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Automotive
Building Materials
Pharma
Wood
Chemicals
Consumer
Retail
Other Industries
Average
Noting at all 0% For only a few 10-40% For some 50-90% For all 100% I'm not sure
In general, there’s a lot of room for improvement around the
transparency of the planned truck arrival times in every industry.
On average, about 13% of all companies surveyed
know the planned arrival time of their trucks.
Only 18% of the companies in the chemical industry
are fully aware of their planned arrival time.
Nearly 35% of the companies in the chemical industry
have no real-time information about the actual truck arrival.
57% of all companies surveyed state that they have zero
to few visibility into the planned arrival time of their trucks.
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11. 0%
10%
20%
30%
40%
50%
60%
<0.5h 0.5h-1h 1h-2h 2h-3h 3h-4h
All Industries Chemical Industry Retail Industry Consumer (FMCG) Automotive Paper Building Materials
Current levels of digitization in transport logistics
We asked about transparency for loading/unloading (2/2)
HOW LONG IS THE AVERAGE WAITING
TIME OF THE ARRIVING TRUCKS?
With carrier capacity at such low levels, it
doesn’t make sense for drivers to waste their
working day having to stand idle at the
shipper’s premises.
Bad news for the
chemical industry:
+2 hour waiting times
are not uncommon – most
other industries rarely
experience this.
20% of companies in the
chemical industry report
2-3 hour waiting times.
5% of companies in
the chemical industry
report prolonged
waiting times of
between 3 and 4 hours.
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12. Current levels of digitization in transport logistics
We asked about real-time information for customers (1/3)
HOW ARE MOST OF THE STATUS MESSAGES DELIVERED TO YOU?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Automotive
Building Materials
Pharma
Wood
Chemicals
Consumer
Other Industries
Not at all Telephone Telematics EDI Online App I am not sure
In most cases,
communicating shipment
status information
still requires the dispatcher
to take action.
More than 50% of
chemical companies
deliver status messages not
in real-time (by phone,
portal or not at all)
The next evolutionary step
in shipment tracking is real-
time visibility – using digital
tools to achieve constant
transparency of each truck
location and ETA.
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13. Current levels of digitization in transport logistics
We asked about real-time information for customers (2/3)
ARE STATUS MESSAGES TRANSMITTED FOR THE TRANSPORT
(DURING THE JOURNEY FROM THE SHIPPER TO THE RECIPIENT)?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Automotive
Building Materials
Pharma
Wood
Chemicals
Consumer
Retail
Other Industries
Average
Not at all Only a few Some Yes all I am not sure
80% of chemical
companies send no or only
a few status information to
their customers.
Only 9.5% send
automated alerts.
Today, customers demand
on-time goods delivery.
They want to be kept
informed of any delays in
the schedule and they
expect real-time access to
accurate data.
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14. Current levels of digitization in transport logistics
We asked about real-time information for customers (3/3)
ARE DOCUMENTS RELEVANT TO THE MOVEMENT
OF GOODS CURRENTLY PROCESSED DIGITALLY?
Comparison within Industries
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Automotive
Building Materials
Pharma
Wood
Chemicals
Consumer
Retail
Other Industries
Average
No - not at all A few Most Yes - all of them I am not sure
Already around 43%
of chemical companies
handle most shipment
documents digitally.
This percentage is
around midfield – there
are some industries with a
slightly higher percentage
of digital documents,
and some (building
materials and wood) with
a lower percentage.
Only 18% of chemical
companies handle all
shipment documents
digitally.
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15. Agenda
1. CURRENT LEVELS OF DIGITIZATION IN
TRANSPORT LOGISTICS
2. HOW TO IMPROVE THE LEVEL OF DIGITIZATION
3. ANSWERING YOUR NEEDS WITH
PREDICTIVE ANALYTICS

16. Improve the level of digitization
Centralized platform is required to digitize the supply chain
The chemical industry tends to suffer from isolated information sources. Digitization means that companies can bring all of
their data onto a centralized platform, breaking down silos and enabling proactive and automated information sharing.
CUSTOMERSHIPPERSUPPLIER WAREHOUSE
& TERMINAL
PROVIDERS
OVERALL VISIBILITY
Integrating your entire network into your digital supply chain with a centralized collaboration platform
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17. Transporeon provides a modular, end-to-end cloud-
based product suite…
CONFIDENTIAL | 17
Transporeon
Solutions
PLANACT
DOCHECK
Carrier Elimination/
Qualification (RFI)
Billing/Freight Audit
Business Analytics/Reporting
Transport Visibility
Dock Scheduling
Assignment/Tendering
Rate Management
RFP Management
1
2
3
4
5
6
7
8

18. Improve the level of digitization
Increase efficiency by switching from manual to automated processes (1/3)
By using a unified network, we
are now able to deploy half a
manpower more efficiently in the
company as our processes are
fully automated.
Supply Chain Manager
Dutch chemical company
“
• Reduce manual administration effort
• Cut costs by automating processes,
especially data exchange
• Avoid errors that are typical when
using manual processes
• Provide auditable processes with
sustainable, replicable outcomes
Connect & collaborate online,
integrating the entire network
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19. Improve the level of digitization
Increase efficiency by switching from manual to automated processes (2/3)
Digital surcharge management allows each
carrier to request additional fees on a completed
transport for unforeseen events or exceptions:
• Real-time transparency of surcharges for all
involved parties
• Reduction of process costs & manual workload
• Standardized & structured digital processes
• Ensures compliance & simplified control
Undertake complex tasks with greater
efficiency, especially surcharge handling
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We have achieved our goals:
streamlining administrative
processes, making these
processes more transparent, and
increasing the performance
our network.
Zsolt Udvari, Supply Chain Manager
Borealis L.A.T

20. Improve the level of digitization
Increase efficiency by switching from manual to automated processes (3/3)
• Relevant HSE checks in all digital
processes to comply with regulations
on health & safety, handling &
monitoring, etc.
• Ensure competent traffic management
to reduce CO2 emissions
• Collaborate to reduce empty runs,
optimize the use of each vehicle &
shrink the carbon footprint
• Record & publish green KPIs
Introduce cloud-based automated
workflows to ensure HSE & compliance
HSE has become increasingly important
with an extremely attentive public and
watchful media plus more stringent
legislation and higher non-compliance
penalties. Chemical companies must act
(and be seen to act) accordingly.
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21. Improve the level of digitization
Collaborate better with your carriers to reduce empty kilometres
• With ‘best carrier‘ you can dynamically ask trusted carriers
to match their capacity with loads on a daily basis
• Your carriers can accept orders that are a best-fit for their
scheduling/routing
Implement dynamic tools
• Discover which carriers from your pool can provide
adequate capacity for your needs
• Use your existing carrier network to find transports on
the spot market (‘best carrier‘)
• The ratio of spot market to contract-based allocation
varies according to company-specific considerations
Define the right assignment strategy
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22. Improve the level of digitization
Improve transparency and save valuable time at loading/unloading
Booking time slots online means:
• No more unnecessary emails & phone calls
• Choose the best available slots, optimizing route
planning & vehicle utilization
Counteract the capacity crisis by saving valuable
time with digital time slot management
Reduce idle & waiting
times by up to 30%
Cut average loading/unloading
time by up to 20%
• Handle complex loading logics
• Manage material dependencies
• Define your loading capacities &
vehicle/equipment requirements
• Manage health & safety-related checks
Choose an intelligent, dynamic solution
which allows you to
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23. Improve the level of digitization
Optimize customer service with real-time information
Thanks to Transporeon we
have been able to create
transparency for our entire
network…rationalizing our
flow of goods.
Oliver Krause, Global Category
Manager Logistics Services
Beiersdorf
“
• Become more proactive & share
logistics transparency with customers
• Optimize plant logistics & meet
increasingly stringent safety regulations
• Include all digital shipment
documents, ensuring detailed ECTA
code documentation is visible to
everyone involved (e.g., operators of
external warehouses)
Provide real-time statuses & digital shipment
documents during the end-to-end shipment
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24. Agenda
1. CURRENT LEVELS OF DIGITIZATION IN
TRANSPORT LOGISTICS
2. HOW TO IMPROVE THE LEVEL OF DIGITIZATION
3. ANSWERING YOUR NEEDS WITH
PREDICTIVE ANALYTICS

25. Answering your needs with predictive analytics
We asked about predictive analytics capabilities
DO YOU MAKE FUTURE LOGISTICS DECISIONS BASED ON YOUR DATA?
40%
of the chemical companies
use their data to make forecasts
of optimizations or other
logistics decisions.
60%
do not use data for future
decisions or even not know it.
At the same time, they are
giving away the opportunity to
operate profitably on the market
in a future-oriented manner.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Automotive
Building Materials
Pharma
Wood
Chemicals
Consumer
Other Industries
Yes No I am not sure
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26. CONFIDENTIAL | 26
+15 million time slot
bookings by carriers
Live calculation of ETAs, taking
into account GPS and traffic data
+3 million spot
market transport offers
per annum
+80,000 carrier quotes within
strategic tenders
+9,000 RFQ events
on our platform
+9 billion Euro in
tendered freight volume
+100 million quoted
prices in tendering
+25 million active
prices in rate
management
+12 million
contract-based
transports per
annum
+70,000
carriers
registered
Real-time data on in-progress
transports in mobile order
management
Answering your needs with predictive analytics
Our Platform is packed with very valuable data…

27. What level are you on?
Wherever you’re starting from, we’re ready to support your digital journey
DIGITIZATION & COLLABORATION
VALUE
1
Manual
processes
2
ERP and EDI
connections
3
Digital
end-to-end
processes
4
Shipper-centric
collaboration
5
Infinite
collaboration
with all parties
CONFIDENTIAL | 27

28. Our reference
customers from
chemical industry
We are proud to
have started the
digitization journey
with our customers
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29. Optimize your transport logistics
NOW
INFORMATION@TRANSPOREON.COM
QUESTIONS?
Read also the interview
“Using digital solutions to improve
transport logistics in the chemical industry”
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