The importance of a single gray pool

Chassis Challenges in Memphis Chassis models are not keeping up with demand Chassis pools are not interoperable & Freight is restricted Chassis costs are rising…costs felt by shippers/truckers Chassis quality is very poor and equipment is aged Chasing chassis is a waste of time and money Chassis repositioning costs are escalating

What is the impact? Freight does not move: waiting on adequate supply and quality of chassis Chassis in M&R are stockpiled while freight is at a standstill Freight costs are escalating in terms of: Demurrage Lost Turn Time Delayed & Lost Sales Chassis Repositioning Administration Memphis Supply Chain Innovation Team

Where are the chassis? Railroad? Depot? Memphis Supply Chain Innovation Team

Chasing Chassis! Chassis are not in the right place at the right time Ocean Carriers are responsible for chassis for Store Door Moves Ocean Carriers are not responsible for chassis on CY Moves In Memphis, we don’t have a choice, rail’s operational procedures vary (mounted vs grounded operation) Rail operations are under contract with Ocean Carriers for chassis provisioning upon train arrival Memphis Supply Chain Innovation Team

Problem with captive chassis pools in memphis Ocean Carrier A Ocean Carrier B Ocean Carrier C Ocean Carrier D Mandates Red Chassis Mandates Green Chassis Mandates Purple Chassis Mandates Blue Chassis Problem with captive chassis pools in memphis WHICH CHASSIS WILL THEY USE? ? ? ? ? POOL M&R Memphis Supply Chain Innovation Team

Result of Captive Pools Rising COSTS and wasted TIME Handcuffed chassis usage Access is limited SUPPLY is an on-going problem with limited visibility EVERY STAKEHOLDER GETS STUCK! BCO’s and forwarders can’t move freight Railroads don’t move trains fluidly Ocean carriers lose opportunities and equipment turns Truckers are wasting time searching for chassis A single gray pool offers efficiency gains and simplicity Memphis Supply Chain Innovation Team

Gray Pool provides Efficiencies Rail perspective Trucker perspective Memphis Supply Chain Innovation Team

OBJECTIVES FOR A MORE EFFECTIVE MODEL Quantity - Improved inventory Quality - safe, reliable, road-worthy assets Interoperability - All assets in region can be deployed as required for best collective use Choice - Fair and Effective access for merchant haulage moves OBJECTIVES FOR A MORE EFFECTIVE MODEL Memphis Supply Chain Innovation Team

Memphis Supply Chain Team seeking: Single GRAY CHASSIS POOL Interoperability and Adequate SUPPLY Quality chassis: (M&R concerns, Safety concerns) Pool Manager Accountability for supply/quality Memphis Supply Chain Team seeking: Single GRAY CHASSIS POOL Key Stakeholder involvement in rule-making/ Board of Advisory with members of the Memphis Supply Chain Team Memphis Supply Chain Innovation Team

The chassis model is broken… A GRAY POOL IS NEEDED IN MEMPHIS IMMEDIATELY Memphis Supply Chain Innovation Team