Fleet Administration Program & Processes

WHAT WFS DOES FOR YOU

(Required by Airgas Management) WFS Level 1 Services Level 1 Services are for database administration of Airgas units. All units in the Airgas vehicle database receive level 1 services. Administration of the Airgas vehicle database Asset Input Asset Transfers Asset Retirements Titles (electronic filing) U1A (electronic filing) (required by DOT)*NEW* Fixed Asset Reporting Insurance Card Reporting Registration Expiration Inputting & Reporting Lease Expiration Inputting & Reporting (Required by Airgas Management)

WFS Level 2 Services Level 2 service include all Level 1 services plus… Database Administration Daily unit record maintenance with 4 dedicated staff members to update unit records (transfers and retirements, detailed unit spec info) for Airgas Fixed Asset Group. Currently maintaining records in excess of 10,000 pieces of Airgas equipment. Monthly reporting back to the Regional Company including maintenance cost by unit and location detailing expenses by system code (engine, transmission, brakes, tires new, tires retread etc.). Reports available at all levels National, Regional, Branch and Unit. Accounts Payable Processing @ $3.5 million in payables per month for Airgas. Available payment options include MasterCard, Virtual Mastercard, Comchek and Net. All payments can be tied to a specific asset (less “bucket” accounting ). Processing over 6000 repairs each month. Paying invoices for scheduled and unscheduled maintenance, breakdowns, fixed maintenance, washes, body repairs, rentals, licensing and permitting, emergency fuel purchases, lease payments. Accounts Receivable A weekly invoice to each different Airgas Regional Company (business unit) with line by line itemization for each transaction. Itemization includes: Unit number Branch name and Oracle number GL codes specific to Airgas Vendor name, invoice number and repair date Costs broken out by fee, labor, parts, tax and total

WFS Level 2 Services (cont.) Vendor Relations WFS has setup and maintains relationships with over 6000 Airgas vendors Ensure vendors are following Airgas protocols and procedures** including: Supplying written estimates for repairs over $500 Obtaining a PO number from Warner Fleet Services Providing a breakdown of services performed on each invoice (separating parts, labor & tax) Include PM checklist with all PM invoices for DOT record retention Following all other vendor procedures and policies (see policies and procedures on WFS website) **Making sure vendors follow the Airgas procedures ensures their invoices will be processed and paid in a timely manner. Maintenance WFS has a staff of experienced Maintenance Administration personnel with industry backgrounds like sales, customer service & support, diesel mechanics and service management. The WFS maintenance personnel take inbound calls and make follow up calls to support all maintenance functions. Roadside assistance Scheduling routine and preventive maintenance Obtaining estimates for repairs over $500 and approval from appropriate Regional Company contact. Issuing approval, PO’s and payment to vendor for repairs Auditing all incoming repair invoices for fair parts pricing and repair times. Data inputting of repair invoices by system cost code for detailed cost reporting.

WFS Level 2 Services (cont.) Maintenance (cont.) Scanning all repair invoices and supporting documents into WFS’ fleet web interface. Vendor negotiations and customer advocacy while unit is in the shop OE warranty assistance Parts expediting Repair and troubleshooting assistance (60+ mechanics and Service Managers at our disposal) ALL maintenance services are performed 24/7/365 WFS Website http://www.warnerfs.com Airgas PM sheets Vendor policies and procedures Airgas fleet downloads Asset delivery spreadsheets (run from WFS database) Freightliner trucks and tractors Toyota forklifts Ford service trucks GMC service trucks Hyster Forklifts Great Dane Trailers Audit savings sheet OE service bulletins and recalls National accounts information

WFS Level 2 Services (cont.) Audit Savings Spreadsheet detailing savings by Regional Company Documented savings for Airgas year to date through May is $146,000.00 Fax#’s and email distribution (EMAIL IS PREFERED) WFS provides several e-fax numbers and email addresses utilized by Airgas for: New truck, trailer and forklift delivery checklists National Account invoices Asset retirement and transfer forms PM Updates National Account Management WFS works hand in hand with all Airgas fleet vendors to expedite parts, ensure warranty coverage and negotiate policy reimbursement. Michelin Bridgestone / Firestone Safelite Auto Glass Bandag Morgan Body Maxon Liftgate Caterpillar Mercedes Freightliner Detroit Diesel Allison Transmission $146.000.00

What It Costs You Level 1 service cost is $.75 per unit per week Level 2 service cost per unit per week (include level 1 fees): Power (tractor, truck) $5.75 Trailers $4.75 Forklifts $3.75 Tube Trailers $1.75 Airgas currently has in excess of 10,000 units under WFS Level 2 services. All Airgas RC’s are currently utilizing WFS Maintenance Level 2 Services

WFS Processes

WFS INVOICE PROCESS Open Repair / Issue PO for Repairs (See process pages 4-10) Receive Estimate for Repairs Exceeding RC Approval Limit (See process pages 11-12) Receive Invoice (mail, fax or email) Add WFS Cover Sheet (See process pages 13-16) Audit for Airgas Policy Violations Scan Invoice and Supporting Documents “Pushback” for Airgas Policy Violation (See process page 17-18) “Book and Close” Audit and Enter Invoice Data Into Vehicle Database (8 day average/14 days max) (See process pages 19-26) Enter Invoice Into Payables System (ADP) Cut Check and Mail to Vendor (12th and 22nd of month)

How does a PO get issued/opened? PO PROCESS WFS issues a Purchase Order# (PO) for each and every repair performed to a unit. In the Airgas database (Transman) a PO# is tied to a Repair Order# (RO). This makes it easy to retrieve a record regardless of which # is referenced. How does a PO get issued/opened? Routine / Preventive Repairs: Airgas manager or driver obtains PO before taking unit in for servicing. Schedules repairs with local vendor Reminds vendor to contact WFS @ 800-350-1555 for authorization over RC limit, to submit an estimate or to advise WFS of repair complications. Gives PO to vendor Servicing vendor has unit and contacts WFS for PO and authorization. WFS advises vendor of Airgas authorization limits and estimate procedures. Breakdown / Unscheduled Repairs: Airgas driver calls 800-350-1555 to advise of breakdown situation WFS opens a “Road Call” WFS coordinates repair finding repairing vendor, tow company etc. Opens a repair order and associated PO for each vendor involved in the repair Airgas manager calls 800-350-1555 to advise of breakdown situation (go to step 3.a) The following is the WFS PO procedure for issuing a PO / opening an RO.

Back to Invoice Process PO PROCESS Back to Invoice Process

Back to Invoice Process PO PROCESS Back to Invoice Process

Back to Invoice Process PO PROCESS Back to Invoice Process

Back to Invoice Process PO PROCESS Back to Invoice Process

Back to Invoice Process PO PROCESS Back to Invoice Process

Back to Invoice Process PO PROCESS Back to Invoice Process

All estimate procedures are established by Airgas. ESTIMATE PROCESS All repairs must be authorized in accordance with the Airgas RC approval limits. When a PO is issued the vendor, or Airgas employee, obtaining the PO is advised that the PO is only good for the RC authorization limit (typically $500). The vendor is further instructed that, if the repair is to exceed the RC authorization limit, a written estimate must be submitted to WFS. Estimates can be submitted one of two ways: Via fax: 801-736-8778 Via email: estimate@warnerfs.com All estimate procedures are established by Airgas. The following is the WFS Estimate process

Back to Invoice Process ESTIMATE PROCESS Back to Invoice Process

COVER SHEETING PROCESS WFS attaches a cover sheet to every invoice that we receive. The cover sheet captures data that is used for internal controls. What information is on the cover sheet? Vendor name PO # RO # Regional Company name Date invoice received by WFS Pay method (other than net) WFS control # WFS process info Approved by Booked by Date Booked Amount Booked The following is the WFS cover sheeting process

COVER SHEETING PROCESS Back to Invoice Process

COVER SHEETING PROCESS Back to Invoice Process

COVER SHEETING PROCESS Back to Invoice Process

Why would an invoice be pushed back to the vendor (what can go wrong)? PUSHBACK PROCESS When an invoice is submitted to WFS that cannot be processed that invoice is sent back to the vendor to have the problem corrected. This is process is called the “Pushback” process. When the invoice is pushed back it is mailed to the vendor along with a statement sheet detailing what is needed for WFS to process. Why would an invoice be pushed back to the vendor (what can go wrong)? Invoice not received by WFS It is not uncommon to receive an invoice that has aged 90+ days Invoice sent to, and paid by RC accounts payable department. Most regions have stopped paying all invoices related to rolling stock asset maintenance. WFS can pay for and identify capitalized expenditures Having vendors invoice WFS for some repairs and the RC for others causes confusion, payment delays, and open PO’s Invoice sent to WFS without DOT required supporting documents Invoice sent to WFS with no PO or an invalid PO. Units are checked for open PO’s as part of the PO issuing process, but it is still possible to open a duplicate PO Invoice sent to WFS no total or illegible total Invoice sent to WFS with parts and labor lumped together Parts and labor must be separated to report accurate repair cost Invoice sent to WFS with total that did not match estimated or authorized amount Invoice or supporting documents have an invalid or missing meter reading Odometer / hour meter readings are required for accurate cost reporting as well as to adhere to preventive maintenance interval schedules

“Pushback” for Airgas Policy Violation “PUSHBACK”PROCESS “Pushback” for Airgas Policy Violation No Supporting Documents (DOT/PM Inspection Forms) Repaired w/o Auth or Over RC Approval Limit No PO or Invalid PO Email to RC Asset Manager for Approval Issue PO and Add Estimated Amount for Open PO / Accrual (Pages 4-10) Fill Out Pushback Form and Mail w/Invoice Back to Vendor Receive Approval Receive Invoice and Supporting Documents Scan Invoice and Supporting Documents (Page 3)

BOOKING & CLOSING PROCESS When an invoice is received it must be input into the Airgas vehicle database (Transman). The process for inputting the data is called “Booking & Closing” What information is input into Transman? Unit info Vendor info Parts costs Labor costs Work performed Captured by component code (engine, transmission, PM etc.) Description of work performed Meter reading at time of repair Electronic copies of vendor documents Invoice PM/DOT inspection paperwork Estimates The following is the WFS Booking & Closing process

BOOKING AND CLOSING PROCESS Back to Invoice Process

BOOKING AND CLOSING PROCESS Back to Invoice Process

BOOKING AND CLOSING PROCESS Back to Invoice Process

BOOKING AND CLOSING PROCESS Back to Invoice Process

BOOKING AND CLOSING PROCESS Back to Invoice Process

BOOKING AND CLOSING PROCESS Back to Invoice Process

BOOKING AND CLOSING PROCESS Back to Invoice Process

Back to Invoice Process WFS ORGANIZATION MAINT DBASE A/P ESTIMATES RWA BOOKING & CLOSING Asset Records Transfers/Retirements License Exp Lease Exp Electronic Title Filing Asset Delivery Tracking Staff=3 PO’s Breakdowns Schedule Maintenance Staff=15 A/P Staff=8 Estimates Over RC approval limit “pushbacks” RWA (Repaired Without Authorization) Vendor parts/labor cost negotiation Staff=4 Booking & Closing Auditing Image supporting docs Staff=6 SPECIAL ACCOUNTS Maintain special vendors High invoice volume Slow to invoice Special payment National accounts Staff=4 Back to Invoice Process

DRY ICE PROCESS EXAMPLE

THANK YOU! Thank you very much for your efforts in support of the WFS maintenance administration program. Merret Powers Warner Fleet Services 800-350-1555 http://www.warnerfs.com