Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Managing by the Numbers: CSA and Fleet Safety Management.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Managing by the Numbers: CSA and Fleet Safety Management This webcast will cover... CSA -- Post Launch Update, Managing Roadside Inspections and Interventions, Kraft Foods CSA Compliance Efforts, and Question & Answer Moderator Dr. Gary Petty, President & CEO, NPTC Panelists Tom Moore, Vice President of Education, NPTC Tom Bray, Editor – Transportation Management, J. J. Keller & Associates, Inc. Scott Willert, Senior Manager, Private & Dedicated Fleets, Kraft Foods Jeff Jones, Senior Manager Logistics Operations, Kraft Foods Attention Attendees: +Thank you for attending! +The presentation will start in a few minutes at 1:00 PM Central. +Please use your computer speakers to listen to the event. If you have audio issues, dial-in info is below. +You will be muted during the event. +Please use the Question feature to text questions to “Q & A”. We’ll try to answer them during the Q&A period if they are not covered in the presentation. +The slides will be posted in 1-2 days and the recording in 7 days at http://www.jjkeller.com/nptcinfo

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Dr. Gary Petty President & CEO National Private Truck Council

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Introduction CSA -- Post Launch Update – Tom Moore Managing Roadside Inspections and Interventions – Tom Bray Kraft Foods CSA Compliance Efforts – Scott Willert & Jeff Jones Housekeeping issues:  You will be muted during the event.  Please use the Question feature to text questions to the Q&A Panelist. We’ll try to answer them during the Q&A period if they are not covered in the presentation.  If you lose sound at any point, you can dial-in by phone using the number and Pass Code listed below.  If you lose the program window and need to re-login be sure to enter a different e-mail address to avoid being denied access for multiple logins. Gary Petty National Private Truck Council

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Introduction and Disclaimers The content in this webcast is intended for information purposes only and should not be construed as providing legal advice. This is an introductory course and is intended to highlight critical safety and compliance topics. Time constraints limit our ability to go in depth. We invite you to ask questions. We will answer them throughout today’s webcast. This is a two-part webcast. Tomorrow’s webcast will take a closer look at driver coaching. If you haven’t signed up you can at http://www.jjkeller.com/nptcinfohttp://www.jjkeller.com/nptcinfo Gary Petty National Private Truck Council

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Tom Moore, CTP Vice President of Education National Private Truck Council

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451  Why CSA? Tom Moore National Private Truck Council

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451  Is the New SMS a Good Predictor of Crash Rates? Tom Moore National Private Truck Council

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 What Does This Mean? The upside is:  Crash rates should go down The downside is:  Increased likelihood of FMCSA intervention  Recruiting and retaining drivers just got more difficult  Greater scrutiny from insurance companies  Plaintiff attorneys’ jobs just got easier!  ISS will change from “Pass” to “Inspect”. With an average of 30 minutes per roadside inspection, this will slow you down Tom Moore National Private Truck Council

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 SMS Process Uses seven “BASICs” (Behavior Analysis and Safety Improvement Categories) to analyze carriers Measures and compares safety performance using all safety- based violations discovered during roadside inspections and interventions, and DOT-recordable crashes All violations are severity and time weighted  Severity Weight - Violations 1-10, Accidents 1-3  Time Weight - 0-6 months = 3, 6-12 = 2, 12-24 = 1  Full value is determined by a formula that multiplies the weights Once per month, scores are totaled, normalized, and used to percentile- order carriers in each BASIC versus peers in Safety Event Groups Carriers with percentiles that exceed the BASIC thresholds will be targeted for intervention Tom Moore National Private Truck Council

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 BASICPassengerHazmatOthers Unsafe Driving Fatigued Driving Crash 50%60%65% Driver Fitness Drugs/ Alcohol Vehicle Maintenance Cargo-Related 65%75%80% Complaints and crashes can lead to investigative interventions as well Intervention Thresholds Tom Moore National Private Truck Council

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 In CSA process, “Alert” status starts the intervention process Based on FMCSA policy, not regulations Drivers too, but only in relation to a carrier investigation CSA Intervention Process Tom Moore National Private Truck Council

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Interventions Intervention Process – How It Works:  Early Contact:  “Warning”: Carrier notified via warning letter  “Targeted roadside enforcement” - Carrier’s ISS recommendation changed to “Inspect” Tom Moore National Private Truck Council

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Interventions Investigative:  “Focused” reviews (on and off site): Based on BASIC(s) the carrier is above the intervention threshold  “Comprehensive” review: Full and complete audit  Request for documents starts process  Investigator looking for violations  Investigator also checking carrier’s Safety Management Controls (policies, procedures, responsibilities, accountabilities, qualifications processes, training, internal tracking, corrections, etc.) Tom Moore National Private Truck Council

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Intervention Scoring Investigative Intervention scoring: Investigation cannot improve BASIC Score, but can “flip” a BASIC to “Alert” regardless of calculated score Based on violations of serious regulations discovered during investigations and audits  One “very serious” violation or a pattern of “other serious violations” Tom Moore National Private Truck Council

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Interventions Follow-on: Used if a problem is found  Cooperative Safety Plan  Notice of Violation  Notice of Claim  Settlement agreement  Unfit suspension: Carrier declared “Unsatisfactory” following Comprehensive Review and fails to make necessary corrections and/or settle Notice of Claim Tom Moore National Private Truck Council

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Which Intervention? Specific intervention will depend on: Which BASIC(s) the carrier is over  “Stand-Alone BASICs” How far over the threshold the carrier is How many BASICs exceed the threshold Enforcement history Tom Moore National Private Truck Council

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Tom Moore National Private Truck Council Top 10 States with Highest % of Inspections with Violations StateViolation RateOOS Rate Viol/ Inspect Top Violation Wisconsin87.1328.614.08395.8 - Log violation Michigan86.9917.802.20392.2S - Speeding Idaho86.4924.083.21392.2S - Speeding Arizona85.7821.863.37395.8 - Log violation Massachusetts85.4721.332.48392.2S - Speeding Texas84.3820.914.16391.11B2 - Non-English Speaking Connecticut84.3333.823.39392.16 - Failing to Use Seat Belt Louisiana82.5827.252.47392.16 - Failing to Use Seat Belt Rhode Island82.0719.334.03391.41A – No Med Certificate Indiana81.9710.521.98392.2S - Speeding Source: http://ai.fmcsa.dot.gov/SafetyProgram/spViolation.aspx?rpt=RDDVhttp://ai.fmcsa.dot.gov/SafetyProgram/spViolation.aspx?rpt=RDDV

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Tom Bray Editor, Transportation Management J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 “Insufficient Data” With the latest update carriers that do not meet sufficiency requirements have BASIC Scores of:  “Insufficient data”: Carrier did not even meet the minimum data standards.  “Inconclusive”: There is data there, but the sufficiency standard was not met.  “No violations”: Carrier was not scored in the BASIC due to not having a violation in it.  “Not Available” : Means data will not be displayed Neither good nor bad…need to review the data behind these “scores” to determine if carrier is in good or bad shape

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Unsafe Driving Violations that affect BASIC Measure and Score:  Speeding  Failure to wear seatbelt  Failure to obey traffic control device  Following too close Discovered during auditing:  Allowing driver to violate local laws  Scheduling runs to necessitate speeding Speeding violations appeared on more than 170,000 inspection reports in 2010 claiming the top spot, and seat belt violations are #7 with over 70,000 Tom Bray J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Preventing Unsafe Driving Interventions How to Prevent an Intervention in this BASIC:  Effective driver hiring and screening processes (past performance…)  Driver road testing, training, and retraining  Require defensive and safe driving  Track driver performance  Watch scheduling and hours of service compliance (poor HOS compliance indication of scheduling problems)  Consider speed limiters, on-board data recorders, LDWS, and CWS Tom Bray J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Fatigued Driving Violations that affect BASIC Measure and Score :  Form and manner  Logs not current  Over-hours violations  No logs  False logs Discovered during auditing:  No logs  False logs  Failure to retain logs or supporting documents The above-listed violations account for 5 of the top 10 violations Tom Bray J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Preventing Fatigued Driving Interventions How to Prevent an Intervention in this BASIC: Management commitment to compliant culture Driver training and retraining Auditing, counseling, remedial training, verified correction Driver supervisor training and assigned responsibilities Driver and supervisor performance tracking Policies that discipline when problem found, reward when good behavior displayed Tom Bray J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Driver Fitness Violations that affect BASIC Measure and Score :  No or expired medical certificate  Non-English speaking driver  No license  Class and endorsement violations Discovered during auditing:  No inquiry into employment record (SPH)  Failing to maintain DQ file on each driver  Using an unqualified driver  No or expired medical certificate Non-English speaking and medical certificate violations are #5 and #10, respectively Tom Bray J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Preventing Driver Fitness Interventions How to Prevent an Intervention in this BASIC: Verify driver qualifications at hire:  Training and/or experience  License  Medical card  Complete DQ file Track qualifications after hire (tickler system) Make sure driver remains qualified Verify qualifications regularly  Annually/semi-annually/quarterly  Whenever significant event occurs Tom Bray J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Drugs and Alcohol Violations that effect BASIC Measure and Score :  Possession/use/under influence alcohol during or within 4hrs of duty  Driver uses or is in possession of drugs Discovered during auditing:  Using a driver before receiving a pre-employment result  Failing to implement an alcohol/drug testing program  Failing to do random tests at applicable annual rate  Using a driver who tested positive for a drug Tom Bray J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Preventing Drugs and Alcohol Interventions How to Prevent an Intervention in this BASIC: Clear and concise drug and alcohol policy Doing the required testing and immediately removing drivers that fail a test Trained “supervisors” Swift and severe consequences Banning alcohol and drugs (prescription drugs that have been cleared by the driver’s and company doctor being the exception) from company property and vehicles Tom Bray J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Vehicle Maintenance Violations that effect BASIC Measure and Score :  No/defective/inoperable light  Brake defects/adjustment  Tire tread  No annual inspection Discovered during auditing:  DVIR errors (number 1 violation discovered during auditing)  Using a vehicle not periodically (annually) inspected  Failing to have maintenance records  Operating an out-of-service vehicle  Operating a vehicle with defective parts Tom Bray J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Preventing Vehicle Maintenance Interventions How to Prevent an Intervention in this BASIC: Vehicles well maintained by a competent maintenance department/contractor Qualified technicians inspecting and maintaining the vehicles at regular intervals (not just “fixing when broke”) Drivers doing vehicle inspections (pre-trip, enroute, and post- trip) and addressing problems when found Sound decisions related to on-road repairs DVIRs submitted at end of each workday and problems addressed Tracking of inspection and maintenance activities (including annual), vehicle problems, roadside inspection reports, and repairs Tom Bray J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Cargo Related Violations that effect BASIC Measure and Score :  Damaged or loose tiedown  Failing to secure vehicle equipment or load  HM placard missing, damaged, or obscured  HM package not secure  Shipping paper errors Discovered during auditing:  Security plan problems  No shipping paper for HM shipment  Accepting and transporting HM not prepared properly  Failure to maintain copies of cargo tank certificates Tom Bray J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Preventing Cargo Related Interventions How to Prevent an Intervention in this BASIC: Train, train, train Make sure drivers:  Know what they are doing  Know to ask questions Have replacement procedures for defective equipment Provide drivers with hands-on information  Handbook  Cheat sheets  Support numbers (expert and/or mentor) Tom Bray J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Crash Indicator What affects this BASIC?  DOT recordable crashes (preventability is not a factor, all crashes count)  Based on injury or fatality vs. no injury and the release of a hazardous material (cargo) Tom Bray J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Preventing Crash Interventions How to Prevent an Intervention in this BASIC: Reduce crashes (eliminate preventable crashes) Effective driver hiring and screening processes (past performance…) Driver road testing, training, and retraining Require defensive and safe driving Track driver performance Consider speed limiters, on-board data recorders, LDWS, and CWS Investigate all crashes and track trends  Fix problems trends uncover Tom Bray J. J. Keller & Associates, Inc.

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Scott Willert Sr. Manager, Private & Dedicated Fleets Kraft Foods Jeff Jones Sr. Manager, Logistics Operations Kraft Foods

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Kraft Foods Fleet Operations Scott Willert Kraft Foods Fleet consists of :  1,450 Power Units of varied types  1,530 Trailers  1,873 CDL Drivers Kraft Foods maintains two fleets…

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Impact of CSA on Kraft Foods Re-evaluated hiring practices Re-defined driver and management training, specifically, as it applies to CSA Participating in best practice discussions with other companies Although the requirement is every 24 months, due to CSA we now update our MCS-150 bi-annually. Stringent procedures in place prior to CSA. Continue to reinforce. Reset scope of 3PL compliance management company reporting practices Scott Willert Kraft Foods

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Driver Coaching and Incentives in a CSA World Driver coaching has not changed after launch of CSA. Kraft historically has and continues to use roadside inspection and crash reports as a means of identifying areas of focus for driver coaching. Kraft does not incentivize drivers for clean inspections. Our philosophy is it’s a job requirement to operate in compliance. Driver coaching will be covered in greater detail in tomorrow’s webcast. Jeff Jones Kraft Foods

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Driver Hiring Criteria & Onboarding Process Due to the number of facilities and to ensure consistency we utilize a 3 rd party for all on-boarding processes. Current Criteria  2 years’ driving experience in class A equipment  Clean driving record  Preventable motor vehicle accident free  Successful completion of road test  Successful completion of written evaluation Scott Willert Kraft Foods

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Proactive Driver Fatigue BASIC Management - HOS Reporting Jeff Jones Kraft Foods

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Proactive Vehicle Maintenance BASIC Management DSD Fleet has implemented EVIR process  Improved defect tracking  Improved driver inspection tracking Independent monitoring of EVIR w/ communications to Field Managers  Enables coaching sessions with Drivers for EVIR processes Maintenance providers engaged with EVIR defect repair management through  Enables maintenance providers to be more proactive and better utilizes their onsite service trucks and in shop scheduling  Better tracking of defect resolution Private Fleet tractors are equipped with a CSA kit (light bulbs, fuses, etc.) Jeff Jones Kraft Foods

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Proactive Vehicle Maintenance BASIC Management – EVIR Reporting Jeff Jones Kraft Foods

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Proactive Vehicle Maintenance BASIC Management – EVIR Reporting EVIR Report - Incomplete Inspections DateAssetFirst Name Last Name Repair Count Defect Count Config LabelManualVerified Extractor DeviceDuration 10/27/2010 18:36 N29020 BeanBob 00 TRACTOR POST-TRIP 00UNK0:05:02 10/27/2010 3:3354285 NoeJohn 01 TRACTOR PRE-TRIP00UNK0:11:08 10/25/2010 13:2510097 FrickeDave 06 TRACTOR POST-TRIP00UNK0:05:26 10/25/2010 3:1728706 EllisMike 00 TRACTOR PRE-TRIP00UNK0:04:33 Jeff Jones Kraft Foods

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Proactive Driver Fitness BASIC Management – DQ Management Reporting Company /Location StateLastFirst Emp # DocumentTypeStatusDoc DateExp Date 110WINoeJohn309 Annual Review (391.25)Maintenance 90 DAY NOTICE4/6/20104/5/2011 110WINoeJohn309 Copy of Operator's License (391.11) VS4Maintenance REMINDE R 4/12/200 6 2/12/20 11 110WINoeJohn309 Medical Exam Long Form (391.43) VS1Maintenance 60 DAY NOTICE 3/13/200 9 3/13/20 11 110WINoeJohn309 Medical Exam Wallet Card (391.43) VS3Maintenance 60 DAY NOTICE 3/13/200 9 3/13/20 11 110WIBeanBob310 Medical Exam Long Form (391.43) VS1Maintenance 60 DAY NOTICE 3/30/200 9 3/30/20 11 110WIBeanBob310 Medical Exam Wallet Card (391.43) VS3Maintenance 60 DAY NOTICE 3/30/200 9 3/30/20 11 Jeff Jones Kraft Foods

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 CSA Impact on Shipper Contract Carrier Management Broad range of measurements and increased transparency require higher level on ongoing monitoring by shippers to mitigate risk  Kraft Foods action plan:  Considering changes to motor carrier contract language to recognize CSA requirements  Carrier score monitoring process (3 rd party provided) –Supply provider with USDOT numbers of all contract carriers (including Fleet) –Monthly reports emailed showing carrier scores: ranked worst to first –Thresholds established for warning levels consistent with intervention and “out of service” CSA parameters. –Expanded distribution list of reports for carriers reaching threshold levels  Consult your counsel and/or NPTC Counsel Rick Schweitzer with legal inquiries Scott Willert Kraft Foods

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Question & Answer Please submit questions to “Q&A” using the Q&A tool Gary Petty National Private Truck Council Tom Moore National Private Truck Council Tom Bray J. J. Keller & Associates, Inc. Scott Willert Kraft Foods Jeff Jones Kraft Foods

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Closing Remarks Checkout the archive of past topics at: http://www.jjkeller.com/nptcinfo http://www.jjkeller.com/nptcinfo  PowerPoint slides up in 1-2 days  Recording up in 1 week Topics for 2011:  February 10 – Managing by the Numbers – CSA and Driver Management  May 11 – The EOBR Rule and Elogs  July 13 – Fleet Excellence: Driver Wellness  October 12 – Fleet Excellence: Driver Discipline and Coaching Gary Petty National Private Truck Council

Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Managing by the Numbers: CSA and Fleet Safety Management.

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Dial-in: 1-888-824-5783, Pass Code: 75154299#; Tech Support: 1-888-259-8414, Webinar ID: 185661451 Managing by the Numbers: CSA and Fleet Safety Management.

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