DoDAAD PRCCommercial Addressing

August 23, 2011

Kirstin J. Knott – Director, FedEx Government ServicesJim Solares – Manager, FedEx Government ServicesAddam Cuevas and Mark Edem – Worldwide Account Managers - DLA

•Background

•Best Practices

•Insufficient Address Correction and Reduction

•Benefits of Populating the Commercial Street Address

•Questions

Agenda

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•FedEx delivers thousands of DoD shipments daily

•A significant percentage do not follow standard addressing guidelines which leads to service disruptions and decreases visibility

•FedEx is delivering shipments despite addresses lacking key pieces of information

•Some shipments are delayed due to incomplete delivery addresses

•Lack of information or software field mapping issues are key factors

•As systems become more automated the seriousness of this issue will be amplified

Background

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Commercial Transportation Best Practices• A valid delivery address should be complete and follow standard addressing guidelines

(which include):• Name of recipient/consignee name• Company Name (Facility or location name)• Address Line 1 (Valid street number & name)• Address Line 2 (Ste., bldg., other key pieces of information)• City• State and/or Country• Zip Code (if applicable) • Phone Number

Commercial Addressing

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Commercial Transportation Best Practices – Cont’d.

Valid Address:

Jane Doe

DLA Distribution San Joaquin CA

25600 S Chrisman Rd

Bldg. 56

Tracy, CA 95304

(209) 555 - 1234

Invalid Address:

Receiving - CCP

Bldg 56 Chrisman Rd

25600 Transportation Chief

Tracy, CA 95304

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1. FedEx Express Operations builds delivery routes prior to package arrival to delivery station using recipient address data transmitted from the customer. Delivery route numbers and delivery stop sequence are also assigned .

2. Benefits:

Accurate route planning

Fewer misloads, right package on right truck

Identification and reduction in service risks and failures due to route imbalances

Early courier leave building time results in improved on time delivery performance

3. FedEx Express searches the data transmission (Recipient Name, Recipient Company name and Address Fields 1 & 2) for numeric street address.

Insufficient Address Identification and Reduction

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4. Primary insufficient address types that impede capture of a numeric street address are:

Address field mapped where it pushes the numeric street address out of the FedEx Electronic Data File

Ancillary information placed at the beginning of the address such as a reference number or words like “BLDG” 1870 Aberdeen Ave

Incomplete Recipient Addresses i.e., Fleet and Industrial Supply Ct or Bldg 110 Door 16 90479055777

5. Insufficient Address Summary for June 2011:

Insufficient Address Identification and Reduction

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MeterAcct

Number Customer Total

Volume Insufficient

Address CountInsuffiucient

Addresss Fail Rate Address

Corrections

Address Correction Surcharges

Pct of Address

Corrections6847 17101099 DDSP/DEF DIST DEPOT 94,739 16,022 16.9%5514 17101099 DDSP/DEF DIST DEPOT 53,147 8,792 16.5%5486 95200028 DEF DISTR DEPOT-SAN JOAQUIN 26,307 6,670 25.4%5520 95200028 DEF DISTR DEPOT-SAN JOAQUIN 25,143 6,290 25.0%

267 $2,109.30

71 $606.35

0.18%

0.14%

……requires a sustained address database with proper numeric recipient street address information maintained

Insufficient Address Identification and Reduction

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RECIP NAME ORIG RECIP COMPANY ORIG RECIP ADDR 1 ORIG RECIP ADDR 2 RECIP CITY CITY ZIPBlank FLEET READINESS CENTER SOUTHEA FLEET AND INDUSTRIAL SUPPLY CT BLDG 110 DOOR 16 9047905777 JACKSONVILLE FL 32212Blank SUPPLY OFFICER MF M01149 MWSS 473 4TH MAW MWSG 47 MCAS MIRAMAR BLDG 6026 SAN DIEGO CA 92145Blank FOX CO/4TH TANK BN RR120 STONE BAY CAMP LEJEUNE NC 28542 JACKSONVILLE NC 28542Blank TRAFFIC MANAGEMENT OFFICE MARINE CORP BASE 31916 CAMP PENDELTON CAMP PENDLETON CA 92055Blank W8RX GA ARNG FMS 4 BLDG 21807 8TH AVE FT GORDON GA 30905 AUGUSTA GA 30905Blank TRAFFIC MANAGEMENT OFFICER MF STORAGE 1ST SUP BN CLR 15 M BLDG 2251 MCB PHONE 760 725 CAMP PENDLETON CA 92055Blank W6CJ USAG WHITE SANDS BLDG 1870 ABERDEEN AVE AWCF SSF WHITE SANDS MISSILE RANGE NM 88002Blank STELLAR MARITIME LTD 703-787-9 CO V ALEXANDER AND CO INC POC MR SFINGOPOULOS 212-269-4 STERLING VA 20164Blank EAGLE VAN LINES AIR FREIGHT MF HELLENIC AEROSPACE INDUSTRY PH: 718-995-2034 FAX: 718-553- JAMAICA NY 11434Blank AUSTRALIAN GOVERNMENT CARGO OF C/O DHL GLOBAL FORWARDING TEL 650-449-5508 FAX 650-449- BRISBANE CA 94005

RECIP NAME ORIG RECIP COMPANY ORIG RECIP ADDR 1 ORIG RECIP ADDR 2 RECIP CITY CITY ZIPBlank PRF W8R9 TX ARNG AASF 4 BUILDING 1183 SNYDER STREET ELLINGTON FIELD HOUSTON TX 77034Blank W6CJ USAG WHITE SANDS BLDG 1870 ABERDEEN AVE AWCF SSF WHITE SANDS MISSILE RANGE NM 88002Blank TRAFFIC MANGAMENT OFFICER MF MAG 13 MCP 3D MAW BUILDING 530 MCAS PHONE 760 26 YUMA AZ 85369Blank COMMANDER CODE 884 MARINE CORPS LOGISTICS BASE WHSE 1331 BAY 3 DOOR 10BASE ALBANY GA 31704Blank SERRA INTERNATIONAL C/O CONTAINER CITY TONY COLOMBO 718 656 3746 JAMAICA NY 11413Blank TRAFFIC MANAGEMENT OFFICER MF STORAGE 1ST SUP BN CLR 15 M BLDG 2251 MCB PHONE 760 725 CAMP PENDLETON CA 92055Blank W8RR CA ARNG FMS 21 BLDG 25021 EAST GARRISON CAMP ROBERTS MATES SAN MIGUEL CA 93451Blank W8TV CA ARNG MATES 2 EAST GARRISON RD BLDG 25021 SAN MIGUEL CA 93451 SAN MIGUEL CA 93451Blank W896 AZARNG AASF 2 SILVER BELL ARMY HELIPORT BLDG L 4600 MARANA AZ 85653Blank MALS 29 AVIATION SUPPLY OFFICE MALS 29 MAG 29 2ND MAW MCAS NEW RIVER BLDG 4110 JACKSONVILLE NC 28545

DDS/DEF DIST DEPOT Acct# 017101099 - Meter# 6847 - June 2011

DEF DISTR DEPOT SAN JOAQUIN - Acct# 095200028 - Meter# 5486 - June 2011

Data Transmission Insufficient Address Examples

What is FedEx doing today?• Utilizing your data feed to create routes and stop counts for couriers• Valid data is critical as it allows for proper load planning so that shipments can be

delivered on-time • Invalid or Blank address fields cause inbound shipments to be worked by our staff and

manually assigned a stop location. A few things:– The location selected manually may not be the right location– The material may be delivered to the right location; however, inbound visibility efforts to track

the material will most likely still be ineffectual. Material that must go to a specific location, such as secret or classified material, may not be delivered to the right location causing delays in securing the material internally

– Any subsequent variation of that address will cause the process to start all over again once potentially fixed

The Future is Now

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What Can Standardized Addressing Accomplish?• The right product, to the right customer, at the right time…..on time• Improved data integrity• Better utilization of data, i.e.. FedEx Insight….Inbound visibility

– DLA Dashboard Project (currently only 60% accurate data available)

• Mitigation of possible address correction fees• Better utilization of DoD staff resources – Reduction of SG&A

– Eliminate the need to clarify information needed for delivery– Task DoD staff to perform more important tasks

• Allows your partners to perform their functions more efficiently• Ultimately, the DoD will experience significant time savings

Additional Benefits

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Questions?

Valid Addresses saves time and money….

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