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Volvo Group N.A. Freight Optimization Initiative

Monday, April 04, 2011

Date: March 31, 2011

Subject: Volvo Group N.A. Freight Optimization Initiative

Dear Supplier located in and/or shipping from Michigan, Indiana or Ohio,

The Volvo Group N.A. companies of Mack Trucks Inc. Macungie and Lancaster Preferred Partners, Volvo Truck N.A. Dublin VA, Volvo Powertrain Hagerstown and Mack/Volvo Parts Elkridge, Joliet and Lewis Center are included in the scope of a freight transport project that is intended to optimize these group business units supply chain freight shipments and achieve improved control of inbound shipment activities and costs.

The new freight optimization program will start in May with a staggered implementation plan. Starting with Michigan early May, Indiana and Ohio mid-May

The impact to your company will be a change to the shipment schedules you receive from these business units whereby a same fixed pick up/ship day or days of the week will be established from all these units and will be reflected in the ship schedules sent to you. The result of this is that you must prepare your production process to align with shipping to all these business units on the required established day of the week.

ALL transport bookings shall be done using ATLAS.
The firm booking deadline must occur no later than 1:00 p.m. EST at minimum of 1 day before the fixed pick up/ship day.
Bookings after this deadline cannot be accepted into Atlas, due to supplier specific pick up dates and times. If your firm booking is missed, you must contact the customer plants material planning/procurement analyst representative. Such late bookings will result in additional administrative efforts that are of a non-value added nature for the business unit and will incur extra/additional costs in the process.

Depending on your volume of freight to the business units, there could be differing modes of transport set UPS ..e.g. LTL - less than truckload, TL - truckload or milk run Due to the possibility of these differing modes, you must have your goods ready for pick up by 9a.m. EST on the required pick up/ship day.

More detailed information and instructions will be distributed to your department that schedules shipment events with our contracted carriers through the Atlas system. If you have a problem with Atlas or you are not currently set up in Atlas you must contact Matt Lane via email matt.lane@consultant.volvo.com or phone (336) 393 3219.

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