WIXLIB

TC10 MaintenanceMeetingCHATA NO O G A, T N

Getting Started Opening Comments from the Chairman Review the Agenda & Housekeeping Anti-Trust Review Roundtable Introductions

“Hot Topics” Around the Room to discuss the “HotTopics” that are facing Your Businesstoday. What are your Biggest Challenges inMaintenance and in Total with this NewMarket Demand?

November 1, 2017 Transport Enterprise Leasing, LLC

Fundamental Guiding PrincipalCreate a three way mutually beneficial relationship betweenTEL, Partner Carrier and the Independent Contractor where theI/C is provided a new or near new truck at sensible pricingalong with a set of business tools to enable the highestprobability of success resulting in consistent, predictablecapacity for Partner Carrier. Transport Enterprise Leasing, LLC

Proven low turnover rates (10% – 35%) for similarsized fleets Easy Access to New & near new trucks Ability to reduce/minimize Capital Investments Interest savings on reduced Capital Investment Transport Enterprise Leasing, LLC

True third-party lease relationship with Operators All Lease and truck administrative processes handled by TEL No truck maintenance or liquidation administration required Transport Enterprise Leasing, LLC

Sustainable weekly payments Successful Escrow & 24/7/365 Breakdown Service Unsurpassed suite of services for I/C success Transport Enterprise Leasing, LLC

Third-party “arms length” FMV lease with Purchase Option Maintenance Escrow Program Maintenance Advisor Program 24/7 Breakdown Service with national buying power New I/C Startup Program managed by TEL ATBS Business Services Transport Enterprise Leasing, LLC

New Freightliner Evolutions, Volvo 780s,& Kenworth T680s SCR technologyImproved Fuel EconomyHigher level of dependabilityDriver Friendly, refrigerators & invertersWarranty 5 year up to 550,000 mile OEM coverage Includes exhaust after treatment & extendedchassis coverage Transport Enterprise Leasing, LLC

Guaranteed Pass through of weekly lease payments Loss Pool risk mitigation on early lease terminations Re-leasing time-frame guarantee Transport Enterprise Leasing, LLC

Multi-million dollar truck purchase ability Established national network of used-truck buyers Seasoned professional team of used-truck sales staff Proven ability to turn 4,000 used trucks annually Transport Enterprise Leasing, LLC

Composite Review

Maintenance SurveyResults

Maintenance Survey Review Oil change intervals; are you increasing ordecreasing? What resources do youconsult when altering these parameters? What’s your best and lowest cost APU?Are you looking at or trying anythingNew?

Preventive Maintenance How do you review and update your PreventiveMaintenance schedules with respect to New EquipmentParameters, Recalls, and Network channels? Predictive metrics based off downtime, and set Goals? How do you communicate Overdue Inspections toOperations? How do you Schedule Trucks & Trailers into your Shops? How are you employing Diagnostic telematics into yourpreventive maintenance repairs?

Best Idea Session Bring the Best Idea you ever introduced, thatgave you the biggest impact on Loweringyour Maintenance Costs. Each Carrier will put 40 in the Pool; after allpresentations, we will vote for the top Idea,and we will split the pool 60/40 between theTop 2 Vote Getters. Good Luck!

Shop Floor Management What is your Driver Handling Process forWrite Up and Follow Up How is your Shop Floor set up for Foremen,Lead Techs, Teams, etc? How do you dispatch work to the Shop Floor,and do you include Work Plans SRT Tracking for your Shop Repair Estimates

Southern RefrigeratedTransport OverviewT E X A R KA NA , A RMA INT ENA NCE P R O G R A MD I R E CTE D B Y R A ND A L L B L A NK E NS HIP

Southern Refrigerated Transport Fleet Size: 895 Maintenance Employees: 53 Number of Maintenance Facilities: 4 Types of Repairs: Preventative Maintenance,Mechanical and Body 365-Day Operation

Overview SRT TERMINAL LAYOUTMAINTENANCE PERSONNELMAINTENANCE SYSTEMINSPECTION BAYMAIN SHOPBODY SHOPPRODUCTIVITY AND EFFICIENCYIN-HOUSE DOWN TIMEOTR EQUIPMENT DOWN LISTCSA VIOLATIONS AND FOLLOW UPTECHNICIAN/DRIVER RELATIONSGOALSQUESTIONS?

SRT TERMINAL LAYOUT

SRT MAINTENANCEPERSONNEL Service Manager 26 Main Shop Personnel 4 Foremen 3 Lead Technicians 17 Technicians 1 Detail Specialist 1 Onboarding Specialist Body Shop Manager 9 Body Shop Technicians 1 Foreman 8 Body Technicians

Maintenance System TMT System Roadcall Breakdown Shop Planner Units NeedingRepairs Tracks EmployeeTime TMT System Fleet Maintenance PM Services Employee Time Repair History Inventory Tracking Unit Inventory

INSPECTION BAY 1 Foreman 3 Lead Technicians 3 Technicians Inspection Bay is a24/7 - 365 dayOperation 1 Lead and 1Technician on eachshift

INSPECTION BAY Unit comes on the yard and goes into theInspection Bay Inspection bay performs any Preventativemaintenance that is due on any unit Inspection bay looks for any issues oranything that could become an issuebefore the next service is due on the unit Inspection bay Writes the truck up for anyissues found and gets engaged with theprofessional driver to obtain knowledge ofany other issues. Inspection bay will repair all small or minorissues ex. mudflaps, light, etc. If no issues are found the inspection baycloses work order and unit is complete andready to go Ticket is added to the list for Main shop inTMT

MAIN SHOP 2- Foremen on dayshift 1- Foreman on nightshift 10- Technicians onday shift 4- Technicians onnight shift Main shop is a 356day operation

MAIN SHOP Main shop Receives Work order Shop foreman separates work order bydates (oldest-newest) and assigns the workorder to technician Technician performs a DOT inspection toensure all issues were written up. Tech willadd sections to work order if anything wasmissed during the inspection Technician works on unit and puts detailedcomments in TMT on what was performedon the unit Foreman Performs a visual check before theunit is moved out of the shop Technician completes the repair and parksthe unit on ready line

BODY SHOP 1- Foreman 8- Body ShopTechnicians Body shop does notoperate a night shift Body Shop is a 365day operation

BODY SHOP Body Shop Receives Work order Shop foreman separates work order bydates (oldest-newest) and assigns the workorder to technician Technician performs a DOT inspection toensure all issues were written up. Tech willadd sections to work order if anything wasmissed during the inspection Technician works on unit and puts detailedcomments in TMT on what was performedon the unit Foreman Performs a visual check before theunit is moved out of the shop Technician completes the repair and parksthe unit on ready line

PRODUCTIVITY AND EFFICIENCY All Foremen track productivity/Managers track efficiency Foremen have a daily productivity sheetthey are responsible for completing daily Hourly productivity checks are completed onthe form and given to the manager at the endof each shift Managers track efficiency weekly oneach technician Managers combine each technician weeklyand monthly to have a total for entire group Manager discusses with technician in theevent the technician has a rating below 80% DOM receives weekly and monthly copyto review. DOM and managers will discuss results

IN-HOUSE DOWN TIME Downtime reviewed weekly Service writer closes tickets as technicianscomplete work on each unit Units down waiting on parts reviewedcontinuously through out the day to ensureparts get received

OTR EQUIPMENT DOWN LIST Tracks any unit down for more than 24 hoursincluding abandonments Updated multiple times per day Tracks when a unit is ready Keeps operations knowledgeable on thestatus of repair including estimated ETR. Provides a list of all units ready for pickup tooperations daily Weekly meeting on Long term down units

CSA VIOLATIONS AND FOLLOW UP CSA violations updated daily Reports reviewed Day Drivers whom received the violations are contacted to verify repairs havebeen made Breakdown follows up to ensure repairs get completed by an approvedoutside vendor. If breakdown send a unit to an approved vendor for repairs and no issues are foundbreakdown notifies safety in order for the company to dispute the violations Reports reviewed weekly by Service Manager, Breakdown Manager and DOMto spot reoccurring violations to inform the in-house technicians what thereoccurring issues are Praise Messages sent via q-com to drivers with clean inspections

TECHNICIAN & DRIVER RELATIONS Technicians are encouraged toget involved with the drivers Our professional drivers havethe ability to speak to anyoneincluding management on anyquestions or concerns If we are unable to verify anissue on a unit we require theforeman or the technician topersonally call the driver orrequest to speak with thedriver personally Maintenance surveys aregiven to the drivers to rateeach technician

GOALS To create a seamless process for ourprofessional drivers (from enteringthe yard to leaving the yard) To create a personal culture with ourprofessional drivers To provide safe and reliableequipment to our professional drivers Remove any unnecessary downtimeby ensuring the repairs areperformed correctly the first time

QUESTIONS

Tour GroupsRandall BlankenshipSteve WykleBrad BaadeTom Grojean Jr.Mike RinehartAaron WhitneyEric PetersDiana Holman-DismukeJohnny BranstineTerrence BloodworthPhil lBay & BayDeckerHirschbachNationalNavajoRoehlPaul BunnSam AndersonGary HortonDan WallaceJim FranckDon DigbyKevin LiedersTim FlaniganTim BurnsChris KellyBrad PinchukOperationsBay & BayDeckerHirschbachNationalNavajoRoehlBay & BayDeckerNavajoHirschbach

Carrier Visit 3:00 pm Depart The Chattanoogan toCovenant 5:00 pm Depart Covenant to Hotel 6:00 pm Depart Hotel 6:15 pm Arrive Dinner Site 9:00 pm Depart Dinner Site

Administration Old Business: Membership New Business: TPP Meetings: March 9th & 10th - Ahead of Foodshippers;Phoenix, AZ (Topic?) Fall Meeting Location

Takeaways from Yesterday Maintenance Leaders Takeaways fromYesterdays Meeting? Tiered Tech Programs

Covenant Feedback1. Questions on what you saw?2. Things you Liked?3. Things you would suggest to consider?

Covenant’s PerformanceMetric Presentation

Maintenance ManagementDiscussion How do you Meet & report the Performance of theMaintenance Department? What are your Top 2 Key Benchmarks you use forMaintenance? Direct vs. Indirect Time Tracking and Use on the Floor Mechanic Incentives Used? Are you happy with your Current Maintenance Software? What is done in your Shop vs. Local Vendor?

Downtime Survey Results

Equipment Downtime (Roehl) How do you Track, Review, andCommunicate Over-the-Road Trucks Downto Operations? Outside Repairs solutions to poor root causeanalysis and tactics to expedite diagnosis. How is everyone's after-hours coveragesetup?

Unscheduled DowntimeRepairs

Unscheduled Downtime Repair Process Truck goes down on the roadRoad repair team takes the callTroubleshoot issue with our driver using system driven troubleshooting guidanceRoad repair team creates the incident in the breakdown systemVendor selected within our ranked vendor master system Selection based on parts availability and commitment to repair timeE-Mail operations/customer service team with the breakdown issue with theestimated repair time and a link to follow the repair incidentRoad repair team contacts OE Local & National contactsRoad repair coordinator contacts the dealer hourly for repair updates and keeps incontact with driver, fleet manager and customer service on the status of repairsWhen repairs completed issue purchase order to vendorDriver, operations/customer service notified repairs are completeAfter completed repairs a survey is sent to our driverFollow-up with the driver to make sure the completed repair resolved the complaint