Chainalytics Announces Continued Growth of Transportation Benchmarking

Model-Based Benchmarking Consortium Surpasses $13 Billion Mark
ATLANTA--(Business Wire)--
Chainalytics LLC, a supply chain services firm specializing in applying
analytics to enhance fact-based decisions in strategic and tactical supply chain
planning, announced today the successful growth of its Model-Based Benchmarking
Consortium (MBBC) and results of the latest model-based benchmark for
transportation at its latest Summit. The MBBC Summit is an open forum where
members can meet with peers across all industries to discuss market events and
techniques for improving processes, rates, and carrier relationships.

In 2003, Chainalytics created the MBBC, a group of shipper companies that use
the model-based benchmark to better understand how they are performing in the
market. Since then, the consortium has grown 800% to 62 members with over $13
billion in transportation spend -- roughly 4% of the U.S. for-hire truckload
market. Chainalytics uses an econometric modeling approach to transportation
benchmarking, enabling the members to confidentially compare their unique
transportation costs against the broader market, gain insight into the business
practices that drive transportation costs, and assist them in evaluating the
impact of alternative strategies such as deploying a dedicated fleet.

The MBBC consortium helps its members keep the pulse on the very dynamic
transportation market. When companies simply measure their year-to-year
progress, they are not considering market dynamics. Simply improving over last
year may not be enough if the entire market is down. "By being a member of the
MBBC, we saw we were paying way above our peers," said a transportation
executive of a multi-billion retailer. "Our favorite thing about being a member
is that carriers give us their best-effort rates first."

As well as detailed reports that show lane-level market performance, consortium
members also receive analytical tools to assist them in day-to-day operations.
MBBC Estimators help members analyze lanes on which they do not currently
operate and can highlight the competitive rate for any origin-destination pair.

"The rate estimator was really great for us as it sped up a process that
normally takes us weeks to do," said Stan Brooks, Director of Transportation at
Mohawk Industries. "Being a member was the key to helping us address the lanes
with the largest percent over market. This resulted in an annual rate reduction
of $100,000 with a carrier that held 14 of our top 20 worst lanes."

The most recent model analyzed over 11.5 million loads and over $13 billion in
transportation spend - an 11% growth over the previous model. Since inception,
membership has grown from 7 members to 62 members, including companies ranging
from over $1 billion in freight to those shipping under $50 million annually.
The recent model included benchmarks for truckload dry van, refrigerated,
flatbed and intermodal covering the US, Canada, and in and out of Mexico.
Chainalytics continues to expand the geographic scope of its services which now
includes a recently completed model for truckload service in India and will
continue to grow the existing benchmarking consortiums of global ocean container
services and US-Less-than-truckload (LTL) freight. In addition, MBBC will
continue to evaluate management practices' impact on rates, such as fuel
surcharge program structure, accessorial programs, lane definition, and carrier
performance metrics. Another recent extension of the consortium, MBBC Lane
Matching, is helping members collaborate across companies to reduce empty miles
and improve asset utilization.

"Members once had to sell senior management on the concept of benchmarking,"
said Gary Girotti, Vice President Transportation Practice at Chainalytics. "In
today`s economic climate, benchmarking initiatives are being endorsed in the
corner office. The MBBC is helping our members positively impact carrier
relations, sustainability, and forecasting, while ultimately reducing costs.
It`s no longer lip-service."

About Chainalytics

Chainalytics is a professional services firm that enhances competitive advantage
and shareholder value through optimized supply chain strategies. Chainalytics'
fact-based decision making approach improves and innovates our clients'
strategies and tactics with particular emphasis on supply chain design,
transportation strategies, inventory strategies, and product and customer
portfolio planning. Offered as both project-based and managed services, this
approach is achieved via a unique combination of domain expertise, resilient
methodologies, and exclusive research and content - all supported by the world's
most advanced decision sciences tools and techniques. Chainalytics targets
enterprises with a high degree of complexity created by their unique
combinations of scale, change and geography. With offices in North America and
Asia, Chainalytics serves companies globally in a borderless fashion. Learn more
at www.chainalytics.com.

Chainalytics LLC
Media Contact:
Nicky Brown-Gilstrap, 770-433-1566
ngilstrap@chainalytics.com

Copyright Business Wire 2009