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Hub Group taps SAS to optimize operations, reduce costs

SAS/OR® project paid for itself in the first quarter with performance improvements

SAS® GLOBAL FORUM, SAN ANTONIO, TEXAS, March 17, 2008 -– SAS, the leader in business intelligence, helps Hub Group, a $1.6 billion asset light transportation company, make cost-saving decisions across its network. The optimization problem Hub faces is complex due to the number of Hub offices, equipment and rail provider choices. Using SAS predictive analytics and mathematical optimization software, Hub managers are more confident they are making improved decisions.

With competition keen and customer needs urgent, Hub can’t afford errors when arranging freight transportation. Using their new system based on SAS, Hub increases profits by matching customers' needs with carriers' capacity and providing appropriate service combinations to optimally allocate resources. In spite of an increasing cost basis in 2007, since putting their SAS/OR solution in production in Q4 of 2007, Hub transportation costs per unit have declined compared to the same period in 2006, raising profits. In fact, the project paid for itself the first quarter with performance improvements.

Making Profitable Decisions

“Our network optimization program, based on SAS/OR, lets dispatchers and customer service representatives make more profitable decisions for Hub on a day-to-day basis,” said Gregg Grabijas, Assistant Vice President, Hub Group. “The system enables Hub to make more accurate decisions because it gives staff a clearer and broader picture of the network’s current and future conditions.”

“SAS/OR brings Hub Group a scientific approach to optimizing transportation,” said Mary Grace Crissey, SAS Global Marketing Manager. “With SAS, they are making fact-based decisions by integrating massive amounts of historical and real-time data with reliable analytics to deliver insights. That can reap millions in savings.”

“Hub leverages essential data analysis, forecasting and optimization modeling in this system based on SAS’ integrated environment – now the back end for its transaction processing system,” said Michael Gorman, Associate Professor at the University of Dayton School of Business and President of MFG Consulting Inc., who developed the system for Hub. “Although the user screens are the same, it is now powered by an array of mathematical optimization, resource yield management, and simulation techniques at their fingertips. This power enables better decisions.”

About SAS/OR®

No other vendor offers as broad an array of optimization and management science methods as SAS. Capabilities delivered by SAS/OR software include:

* Linear, mixed-integer, quadratic, and general nonlinear optimization, including a symbolic, algebraic optimization modeling language.

* Project and resource scheduling, including graphical project and schedule displays.

* Discrete event simulation.

* Genetic algorithms and constraint programming.

* Bill of materials processing.

Using the SAS Enterprise Intelligence Platform as a foundation, SAS offers targeted business solutions that support customer intelligence, financial intelligence, supply chain intelligence and more – as well as turnkey solutions for vertical markets such as financial services, healthcare, transportation, and manufacturing.

Today’s announcement came at SAS Global Forum, the largest annual SAS users group conference, attended by more than 3,000 business and IT users of SAS software and solutions.

About SAS

SAS is the leader in business intelligence and analytical software and services. Customers at more than 44,000 sites use SAS software to improve performance through insight from data, resulting in faster, more accurate business decisions; more profitable relationships with customers and suppliers; compliance with governmental regulations; research breakthroughs; and better products and processes. Only SAS offers leading data integration, storage, analytics and business intelligence applications within a comprehensive enterprise intelligence platform. Since 1976, SAS has been giving customers around the world The Power to Know® .



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