b2b transportation and logistics exchange for the latin american region lets cargo
Post on 21-Dec-2015
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lets cargoThe problem (for carriers)
Once carriers deliver their cargo...
In the end, shippers do.Who pays for all this inefficiency?
Zzzzz
...they usually have to wait a day or twountil they find a contract back home
...because they do not know many shippers in their destination area...
lets cargoThe problem (for shippers)Shipper realizes it
needs to ship ASAP... ...it calls the few local
companies it knows
...and it makes sure to charge handsomely for it
...only one of them has a truck available YE
S
Due to lack of liquidity, shipper pays an unfair price
lets cargoMarket characterization
The end result is a very sparse network......that uses old technology...thus increasing the cost of information
It is very expensive for both to increase their reach
The Carriers
Fragmented, atomized
Few with national span
Few resources for customer acquisition
Ad-hoc logistics
The Shippers
No means of obtaining good
information
Work with the few local carriers
they know and trust
No resources for optimizing their
logistics and transportation
procurement
lets cargoWhat if ?
We connect shippers and carriers together...allow them to do business
...and offer them many additional services?
lets cargo
Lower processing costs
Lower processing costs
Improve service
Reduce unused capacity
Increased
availabilityBidding
price reduction
Increase reach
Product offers
Carrier rankings
Ware housing
Domain expertise
Domain expertise
Route optimizati
on
International trade
A win-win proposition for both
lets cargoMarket sizeTotal trucking transportation market (for the industries we target) is about $45 billion.
Portion of the market served by small carriers ($13 billion)
A $30 billion potential target market for the region!
A conservative estimate of only 30% of the ROLA market
16,208 M$/ yr
17,719 M$/ yr
2,941 M$/ yr
1,371 M$/ yr
4,201 M$/ yr
BRAZIL
ARGENTINAROLA
MEXICO
CHILE
20,000 trucks
125,000 trucks
95,000 trucks
35,000 trucks50,000 trucks
4.2B
17.7B
2.9B
1.4B
16.2B
Lets take the amount spent on trucking...
...control for quality by filtering small carriers
...and assume only 30% of ROLA is a target
A 30+ billion target market
Without accounting for additional, high value-add services.
Logistics consulting, IT integration, insurance services, vertical transportation market, content fees, international trade
lets cargo
Land Sea Air
Telecarga
Euro
pe
SpainSpain
Eurotrans
U.S.A.U.S.A.
Nort
h A
meri
ca
NTE
IATNCarrierPoint
LoadMatch
Transplace
eFlatbed
FreightMatrix
Freightquote
CelarixeTransport
CargoNet
GoCargo
FreightMarket
Marex
RightFreight
MercoTrack
LogisatArgentinaArgentina
ChileChile
BrazilBrazil
MexicoMexico
Rodofretes WebTrans
Lati
n A
meri
ca NetLogistiK
LetsCargo
CompetitionCompany
Country
Market
Language
Partners
(Customers)
Site
TechnologyTransaction
CostsRepresentative Services Observations
RodoFretesBrazil
TrucksPortugues
e
Jabur(NA)
MS ASP
Free until 7/00. Then a 6-month fee for carriers
and shippers
Freight auctions; Route auctions; weather conditions; transit law;
gas stations; distance calculator; maps;news & events;monthly prizes
Many services not implemented.$500,000 initial investment. Jabur is a Brazilian tire retailer with stores in 40
cities
WebtransBrazil
TrucksPortugues
e
Unknown(NA)
Static;limited interactivity
Monthly fees $80
Website development, maintenance and hosting
Internet EDI application development, A/P, A/R automation, electronic Invoicing, Data entry applications, basic routing exchange
eCommerce System Integrator and Service Bureau rather than a
marketplace. Many services not implemented. Lots of banners.
MercoTrackChile
TrucksSpanish
E-Ventures; Loginsa Logistics
(NA)
MS ASP
Carriers: $30/mo (first
three mo. free)
Shippers: free
Access through phone Marketplace (post, review, select bids)Freeway conditions
Directory of companies, News & Events
Site w/dead links, ASP/DB errors, underdeveloped.
No contact address/phone. Include ads.
NetLogistiKMexico
TrucksSpanish
CarrierpointTUM
Carrierpoint’s Fee per shipment
Marketplace for long-distance transportation, chat
Very early stage, initial deployment in Mexico. Site not live (May’00)
LogisatArgentina
TrucksSpanish
None Known(NA)
Static HTML pages Unknown
Basic MarketplaceSatellite Control services and equipment
for sale
More satellite tracking services and equip. than a eMarketplace
CarrierPointAtlanta, GA
TrucksEnglish
TireDex, iXL, WorldCatch,
Chemicalbid, IronMax, ChemConnect,
BidMgr., MaterialNet, Randall Pub.
Java, JSP, Javascript XML,
CGI, DHTML, PERL, EJB,
JDBC, Oracle DB, Solaris
Fee per shipment
Marketplace, data warehouse, ERP/FMS and Tracking Systems Integration, Forums,
Ask the Experts, news, alerts, OLAP
First Round Nov. 99: $1.3 millionInvestors: iXL, CyberLab Ventures,
Simon & Sons, Deutche Bank.
NTEDowners Grove, IL
TrucksEnglish
mySAP.com, (500+ shippers,
carriers, and thru Manugistics)
Proprietary GUIinitial fee + cost of NTE
GUINews, events, marketplace, tracking
4th round Jan 00: $ 53 Millions (Hummer Winblad, AT&T, CrossPoint,, Divine interVentures, Fedex and Dell)
Other Relevant Truck marketplaces: FreightMatrix (from i2), Transplace, eFlatBed, FreightQuote, LoadMatch. Other players in Europe
Primitive web-site, under-funded, not pan-regionalNot a marketplace per-se, under-developed siteSite w/dead links, low-tech, early-stage
Very early stage
Primitive, not a marketplaceUS-based, difficult LatAm penetration by itselfUS-based, difficult LatAm penetration by itself
All these are very early stage, with
limited technology know-how. None has a substantial number of
transactions!
First-mover’s advantage possible!Especially because quality and technology
proficiency is much more important in B2B in order to gain customer trust
lets cargo
Experience together
LUIS JUAN
EDWIN MARTIN
DIEGO
MARTINHope Inc
Domain Expertise
Technology and Internet
Entrepreneurship
Management
Grad. Degrees
(business & comp.
science)
Why us ?
Management experience...Entrepreneurship experience...Technology and Internet experience...Domain expertise...US graduate degrees (business & computer science)Substantial prior experience working together...60+ years of professional experience51+ years of higher studies @ best schoolsProven track record, focused on excellencePublications, patent, multiple awardsMany natives of the regionEnglish, Spanish, Portuguese, German, …US-based high-tech experience
lets cargo
Miami
Barcelona
Buenos AiresSantiago
Sao Paulo
Mexico
Detroit
Oxford
Madrid
Frankfurt
Berlin
Zug (CH)
Milano
Bangalore
Barcelona
Miami
Strategic advantage
In B2B, domain expertise is key......you have to be recognized a global leader
...across specialties
...and have long-standing relationships
27 years of experience in logistics and transportatio
n
Freight and Post
Fashion
Pharmaceuticals and Cosmetics
Automotive
Spare Parts
Books and Media
Fast Moving Consumer Goods
Mail Order
, and industries
(some representative clients of only the Latin American region)
LetsCargo partners with the Miebach Logistics Group
Access to key customers
Access to key customers
Leading Logistics consultancy in Latin America
Leading consultancy in Latin America
Offices in the region
Offices in the region
Rapid ramp-up and site buildout
Immediate branding Unique
contentFocus on problem
Global presence
Global presence Deploy in Europe/Asia
Second-to-none domain and region expertise
Second-to-none domain and region expertise
Differentiator in content, new
offerings, extensionsProvide real value to
users of LetsCargo, not hype…
lets cargoSources of revenueLocal Transportation
2000 2001 2002 2003 2004 2005Market 30,571 32,100 33,705 35,390 37,159 39,017 Market share - 1,605$ 4,173$ 8,053$ 13,482$ 20,317$ Percent share 0% 5% 12% 23% 36% 52%I nterfacility Revenue -$ 1.48$ 9.60$ 37.04$ 62.02$ 93.46$ Distribution Revenue -$ 6.93$ 18.03$ 34.79$ 58.24$ 87.77$ Total Revenues -$ 8.41$ 27.62$ 71.83$ 120.26$ 181.23$
I nternational transportation2000 2001 2002 2003 2004 2005
Trips/ year 2,892,989 3,037,638 3,189,520 3,348,996 3,516,446 3,692,268Market share [trips/ year] - 151,882 394,893 762,046 1,275,815 1,922,671Percent share 0% 5% 12% 23% 36% 52%Fee/ average trip 11$ 11$ 11$ 11$ 11$ 11$ Revenues -$ 1.59$ 4.15$ 8.00$ 13.40$ 20.19$
First, within-country transportation......charge 1% for raw materials and interfacility...and 0.8% for distribution...5%, 12%, 23%, 36%, and 52% share yrs. 1-5...yield revenues of 8.4M (1st) and 72M (3rd)Then, inter-country transportation... ...charge 0.7% fee (about $11 per avg. Trip)...capture market share with same diffusion...3k, 10k, and 20k pallets (1st, 3rd, 5th yrs)Last, third-party warehousing... ...average rotation of 10 days assumed...2% fee on $8/month & $1.5/inout prices
Total revenues of $10M and $32M for years 2nd and 3rd
Third party warehousing2000 2001 2002 2003 2004 2005
Capacity [pallets] 2,500 7,500 50,000 100,000 150,000 200,000 Turn-over [days] 10 10 10 10 10 10 $/ pallet/ month 8.00$ 8.00$ 8.00$ 8.00$ 8.00$ 8.00$ $/ pallet (in+out) 1.50$ 1.50$ 1.50$ 1.50$ 1.50$ 1.50$ Fee [% ] 0.0% 0.5% 2.0% 2.0% 2.0% 2.0%Revenues -$ 0.01$ 0.15$ 0.30$ 0.45$ 0.60$
lets cargo
HQ in Miami...
Four phaseOperations Strategy
Reach: Establishing Pan-Regional PresenceDepth: Strengthening Client Relationships Scope: Expanding to Vertical MarketsLink: Integrating Into a Global eHub
DEPTH (2)Site to Production QualityLarge-scale Marketing and Branding Effort Grow Customer BaseDefine Vertical Strategy
(4) LINKIntegrate Geographically
Horizontal/Vertical IntegrationLink to 3rd Party Marketplaces
Build a Collaborative eHub
SCOPE (3)Breath of ServicesCritical Mass in Key MarketsLeverage Horizontal FootprintExpand to Vertical Markets (Alliances)
How? Operations Strategy
Miami
WHY MIAMI?Easy Access to Latin AmericaAccess to U.S. TalentLegal and Credibility BenefitsSilicon Beach Factor
Chile
Mexico
Brazil
Argentina
REACH (1)Customers AgreementsCountry Managers & Key StaffSite Development & DeploymentCustomers in Each Target Market
Asia
Asia
U.S.A.
Europe
lets cargoFinancial needs
0
10
20
30
40
50
60
70
1 2 3 4 5 6 7 8 9 10 11 12
Month
Headco
unt
Support
IT
Sales
Country managers + CFO
Founders
Miebach offices Own offices
HQ + ARG + BRACHI + MEX
HQ ARG BRA
CHIMEX
Milestones and Money
Office deployment
Concept 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th
InvestmentsIT hardware (computers+printers) 51.6 22.0 - - - - - 17.7 21.7 12.8 12.8 - IT software (licenses) 25.0 3.0 - 85.0 - - - - - - - - Office infrastructure - - - - - - - 18.0 21.7 12.0 12.0 -
Capital expenditures 76.6 25.0 - 85.0 - - - 35.7 43.4 24.8 24.8 -
CostsSales & Marketing 26.5 26.5 26.5 26.5 74.5 74.5 74.5 74.5 74.5 74.5 74.5 167.5 Management salaries (Founders + Cty. Managers) 63.5 79.5 79.5 79.5 79.5 87.8 87.8 87.8 87.8 87.8 87.8 87.8 Other employees 30.0 50.0 50.0 50.0 50.0 50.0 50.0 54.8 80.6 92.6 104.6 104.6 Mgmnt. And employees' benefits 14.0 19.4 19.4 19.4 19.4 20.7 20.7 21.4 25.3 27.1 28.9 28.9 IT (web hosting+auction engine fee+training) 16.0 7.0 7.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Office rent & expenses (incl. Communications) 4.0 4.0 4.0 4.0 4.0 4.0 4.0 10.4 18.8 22.5 26.7 26.7 Legal & Accounting 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5
Operating expenses 161.6 194.0 194.0 189.0 237.0 246.6 246.6 258.5 296.5 314.0 332.0 425.0
Extraordinary expenses 145.0 - - - - - - - - - - -
Sum 383.2 219.0 194.0 274.0 237.0 246.6 246.6 294.2 339.9 338.8 356.8 425.0 Cumulative sum 383.2 602.1 796.1 1,070.1 1,307.0 1,553.6 1,800.1 2,094.3 2,434.2 2,773.0 3,129.8 3,554.9
Months
Employees
Presence in HQ, MEX, ARG, BRA, and CHI. Site
with long-distance transportation –TLD-
(beta)
Site with TLD + distribution.
Contracts in all four countries
Site with TLD, distribution, and 3PL. In addition, own
offices in five key locations.Last, transactions in all
markets and brand awareness
$1M $750k $1.8M
lets cargoContact information If you are interested in
partnering with us as an investor, a technology partner, or a strategic ally, please contact:
Luis [email protected]
If you would like to join our engineering team, please contact:
Juan Gonzalez
If you would like to join our marketing team, please contact:
Edwin [email protected]
Thanks for your
time!