reducing freight spend (and generating profit) through cooperation
TRANSCRIPT
Reducing Freight Spend (And Generating Profit) Through Cooperation
Interstate…The 3 Minute Overview
Trucking services. Temperature control, dry van, flatbed.
Acknowledged leading US provider of distribution and logistics services to the horticulture and food industries
Fastest growing logistics company in Florida and 17th fastest in United States (Inc. Magazine – 2009 / 2010)
On-Demand Transportation Management System (TMS)
Freight optimization, distribution, and consulting services with proven results
Award winning “Top 100 Logistics IT Provider” (Inbound Logistics Magazine -2009)
Patents pending
Asset based trucking
Started May 2011
Terminal in Lakeland, FL
100% Temp controlled
Produce chutes
Satellite Tracking
20122005 2006 2007 2008 2009 20102002 2003 2004
St Pete Corporate Office Opened
A Quick Timeline
InMotion Global, Inc. Formed
IMG AwardedFDEM Contract
Interstate Logistics Group, Inc Formed
InMotion TMS v4 Launched
Palm Beach Capital Aquires Stake
InMotion TMS v3 Implemented
InMotion TMS v1 Implemented
InMotion TMS v2 Implemented
Interstate Transport, Inc. Formed
3 new offces & Interstate Dedicated
opened St Pete Corporate Office Expanded
Interstate Transport 1st Food Customer
Interstate Transport 1st Customer Interstate
Plant & Tree
Interstate Transport secures Home Depot
Growth Plan Developed
2014 Objectives> Work with more companies or groups to reduce their freight costs
> Continue growing InMotion Global (TheFreeTMS.com) - the world’s first 100% free truckload TMS
Customers
Recent Awards & Recognition
2009 Top100 Logistics IT Company – Inbound Logistics magazine
2010 Top100 Logistics IT Company – Inbound Logistics magazine
2011 Top100 Logistics IT Company – Inbound Logistics magazine
2012 Top100 Logistics IT Company – Inbound Logistics magazine
Recent Awards & Recognition
2009 FL100 Award – Food Logistics magazine
2010 FL INNOVATOR Award – Food Logistics magazine
2010 FL100 Award – Food Logistics magazine
Recent Awards & Recognition
2009 & 2010 Fastest Growing Logistics Company in Florida, #17 in U.S. – Inc. magazine
2011 Best Places to Work Award – Tampa Bay Business Journal magazine
We are not your typical truck broker / 3PL!
How big is the truckload market?
Truckload LTL
Revenue
$98 Billion $30.6 Billion
[Common carriers only] [Regional / National]
How big is the truckload market?
Truckload LTL
Companies
512,180 40 (?)
Why so many more TL carriers?
Many factors move rates up or down
What is a tight or loose market?
• Tight = lots of loads chasing a few trucks. Rates rise.• Loose = lots of trucks chasing a few loads. Rates fall.
What is a tight or loose market?
• Same load. Same Miles. Different Rate (even in normal conditions)
Rate Changes and “taking the pain”
And are expected to rise in the future
What do truckload shippers look like?
• Interesting Trend – Shippers seek outsourcing help:
What do truckload shippers look like?
• But – shippers want TECH capable 3PL’s….
What do truckload shippers look like?
• As a result 3PL’s are growing IF they offer the right services
Every Shipper Wants:
1. Low Freight Costs
2. Predictable / Stable Freight Costs
3. On-time drivers & carriers
4. Low Claims and Low OS&D
How do you achieve these?• You can’t • But, you CAN get much better results, from
BETTER CONTROL
Creative Solutions Used:
1. Your own trucking company.– Pros: Access to trucks– Cons: Expensive. Management Nightmare. Liability
2. Your own brokerage / 3PL.– Pros: Access to trucks. Profits on backhauls.– Cons: Diversion from your core. Needs cash for AP.
3. A cooperative brokerage / 3PL entity.– Pros: Share trucks. Share Profits. Limit Liability.– Cons: Need cash for AP. Need staff. Need trust.
4 Major Advantages of Sharing a brokerage
1. You share trucks through load optimization – meaning lower direct freight spend and easier access to trucks
– More volume = lower costs
2. Lower freight costs for your loads pays for your portion of the brokerage operations
3. You share the brokerage profits from loads completed for other customers / vendors
4. Liability is moved from your core business to the brokerage entity
A Cooperative Brokerage:
• Choose your equity partners– Similar Freight– Equality In Decision Making– Equal financial contribution
• Obtain Licensing / Incorporation• Assign a manager and staff• Choose Your TMS technology (the HEART of the
brokerage operation)• Line up other shippers for backhauls (vendors, similar
companies)• Start moving ALL your loads through your new brokerage
(resulting in lower freight costs)• Move loads for others and collect the profits to share
Setting Up A Cooperative Brokerage:
Resources
• All about Interstate at www.InterstateLG.com • Need a TMS? www.TheFreeTMS.com
• Questions? Contact Tim Higham at: – Email: [email protected]