Why Warehousing ? Allows us to respond to Customers Evolving Supply Chain Demands, creating further supply chain integration. Greater overall Value!! Customers expect service providers to be able to respond with more services than ever before. Over 50% of year over year gross revenue growth in 3PLs comes from providing existing customers with new services (organic growth). Broader services offered = longer and more profitable customer relationships. Industry-wide, every $1 generated in warehousing revenue directly generates $7 to $9 in transportation revenue. The largest 3PL providers offer all or most of these services If we dont give it to them, theyll get it somewhere else!
Warehouse Capacity Owner (WCO) Network 38 WCOs 97 Facilities 33,000,000 Sq. Ft. Experience Average 53 Years All Major Industries Dedicated & Shared Facilities Major Markets Built to follow Landstars non-asset business model
Warehouse pricing is about LABOR & SPACE o How much labor will it take to handle o How much space will the product take up The more information we get, the more aggressive we can be on pricing Engage the customer in the scope gathering Avoid Scope Creep potential Pricing time frame….versus trucking Warehouse Dept. can assist with the scope gathering Present a solution not just a price Pricing Warehouse Services
Mid-Large Companies: $100M - $5B+ Multiple Region / Multiple Facility Needs Customers Whose Warehousing Needs Change as Their Business Expands / Contracts Regionally Customers Who Want to Focus on Their Core Business and Leave Their Supply Chain Management to The Experts Target Customers / Characteristics
Warehousing is renting space Landstars WCOs can handle every opportunity Pricing will be the same nationwide Warehouse Department has rack prices on demand Customer is just going to give agent the business once pricing is given. Agent has to operate and invoice business Common WHSE Misconceptions Presentations are customarily updated on a bi-annual basis (information is subject to change).