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Reducing Freight Spend (And Generating Profit) Through Cooperation.

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Presentation on theme: "Reducing Freight Spend (And Generating Profit) Through Cooperation."— Presentation transcript:

1 Reducing Freight Spend (And Generating Profit) Through Cooperation

2 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 17 th 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

3 2012 2005200620072008200920102002 20032004 St Pete Corporate Office Opened A Quick Timeline InMotion Global, Inc. Formed IMG Awarded FDEM 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 1 st Food Customer Interstate Transport 1 st 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

4 Customers

5 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

6 Recent Awards & Recognition 2009 FL100 Award – Food Logistics magazine 2010 FL INNOVATOR Award – Food Logistics magazine 2010 FL100 Award – Food Logistics magazine

7 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

8 We are not your typical truck broker / 3PL!

9 How big is the truckload market? TruckloadLTL Revenue $98 Billion $30.6 Billion [Common carriers only][Regional / National]

10 How big is the truckload market? TruckloadLTL Companies 512,18040 (?) Why so many more TL carriers?

11 Many factors move rates up or down

12 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.

13 What is a tight or loose market? Same load. Same Miles. Different Rate (even in normal conditions)

14 Rate Changes and “taking the pain”

15 And are expected to rise in the future

16 What do truckload shippers look like? Interesting Trend – Shippers seek outsourcing help:

17 What do truckload shippers look like? But – shippers want TECH capable 3PL’s….

18 What do truckload shippers look like? As a result 3PL’s are growing IF they offer the right services

19 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

20 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.

21 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:

22 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:

23 Resources All about Interstate at www.InterstateLG.comwww.InterstateLG.com Need a TMS? www.TheFreeTMS.comwww.TheFreeTMS.com Questions? Contact Tim Higham at: –Email: THigham@InterstateLG.com


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