Cooperating on Freight - Tim Higham Presentation

Report
Reducing Freight Spend
(And Generating Profit)
Through Cooperation
Interstate…The 3 Minute Overview
Trucking services. Temperature Asset based trucking
control, dry van, flatbed.
Started May 2011
Acknowledged leading US
provider of distribution and
Terminal in Lakeland, FL
logistics services to the
horticulture and food industries 100% Temp controlled
Fastest growing logistics
company in Florida and 17th
fastest in United States (Inc.
Magazine – 2009 / 2010)
Produce chutes
Satellite Tracking
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
A Quick Timeline
Interstate Transport secures
Home Depot
Interstate Transport, Inc.
Formed
2002
St Pete Corporate
Office Opened
2003
InMotion TMS v1
Implemented
2004
St Pete Corporate
Office Expanded
Interstate Transport
1st Food Customer
InMotion Global, Inc.
Formed
2005
InMotion TMS v2
Implemented
2006
Interstate Logistics
Group, Inc Formed
IMG Awarded
FDEM Contract
2007
InMotion TMS v3
Implemented
Interstate Transport
1st Customer
Interstate Plant & Tree
2008
3 new offces &
Interstate Dedicated
opened
2009
2010
Palm Beach Capital
Aquires Stake
2012
InMotion TMS v4
Launched
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
2012 Top100 Logistics IT Company
– Inbound Logistics magazine
2011 Top100 Logistics IT Company
– Inbound Logistics magazine
2010 Top100 Logistics IT Company
– Inbound Logistics magazine
2009 Top100 Logistics IT Company
– Inbound Logistics magazine
Recent Awards & Recognition
2010 FL INNOVATOR Award
– Food Logistics magazine
2010 FL100 Award
– Food Logistics magazine
2009 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
[Common carriers only]
$30.6 Billion
[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.
2.
3.
4.
Low Freight Costs
Predictable / Stable Freight Costs
On-time drivers & carriers
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.
A Cooperative Brokerage:
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
Setting Up 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
Resources
• All about Interstate at www.InterstateLG.com
• Need a TMS? www.TheFreeTMS.com
• Questions? Contact Tim Higham at:
– Email: [email protected]

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