Reducing Freight Spend (And Generating Profit) Through Cooperation.

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]