Post on 24-Feb-2016
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Landstar LTL Services
LTL OrganizationJeffery Hurley VP LTL Services
Katie FigueroaManager LTL
Irene PeppleLTL Analyst
Anissa CoxLTL Analyst
Sandy HillPricing Analyst
Pricing
Freight Payment
Logistics –Tech
Agent Development
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Mission StatementBe the most admired provider of 3PL LTL services in the industry. Be important to the LTL carrier base by utilizing their strengths in service and pricing to exceed Landstar agent & customer transportation requirements. Enable the Landstar agents with a superior LTL service supported by an efficient process, exceptional technology offering and strong carrier support.
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LTL Product Focus
Industry Visibility
LTL Carrier Partners
Rates & Pricing
Product Capability
Training
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Market Overview
TruckloadLess than truckload
• National carriers - $12B• Regional carriers – $24B• Top 20 regional carriers account
for 50% of regional market• Top 5 national carriers account
for 56% of the national market• 3PL manage about 15% of LTL
market
LTL -$36B Market
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Current LTL Revenues
Annual Revenue (Mil-lions)
020406080
100
2012
2013 Budget
2013 YTD
$72m$81m $45.7m
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Market Overview• Margin levels barely
covering carriers cost of capital
• Carriers becoming more focused on increasing yields • LTL volumes forecasted to
increase 1-3 percent with avg of 2-3 percent yearly increase
• Top 25 carriers decline in revenue
4.5% in 2012 vs. 12.1% in 2011
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Key Competitors
* 2012 revenues up 28%
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Industry Visibility
• Customer face to face assistance
• Trade show participation• Industry forums and
seminars• Publications & case studies • Customer capabilities
presentation
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LTL Product Focus
Industry Visibility
LTL Carrier Partners
Rates & Pricing
Product Capability
Training
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Landstar Top LTL Partners
Landstar contracts 22 of the top 25 LTL carriers
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Carrier Partners• Increase base of carrier
partners • Establish performance
criteria scorecard• “C” level relationships• Leverage carriers who are
customers• Utilize strategic strengths of
carrier base• Carrier recognition and
annual conference
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LTL Product Focus
Industry Visibility
LTL Carrier Partners
Rates & Pricing
Product Capability
Training
Customer/Account Specific Pricing• Tailored to customer needs and typically more
aggressively priced due to reduced “unknowns”
• Spend > $10,000 monthly
• Letter of Authorization required
• Shipment Data and Freight Characteristics
Landstar “Blanket” Pricing • Typically for the smaller accounts
• Available to any agent/customer
• Spend < $10,000 monthly
• Segway to customer Specific Pricing
• Benefit from the purchasing power of the 3PL
LTL Pricing
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Pricing Challenges
• Carriers diligently trying to increase revenueso Increase application of
accessorial chargeso Re-weigh 80% of shipments
handledo Control pricing based on
freight characteristics / customer efficiencies
• Carriers are becoming more selective on 3PL relationships
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Rates & Pricing
• Accelerate account based pricing• Refresh blanket rates• Volume & Expedited pricing• Offshore and Canada
• Pallet & unit pricing• Review minimum margin charges
where applicable• Optimize carrier spot buy
availability in Banyan
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LTL Product Focus
Industry Visibility
LTL Carrier Partners
Rates & Pricing
Product Capability
Training
Landstar LTL Systems• Agent Access/Customer Access• Shipper & consignee database• Manage margin by customer and
shipment level
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• Choose best cost carrier• Compare transit times• Access multiple carrier rates• EDI status updates
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OptimizationLTL Best price
Combine into TL w/Multi Stop Consolidate/Pool Distribution
Add to existing TL
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Customer Implementation
• Formal on boarding process for new business
• Requirements reviews and solution design for large customer projects
• Implementation team for large projects
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LTL Product Focus
Industry Visibility
LTL Carrier Partners
Rates & Pricing
Product Capability
Training
Agency AssistanceLTL Services• ltlbus@landstar.com• General LTL product knowledge• Carrier information • Pricing requests • Assist agent with resolving billing discrepancies• Sales Tools/Presentations
Agent Development• agentdevelopment@landstar.com
• Establish Log In credentials for Banyan and SMC³
• Offers individual systems training in Banyan and Orbit
• Provides ongoing technical support for Banyan and
Orbit
LTL Services
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Training
• Online and available anytime through elearn.landstar.com
• Self paced• Average Completion Time = 1
hour
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Sales Initiatives
• Sales profile form• Selling LTL Tutorial, elearn• PowerPoint Presentations
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LTL Communication
• Regional meeting participation
• Steering Committee• Product presentation via
demo login & WebEx• Agency visits• Monthly Newsletter
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LTL Growth Forecast
0
50
100
150
2012 2013 2014 2015
$72 m $82 m$110 m
$150 m
$150 M in “15”
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Landstar LTL Services
Take all the freight!