Evolved Transportation Management Echo Global Logistics
Agenda
Current Program and Goals
Overview
Echo Value Proposition
Technology
Next Steps
3
Echo Overview
3
Founded 2005
Employees 950
Publicly Traded (10-2-09) NASDAQ (Ticker Symbol: ECHO)
Headquarters HQ in Chicago
Acquisitions in MN, WI, CA, OR, UT, IL
Branches in Atlanta , Detroit, & Dallas
Customer Base 16,000+ Customers
Board Members Sam Skinner Former Secretary of Transportation for United States
John Walter Former COO AT&T
Doug Waggoner, CEO former SVP of YRC
4
Echo Overview
• End 2009: $260MM Revenue
• 3 Year CAGR 98%
• 1 Billion by 2014
• Business Mix (Revenue)
• 45% Enterprise
• 55% Transactional
• > 22,000 carriers in network, with over 4,400 active
• 100 LTL Carriers – National, Regional & Local
REVENUE CLIENTS ACTIVE CARRIERS
Top 100 3PL – Inbound Logistics Magazine (2007, 2008, 2009)
Top 50 3PL – Food Logistics Magazine (2008, 2009)
Top 100 3PL – Inbound Logistics Magazine (2007, 2008, 2009)
Top 50 3PL – Food Logistics Magazine (2008, 2009)
5
Attractive Competitive Position
Buying Power
Proprietary Technology
Unbiased Solution
Dedicated Service Teams
Customized Solutions
Small Broker
(thousands)Large 3PLs
Asset-Based Carriers
(FedEx, UPS, YRC, JB Hunt, Con-Way)
6
Echo Customer Value Proposition
Dedicated and experienced professionals to meet everyclient need
Procures transportation on behalf of more than 16,000+clients
Control $500MM worth of transportation spend
$55 Million TMS system
A suite of robust state-of-the-art web-based applications
Central, visible, scalable and customized global solution
Superior client interfacing technology
Buying Power
Technology
Service
Technology Demonstration
Echo technology demonstration
Technology Company 1 Company 2 Echo
Data repository
Track & trace visibility
Electronic integration of vendors
Electronic invoice accessibility
Centralize data & control
Report tools suite
Integrated across all platforms
On-site assessment
Dedicated account support
Customization
Subscription fee
Integration cost
Total
*Assuming 27,000 transactions
$7 fee per transaction $500,000 No Cost
n / a $200,000 No Cost
$190,000* $700,000 No Cost
Technology Value – TMS Costs
Annual Spend$5 Million LTL $3 Million Small Parcel$1 Million Int’l Air, Ocean $5 Million Canada$3 Million Truckload
Large international manufacturer of water filtration equipment. Over $718 million in annual revenue, publicly traded with over 850 North American dealers and locations in Canada and Mexico.
To create an international program to integrate over 1,000 dealers, 150 vendors and 3 North American manufacturing and distribution facilities.
Overview
Challenge
Case Study: Culligan
Projected 3-Year SavingsService Before Echo With Echo Savings
LTL Shipments $51,000,000 $48,450,000 $2,550,000
Results: Culligan
Built a 4-person account team to support the client from Chicago Headquarters
Integration of the entire company on Echo's Enterprise platform in 8-12 weeks
Committed savings of 5% of annual transportation spend, estimated at $850,000
Transitioned dealers from collect shipments to a Pre-Pay
Automatic freight bill pay and audit
Echo Solution
Annual SpendBang Printing is a leading print manufacturer for short to mid-run books located in Brainerd, Minnesota. They recently acquired a printing company based out of Valencia, CA. They also offer many different types of bindery for all products. Bang and Echo started their partnership in May 2009.
Be able to find a carrier mix able to make daily pick ups at their very remote location two hours north of Minneapolis, Minnesota. Also need to show the ability to negotiate competitive pricing for partial shipments – near 50% of their LTL shipments are heavier than 5,000 lbs
Overview
Challenge
$500,000 - LTL
Case Study: Bang Printing
Case Study: Bang Printing
Provide 5% savings off of their previous negotiated tariffs for LTL
Provided customer specific pricing with 2 main carriers in their area who could handle daily pickups from their remote area
Provided technology to help streamline and give visibility in regards to shipping
Provided reports for analyzing freight spend
Echo Solution
Projected 3-Year SavingsService Before Echo With Echo Savings
LTL Shipments $1,500,000 $1,425,000 $75,000
Annual Spend Manufacturer of sealants and gaskets with main office in Detroit with Warehouses in VA and FL.
Currently dealing with carriers directly and unable to negotiate any better rates due to limited buying power. Also lots of time and effort going into AP issues.
Overview
Challenge
$1,500,000 TL$100,000 LTL
Case Study: Wolverine
Provided 5.65% savings on TL with 10% mark up on new lanesMatched current LTL pricingIntegrated all modes through one centralized system
Free Freight Bill and Audit for Soft Cost Savings Reporting tools offering more in depth company analysis
Provided 5.65% savings on TL with 10% mark up on new lanesMatched current LTL pricingIntegrated all modes through one centralized system
Free Freight Bill and Audit for Soft Cost Savings Reporting tools offering more in depth company analysis
Case Study: Wolverine Advanced MaterialsEcho Solution
Projected 3-Year SavingsService Before Echo With Echo Savings
LTL Shipments $4,800,000 $4,400,000 $400,000
Summary
4 -12 Week Process
ASSESSMENT OF CURRENT
TRANPORTSTION REQUIREMENTS
ASSESSMENT OF CURRENT
TRANPORTSTION REQUIREMENTS
PROVIDESOLUTION
DESIGN
PROVIDESOLUTION
DESIGN
CERTIFY CARRIERS IN ECHO
NETWORK
CERTIFY CARRIERS IN ECHO
NETWORK
CREATESROUTING GUIDE
TL, LTL,SMALL PARCEL
CREATESROUTING GUIDE
TL, LTL,SMALL PARCEL
DEDICATED TEAM
ESTABLISHED
DEDICATED TEAM
ESTABLISHED
ECHO ETM TM AND
ECHOTRACK TM
TRAINING
ECHO ETM TM AND
ECHOTRACK TM
TRAINING
SEE SAVINGSIN YOUR
BOTTOM LINE
SEE SAVINGSIN YOUR
BOTTOM LINE
AssessmentAssessment ImplementationImplementation
Lock in a long-term transportation solution that will evolve with your needs and see significant savings.
Achieve ultimate shipment optimization through dedicated, focused expertise in transportation operations.
Gain visibility into all modes and vendors.
Align your logistics operation with industry best practices in procurement and administration to achieve increased profitability.
Create single-source accountability for cost savings, data transparency, transaction visibility, and customized reporting.
OUR ENTERPRISE ACCOUNT PROGRAM IS A GREAT WAY TO:OUR ENTERPRISE ACCOUNT PROGRAM IS A GREAT WAY TO:
Q & A