Logistics & Procurement Services, LLCIntroduction
Presented By: Steven C. Hogan, PresidentLogistics & Procurement Services, LLC (d/b/a “LPS”)
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“Your Transportation & Logistics Experts” LPS2012SM
LPS Service Mission
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“Establish 10-30%+ operating cash savings through our
expertise in operations & procurement of logistics and
transportation services working as our Customer’s
Independent, Staff Experts in securing the best costs and
services.”
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We are a management service company that
provides procurement expertise, consulting, and
solutions to help our customers establish and
manage supplier contracts that deliver better
pricing, value and services.
Who we are:
LPS Strengths
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LogPro TM
Structured Spend Management Improvement Process
Proprietary Analysis / Simplification / Standardization
25+ Years Best Process / Practice Alignment To Customer Business
Rapid & Sustained Cost Reduction
LPS Customers
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Status Quo” Customer— Legacy services and costs with primary focus on daily operations and execution, limited internal expertise in transportation and logistics and poor internal information to recognize and implement improvements. Costs are generally rising and unknowingly absorbed or passed on.
“Routine” Customer—Services and costs are updated to a schedule more reactively based on service changes, price increases, or internal events effecting operations, locations, and customers. Internal expertise exists without work tools, planning, or depth of knowledge and leadership visibility to achieve more than cost containment.
“Challenged” Customer—Services and costs are updated with specific internal expertise however the resources are used in a more formalized project mentality causing trade‐off and completion challenges. Leadership visibility is good, cross‐functional strength is poor or specific expertise to address larger scale improvements in process, policies, organization, technologies, network, and services leaving significant cost and service improvements unrealized.
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Why We Exists:
Customer Gaps Transportation:
• Transportation expenses are #1, 2, or 3 of “Total Company Expense”
• 90% of company effort & resources are “Operational” (receive, ship, process)
• Data Analysis & Complexity are “ Beyond Limits ” of Internal Capabilities
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Why We Exist:
Customer Gaps Logistics Operations
• New Business Requirements or CapabilitiesNeeded
• Current Organization or Silos Limit Improvement Visibility & Change
• Logistics Options & Knowledge Is Outdated or Missing
Solution Areas:
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Service‐Providers
• Less Than Truckload• Truckload• Parcel• Rail• Intermodal• Forwarder / US Customs• Ocean • Air / Expedite• Rail
Service‐Providers – continued:
• Intermodal• USPS/Mail / Consolidation• Private Fleet & Dedicated• Courier• Expedite• Warehousing• Distribution• 3PL• Outsourcing• Transportation• Fulfillment / Warehousing
Logistics Operations & Administration
•TechnologiesTransportation MgtSupply Chain Visibility
•Freight Audit / Payment•Freight Terms•Shipping & Handling Revenue
•Consolidation; Pooling; X‐Dock
•Vendor Compliance•Routing Guides•Claims•Packaging
Our Approach
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LPS services include full resource and management of procurement and
operational improvements from selection, negotiation, and contracting
through implementation to strengthen our customers existing functions or
implement new solutions.
LPS Process View:
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1. Audit & Value Assessment
2. Service Agreement / Work Statement / Time Line
3. Resource & Service Implementation (s)
4. Completed Service Audit / Value Assessment Validation
5. Ongoing Value Assessment, Reporting, & Updates*
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Net Improvement Discussion View
11Year 1 Year 2 Year 3
Typical Customer 3‐6% Reduction or “Flat” (C)
3PL Management 4‐12% of “Spend $’s” (B+C)
C
A
B
LPS 10‐30% Cost Reduction• Fixed Service Cost• Customer Retained
80% Savings (A++)
Cash Savings
LPS Differentiators:
a) LogProTM – Standardization & Process Expertise
b) Concurrent Improvement / Time to Value 60‐90 Days
c) Collaboration & Customer Knowledge Increase
d) Analysis & Rationalization Aligned To Customer:a) Capabilitiesb) Modesc) Network
e) Results Focused ‐ Implementation
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LPS Customers Include:
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• Fortune 100 – 1000
• Manufacturing
• Retail
• Services
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Thank You !
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Contact Us:Steven C. HoganPresidentLogistics & Procurement Services, LLCP.O. Box 271Verona, KY 41092E‐mail: [email protected]: 859.630.6944Office: 859.485.6994