1. No category

Landstar LTL Services
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LTL Organization
Jeffery Hurley
VP LTL Services
Katie Figueroa
Manager LTL
Logistics –Tech
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Pricing
Irene Pepple
LTL Analyst
Agent
Development
Anissa Cox
LTL Analyst
Sandy Hill
Pricing Analyst
Freight
Payment
Mission Statement
Be 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
LTL -$36B Market
Truckload
Less 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
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Current LTL Revenues
90
80
70
60
50
40
30
20
10
0
$81m
$72m
$45.7m
2013 YTD
2013 Budget
Annual Revenue
(Millions)
2012
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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
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LTL Pricing
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
Pricing Challenges
• Carriers diligently trying to
increase revenues
o Increase application of
accessorial charges
o Re-weigh 80% of shipments
handled
o 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
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Landstar LTL Systems
• Agent Access/Customer Access
• Shipper & consignee database
• Manage margin by customer and
shipment level
•
•
•
•
Choose best cost carrier
Compare transit times
Access multiple carrier rates
EDI status updates
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Optimization
Add to existing TL
Combine into TL w/Multi Stop
LTL Best price
Consolidate/Pool Distribution
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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
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Agency Assistance
LTL Services
• ltlbus@landstar.com
• General LTL product knowledge
• Carrier information
• Pricing requests
• Assist agent with resolving billing discrepancies
• Sales Tools/Presentations
LTL Services
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
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
160
$150 M in “15”
140
$150 m
120
$110 m
100
80
$72 m
$82 m
60
40
20
0
2012
2013
2014
2015
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Landstar LTL Services
Take all the freight!
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