Logistics.com

Logistics.com applied the software that helped the merger of the shippers, carriers, and the supply chain to efficiently work well together.

Yossi Sheffi a Professor at MTI. He is an expert in systems optimization, risk analysis and supply chain management

Introduction

Logistics.com

A software to organize shippers and carrier in the SCM.

Logistics.com

How much Revenue does the trucking industry produce?Total revenue estimates are 255.5 billion. For Hire or Common Carriers Trucking companies generated revenue estimated at 97.9 billion. More than air transportation by 18 billion. Private Fleets generated revenue estimated at 121 billion

How big is the trucking industry?The trucking companies, warehouses and private sector in the U.S. employs an estimated over 9 million Americans within the industry. Of this figure UPS employs 60,000 workers

How many trucks operate in the U.S.? Estimates of 15.5 million trucks operate in the U.S.. Of this figure 1.9 million are tractor trailers.

How many truckers are there?It is an estimated over 3.3 million truck drivers in the U.S.  Of that one in ten are independent, a majority of which are owner operators. Canada has in excess of 250,000 truck drivers.

How many trucking companies are there in the U.S.?Estimates of over 360,000 companies in the U.S. Of that figure 96% operate 28 or fewer while 82% operate 6 or fewer trucks.

Logistics.com

Company overview

•Logistics.com provides both service and software products designed for the Logistics and Transportation Industry.•It enables companies of both Shippers and Transportation to match their services to optimize efficiency for companies supply chain.

History•Logistics.com started as Princeton Transportation Consulting Group in 1987.•Established itself as a leader in the Trucking Industry Market by finding new logistic solutions for shippers.•Sold the company to Sabre Group and after ten years Sheffi felt it was not prospering.•In 2000 Sheffi with the help of Internet Capital Group bought the company back.

Logistics.com

Three product lines:

OptiManage•Helps shipper manage their day to day transportation task. •It takes the myriad of orders into actual load for specific consignees.

OptiBid •This helps shippers see why carriers bid the way they do and help carriers be more efficient by seeing their lanes.•This helps carriers to prepare better bids for contract by looking at their own shipping lanes and create new one by bidding on other contract for more efficient lanes

OptiYield •Carrier orientated with overall goal of providing decision support•Provides real time fuel prices, including contract prices for the particular carrier•Advise drivers which states to fuel for taxes purposes.

Logistics.com

Strategy

• Target Markets• In bound and Out bound of the Supply Chain• All freight transportation (air, land, and sea)• Global Markets• Logistics Companies• Freight brokers• Management in both shipping and transportation.

Logistics.com

IssuesMoving products the

most efficiently possible way.

Providing shipping companies a

inexpensive way to ship their productProviding trucking

companies the upper edge to bid for loads

and be profitable.To help both industries

be winners.

Logistics.com

Strengths< >Opportunity

•$1 Trillion industry, larger than health care and defense.•Understanding the needs of the supply chain•Top software engineers•Understand the usefulness of the internet for matching the shipping and transportation industry.•Software would offer an unbiased information to the businesses that provide solutions to the supply chain.•Brings efficiently to an industry already operating with little room to become more efficient because of high cost to operate.

Logistics.com

Weakness <>Threats

•Shipping industry reluctant to use the software. •Big corporation unwilling to give up mission critical information pass their firewall.•Pressure created by the possibilities that the software providers will go out of business.•Expense of software compared to cheaper more simpler networking offered by Descartes.•Truck companies like Schneider developing networks to organizing logistics of the supply chain applying Extranet between companies.•Industry moved away from spot market to contract market.

Logistics.com

Logistics.com

Schneider FedEx UPS Descartes Manhattan Associates