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Reducing Freight Spend ( And Generating Profit ) Through Cooperation

Reducing Freight Spend ( And Generating Profit ) Through Cooperation . Interstate… The 3 Minute Overview. Asset based trucking Started May 2011 Terminal in Lakeland, FL 100% Temp controlled Produce chutes Satellite Tracking. On-Demand Transportation Management System (TMS)

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Reducing Freight Spend ( And Generating Profit ) Through Cooperation

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  1. Reducing Freight Spend (And Generating Profit) Through Cooperation

  2. Interstate…The 3 Minute Overview Asset based trucking Started May 2011 Terminal in Lakeland, FL 100% Temp controlled Produce chutes Satellite Tracking On-Demand Transportation Management System (TMS) Freight optimization, distribution, and consulting services with proven results Award winning “Top 100 Logistics IT Provider” (Inbound Logistics Magazine -2009) Patents pending Trucking services. Temperature control, dry van, flatbed. Acknowledged leading US provider of distribution and logistics services to the horticulture and food industries Fastest growing logistics company in Florida and 17th fastest in United States (Inc. Magazine – 2009 / 2010)

  3. A Quick Timeline 3 new offces & Interstate Dedicated opened Interstate Transport secures Home Depot St Pete Corporate Office Expanded Interstate Transport 1st Food Customer Interstate Transport, Inc. Formed St Pete Corporate Office Opened InMotion Global, Inc. Formed Interstate Logistics Group, Inc Formed IMG Awarded FDEM Contract 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 2014 Objectives InMotion TMS v1 Implemented InMotion TMS v2 Implemented InMotion TMS v3 Implemented Palm Beach Capital Aquires Stake InMotion TMS v4 Launched Interstate Transport 1st Customer Interstate Plant & Tree Growth Plan Developed • > Work with more companies or groups to reduce their freight costs • > Continue growing InMotion Global (TheFreeTMS.com) - the world’s first 100% free truckload TMS

  4. Customers

  5. Recent Awards & Recognition 2012 Top100 Logistics IT Company – Inbound Logistics magazine 2011 Top100 Logistics IT Company – Inbound Logistics magazine 2010 Top100 Logistics IT Company – Inbound Logistics magazine 2009 Top100 Logistics IT Company – Inbound Logistics magazine

  6. Recent Awards & Recognition 2010 FL INNOVATOR Award – Food Logistics magazine 2010 FL100 Award – Food Logistics magazine 2009 FL100 Award – Food Logistics magazine

  7. Recent Awards & Recognition 2009 & 2010 Fastest Growing Logistics Company in Florida,#17 in U.S. – Inc. magazine 2011 Best Places to Work Award – Tampa Bay Business Journal magazine

  8. We are not your typical truck broker / 3PL!

  9. How big is the truckload market? Truckload LTL Revenue $98 Billion$30.6 Billion [Common carriers only] [Regional / National]

  10. How big is the truckload market? Truckload LTL Companies 512,180 40 (?) Why so many more TL carriers?

  11. Many factors move rates up or down

  12. What is a tight or loose market? • Tight = lots of loads chasing a few trucks. Rates rise. • Loose = lots of trucks chasing a few loads. Rates fall.

  13. What is a tight or loose market? • Same load. Same Miles. Different Rate (even in normal conditions)

  14. Rate Changes and “taking the pain”

  15. And are expected to rise in the future

  16. What do truckload shippers look like? • Interesting Trend – Shippers seek outsourcing help:

  17. What do truckload shippers look like? • But – shippers want TECH capable 3PL’s….

  18. What do truckload shippers look like? • As a result 3PL’s are growing IF they offer the right services

  19. Every Shipper Wants: • Low Freight Costs • Predictable / Stable Freight Costs • On-time drivers & carriers • Low Claims and Low OS&D How do you achieve these? • You can’t • But, you CAN get much better results, from BETTER CONTROL

  20. Creative Solutions Used: • Your own trucking company. • Pros: Access to trucks • Cons: Expensive. Management Nightmare. Liability • Your own brokerage / 3PL. • Pros: Access to trucks. Profits on backhauls. • Cons: Diversion from your core. Needs cash for AP. • A cooperative brokerage / 3PL entity. • Pros: Share trucks. Share Profits. Limit Liability. • Cons: Need cash for AP. Need staff. Need trust.

  21. A Cooperative Brokerage: 4 Major Advantages of Sharing a brokerage • You share trucks through load optimization – meaning lower direct freight spend and easier access to trucks • More volume = lower costs • Lower freight costs for your loads pays for your portion of the brokerage operations • You share the brokerage profits from loads completed for other customers / vendors • Liability is moved from your core business to the brokerage entity

  22. Setting Up A Cooperative Brokerage: • Choose your equity partners • Similar Freight • Equality In Decision Making • Equal financial contribution • Obtain Licensing / Incorporation • Assign a manager and staff • Choose Your TMS technology (the HEART of the brokerage operation) • Line up other shippers for backhauls (vendors, similar companies) • Start moving ALL your loads through your new brokerage (resulting in lower freight costs) • Move loads for others and collect the profits to share

  23. Resources • All about Interstate at www.InterstateLG.com • Need a TMS? www.TheFreeTMS.com • Questions? Contact Tim Higham at: • Email: THigham@InterstateLG.com

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