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Landstar LTL Services

Landstar LTL Services. LTL Organization. Logistics –Tech. Pricing. ---------. ------------. -----------------------. -------------------------. Freight Payment. Agent Development. Mission Statement.

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Landstar LTL Services

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  1. Landstar LTL Services

  2. LTL Organization Logistics –Tech Pricing --------- ------------ ----------------------- ------------------------- Freight Payment Agent Development

  3. 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.

  4. LTL Product Focus

  5. Market Overview • 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 LTL -$36B Market

  6. Current LTL Revenues

  7. 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 of2-3 percent yearly increase • Top 25 carriers decline in revenue • 4.5% in 2012 • vs. • 12.1% in 2011

  8. Key Competitors * 2012 revenues up 28%

  9. Industry Visibility • Customer face to face assistance • Trade show participation • Industry forums and seminars • Publications & case studies • Customer capabilities presentation

  10. LTL Product Focus

  11. Landstar Top LTL Partners Landstar contracts 22 of the top 25 LTL carriers

  12. 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

  13. LTL Product Focus

  14. 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

  15. Pricing Challenges • Carriers diligently trying to increase revenues • Increase application of accessorial charges • Re-weigh 80% of shipments handled • Control pricing based on freight characteristics / customer efficiencies • Carriers are becoming more selective on 3PL relationships

  16. 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

  17. LTL Product Focus

  18. Landstar LTL Systems • Choose best cost carrier • Compare transit times • Access multiple carrier rates • EDI status updates • Agent Access/Customer Access • Shipper & consignee database • Manage margin by customer and shipment level

  19. Optimization Add to existing TL LTL Best price Combine into TL w/Multi Stop Consolidate/Pool Distribution

  20. Customer Implementation • Formal on boarding process for new business • Requirements reviews and solution design for large customer projects • Implementation team for large projects

  21. LTL Product Focus

  22. Agency Assistance 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 LTL Services ltlbus@landstar.com General LTL product knowledge Carrier information Pricing requests Assist agent with resolving billing discrepancies Sales Tools/Presentations

  23. Training • Online and available anytime through elearn.landstar.com • Self paced • Average Completion Time = 1 hour

  24. Sales Initiatives • Sales profile form • Selling LTL Tutorial, elearn • PowerPoint Presentations

  25. LTL Communication • Regional meeting participation • Steering Committee • Product presentation via demo login & WebEx • Agency visits • Monthly Newsletter

  26. LTL Growth Forecast $150 M in “15”

  27. Landstar LTL Services Take all the freight!

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