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NLM Analysis. Part I Logistic Business Transportation, Process to manufactures
& 3 keys Shipper needs to ship product or goods by ...
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Submitted by pretty.pure on August 3, 2005
Category: Business
Words: 2664 | Pages: 11
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Part I
Logistic Business
Transportation, Process to manufactures & 3 keys
Shipper needs to ship product or goods by using Carrier to Receiver
3rd Party Logistics Provider / Service
Shipper Receiver
Type of 3PLs
Asset-Based Non-Asset-Based
Revenue 100% 100%
COGS 80 85% 70 - 74%
Gross Profit Margin 15 20% 26 30%
Asset-Based: Owned its own fleet of transportation vehicles i.e. truck, airplanes, railroads and ocean freighters
Non-Asset-Based: without any of their own physical assets.
Freight Transportation
Multiple shipments: air, water, truck, and rail
· Truck segment: Ryder, Penske, and Emery Freight to small owner-operated trucking firm
· In competition: smaller firms developed specialty service or served niche markets
· Large firms expanded into multiple modes of transport and provide service across a wide range
· All shipper demanded Goals be transported safety& timely fashion
· Price importance all companies (especially large, automakers) want to reduce cost of delivery to customer
· Big 3 automaker (Ford, GM, Daimler Chrysler) looking to better management of supply chain (the series of transaction & interaction between suppliers, buyers, and intermediaries) to minimize costs while improving quality
· All parties manufacturers, 3PLs, suppliers could participate in EDI (electronic data interchange)
NLM Overview
National Logistics Management is the only North American Third Party Logistics provider to specialize solely in premium freight for manufacturing industries, including automotive manufacturers. It is non-asset based and has a unique business model that employs its proprietary software to utilize the Internet to determine...
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