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Confidential | © 2016 Chainalytics Inc.
TODAY’S SPEAKERS
2
Andrew Koval
Manager, Truckload Services
Chris Ricciardi
Co-founder and Chief Product Officer
Matt Harding
Vice President, FMIC
Confidential | © 2016 Chainalytics Inc.
AGENDA
3
The Current State of Pricing
Benefits of Rating Tools
LoadDex Insights
Market Rate and Capacity Update
Freight Market Intelligence Introduction
Pricing Problems
How CHAINalytics and LoadDex helped provide solutions
Confidential | © 2016 Chainalytics Inc.
AGENDA
4
The Current State of Pricing
Benefits of Rating Tools
LoadDex Insights
Market Rate and Capacity Update
Freight Market Intelligence Introduction
Pricing Problems
How CHAINalytics and LoadDex helped provide solutions
Confidential | © 2016 Chainalytics Inc.
WHO IS CHAINALYTICS?
5
11 YEARS
GREAT SUPPLY CHAIN PARTNER SupplyChainBrain
18 TOP 25
supply chains of Gartner’s
8 RETAIL TOP 10
7 FOOD & BEVERAGE TOP 10
6 CPG TOP 10
91 of the
FORTUNE 500
TOP SUPPLY CHAIN SCHOOL
67 %
WITH DEGREE FROM consultants
of
* 27 BILLION
$
FMIC
FREIGHT SPEND CAPTURED IN
25 %
CAGR since 2009
COOL VENDOR in supply chain services
Gartner 2013 13 PROS
Supply & Demand Chain Executive
TO KNOW
AMSTERDAM ATLANTA BANGALORE MILAN MINNEAPOLIS HELSINKI SINGAPORE STOCKHOLM SYDNEY 9 offices
GLOBAL
Confidential | © 2016 Chainalytics Inc.
OUR COMPE TENCIES
6
Supply Chain Design
Integrated Demand & Supply
Planning
Sourcing & Supplier
Management
Packaging Optimization
Supply Chain Operations
Transportation Service Supply Chain
Applying fact-based transformation approaches using top supply chain talent.
Confidential | © 2016 Chainalytics Inc.
SPOT POLL
What is your current expectation for dry van carrier capacity?
Easily Available
Somewhat Available
In Balance
Somewhat Tight
Very Tight
CHAINalytics powered by
7
Confidential | © 2016 Chainalytics Inc.
THE QUALITATIVE: WHAT PEOPLE THINK CHAINALYTICS: QUARTERLY RATE AND CAPACITY SURVEYS
8
PERCENT OF RESPONSES: CURRENT CAPACITY OUTLOOK BY QUARTER PERCENT OF RESPONSES: 6-MONTH RATE OUTLOOK BY QUARTER
Confidential | © 2016 Chainalytics Inc.
THE QUANTITATIVE: THE DATA FREIGHT DEMAND INDEX: DRY VAN RESULTS
9
GREEN Indicates weakening pricing
pressure in market due to
lower
spot market rates
for truckload capacity
Red Indicates greater pricing
pressure in market due to
increased
spot market rates
for truckload capacity
Confidential | © 2016 Chainalytics Inc. 10
The abundance of transportation data across markets combined with Chainalytics’ analytical capabilities is transforming how LLPs/Brokers
respond to these challenges
3PLS & BROKERAGES UNIQUE PRICING CHALLENGES CENTRAL TO LONG-TERM CUSTOMER RELATIONSHIPS
3PL Lead Logistics Providers (LLPs) Brokers
Maximize service and minimize spot rates by developing a reliable carrier base
Customers expect transparency, solid procurement processes and flawless execution
Ensure high levels of readiness
Strategies range from selective load acceptance to comprehensive account management
Always drive cost from the network
Capacity ebbs year to year leaving outdated routing ongoing
New lanes enter route guide sub-optimally, old lanes exit
Always drive profit
Buy low – sell high
Manage and develop trust ensuring long-term relationships
Strong understanding of transportation markets – rates and capacity-trajectory
Confidential | © 2016 Chainalytics Inc.
OUR MISSION
11
Elevate the impact of transportation for Lead-Logistics Providers and Brokerages with enhanced market-focused competency
Maximize utility of information
impacting material gains
Transform Communicate
Provide necessary information to
inform customers and providers of market dynamics
Minimize time-to-insight with ground-breaking tools and
visualization technology
Accelerate
Maximize the proliferation of data
driven insights within internal IT
systems to support procurement and pricing functions
Integrate
Confidential | © 2016 Chainalytics Inc.
FREIGHT MARKET INTELLIGENCE CONSORTIUM
12
2004 2016
+140 MEMBERS
$27B FREIGHT DATA
8 OFFERINGS
7 MEMBERS
$0.7B FREIGHT DATA
1 OFFERING
NORTH AMERICA ALL MAJOR MODES
- SHIPPER LTL, TL
- 3PL/BROKER TL
- OCEAN
BRAZIL & EUROPE - SHIPPER TL
FMIC GLOBAL GEOGRAPHIES
Confidential | © 2016 Chainalytics Inc.
FREIGHT MARKET INTELLIGENCE DEFINED ECONOMETRIC MODELING
13
https://www.youtube.com/watch?v=mIx2Oj5y9Q8
Confidential | © 2016 Chainalytics Inc.
MODEL OUTPUT: ATLANTA OUTBOUND MARKETS RATE PER MILE, >250 MILES, DRY VAN
14
1 DAY
2 DAY
3 DAY
4 DAY
5 DAY
Confidential | © 2016 Chainalytics Inc.
RATE PER MILE: ATLANTA TO CONTINENTAL 48 1-6 DAY TRANSIT TIMES
15
Confidential | © 2016 Chainalytics Inc.
RATE PER MILE: ATLANTA TO CONTINENTAL 48 1-6 DAY TRANSIT TIMES
16
Confidential | © 2016 Chainalytics Inc.
RATE PER MILE: ATLANTA TO CONTINENTAL 48 1-6 DAY TRANSIT TIMES
17
Confidential | © 2016 Chainalytics Inc.
RATE PER MILE: ATLANTA TO CONTINENTAL 48 1-6 DAY TRANSIT TIMES
18
Confidential | © 2016 Chainalytics Inc.
RATE PER MILE: ATLANTA TO CONTINENTAL 48 1-6 DAY TRANSIT TIMES
19
Confidential | © 2016 Chainalytics Inc.
RATE PER MILE: ATLANTA TO CONTINENTAL 48 1-6 DAY TRANSIT TIMES
20
Confidential | © 2016 Chainalytics Inc.
SUPPORTED OUTBOUND US MARKETS
21
Markets updated monthly
Trailing 12-Months (Contract)
Trailing 3-Months (Market)
Confidential | © 2016 Chainalytics Inc.
LAUNCHING NOWCAST IN FEBRUARY
22
Markets updated monthly
Trailing 12-Months (Contract)
Trailing 3-Months (Market)
Spot : Atlanta - Orlando Contract : Atlanta - Orlando
Confidential | © 2016 Chainalytics Inc. 23
SUMMARY – WINNERS AND THE “BIG PICTURE”
No question that the world is in significant transformation – IoT, Sharing Economy, AI, Cloud all leading to a data “explosion” Data is merely a noun…we all consume, but the goal is to win…so what do winners do in this emerging environment? Winners use data to triangulate – in ALL business cycles
- Familiarity with many sources of market intelligence - Keen awareness of strengths and weaknesses of various options - Master balance between Judgement (gut) and Data (facts) - Build efficient, repeatable, scalable processes enabling staff to
execute, collaborate and win
How do 3rd Party Providers thrive in this emerging world when the amount of information seems unmanageable?
Confidential | © 2016 Chainalytics Inc.
AGENDA
24
The Current State of Pricing
Benefits of Rating Tools
LoadDex Insights
Market Rate and Capacity Update
Freight Market Intelligence Introduction
Pricing Problems
How CHAINalytics and LoadDex helped provide solutions
We are a Chicago-based technology company focused on the logistics and
transportation space. We want to take the complexity out of shipping and
open up new possibilities across the supply chain.
Our pricing platform, LoadDex, aggregates historical, social, and external data
and empowers users to make strategic decisions about pricing and mode
selection.
25 WHAT IS LOGISTICAL LABS? COMPANY OVERVIEW
OUR CUSTOMERS:
• Transport Topics’ Top 50 Logistics Companies
• Transport Topics' Top 25 Dedicated Contract Carriers
• Inc. 5000 Companies
SHIPPING IS
CONFUSING
Which MODE is best?
Which CARRIER is best?
Is my COST too high?
Is there a FASTER way to move this?
28 PRICING NEEDS A PROCESS
• Companies feel ‘growth pains’
since there is a long ramp-up time
for reps to become educated and
profitable.
• Information silos across the
organization make it difficult to
spread the wealth of knowledge in
a uniform manor.
• Putting the best systems in place
will drive operational efficiencies
and allow companies to scale.
29 BENEFITS OF RATING TOOLS
INCREASED RATING
INTELLIGENCE
IMPROVED STAFF
EFFICIENCY
OPERATIONAL
LEVERAGE RESULTING
IN MORE PROFITABLE
SHIPMENTS
31 IMPROVED QUOTING PROCESS
• Create consistencies while quoting
the same customer/lane
• Get sales reps to think like analysts
instead of only relying on gut instinct
• Run bids much faster than before
• Track win/loss quote information to
increase their customer conversion
ratio or stop quoting customers that
rate shop
There’s so much data out there that without a process, people get lost and
info gets interpreted incorrectly. By putting a solid process in place we’ve
seen companies:
• Break down information silos and
broadcast knowledge to entire
organization
• Reduce spot quote research from 10
minutes to 10 seconds, allowing more
for more opportunities in less time
• Provide a process that allows staff to
win while giving execs the tools to
manage it
SUMMARY
Pricing is confusing; current methods
are fragmented.
Pricing needs a process. Aggregating
all data into a centralized system
allows for optimal execution.
When combining the right data with
the right tools, how do 3PLs actually
manage the process?
Confidential | © 2016 Chainalytics Inc.
AGENDA
36
The Current State of Pricing
Benefits of Rating Tools
LoadDex Insights
Trends Driving Demand for FMIC & Our Mission
Freight Market Intelligence: Trends & Visualization
Pricing Problems
How CHAINalytics and LoadDex helped provide solutions
LPS’s Background
• Incorporated in 1987
• Privately Held, WBE & DBE Certified
• Original offering was automated transportation pricing
• Headquarters in Saint Paul, MN
• Regional Branch Offices: Minneapolis, Kansas City, Houston, Tulsa, Tallahassee, Los Angeles, Antwerp Belgium
• $250+ Million Global Customer Freight Spend
37
Services That LPS Provides
• 4 PL
• 3 PL
• SaaS
• Freight Payment and Audit
• Project Logistics
• Customized Software Solutions
• Consulting
LPS Growth
41% Employee Growth Since 2014
2014 Ernst & Young finalist for Entrepreneur of Year
A MN Fastest growing company. 2013/2014 & 2015
In 2012, LPS acquired a new 24,000 sq. ft. headquarters in Woodbury, Minnesota
The Beginning of LPS’ 3PL Offering
• LPS’ 3PL offering started in 2011
• No dedicated 3PL system
• Had to be “creative” for management of transactions, customers, and carriers
• Very little process in place
Classic Pricing Problems
• Different rates quoted to the same customer
• Different pricing sources and methods
• Viewing load history was difficult
• Quotes saved on individuals email
• Difficult quote retrieval process
• RFP’s were cumbersome
LPS & CHAINalytics
• Started utilizing CHAINalytics in 2011
• Benefits that were provided:
– Provides “clean data”
– A source of “truth”
– RFP solution
– Reporting
LPS & LoadDex
• Started to utilize LoadDex in 2013
• Benefits that LoadDex provided:
– Provided one platform to view all rate information
– Visual representation for trends
– Consistent pricing
– Ability to customize
– Avoided the time, cost, and maintenance to build in-house option
Capabilities Today
• LoadDex is the only source for rates
• Quoting process is streamlined
• LPS now has the ability to easily enter quotes and retrieve quotes
– Configuration of quotes based on historical information
• Ability to see all rating sources
– Integration with CHAINalytics
– Poll the Group
• Clean LPS history
• RFP turnaround time dramatically improved
THANK YOU
ANDREW KOVAL
Manager, Truckload Services
+1(651) 789-4986
Q&A
CHRIS RICCIARDI
Co-founder and Chief Product Officer
+1(312) 662-4773
MATT HARDING
Vice President, FMIC
+1(603) 347-1250