Market Positioning
There are three types of logistics companies:
“Big Box” - Your
logistics budget becomes their logistics budget, fixed technology
expense and high corporate overheads. Logistics process is designed
to fit into their company processes.
The Customer
will be charged fees and will not receive any guarantees.
Some firms
strategic direction is simply to outsource to a “Big Box”
3PL their strategic supply chain direction and infrastructure.
Internal
logistics managers and experts are often supplanted.
“Post Process” -
Non Integrated or “After the Fact” provider
Freight bill
payment and audit.
Fee Based,
not performance based. Fees are levied whether or not savings
occur.
Shared Savings-Negotiate
10% Savings-50% Share
What happens
after the 1st year?
No commitment
to continuous improvement.
“Asset Providers/ Brokers”
-Many companies call themselves “Logistics” firms
but really are asset providers, such as warehouses or trucks.
The focus
is ROA for Their Asset. Whether the truck is
effectively utilized is secondary to whether
and if the asset is utilized.
Focus is
on rates and broker margin per transaction.
Leading Edge Logistics has positioned itself
as an integrated logistics management company focusing our attention
primarily on the middle market. None of the aforementioned type
3PL companies focus on the middle market. A fee based organization
is not committed to the long term. In an integrated logistics
capacity, LEL is part of the management team of the customer,
co-driving the logistics strategy as approved by senior management.
Our ability to design an effective distribution and/or logistics
program enhances our customers’ growth, and contributes
to our customers’ bottom line.
In addition to being non-asset based, we pride ourselves on being
non-asset biased; constantly seeking
new and more efficient methods of service. This constant search
for new transportation methods provides our customers the security
of secondary as well as a primary solution for their transportation
needs. LEL carefully selects the best vendor for the opportunity,
efficiently utilizes their equipment, effectively communicates
our customer’s needs and remits payment on a timely basis.
LEL owns no assets and thrives on our ability to create, grow
and maintain strong relationships at every level.
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