NLM Analysis :: essays research papers

Part ILogistic BusinessTransportation, Process to manufactures & 3 keys Shipper needs to ship product or goods by utilize Carrier to Receiver 3rd Party Logistics Provider / ServiceShipper ReceiverType of 3PLsAsset-BasedNon-Asset-BasedRevenue 100% 100%COGS 80 85%70 - 74%Gross Profit Margin15 20%26 30%Asset-Based Owned its own fleet of transportation vehicles i.e. truck, airplanes, railroads and ocean commitmentersNon-Asset-Based without any of their own physical assets.Freight TransportationMultiple shipments air, water, truck, and railTruck segment Ryder, Penske, and Emery Freight to small owner-operated trucking firmIn competition smaller firms developed military strength service or served niche markets Large firms expanded into multiple modes of transport and provide service across a wide rangeAll shipper demanded Goals be transported safety& timely fashionPrice importance all companies (especially large, automakers) want to reduce cost of delivery to customerBig 3 autom aker (Ford, GM, Daimler Chrysler) expression to better management of supply chain (the series of transaction & interaction between suppliers, buyers, and intermediaries) to minimize costs while improving qualityAll parties manufacturers, 3PLs, suppliers could take part in EDI (electronic data interchange)NLM OverviewNational 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 optimal shipping modes export shipments to its wide carrier base including ground, air freight, and air charter receive bids back form its carrier network evaluate the lowest bids and carrier quality ratings and form shipments based on best price and carrier quality ratings all within a 30-minute window.Company profileFounded in 1991Over 1.3 Millio n shipments successfully managed.Network in North America 200+ Assembly and Manufacturing Plants 6,800+ Suppliers and 300+ Ground, Air Freight, and Air Charter Carriers Financial Information1999 Revenues$ 7.3million No debtTotal percent $ 825 million (10% MKT Share) Employee 11165 in Detroit, Michigan Office36 Logistic coordinators & Supervisors7 Audit Team1 Marketing & Business Development2 IT TeamBusiness Model Business to BusinessNLM to Big 3 automaker (Ford, GM, Daimler Chrysler)NLM manages the return of containers to over 130 suppliers throughout North America.The returnable container computer program is part of an industry-wide greening strategy to reduce landfill use and decrease production-source pollution. Suppliers ship their products to the plant in returnable, reusable plastic containers. Most containers are returned to the suppliers within a 12-24 hour period. NLM determines release quantities and ship frequencies for containers and monitors supplier inventories.