2012 Lps Overview Intro

Logistics & Procurement Services, LLCIntroduction

Presented By: Steven C. Hogan, PresidentLogistics & Procurement Services, LLC (d/b/a “LPS”)

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“Your Transportation & Logistics Experts” LPS2012SM

LPS Service Mission


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“Establish 10-30%+ operating cash savings through our

expertise in operations & procurement of logistics and

transportation services working as our Customer’s

Independent, Staff Experts in securing the best costs and

services.”

“Your Transportation & Logistics Experts”LPS2012SM

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We are a management service company that

provides procurement expertise, consulting, and

solutions to help our customers establish and

manage supplier contracts that deliver better

pricing, value and services.

Who we are:

LPS Strengths


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LogPro TM

Structured Spend Management Improvement Process

Proprietary Analysis / Simplification / Standardization

25+ Years Best Process / Practice Alignment To Customer Business

Rapid & Sustained Cost Reduction

LPS Customers


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Status Quo” Customer— Legacy services and costs with primary focus on daily operations and execution, limited internal expertise in transportation and logistics and poor internal information to recognize and implement improvements. Costs are generally rising and unknowingly absorbed or passed on.

“Routine” Customer—Services and costs are updated to a schedule more reactively based on service changes, price increases, or internal events effecting operations, locations, and customers. Internal expertise exists without work tools, planning, or depth of knowledge and leadership visibility to achieve more than cost containment.

“Challenged” Customer—Services and costs are updated with specific internal expertise however the resources are used in a more formalized project mentality causing trade‐off and completion challenges. Leadership visibility is good, cross‐functional strength is poor or specific expertise to address larger scale improvements in process, policies, organization, technologies, network, and services leaving significant cost and service improvements unrealized.


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Why We Exists:

Customer Gaps Transportation:

• Transportation expenses are #1, 2, or 3 of “Total Company Expense”

• 90% of company effort & resources are “Operational” (receive, ship, process)

• Data Analysis & Complexity are “ Beyond Limits ” of Internal Capabilities


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Why We Exist:

Customer Gaps Logistics Operations

• New Business Requirements or CapabilitiesNeeded

• Current Organization or Silos Limit Improvement Visibility & Change

• Logistics Options & Knowledge Is Outdated or Missing

Solution Areas:

“Your Transportation & Logistics Experts” LPS2010SM 8

Service‐Providers

• Less Than Truckload• Truckload• Parcel• Rail• Intermodal• Forwarder / US Customs• Ocean • Air / Expedite• Rail

Service‐Providers – continued:

• Intermodal• USPS/Mail / Consolidation• Private Fleet & Dedicated• Courier• Expedite• Warehousing• Distribution• 3PL• Outsourcing• Transportation• Fulfillment / Warehousing

Logistics Operations & Administration

•TechnologiesTransportation MgtSupply Chain Visibility

•Freight Audit / Payment•Freight Terms•Shipping & Handling Revenue

•Consolidation; Pooling; X‐Dock

•Vendor Compliance•Routing Guides•Claims•Packaging

Our Approach


LPS services include full resource and management of procurement and

operational improvements from selection, negotiation, and contracting

through implementation to strengthen our customers existing functions or

implement new solutions.

LPS Process View:


1. Audit & Value Assessment

2. Service Agreement / Work Statement / Time Line

3. Resource & Service Implementation (s)

4. Completed Service Audit / Value Assessment Validation

5. Ongoing Value Assessment, Reporting, & Updates*

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Net Improvement Discussion View

11Year 1 Year 2 Year 3

Typical Customer 3‐6% Reduction or “Flat” (C)

3PL Management 4‐12% of “Spend $’s” (B+C)

C

A

B

LPS 10‐30% Cost Reduction• Fixed Service Cost• Customer Retained

80% Savings (A++)

Cash Savings

LPS Differentiators:

a) LogProTM – Standardization & Process Expertise

b) Concurrent Improvement / Time to Value 60‐90 Days

c) Collaboration & Customer Knowledge Increase

d) Analysis & Rationalization Aligned To Customer:a) Capabilitiesb) Modesc) Network

e) Results Focused ‐ Implementation


LPS Customers Include:


• Fortune 100 – 1000

• Manufacturing

• Retail

• Services

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Thank You !


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Contact Us:Steven C. HoganPresidentLogistics & Procurement Services, LLCP.O. Box 271Verona, KY 41092E‐mail: [email protected]: 859.630.6944Office: 859.485.6994

Documents

2012 Lps Overview Intro