Thursday, October 24, 2019
NLM Analysis :: essays research papers
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  ·Ã‚     Truck segment: Ryder, Penske, and Emery Freight to small owner-operated trucking firm  ·Ã‚     In competition: smaller firms developed specialty service or served niche markets  ·Ã‚     Large firms expanded into multiple modes of transport and provide service across a wide range  ·Ã‚     All shipper demanded Goals be transported safety& timely fashion  ·Ã‚     Price importance all companies (especially large, automakers) want to reduce cost of delivery to customer  ·Ã‚     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  ·Ã‚     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 optimal shipping modes; export shipments to its vast 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 coordinate shipments based on best price and carrier quality ratings all within a 30-minute window. Company profile Founded in 1991 Over 1.3 Million 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 Information †¢Ã‚     1999 Revenues:          $ 7.3million No debt †¢Ã‚     Total share:           $ 825 million (10% MKT Share) †¢Ã‚     Employee:           111 –     65 in Detroit, Michigan Office –     36 Logistic coordinators & Supervisors –     7 Audit Team –     1 Marketing & Business Development –     2 IT Team Business Model Business to Business NLM to Big 3 automaker (Ford, GM, Daimler Chrysler) NLM manages the return of containers to over 130 suppliers throughout North America. The returnable container 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.
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