BlueStarThe Frieghtastic Four

Adam Silcox, Ryan Millians, Quentez Hodge, Cliff Padgett

1

Current Issues Financial Break Down◦Analysis

Steps of Implementation RecommendationConclusion

Agenda

2

Customer Service Levels

Transportation Costs

Corporate Sales

Profit margins

Current State of Business

3

Carrier Type

Sum Of Freight Paid

Count Of Freight Paid

Average Weight

Average Miles

AIR $8,150,619 1,905 1363 614

LTL $197,694,387 99,213 5947 472Small

Parcel $93,825 225 132 1047

TL $42,801,903 27,660 12912 433

Total Spent $248,740,737

Annual Cost Analysis by Mode

4

Carrier Selection ProcessCarrier Name Count Freight

Paid Avg On-Time Avg Delivered Complete

Avg Damage-Free

Avg Billed Accurately

Avg Customer Service

Weighted Average

MOUNTAIN VALLEY EXPRESS 6 1 1 1 1 1 6

HOWARD'S EXPRESS INC. 5 1 1 1 1 1 5

DATS TRUCKING INC 3 1 1 1 1 1 3

A & E TRUCKING CO 2 1 1 1 1 1 2

NATIONSWAY TRANSPORT INC 1 1 1 1 1 1 1

CROUSE CARTAGE 2834 98.73% 99.26% 97.04% 97.60% 98.16% 2781.75

Average Customer Service

Avg Billed Accurately

Avg Damage-Free

Avg Delivered Complete

Avg Delivered Complete

Avg On-Time

Count Freight Paid

Avg Customer Service

Weighted Average

5

Top TL Carriers

Carrier Name Count Freight Paid

Avg On-Time

Avg Delivered Complete

Avg Damage-Free

Avg Billed Accurately

Avg Customer

ServiceWeighted Average

CROUSE CARTAGE 2834 98.73% 99.26% 97.04% 97.60% 98.16% 2781.75

OLD DOMINION FREIGHT LINE INC 1327 99.40% 100% 96.46% 93.90% 97.44% 1293

SAIA MOTOR FREIGHT LINE INC 238 98.32% 100% 99.16% 92.02% 97.37% 231.75

JB HUNT TRANSPORT INC 321 83.49% 100% 95.33% 93.46% 93.07% 298.75

WICHITA-SOUTHEAST

KANSAS TRANS852 84.15% 99.30% 98.36% 88.73% 92.63% 789.25

6

Carrier Name Count Freight Paid

Avg On-Time

Avg Delivered Complete

Avg Damage-

Free

Avg Billed Accurately

Claims Metric

Weighted Average

SOUTHEASTERN FREIGHT LINES INC

5192 81.53% 99.09% 96.21% 88.89% 91.43% 4747

N & M TRANSFER CO INC

1397 82.61% 98.21% 94.56% 89.62% 91.25% 1274.75

RC TRANSPORT 1509 80.91% 98.28% 96.89% 86.68% 90.69% 1368.5SWEENEY TRANSPORTATION

1804 81.76% 99.06% 96.18% 84.98% 90.49% 1632.5

USF HOLLAND INC 10305 81.48% 99.03% 92.42% 88.82% 90.44% 9319.5

7

Top LTL & Small Parcel

Carrier Name Count Freight Paid Avg On-Time Avg Delivered

CompleteAvg

Damage-Free

Avg Billed Accurately Claims Metric Weighted

Average

NEW PENN MOTOR EXPRESS 52 86.54% 100% 98.08% 82.69% 91.83% 47.75

COVENANT TRANSPORT 6 83.33% 100% 100% 66.67% 87.50% 5.25

LTL

Small Parcel

LTL increased .16%

TL increased 3.04%

Small Parcel increased 4.05%

No customer service changes in Air

8

Customer Service Analysis

What qualifies an Origin-Destination pair as a candidate for consolidation:

◦Two-Day Shipping ◦Weight Restriction of 40,000 lbs. ◦Corresponding Origin- Destination Pair◦Used Truck Load rates from same lanes

to price consolidation⚫Added Stop-Off charge of $50 for each

additional stop

LTL Consolidation

9

Carrier Type Origin City Origin

State Dest City Dest State

Avg Freight

Paid

Count Freight

PaidAvg Weight

Sum Freight

PaidMiles

LTL PAINESVILLE OH HAMILTON OH $2,745 252 11888 $691,839 242

LTL PAINESVILLE OH MILTON PA $1,981 204 4826 $404,153 280

LTL RIVERSIDE MO OMAHA NE $2,131 176 5497 $375,081 184

LTL CHICOPEE MA MILFORD MA $3,400 173 12776 $588,127 80

LTL ATLANTA GA CHARLOTTE NC $2,140 149 6511 $318,901 270

10

Top Origin-Destination pairs for LTL Shipments

LTL Consolidation Example Carrier Type Origin City Dest City Freight Paid Weight Ship Date Total

Weight Total Cost

Before Con. TL Cost Stop Off Charge Total Cost Savings

LTL PAINESVILLE HAMILTON $5,287 19331 3/3/2012 35,501 $10,637 $876 $50 $ 926 $9,811

LTL PAINESVILLE HAMILTON $5,351 16170 3/3/2012LTL PAINESVILLE HAMILTON $3,622 1235 3/5/2012

26,440 $7,328 $ 876 $50 $ 926 $6,502 LTL PAINESVILLE HAMILTON $3,706 25205 3/6/2012LTL PAINESVILLE HAMILTON $3,617 2580 3/7/2012

28,656 $10,771 $876 $100 $ 976 $9,995 LTL PAINESVILLE HAMILTON $3,589 19360 3/7/2012LTL PAINESVILLE HAMILTON $3,565 6716 3/7/2012

LTL PAINESVILLE HAMILTON $876 42280 3/10/2012 42,280 $876 $876 $876 $0

LTL PAINESVILLE HAMILTON $3,832 29050 3/11/2012 29,050 $3,832 $876 $876 $2,956

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-2 Loads -3 Loads -LTL to Truck Load

12

LTL Consolidation Example

-4 Loads

Carrier Type Origin City Dest City Freight Paid Weight Ship Date Total

Weight Total Cost

Before Con. TL Cost Stop Off Charge Total Cost Savings

LTL PAINESVILLE HAMILTON $686 730 6/13/2012 20,105 $8,396 $ 876 $ 200 $ 1,076 $ 7,720 LTL PAINESVILLE HAMILTON $876 42280 6/13/2012 42280 $876 $ 876 $ 876 $ 0 LTL PAINESVILLE HAMILTON $1,808 5570 6/13/2012 LTL PAINESVILLE HAMILTON $1,795 5130 6/13/2012 LTL PAINESVILLE HAMILTON $1,086 485 6/14/2012 LTL PAINESVILLE HAMILTON $3,021 8190 6/14/2012 LTL PAINESVILLE HAMILTON $876 24235 6/14/2012 39,956 $6,645 $ 876 $ 150 $ 1,026 $ 5,919 LTL PAINESVILLE HAMILTON $1,836 6726 6/14/2012 LTL PAINESVILLE HAMILTON $1,936 2590 6/14/2012 LTL PAINESVILLE HAMILTON $1,998 6405 6/15/2012

-5 Loads

After Consolidation Savings:◦ $26,386,425

annually Cut Annual LTL

costs by 40.04%◦ Consolidated 15% of

all LTL shipments.

LTL Consolidation Analysis

13

24 out of the 30 TL carriers serviced the Top 50 Origin-Destination lanes.◦ Same 24 were found servicing the Top 20 lanes.

Carriers not servicing:◦ A & E Trucking Co.◦ Action Express Inc.◦ Dats Trucking Inc.◦ Howard’s Express Inc.◦ Mountain Valley Express◦ Nationsway Transport Inc.

14

TL Carriers in Top 50 Lanes

15% of Origin-Destination pairs transferred to Truck Load.

Previous spent on Air: ◦ $8,150,619 annually

Total saved annually after consolidating 15% of shipments◦ $764,862

Saved 55.41% on shipments consolidated◦ $764,862/$1,380,368

Using 55.41% to project, savings up to $4,516,258

15

Air Consolidation

Transferring LTL and AIR Shipments to Truck-Load

Use a two-day consolidation schedule

Use selected top Carriers to improve Customer Service

If recommendations are applied optimally BlueStar will save in excess of

$27,151,287 ◦ A minimum of 11% in savings.

16

Recommendations

Current State of Business Transportation costs Carrier Selection Customer Service Analysis LTL Consolidation Air Consolidation Recommendations

17

Conclusion

18

Questions?