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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
· Truck segment: Ryder, Penske, and Emery Freight to small owner-operated trucking firm
· In competition: smaller firms developed specialty service or served niche markets
· Large firms expanded into multiple modes of transport and provide service across a wide range
· All shipper demanded Goals be transported safety& timely fashion
· Price importance all companies ...