Deb Keier, RateLinx’ Senior Vice President of Truckload Operations: “We’ve always viewed ourselves as a facilitator for both our clients and carriers, to not only simplify their workload(s), but also to give visibility to their important transportation issues while providing cost savings, as well as providing new business opportunities to the most cost competitive/highest-quality carriers.”

The following details some of the benefits to our clients and carriers as a result of Deb and her team’s work in 2009:

RateLinx Client – When RateLinx developed our Truckload application, we brought on some of the brightest and the best in the Truckload industry in order to build a state-of-the-art Truckload Program, with the primary goal of upfront ease-of-use and extensive back-end visibility. Through the RateLinx – ShipLinx procurement software, it is easy for our clients to create their shipments, procure the desired carrier at the best rate, bill and audit the invoices, as well as provide an extensive dashboard and reporting suite supplying critical transportation information. By leveraging our total shipment volume and combined transportation spend (currently exceeding $12 billion/yr) to attract a wide variety of high quality/high volume carriers that effectively drive down our clients’ transportation costs, we offer greater capacity and economies of scale. This practice is a win/win for both RateLinx clients and carriers utilized.

Carriers – There are numerous challenges facing today’s truckload carriers – increased costs (fuel, insurance, vehicle maintenance, employee turnover), decreased volumes, increased legislative mandates, reduction in the experienced driver pool – the list goes on and on. RateLinx’ Truckload program personnel understand what TL carriers need, having been in the Truckload industry themselves. As Deb Keier explains, “Give carriers the ability to increase their volume of business, particularly in their “core” geographic areas, and do it without adding a lot of overhead to the process, and carriers will love us.” The love affair has begun.

At RateLinx, we understand that if we continue to satisfy many of the carrier’s needs, the results are reduced costs, and ultimately, increased quality for our clients. Providing TL carriers with increased business opportunities, helping them with backhauls, and reducing their empty miles, while providing them a system that will alert them of potential shipments without having to staff people to sit in front of yet another web procurement screen – was vital to our success. Carriers are telling us that we “nailed it” and that “somebody has finally got it right.” Additionally, we allow our clients to rate the carriers’ performance, on both cost and quality, and we give the carrier a dashboard that allows them to see just how well they’re satisfying our mutual clients’ needs – these are factors that drive down costs and drive up quality.

Why should a truckload shipper utilize the RateLinx Truckload program for their truckload shipments?

• Critical Mass
• Exceptional, easy-to-use system
• Experienced transportation professionals who understand the industry
• Carrier relationships and increased capacity for our clients
• Competitive pricing & freight payment & auditing, yielding increased saving opportunities

All of this while leaving the transportation decision and authority where it belongs – with our client. Unlike a 3PL, we provide our customers and carriers with the tools they need, and systematically help facilitate the procurement process. At RateLinx, your truckload carrier contracts are between you and the carrier – we are not a 3PL. We simply make the entire process easier, faster and smarter, a process more in tune with today’s transportation industry.

For more information, or to speak to Deb Keier and her team directly about your specific truckload needs, please email Deb at deb.keier@ratelinx.com or call 262-565-6150 ext 119.

According to our prospects, clients, and especially carriers, it is becoming clear that there is an ongoing “flight process” for U.S. shippers from utilizing third-party logistics companies (3PL’s), and companies are looking for a 3PL alternative. While some group RateLinx in this “3PL category” (which is unfortunate since we are NOT a 3PL), the common theme that is materializing is that companies that utilize 3PL’s are figuring out that once they made their commitment to a 3PL, they gave up a business asset – their own carrier rates (along with carrier choices, control, leverage, relationships, etc.). Make no mistake, these companies no longer have rates with carriers. Their 3PL does. The moment they signed the agreement, it was over. Companies are realizing that they are paying too much to “borrow” these discounts, custom rate bases, etc., plain and simple. It looks like that party may be ending soon, and carriers and shippers alike are becoming wiser.

Third-party logistics (3PL) companies offer a wide variety of services – from warehousing, to consolidation services, customs brokerage, cargo management, distribution services, etc. Companies that utilize 3PL’s obviously have specific needs, and 3PL’s may offer these companies needed services and these companies will contract with the 3PL’s because they feel that they a) are not as well-suited to handle on their own, or b) they were told/sold by the 3PL that it makes financial sense to outsource these services, or both.

Utilizing a 3PL specifically for warehousing services can make a lot of sense right now, especially with the current commercial / industrial real estate market in the U.S., and the general availability of space. However, we are finding from both less-than-truckload carriers and shippers alike that companies outsourcing their freight to a third party in order to enjoy better rates – especially LTL rates – is becoming a business practice that is starting to wane. There are a number of reasons for this.

A fair amount of 3PL’s closed their doors in late 2008 and 2009. While many simply went out of business, there was also a bit of consolidation in the industry as well. Apparently, a new crop of 3PL’s are starting to emerge, according to many LTL carriers – with the same old business model – and they are getting nowhere with the carriers. The fact is that LTL carriers are finding it harder to offer “volume discounts” to 3PL’s, and their appetite for doing so is starting to wane as well. Current market conditions in the LTL industry, with carriers losing millions of dollars and/or teetering toward financial disaster and bankruptcy, is dictating that this is beginning to negatively impact most 3PL’s financial model(s). 3PL’s, in order to increase their profit margins, have few choices… they have to raise their customers’ rates, and/or decrease their costs – their rates with their stable of carriers. Carriers are starting to resist.  And, if a major carrier or two in the industry should exit the marketplace for whatever reason, excess capacity will vanish and the carriers will begin to shed “bad” pricing immediately. First on the chopping block? Third-party logistics company rates.

We have nothing against 3PL’s. Just like everything else, some are better than others (although we have yet to find one with technology that is even remotely close to RateLinx’ technology). We specialize in helping companies unwind from their current 3PL mess in an easy, clear, economical fashion. Our clients are often surprised how easy our process is.

Our industry has discovered in the last few years that the RateLinx offering is unlike no other company’s in the transportation arena, and our growth is indicative that it makes sense for both shippers and carriers alike. It is no secret how we do what we do – except that nobody on the planet can do it but us. Will that change? Who knows, but right now we are enjoying our success and are truly humbled by the companies that employ us. We are blessed to have many carriers bringing us new potential clients – for which we are very grateful – and that is why we strive to never, ever lose a RateLinx client.

Logistics Software

Apparently, RateLinx integrated logistics technology is continuing to show success for the Retail logistics segment along with their suppliers, according to Dan Hatzenbuhler, Regional Vice President at RateLinx. Dan specializes in RateLinx’ Retail clientele, and is having success with our transportation management solution because it supports retailers’ critical business initiatives and strategies while providing the retailers’ suppliers with a more integrated – yet non-invasive – supply chain enhancement strategy.

Dan Hatzenbuhler is a former LTL company senior Vice President, and has been involved with RILA (Retail Industry Leaders Association) members for many years. “Our comprehensive portfolio of services helps our clients manage the complexities of a multi-modal logistics network, while improving efficiencies and reducing costs. The RateLinx integrated system produces client capabilities that create a competitive advantage and demonstrates value within the retail supply chain.”

Dan further explains the capabilities:

• Lane analysis and transportation sourcing to achieve consistent product movement and lowest landed cost
• Network optimization applicable on all modes of transportation
• Vendor compliance to established requirements
• Supply chain visibility
• P.O.# visibility
• Collaboration and planning
• Reducing lead time and meeting fulfillment needs
• Reducing inventory and distribution costs
• Transportation management tools that support daily operational needs and required functionality at multiple locations
• Pre-audit and freight payment based on client-specific rules
• Customized real time reports to manage corporate KPI’s

Dan Hatzenbuhler can be reached at 417-496-7563 for those companies in the retail/chain store segment interested in discussing how to improve their transportation strategies while improving logistics technology. Look for both Dan (dan.hatzenbuhler@ratelinx.com) and Angelo Savaiano, RateLinx’ Senior Vice President of Business Development (262-565-6150 ext. 112 angelo.savaiano@ratelinx.com) at the 2010 RILA Logistics Conference in Orlando February 21st through February 24th, and the NACDS (National Association of Chain Drug Stores) 2010 Supply Chain & Logistics Conference in San Antonio on February 28th through March 2nd to discuss how RateLinx can help your company.

We appreciate the patience and assistance of our staff in this transition, and are looking forward to our continued success in the Madison area. Madison has much to offer – and as an added benefit, the University of Wisconsin offers us a pool of many talented individuals that will help fuel our growth.

We welcome our clients to come visit us!

On July 28, 2009, the P21WWUG held a webinar in which RateLinx unveiled a special program designed specifically to leverage their members’ collective annual LTL freight activity to drive down pricing on LTL freight rates and provide other needed services (thus eliminating the need for LTL providers). Members choosing to enroll in this program receive reduced rates for LTL shipping, freight audit and payment services, as well as a whole suite of transportation technology at little to no up-front cost, including ShipLinx TMS, ShipLinx Customer Service Inquiry Module (CSI), and the RateLinx Dashboard. RateLinx also provides seamless integration to Prophet 21 for shipping and reconciling carrier invoices. With ShipLinx, members can enter or scan pick tickets and ship any mode (parcel, LTL, TL, etc.) or carrier of their choice for domestic and international shipments. Once the shipment is processed, ShipLinx generates carrier documentation, labels, packing list, and a file containing shipment information that is pulled into Prophet 21 to update the order and automatically confirm the shipment in a one-step process. Prior to RateLinx, shipment integration with Prophet 21 was done in a three-step process and was very time consuming and inefficient. The RateLinx Dashboard provides members with key performance indicator (KPI) tracking on their actual freight payment information with charts and graphics, helping to reduce, monitor, and control freight spending near real-time, a capability that is not available in most ERP systems.

With RateLinx, members can now get everything they need for shipping (transportation technology and logistics services) from a single provider – market-level carrier pricing, anywhere-to-anywhere electronic routing, shipment tendering, freight auditing, general ledger (GL) coding, freight payment, accurate reporting, and graphical KPI tracking.

Business & Decision, a Microsoft Gold Certified Partner, has already established an exclusive partnership with the ‘best-in-class’ freight management service and logistics technology provider, RateLinx. RateLinx will fully integrate its products and services solution with the following Microsoft technologies: Microsoft Dynamics AX, Microsoft Office SharePoint Server 2007(R) and Microsoft Office PerformancePoint Server 2007(R).

RLinteract is a pre-integrated, pre-tested, no-risk freight solution for the Distribution and Manufacturing industries. RLinteract provides immediate monetary savings of at least 10% against business freight expense, along with daily visibility for each freight cost incurred by an organization. This solution allows an organization to control both its outbound and inbound freight charges, while affording the RLinteract user with greater savings potential than a traditional third-party logistics (3PL) provider offering.

‘We have spent more than a year evaluating solutions that could complement our already extensive portfolio of software and services. With the addition of RateLinx to Business & Decision’s RLinteract solution, we now have the best offering in the marketplace’, says Sylvain Thauvette, CEO, Business & Decision North America.

‘RLinteract comes at an ideal time to support our current and prospective customers in weathering the global economic crisis that is affecting everyone. To further help customers, Business & Decision is offering a ‘pay as you save’ option that allows companies to pay for RLinteract implementation services out of their actual freight savings.’ says Frank Lolli, Vice President, Microsoft Operations, Business & Decision North America.

‘Business & Decision and Microsoft certainly did their homework,’ says Steven Shoemaker, a Co-Founder of RateLinx from their Brookfield, Wisconsin headquarters. ‘CFO’s and business leaders worldwide have been looking for these capabilities for a long time. Business & Decision and Microsoft have an extremely compelling offering, and we’re pleased to be a part of it.’

Shannon Vaillancourt, also a Co-Founder of RateLinx, adds ‘Having a pre-integrated, pretested solution with Business & Decision will now allow Distribution and Manufacturing companies the ability to enjoy the benefits of our popular ShipLinx product faster and at a much higher level than was ever possible before RLinteract.’

About Business & Decision

Business & Decision is an international Consulting and Systems Integration (CSI) company. It is a leader in Business Intelligence (BI), and Customer Relationship Management (CRM) and also a major player in e-Business and Enterprise Information Management (EIM) contributing to the success of customer projects by driving maximum business performance. The company has a reputation for functional and technological expertise and has forged partnerships with all of the key technology vendors.

Located in 20 countries, Business & Decision currently employs more than 2,900 people worldwide.

Additional information is available at www.businessdecision.com.

About RateLinx

RateLinx (LRM Technologies, LLC) is a privately-held company specializing in less-than-truckload (LTL) optimization, freight payment and auditing, as well as being a recognized leading manufacturer of integrated logistics technology (small parcel, LTL, truckload, international, etc.), while managing and/or servicing freight in the billions of dollars annually for thousands of shippers domestically and internationally.