B2B Transportation and Logistics Exchange for the Latin American Region

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• B2B Transportation and Logistics Exchange for the
  Latin American Region

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The problem (for carriers)
Who pays for all this inefficiency?
In the end, shippers do.
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The problem (for shippers)
Shipper realizes it needs to ship ASAP...
...it calls the few local companies it knows
...only one of them has a truck available
YES
...and it makes sure to charge handsomely for it
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Market characterization
The end result is a very sparse network...
...that uses old technology
...thus increasing the cost of information
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What if ?
Lower processing costs
Lower processing costs
Improve service
Increased availability
Reduce unused capacity
Bidding price reduction
Increase reach
Carrier rankings
Product offers
Ware housing
Domain expertise
Route optimization
Domain expertise
International trade
We connect shippers and carriers together
...allow them to do business
...and offer them many additional services?
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Market size
Total trucking transportation market (for the
industries we target) is about 45 billion.
Lets take the amount spent on trucking...
...control for quality by filtering small carriers
...and assume only 30 of ROLA is a target
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Competition
Company Country Market Language Partners (Customers) Site Technology Transaction Costs Representative Services Observations
RodoFretes Brazil Trucks Portuguese Jabur (NA) MS ASP Free until 7/00. Then a 6-month fee for carriers and shippers Freight auctions Route auctions weather conditions transit lawgas stations distance calculator mapsnews eventsmonthly prizes Many services not implemented.500,000 initial investment. Jabur is a Brazilian tire retailer with stores in 40 cities
Webtrans Brazil Trucks Portuguese Unknown (NA) Staticlimited interactivity Monthly fees 80 Website development, maintenance and hostingInternet EDI application development, A/P, A/R automation, electronic Invoicing, Data entry applications, basic routing exchange eCommerce System Integrator and Service Bureau rather than a marketplace. Many services not implemented. Lots of banners.
MercoTrack Chile Trucks Spanish E-Ventures Loginsa Logistics (NA) MS ASP Carriers 30/mo (first three mo. free) Shippers free Access through phone Marketplace (post, review, select bids)Freeway conditionsDirectory of companies, News Events Site w/dead links, ASP/DB errors, underdeveloped.No contact address/phone. Include ads.
NetLogistiK Mexico Trucks Spanish Carrierpoint TUM Carrierpoints Fee per shipment Marketplace for long-distance transportation, chat Very early stage, initial deployment in Mexico. Site not live (May00)
Logisat Argentina Trucks Spanish None Known (NA) Static HTML pages Unknown Basic MarketplaceSatellite Control services and equipment for sale More satellite tracking services and equip. than a eMarketplace
CarrierPoint Atlanta, GA Trucks English TireDex, iXL, WorldCatch, Chemicalbid, IronMax, ChemConnect, BidMgr., MaterialNet, Randall Pub. Java, JSP, Javascript XML, CGI, DHTML, PERL, EJB, JDBC, Oracle DB, Solaris Fee per shipment Marketplace, data warehouse, ERP/FMS and Tracking Systems Integration, Forums, Ask the Experts, news, alerts, OLAP First Round Nov. 99 1.3 millionInvestors iXL, CyberLab Ventures, Simon Sons, Deutche Bank.
NTE Downers Grove, IL Trucks English mySAP.com, (500 shippers, carriers, and thru Manugistics) Proprietary GUI initial fee cost of NTE GUI News, events, marketplace, tracking 4th round Jan 00 53 Millions (Hummer Winblad, ATT, CrossPoint,, Divine interVentures, Fedex and Dell)
Other Relevant Truck marketplaces FreightMatrix (from i2), Transplace, eFlatBed, FreightQuote, LoadMatch. Other players in Europe Other Relevant Truck marketplaces FreightMatrix (from i2), Transplace, eFlatBed, FreightQuote, LoadMatch. Other players in Europe Other Relevant Truck marketplaces FreightMatrix (from i2), Transplace, eFlatBed, FreightQuote, LoadMatch. Other players in Europe Other Relevant Truck marketplaces FreightMatrix (from i2), Transplace, eFlatBed, FreightQuote, LoadMatch. Other players in Europe Other Relevant Truck marketplaces FreightMatrix (from i2), Transplace, eFlatBed, FreightQuote, LoadMatch. Other players in Europe Other Relevant Truck marketplaces FreightMatrix (from i2), Transplace, eFlatBed, FreightQuote, LoadMatch. Other players in Europe Other Relevant Truck marketplaces FreightMatrix (from i2), Transplace, eFlatBed, FreightQuote, LoadMatch. Other players in Europe
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Why us ?
Management experience...
Entrepreneurship experience...
Technology and Internet experience...
Domain expertise...
US graduate degrees (business computer science)
Substantial prior experience working together...
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Strategic advantage
27 years of experience in logistics and
transportation
Access to key customers
Rapid ramp-up and site buildout
Leading consultancy in Latin America
Immediate branding Unique content
Offices in the region
Focus on problem
Global presence
Deploy in Europe/Asia
Second-to-none domain and region expertise
Differentiator in content, new offerings,
extensions
In B2B, domain expertise is key...
...you have to be recognized a global leader
...across specialties
, and industries
...and have long-standing relationships
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Sources of revenue
First, within-country transportation...
Then, inter-country transportation...

Last, third-party warehousing...

...charge 1 for raw materials and interfacility
...and 0.8 for distribution
...5, 12, 23, 36, and 52 share yrs. 1-5
...yield revenues of 8.4M (1st) and 72M (3rd)
...charge 0.7 fee (about 11 per avg. Trip)
...capture market share with same diffusion
...3k, 10k, and 20k pallets (1st, 3rd, 5th yrs)
...average rotation of 10 days assumed
...2 fee on 8/month 1.5/inout prices
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How? Operations Strategy
Four phase Operations Strategy
HQ in Miami...
Reach Establishing Pan-Regional Presence
Depth Strengthening Client Relationships
Scope Expanding to Vertical Markets
Link Integrating Into a Global eHub
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Financial needs
Office deployment
Miebach offices
Own offices
1.8M
1M
750k
Milestones and Money
Presence in HQ, MEX, ARG, BRA, and CHI. Site
with long-distance transportation TLD- (beta)
Site with TLD distribution. Contracts in all
four countries
Site with TLD, distribution, and 3PL. In
addition, own offices in five key
locations. Last, transactions in all markets and
brand awareness
Employees
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Contact information

• ? If you are interested in partnering with us as
  an investor, a technology partner, or a strategic
  ally, please contact
• Luis Blando
• lblando_at_letscargo.com
• 617.623.8523
• If you would like to join our engineering team,
  please contact
• Juan Gonzalez
• jgonzalez_at_letscargo.com
• If you would like to join our marketing team,
  please contact
• Edwin Elberg
• eelberg_at_letscargo.com