National Logistics Management
In less than two decades National Logistics Management has already become one of the most successful and fast growing logistics companies of the USA. Despite increasing competition in logistics, NLM continues to adapt itself to the changing environment. Suffice to state just one fact: two years in a row ( in 2004 and 2005 respectively) – two reputable and well-known magazines- Inc. magazine and Start magazine recognized NLM as one of the most innovative and fast growing companies.
Undoubtedly, the innovative strategy of providing cost-effective way to facilitate and expedite premium freight is behind the success of the company. About the Company: * The company was founded in 1991 by Taylor, right from the start the company implemented an innovative approach- premium shipments were put by bid to the definite group of carriers. * The former had to respond quickly in order to receive the order.
Once several responses had been obtained the contract was awarded to the best bidder (the winner was determined by the number of factors: the price, the quality of the services provided and etc). NLM tracked the status of the order until the goods had been delivered, keeping all parties informed. * Despite the obvious fact that this system was more convenient and more efficient, some carriers as well as plant managers were dissatisfied with it, but NLM took several steps to remedy the situation. * The company has maintained its approach since 1991.
The innovative strategy implemented by company has several important advantages: * Asset visibility (Transparency) * Ease of use * On-time delivery * Value (lower cost) National Logistics Management (NLM), a third-party logistics company, is a successful, profitable business that provides a more cost-effective and efficient means to expedite premium freight. With the logistics landscape changing, NLM’s market niche is threatened NLM Operations: Challanges in NLM: * Can NLM survive in the newer, faster e-business logistics world? * What are NLM’s options for growth? * Constantly under pressure from large customers. * Additional source of revenue.
New market * Not having effective supplier compliance system Lacking a clear vision of information system strategy (EMS). * System is prone to error. Company Strategy: * More cost effective and efficient means to expedite premium freight. * 3PL internet based strategy-Creating a network of carriers through an online and phone bidding system. * Specialising in orders that have a high degree of urgency. * On time and onsite delivery. * Focus on 3 top automakers companies e. g. , Ford, General Motor and Chrysler. * Selection of the carrier based on quality and price. * The use of EMS to streamline operations and support decision making.