Last Mile Logistics Group, Inc. - Corporate Profile

DESCRIPTION

Last Mile Logistics Group, Inc. conducts all it business operations through its subsidiary Chesapeake Logistics LLC. The Company provides third-party logistics services. By outsourcing its customer delivery process to Last Mile Logistics, companies are able to focus on core competencies, such as optimizing productivity, increasing revenue, and controlling costs.

Chesapeake Logistics operate from a single 21,000 square foot facility located in Elkridge, Maryland and provide regional delivery services to the states of Maryland, Virginia, West Virginia, Pennsylvania, Delaware and the District of Columbia. Management of the Company is involved in all aspects of Company operations, and is supported by an operations supervisor, a controller, dispatchers, customer service personnel and delivery crew workers.

INDUSTRY BACKGROUND AND TRENDS

We view the logistics industry as consisting of two segments, with the Company operating in both segments. The first segment involves the transportation and delivery of envelopes and small packages. The providers of these services include the United States Post Office, Federal Express, UPS and other, smaller courier services.

The second segment involves the transportation and delivery of freight. The freight delivery industry is generally characterized by two types of carriers: long haul carriers and "last mile" carriers. Long haul carriers include trucking companies and air freight companies that typically transport freight from one market or city to another, but do not provide "door-to-door" service.

"Last mile" carriers include delivery services that typically transport freight from a local warehouse or retail establishment to the ultimate destination within a metropolitan or other relatively finite area. Last Mile Logistics provides "last mile" delivery services in the mid-Atlantic region and thereby competing in this segment.

The "last mile" delivery industry has historically been highly fragmented and highly localized. No national or international company has yet become a dominant provider of "last mile" delivery services. The growth in retail sales via the internet has sharply increased the need for last mile delivery services, along with the aging population relying on delivery assistance, and retailers needing these services to differentiate. All of these factors have contributed to the growth in outsourced logistics services.

SUMMARY

Chesapeake Logistics has been servicing the Mid-Atlantic market for many years. The Company’s success is due to their absolute dedication to service and customer satisfaction: delivering merchandise safely and within the scheduled window time. Chesapeake professionally handles all aspects of the delivery process: from scheduling with the customer to assembly in their home. Chesapeake Logistics has a diverse range of clientele, including government services, medical providers, professional firms, retailers, logistics providers, associations, printers, telecommunications firms and more.

Chesapeake’s delivery crews may be the only people have direct contact with after a product purchase. Last Mile Logistics understands that this "last mile" is a critical component of a retailer’s business. The Company does not simply provide a truck and a driver, they provide a solution that is based on the retailer’s requirements: they can analyze your current "last mile" process, employ their LVA© approach to estimating the benefits of a new solution, or start immediately to remedy an existing problem. The client defines the timing, and Last Mile Logistics provides a process-oriented, customer-focused solution. Most importantly, they add economic value by reducing the retailer’s costs, while not only ensuring the sale is completed, but adding to the purchase experience and creating customer loyalty and repeat business.

As retailers have focused on their core competencies in order to compete effectively, many have elected to outsource delivery services in order to reduce capital investment in warehouse and transportation assets and to reduce warehouse and transportation expenses. This trend is expected to continue, with Chesapeake Logistics well-positioned to benefit from this trend and succeed as a provider of last mile services.