Adam McDaniel, CEO
Less than Load (LTL) shipping is a $36 billion industry.98 percent of the LTL industry is managed by direct shipper/ carrier relationships. Less than 2 percent of the mode is managed by freight management companies. This has caused the shippers to do the brunt of the work without any additional help. LTX is developing freight management technology systems and processes that give shippers a full team of experts to assist with the ever growing workload that surrounds LTL shipping.
“We started about seven years ago,” says Adam McDaniel, CEO of LTX. “My father was a freight manager, so I grew up in the arena.” McDaniel says that while LTX started as a full-scale 3PL service (including warehousing, asset trucking, FTL Brokerage, etc.), it eventually began developing products that addressed the complexity of the LTL landscape. In 2015, LTX started focusing on the LTL arena alone, helping companies streamline their processes, particularly in freight pay/ audit, rate negotiation, technology systems, and data management.
LTX’s main goal for its clients is to save them money through arduous rate negotiations with carriers. “Shippers want the best expertise they can get for the best price,” says McDaniel. McDaniel combines his knowledge of the industry and ever-increasing buy power to negotiate cheaper rates, on a customer specific basis, for his robust portfolio of clients. LTX has saved their customers millions over LTX’s short LTL focused tenure. McDaniel states “The bigger we get the better our buying power becomes, which in turn, flows directly to our customer’s bottom line. This rate negotiation tactic creates immediate value.”
On the Operations side McDaniel says there are an immense amount of issues surrounding data and analytics when it comes to LTL. “Companies don’t know where their data is, how much money they spend, what shipments they have, or which key metrics to pay attention to.”
LTL is a complicated mode of transport that requires enormous amounts of detailed focus. I want our clients to view us as the firm that continues to make their lives extremely easy
LTX overcomes this challenge by developing customized solutions to preserve data integrity. In turn, LTX’s analytical reviews include precisely what their customers should be paying attention to in regards to key metrics. Shippers receive customized weekly flash reports, monthly business reviews, and comprehensive annual reports.
To add even more value for their customers, LTX creates a weekly consolidated invoice for every customer. The company consolidates all shipments from the week prior, and bills it to the customer as a lump sum. LTX then pays the carriers that make up the consolidated invoice on behalf of the customer. This saves the customer an enormous amount of accounting time.
Before invoicing, LTX makes sure that both classification and weight are correct for each shipment. This prevents unnecessary additional bills from occurring weeks later. LTX’s focus on freight pay/audit has them soaring above the industry standards performing at a 96 percent on-time invoicing rate compared to a 40-50 percent on-time rate experienced throughout the industry.
McDaniel says, “We want to give them all the tools necessary for achieving success. Our customers are taken aback because we do everything regarding the management of their LTL Supply Chain. They don’t really need to be involved anymore.” He states that customers tend to be timid at first, but they soon get excited about having an involved partner. “I think we have developed a service product line that works for all LTL shippers, no matter what size.”
Regarding future plans, LTX is expecting to continuously evolve by further developing its suite of proprietary software products.