SUPPLY CHAINS FACE NEW CAPACITY, COST, AND SERVICE LEVEL PRESSURES

FOR IMMEDIATE RELEASE

SUPPLY CHAINS FACE NEW CAPACITY, COST, AND SERVICE LEVEL PRESSURES

Logistics Operations Have Mandate For Process & System Improvements, According To Aberdeen Report, Co-sponsored By LeanLogistics

HOLLAND, MICHIGAN – January 10, 2005 - LeanLogistics, the leading provider of web-native Transportation Management Systems (TMS), highlights the challenges facing logistics operations documented in co-sponsored research by Aberdeen Group. Shippers must address customer demands for more reliable deliveries and shorter cycle times and simultaneously, a freight capacity crunch caused by many new pressures on carriers. This changing basis of competition requires shippers to conform to new performance expectations in interactions with customers, carriers, and suppliers, and also with their internal stakeholders.

“Regardless of their current transportation maturity level, all companies need to upgrade their processes to manage costs in today’s market of tightening freight capacity and escalating customer demands,” said Beth Enslow, vice president of Enterprise Research at leading industry analyst firm Aberdeen Group. “To spur performance improvements and keep freight costs in check, companies are implementing technology solutions that support corporate-wide transportation optimization, on-line collaboration, and on-demand information sharing.”

“Marketplace forces are requiring shippers to change their processes to address reduced supply, higher costs, and increased competitiveness in transportation,” said Dan Dershem, president of LeanLogistics. “Future success will require new, collaborative relationships with customers and transportation suppliers, functionality that is inherent in LeanLogistics On-Demand TMS™ -- the fastest, most certain method of reaching best-in-class performance.”

Aberdeen Group performed an extensive logistics study of manufacturers, distributors, and retailers to identify emerging best practices for transportation management and to provide benchmark frameworks for three levels of users -- laggards, industry norm, and best-in-class. The study found that best-in-class companies often can reduce their transportation spend as a % of sales by 2 to 3 percentage points. LeanLogistics On-Demand TMS™ helps companies lower their transportation costs without requiring a huge upfront investment. LeanLogistics’ hosted solution minimizes total cost of ownership, speeds time to benefit, and reduces risk. Aberdeen Group reported that the on-demand system option, with its monthly subscription fee, helps companies with constrained IT resources or capital expenditure budgets.

The study reported that many companies are concerned about the availability of freight capacity. One of LeanLogistics’ customers, Orange Glo International, is profiled in the report on how they secure capacity by being carrier friendly. This “ease of business” program makes Orange Glo a preferred, low-cost customer for carriers. Their initiatives include paying carriers faster and giving them more advance notice on short-term and near-term capacity requirements. Using On-Demand TMS™, creating and tendering loads is now quick and efficient, and chances to combine orders into loads are identified frequently. All carriers use the Web to accept tenders and enter appointment times and actual times for pick-ups and drop-offs. LeanLogistics WebSettle^® functionality provides efficiency in the freight payment process. When a carrier accepts a load, they accept the rate of the load. Any changes to the cost of this load, accessorials, or fuel surcharges are stored in On-Demand TMS™, making settlement of the freight bill also an audit.

Providing visibility of shipments to all interested parties was identified in the study as the top pressure for improving transportation processes. There is increased internal and customer demand for accurate delivery status. LeanLogistics’ LeanAdvisor^® proactively notifies shipment owners and authorized third parties of key events and exceptions.

The research report by Aberdeen Group is entitled “New Strategies For Transportation Management” and was co-sponsored by LeanLogistics. Download the report from:

http://www.aberdeen.com/summary/report/other/transportation_092904.asp?spid=

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About LeanLogistics^®, Inc.

LeanLogistics meets the latest needs of major shippers of goods with its far-reaching, web-native Transportation Management System -- On-Demand TMS™. Customers reduce their transportation cost and increase efficiency with a typical payback of less than one year – Return on Cash™.

Customers select LeanLogistics On-Demand TMS™ to optimize shipping, addressing new and old challenges, such as obtaining carrier coverage, managing ever-changing networks, controlling inbound freight, creating continuous-move opportunities, and settling Freight Bills quickly and accurately.

On-Demand TMS™ is a strategic, end-to-end solution. Its functionality includes: Procurement, Planning and Optimization, Execution Management, Financial Settlement, and a competitive Electronic Marketplace that promotes intense information sharing for synergies that benefit all trading partners.

LeanLogistics hosts its On-Demand TMS™ in a robust computing environment accessible from any Web browser. Customers maximize ROI with little or no Information Technology (IT) expense. The technology easily integrates with leading ERP (Enterprise Resource Planning), Warehouse Management Systems (WMS), and Order Management Systems (OMS).

LeanLogistics’ customers include companies such as Unilever, Barilla America, Dean Specialty Food, PepsiAmericas, and Meijer. LeanLogistics was founded by veterans of transportation and third-party logistics (3PL). It is a privately held corporation with headquarters in Holland, Michigan. For additional information, visit http://www.LeanLogistics.com or call 616.738.6400.

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LeanLogistics^®, LeanAdvisor^®, and WebSettle^® are registered trademarks of LeanLogistics, Inc.; On-Demand TMS™ and Return on Cash™ are trademarks of LeanLogistics, Inc. Trademarks or registered trademarks are the property of their holder.