Spinoff Logistics

Full pitch deck:  https://spinofflogistics-my.sharepoint.com/:b:/p/mweksel/EYUCsqYlMhNIt6jFn3qcSrIBo3luvqLckLTFav7b6eIxGg?e=feQ15i

Summary:
At Spinoff Logistics, we are establishing a different way of doing Less-Than-Truckload (LTL) trucking.  We call it the DMMN® Network, mostly because it is more fun to say than Direct Mid-Mile Network.  The DMMN® Network solves a lot of problems facing LTL shippers.  It reduces ship time by up to 70%, improves visibility while in transit, minimizes shipping claims, and removes invoice surprises.  We do this through superior logistics/tech, operating fixed-schedule lanes, owning our own trailers, minimizing touch points, entering long-term contracts with dedicated 3rd-party driver teams (with their own power units), and renting cross dock facilities.

 

Less-than-truckload trucking in the US is plagued by lousy service, long transit times, high claims, unpredictable final billing, and lack of visibility.  This is a function of the way LTL trucking is structured and operated by existing industry players.  Freight is picked up, moved from facility to facility, racked and unracked, until it is finally staged in a facility that allows freight consolidation and items to move toward final destination.  Shippers often have no idea where their freight is during this process, who has handled it, or the exact date it will arrive.  The constant racking and unracking and movement from facility to facility drives high claims and long transit times.

 

The DMMN® Network uses advanced proprietary tech to consolidate freight using a single hub.  Freight is not racked; it is moved along on a cross dock to trailers staging to move to final destinations.  Each of our lanes will be equipped with three trailers: one at each of the cross docks and one in transit.  In-transit power unit arrives at hub, drops trailer, hooks to return trailer and starts back to originating cross dock.  We leave on a set schedule when promised, arrive when promised, provide visibility (all our trailers GPS tagged) and minimize billing surprises.  

 

Initially, we are connecting LA, Vegas, Chicago, Newark, Orlando, and Dallas through a hub in Nashville for shippers moving high-value, high-density freight.  The DMMN® Network includes owned trailers, dedicated independent driver teams with their own power units, rented cross dock space and services, and proprietary software systems.  Building a proprietary mid-mile network with minimal investment in assets.

 

This combination of adding uniquely operated freight capacity through the DMMN® Network coupled with our tech platform automating customer account management and shipping reservations, enhancing capacity utilization and planning, and digitally integrating and managing the 3rd party delivery providers enabling freight injection services into and final-mile delivery from the DMMN® Network will elevate service expectations of LTL shippers and propel growth.

 

We project the company to aggressively grow revenues with profitability reached within 12 months of funding.

Management:
Michael Weksel, CEO: https://www.linkedin.com/in/michaelweksel/
Ravi Ramakrishnan, CTO: https://www.linkedin.com/in/ramakrishnan/
Valerie Cameron, COO: https://www.linkedin.com/in/vecameron/

The last time I (Michael Weksel) founded a logistics company was in the late 90's. The company was LogistiCare which is now a billion dollar public company (name changed to ModivCare). I saw a similar opportunity there that I see here: the industry was servicing the customer poorly and better systems and structure would allow for greater accountability, ease of use, lower cost for payors, and strong profit potential. Specifically, LogistiCare centralized call intake, dispatching, routing, safety management, vendor oversight, and network management in the non-emergency transportation space. Our customers were HMOs and state agencies responsible for the transportation of Medicaid recipients to and from doctors' offices. We outsourced most transportation and related functions and made profits with superior tech that allowed us to enhance quality, efficiency and customer service. Since LogistiCare, I've undertaken many additional entrepreneurial and operational roles in logistics and other industries. My team has strong domain expertise with decades in logistics, mid-mile, final-mile, shipping, and related technology, and are energetically enthused by this opportunity. Plus, they are good people. We've been planning for some time and are ready to rip.