ELKRIDGE, MD, Mar 20, 2008 -- While outsourcing to other countries may reduce manufacturing costs, companies are starting to realize that overall supply chain costs may increase. A recent report by AMR Research reveals that while 90% of surveyed goods producers have outsourced production -- frequently offshore to developing economies such as China, India, and Korea -- 56% of the responders say that the total landed cost of the goods had actually increased. Among the hidden costs that drive up the final price of goods are rising fuel costs and higher inventory holding costs due to the longer distance and unplanned air freight. One way to offset these supply chain costs is near-sourcing: balancing the benefits of lower-cost manufacturing with shrinking the distance of supply source to the markets served.
Brian Flood, President of Last Mile Logistics Group (OTCBB: LMLG), points out, "It's easy for the scale of an overseas supply chain to overwhelm supply chain managers, given the number of variables involved and associated costs. Near-sourcing can mitigate the supply chain risks of delays at crowded ports, expedited transportation costs, obsolescence and variable overseas quality and counterfeiting.";
While near-sourcing for the U.S. market may involve looking at closer countries such as Mexico and Latin America, another component is analyzing the in-country distribution network to improve local market access. Flood continues, "Outsourced manufacturing may be a permanent supply chain solution for some companies, especially if the inbound supply chain is well-managed. Near-sourcing solutions that include outsourcing to regional 3PL companies to improve access to the markets that a business sells in is one component that can reduce costs and enhance customer service. Last mile 3PL providers with local distribution capabilities like LMLG offer a crucial part of a near-sourcing strategy, and with our Logistics Value Added (LVA(R)) financial measurement, we can show businesses in simple financial terms the benefit that near-sourcing through the use of a regional 3PL can provide."
About Us
Last Mile Logistics Group, Inc. (OTCBB: LMLG) is a third party logistics provider (3PL) focused on servicing the "last mile" of transportation to customers. Companies outsource all aspects of the delivery order process to LMLG: local storage, scheduling, inside delivery, assembly and removal of packaging.
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Several of these risks and uncertainties are delineated in the company's filings with the Securities and Exchange Commission, which can be accessed at www.sec.gov. Actual events or results could differ materially from the Company's expectations and projections.
Contact:
Last Mile Logistics Group
Investor Relations
Contact Phone: 301.931.1771
Fax: 301.937.6810
