LSO - Regional Shipping Services Revenue and Competitors

Lone Star Overnight (LSO) focuses on reliable overnight delivery utilizing both air and ground transportation, within and between Texas and Oklahoma. LSO's price structure allows for up to a 55% savings over the national carriers based on lower operating costs within a regional service area. Nearly all of the basic overnight services currently being offered by national carriers, such as FedEx and UPS, have been combined by LSO into a regionally relevant "package." This "package" fills a niche market made up of consumers clearly looking for reliable "next day" shipping options. Services have been carefully chosen and offered based on an unprecedented ability to provide those services with a high level of precision in addition to a materially lower cost when compared to the national carriers. LSO's basic services include next day delivery by 8:30 A.M., 10:30 A.M., 3:00 P.M., End Of Next Business Day, and Saturday Delivery. (Delivery commitment may be later in some areas.) All deliveries are guaranteed to be on time or you get your money back. LSO offers hundreds of convenient drop box locations throughout its service area, an additional declared value option, toll-free customer service, on-line shipping, free shipping supplies for priority services, up to a 150 lbs capability per Priority package and up to 70 lbs for Ground shipments. On March 4th, 1991, LSO began operations by transporting seven packages through its system. Each package arrived at its respective destination on time setting a precedent for the years to come. Since that date, LSO has continued to move important business documents and packages throughout its service area, constantly refining one of the most reliable overnight delivery systems available in the industry today. LSO's distinctive structure eliminates the need for what is known in the transportation industry as a "hub and spoke" system. All LSO packages are sorted and routed at the point of pick-up rather than first being transported to a central sorting facility. Simply stated: the lower overhead resulting from the elimination of a traditional "hub" system effectively reduces the cost of shipping a package with LSO and increases LSO's "on-time" delivery rate which is consistently ranked at about 99.6%. Also, fewer vehicle transfers and miles traveled per package drastically lower the probability of damage or loss to shipments. LSO culture incorporates employee incentives designed to motivate individuals to promote growth and development of the company. All team members are encouraged to put forth ideas and processes that will improve overall productivity, morale and customer satisfaction. LSO credits this incentive program with statistically low package claims, an outstanding driving safety record with four million LSO miles being driven each year and an impressive customer referral rate. LSO is managed on a large company scale emphasizing "small company" values and dedication to the customer that is often de-emphasized by many companies in recent years. This winning strategy coupled with an outstanding workforce has produced both growth and profit each year since break-even in 1993. In 1996, LSO was highlighted by Inc. 500 magazine as one of the fastest growing, privately held companies that year. Lone Star Overnight continues to move forward providing outstanding service to customers, employment and promotion opportunities to its people and a company culture based on honesty, integrity and hard work.