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HISTORY
The LSI Group (recently Logistic Services, Inc. and originally named Distribution Service, Inc.) began when a group of warehouse owners met in Chicago, Illinois, in 1922 to forge a national advertising and sales group from a base of independent warehouse and trucking providers. These insightful entrepreneurs recognized that the cost of marketing to medium and large national manufacturers was prohibitive for small regional companies. They knew that these companies needed regional 3PL providers but without without national advertising they would not have the opportunity to bid these lucrative prospects. They realized that failing to address this larger marketplace on a continuous basis would limit their growth potential. With this clear mandate, they defined their business operating goals, and then structured a company devoted to advertising, marketing and soliciting on behalf of the independent regional warehousing members.
REALITIES
What was true in 1922 is just as true today; regional warehouses need national sales effort if they are to increase their individual revenues. But to be successful in any sales effort, it must be a sustained, long-term program because of the very nature of the logistics industry. What is unique to the warehousing and distribution industry is that the demand for space and 3rd party services is determined by the manufacturers? sales location requirements, and not by the provider's costs or capabilities. Simply stated, the logistics industry is a reactive industry where the national demand for space or services is not influenced by regional supply. Therefore, to be effective in generating sales opportunities for our members we must insure that LSI's advertising and marketing efforts continuously place our members infront of prospects so that when the demand arises they will look to an LSI facility.
OBSTACLES
The most formidable obstacle for the founders of LSI to overcome was that of competition. To solve this problem a consensus was reached restricting membership based on population within each regional market. This would insure that no area would be saturated with too many companies receiving the same lead information. Focused on a singular goal, resolved of this common concern, LSI was incorporated as a collective market and sales group that was comprised of member companies located throughout the United States.
THE NEXT CENTURY
Since 1922 the mandate for LSI. has remained the same; we function exclusively as a representative for our member companies. But during the ensuing 80+ years the warehousing and distribution industry has had to expand the scope of services provided in response to ever-changing consumer demands. In response to these changes LSI is now a full service Advertising and Sales group representing logistic professionals that provide a broad range of value-added services in addition to public and contract warehousing.
What began as a small national sales group engaged in personalized direct sales has become an international Advertising and Sales organization utilizing print media, telemarketing, internet and industry specific advertising to keep the membership that is LSI in the forefront of the industry.
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