Statewide & Global Courier Services State Term Contract ...€¦ · Statewide & Global Courier...

transcript

May 7, 2012

Webinar

Statewide & Global Courier Services

State Term Contract

#991-160-11-2

Today’s Presenters

• Angela Caldwell, Division of State Purchasing

Associate Category Manager

Feel free to use the Webinar chat feature to submit questions.

Purpose of this Webinar

Demand Management and Other Savings Opportunities

• Contract Details

• Contract Benefits

• Demand Management Savings

• State Purchasing Website

• Q&A

Contract Details

Contract Number 991-160-11-2

Contract Type State Term Contract

Contract Term 5 Years

Expiration Date January 30, 2016

Renewals Up to five years of renewals

Where to Find Contract

http://www.dms.myflorida.com

Click on

State Purchasing

Click on State

Term Contracts

Click on Courier

Services

Click on contract

number

991-160-11-2

Contract Landing Page

Contract Benefits

• Two Vendors UPS

• Declared Value 57 percent less than standard Estimated Cost Avoidance of $50,000 per year

• Fuel Surcharge caps: Ground 6 percent and Express 10 percent

Estimated Cost Avoidance of $150,000

• Better than State of New York single award pricing in most areas

• Better than WSCA multiple award pricing non-money back

guarantee

• Better then NJPA pricing with a single award (UPS).

• 100 percent guarantee on delivery time or free

• Major reductions when compared to previous contract pricing

Times and Vendor Terms for Service

Terms Time of

Delivery FedEx UPS

Next Day First Delivery 8:30 am First Overnight Air Early AM

Next Business Day AM 10:30 am Priority Overnight Next Day Air

Next Business Day PM 3:30 pm Priority Standard Next Day Air Saver

2nd Business Day PM 3:30 pm 2nd Day 2nd Day Air

3rd Business Day 3:30 pm Express Saver 3rd Day Select

Ground Close of Business Ground Ground

Pricing Information

Next Day First Delivery – By 8:30

FedEx UPS Best Value Percent

Difference Best Value

Percent Difference

Weight 2 3 2 3 2 3

Letter $ 42.00 $ 45.20 $ 43.64 $ 46.00 Fed Ex 3.76% Fed Ex 1.74%

1 $ 45.25 $ 52.15 $ 46.04 $ 51.16 Fed Ex 1.72% UPS 1.94%

2 $ 45.90 $ 54.55 $ 46.52 $ 52.92 Fed Ex 1.33% UPS 3.08%

3 $ 48.55 $ 56.35 $ 48.48 $ 54.28 UPS 0.14% UPS 3.81%

4 $ 50.35 $ 57.85 $ 49.80 $ 55.36 UPS 1.10% UPS 4.50%

5 $ 50.65 $ 59.25 $ 50.04 $ 56.40 UPS 1.22% UPS 5.05%

Pricing Information

Next Business Day AM – By 10:30

Percent Difference

Weight 2 3 2 3 2 3

Letter $ 5.56 $ 5.74 $ 5.50 $ 5.68 UPS 1.09% UPS 1.06%

1 lb pak $ 5.95 $ 7.90 $ 5.56 $ 7.38 UPS 7.01% UPS 7.05%

2 lb pak $ 6.07 $ 8.60 $ 5.68 $ 8.03 UPS 6.87% UPS 7.10%

1 $ 5.95 $ 7.90 $ 5.56 $ 7.38 UPS 7.01% UPS 7.05%

2 $ 6.07 $ 8.60 $ 5.68 $ 8.03 UPS 6.87% UPS 7.10%

3 $ 6.84 $ 9.12 $ 6.40 $ 8.52 UPS 6.87% UPS 7.04%

4 $ 7.36 $ 9.54 $ 6.88 $ 8.92 UPS 6.98% UPS 6.95%

5 $ 7.45 $ 9.96 $ 6.97 $ 9.30 UPS 6.89% UPS 7.10%

Pricing Information

Next Business Day PM – By 3:30

Percent Difference

Weight 2 3 2 3 2 3

Letter $ 4.85 $ 4.85 $ 5.16 $ 5.25 FedEx 6.39% FedEx 7.62%

1 lb pak $ 5.51 $ 6.36 $ 5.25 $ 6.12 UPS 4.95% UPS 3.92%

2 lb pak $ 5.51 $ 6.73 $ 5.30 $ 6.48 UPS 3.96% UPS 3.86%

1 $ 5.51 $ 6.36 $ 5.25 $ 6.12 UPS 4.95% UPS 3.92%

2 $ 5.51 $ 6.73 $ 5.30 $ 6.48 UPS 3.96% UPS 3.86%

3 $ 5.51 $ 7.12 $ 5.30 $ 6.86 UPS 3.96% UPS 3.79%

4 $ 5.85 $ 7.60 $ 5.63 $ 7.31 UPS 3.91% UPS 3.97%

5 $ 6.00 $ 7.70 $ 5.78 $ 7.41 UPS 3.81% UPS 3.91%

Pricing Information

2nd Business Day –By 3:30

Percent Difference

Weight 2 3 2 3 2 3

Letter $ 5.03 $ 5.03 $ 4.53 $ 4.53 UPS 11.04% UPS 11.04%

1 lb pak $ 5.03 $ 5.03 $ 4.53 $ 4.53 UPS 11.04% UPS 11.04%

2 lb pak $ 5.03 $ 5.03 $ 4.53 $ 4.53 UPS 11.04% UPS 11.04%

1 $ 5.03 $ 5.03 $ 4.53 $ 4.53 UPS 11.04% UPS 11.04%

2 $ 5.03 $ 5.03 $ 4.53 $ 4.53 UPS 11.04% UPS 11.04%

3 $ 5.03 $ 5.03 $ 4.53 $ 4.53 UPS 11.04% UPS 11.04%

4 $ 5.03 $ 5.03 $ 4.53 $ 4.53 UPS 11.04% UPS 11.04%

5 $ 5.03 $ 5.03 $ 4.53 $ 4.56 UPS 11.04% UPS 10.31%

Pricing Information

3rd Business Day –By 3:30

Percent Difference

Weight 2 3 2 3 2 3

Letter $ 4.98 $ 4.98 $ 4.30 $ 4.30 UPS 15.81% UPS 15.81%

1 lb pak $ 4.98 $ 4.98 $ 4.30 $ 4.30 UPS 15.81% UPS 15.81%

2 lb pak $ 4.98 $ 4.98 $ 4.30 $ 4.30 UPS 15.81% UPS 15.81%

1 $ 4.98 $ 4.98 $ 4.30 $ 4.30 UPS 15.81% UPS 15.81%

2 $ 4.98 $ 4.98 $ 4.30 $ 4.30 UPS 15.81% UPS 15.81%

3 $ 4.98 $ 4.98 $ 4.30 $ 4.30 UPS 15.81% UPS 15.81%

4 $ 4.98 $ 4.98 $ 4.30 $ 4.30 UPS 15.81% UPS 15.81%

5 $ 4.98 $ 4.98 $ 4.30 $ 4.33 UPS 15.81% UPS 15.01%

Pricing Information

Ground FedEx UPS Best Value Percent

Percent Difference

Weight 2 3 2 3 2 3

1 $ 3.72 $ 3.72 $ 3.27 $ 3.28 UPS 13.76% UPS 13.41%

2 $ 3.72 $ 3.72 $ 3.28 $ 3.29 UPS 13.41% UPS 13.07%

3 $ 3.72 $ 3.72 $ 3.29 $ 3.30 UPS 13.07% UPS 12.73%

4 $ 3.72 $ 3.72 $ 3.30 $ 3.32 UPS 12.73% UPS 12.05%

5 $ 3.72 $ 3.72 $ 3.31 $ 3.46 UPS 12.39% UPS 7.51%

6 $ 3.72 $ 3.72 $ 3.32 $ 3.58 UPS 11.02% UPS 6.99%

7 $ 3.72 $ 3.72 $ 3.47 $ 3.64 UPS 10.75% UPS 3.76%

8 $ 3.72 $ 3.72 $ 3.60 $ 3.64 UPS 6.72% UPS 2.26%

9 $ 3.72 $ 3.72 $ 3.64 $ 3.64 UPS 3.23% UPS 2.26%

10 $ 3.72 $ 3.72 $ 3.64 $ 3.64 UPS 2.26% UPS 2.26%

Demand Management

Simple Definition:

Reducing what we buy and looking at our buying

patterns to identify ways to save money.

State of Florida Discounts off Standard

Service Level Averages for State of Florida

UPS FedEx

Next Day First Delivery 9% 10%

Next Business Day AM 71% 73%

Next Business Day PM 73% 74%

2nd Business Day PM 61% 60%

3rd Business Day 51% 66%

Ground 54% 51%

Demand Management Savings

Combine shipments to the same address:

Example : A person in Tallahassee sends average of ten individual, one-pound

pieces of mail a day to Jacksonville. With 10:30 a.m. delivery coming from the

same person and signed by the same person at delivery.

Not Including any additional charges:

Daily Costs Weekly Costs Yearly Cost

10 Packages $48.50 $242.50 $12,610.00

1 Combined $7.53 $37.65 $1,957.80

Savings $40.97 $204.85 $10,652.20

Avoid using first overnight delivery by 8:30 a.m. – $45

1. Delivery times between 7 a.m. – 8:30 a.m.

2. They can attempt delivery during these times.

3. Contractor not able to deliver: Delivery Reattempt Fee

4. Will not come back that day to deliver

a) Attempt re-delivery next day during same hours

Use next day a.m. delivery by10:30 a.m. – $7

1. Delivery times between 8 a.m. – 10:30 a.m.

Send overnight only Monday through Thursday, instead of Friday.

1. Contractor not able to deliver: Delivery Reattempt Fee

2. Could be charged for Saturday Delivery Service Fee

3. Friday send ground delivery by 3:30 p.m. Monday in Florida

– for most ground delivery

4. Or use second day express a.m. or p.m. on Friday for

delivery on Monday by 10:30 a.m. or 3:30 p.m.

Use on-line shipping tools provided at:

http://www.fedex.com/us/

http://www.ups.com/

No Ground on Hand

Written Tickets

Use on-line shipping:

Saves Personnel Time - about two minutes per package

Saves Money for Soft Costs:

Time can calculate to savings with 2,000 packages

Two minutes extra per package @ .20 per minute - $12/hr.

Savings of $800/month or $9,600/year

On-line system checks addresses to make sure they are

deliverable.

Each address correction adds $10 to $15 to each shipment.

No discrepancies like with handwriting errors.

Demand Management Savings Whenever Possible:

Use Ground Service within the State Instead of Express Services.

Must use on-line or phone to order, instead of handwritten

Tickets

Generally Ground Service gets to most areas next day on in-state

shipments, with deliveries by end of business day

Savings Possible per Package:

BASED ON - 1 LB

PACKAGE ZONE 3

Express Charges Ground Charges

Savings Changing

Express To Ground

(Same Carrier)

Savings Changing

FedEx Express To

UPS Ground

FedEx UPS FedEx UPS FedEx UPS UPS % Save

NEXT DAY AM (10:30) $7.90 $7.38 $3.72 $3.28 $4.18 $4.10 $4.62 58.48%

NEXT DAY PM (3:30) $6.36 $6.12 $3.72 $3.28 $2.64 $2.84 $3.08 48.43%

2ND DAY $5.03 $4.53 $3.72 $3.28 $1.31 $1.25 $1.75 34.79%

3RD DAY $4.98 $4.30 $3.72 $3.28 $1.26 $1.02 $1.70 34.14%

UPS Zone Maps FedEx Zone Maps

Ground Service areas in the State of Florida with one or two day delivery time

Contract Landing Page

How to Set up Accounts

Contract Administrator Information

Stepphone Mack Director of Strategic Accounts

400 N. Hurstbourne Parkway, #424

Louisville, KY 40223

E-mail Address: semack@ups.com

Phone Number: (502) 329-3321

Fax Number: (502) 821-1793

Government Customer Service Hotline

800-877-1497

E-mail Address: StateofFlorida@ups.com

Bobby Bledsoe Worldwide Account Manager

6625 Lenox Park Drive

Memphis, TN 38115

E-mail Address: rdbledsoe@fedex.com

Phone Number: (901) 224-2963

Fax Number: (901) 224-2960

Government Customer Service Hotline

800-645-9424

E-mail Address: govt@fedex.com

We have time for any questions.

Contact Information

• Angela Caldwell, Associate Category Manager

Angela.Caldwell@dms.MyFlorida.com

• Brenda Wells, Category Manager

Brenda.Wells@dms.MyFlorida.com

• Kevin Brown, Group Category Manager/

Bureau Chief

Kevin Brown@dms.MyFlorida.com

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