Presentation is loading. Please wait.

Presentation is loading. Please wait.

Florida STC 991-160-11-2: Statewide and Global Courier Services Training Overview Supported by.

Similar presentations


Presentation on theme: "Florida STC 991-160-11-2: Statewide and Global Courier Services Training Overview Supported by."— Presentation transcript:

1 Florida STC : Statewide and Global Courier Services Training Overview Supported by

2 WebEx “Housekeeping” Once again, to prevent background noise and assure sound quality for all participants, please press *6 to mute your phone, and #6 to un-mute, or use your phone’s mute button. Please do not use your phone’s hold feature. Submit questions any time by using the Chat Box feature in the lower right-hand corner of the WebEx screen. We’ll have a formal Q/A wrap-up at the end of our presentation. 2

3 Agenda How we came to the new contract. Why! Historical Overview New Contract Award Vendors Deliverables Contract Overview Benefits of new contract. Contract Benefits Cost Saving Tips & Ideas Any Questions? Contact Information Questions / Contact Us 3 Ways to reduce cost.

4 Historical Contract Overview Courier Services Contract began Aug. 13, This contract included county-based couriers for same day service and FedEx for statewide and global. On November 12, 2010 – Terminated for Convenience FedEx end date January 30, 11:59 pm. On November 17, 2010 – New Contract solicitation launch. Awarded on December 20, 2010 to both FedEx and UPS Contract Signed by the contractors January 13,

5 Contract Overview New State Term Contract No.: Term 5 years with 5 years renewal. Contract Date: January 31, 2011 – January 30, Two Awarded Vendors: FedEx and UPS Each State Agency has the option to choose either Contractor for services. FedEx account numbers should not change. 5

6 Contract Information: STC Web page:  Discount Summary  Vendor information  Price Sheets  Full Contract  Contract Manager Information 6

7 Contract Overview 7 Air Express TermsTime of DeliveryFedExUPS Next Day First Delivery8:30 a.m.First OvernightAir Early AM Next Business Day AM10:30 a.m.Priority OvernightNext Day Air Next Business Day PM3:30 p.m.Priority StandardNext Day Air Saver 2nd Business Day PM3:30 p.m.2 nd Day2 nd Day Air 3rd Business Day3:30 p.m.Express Saver3 rd Day Select MONEY BACK GUARANTEE: if packages are not delivered within 5 minutes of the chosen Service Level.

8 Two Vendors Declared Value 50 percent less than standard. Estimated Reduction of $50,000 per year. Fuel Surcharge CAPs: Ground 6 percent and Express 10 percent. Estimated Reduction of $150,000. Better than State of New York Pricing in most areas. Major reductions than current contract pricing Savings Models 8 Contract Benefits

9 9 Savings Model – First Overnight Next Day First Delivery – By 8:30 a.m. Current FedEx UPS Best Value Percent Difference Best Value Percent Difference Zone Weight Letter $ $ $ $ $ $ Fed Ex0.00% Fed Ex0.00% 1 $ $ $ $ $ $ Fed Ex0.00% UPS1.90% 2 $ $ $ $ $ $ Fed Ex0.00% UPS2.99% 3 $ $ $ $ $ $ UPS0.14% UPS3.67% 4 $ $ $ $ $ $ UPS1.09% UPS4.30% 5 $ $ $ $ $ $ UPS1.20% UPS4.81%

10 10 Savings Model – Next Day AM Next Business Day AM – By 10:30 a.m. Current FedEx UPS Best Value Percent Difference Best Value Percent Difference Zone Weight Letter $ 6.50 $ 5.56 $ 5.74 $ 5.50 $ 5.68 UPS15.38% UPS12.60% 1 lb pak $ 6.50 $ 8.14 $ 5.95 $ 7.90 $ 5.56 $ 7.38 UPS14.54% UPS9.32% 2 lb pak $ 6.50 $ 8.86 $ 6.07 $ 8.60 $ 5.68 $ 8.03 UPS12.58% UPS9.42% 1 $ 6.50 $ 8.14 $ 5.95 $ 7.90 $ 5.56 $ 7.38 UPS14.54% UPS9.32% 2 $ 6.50 $ 8.86 $ 6.07 $ 8.60 $ 5.68 $ 8.03 UPS12.58% UPS9.42% 3 $ 7.06 $ 9.40 $ 6.84 $ 9.12 $ 6.40 $ 8.52 UPS9.35% UPS9.33% 4 $ 7.60 $ 9.85 $ 7.36 $ 9.54 $ 6.88 $ 8.92 UPS9.43% UPS9.45% 5 $ 7.69 $ $ 7.45 $ 9.96 $ 6.97 $ 9.30 UPS9.35% UPS9.45%

11 11 Savings Model – Next Day PM Next Business Day PM – By 3:30 p.m. Current FedEx UPS Best Value Percent Difference Best Value Percent Difference Zone Weight Letter $ 6.50 $ 4.85 $ 5.16 $ 5.25 FedEx25.38% FedEx25.38% 1 lb pak $ 6.50 $ 6.82 $ 5.51 $ 6.36 $ 5.25 $ 6.12 UPS19.23% UPS10.23% 2 lb pak $ 6.50 $ 7.23 $ 5.51 $ 6.73 $ 5.30 $ 6.48 UPS18.42% UPS10.43% 1 $ 6.50 $ 6.82 $ 5.51 $ 6.36 $ 5.25 $ 6.12 UPS19.23% UPS10.23% 2 $ 6.50 $ 7.23 $ 5.51 $ 6.73 $ 5.30 $ 6.48 UPS18.42% UPS10.43% 3 $ 6.50 $ 7.65 $ 5.51 $ 7.12 $ 5.30 $ 6.86 UPS18.42% UPS10.35% 4 $ 6.50 $ 8.16 $ 5.85 $ 7.60 $ 5.63 $ 7.31 UPS13.42% UPS10.41% 5 $ 6.50 $ 8.26 $ 6.00 $ 7.70 $ 5.78 $ 7.41 UPS11.03% UPS10.30%

12 12 Savings Model - 2 nd Day Express Air 2nd Business Day –By 3:30 p.m. Current FedEx UPS Best Value Percent Difference Best Value Percent Difference Zone Weight Letter $ 6.50 $ 5.03 $ 4.53 UPS30.31% UPS30.31% 1 lb pak $ 6.50 $ 6.82 $ 5.03 $ 4.53 UPS30.31% UPS33.58% 2 lb pak $ 6.50 $ 7.23 $ 5.03 $ 4.53 UPS30.31% UPS37.34% 1 $ 6.50 $ 6.82 $ 5.03 $ 4.53 UPS30.31% UPS33.58% 2 $ 6.50 $ 7.23 $ 5.03 $ 4.53 UPS30.31% UPS37.34% 3 $ 6.50 $ 7.65 $ 5.03 $ 4.53 UPS30.31% UPS40.78% 4 $ 6.50 $ 8.16 $ 5.03 $ 4.53 UPS30.31% UPS44.49% 5 $ 6.50 $ 8.26 $ 5.03 $ 4.53 $ 4.56 UPS30.31% UPS44.79%

13 13 Savings Model – 3 rd Day Express Air 3rd Business Day –By 3:30 p.m. Current FedEx UPS Best Value Percent Difference Best Value Percent Difference Zone Weight Letter $ 6.50 $ 4.98 $ 4.30 UPS33.79% UPS33.79% 1 lb pak $ 6.50 $ 6.82 $ 4.98 $ 4.30 UPS33.79% UPS36.90% 2 lb pak $ 6.50 $ 7.23 $ 4.98 $ 4.30 UPS33.79% UPS40.48% 1 $ 6.50 $ 6.82 $ 4.98 $ 4.30 UPS33.79% UPS36.90% 2 $ 6.50 $ 7.23 $ 4.98 $ 4.30 UPS33.79% UPS40.48% 3 $ 6.50 $ 7.65 $ 4.98 $ 4.30 UPS33.79% UPS43.75% 4 $ 6.50 $ 8.16 $ 4.98 $ 4.30 UPS33.79% UPS47.26% 5 $ 6.50 $ 8.26 $ 4.98 $ 4.30 $ 4.33 UPS33.79% UPS47.55%

14 14 Savings Model – Ground Ground Current FedEx UPS Best Value Percent Difference Best Value Percent Difference Zone Weight $ 3.68 $ 3.72 $ 3.27 $ 3.28 UPS11.14% UPS10.87% 2 $ 3.68 $ 3.72 $ 3.28 $ 3.29 UPS10.87% UPS10.60% 3 $ 3.68 $ 3.72 $ 3.29 $ 3.30 UPS10.60% UPS10.33% 4 $ 3.68 $ 3.71 $ 3.72 $ 3.30 $ 3.32 UPS10.33% UPS10.51% 5 $ 3.68 $ 3.76 $ 3.72 $ 3.31 $ 3.46 UPS10.05% UPS7.98%

15 Cost Saving Tips and Ideas Combine shipments to the same address: Example : a person in Tallahassee sends average 10 individual pieces of mail a day to Jacksonville. Coming from the same person and signed by the same person each one pound Priority Standard (FedEx Term) 15

16 Cost Saving Tips and Ideas Papers should not normally have declared value Example : Sending of Checks with declared value: 16

17 Cost Saving Tips and Ideas Avoid using First Overnight Example First Overnight costs $42 for the letter pack: From Tallahassee to Anywhere in the State: 17

18 Cost Saving Tips and Ideas Use Ground Not Express in State 18 25% in a monthReduction of Express Estimated Savings per Month Estimated Savings per Year Total Express Air Shipments $68,492.46$22,085.98$265, nd Day$17,950.43$3,955.82$47, rd Day$2,243.24$177.41$2, First Overnight$4,377.34$4,012.40$48, Next Day PM$17,428.72$3,490.38$41, Next Day AM$26,492.73$10,449.97$125,399.67

19 Cost Saving Tips and Ideas Use on line shipping tools provided at: 19 No Ground on Hand Written Tickets

20 Cost Saving Tips and Ideas Use on line shipping Saves time - about 2 minutes per package. That can calculate to savings with 20,000 packages 2 minutes extra per per minute - $12/hr. Savings of $8,000/month or $96,000/year. Saves money online 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. 20

21 21 Contract Resources

22 Questions: 22

23 23

24 Team Member Phone Number Contract Manager MFMP BuyerHelp MFMP F&A Analyst MFMP Communications Analyst MFMP Operations Manager State Purchasing (850)


Download ppt "Florida STC 991-160-11-2: Statewide and Global Courier Services Training Overview Supported by."

Similar presentations


Ads by Google