© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks.

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Presentation transcript:

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. 5 ways to drive maximum savings with your freight management program An educational event sponsored by OptiFreight ® Logistics Marc Mullen Vice President/General Manager, OptiFreight ® Logistics May 12, 2015

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Marc Mullen Vice President/General Manager OptiFreight ® Logistics 2

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Mike Walker System Director, Centralized Purchasing 3

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. What we’ll reveal today Why close collaboration is essential to success 5 ways to drive maximum savings How to identify a strong freight management program 4

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. What is freight management? 5 Discounted rates Volume savings on shipping See your spend to save even more

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. The power of collaboration 6 The stronger our collaboration, the greater your success

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Discounted rates are just the beginning 7 RateSavings Discounted rates Managed freight volume Continuous improvement Overall freight management value

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. The difference program participation makes 8 Range of opportunity* compared to carrier list price $39,678$107,034 No data exchange Limited compliance No outbound services Only certified inbound volume Participate in all service offerings: inbound, outbound and LTL Participate in data exchange Include a PO Comment for maximum program participation *Based on internal OptiFreight ® Logistics data analysis – savings compared to list price.

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Presence Health 9 $713,161 saved* 12-month results compared to carrier list price *Based on Presence Health data -- list price comparison: April 2014 through March 2015.

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. 5 ways to drive maximum savings 10 1 Supplier participation Employee participation Mode optimization Large freight Advanced analytics

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. 1 5 ways to drive maximum savings 11 Maximize supplier participation Provide freight history Include a PO Comment every time Communicate with suppliers

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. 1. Maximize supplier participation 12 Share data with freight management program Review every invoice over $50 Pressure three ways: you, freight management program and GPO Most suppliers aren’t going to pursue the savings for you! 47%* average savings per package *Presence Health saved an average of 47% per inbound package through OptiFreight® Logistics from January 1, 2014 to December 31, Individual customer savings may vary.

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. 5 ways to drive maximum savings Improve employee participation Promote education Use an online portal 13 2

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. 2. Improve employee participation 14 Look at every single freight bill Send employee “reminders” Make it part of your culture 42% average savings per package *Presence Health saved an average of 42% per outbound package through OptiFreight® Logistics from January 1, 2014 to December 31, Individual customer savings may vary.

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. 5 ways to drive maximum savings Increase mode optimization How suppliers and employees can save you even more The key to mode optimization 15 3

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. 3. Get in the zone and save even more 16 Next day delivery as overnight — but at ground service rates! *Map is a representation of a transit map Ground Service area. Estimated delivery times may vary by individual supplier.

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. 5 ways to drive maximum savings Remember your large freight Save on capital improvements Save on new equipment More keys to savings 17 4

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. 4. Remember your large freight 18 Drive as much volume as possible Focus on capital equipment Pick up the phone 35% average savings per shipment *Presence Health saved an average of 35% per large freight shipment through OptiFreight® Logistics from January 1, 2014 to December 31, Individual customer savings may vary.

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. 5 5 ways to drive maximum savings Use advanced analytics Gain full visibility Benchmark performance Leverage Big Data Reveal the way to hidden savings 19

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. 5 ways to drive maximum savings 20 1 Supplier participation Employee participation Mode optimization Large freight Advanced analytics

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. “Must-haves” for your freight management program 21

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. “Must-haves” for your program 22 Program scale and reach Healthcare industry expertise Advanced data and analytics

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Why OptiFreight ® Logistics? 23

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Making a real cost difference 21,000 active facilities* 2,000 healthcare providers* 24 $200 million saved in 2014* 11.5 million shipments* Source: *Based on shipments through OptiFreight ® Logistics from January 1 through December 31, Individual savings may vary.

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Three ways we deliver 25 Expertise and proactive support Visibility and control A comprehensive program

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. OptiFreight ® Logistics: Program scale and reach Full breadth of services across the continuum of care 26 Serving multiple customers PharmacyLaboratorySurgery centerPhysician officeHome HealthLong-term careBlood and tissue bank Global Hospital Government Veterinary Academic Small parcelInternationalAnalytics/reportingHazardousWhite gloveHome delivery Temperature sensitive Large freight Logistic solutions (inbound and outbound)

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. OptiFreight ® Logistics: Advanced data and analytics Visibility and control Proprietary data analytics Shipping service trends Benchmark your program performance Advanced outbound shipping tool Customized program reporting 27

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Expertise and proactive support 28 OptiFreight ® Logistics IT Implementation Customer care Vendor relations Logistics solution Analytics management Account managers

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Q&AQ&A Mike Walker, Presence Health Marc Mullen, Cardinal Health OptiFreight ® Logistics phone: option 1 29

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners. Thank you! 30