Inbound Supplier Freight Costs $1.5B Industry Cost Cost Reduction Opportunity $500M Savings No Barrier to Entry Easy to Implement No Cost or Fees

FDSI’s Program Stops your Suppliers from Profiting on Freight FDSI Provides your Hospital with Deep Carrier Discounts FDSI Reduces your Hospital’s Premium Air Service Costs FDSI Provides Shipment Visibility Reporting Tools FDSI Provides an End to End Solution FDSI’s Inbound Supplier Freight Cost Reduction Solution

Experienced Transportation Professionals Customer Oriented Technology Solutions Multi-Modal Quality Carrier Network

FDSI Experienced Transportation Professionals Transportation & Operations Specialists Customer Service Coordinators Information Technology Specialists Freight Audit & Payment Department Hospital On-Site Consulting Dispatch

Visibility Manageability Measurability Accountability = Optimum Savings Cost Reduction FDSI Core Technology Provides

Reduce Premium Air Transportation Costs Supplier Shipment Consolidation 1,300+ Compliant Suppliers Carrier Freight Audit & Payment Process Hold Department Accountable for Freight Costs Establish Freight Cost Budget Shipment Visibility Reporting Carrier Least Cost Shipping Options

A Variety of Quality Carriers Air, Ground, Ocean or Rail Less Than Truck Load (LTL) Full Truck Load (FTL) Vanline Flatbed Riggers Provide Deep Carrier Discounts

Over 1,350 Compliant Suppliers Equals 60-70% of Inbound Supplier Freight Costs FDSI’s Goal is 100% Compliance* Aggressive Pursuit of Major Non-Compliant Suppliers *Abbott, Alcon Laboratories, Boston Scientific, Depuy Orthopedics, GE Medical, Johnson & Johnson, Ortho Clinical Diagnostics, U.S. Surgical

A Bills received by FDSI via mail or EDI B Data is processed through automated filters that flag dups, gross errors, missing data for human review C Corrections are made and database is updated E Tariff/Pricing and PO numbers are checked for validity. Database is updated with correct PO/SO or revised charges. F GL Coding is performed H Weekly batches are Created and funds requested by FDSI I Client funds FDSI via wire or check and FDSI sends out carrier payments D Physical bills or EDI files are forwarded to auditors G Bill is flagged in database as “OK to pay” and electronic approval process is performed

Monthly and YTD Visibility of all Incoming Shipments Provides: Supplier Origin Shipping Locations by Carrier Zone Identification of High Volume Suppliers that Ship Every Day Breakout of Premium Air vs Ground Shipments Identifies Opportunities to Reduce Premium Air Shipments Supplier Shipment Consolidation Option A Virtual Blueprint for Shipping Smarter

Reduce Premium Air Service Transportation Costs by 20-30% 70% of Inbound Shipments Move via Airfreight Direct from the Manufacturer/Supplier 50% of the Premium Air Service Shipments are not Consumed the Day they are Delivered Selective Mode Shifting of Priority to Standard, Standard to 2nd Day and 2nd Day to Ground will Generate an Additional 20-30% Cost Savings

Summary by Service Type YTD For 01/01/ /08/06 Savings % of Total FDSI Price List PriceShipmentsService Type $13, %$44,988.49$58, Priority 2, %7, , Std Overnight 3, %15, , nd Day %6, , Express Saver %8, , Ground (0.63)2%1, , First Overnight $21, $29,654.63$84,203.91$105, Grand Total

Service Change Analysis vs

Track and Trace Shipments Request Route Guides Rate Shop/Submit Rate Requests Look Up Freight Bills Submit Claims Review Claim Status Create/Request Custom Reports or Queries

FDSI Manages Your Inbound Freight Stops the Capital Equipment Suppliers from Profiting on your Inbound Freight Reduces Inbound Capital Equipment Freight Costs by 25-50% Establishes a Freight Cost Budget for the Project Manager Schedules All Supplier’s Shipments to the Hospital Construction Site Consolidates Supplier Shipments Audits, GL Codes and Allocates to the Dept. Level All Supplier Inbound Freight Shipments Provides the Project Manager with Monthly Freight Savings Reports

Estimated Costs: Radiology Lab Total Construction Capital Equipment Inbound Supplier Freight FDSI Compliant Supplier Match Inbound Supplier Freight Savings $100M $30M $3M $1.5M $375K

O & MCardinalHLS FDSI Description UnknownYes No Program Costs/Fees Unknown<600 1,350+ Number of Compliant Suppliers <2<5 21 Years Providing Inbound Supplier Logistics Programs Unknown Yes 100% PO Matching, GL Coding, Department Level Allocation and Unlimited Reporting Services No Yes Provides Summary and Detail Shipment Visibility Reporting and Consulting Services No Yes Provides Management of Capital Equipment Construction Projects No Yes Provides an Interactive Website for Shipment, Tracking and Tracing, Rate Comparisons, Rate Requests, Route Guides, Submitting Claims and More Unknown Yes Provides Multiple Mode and Carrier Services No Yes Provides On-Site Internal Delivery Consumption Analysis No Yes Cargo Claims Management Inbound Frt Cost Reduction Program Comparison