What is Transportation Cost Management? A Proven and Measured Approach Reduces Transportation Costs (between 8-15% or more) Optimizes choice for low cost.

Slides:



Advertisements
Similar presentations
Present and Future Value Translating cash flows forward and backward through time.
Advertisements

What it can do for you and your
COMMERCIAL FACTORING What it can do for you and your business…
Investment appraisal Chapter 19. Shoplifting (UK) Cost UK businesses £4.4bn / year (£4,400,000,000) More than a third of all goods stolen are by shop.
Study Unit 10 Investment Decisions. SU – The Capital Budgeting Process Definition – Planning and controlling investment for long-term projects.
Discounted Cash Flow Valuation
Discounted Cash Flow Valuation Chapter 5 2 Topics Be able to compute the future value of multiple cash flows Be able to compute the present value of.
Finance Engineering is $$$. Finance A dollar today is worth more than a dollar tomorrow: Compound Interest P 0 = principal 0 time units.
Multiple Cash Flows –Future Value Example 6.1
McGraw-Hill /Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. May 31 Capital Budgeting Decisions.
A First Look at Everything. Interest Rates and the Time Value of Money Time Value of Money ▫Imagine a simple investment opportunity with the following.
The McGraw-Hill Companies, Inc., 2000
British Columbia Institute of Technology
©2003 Prentice Hall Business Publishing, Cost Accounting 11/e, Horngren/Datar/Foster Capital Budgeting and Cost Analysis Chapter 21.
©The McGraw-Hill Companies, Inc. 2006McGraw-Hill/Irwin Chapter Ten Planning for Capital Investments.
Shipper/Carrier Network Strategies. Purpose of Network Strategies Shipper Strategy –Purchase/Manage transportation services to meet customers’ needs Carrier.
CHAPTER 6 Discounted Cash Flow Valuation. Key Concepts and Skills Be able to compute the future value of multiple cash flows Be able to compute the present.
The Time Value of Money.
A Practical Guide to Saving Money and Building the Bottom Line for Study Group Members.
CAPITAL INVESTMENT AND FINANCIAL RISK Chapter 10.
Formulas to Know: Average Inventory Month 1 + Month 2 + Month 3 Number of months.
Chapter 4 The Time Value of Money Chapter Outline
Three Reasons to Consider a Software Upgrade Presented by Amy Doughten For Blog entry on
Federal Acquisition Service U.S. General Services Administration May 6, 2010 Acquisition Reform Using Strategic Sourcing as a Tool.
Transportation Officer’s Responsibilities Bill Bardwell, Traffic Manager, Department of Veterans Affairs (202)
Copyright ©2004 Pearson Education, Inc. All rights reserved. Chapter 3 Applying Time Value Concepts.
Chapter 4 The Time Value of Money
Trinity Logistics. An Overview  What is a 3PL?  Software Applications  How Does it Work?  Why Outsource?
ECEN Winter 2015 Product Development Economics.
© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks.
Federal Acquisition Service U.S. General Services Administration Procurement Best Practices Optimizing Your Small Parcel Program March 22, 2012 Procurement.
On Target Group Coaching
CF Winter Discounted Cash Flow Valuation ch 6.
CHAPTER 12 Procurement. Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin 12-2 Four Buying Situations Routine.
© 2003 McGraw-Hill Ryerson Limited 9 9 Chapter The Time Value of Money-Part 1 McGraw-Hill Ryerson©2003 McGraw-Hill Ryerson Limited Based on: Terry Fegarty.
Federal Acquisition Service U.S. General Services Administration Procurement Best Practices Optimizing Your Small Parcel Program March 22, 2012 Procurement.
Compounding and Discounting -A Presentation to DVC Field Trip Tony Wu PG&E4/15/2008.
CHAPTER 9 Decision Strategies in Transportation. Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin 9-2 Areas in.
IB Business and Management
Chapter 6 Discounted Cash Flow Valuation 6.1Future and Present Values of Multiple Cash Flows 6.2Valuing Level Cash Flows: Annuities and Perpetuities 6.3Comparing.
Chapter 6 Investment Decision Rules
The Time Value of Money Translating Cash Flows Forward and Backward in Time.
9 October 20152Profitability Management 9 October 20153Profitability Management Revenue COGS Opex OR With ↑ Rev Opex OR With ↑ Rev.
McGraw-Hill/Irwin ©2001 The McGraw-Hill Companies All Rights Reserved 5.0 Chapter 5 Discounte d Cash Flow Valuation.
TIME VALUE OF MONEY A dollar on hand today is worth more than a dollar to be received in the future because the dollar on hand today can be invested to.
Inbound Supplier Freight Costs $1.5B Industry Cost Cost Reduction Opportunity $500M Savings No Barrier to Entry Easy to Implement No Cost or Fees.
ADTRAN: The Network Access Company. 2 Telecommunications u Multi-billion dollar industry u Voice and digital data transmission u Carrier and End User.
Slide 1 © The Delos Partnership 2005 Tesco Supply & Procurement Thinking like Tesco…
11111 Youth Money Management Learning Good Spending Habits.
World class transportation Chapter 9. Transportation system Provides opportunity for growth under competitive circumstances Facilitates companies to exploit.
Calculate Present or Future Value of Cash Flows ©
It is to decide what are the major expenditures or investments a company should make, it’s a method to judge the best investments options to create future.
Financial management: lecture 6 NPV and other Investment Criteria Capital Budgeting Decisions.
1 Capital Budgeting. 2 n Capital Budgeting is a process used to evaluate investments in long-term or Capital Assets. n Capital Assets n have useful lives.
AGEC 407 Investment Analysis Time value of money –$1 received today is worth more than $1 received in the future Why? –Earning potential –Risk –Inflation.
Customer Service & Logistics Filmco & Walmart. Components of Customer Service Before Pre-Transaction Service During Transaction Service After Post-Transaction.
Supply Processes and Technology
CHAPTER 4 BOND PRICES, BOND YIELDS, AND INTEREST RATE RISK.
Collections Accountability Leases that Terminate into Term Code TMDCR Tom Merry October 23, 2003 Week 4 Presentation.
Scientific Supply Purchases Strategic Sourcing Initiative Huron Consulting Services was engaged to evaluate cost savings opportunities with our major scientific.
C H A P T E R 7 Time Value of Money Chapter 7.
1 Chapter 5: Essential Formulae in Project Appraisal A Coverage of the Formulae and Symbols Used to Evaluate Investment Projects.
Consulting & technology financial services | payments | government | transportation | healthcare Managed Inbound Transportation 4 th Annual Government.
Decision Analysis & Decision Support Systems: DADSS Lecture 2: Introduction to Time Value of Money John Gasper.
DADSS Lecture 3: Using Excel with Time Value Calculations John Gasper.
© 2014 SunPower Corporation | Confidential | 1 © 2014 SunPower Corporation | Confidential Reducing Reverse Logistics Costs Andrew Katcher SunPower Global.
Used third party GPO contracted provider until November 2012 Third party vendor contracted with FedEx and we utilized their Fedex account. All freight.
Evaluating your Fuel Card Options
11/7/2018.
Agenda Freight Analytics in PayPort Express Standard Reporting
Presentation transcript:

What is Transportation Cost Management? A Proven and Measured Approach Reduces Transportation Costs (between 8-15% or more) Optimizes choice for low cost carrier selection and service modes Improves Cash Flow (4-8% additional savings) Uses detailed analytics to ensure continued savings

3 Years and $15MM to build proven approach focusing on 4 Key Drivers for Total Cost Management Developed Contracted Rates with Multiple Carriers utilizing single rate base Web-based carrier selection tool for lowest cost, best service decisions on each shipment Recapture lost cash flow with 40 point visual pre- audit/freight payment process Utilize analytical data to ensure measured success and highlight areas for improvement Management Reporting Audit & Freight Payment Optimize Carrier Selection Volume Discounted Pricing TransportationCostManagement Why Capital Transportation Logistics?

Next Steps to consider: Determine baseline of current costs (No Cost Analysis) Use volume leverage to negotiate contracted carrier discounts Focus on best choice carriers for your specific transportation needs Perform visual audit to ensure accuracy on all freight bill charges Use management reports to verify compliance and potential opportunities for additional savings

Why move forward immediately? Assume a $1.0 million dollar annual freight spend A 12% savings would return $120,000 immediately to your bottom line. If you wait 1 week to begin implementing you have lost $2,500 If you wait 1 month to begin implementing, you have just lost $10,000 Recover that money today! Let us evaluate 1 months’ worth of your freight bills to demonstrate a proven level of measured savings.