May 7, 2012
Webinar
Statewide & Global Courier Services
State Term Contract
#991-160-11-2
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Today’s Presenters
• Angela Caldwell, Division of State Purchasing
Associate Category Manager
Feel free to use the Webinar chat feature to submit questions.
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Purpose of this Webinar
Demand Management and Other Savings Opportunities
• Contract Details
• Contract Benefits
• Demand Management Savings
• State Purchasing Website
• Q&A
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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
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Where to Find Contract
http://www.dms.myflorida.com
Click on
State Purchasing
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Where to Find Contract
Click on State
Term Contracts
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Where to Find Contract
Click on Courier
Services
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Where to Find Contract
Click on contract
number
991-160-11-2
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Contract Landing Page
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Contract Benefits
• Two Vendors UPS
FedEx
• 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
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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
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Pricing Information
Next Day First Delivery – By 8:30
FedEx UPS Best Value Percent
Difference Best Value
Percent Difference
Zone
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%
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Pricing Information
Next Business Day AM – By 10:30
FedEx UPS Best Value Percent
Difference Best Value
Percent Difference
Zone
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%
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Pricing Information
Next Business Day PM – By 3:30
FedEx UPS Best Value Percent
Difference Best Value
Percent Difference
Zone
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%
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Pricing Information
2nd Business Day –By 3:30
FedEx UPS Best Value Percent
Difference Best Value
Percent Difference
Zone
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%
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Pricing Information
3rd Business Day –By 3:30
FedEx UPS Best Value Percent
Difference Best Value
Percent Difference
Zone
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%
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Pricing Information
Ground FedEx UPS Best Value Percent
Difference Best Value
Percent Difference
Zone
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%
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Demand Management
Simple Definition:
Reducing what we buy and looking at our buying
patterns to identify ways to save money.
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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%
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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
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Demand Management Savings
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.
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Demand Management Savings
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.
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Demand Management Savings
Use on-line shipping tools provided at:
http://www.fedex.com/us/
http://www.ups.com/
No Ground on Hand
Written Tickets
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Demand Management Savings
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.
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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%
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UPS Zone Maps FedEx Zone Maps
Ground Service areas in the State of Florida with one or two day delivery time
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Contract Landing Page
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How to Set up Accounts
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Contract Administrator Information
UPS
Stepphone Mack Director of Strategic Accounts
400 N. Hurstbourne Parkway, #424
Louisville, KY 40223
E-mail Address: [email protected]
Phone Number: (502) 329-3321
Fax Number: (502) 821-1793
Government Customer Service Hotline
800-877-1497
E-mail Address: [email protected]
FedEx
Bobby Bledsoe Worldwide Account Manager
6625 Lenox Park Drive
Memphis, TN 38115
E-mail Address: [email protected]
Phone Number: (901) 224-2963
Fax Number: (901) 224-2960
Government Customer Service Hotline
800-645-9424
E-mail Address: [email protected]
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Q&A
We have time for any questions.
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Contact Information
• Angela Caldwell, Associate Category Manager
• Brenda Wells, Category Manager
• Kevin Brown, Group Category Manager/
Bureau Chief
Kevin [email protected]
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