negotiation powerpoint
TRANSCRIPT
SMALL PACKAGECOST CUTTING SOLUTIONSP A R C E L S P E N D M A N A G E M E N T
FIRST FLIGHT SOLUTIONS
WHYFIRST FLIGHT
NO RISK - Performance based fee
Shipping costs continue to increase at an alarming rate. FedEx and UPS announce
their 2010 rate increase at 4.9%…Recent rate increases were: 2007 - 3.5%, 2008 - 4.9%,
2009 - 5.9%, when in actuality, depending on your individual company’s shipping
characteristics, the net impact could have been more than double.
11% of major shippers utilize consultants. The survey showedthose who did engage consultants to help in the parcel negotiationprocess realized a 49% reduction of transportation costs overthose that did not.”
“
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19% of total transportation costs are now spent on accessorial charges.Note page 5 illustration
MORGAN STANLEY SURVEY
Delivery Service Invoice
Invoice date November 8, 2008
Invoice number 786654
Shipper number
Page 17 of 794453
OutboundVendor Manifest (continued)
Pickup Pickup
Date Record
11/03 4406136221
Entry Tracking Number
77393858405800445XXXXXXXXXXXXXXXXXXXXXXX
77393858405800445XXXXXXXXXXXXXXXXXXXXXX
77393858405800445XXXXXXXXXXXXXXXXXXXXXXX
Service
Ground Residential
Residential Surcharge
Delivery Area Surcharge
Additional Handling
Fuel Surcharge
Total
67460 6 27 15.511.952.306.501.63
27.89
-4.12
-.34-4.46
135 EAST ASHLAND ST.Doylestown PA 18901
11.391.952.306.501.29
23.43
ZipCode
PublishedCharge
SenderReceiver:
IncentiveCredit
BilledCharge
Zone Weight
Ground Residential 71929 5 5
Residential Surcharge
Delivery Area Surcharge
Additional Handling
Fuel Surcharge
Total
6.05
1.95
2.30
6.50
0.85
17.65
-1.31
-0.11
-1.42
4.74
1.95
2.30
6.50
0.74
16.23
ACCESSORIAL IMPACT
5
XXXXXXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXX
XXXX
FIRSTFLIGHTSOLUTIONS.COM
SERVICES
NEGOTIATING, AUDITING, OPTIMIZATION AND MORE…
WE DELIVER A STRATEGIC COMPETITIVE EDGE with no risk, no up-frontcosts and no hidden fees.
EXPERIENCED RESOURCES - First Flight Solutions has over 100 years ofcollective industry experience.
FIRSTFLIGHTSOLUTIONS.COM 7
PROCESS
ANALYZE YOUR SHIPPING characteristics to reveal what is drivingthe increase in your shipping costs.
CONDUCT NEGOTIATION OR SKILLFULLY “ADVISE AND COACH”your decision maker through the entire process.
Once YOUR company accepts a final carrier proposal, the new ratestructure will be compared with your previous rates (the benchmark)to measure our success.
WEEKLY STATEMENT…
Illustrates measurable cost savingsReduces billing inaccuracies and validates freight chargesMaintains carrier pricing agreement compliance
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WEEKLYSTATEMENT
SERVICEPRIOR
SAMPLEWEEKENDING NOVEMBER 22
NEW
Ground Commercial
Ground Residential
Ground CWT
Residential Surcharges
Fuel Surcharge
Misc. Adj. Surcharges, Fees
TOTAL NET SPEND
UPS
UPS
UPS
UPS
UPS
UPS
$1,196.02
$4,469.58
$1,285.81
$969.15
$576.22
$293.50
$8,790.28
$1,096.15
$4,253.70
$1,285.81
$969.15
$576.22
$293.50
$8,474.53
$99.87
$215.88
$0.00
$0.00
$0.00
$0.00
$315.75
8.4%
4.8%
0.0%
0.0%
0.0%
0.0%
4.5%
NET RATE NET INCENTIVES NET DISCOUNTCARRIER GROSS RATE
SERVICE
Ground Commercial
Ground Residential
Ground CWT
Residential Surcharges
Fuel Surcharge
Misc. Adj. Surcharges, Fees
TOTAL NET SPEND
Client and First Flight Solutions, LLC share in the savings shown of $1,058.24
UPS
UPS
UPS
UPS
UPS
UPS
$1,196.02
$4,469.58
$1,285.81
$969.15
$576.22
$293.50
$8,790.28
$867.60
$3,802.20
$907.62
$969.15
$576.22
$293.50
$7,416.29
$328.42
$667.38
$378.19
$0.00
$0.00
$0.00
$1,373.99
27.5%
14.9%
29.4%
0.0%
0.0%
0.0%
19.7%
NET RATE NET INCENTIVES NET DISCOUNTCARRIER
PRIOR NET SPEND
NEW NET SPEND
DIFFERENCE
$8,474.53
$7,416.29
$1,058.24
GROSS RATE
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TERMS
TERMS OF AGREEMENT - 3 years
BILLING - 50% of savings realized will be due (difference between benchmarkand new negotiated net spend by service level)
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THANKYOU
THANK YOU for the opportunity to earn your business!
15FIRSTFLIGHTSOLUTIONS.COM
888.787.3335
P A R C E L S P E N D M A N A G E M E N TFIRST FLIGHT SOLUTIONS