statewide & global courier services state term contract ...€¦ · statewide & global...

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

http://www.dms.myflorida.com/

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Click on State

Term Contracts

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Click on Courier

Services

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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



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



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



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



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


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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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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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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Use on-line shipping tools provided at:

http://www.fedex.com/us/

http://www.ups.com/

No Ground on Hand

Written Tickets

http://www.fedex.com/us/

http://www.ups.com/

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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


FedEx

Bobby Bledsoe Worldwide Account Manager

6625 Lenox Park Drive

Memphis, TN 38115


Phone Number: (901) 224-2963

Fax Number: (901) 224-2960

Government Customer Service Hotline

800-645-9424


mailto:[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

[email protected]

• Brenda Wells, Category Manager

[email protected]

• Kevin Brown, Group Category Manager/

Bureau Chief

Kevin [email protected]




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