More money for student services with this easy saving opportunity

1. More money for student services with this easy saving opportunity

2. Agenda Objectives:1. Present the concept and benefits of managing your inbound shipping costs. 2. Demonstrate it is easier than you think to save money on your inbound shipping costs. Agenda:1. What is the savings opportunity? 2. What is the current state of inbound shipping? 3. What is the solution? 4. What is the savings potential? 5.Results of recent NAEP survey 6. Key to a Successful Program 7.Build vs. Buy 8.Partnership & ROI 9. Next Steps 10.Questions

3. Doesn’t this say it all??

4. Current State of Freight Management Vendors in control > 35% overcharge onsmall package 20% to 40% overcharge on LTL

5. Invoice Overcharge Example Shipping charge on vendor invoice = $29.04 Shipping thru managed program = $18.60 Institution Savings $10.44 36% Savings

6. Here is the future that we need to move to! “America’s public colleges and universities are being called on to restrain spending and to be more innovativeand entrepreneurialin identifying and implementing cost containment and revenue enhancement measures.” -- Public College and University Procurement Survey

7. How much can you save? 26,000 students over $50,000 13,000 students over $250,000 20,000 students over $120,000 6,700 students over $400,000Note: Institutions with high research funding, or nursing, medical, engineering, and other hands-on areas of focus, have much higher shipping costs and savings.

8. Results of Recent NAEP Survey • 83% of respondents recognize shipping overcharges are an issue • 50% want to address inbound shipping costs in 2012 • Primary focus is on initiatives with tangible savings, and high ROI • More than 70% indicated a project with $100,000 or less of savings helps achieve goals

9. Take Control! “It doesn’t matter if the savings is $500, $5,000 or $50,000… managing inbound freight is an easy initiative to save money, and it puts us in control of our own costs.”Stephen Storck, Senior Associate VP, Finance & Admin - Kent State University

10. What’s the Solution? • Take control of your own costs • Identify proven methods and best practices • Use experience of other industries • Use technology to youradvantage

11. What are the Keys to a Successful Program? Vendor setup Vendor compliance Charge match to proper GL Strategic reporting Long term focus

12. Evolutionary process to maximize savings |-------------------- Strategic Visibility ----------------| Strategic Contract Negotiation Less-than- Truckload(LTL) Exposure of Assessorial Fees Additional Vendors Outbound

13. Decision Time – Build vs. Buy

14. Common Pitfalls More than a routing guide Scarce IT resources Making it harder on AP Hoping and praying vendors comply Not staying focused on program

15. What do you want in a partner? Aligned incentives Experience Best practices Complete management Technology

16. Partnership – Huge ROI • 1. Maximum investment expected • 2. Average industry rates

17. Why do this now??? We need to help our students succeed It fits in with other priorities Start saving this year It’s easy to do “Shrinking Budgets Demand Smarter Schools” U.S. Secretary of Education Arne Duncan has warned of an ominous "New Normal" for public schools. This era of sky-high deficits and fiscal austerity for states and school districts threatens our ability to achieve better outcomes for all students, particularly the most vulnerable. That leaves us no choice but to work together and spend smarter. Huffington Post 5/21/11

18. Next Steps • Identify if you want to “build or buy” • Identify current shipping costs • Estimate your savings • Implement a program • Monitor and report on success

19. Summary • You are being overcharged on shipping costs • Proven solution • Easy – fits in with other priorities • High ROI • Recurring savings • Future, strategic saving opportunities • Recognize savings this year!

20. VPL thanks you for the opportunity to present at the2012 NAEP Conference.