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Procurement Best Practices Optimizing Your Small Parcel Program GSA Transportation Forum March 22, 2012

Procurement Best Practices Optimizing Your Small Parcel Program GSA Transportation Forum March 22, 2012. Today’s Topics. Small Parcel Best Practices & Agency Considerations GSA PayPort Express – Maximizing Value for Federal Agencies Brief Demonstration.

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Procurement Best Practices Optimizing Your Small Parcel Program GSA Transportation Forum March 22, 2012

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  1. Procurement Best PracticesOptimizing Your Small Parcel ProgramGSA Transportation ForumMarch 22, 2012

  2. Today’s Topics • Small Parcel Best Practices & Agency Considerations • GSA PayPort Express – Maximizing Value for Federal Agencies • Brief Demonstration

  3. Small ParcelBest Practices & Agency Considerations

  4. Questions to Ask Yourself About Your Small Parcel Program • How do you know if you are missing opportunities? • Where do I get data to assist managing my contracts? • How can I save cost? • What are the largest opportunities? • Where and how do I get the information?

  5. Managing Small Parcel Shipments is Increasingly Challenging What was a simple service has become an extremely difficult mathematical exercise • Cumbersome, complex contracts • Over 85 + billable accessorial charges • Some shippers do not (cannot) audit. “It’s such a small piece of my overall freight spend that it is not worth my time”. • Downward movement in Tier levels

  6. Contract Management: Six Ways You Save Money

  7. Five Pillars that Reduce Agency Risk and Cost

  8. Agencies Can Realize 3%-10%+ Cost Reduction in their Small Parcel Program Sourcing: assessment of current contract economics and implications Process improvement: order processing, optimization 2%-10% Reduction 3%-30% Reduction Cost Reduction 2%-6% Reduction Contract Management: information management, financial workflow

  9. 3 Important Factors to Optimizing Your Small Parcel Program

  10. PayPort Express – Small ParcelMaximizing Value for Federal Agencies

  11. GSA PayPort Express Automates Small Parcel Audit and Payment • Web based system designed specifically for the unique needs of auditing and reporting small parcel transactions • Comprehensive rate/service audit, detailed reporting, prompt and accurate settlement functionality • Actionable data that allows shippers to take full advantage of cost recovery and cost reduction opportunities • All processes are systemic and automatic – no user intervention is required

  12. GSA PayPort Express Small Parcel “You can’t Manage What You Can’t Measure” • Prepares and Organizes invoices for Payment • Visibility to Accounts, Companies, Divisions, Customers • Contract Performance Auditing • Recovery of disputed charges • Financial: custom cost allocation, GL/ AR coding, matching • Information Management/ Data Warehouse

  13. Small Parcel

  14. Maximizing the Value: Reporting Examples Report: Air to Ground Shipment Opportunities • Air Service that could have shipped via Ground Service and still made the same delivery date. Report: Shipment Consolidation opportunities • Savings associated with over packing/ banding. Report : Allocation of Fully Landed Cost • Provides breakdown of expenses comprising Fully Allocated Cost Per Package. Report: Service Utilization • Review summary or detail information of service used for a select period of time. Report: Accessorial Costs • Review summary or detail information of accessorial expenses by category.

  15. Brief Demonstration

  16. Conclusion Adam Jackson Citi Global Transaction Services, Public Sector North America 703.234.7306 Adam.W.Jackson@Citi.com

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