Transcript Document

Inbound Supplier Freight Costs
$1.5B Industry Cost
Cost Reduction Opportunity
$500M Savings
• No Barrier to Entry
• Easy to Implement
• No Cost or Fees
FDSI’s Inbound Supplier Freight Cost
Reduction Solution
• FDSI’s Program Stops your Suppliers from Profiting on
Freight
• FDSI Provides your Hospital with Deep Carrier
Discounts
• FDSI Reduces your Hospital’s Premium Air Service
Costs
• FDSI Provides Shipment Visibility Reporting Tools
• FDSI Provides an End to End Solution
• Experienced Transportation
Professionals
• Customer Oriented Technology
Solutions
• Multi-Modal Quality Carrier Network
FDSI Experienced Transportation
Professionals
• Transportation & Operations Specialists
• Customer Service Coordinators
• Information Technology Specialists
• Freight Audit & Payment Department
• Hospital On-Site Consulting
• Dispatch
Visibility
Manageability
FDSI Core
Technology
Provides
Measurability
Accountability
Cost Reduction
= Optimum Savings
Reduce Premium Air
Transportation Costs
Shipment Visibility
Reporting
Carrier Freight Audit
& Payment Process
Hold Department
Accountable for
Freight Costs
Supplier Shipment
Consolidation
1,300+ Compliant
Suppliers
Establish Freight
Cost Budget
Carrier Least Cost
Shipping Options
• A Variety of Quality Carriers
• Air, Ground, Ocean or Rail
• Less Than Truck Load (LTL)
• Full Truck Load (FTL)
• Vanline
• Flatbed
• Riggers
• Provide Deep Carrier Discounts
• Over 1,350 Compliant Suppliers
• Equals 60-70% of Inbound
Supplier Freight Costs
• FDSI’s Goal is 100% Compliance*
• Aggressive Pursuit of Major
Non-Compliant Suppliers
*Abbott, Alcon Laboratories, Boston Scientific, Depuy Orthopedics, GE Medical, Johnson
& Johnson, Ortho Clinical Diagnostics, U.S. Surgical
A Bills received by
FDSI via mail or EDI
B Data is processed
through automated
filters that flag dups,
gross errors, missing
data for human
review
C Corrections are
made and database
is updated
D Physical bills or EDI
files are forwarded to
auditors
E Tariff/Pricing and PO
numbers are checked for
validity. Database is
updated with correct
PO/SO or revised charges.
F GL Coding is
performed
G Bill is flagged in
database as “OK to pay”
and electronic approval
process is performed
H Weekly batches are
Created and funds
requested by FDSI
I Client funds FDSI
via wire or check
and FDSI sends
out carrier payments
Monthly and YTD Visibility of all
Incoming Shipments Provides:
• Supplier Origin Shipping Locations by Carrier Zone
• Identification of High Volume Suppliers that Ship
Every Day
• Breakout of Premium Air vs Ground Shipments
• Identifies Opportunities to Reduce Premium Air
Shipments
• Supplier Shipment Consolidation Option
• A Virtual Blueprint for Shipping Smarter
Reduce Premium Air Service
Transportation Costs by 20-30%
• 70% of Inbound Shipments Move via Airfreight Direct
from the Manufacturer/Supplier
• 50% of the Premium Air Service Shipments are not
Consumed the Day they are Delivered
• Selective Mode Shifting of Priority to Standard,
Standard to 2nd Day and 2nd Day to Ground will
Generate an Additional 20-30% Cost Savings
Summary by Service Type YTD
For 01/01/06 - 06/08/06
Shipments
List Price
FDSI Price
% of Total
Savings
1150
$58,947.75
$44,988.49
53%
$13,959.26
Std Overnight
223
9,903.16
7,541.78
9%
2,361.38
2nd Day
753
18,655.82
15,146.67
18%
3,509.15
Express Saver
231
7,189.29
6,352.54
8%
836.75
1161
9,163.94
8,551.31
10%
612.63
16
1,622.49
1,623.12
2%
(0.63)
3534
$105,482.45
$84,203.91
Service Type
Priority
Ground
First Overnight
Grand Total
$29,654.63
$21,278.54
Service Change Analysis
vs
• Track and Trace Shipments
• Request Route Guides
• Rate Shop/Submit Rate Requests
• Look Up Freight Bills
• Submit Claims
• Review Claim Status
• Create/Request Custom Reports or Queries
FDSI Manages Your Inbound Freight
• Stops the Capital Equipment Suppliers from Profiting on
your Inbound Freight
• Reduces Inbound Capital Equipment Freight
Costs by 25-50%
• Establishes a Freight Cost Budget for the
Project Manager
• Schedules All Supplier’s Shipments to the Hospital
Construction Site
• Consolidates Supplier Shipments
• Audits, GL Codes and Allocates to the Dept. Level All
Supplier Inbound Freight Shipments
• Provides the Project Manager with Monthly Freight
Savings Reports
Estimated Costs: Radiology Lab
• Total Construction
$100M
• Capital Equipment
$30M
• Inbound Supplier Freight
• FDSI Compliant Supplier Match
• Inbound Supplier Freight Savings
$3M
$1.5M
$375K
Inbound Frt Cost Reduction Program Comparison
Description
FDSI
HLS
Cardinal
O&M
Program Costs/Fees
No
Yes
Yes
Unknown
Number of Compliant Suppliers
1,350+
<600
<600
Unknown
Years Providing Inbound Supplier Logistics Programs
21
<5
<5
<2
100% PO Matching, GL Coding, Department Level
Allocation and Unlimited Reporting Services
Yes
Unknown
Unknown
Unknown
Provides Summary and Detail Shipment Visibility
Reporting and Consulting Services
Yes
No
No
No
Provides Management of Capital Equipment
Construction Projects
Yes
No
No
No
Provides an Interactive Website for Shipment, Tracking
and Tracing, Rate Comparisons, Rate Requests, Route
Guides, Submitting Claims and More
Yes
No
No
No
Provides Multiple Mode and Carrier Services
Yes
Unknown
Unknown
Unknown
Provides On-Site Internal Delivery Consumption Analysis
Yes
No
No
No
Cargo Claims Management
Yes
No
No
No