5 ways to drive maximum savings

Transcription

1 5 ways to drive maximum savings with your freight management program An educational event sponsored by OptiFreight Logistics Marc Mullen Vice President/General Manager, OptiFreight Logistics May 12, 2015

2 Marc Mullen Vice President/General Manager OptiFreight Logistics 2

3 Mike Walker System Director, Centralized Purchasing 3

4 What we ll reveal today Why close collaboration is essential to success 5 ways to drive maximum savings How to identify a strong freight management program 4

5 What is freight management? Discounted rates Volume savings on shipping See your spend to save even more 5

6 The power of collaboration The stronger our collaboration, the greater your success 6

7 Discounted rates are just the beginning Rate Savings Discounted rates Managed freight volume Continuous improvement Overall freight management value 7

8 The difference program participation makes $39,678 Range of opportunity* $107,034 compared to carrier list price No data exchange Limited compliance No outbound services Only certified inbound volume Participate in all service offerings: inbound, outbound and LTL Participate in data exchange Include a PO Comment for maximum program participation *Based on internal OptiFreight Logistics data analysis savings compared to list price. 8

9 Presence Health $713,161 saved* 12-month results compared to carrier list price *Based on Presence Health data -- list price comparison: April 2014 through March

10 5 ways to drive maximum savings 1 Supplier participation Employee participation Mode optimization Large freight Advanced analytics 10

11 5 ways to drive maximum savings Maximize supplier participation Provide freight history Include a PO Comment every time Communicate with suppliers 11

12 1. Maximize supplier participation 47%* average savings per package Share data with freight management program Review every invoice over $50 Pressure three ways: you, freight management program and GPO Most suppliers aren t going to pursue the savings for you! *Presence Health saved an average of 47% per inbound package through OptiFreight Logistics from January 1, 2014 to December 31, Individual customer savings may vary. 12

13 5 ways to drive maximum savings Improve employee participation Promote education Use an online portal 13

14 2. Improve employee participation 42% average savings per package Look at every single freight bill Send employee reminders Make it part of your culture *Presence Health saved an average of 42% per outbound package through OptiFreight Logistics from January 1, 2014 to December 31, Individual customer savings may vary. 14

15 5 ways to drive maximum savings Increase mode optimization How suppliers and employees can save you even more The key to mode optimization 15

16 3. Get in the zone and save even more Next day delivery as overnight but at ground service rates! 16 *Map is a representation of a transit map Ground Service area. Estimated delivery times may vary by individual supplier.

17 5 ways to drive maximum savings Remember your large freight Save on capital improvements Save on new equipment More keys to savings 17

18 4. Remember your large freight 35% average savings per shipment Drive as much volume as possible Focus on capital equipment Pick up the phone *Presence Health saved an average of 35% per large freight shipment through OptiFreight Logistics from January 1, 2014 to December 31, Individual customer savings may vary. 18

19 5 ways to drive maximum savings Use advanced analytics Gain full visibility Benchmark performance Leverage Big Data Reveal the way to hidden savings 19

20 5 ways to drive maximum savings 1 Supplier participation Employee participation Mode optimization Large freight Advanced analytics 20

21 Must-haves for your freight management program 21

22 Must-haves for your program Program scale and reach Advanced data and analytics Healthcare industry expertise 22

23 Why OptiFreight Logistics? 23

24 Making a real cost difference 21,000 active facilities* $200 million saved in 2014* 2,000 healthcare providers* 11.5 million shipments* 24 Source: *Based on shipments through OptiFreight Logistics from January 1 through December 31, Individual savings may vary.

25 Three ways we deliver A comprehensive program Visibility and control Expertise and proactive support 25

26 OptiFreight Logistics: Program scale and reach Full breadth of services across the continuum of care Serving multiple customers Hospital Pharmacy Laboratory Surgery center Physician office Home Health Long-term care Blood and tissue bank Global Government Veterinary Academic Logistic solutions (inbound and outbound) Small parcel Large freight International Hazardous White glove Home delivery Analytics/reporting Temperature sensitive 26

27 OptiFreight Logistics: Advanced data and analytics Visibility and control Proprietary data analytics Shipping service trends Benchmark your program performance Advanced outbound shipping tool Customized program reporting 27

28 Expertise and proactive support IT Customer care Implementation Vendor relations OptiFreight Logistics Analytics management Account managers Logistics solution 28

29 Mike Walker, Presence Health Q&A Marc Mullen, Cardinal Health OptiFreight Logistics phone: option 1 29

30 Thank you! 30