Uncover new savings: How freight management helps reduce shipping costs while providing heightened support to manage and track logistics operations.

Transcription

1 Uncover new savings: How freight management helps reduce shipping costs while providing heightened support to manage and track logistics operations.

2 Yancy Toney Consultant OptiFreight Logistics

3 Pressure to do more with less New regulations Budgetary concerns 3 *PAMA information based on A New Era for Lab Reimbursement Congress Overhauls Lab Fee Schedule, By: Bill Malone; ; Clinical Laboratory News

4 Laboratory shipping Suppliers ship reagents Ship client supplies Clients return specimens

5 Laboratory shipping

6 What is freight management

7 Freight with a national carrier What you pay What you get Discount off list Standard service

8 Freight with a freight management provider What you pay What you get Account Manager Visibility & Analytics Larger discount Save up to 30% or more* Real-time control Tools uncover trends Customized reports * Based on shipments through OptiFreight Logistics during January 1 December 31, Individual savings may vary.

9 Nothing else changes from point A to point B.

10 Inbound supplier shipments Small parcel Large freight (150 lbs.+) Freight is a profit center for suppliers.

11 Impacting inbound supplier shipments Discounted rate applied Reveal true freight costs Control hidden shipping charges and fees Supplier Invoice $ $ $ $ S&H.. $200 TOTAL $2,200 Supplier Invoice $ $ $ $ S&H... $0 TOTAL $2,000 Extra shipping costs bundled into product prices? *Display numbers are an example not real data.

12 Specimen management shipments Sending client supplies or block returns Clients return specimens

13 How much are you overpaying? $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, OPTIFREIGHT and ESSENTIAL

14 Impacting specimen management shipments Discounted rate applied Outbound shipments Return specimen shipments Integrated with your current processes Shipping software Pre-printed return labels Pre-printed air bills (handwritten)

15 Impacting specimen management shipments Logistics support Real-time visibility and control Reporting and analytics

16 Selecting a freight management provider $0 cost to you Use discounted rates Dedicated support Resources to continually help you manage your logistics spend Data and insights Analyze your freight spend to identify additional savings opportunities 16

17 Freight management from OptiFreight Logistics

18 About OptiFreight Logistics 17 years experience $340 million saved annually* 2,000 customers* 17.5 million shipments* *Based on shipments through OptiFreight Logistics from January 1 through December 31, 2016 compared to carrier list rates. Individual savings may vary. 18

19 Dedicated team of 200+ freight management experts Your team to manage cost savings initiatives and drive program usage Implementation IT Customer Care Supplier Relations Continual monitoring Multi-level customer support Dedicated account support Billing/Audit OptiFreight Logistics Account Management Over 500,000 labor hours* per year are dedicated to smarter, better, more costeffective freight management Analytics Management Logistics Solution *Source: Based on internal Cardinal Health data. 19

20 Reporting Receive reporting on your freight spend over time Gain visibility into your supply chain freight spend See costs by supplier, including fees View total costs for individual shipments 20

21 Additional freight management value Best practices to increase freight savings: Large freight (over 150 pounds) Use data to control outbound shipping costs PO comment $ 21

22 Case study: CellNetix Pathology & Laboratories

23 The challenge: Pressured to do more with less: New regulations Declining reimbursement rates Increased competition Recent merger objectives: Save time Save money Improve efficiencies

24 The challenge: unlock hidden freight savings Handling freight directly with a national carrier Lack of visibility into freight spend Complex invoices and complicated surcharges Couldn t identify incorrect charges

25 The solution: drive immediate ROI with OptiFreight Logistics Three goals: 1. Simplify the way they manage freight 2. Significantly reduce freight costs 3. Free up staff time

26 Results: * Based on shipments through OptiFreight Logistics during January 1, 2016 December 31, Individual savings may vary. Based on OptiFreight Logistics data for CellNetix during January 1, 2011 December 31, Individual savings may vary. Note: CellNetix has added pickup and delivery sites and times since implementation.

27 Added benefits: Direct line to live customer support: No more spending valuable time going through several automated prompts, hoping to get answers to your immediate shipping concerns. Clear, simplified invoicing: By consolidating all of your reduced shipping charges into an easy-to-read, single invoice, we take the guesswork out of understanding shipping costs and related details. Visibility into freight spend through advanced analytics: We dig deep into shipping processes and spend to continually seek out more savings opportunities. Best practices to improve efficiency: Like optimizing service level by client location, and improving your shipping and tracking processes.

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29 Q&A Yancy Toney Director, OptiFreight Logistics Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, OPTIFREIGHT and ESSENTIAL