Green Mountain Consulting. The Perfect Partner to Manage Your Parcel Spend

Transcription

1 Green Mountain Consulting The Perfect Partner to Manage Your Parcel Spend

2 GMC clients represent over $2 Billion in U.S. parcel spend and have the following things in common: Complex parcel networks Shipping 4M+ parcels annually Strategic approach to managing parcel network and spend Continuous focus on maximizing the cost and service equation Unrelenting desire to be the best, and partner with the best 2

3 Industry-leading innovation continues to drive GMC s rapid growth First to Automate reconciliation of FedEx invoices prior to payment GMC Processed Parcel Transportation Spend ($Billion) Offer detailed UPS audit, reporting and invoice reconciliation prior to payment 2.5 Combine parcel auditing, reporting and consulting services for a total solution Offer a business model to provide Parcel Spend Management services as a sustainable extension of our customers resources (Proj) 2013 (Proj) 3

4 For major shippers, Parcel Spend Management is extremely difficult and beyond their control Mega volumes and ineffective tools prevent accurate network modeling, data management and analysis Limited bandwidth and expertise hamper the ability to tackle spend aggressively Limited view of the market prohibits you from knowing what you don't know GMC s Parcel Spend Management solution is a game changer for the largest parcel shippers. 4

5 Effectively managing parcel spend requires a comprehensive approach Strategic Insight + Tactical Excellence This powerful combination delivers real, sustainable savings. 5

6 Only GMC delivers a sustainable Parcel Spend Management solution Building best-in-class agreements tailored to your unique parcel strategy Streamlining accounts payable and coding processes Identifying cost and service improvement opportunities Ensuring 100% billing accuracy prior to payment Modeling improvements / possibilities in the most complex networks Enabling detailed analysis of the service / cost equation 6

7 We bring three distinct advantages to our clients Market View Expertise Tools Extensive, appropriate knowledge base from serving only the largest parcel shippers Parcel experts working strategically as an ongoing extension of your team Proprietary systems custom designed to support the needs of your parcel network 4 We live and breathe parcel spend management it s all we do. 7

8 but it s our partnering approach that truly sets us apart Extending and deepening your team s expertise Learning your business Delivering strategic, data-driven solutions We become a fully-integrated part of your logistics team. 8

9 Our approach targets every possible area for optimization and cost-savings Use of declared value Use of flat rate products Use of DC bypass products (UPS Trade Direct to Ocean, FedEx International Priority Direct) Address corrections Cost Avoidance Contract Pricing rationalization / strength of contract Maximizing multiple carrier contracts Unrealized discounts & incentives Undiscounted services Weekly service charges for inactive accounts Use of 8:00am delivery service Anomalies within rate cards Unwarranted use of express services Next day 10:30am to 3:00pm opportunity 9 Waste Mode Selection Express services to ground Ground single piece to hundredweight Network Efficiency Consolidation opportunities Physical bundling Order consolidation across fulfillment channels

10 Optimization and Cost Savings GMC Project Tracker # Project Name Division Project Description / Objectives Project Type GMC Owner Target Date Completion Date Status Opportunity Savings Target Savings Comments 1 DC Split DCs For Nashville DC and Reno DC, create table showing 2 Day Air volume, avg cost and avg weight to each state. 7/24/2011 7/24/2011 Monthly Report $2M $2M GMC began producing this report monthly in June. Comment from Sue Smith (customer): Based on what you guys have sent, we have been able to show a $2M savings by moving more volume to the Nashville DC. For 2012, the hope is to show additional savings. Thanks for the great info! 2 Puerto Rico DIM Nashville DC Determine frequency and cost of dimming on packages from the Nashville DC to Puerto Rico moving Priority Overnight. 8/3/2011 8/2/2011 Complete $170K $170K 3 FedEx Box to Envelope DCs Perform analysis for 4 accounts (representing the Ecommerce group) to determine if any 1 lb cartons are dimming and the potential savings by using an envelope. 8/16/2011 8/16/2011 GMC refreshing analysis $138K shows more savings potential, but only $138K seems worthwhile to pursue. 2/6/ Sue Smith will follow-up 4 Puerto Rico PAK to Package Validation DCs Determine cost savings achieved so far this year (since 3/14/11) by removing the PAK designation from 1 and 2 lb packages bound for Puerto Rico. Annualize the results. 8/9/2011 8/9/2011 Complete $1.2M $1.0M More savings possible ($382K) by mitigating the DIM with a smaller carton or going back to a PAK (now that PAK rate is equal to Pkg rate) 5 Unwarranted Services ALL Identify unwarranted use of Air services Reporting 9/14/2011 9/12/2011 Sue to look at again - GMC measure once/qtr. $493K Specifically looked at shifting FO to PO. 6 LTL / CWT Opportunity DCs Evaluate replenishment frequency to stores (1,2,3 times/week) in order to shift to Ground CWT and identify savings. 1st Pass use UPS Ground CWT, 2nd Pass use LTL Rates. 10/6/ /6/2011 Complete $5.25M $100K for 20 store trial in 2012 / $1.0M for 2013 Sue Smith validated GMC analysis. Pilot with Nashville DC in Feb rollout based on current replenishment schedule is planned. 7 Air Optimization ALL Identify opportunties and savings to shift 10:30 AM Air to 3:00PM Air. Identify zip codes and savings by channel where FedEx does not ship Next Day 3PM service but UPS does. 12/14/ /18/2011 Sue identifying areas to implement $737K 8 Retail Store Next Day Air to Ground Rerate Retail Stores Take Next Day Day Air Retail Store shipments and rerate with UPS Ground to determine savings on zone 2 shipments (assuming zone 2 will ship within 1 day) 1/20/2012 1/18/2012 GMC refreshing analysis $403K 54% of savings is in Next Day Air 8:00 AM 10

11 We help find the savings you keep them! big up-front payments or share or cut taken All savings flow to your bottom line! Our customers typically see a 10+% reduction of their parcel spend, with a 300+% ROI. 11

12 Our clients say it best I have used their consulting services over a period of time that resulted in $10M+ in savings in a relatively short period (< 2 years). Senior Director of Logistics, AT&T GMC enables Pfizer s Global Small Parcel Control Tower. In addition to ensuring appropriate small parcel freight audit & payment, GMC utilizes invoice, manifest and tracking information to create a dashboard of standardized data for Pfizer which enables network analytics and supplier performance management. Senior Manager, Global Transport, Pfizer Pharmaceuticals GMC has become a strategic extension of our logistics team. We manage our parcel spend at a different level today and have realized millions of dollars as a result. VP Logistics, Barnes & Noble 12

13 Green Mountain Consulting The Perfect Partner to manage your parcel spend How the largest shippers maximize the service / cost equation Partnership with GMC Unique View Proprietary Tools Provide spot on analytics and cost modeling Comprehensive Parcel Spend Management Unique Expertise Partnering Model Become an extension of your logistics team Fee structure that makes your priorities in Parcel Spend Management our priorities Aligned Incentives Real and measurable savings flow to your bottom line 13