A proposal for Eastern Truck Supply

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Melvin Hudson
6 years ago
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1 A proposal for Eastern Truck Supply Getting your packages there faster May 16, 2007

2 Goals for today s discussion Review understanding of Eastern Truck Supply s shipping needs Summarize proposed market offerings that align with Eastern Truck Supply s needs and priorities Discuss timing and next steps to begin shipping partnership 2

3 Our understanding of Eastern Truck Supply s shipping profile Total annual shipping spend $1,000,000 Package volume for domestic (# packages per year) Package volume for international (# packages per year) Packaging type Ground: 10,000 2-day: 1,500 Overnight: 500 Ground: day: 50 Standard Box Oversize Package contents Fragile 3

4 Our understanding of Eastern Truck Supply s business needs and priorities Primary needs Values enhanced customer service options such as detailed tracking and tracing and flexibility of scheduling Interested in controlling shipping costs while improving shipping quality Interested in considering partnering with one shipping company to maximize value Values the full protection and guarantee of all of its shipments Secondary Needs Values business services provided by a shipping partner Interested in having a shipping partner provide a level of logistical support for shipping operations 4

We are pleased to support Eastern Truck Supply s needs and priorities with the following offer: Shipping support services Shipping guarantee Shipping logistics Customized shipping website for your

5 We are pleased to support Eastern Truck Supply s needs and priorities with the following offer: Shipping support services Shipping guarantee Shipping logistics Customized shipping website for your company Optimal shipping recommendations on website Free packaging supplies for Overnight and 2-Day shipments Reduced rates for Ground package supplies Standard insurance included $200 per package Guaranteed 97% on time delivery Late shipping reimbursement paid at 2 the package shipping amount Automatic standard onsite pickup and delivery times 5

6 Eastern Truck Supply has the advantage of having access to tiered, volume-based pricing Tiered volume pricing Domestic International Pckgs/yr < Over 1000 < Over 1000 Ground (price/lb) $3.70 $2.95 $2.75 $46.65 $43.15 $ Day (price/lb) $9.70 $8.95 $8.75 $59.65 $56.15 $54.15 Overnight (price/lb) $17.45 $16.75 $16.45 $81.65 $78.15 $76.15 Given your current shipping profile, switching to will save you $30,963 in shipping costs over the next 12 months 6

7 We are offering Eastern Truck Supply a full slate of printing, copying and packaging services Copying, collating and binding services for all of your printing needs Pick up and delivery service for originals Submit printing and copying jobs online Reduced rates for customers Packaging and shipping services direct from the printing facility Design consultation available on-site, online and overthe-phone for creating professional looking materials 7

8 We can be an active partner in optimizing Eastern Truck Supply s shipping operation In-depth audit of shipping operations with multiple levels of implementation available Active business consultation to develop and facilitate logistical shipping services Onsite logistics rep to manage your products from final inspection until arrival at the final shipping destination Technology to track and invoice your products from raw material, production, final assembly and delivery 8

We are also offering you additional value Item Value Quantity Customs papers and declarations $60 each 4 Shipping supplies Scales $150 each 3 Label maker $25 each 5 Packing supplies Oversized Boxes

9 We are also offering you additional value Item Value Quantity Customs papers and declarations $60 each 4 Shipping supplies Scales $150 each 3 Label maker $25 each 5 Packing supplies Oversized Boxes $15 per 20 Included Bubble wrap $15 per 20 Included Foam Peanuts $15 per 20 5 Packing Tape $25 per roll 5 Special pick up and delivery Holiday $100 per pick up 1 Weekend $200 per pick up 1 Late Night $75 per pick up 1 Invoices Hand carry Pick up Service at business locations Pick up service in remote zip codes $1.00 each $45 each $15 $ Total Annual Shipping Value Over $2,690 This equates to a $0.22 per package savings! Note: Included items are valued at $500 in addition to the total value shown 9

10 Eastern Truck Supply can save money by using for all of its shipping needs The amount you would save annually by choosing over each competitor Savings $100,000 $50,000 $0 $84,038 $45,113 $21,263 Competitor A Competitor B Competitor C 10

Summary of offer Savings from switching all shipping to $30,963 Value of additional shipping benefits $2,690 Included package insurance level 1 Value of shipping reimbursement 2 Value of included

11 Summary of offer Savings from switching all shipping to $30,963 Value of additional shipping benefits $2,690 Included package insurance level 1 Value of shipping reimbursement 2 Value of included shipping materials Total value $24,700 $25,400 $1,538 $85, Assuming 1% of packages redeem insurance 2. Average cost of package is assumed to be $50 for domestic and $100 for international 11

12 We have created a valuable offer for Eastern Truck Supply Does this offer match with Eastern Truck Supply s needs and priorities? Are there other offers that would be more valuable and should be added? will work with Eastern Truck Supply to refine the offer and create a mutually beneficial partnership program 12

13 Next Steps Discuss extended pickup hours Schedule delivery of shipping supplies 13

14 Thank you For more information please contact Steve Jones

15 Appendix

SuperShipper s extensive global network can accommodate all of your shipping needs Daily shipments to over 190 countries worldwide Overnight delivery available to virtually all network countries

16 SuperShipper s extensive global network can accommodate all of your shipping needs Daily shipments to over 190 countries worldwide Overnight delivery available to virtually all network countries Industry leading customs service solutions Domestic Ground, 2-Day, and Overnight service to all U.S. business addresses and more than 75% of all homes Unrivaled infrastructure to ensure timely delivery and customer convenience Over 300 aircraft and 30,000 ground vehicles Over 2,000 locations and 25,000 drop-boxes in the United States alone 16

17 is the most dependable company in the package delivery industry Rated most reliable shipper by multiple independent agencies in the last twelve months Awarded Gold medal for overall reliability by TP Simpsons 2006 Highest on-time ratings for international deliveries as reported by Bizmag January 2007 Afraid to ship your valuables? Super Shippers leads the way when it comes to lost/damaged goods Springfield Daily, February 2007 backs up its reliability claims with comprehensive money-back guarantees and insurance services 17

strives to create a hassle free environment for its customers Dedicated 24-hour customer service center to handle your most urgent needs Detailed pricing and scheduling information

18 strives to create a hassle free environment for its customers Dedicated 24-hour customer service center to handle your most urgent needs Detailed pricing and scheduling information Pick-up requests Real time tracking Guaranteed claim resolution within 2 days of filing Friendly pick-up and delivery personnel to ensure customer satisfaction at all points of contact 18

UPS Ground on Saturday

UPS Ground on Saturday Consumers want choice, control and convenience Consumers expect quick delivery Long or unknown delivery times result in lost revenue E-commerce is a 24 x 7 operation 39% 31% 46%