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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
5 ways to drive maximum savingswith your freight management program
An educational event sponsored by OptiFreight® Logistics
Marc MullenVice President/General Manager, OptiFreight® LogisticsMay 12, 2015
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
Marc MullenVice President/General Manager OptiFreight® Logistics
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
Mike WalkerSystem Director, Centralized Purchasing
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
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
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
What is freight management?
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Discounted rates
Volume savings on shipping
See your spend to
save even more
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
The power of collaboration
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The stronger our
collaboration, the greater your
success
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
Discounted rates are just the beginning
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Rate SavingsDiscounted rates
Managed freight volume
Continuousimprovement
Overall freight
management value
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
The difference program participation makes
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Range of opportunity*compared to carrier list price
$39,678 $107,034
• 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.
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
Presence Health
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$713,161 saved*12-month results compared
to carrier list price
*Based on Presence Health data -- list price comparison: April 2014 through March 2015.
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
5 ways to drive maximum savings
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1 Supplier participation
Employee participation
Mode optimization
Large freight
Advanced analytics
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3
4
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
15 ways to drive maximum savings
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Maximize supplier participation
• Provide freight history • Include a PO Comment every time• Communicate with suppliers
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
1. Maximize supplier participation
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• 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!
47%* average savings
per package
*Presence Health saved an average of 47% per inbound package through OptiFreight® Logistics from January 1, 2014 to December 31, 2014. Individual customer savings may vary.
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
5 ways to drive maximum savings
Improve employee participation
• Promote education• Use an online portal
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
2. Improve employee participation
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• Look at every single freight bill • Send employee “reminders”
• Make it part of your culture
42% average savings
per package
*Presence Health saved an average of 42% per outbound package through OptiFreight® Logistics from January 1, 2014 to December 31, 2014. Individual customer savings may vary.
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
5 ways to drive maximum savings
Increase mode optimization
• How suppliers and employees can save you even more
• The key to mode optimization
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
3. Get in the zone and save even more
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Next day delivery as overnight — but at ground service rates!
*Map is a representation of a transit map Ground Service area. Estimated delivery times may vary by individual supplier.
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
5 ways to drive maximum savings
Remember your large freight
• Save on capital improvements• Save on new equipment• More keys to savings
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
4. Remember your large freight
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• Drive as much volume as possible • Focus on capital equipment • Pick up the phone
35% average savings
per shipment
*Presence Health saved an average of 35% per large freight shipment through OptiFreight® Logistics from January 1, 2014 to December 31, 2014. Individual customer savings may vary.
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
55 ways to drive maximum savings
Use advanced analytics
• Gain full visibility
• Benchmark performance
• Leverage Big Data
• Reveal the way to hidden savings
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
5 ways to drive maximum savings
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1 Supplier participation
Employee participation
Mode optimization
Large freight
Advanced analytics
2
3
4
5
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
“Must-haves” for your freight management program
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
“Must-haves” for your program
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Program scale and
reach
Healthcare industry expertise
Advanced data and analytics
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
Why OptiFreight® Logistics?
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
Making a real cost difference
21,000 active facilities*
2,000healthcare providers*
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$200 million saved in 2014*
11.5 million shipments*
Source: *Based on shipments through OptiFreight® Logistics from January 1 through December 31, 2014. Individual savings may vary.
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
Three ways we deliver
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Expertise and
proactive support
Visibility and control
A comprehensiveprogram
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
OptiFreight® Logistics: Program scale and reach
Full breadth of services across the continuum of care
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Serving multiple
customers
Pharmacy Laboratory Surgery center Physician office Home Health Long-term care Blood and tissue bank
Global
Hospital
Government Veterinary Academic
Small parcel International Analytics/reportingHazardous White glove Home deliveryTemperature
sensitiveLarge freight Logistic
solutions (inbound and
outbound)
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
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
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
Expertise and proactive support
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OptiFreight®
Logistics
IT
Implementation
Customer care
Vendor relations
Logistics solution
Analytics management
Accountmanagers
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
Q&AMike Walker, Presence Healthemail: [email protected]
Marc Mullen, Cardinal Healthemail: [email protected]
OptiFreight® Logisticsphone: 866.457.4579 option 1
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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.
Thank you!
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