91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California More money for student services with this easy saving opportunity.

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

More money for student services with this easy

saving opportunity

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Agenda

OBJECTIVES: 1. Present the concept and benefits of managing your inbound shipping costs.

2. Demonstrate it is easier than you think to save money on your inbound shipping costs.

AGENDA: 1. What is the savings opportunity?

2. What is the current state of inbound shipping?

3. What is the solution?

4. What is the savings potential?

5. Results of recent NAEP survey

6. Key to a Successful Program

7. Build vs. Buy

8. Partnership & ROI

9. Next Steps

10. Questions

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Doesn’t this say it all??

Hey Jason,

Join students all across America by making history on this Thursday March 1st, 3 PM at the Oval to protest tuition increases and student debt. Higher education is in crisis, student debt will reach totals over one trillion dollars this year nationwide.

Join students all across America by making history on this Thursday March 1st, 3 PM at the Oval to protest tuition increases and student debt. Higher education is in crisis, student debt will reach  totals over one trillion dollars this year nationwide.

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Current State of Freight Management

Vendors in control

> 35% overcharge onsmall package

20% to 40% overcharge on LTL

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Invoice Overcharge Example

Shipping charge on vendor invoice = $29.04

Institution Savings $10.44

Shipping thru managed program = $18.60

36% Savings

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Here is the future that we need to move to!

“America’s public colleges and universities are being called on to

restrain spending and to be more innovative and

entrepreneurial in identifying and implementing cost containment and revenue enhancement measures.”

-- Public College and University Procurement Survey

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

How much can you save?

26,000 students over $50,000

13,000 students over $250,000

20,000 students over $120,000

6,700 students over $400,000

Note: Institutions with high research funding, or nursing, medical, engineering, and other hands-on areas of focus, have much higher shipping costs and savings.

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Results of Recent NAEP Survey

• 83% of respondents recognize shipping overcharges are an issue

• 50% want to address inbound shipping costs in 2012

• Primary focus is on initiatives with tangible savings, and high ROI

• More than 70% indicated a project with $100,000 or less of savings helps achieve goals

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Take Control!

“It doesn’t matter if the savings is $500, $5,000 or $50,000… managing inbound freight is an easy initiative to save money, and it puts us in control of our own costs.”

Stephen Storck, Senior Associate VP, Finance & Admin - Kent State University

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

What’s the Solution?

1. Take control of your own costs

2. Identify proven methods and best practices

3. Use experience of other industries

4. Use technology to youradvantage

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

What are the Keys to a Successful Program?

Vendor setup

Vendor compliance

Charge match to proper GL

Strategic

reportingLong term focus

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Evolutionary process to maximize savings

OutboundAdditionalVendors

Exposure ofAssessorial

Fees

Less-than-Truckload

(LTL)

|-------------------- Strategic Visibility ----------------|

StrategicContract

Negotiation

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Decision Time – Build vs. Buy

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Common Pitfalls

More than a routing guide

Scarce IT resources

Making it harder on AP

Hoping and praying vendors comply

Not staying focused on program

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

What do you want in a partner?

Aligned incentives

Experience

Best practices

Complete management

Technology

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Partnership – Huge ROI

1. Maximum investment expected2. Average industry rates

Resources Hours Invested (1)

Hourly Rate(2) Total Investment

Report Writing 10 $50 $500

Accounts Payable 4 $40 $160

Project Champion 8 $60 $480 Total Investment 22 - $1,140

1 2

Annual Inbound Shipping Expense $150,000 $315,000

One Time Investment $1,140 $1,140 Annual Recurrent Savings $52,500 $110,250

Return on Investment 4,605% 9,671%

Return on InvestmentInstitution

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Why do this now???

U.S. Secretary of Education Arne Duncan has warned of an ominous "New Normal" for public schools. This era of sky-high deficits and fiscal

austerity for states and school districts threatens our ability to achieve better outcomes

for all students, particularly the most vulnerable. That leaves us no choice but to

work together and spend smarter. Huffington Post 5/21/11

“Shrinking Budgets Demand Smarter Schools”We need to help our students succeed

It fits in with other priorities

Start saving this year

It’s easy to do

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Next Steps

• Identify if you want to “build or buy”

• Identify current shipping costs

• Estimate your savings

• Implement a program

• Monitor and report on success

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Summary

• You are being overcharged on shipping costs

• Proven solution

• Easy – fits in with other priorities

• High ROI

• Recurring savings

• Future, strategic saving opportunities

• Recognize savings this year!      

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

VPL thanks you for the opportunity to present at the

2012 NAEP Conference.