NCPA RFP 23-14 Response from FDSI Logistics

 Request for Proposal (RFP) for Logistics Services and International Document and Small Package Courier Services Solicitation Number: 23-­‐14 Submitted by: 5703 Corsa Avenue
Westlake Village, California 91362
www.fdsi.com
PROPRIETARY INFORMATION: This document and all associated materials are intended exclusively for use by The National Cooperative Purchasing Alliance (NCPA) and its Member Affiliates and FDSI Logistics and may not be used for any other purpose. This document contains confidential information and trade secrets of the NCPA and FDSI Logistics and those sections deemed trade secrets or proprietary information per interpretations of the Office of Attorney General (OAG) are indicated in the body of this document. Table of Contents Tab 1 – Signature Form ................................................................................................................................ 5 Tab 2 – NCPA Administration Agreement ................................................................................................... 7 ♦ General Terms and Conditions ........................................................................................................ 7 ♦ Term of Agreement ......................................................................................................................... 8 ♦ Fees* and Reporting ........................................................................................................................ 8 ♦ General Provisions ........................................................................................................................... 9 Tab 3 – Vendor Questionnaire ................................................................................................................... 11 ♦ States Covered ............................................................................................................................... 11 ♦ Minority and Women Business Enterprise (MWBE) and (HUB) Participation ............................... 12 ♦ Residency ....................................................................................................................................... 12 ♦ Felony Conviction Notice ............................................................................................................... 12 ♦ Distribution Channel ...................................................................................................................... 12 ♦ Processing Information .................................................................................................................. 12 ♦ Pricing Information ........................................................................................................................ 13 ♦ Cooperatives .................................................................................................................................. 13 Tab 4 – Vendor Profile ............................................................................................................................... 15 ♦ Company’s official registered name. ............................................................................................. 15 ♦ Brief history of your company, including the year it was established. .......................................... 15 ♦ Company’s Dun & Bradstreet (D&B) number. ............................................................................... 15 ♦ Company’s organizational chart. ................................................................................................... 15 ♦ Corporate office location. .............................................................................................................. 16 ♦ Define your standard terms of payment. ...................................................................................... 20 ♦ Who is your competition in the marketplace? .............................................................................. 20 ♦ Annual Sales for last 3 years .......................................................................................................... 20 ♦ What differentiates your company from competitors? ................................................................. 20 ♦ Describe how your company will market this contract if awarded. .............................................. 23 ♦ Describe how you intend to introduce NCPA to your company. ................................................... 23 ♦ Describe your firm’s capabilities and functionality of your website. ............................................. 24 ♦ Describe your company’s Customer Service Department ............................................................. 24 ♦ Green Initiatives ............................................................................................................................. 25 ♦ Vendor Certifications (if applicable) .............................................................................................. 27 Tab 5 – Products and Services/Scope ........................................................................................................ 29 ♦ Respondent shall perform and provide these products and/or services ...................................... 29 FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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♦ List of suggested categories that you are responding with: .......................................................... 29 ♦ Logistics Services ........................................................................................................................... 29 ♦ International Document and Small Package Courier Services ....................................................... 30 Tab 6 – References .................................................................................................................................... 32 ♦ Provide at least ten (10) customer references. ............................................................................. 32 ♦ All references should include the following information .............................................................. 32 Tab 7 – Pricing ........................................................................................................................................... 35 ♦ Please submit price lists ................................................................................................................. 35 ♦ Price lists must contain the following: ........................................................................................... 35 ♦ Submit price list electronically. ...................................................................................................... 35 ♦ Not To Exceed pricing .................................................................................................................... 35 ♦ FDSI Pricing Offer ........................................................................................................................... 36 Tab 8 – Value Added Products and Services .............................................................................................. 40 ♦ Include any additional products and/or services available. .......................................................... 40 ♦ FDSI’s Mode Optimization Program .............................................................................................. 45 ♦ Implementation Plan ..................................................................................................................... 48 ♦ Critical Factors for A Successful Implementation .......................................................................... 52 ♦ Roles and Responsibilities for A Successful Implementation ........................................................ 52 ♦ Reporting ....................................................................................................................................... 53 ♦ Custom Online Tools ...................................................................................................................... 55 ♦ Reporting Capabilities .................................................................................................................... 58 ♦ Mode Shift Analysis ....................................................................................................................... 59 ♦ Key Audits and Reporting Tools and Processes ............................................................................. 60 ♦ Activating and Expanding Suppliers ............................................................................................... 61 ♦ Implementation Management System .......................................................................................... 63 ♦ Monitoring Supplier Compliance ................................................................................................... 64 ♦ Tracking and Reporting Quality and Service Issues ....................................................................... 64 Tab 9 – Required Documents .................................................................................................................... 67 ♦ Clean Air and Water Act / Debarment Notice ............................................................................... 67 ♦ Contractors Requirements ............................................................................................................. 67 ♦ Antitrust Certification Statements ................................................................................................. 67 ♦ ARRA Standard terms and Conditions Addendum for Contracts and Grants ................................ 67 ♦ FEMA Standard Terms and Conditions Addendum for Contracts and Grants ............................... 67 ♦ Required Clauses for Federal Assistance by FTA ........................................................................... 67 FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Tab 1 – Signature Form The undersigned hereby proposes and agrees to furnish goods and/or services in strict compliance with the terms, specification and conditions at the prices proposed within response unless noted in writing. The undersigned further certifies that he/she is an officer of the company and has authority to negotiate and bind the company named below and has not prepared this bid in collusion with any other Respondent and that the contents of this proposal as to prices, terms or conditions of said bid have not been communicated by the undersigned nor by any employee or agent to any person engaged in this type of business prior to the official opening of this proposal. Prices (discounts) are guaranteed: 120 days Note that FDSI is not offering ‘prices’ in this RFP but discounts off list prices with our carriers. Details are specified in the Pricing section Tab 7. The full text of the NCPA Master Agreement, General Terms and Conditions is included at the end of this section after the signature page. FDSI’s standard LOA (Letter of Agreement) is below followed by our list of exceptions to your Terms and Conditions. FDSI will require NCPA and any participating buyers to review and sign our LOA. FDSI EDU standard
LOA 2014 for NCPA.doc
Notice to Readers: This RFP contains multiple embedded documents like the MS Word file above. These can be viewed in the electronic version of this RFP response by double-­‐clicking on the document icon. For the hardcopy version of this RFP, the icons remain but the referenced documents have been printed and are included at the end of each tabbed section. Required signatures are on the hardcopy versions. Thank you from the team at FDSI. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Tab 2 – NCPA Administration Agreement This Administration Agreement is made as of __̴̴̴̴̴̴̴̴̴̴̴̴̴̴̴̴̴̴̴̴ January 5, 2015 , by and between National Cooperative Purchasing Alliance (“NCPA”) and ________FDSI Logistics (Vendor”). Recitals WHEREAS, Region 14 ESC has entered into a certain Master Agreement dated January 5, 2015
, Referenced as Contract Number , by and between Region 14 ESC and Vendor, as 05-11
may be amended from time to time in accordance with the terms thereof (the “Master Agreement”), for the purchase of Logistics Services & International Document and Small Package Courier Services; WHEREAS, said Master Agreement provides that any state, city, special district, local government school district, private K-­‐12 school, technical or vocational school, higher education institution, other government agency or nonprofit organization (hereinafter referred to as “public agency” or collectively, “public agencies”) may purchase products and services at the prices indicated in the Master Agreement; WHEREAS, NCPA has the administrative and legal capacity to administer purchases under the Master Agreement to public agencies; WHEREAS, NCPA serves as the administrative agent for Region 14 ESC in connection with other master agreements offered by NCPA WHEREAS, Region 14 ESC desires NCPA to proceed with administration of the Master Agreement; WHEREAS, NCPA and Vendor desire to enter into this Agreement to make available the Master Agreement to public agencies on a national basis; NOW, THEREFORE, in consideration of the payments to be made hereunder and the mutual covenants contained in this Agreement, NCPA and Vendor hereby agree as follows: ♦ General Terms and Conditions Ø The Master Agreement, attached hereto as Tab 1 and incorporated herein by reference as though fully set forth herein, and the terms and conditions container therein shall apply to this Agreement except as expressly changed or modified by this Agreement. Ø NCPA shall be afforded all of the rights, privileges and indemnifications afforded to Region 14 ESC under the Master Agreement, and such rights, privileges and indemnifications shall accrue and apply with equal effect to NCPA under this Agreement including, but not limited to, the Vendor’s obligation to provide appropriate insurance and certain indemnifications to Region 14 ESC. Ø Vendor shall perform all duties, responsibilities and obligations required under the Master Agreement in the time and manner specified by the Master Agreement. Ø NCPA shall perform all of its duties, responsibilities, and obligations as administrator of purchases under the Master Agreement as set forth herein, and FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Vendor acknowledges that NCPA shall act in the capacity of administrator of purchase under the Master Agreement. Ø With respect to any purchases made by Region 14 ESC or any Public Agency pursuant to the Master Agreement, NCPA (a) shall not be construed as a dealer, re-­‐
marketer, representative, partner, or agent of any type of Vendor, Region 14 ESC, or such Public Agency, (b) shall not be obligated, liable or responsible (i) for any orders made by Region 14 ESC, any Public Agency or any employee of Region 14 ESC or Public Agency under the Master Agreement, or (ii) for any payments required to be made with respect to such order, and (c) shall not be obligated, liable, or responsible for any failure by the Public Agency to (i) comply with procedures or requirements of applicable law, or (ii) obtain the due authorization and approval necessary to purchase under the Master Agreement. NCPA makes no representations or guaranties with respect to any minimum purchases required to be made by Region 14 ESC, any Public Agency, or any employee of Region 14 ESC or Public Agency under this Agreement or the Master Agreement. Ø The Public Agency participating in the NCPA contract and Vendor may enter into a separate supplemental agreement to further define the level of service requirements over and above the minimum defined in this contract i.e. invoice requirements, ordering requirements, specialized delivery, etc. Any supplemental agreement developed as a result of this contract is exclusively between the Public Agency and Vendor. NCPA, its agents, members and employees shall not be made party to any claim for breach of such agreement. ♦ Term of Agreement Ø This Agreement shall be in effect so long as the Master Agreement remains in effect, provided, however, that the obligation to pay all amounts owed by Vendor to NCPA through the termination of this Agreement and all indemnifications afforded by Vendor to NCPA shall survive the term of this Agreement. ♦ Fees* and Reporting Ø Vendor shall pay to NCPA a monthly/quarterly administrative fee based upon the total purchase price paid to Vendor for the sale of products and/or services pursuant to the Master Agreement based upon tiered fee schedule below. Vendor’s annual sales shall be measured on a calendar year basis. * Note: Should we be awarded this business, FDSI will require a more detailed definition of “total purchase price paid” in order to ensure we are compensating NCPA appropriately. Annual Sales Through Contract Administrative Fee 0 -­‐ $30,000000 2% $30,000,001 -­‐ $50,000,000 1.5% $50,000,001+ 1% Ø Supplier shall maintain an accounting of all purchases made by Public Agencies under the Master Agreement. NCPA and Region 14 ESC reserve the right to audit the FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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accounting for a period of four (4) years from the date NCPA receives the accounting. In the event of such an audit, the requested materials shall be provided at the location designated by Region 14 ESC or NCPA. In the event such audit reveals an underreporting of Contract Sales and a resulting underpayment of administrative fees, Vendor shall promptly pay NCPA the amount of such underpayment, together with interest on such amount and shall be obligated to reimburse NCPA’s costs and expenses for such audit (not to exceed $2,500). Ø The awarded vendor shall electronically provide NCPA with a detailed monthly or quarterly report showing the dollar volume of all sales under the contract for the previous month or quarter. Reports shall be sent via e-­‐mail to NCPA offices at [email protected]. Reports are due on the fifteenth (15th) thirtieth (30th) day after the close of the previous month or quarter. It is the responsibility of the awarded vendor to collect and compile all sales under the contract from participating members and submit one (1) report. The report shall include at least the following information as listed in the example below: Vendor Name NCPA Report Month or Quarter Entity Name Zip Code State PO or Job # Sale Amount Total ♦ General Provisions Ø This Agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the subject matter hereof, and no other agreement, statement, or promise relating to the subject matter of this Agreement which is not contained herein shall be valid or binding. Ø Awarded vendor agrees to allow NCPA to use their name and logo within website, marketing materials and advertisement. Any use of NCPA name and logo or any form of publicity regarding this contract by awarded vendor must have prior approval from NCPA. Ø If any action at law or in equity is brought to enforce or interpret the provisions of this Agreement or to recover any administrative fee and accrued interest, the prevailing party shall be entitled to reasonable attorney’s fees and costs in addition to any other relief to which such party may be entitled. Ø Neither this Agreement nor any rights or obligations hereunder shall be assignable by Vendor without prior written consent of NCPA. Any assignment without such consent will be void. Ø This Agreement and NCPA’s rights and obligations hereunder may be assigned at NCPA’s sole discretion, to an existing or newly established legal entity that has the authority and capacity to perform NCPA’s obligations hereunder. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Matthew Mackel
Director, Business Development
PO Box 701273
Houston, TX 77270
January 5, 2015
Tab 3 – Vendor Questionnaire Please provide responses to the following questions that address your company’s operations, organization, structure, and processes for providing products and services. ♦ States Covered Ø Bidder must indicate any and all states where products and services can be offered. Ø Please indicate the price co-­‐efficient for each state if it varies. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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♦ Minority and Women Business Enterprise (MWBE) and (HUB) Participation Ø It is the policy of some entities participating in NCPA to involve minority and women business enterprises (MWBE) and historically underutilized businesses (HUB) in the purchase of goods and services. Respondents shall indicate below whether or not they are an M/WBE or HUB Certified. ♦ Residency Ø Responding Company’s principal place of business is in the city of _Westlake Village , State of __California___. ♦ Felony Conviction Notice Ø Please check applicable box; Ø If the 3rd box is checked, a detailed explanation of the names and convictions must be attached. ♦ Distribution Channel Ø Which best describes your company’s position in the distribution channel: Third party logistics provider ♦ Processing Information Ø Provide company contact information for the following: § Sales Reports / Accounts Payable Contact Person: Reva Alcantar Title: Director of Client Services Company: FDSI Logistics Address: 5703 Corsa Avenue FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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City: __Westlake Village Phone: _818-­‐971-­‐3300 x 2400 §
§
State: _California Zip: _91362 Email: [email protected] Purchase Orders Contact Person: Reva Alcantar Title: Director of Client Services Company: FDSI Logistics Address: 5703 Corsa Avenue City: __Westlake Village State: _California Zip: _91362 Phone: _818-­‐971-­‐3300 x 2400 Email: [email protected] Sales and Marketing Contact Person: Greg Hamilton Title: Director of Marketing Company: FDSI Logistics Address: 5703 Corsa Avenue City: __Westlake Village State: _California Zip: _91362 Phone: _818-­‐971-­‐3300 x 2451 Email: [email protected] ♦ Pricing Information Ø In addition to the current typical unit pricing furnished herein, the Vendor agrees to offer all future product introductions at prices that are proportionate to Contract Pricing. § If answer is no, attach a statement detailing how pricing for NCPA participants would be calculated for future product introductions. □ Yes □ No Ø Pricing submitted includes the required NCPA administrative fee. The NCPA fee is calculated based on the invoice price to the customer. □ Yes □ No Ø Vendor will provide additional discounts for purchase of a guaranteed quantity. □ Yes □ No FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Tab 4 – Vendor Profile Please provide the following information about your company: ♦ Company’s official registered name. FDSI Logistics, LLC, a Delaware Corporation ♦ Brief history of your company, including the year it was established. FDSI Logistics was founded in 1985 with freight management being our core competency. FDSI has had success in several different industries including, but not limited to, hospitality, energy, project management, manufacturing and distribution. In 2002, FDSI created a customizable turn-­‐key freight management solution for the healthcare industry to assist hospitals and related facilities reduce freight costs, increase control and increase transparency. Recognizing the value and success of our freight management program, FDSI entered the Education market and now offers our knowledge and experience to colleges, universities and K-­‐1. Additionally, FDSI is offering our freight management program to municipalities, governmental departments and state entities. FDSI continues to evolve our business and invest heavily in technology and in new service lines to enhance our model of freight cost savings and control improvements for our customers. As freight volume continues to grow through our managed program, FDSI is able to aggregate our national and international freight volume to renegotiate our pricing structure with the carriers utilized in our program. In turn, we are able to consistently provide competitive pricing to our client partners. FDSI continues to pursue maximum supplier compliance, resulting in maximum savings for our client partners. FDSI continually helps to educate client contracting and purchasing staff, as well as other regional, state and national contracting personnel with the aim of achieving the most advantageous freight terms for our clients. ♦ Company’s Dun & Bradstreet (D&B) number. 608-­‐675948 ♦ Company’s organizational chart of those individuals that would be involved in the contract. Below is a copy of our 2014 Organization Chart for 2014 and the names and titles of everyone who will be supporting NCPA. A full size copy is included at the end of this section (Tab 4). FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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♦ Corporate office location. Ø List the number of sales and services offices for states being bid in solicitation. FDSI’s corporate offices are headquartered in Southern California and we have seven regional sales and service offices throughout the USA. • Westlake Village, California (Corporate HQ) • Boston, Massachusetts • Rochester, New York • New York, New York • Springfield, Illinois • Nashville, Tennessee • Charlotte, North Carolina • Phoenix, Arizona Ø List the names of key contacts at each with title, address, phone and e-­‐mail address. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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The key contacts at our corporate offices are listed below. Additional contacts are provided on our organizational chart above and a full size copy is included at the end of this section (Tab 4). FDSI Logistics – Corporate HQ 5703 Corsa Avenue Westlake Village, California 91362 www.fdsi.com David Kolchins President Tel # 818-­‐971-­‐3300 x 2418 E-­‐mail: [email protected] Gary Galloway President – Healthcare Division Tel # 818-­‐971-­‐3300 x 2397 E-­‐mail: [email protected] John Hudson President – Business Development Tel # 818-­‐971-­‐3300 x 2348 E-­‐mail: [email protected] Jonathan Kernya VP of National Sales Tel # 818-­‐971-­‐3300 x 2424 E-­‐mail: [email protected] Rui Guimarais CFO Tel # 818-­‐971-­‐3300 x 2325 E-­‐mail: [email protected] Reva Alcantar Director of Operations – Client Care Tel # 818-­‐971-­‐3300 x 2400 E-­‐mail: [email protected] Gina Ortiz Director of Operations -­‐ Billing Tel # 818-­‐971-­‐3300 x 2374 E-­‐mail: [email protected] Kim Kremer Senior Manager – Field Operations Tel # 502-­‐468-­‐3944 x 2369 E-­‐mail: [email protected] FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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FDSI’s regional sales and service contacts and office details are listed below. David Maynes On-­‐Site Transportation Coordinator URMC 44 Celebration Drive, Suite 2.200 Rochester, New York 14627 Tel # 585-­‐276-­‐6263 E-­‐mail: [email protected] Kristoffer Smith On-­‐Site Transportation Coordinator New York Presbyterian 333 East 38th Street, 10th Floor New York, New York Tel # 212-­‐585-­‐6941 E-­‐mail: [email protected] Martin Gollogly On-­‐Site Transportation Coordinator Children’s Hospital Boston 300 Longwood Avenue Boston, Massachusetts 02115 Tel # 617-­‐724-­‐9717 E-­‐mail: [email protected] Martin Gollogly On-­‐Site Transportation Coordinator Partners Healthcare 529 Main Street Charlestown, Massachusetts 02129 Tel # 617-­‐724-­‐9717 E-­‐mail: [email protected] Michael Cowan On-­‐Site Transportation Coordinator UMPC US Steel Tower 600 Grant Street, Floor 59 Pittsburgh, Pennsylvania 15219 Tel # 412-­‐647-­‐9739 E-­‐mail: [email protected] Swan Sommerio On-­‐Site Transportation Coordinator Rush University Medical Center 1700 W. Van Buren Street, Suite 103 Chicago, Illinois 60612 Tel # 312-­‐942-­‐7495 E-­‐mail: [email protected] FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Kim Kremer Senior Manager, Field Operations 1861 Douglass Blvd. Louisville, KY 40205 Tel # 502-­‐468-­‐3944 E-­‐mail: [email protected] Rhonda Randall On-­‐Site Transportation Coordinator ROi 2909 N. Neergard Springfield, Missouri 65803 Tel # 417-­‐820-­‐3765 E-­‐mail: [email protected] Rhonda Randall On-­‐Site Transportation Coordinator Sisters of Mercy Corporate Plaza 14528 S. Outer 40 Road, Suite 100 Chesterfield, Missouri 63017 Tel # 417-­‐820-­‐3765 E-­‐mail: [email protected] Kip Deal On-­‐Site Transportation Coordinator Vanderbilt University 110 21st Avenue South, Suite 1110 Nashville, Tennessee 37203 Tel # 615-­‐875-­‐9182 E-­‐mail: [email protected] John Sheffield Field Operations Manager Novant Corporate 119 Brookstown Avenue Winston-­‐Salem, North Carolina 27101 Tel # 704-­‐361-­‐0400 E-­‐mail: [email protected] Caleb Sheffield On-­‐Site Transportation Coordinator Novant Logistics Center 1578 Roger Dale Carter Drive Kannapolis, North Carolina 28081 Tel # 704-­‐796-­‐6930 E-­‐mail: [email protected] Kuri Charity On-­‐Site Transportation Coordinator FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Banner Health Support Services 7300 W. Detroit Street Chandler, Arizona 85226 Tel # 602-­‐747-­‐1522 E-­‐mail: [email protected] In addition to the support we provide via our corporate HQ and our regional offices, FDSI will assign a dedicated field sales rep to your account and in the event that specific traffic volume and revenue targets have been achieved, we will place an on-­‐
site coordinator in a location convenient for NCPA to provide local and primary support. More detail on this Onsite Coordinator position is in Tab 8: Value Added Products and Services. ♦ Define your standard terms of payment. Our standard terms of payment are Net 10 days which are aligned with standard payment terms of carriers as FDSI pays the carrier invoices on behalf of our clients. Due to the nature of the invoice cycle, in which FDSI receives the invoice for all freight transaction approximately one week to ten days after pickup, and then requires approximately five business days to audit and allocate the invoice before submitting to the client for reimbursement, our Net 10 terms afford our customers almost 30 days from the date of each transaction until payment is due. ♦ Who is your competition in the marketplace? Vantage Point Logistics and Triose. ♦ What differentiates your company from competitors? With over $350 million in annual freight spend under management and almost 30 years of logistics experience, FDSI is the industry leader in Inbound Logistics management. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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FDSI has extensive experience in providing freight management services to multi-­‐facility networks spanning entire states, and for some clients, the entire country for multiple industries. We work with over 300 clients of varying sizes from both large and small stand-­‐
alone institutions to large Integrated Delivery Networks (IDNs) or multi-­‐facility networks. The scope of our programs vary from simple inbound and outbound freight management for a single entity to sophisticated and complex programs designed and implemented to accommodate multiple entities that require cost allocation across hundreds of cost centers per invoice. FDSI’s logistics programs are designed to meet the requirements of the client and we have successfully implemented programs in which the multi-­‐facility client is centralized for procurement and AP and where a multi-­‐facility client is decentralized and each individual entity, and in some cases each individual cost center, are handled as stand-­‐alone clients. The decision of how the program is implemented is driven from the client’s perspective. Below are some additional advantages FDSI will offer the NCPA: 1. Supplier Benchmarking Process: Comparing the cost your suppliers are currently charging to FDSI’s discounted rates allows us to quantify actual savings. Using supplier invoices that provide a separate line item for shipping costs, FDSI is able to evaluate and validate the impact our freight management program will provide our clients. FDSI also conducts a benchmark analysis for high dollar suppliers with direct freight costs on invoices to confirm savings. 2. Driving and Maximizing Supplier Compliance: FDSI thoroughly reviews the vendor freight payables data to identify suppliers that will comply with the program and categorize them as one of three types: Compliant (no issues); Note on PO (need to provide notes on the PO as the supplier does not have the ability to put permanent notes in their system or conform to routing instructions where there are multiple ship-­‐
to locations); and Review (suppliers that charge 3rd party handling fees or have other issues requiring the customer’s review prior to implementation). FDSI’s implementation process includes ongoing communication with suppliers to confirm and document implementation. FDSI continues to communicate with suppliers until all suppliers that have been identified for the program have been implemented. Once implemented, FDSI continually monitors all suppliers to ensure they are following the FDSI Routing Guide and are shipping through the program. This is an ongoing process. FDSI requests Vendor Freight Reports from our customers every six months so we can implement new suppliers and identify suppliers whose volume has increased. This review also allows us to implement suppliers that may have previously been non-­‐
compliant or had issues that put them in the Review category (or un-­‐implement suppliers that may have added a 3rd party handling fee or otherwise disqualified themselves). FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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With over 9,000 shippers current in our database, FDSI maintains the industry’s largest pool of compliant suppliers. We use this network of vendors to achieve the maximum possible supplier compliance percentage for our clients. With a greater percentage of vendors shipping through our program, FDSI is able to offer a greater savings potential for our clients. The protocols FDSI has in place ensure that we will continue to drive compliance and increase value and savings potential for our clients throughout the life of the program. Implement only Cost-­‐Effective Suppliers: Some suppliers charge less for shipping than any 3PL. Other suppliers charge 3rd party handling fees which are exorbitant and therefore should not be implemented into the program. In some instances, our clients have pre-­‐negotiated, contracted shipping charges that are less than what a 3PL can offer. FDSI identifies these suppliers and works with the client on to ensure only cost-­‐
effective suppliers are routed through the program, while simultaneously working with the client to negotiate and eliminate 3rd party handling fees. Quantifying and Measuring Actual Savings: Through our clinical benchmarking process, FDSI is able to quantify actual savings, not just estimates. Quarterly Business Reviews: FDSI provides quarterly business reviews to evaluate the status of the program, identify areas for further savings opportunities and address our client partners’ needs. These business reviews will be held on an ongoing basis throughout the life of the partnership. Seamless Implementation Process: FDSI works very hard to provide its client partners with a seamless implementation process. FDSI will work with the NCPA to obtain the necessary information and items needed during the pre-­‐implementation stage, while providing assistance throughout the entire implementation process. Our goal is to implement quickly and efficiently, with very few NCPA resources required. Qualified Regional/Onsite Coordinator(s): With accounts that have particularly high shipping volume and complexity, FDSI will provide an on-­‐site coordinator to help support the program and our clients. This division of FDSI operates in conjunction with the operations team at our home office and is subject to independent management and oversight that reports directly to our executive team. These Coordinators are full-­‐time, FDSI employees, dedicated to specific client accounts. The Regional/Onsite Coordinator(s) are assigned once shipping volume reaches qualified levels. The following are some of the responsibilities that the FDSI coordinators are responsible for: 1) Act as a liaison between facility and FDSI, 2) Provide ongoing supplier benchmarking, 3) Direct contact with suppliers to drive compliance, 4) Perform PO matching/GL coding to ensure the accuracy of department level cost allocation if required, 5) Ongoing review of savings and savings opportunities/mode optimization, 6) Educate and train internal users on best shipping practices, 7) Provide capital equipment and project management assistance to capture additional savings Logistics Consulting: FDSI provides on-­‐site consulting to assist its client partners in maximizing their savings, provide education and training on best shipping practices, FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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mode optimization, utilization of our on-­‐line tools (FIR, Outbound Tool, etc.) and assistance with capital moves or any other logistics related issues 9. FDSI Logistics Alumni Shipping Program: FDSI Logistics Alumni Shipping Program is new way to connect with your school’s Alumni groups, save them money, and give them an easy way to give back to their school. The Alumni Program consists of a web portal accessed through FDSI’s website that will give your Alumni an easy and intuitive outbound shipping label creator. This label creator gives them the ability to easily print shipping labels from anywhere, and also gain access to a discount available through FDSI. Additionally, a portion of the savings we pass on to your alumni that use the program will be given back to the NCPA. By using FDSI’s program, your school’s Alumni can easily print their own shipping labels from home or anywhere, save a little money, and give back to their school, all in one place. The label generator will accept credit card payments and will be supported by FDSI’s client care team. A one page summary of the program is included at the end of this section (Tab 4). FDSI Alumni Shipping
Program.pdf
The file embedded above can be launched by double-­‐clicking the icon. A paper copy is printed and included at the end of this section in the hardcopy version of this RFP response. ♦ Describe how your company will market this contract if awarded. FDSI will work directly with NCPA liaisons to identify all communication channels from which to access member institutions. FDSI will consider utilizing NCPA channels if they are made available. Some examples: •
•
•
NCPA website. FDSI will set up a short page or paragraph describing our services and providing contact information NCPA newsletters NCPA member emails FDSI will request contact information for a lead at each institution and we will first introduce ourselves through an introductory email stating that we have won the contact (should we be chosen as the NCPA preferred vendor) and will provide introductory information about FDSI, and inform the lead contact that a member of FDSI’s sales team will be reaching out to them. We will follow the introductory round of emails up with phone calls directly to the contacts we are provided. ♦ Describe how you intend to introduce NCPA to your company. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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We are strong believers in Cooperative Purchasing and the award of this contract will be an integral part of all our sales initiatives. Internal training will be afforded to all members of our team and full accountability for that activity will be realized. Top-­‐of-­‐Mind presence is crucial to the success of any program, whether externally to the customers (members) or internally to our sales team. FDSI will first conduct a review of NCPA member organizations and locations. This will be followed up by an internal meeting with FDSI’s sales team where they will be introduced to the NCPA and the marketing plan to approach NCPA members. We will set internal goals related to member outreach and implementation in order to ensure we are providing the benefit of our services to as many members as possible. Additionally, FDSI will conduct a separate internal meeting with our implementation and client care staff in order to introduce the NCPA and prepare for upcoming implementations. As sales contacts are made we will follow our implementation protocols in order to ensure the processes are timely and our NCPA clients begin realizing savings. ♦ Describe your firm’s capabilities and functionality of your on-­‐line catalog / ordering website. Our website is www.fdsi.com As a non-­‐asset based third party logistics provider, FDSI Logistics does not offer a catalog on our website but we do offer our customers a full suite of tools, services, and a wealth of reporting capabilities online. Full details on our website functionality are listed in Tab 8 of this proposal. ♦ Describe your company’s Customer Service Department (hours of operation, number of service centers, etc.) The NCPA will have access to all FDSI management-­‐level staff members on a daily basis, as well as the Customer Service Leads. The NCPA will have an open line of communication with the FDSI team at all times. Not only will the NCPA have access to any Regional or On-­‐site personnel in place, but the West Coast Customer Service Leads are available throughout the week, 6:00 a.m.-­‐6:00 p.m. Pacific time. East Coast Senior Management is available 8:00 a.m.-­‐
5:00 p.m. Eastern time throughout the week. FDSI’s IT infrastructure (servers, data storage, remote backup and auxiliary power supply) operates 24/7/365 with full encryption and remote, redundant backup for disaster preparedness. We have an in-­‐house staff of six full time programmers and our IT management is available to the NCPA on an as-­‐needed basis. When the NCPA has any shipping related issues or questions, direct phone, fax, or email contact with FDSI Customer Service will be responded to immediately. Resolution of the issue may involve vendor or audit research. These events are commonly reconciled within 24 hours by FDSI staff, and reported back to our clients promptly. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Additionally, in an attempt to preempt issues and ensure uninterrupted service, FDSI communicates emergency notifications and potential service delays by monitoring the FedEx website for notices of any major issues that may affect service quality, including adverse weather issues, and we immediately notify our customers via email. Since FDSI Logistics has been an industry leader in inbound and outbound logistics management for many years, we have used this process to anticipate and eliminate the most common problem types before they interrupt service to our customers. ♦ Green Initiatives Ø As our business grows, we want to make sure we minimize our impact on the Earth’s climate. We are taking every step we can to implement innovative and responsible environmental practices throughout NCPA to reduce our carbon footprint, reduce waste, energy conservation, ensure efficient computing and much more. To that effort we ask respondents to provide their companies environmental policy and / or green initiative. As a non-­‐asset based third party vendor FDSI has the latitude to work with qualified vendors who have their own environmental initiatives. Our primary small package vendor is FedEx Express, and they are dedicated to sustainability via their Green Power and EarthSmart initiatives. Summary details from FedEx are below. FedEx Express Green Power At FedEx, green power starts with energy conservation at our facilities, offices and retail locations. We continue looking for ways to conserve energy in our facilities. For instance, we use: • Electric energy to keep our lights on, run our package sorting systems, run our copying and printing equipment, and cool and heat our facilities. • Natural gas and fuel oil to heat our facilities. FedEx Freight has developed a custom-­‐facility lighting solution that reduces energy consumption by up to 93 percent. These progressive lighting solutions have been installed at 114 service centers throughout the United States. As an Environmental Protection Agency (EPA) Energy Star partner, FedEx Freight team members have also changed over 11,000 traditional bulbs for energy-­‐
efficient compact fluorescent (CFL) bulbs and prevented approximately 4,973,000 lbs. of GHG emissions since beginning the Energy Star campaign. FedEx Office launched a company-­‐wide conservation program called “Be a Watt Watcher.” A similar awareness campaign was launched across the entire FedEx network. FedEx Express EarthSmart FedEx is committed to providing global connections while minimizing our environmental impact. We have integrated responsible environmental practices into our daily operations, and we continuously set goals that challenge us to increase efficiencies and reduce waste. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Conservation FedEx works with its suppliers and contractors to understand the environmental impacts of the materials we use throughout our business and then works to reduce those impacts. Alternative Energy FedEx supports the growth of sustainable energy use through commitments to renewable power sources in our operations and use of innovative technologies in our transportation fleet. Industry Leadership FedEx strives to be an environmental leader in the transportation industry. We participate in the development of sound environmental policy and the promotion of effective environmental management by our suppliers and contractors. FedEx publishes an annual “Global Citizenship Report” that summarizes their green initiatives and includes the following Key Goals & Progress summary. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Source: http://about.van.fedex.com/gcr2014/pdf/Summary.pdf FDSI knows that when it comes to the environment, our actions speak louder than words. In addition to working with FedEx, we select innovative and environmentally conscious carriers who will exceed our client’s expectations while implementing green initiatives. We strive to do our part in our office environment by reducing our use of paper and toner, recycling office waste paper, bottles and cans, and encouraging our employees to car pool and telecommute. ♦ Vendor Certifications (if applicable) Ø Provide a copy of all current licenses, registrations and certifications issued by federal, state and local agencies, and any other licenses, registrations or certifications from any other governmental entity with jurisdiction, allowing respondent to perform the covered services including, but not limited to, licenses, FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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registrations, or certifications. Certifications can include M/WBE, HUB, and manufacturer certifications for sales and service. There are no federal, state or local certifications required for the logistics industry but our long company history and market-­‐dominant position attest to the integrity of our company and the value generated for our customers by our business model. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Tab 5 – Products and Services/Scope ♦ Respondent shall perform and provide these products and/or services under the terms of this agreement. The supplier shall assist the end user with making a determination of their individual needs. FDSI will perform and provide the listed products and services under the terms of this agreement and shall assist the end user with making a determination of their individual needs. ♦ The following is a list of suggested (but not limited to) categories. List all categories that you are responding with: FDSI is responding in the affirmative on all the services listed on the three pages below. After almost 30 years of experience in managing logistics locally, nationwide and globally across a wide variety of industries including higher education, K-­‐12, healthcare, municipalities and governmental agencies, heavy equipment, hospitality, biotechnology, utilities and general merchandise import and distribution, we have extensive and direct experience with all the logistics services listed below. As a non-­‐asset based 3PL we work with hundreds of carriers of all types and with a global network of freight forwarders and logistics providers so we can provide NCPA membership with a world class logistics solution no matter the challenge. ♦ Logistics Services Ø Freight Management Ø Shipping Solutions Ø Comprehensive Transportation Services § Less than Truckload (LTL), Linear Foot / Volume Loads § Van, truckload and Flatbed § Specialty Requirements (Refrigerated, High Security, HazMat, etc.) § Expedited and Guaranteed Services § International – Air and Ocean Ø Online Systems § On-­‐line rate quotes with the following capabilities • Web based site with multiple log in and password capabilities • Ability to generate pricing • Display of quote based on least cost routing Ø Primary Operational Support § Contractor will provide a dedicated service support representative as primary point of contact. § Contract vendors to coordinate shipping specifics § Verify weight, class and piece count with vendor prior to shipment FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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§ Input information into online system § Produce necessary paperwork § Verify pickup with Vendor § Track shipments and notify Shipper of any delays, shortages or damages § Verify Delivery § Audit Freight bills to insure accuracy Ø Quality and Control Program ♦ International Document and Small Package Courier Services Ø Time Definite Services § Express Worldwide • Express services for door to door delivery of international documents or customs non-­‐document shipments by the end of the next possible business day. § Express Envelope • Express door to door export delivery of an international document weighing up to 8 oz. by the next possible business day. § Import Express Worldwide • Door to Door pickup and international inbound delivery of document and non-­‐document shipments. Ø Same Day Services § Jetlines • Door to door mission critical shipment delivery on the next flight out. § Sprintline • Point to point ground transportation delivery of mission critical shipments. § Secureline • Dedicated charter aircraft for unique highest security level shipments delivery. Ø Packaging and Supplies Ø Trade Automation Services Ø Electronic Export Filer Ø Customs Services Ø Other Services § Additional Duties Assessed § Address Corrections § Broker Turnover § Change of Address § Change of Billing Instruction § Continuous Bonds § Copies of Import Documentation § Customs Duty § Customs General order Entry Preparation § Dangerous Goods § Dimensional Weight Divisor § Document Preparation: • Carnet FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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• Certificate of Origin • Commercial Invoice (Pro Forma) • Customs Registration Form CF4455 • Export Validation for Department of State (DOS) Shipments Shipper’s Export Information Declaration Electronic Filing [Export Decl. Electronic Filing (SED)] Shipment preparation Duties and Taxes Paid (DTP) Duty Advancement Emergency Situations Fish & Wildlife Service Charges: • Fish & Wildlife Entry Preparation • Fish & Wildlife Service (F&WS) Application License and Permit Charge • Fish & Wildlife Service (F&WS) Inspection Charge • Fish & Wildlife Service (F&WS) Overtime Charge Food & Drug Administration (FDA) Entry Preparation Fuel Surcharge General Order Warehouse Charge In-­‐bond Transportation Entry CF7512 Internal Revenue Tax Anti-­‐Dumping Duties Countervail Duties Manipulate, Examine, Sample or Transfer Goods Merchandise Processing Mitigation of Penalty / Protest Filing / Voluntary Tender Monthly Service Charge Multi-­‐Line Item Entry Neutral Delivery Service Non-­‐Standard Delivery Non-­‐Standard Pickup Non-­‐Standard Shipment (Excess Limit Weight) Prior Notice Remote Area Service Saturday Delivery FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Tab 8 – Value Added Products and Services ♦ Include any additional products and/or services available that vendor currently performs in their normal course of business that is not included in the scope of the solicitation that you think will enhance and add value to this contract for Region 14 ESC and all NCPA participating entities. FDSI manages over $350 million in annual freight spend and has 30 years of experience in logistics; FDSI is the industry leader in Inbound Logistics management. Below are some highlights of the services we can offer the NCPA. 1. Reduce transportation costs FDSI’s freight management program drives cost savings, and provides transparency and control into our clients’ supply chain and logistics processes. We have a 27 year track record of consistently exceeding client savings and operational improvement goals. Our programs are uniquely designed and customized to meet exacting standards and business requirements by leveraging our industry knowledge, carrier network, and cost optimization tools and techniques. Client implementations are thoroughly defined to ensure success and are measured through our robust business intelligence systems. Our summary case studies and client references provide ongoing confirmation that we continue to drive cost reduction and cost avoidance over long-­‐term client relationships. Additional savings may also be realized through our structured audit, claims management and rate validation processes. 2. Increase operational efficiencies using robust reporting tools Our role as your 3PL is to be nimble, understand the transportation market, and identify and implement forward-­‐looking programs tailored to effectively meet your evolving business needs while reducing costs. This is accomplished through our deep knowledge of the markets we serve and our investment in sophisticated Information Technology application suites. Resulting in custom integration for our clients that helps them improve freight cost visibility and control with minimal IT support from their internal organization. FDSI has hundreds of standard reports and ad-­‐hoc reporting tools available to clients. During the implementation phase, we will identify what level of reporting is required to meet our client’s reporting needs. FDSI’s reporting capabilities allow for standard logistics and cost analytics and can be developed to define extremely robust cost allocations at the Bill of Materials or SKU level to assess profitability and control costs. 3. Exemplary TMS technologies, processes, and resources Our TMS technology and infrastructure support complex global supply chain operations. Specific detailed frameworks and functions are available for client use based on individual client needs. We continuously enhance these systems and processes to support ongoing client and market developments. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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4. Aggressive continuous improvement mindset with solutions that are both measureable and actionable In the competitive logistics market, FDSI is required to constantly evolve its offering to align with changing market conditions and customer demands. We manage this evolution by developing metrics and Key Performance Indicators (KPI) on each account to assess performance against benchmarks and identify relevant forces to monitor and further protect client savings opportunities. Reports are continuously reviewed to control supply chain risk and process variables. 5. Collaborative approach Our value to our clients is fully realized when our mutual interests are aligned and customers are able to achieve or exceed targeted benefits. Our collaborative, practical solutions are sustainable within the context of NCPA’s participating facility objectives and capabilities. We offer a tailored approach that reflects our practice and commitment to simple scalable activities with defined measurable successes. 6. Established global understanding for future expansion opportunities With the globalization of supply chains and markets, we understand the need to support clients’ worldwide logistics needs. We support global operations for most of our industrial clients. Our team of seasoned logistics professionals includes experts with over 30 years of experience working throughout North and South America, Asia, Europe, the Middle East and Africa. 7. Dedicated Specialist and Expertise at FDSI In addition to the International Logistics expertise mentioned above, FDSI team members possess a wealth of industry experience and are all available to the NCPA. • Our Senior Management team has over 220 years of practical logistics experience. • Our Logistics Sales and Management team helped pioneer this specialty market over the last 20 years and today are building the innovations that will be the industry standard in the future. • Our Department Management teams have vast experience in both strategic and tactical implementation of cost and time saving processes that will prove to be very valuable to the NCPA. • Our Regional and Onsite Coordinators are the best in the business and provide the critical link between the customer (NCPA membership) and FDSI to ensure we deliver what we promise. • To back up our management and sales teams, we have a very deep pool of customer service specialists who know the logistics business well and have world class tools and processes on hand to service our accounts. Because our business is growing quickly, we spend a lot of time on training and improving our methods and processes to ensure we have the most capable team members always coming up through the ranks. To summarize, our deep talent pool and pioneering management team, along with our proven freight management programs are ready to provide NCPA both hard cost savings and significant control improvement driving transparency, accountability and soft cost benefits. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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8. Qualified Regional/Onsite Coordinator(s) With accounts that have particularly high shipping volume and complexity, FDSI will provide regional/ on-­‐site coordinator(s) to help support the program and our clients. This division of FDSI operates in conjunction with the operations team at our home office and is subject to independent management and oversight that reports directly to our executive team. These Coordinators are full-­‐time, FDSI employees, dedicated to specific client accounts. The Regional/Onsite Coordinator(s) are assigned once shipping volume reaches qualified levels. The following are some of the responsibilities that the FDSI coordinators are responsible for: 1) Act as a liaison between facility and FDSI, 2) Provide ongoing supplier benchmarking, 3) Direct contact with suppliers to drive compliance, 4) Perform PO matching/GL coding to ensure the accuracy of department level cost allocation if required, 5) Ongoing review of savings and savings opportunities/mode optimization, 6) Educate and train internal users on best shipping practices, 7) Provide capital equipment and project management assistance to capture additional savings 9. Logistics Consulting FDSI provides on-­‐site consulting to assist its client partners in maximizing their savings, provide education and training on best shipping practices, mode optimization, utilization of our on-­‐line tools (FIR, Outbound Tool, etc.) and assistance with capital moves or any other logistics related issues. 10. Clinical Supplier Benchmarking Process FDSI thoroughly reviews the vendor freight payables data to identify suppliers that will comply with the program and categorize them as Compliant (no issues), Note on PO (need to provide notes on the PO as the supplier does not have the ability to put permanent notes in their system or conform to routing instructions where there are multiple ship to locations) and Review (suppliers that charge 3rd party handling fees or have other issues requiring the healthcare system’s/hospital’s review prior to implementation). FDSI also offers to conduct a benchmark analysis for high dollar suppliers with direct freight costs on invoices to confirm savings (refer to PowerPoint slides for examples). 11. Driving and Maximizing Supplier Compliance FDSI’s implementation process includes ongoing communication with suppliers to confirm and document implementation. FDSI continues to communicate with suppliers until all suppliers that have been identified for the program have been implemented. Once implemented, FDSI continually monitors the suppliers to ensure they are following the FDSI route guide, and are shipping through the program. This is an ongoing process. FDSI requests Vendor Freight Reports every six months so we can implement new suppliers and identify suppliers whose volume has increased. This review also allows us to implement suppliers that may have previously been non-­‐compliant or had issues that put them in the Review category (or un-­‐implement suppliers that may have added a 3rd party handling fee, etc.). With the total count now over 9,000, FDSI maintains the industry’s largest list of compliant suppliers. We use this network of vendors to achieve the maximum possible supplier compliance percentage for our clients. With a greater percentage of vendors FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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shipping through our program, FDSI is able to offer a greater savings potential for our clients. The protocols FDSI has in place ensure that we will continue to drive compliance and increase value and savings potential for our clients throughout the life of the program. 12. Implement only Cost-­‐Effective Suppliers Some suppliers charge less than any 3PL. Other suppliers charge 3rd party handling fees which are exorbitant and therefore should not be implemented into the program. In some instances, our clients have pre-­‐negotiated, contracted shipping charges that are less than what a 3PL can offer. FDSI identifies these suppliers and works with the client on to ensure only cost-­‐effective suppliers are routed through the program, while simultaneously working with the client to negotiate and eliminate 3rd party handling fees from the supplier. 13. Quantifying and Measuring Actual Savings Through our clinical benchmarking process, FDSI is able to quantify actual savings, not just estimates. 14. Quarterly Business Reviews FDSI provides quarterly business reviews to evaluate the status of the program, identify areas for further savings opportunities and address our client partners’ needs. These business reviews will be held on an ongoing basis throughout the life of the partnership. 15. Seamless Implementation Process FDSI works very hard to provide its client partners with a seamless implementation process. FDSI will work with the NCPA to obtain the necessary information and items needed during the pre-­‐implementation stage, while providing assistance throughout the entire implementation process. Our goal is to implement quickly and efficiently, with very few NCPA resources required. 16. Capital: Furniture, Fixtures, and Equipment FDSI has developed a significant program to address and reduce the freight cost associated with capital expenditures. Most capital supplier contracts include the freight cost in the F.O.B. delivered price of the product, making the true cost of freight virtually impossible to see. Separating the freight cost from the product cost and making it negotiable is challenging, but successfully doing so can generate significant savings. FDSI’s program will provide the reality check that is necessary to drive substantial savings on capital FF&E, by first requiring suppliers to provide true freight cost. The ability to compare this cost to what the freight could be purchased for directly will often indicate that the supplier’s charge for freight is a percent of the product cost, not the actual freight cost. Once identified, FDSI can provide the necessary pricing to generate savings or validate the vendor pricing as appropriate. 17. Outbound Shipping Typically, inbound freight cost is more significant than outbound freight cost, with exceptions dependent on certain areas of educational focus on campus. However, for a large university outbound freight cost is typically a multiple six-­‐figure number that carries big savings potential. Even mid-­‐size institutions may find that their outbound shipping is usually a six-­‐figure number. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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FDSI will provide a user-­‐friendly web-­‐based outbound shipping tool giving immediate hands-­‐on access to specific features that allow the creation of FedEx or UPS shipment labels from the user’s desktop. In addition to cost reduction, additional benefits include increased control and visibility as well as workflow improvement with invoice auditing and processing. 18. Educational and Speaking Forums As FDSI’s team has a broad knowledge based in the world of freight, with an extensive focus on cost savings opportunities, specifically directed toward universities, school districts, healthcare and research organizations and various procurement departments, we provide educational seminars, one-­‐on-­‐one sessions and forums to help members become aware of “hidden freight costs’ and opportunities to address such. Examples of previous presentations include: Lean Procurement, Best Practices in Freight Management, Freight 101, and Do Inbound Freight Management Programs Really Deliver? Members of our organization have spoken and provided training and educational workshops with purchasing and procurement groups including Mid-­‐
America Council of Public Purchasing (MACPP), Kansas State University, UCLA, UMKC, UCSF, NAOSMM, Arizona Association of School Business Officials Conference (AASBO), Arizona Chapter of NIGP Conference (AZNIGP) and other agencies, departments and procurement associations throughout the US. 19. Alumni Shipping Program FDSI Logistics’ Alumni Shipping Program can provide University alumni an easy way to give back to their Alma Mater and save on every shipment they make, using FDSI’s carrier discounts and easy to use web based virtual shipping tool. Our intuitive program will provide university alumni the ability to create their own shipping labels anywhere they may be…at home, on the road, or at their office. FDSI will provide them a discounted rate on the cost of shipping, and a portion of that discounted rate will be given directly to the university in the form of a quarterly cash rebate. Below are highlights of the program: • Once signed up, the network of alumni would have access to a carrier discount to ship their personal packages throughout the year • FDSI’s program provides an easy to use interface that guides the alumni through the shipping process • FDSI will provide the customer service support directly to the alumni from shipping label creation, payment processing and issue resolution • FDSI will support your Alumni Association in their efforts to maximize the use of resources drive alumni user usage and ensure the program’s success • FDSI will take part in any direct marketing opportunities, as allowed by an institutions association, to reach as many alumni as possible • The approved Institution and the Alumni Association will benefit from a revenue share model so the alumni are aware they are supporting the universities with participation in the program Attached below is a one page summary of the program. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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FDSI Alumni Shipping
Program.pdf
The file embedded above can be launched by double-­‐clicking the icon. A paper copy is printed and included at the end of this section in the hardcopy version of this RFP response. ♦ FDSI’s Mode Optimization Program This process is a key part of the cost savings our program will offer to the NCPA membership. FDSI offers special training and education sessions for buyers to help build awareness on when mode shifting can be utilized to maximize savings. Shortly after the NCPA affiliate has been implemented into the program, FDSI will initiate a business review to identify current delivery modes and where improvements can be made. FDSI also offers an online tool that can be accessed and used at any time to assist the NCPA affiliate member with mode optimization. This tool displays up to the minute shipping information, and the user has the ability to toggle between 0 and 4 days tolerance* in an effort to determine which mode shift is best. A screen shot of the Mode Optimization tool is below. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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*Tolerance is the amount of days a shipment could have been delayed. The following comments are from a customer who has found great success with the FDSI Mode Optimization tool. As a direct result of the mode optimization effort, from January 2013 to May 2013,
the average cost per package for these thirteen vendors dropped 64.7%. This
decrease in the cost per package lowered the overall average cost per package for
all vendors shipping to Banner Boswell by 11.8%. As well, this led to the overall
Ground service level usage increasing by 8.4%, reducing freight expense by 3.75%.
David Tiemeyer
Senior Director, Supply Chain Contracts
Banner Health
A complete copy of Mr. David Tiemeyer’s customer testimonial is attached here: FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Banner Mode Op
Testimonal 082913.pdf
FDSI will also take the time to work with your vendors to ensure they ship using the most cost efficient service level while still meeting delivery times. This request is also made on our vendor routing instructions that FDSI distributes to each targeted vendor. FDSI’s monthly shipment reports provide visibility and information to our clients that allow them to maximize their savings, not only through discounts, but also by instructing their suppliers to ship via more economical methods. The sample customer zone map below shows the top 25 compliant suppliers for Del Mar College (based on 2012 data) and their points of origin relative to a point of destination. This helps provides a high level view of where you can make “mode shift changes” that will significantly reduce the use of premium airfreight costs to ground or a more economical air service. Attached is a full size copy of the sample customer zone map. Sample TX Mode Op
Map.png
FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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♦ Implementation Plan FDSI Logistics Freight Management Program: Implementation Plan and Process As freight management providers, it is FDSI’s responsibility to drive the implementation process from beginning to end. The graphic summary above demonstrates the cyclical nature of the process—we are always working to bring non-­‐compliant and new suppliers into compliant status. A full-­‐size copy of the graphic image above is attached here: FDSI Vendor
Implementation Process.pdf
FDSI provides each supplier with routing guides created specifically for the NCPA affiliate and obtains a Letter of Understanding from each supplier that confirms they will abide by the specific routing instructions. Subsequently, FDSI will audit the supplier shipments to verify compliance and to track volumes vis-­‐à-­‐vis FDSI-­‐NCPA affiliate projections. There will likely be a small number of NCPA affiliate suppliers that will abide by the third party shipping instructions but will also require written shipping instructions on individual purchase orders (these suppliers are unable to make a permanent note in their ordering systems). FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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FDSI provides the IT support to verify that NCPA affiliate Purchasing has the ability to provide 3rd-­‐party shipping instructions on individual POs to assure maximized supplier compliance and savings. FDSI’s Customer Service staff aggressively drives vendor compliance with effective and well-­‐defined automated protocols. Contact is made with the supplier via the FDSI Automated Vendor Registration System to determine one of four levels of compliance: Supplier is able to put permanent NCPA affiliate-­‐FDSI routing notes/account numbers in their system • Routing information needs to be provided on each PO • There are assessorial or additional handling fees for 3rd party shipping. • Supplier refuses to participate in 3rd party shipping; invoices pre-­‐paid freight. Overcoming Supplier Recalcitrance to 3rd-­‐Party Shipping Protocols: When a supplier requires a “note on each purchase order” instructing the supplier to ship via the NCPA affiliate-­‐FDSI account number, FDSI annotates the NCPA affiliates Implementation Update record. NCPA affiliate can then determine its ability to place the FedEx account number/routing on those purchase orders. Those suppliers imposing additional handling fees are brought to NCPA member’s attention with the recommendation to implement or not implement them into the program, after cost savings are considered. FDSI performs a benchmark analysis for these suppliers based upon the amount of the additional handling fees. When the supplier charges an exorbitant fee (for example, a carrier charges a $42 handling fee for 3rd party shipments), we will bring that to NCPA affiliate’s attention and suggest that NCPA affiliate review the supplier contract and/or working with that particular supplier to get the fee waived. Those vendors who refuse to participate as completely non-­‐compliant are so recorded in NCPA affiliate’s Implementation Log. Further contact with these vendors will take place periodically or at the behest of NCPA affiliate as vendor policies do change over time. When FDSI notes vendors who are not currently known as compliant, we immediately contacts those vendors via phone, email, and fax to determine compliance with the NCPA affiliate freight savings program. The results of those contacts are recorded in the appropriate Implementation Logs for further review and collaborative strategy. The rationale for any previously compliant supplier to terminate participation in any client’s savings program generally falls into one of two categories: • The supplier has decided to create a revenue stream by charging freight back to their customer with a built-­‐in profit margin. Eliminating discounted 3rd party shipping rates easily accomplishes that if the customer fails to prevent it. • The supplier has changed internal accounting programs rendering automation of 3rd party account numbers impossible, and the supplier will not process shipments or freight instructions manually. Below is a copy of the FDSI Implementation Task List: •
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Pre-­‐Implementation (within 4 weeks) • FDSI conducts a Pre-­‐implementation meeting and conference call with the NCPA member’s Materials Management/Supply Chain Management and Purchasing teams to: o Briefly review implementation, billing and invoice processes o Review NCPA member’s requirements and/or customization requests o Provide next steps • FDSI provides: o Credit application FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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o Letter of Agreement o Vendor Letter o Carrier Letter • NCPA member provides: o Signed Letter of Agreement o Credit application information o Contact information for all parties involved o Signed Vendor/Carrier Letters o NCPA affiliate account numbers o List of valid ship to locations • FDSI conducts a 2nd Pre-­‐implementation meeting conference call with AP, Purchasing and IT to: o Confirm all necessary documentation has been submitted o Review billing and invoicing processes in detail o Coordinate with NCPA affiliate AP regarding invoicing requirements and AP creation o Coordinate with NCPA affiliate IT regarding PO file creation and requirements o Select a tentative start date • FDSI conducts a final Pre-­‐Implementation conference call to: o Confirm testing for both PO files and AP invoicing have been completed o Finalize any customization requirements o Finalize start date Implementation (4-­‐6weeks): • FDSI sends routing instructions to each participating supplier along with a Letter of Understanding (LOU) confirming their compliance. FDSI receives the signed LOU from the supplier and stores on file. • FDSI follows up with each supplier to confirm they have received the request and will abide by the routing instructions. • FDSI will provide weekly Implementation Updates that track the progress of implementation and the date the supplier has confirmed. Post Implementation (2-­‐3 weeks): • FDSI will deploy supplier compliance audit tool to monitor shipping activity and volume for all implemented suppliers. • NCPA affiliate will notify FDSI if any implemented supplier is charging freight on the product invoice. o If a supplier violates the routing instructions, FDSI will pursue the supplier for credit. o FDSI recommends spot checking several invoices from implemented suppliers throughout the first 30-­‐60 days of the program’s start date. • NCPA affiliate will provide FDSI with an updated freight payables report to perform an audit of freight charges every 6-­‐9 months after implementation. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Reporting, Education and Training (8 weeks after implementation): • FDSI provide access to our proprietary virtual coordinator, including our proprietary Freight Intelligence Tool, to provide detailed reporting broken down by supplier and service type and identify additional saving opportunities through Mode Optimization. • After eight weeks in the program, FDSI will provide educational sessions with end users at the locations. During these sessions conducted by the full-­‐time, onsite resource (OSTC), FDSI will use NCPA affiliate-­‐specific data to identify trends and present specific examples where mode optimization can bring additional cost reduction to the overall freight spend. Once the PO feed is created and automated, there will be minimal to no requirement from NCPA member’s IT team. With the full time, onsite resources FDSI is offering at no cost to NCPA members, there will be virtually no resources required from NCPA member teams to support and maintain the program. There is no additional cost or fee for the onsite resource or any other service outlined in this proposal. ♦ Critical Factors for Successful Implementation Critical factors for a successful implementation include: • Cooperation of NCPA in helping provide FDSI with necessary vendor information (i.e. customer account numbers) • Allow FDSI to access, via our On-­‐Site Transportation Coordinator (if volume warrants one), vendor invoices, account numbers, etc. • Ability to note FDSI shipping account instructions on Purchase Orders Factors that could delay a successful implementation include: • Vendor delay in inputting routing instruction into their system • Vendor delay in returning signed Letter of Agreement ♦ Roles and Responsibilities for Successful Implementation Throughout the vendor implementation process, FDSI will support NCPA with the following: • Provide all required pre-­‐implementation documents, SOPs, contact details, passwords and login instructions • Conduct conference calls with AP team members for purposes of review and confirmation of the implementation process, purchase order audit billing requirements, and billing/payment protocols • Transmit routing instructions to all participating suppliers • Maintain consistent contact with all suppliers until implementation is completed • Conduct confirmation of shipping reviews and updates of all compliant suppliers • Publish and transmit weekly implementation status updates for NCPA FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Audit and review weekly invoice files, matching Facility PO file with each shipment Create and transmit weekly freight invoices Compile and transmit monthly savings reports Conduct training sessions for Facility staff in the use of FDSI’s web-­‐based Virtual Coordinator, the outbound shipping tool, and mode optimization strategies • Conduct quarterly business reviews • Provide consulting as required by NCPA AP team FDSI will rely upon NCPA and your AP team for the following: • Provide FDSI with all conformed documents, including credit application information • Provide roster of current Facility team members with contact information • Inform FDSI of all Facility billing and shipping addresses • Provide Facility customer account numbers for the suppliers to be implemented • Create PO files for testing and approve AP files as required • Transmit weekly PO files to FDSI as required • Review any invalid POs from weekly shipment files and provide GL codes as appropriate • Review, approve and pay FDSI weekly invoicing • Periodically spot-­‐check supplier product invoices to verify that no freight charges appear • Email (or fax) any questionable invoices bearing freight charges to FDSI for review and credit processing • Review monthly savings reports and participate in business review meetings. Any additional support required by NCPA and your AP team will be accommodated by FDSI to ensure the success of this program with the minimum amount of stress on your organization. FDSI will assign a dedicated customer service representative and a dedicated billing representative to your account. These team members will be able to help at any time with vendor implementation, invoicing discrepancies, questions and any concerns. You will also have local support for onsite training and troubleshooting not just during implementation but for the duration of the logistics management contract. In addition to your front line customer service and operations support, our entire staff of Higher Education logistics professionals are available to you via an escalation map provided to the NCPA members upon implementation. •
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♦ Reporting FDSI’s online Freight Intelligence Reporting (FIR) tool provides a customized, user-­‐
friendly method to view up-­‐to-­‐date reports on your facilities’ shipping activity and costs 24/7. Some of the more popular reports are: • Freight spend and/or savings by carrier FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Freight spend and/or savings by shipment type Freight spend and/or savings by vendor/shipper Shipping frequency by mode, vendor, or carrier Service level efficiency reports Historical summaries Geographic analysis Your freight metrics dashboard We can GL code all your invoices to your exact specifications and provide reports at all levels, from system wide overviews that cover the entire NCPA system participants, down to the department or project level at a specific facility. The detail is driven by the granularity of the GL codes you wish to use. § Reports can be created for any date range: from the very first shipment sent using your FDSI issued FedEx account to a breakdown of detailed shipping activity for last week. § All reports and data can be exported from the tool to a detailed Excel spreadsheet; which outlines everything from tracking numbers for each and every shipment to a bottom-­‐line savings amount from FDSI’s discount rates. § In order to provide continued Mode Optimization (“shipping smarter”), the FIR has an option to view activity from top vendors from each state, including service level percentages and costs; creating the potential to realize immediate opportunity for savings. § A straightforward, easy to read summary of all small parcel and LTL/TL shipping; including average cost per pound, per shipment, and total savings for the specified time frame is available for your review anytime. Accessed 24/7 via the Virtual Coordinator, the FIR tool provides a wide range of powerful, real time, user-­‐specified reports and data intelligence analysis. You can view a demo by double-­‐clicking on the file below. Runtime is two minutes and eight seconds. FIRshortFinal.mp4
This file cannot be viewed in the
paper version of this RFP response.
Below are several screenshots of our online intelligence reporting tool or FIR.
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♦ Custom Online Tools FDSI’s suite of customizable online tools are accessed via password-­‐protected services at the Virtual Coordinator portal on our company website as shown in the screen shot below. FDSI Freight Intelligence Reporting Tool Accessed 24/7 via the Virtual Coordinator, the Freight Intelligence Reporting tool (FIR) provides a wide range of powerful, real time metrics and reports including the following: Freight savings over a given time period… FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Shipment frequency… Service level efficiency… Historical summaries… FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Geographic analysis… Metrics dashboards… FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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♦ Reporting Capabilities FDSI will receive EDI tracking information from all participating carriers in the NCPA affiliate freight program. The FDSI web portal, the Virtual Coordinator™, displays the current status of each shipment in real-­‐time as the shipment tracking updates are received by the carriers. Shipment status can be viewed by searching for shipments individually by tracking number or client PO, or can be viewed in groups filtered by vendor, destination, city, zip, etc. Because of its user-­‐friendly interface, reliability, and real-­‐time functionality, most FDSI clients access the data and reporting tools provided in the online Virtual Coordinator™. FDSI will also provide periodic reports on an ad-­‐hoc basis per NCPA affiliate requests to our reporting and analysis department. Recurring or customized reports can also be added as a permanent feature to an encrypted page on the Virtual Coordinator. FDSI’s freight management reporting is provided weekly, monthly, quarterly, and annually. All reports are exportable and are constantly monitored by dedicated client care account managers. All weekly allocation, invoice reconciliation, and billing data is provided to NCPA affiliate Purchasing, IT, and AP teams as required. Reports and analyses are available online on demand, or are provided with direct FDSI staff contact or in person by your on-­‐site freight management coordinators. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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♦ Mode Shift Analysis Below is a screen shot of a vendor and shipment summary utilized in a “mode shift” analysis. FDSI’s monthly shipment reports provide visibility and information to our clients that allow them to maximize their savings, not only through discounts, but also by instructing their suppliers to ship via more economical methods. This sample customer zone map reflects the top 25 customers receiving at sample regional facilities, with their points of origin relative to shipping destinations. This provides a high level view of where “mode shift changes” will significantly reduce the use of premium airfreight costs to ground or a more economical air service. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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♦ Key Audits and Reporting Tools and Processes Price Audits FDSI has system controls in place that will automatically review each shipment when it is received in the weekly EDI feed from the carrier. This ensures that the pricing is correct when NCPA receives the invoice. FDSI’s pricing structure can easily be validated through auditing and monitoring of reports. All pricing models described in this proposal are applicable to individual freight transactions. Invoices and reporting are supported by line item detail available to our clients by way of weekly AP files submitted with invoices and real time access to reporting on our Virtual Coordinator. In addition to the multiple layer audits FDSI conducts on each invoice and individual transaction to ensure shipment validation and pricing accuracy, the line item detail provided include the pertinent freight data to determine published carrier cost and the resulting FDSI cost after applying agreed upon discounts and all carrier accessorial fees are identified by transaction. Hidden Freight Costs FDSI audits all your freight invoices for hidden costs. Our audit system will flag any invoices with freight charges added or assessorial charges that are not applicable or are not discounted properly. The NCPA Affiliate and FDSI will work together in narrowing down any hidden freight costs billed by the shipper by pulling invoices with PPA (pre-­‐pay and add) charges other than product. FDSI will pursue information and possibly credit on the NCPA affiliate’s behalf. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Carrier Service and assessorial charges Carrier service and delivery time is automatically audited based on the dispatch date and time, carrier scan activity and POD details. Any variance from standard is flagged for review with the carrier and possible credit. Assessorial Charges All charges and shipment information, including assessorial, service levels and fuel surcharges, are broken out on our invoices from the carrier which allows us provide a thorough audit. Any price discrepancies or service delivery failures are immediately remedied and either rejected from the customers invoice or disputed and later reimbursed or credited. ♦ Activating and Expanding Suppliers At the start of implementation, FDSI requests a freight payable report (FPR) or add-­‐on cost report from the client to identify the suppliers our client is working with and to ultimately to identify which suppliers are compliant with the program. This report is the starting point for FDSI to identify the suppliers our clients are working with and to determine how much money is spent with each supplier on an annual basis. By conducting this analysis, FDSI can estimate savings for our clients. If the client is transitioning from another 3PL we will also ask for at least one months’ worth of invoicing so we can identify additional vendors to implement. 1) With the FPR, FDSI identifies all known compliant vendors, through a process we call “Vendor Match”, contacts unknown vendors to determine compliance ability and then adds the non-­‐compliant vendors to targeted vendor implementation list for regular follow up. Below are the supplier compliance levels used during the Vendor Match Process and a sample FPR & Vendor Match FDSI recently performed for a Texas Higher Education Institution. Vendor Match Compliance Levels • Compliant: The supplier is able to permanently store NCPA’s FedEx account number and routing instructions in their system, thus automating the process. • Compliant (Note on PO): The supplier is compliant, but due to system capabilities or protocol, the FedEx account number and routing instructions must be provided by NCPA on each purchase order. • Unknown: The supplier is unknown to FDSI at this time. Prior to submitting the proposal, FDSI researched as many “unknown” suppliers as possible to determine compliance factor. Any remaining “unknown” suppliers will be determined prior to implementation. FDSI is typically able to convert 70-­‐
80% of the “unknown” suppliers to compliant suppliers. • N/A: FDSI does not consider the identified dollar amount on the Freight Payables Report as true freight spend. Although there are several determinants in this classification, the most common are that the supplier can be considered a distributor and the resulting fees can be associated with FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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distribution fees; or the supplier owns and operates their own delivery fleet and does not use commercial carriers. While some of the freight spend within the N/A category may apply to the program, FDSI carves these amounts out, so as not to skew the savings projections in this proposal. Non-­‐Compliant: The supplier refuses to participate in any 3rd party shipping program and will continue to invoice as Pre-­‐Pay and Add (PPA). Sample Freight
Report and Vendor Match.xlsx
a. Objective: Maximum number of compliant vendors. b. Timeline: 1 week 2) FDSI sends out vendor routing instructions that consist of a Vendor Authorization letter, an official FDSI Vendor Shipping Guideline (providing shipping account information and clear shipping instructions) and a Letter of Understanding confirming the agreement to comply. We request a signed confirmation to be returned. (See sample documents below). a. Objective: Confirmation of vendor compliance. b. Timeline: 1 business day Vendor Letter.doc
Route_Guide.pdf
Letter_of_Understan
ding.pdf
3) FDSI follows-­‐up via personal contact with any non-­‐responding vendors to complete implementation. a. Objective: Confirmation of vendor compliance. b. Timeline: 2-­‐ 4 weeks 4) FDSI sends weekly updates to client providing details of progress throughout implementation process. a. Objective: Track progress of implementation and confirmation dates. b. Timeline: Weekly/ongoing throughout implementation process. 5) FDSI sends weekly updates to NCPA participants on the implementation progress via email. This will also include information on vendors that may require assistance from the NCPA participant. FDSI will also conduct an audit and comparative benchmark analysis of each NCPA member’s current supplier freight charges appearing on product invoices. This will account for a majority of the total inbound freight spend. With a copy of the individual supplier’s product invoice that identifies freight as a separate line item, FDSI determines actual supplier freight cost assessed via pre-­‐pay FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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and add methods. We then compare this cost to the aggressively-­‐discounted landed cost provided to the NCPA through FDSI’s program, as well as benchmarked against the published market carrier cost. The results establish a baseline by supplier to track actual savings. Upon completion of the benchmark analysis, FDSI and the client agree on which ratio to track against, allowing for a sustainable matrix throughout the duration of the partnership. Included is an attachment of a sample benchmark analysis. Sample
Benchmark.pdf
After the initial implementation, FDSI continuously works to activate and certify new and non-­‐compliant suppliers. This as an integral part of the process and allows FDSI to grow the program. FDSI views implementation as an on-­‐going process. We will conduct business reviews every six months. As a part of these meetings we will ask for our client’s most current FPR where we a) identify new [unknown] vendors not found on the previous report and b) review entire list for onboarding previously Non-­‐Compliant suppliers. As always with the unknown suppliers, we will make contact to identify compliance statuses and implement and compliant suppliers into the program. FDSI follows this policy with all of our clients and we continuously add new vendors to the program increasing its value to all of our clients. This entire process is driven and managed by the FDSI/NCPA Regional/On-­‐Site Transportation Coordinator with support from FDSI's Client Care team. ♦ Implementation Management System FDSI provides an Implementation Management System (IMS) which automates supplier activation. The IMS also monitors compliance and shipping volume to ensure that each implemented supplier is shipping according to their previously determined freight spend. IMS Benefits include the following: • Ease of use • Digital tracking • Automated/automatic supplier follow-­‐up • Automated/automatic shipment monitoring • Stores customer account numbers • Stores supplier comments/notes • Exports snapshots of supplier implementation status Additionally, as a direct result of the feedback we received from our clients, FDSI has developed the Vendor Implementation Search Tool that can be accessed through the FIR. This web-­‐based tool allows our clients to have real-­‐time access and visibility of their implementation and it allows our clients to: FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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1. ADD or REMOVE vendors from your shipping program 2. View status of past and current vendor implementations 3. Verify shipping activity of implemented vendors Adding or removing vendors is very easy with a point and click. The tool automatically notifies your account manager(s) so they can make the appropriate change on your implementation. As we update implementations on a biannual basis (referred to in response 1.7.2) this allows any new vendors you do business with between that time and FDSI’s implementation update, to be implemented into the program. ♦ Monitoring Supplier Compliance Driving compliance is an ongoing process that FDSI will manage throughout the life of the account. By conducting business reviews and reviewing detailed shipping activity reports during our post implementation process, we have the ability to monitor many aspects, but most importantly the frequency of shipments. Supplier compliance is tracked using two different reporting tools. The first tool monitors suppliers that have been implemented but are not shipping, allowing for immediate follow-­‐
up. The second tool monitors suppliers that are shipping at a lower volume than expected, also allowing for immediate follow-­‐up. Your Regional Transportation Coordinator and your dedicated account managers have been trained to monitor this activity and they will set custom thresholds based on order frequency. If a threshold is not being met, your account managers will make contact with the supplier assuring they are shipping on the account or noting the reason for the fluctuation in activity. With the help of these reports FDSI is able to attain the highest possible supplier compliance. ♦ Tracking and Reporting Quality and Service Issues As your Freight Management service provider, we are your first line of defense against quality and/or service failures and take this responsibility very seriously. FDSI will monitor our internal reports and our carrier performance reports for any quality or service issues and we will also rely on our Regional Transportation Coordinator, working in close collaboration with feedback from NCPA, to discover and investigate any issues as soon as they occur. FDSI will then take this information and work with the carrier and/or vendor and/or NCPA, as appropriate, to resolve the issue. Most issues can be resolved quickly but any persistent quality or service issues will be brought to NCPA’s attention for escalation. FDSI will work on NCPA’s behalf to file any loss or damage claims and will follow through with all involved parties through a satisfactory resolution. FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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FDSI constantly monitors for carrier services interruption alerts, domestically and across the globe, and will send out notification blasts when service interruptions threaten the NCPA supply chain. Our problem resolution process is driven by the source, type and severity of the issue at hand and may be detected via anomalies in our Key Performance Indicator reports, by our regional coordinators and dedicated customer service staff, by our sales and management teams, or the issue may be brought to our attention by the NCPA affiliate staff or your suppliers and vendors. Regardless of the source, our regional coordinators and customer service teams have been well trained to assess the issue and to initiate problem resolution SOPs which involve a parallel track resolution of ‘find-­‐and-­‐fix’ the problem at hand while we initiate a Six Sigma root cause analysis to uncover the source of the problem and study the operational adjustments required to eliminate that error type from occurring again. The basic steps to our root cause analysis and resolution SOP are as follows: • Detect the failure/problem • Collect evidence and proof • Investigate and understand the issue • Analysis and identification • Identify corrective actions • Implementation of the solution/resolution Since FDSI Logistics has been an industry leader in inbound logistics management for many years, we have used this process to anticipate and eliminate the most common problem types before we initiate your implementation. Escalation Pathways for Sales, Customer Care and Billing/Receivables are well established at FDSI. Upon implementation we will write a custom Escalation Process guide for the NCPA affiliates. Along with your program implementation, the customer service representative assigned to your account will be responsible for handling any issues or claims that may arise. Additionally all issues and claims can he handled via our proprietary claims management system. Our claims resolution process is outlined below: • Gather all pertinent information such as invoices, delivery receipts, e-­‐mails and photographs to make certain that the claim is thoroughly documented and filed properly. • File the claim with complete documentation. • Enter the claim into our database. • Receive the claim acknowledgement • Monitor the claim’s progress via our automated claims management system • Receive resolution and make the appropriate entries into the database for later reporting • Forward proceeds FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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Attached below is a summary presentation of our claims SOP. FDSI Cargo Claims
SOP v3.pptx
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Tab 9 – Required Documents The following documents are acknowledged by FDSI and are signed as required with the stipulation that should FDSI Logistics be awarded this business from Region 14 ESC and NCPA, we would need to know if any special federal funds are going to be used to pay FDSI (e.g., ARRA) which will trigger certain federal law requirements and reporting/disclosure. ♦ Clean Air and Water Act / Debarment Notice ♦ Contractors Requirements ♦ Antitrust Certification Statements ♦ ARRA Standard terms and Conditions Addendum for Contracts and Grants ♦ FEMA Standard Terms and Conditions Addendum for Contracts and Grants ♦ Required Clauses for Federal Assistance by FTA ♦ State Notice Addendum FDSI Logistics, 5703 Corsa Avenue, Westlake Village, California 91362 │ www.fdsi.com
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