1 / 30

Optimizing Your Small Parcel Program: Best Practices & Strategies for Cost Reduction

This presentation explores best practices and considerations for optimizing small parcel programs in federal agencies. It highlights the complexities of managing small parcel shipments, including challenges such as cumbersome contracts and hidden costs. Key strategies are discussed, including benchmarking, cost reduction tactics, and the use of GSA PayPort Express for auditing and payment automation. Agencies can achieve notable cost reductions (3%-10%+) through improved management and strategic implementation. Learn about effective measurement, opportunity identification, and maximizing the value of your shipping operations.

curt
Télécharger la présentation

Optimizing Your Small Parcel Program: Best Practices & Strategies for Cost Reduction

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Procurement Best PracticesOptimizing Your Small Parcel ProgramGSA Transportation ForumMarch 22, 2012

  2. Today’s Topics • Small Parcel Best Practices & Agency Considerations • GSA PayPort Express – Maximizing Value for Federal Agencies • Brief Demonstration

  3. Small ParcelBest Practices & Agency Considerations

  4. Questions to Ask Yourself About Your Small Parcel Program • How do you know how you are doing/ what opportunities exist? • How do you measure it? • What are the largest opportunities/ elements you key in on? • Where and how do I get the information?

  5. Managing Small Parcel Shipments is Increasingly Challenging What was a simple service has become an extremely difficult mathematical exercise • Cumbersome, complex contracts • Over 85 + billable accessorial charges • Some shippers do not (cannot) audit. “It’s such a small piece of my overall freight spend that it is not worth my time”. • Downward movement in Tier levels • Identification of “Landed Costs”.

  6. Information Provides a Better Approach • Break Transportation into least common denominators/ elements • Benchmark each element • Develop strategy/ tactics to capture costs-set goals • Tie goals to business plan • Implementation of strategy/ tactics • Periodic review of results internally and with carriers

  7. Agencies Can Realize 3%-10%+ Cost Reduction in their Small Parcel Program Sourcing: assessment of current contract economics and implications Process improvement: order processing, optimization 2%-10% Reduction 3%-30% Reduction Cost Reduction 2%-6% Reduction Contract Management: information management, financial workflow

  8. 3 Important Factors to Optimizing Your Small Parcel Program

  9. Five Pillars that Reduce Agency Risk and Cost

  10. Multiple billing events effect each transaction… creating “cost gaps” that effect the ability to determine true landed cost Landed Cost

  11. PayPort Express – Small ParcelMaximizing Value for Federal Agencies

  12. GSA PayPort Express Automates Small Parcel Audit and Payment • Web based system designed specifically for the unique needs of auditing and reporting small parcel transactions • Comprehensive rate/service audit, detailed reporting, prompt and accurate settlement functionality • Actionable data that allows shippers to take full advantage of cost recovery and cost reduction opportunities • All processes are systemic and automatic – no user intervention is required

  13. GSA PayPort Express Small Parcel • Prepares and Organizes invoices for Payment • Visibility to Accounts, Companies, Divisions, Customers • Contract Performance Auditing • Recovery of disputed charges • Financial: custom cost allocation, GL/ AR coding, matching • Information Management/ Data Warehouse “You can’t Manage What You Can’t Measure”

  14. Payport Express Small Parcel Feature & Benefits to agency

  15. Maximizing the Value: Reporting Examples Report: Air to Ground Shipment Opportunities • Air Service that could have shipped via Ground Service and still made the same delivery date. Report: Shipment Consolidation opportunities • Savings associated with over packing/ banding. Report : Allocation of Fully Landed Cost • Provides breakdown of expenses comprising Fully Allocated Cost Per Package. Report: Service Utilization • Review summary or detail information of service used for a select period of time. Report: Accessorial Costs • Review summary or detail information of accessorial expenses by category.

  16. Contract Management: Six Ways You Save Money

  17. Brief Demonstration

  18. Simple Administration

  19. Quickly View Invoice Level Data

  20. Quickly View Waybill Level Data

  21. Quickly View Exception Causes • Refunds are automatically corrected on invoice payment (FedEx), or contested for refund on future invoice (UPS)

  22. GL Coding and Quick Corrections • GL corrections are easily made at the waybill or invoice level

  23. Query Tool

  24. Small Parcel Reporting • Delivery Reporting • Financial Reporting • Package Detail

  25. Reporting- Trancode Summary

  26. Reporting- Air to Ground

  27. Manifested Not Shipped

  28. Reporting- Summary By Service & Zone

  29. Business Intelligence- Transportation Summary

  30. Conclusion Adam Jackson Citi Global Transaction Services, Public Sector North America 703.234.7306 Adam.W.Jackson@Citi.com

More Related