© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,...

© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO, ESSENTIAL TO CARE and OPTIFREIGHT LOGISTICS are trademarks or registered trademarks of Cardinal Health. All other marks are the property of their respective owners.

5 ways to drive maximum savingswith your freight management program

An educational event sponsored by OptiFreight® Logistics

Marc MullenVice President/General Manager, OptiFreight® LogisticsMay 12, 2015


Marc MullenVice President/General Manager OptiFreight® Logistics

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Mike WalkerSystem Director, Centralized Purchasing

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What we’ll reveal today

• Why close collaboration is essential to success

• 5 ways to drive maximum savings

• How to identify a strong freight management program

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What is freight management?

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Discounted rates

Volume savings on shipping

See your spend to

save even more


The power of collaboration

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The stronger our

collaboration, the greater your

success


Discounted rates are just the beginning

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Rate SavingsDiscounted rates

Managed freight volume

Continuousimprovement

Overall freight

management value


The difference program participation makes

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Range of opportunity*compared to carrier list price

$39,678 $107,034

• No data exchange

• Limited compliance

• No outbound services

• Only certified inbound volume

• Participate in all service offerings: inbound, outbound and LTL

• Participate in data exchange

• Include a PO Comment for maximum program participation

*Based on internal OptiFreight® Logistics data analysis – savings compared to list price.


Presence Health

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$713,161 saved*12-month results compared

to carrier list price

*Based on Presence Health data -- list price comparison: April 2014 through March 2015.


5 ways to drive maximum savings

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1 Supplier participation

Employee participation

Mode optimization

Large freight

Advanced analytics

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3

4

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Maximize supplier participation

• Provide freight history • Include a PO Comment every time• Communicate with suppliers


1. Maximize supplier participation

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• Share data with freight management program • Review every invoice over $50

• Pressure three ways: you, freight management program and GPO

Most suppliers aren’t going to pursue the savings for you!

47%* average savings

per package

*Presence Health saved an average of 47% per inbound package through OptiFreight® Logistics from January 1, 2014 to December 31, 2014. Individual customer savings may vary.



Improve employee participation

• Promote education• Use an online portal

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2


2. Improve employee participation

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• Look at every single freight bill • Send employee “reminders”

• Make it part of your culture

42% average savings

per package

*Presence Health saved an average of 42% per outbound package through OptiFreight® Logistics from January 1, 2014 to December 31, 2014. Individual customer savings may vary.



Increase mode optimization

• How suppliers and employees can save you even more

• The key to mode optimization

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3. Get in the zone and save even more

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Next day delivery as overnight — but at ground service rates!

*Map is a representation of a transit map Ground Service area. Estimated delivery times may vary by individual supplier.



Remember your large freight

• Save on capital improvements• Save on new equipment• More keys to savings

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4. Remember your large freight

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• Drive as much volume as possible • Focus on capital equipment • Pick up the phone

35% average savings

per shipment

*Presence Health saved an average of 35% per large freight shipment through OptiFreight® Logistics from January 1, 2014 to December 31, 2014. Individual customer savings may vary.



Use advanced analytics

• Gain full visibility

• Benchmark performance

• Leverage Big Data

• Reveal the way to hidden savings

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1 Supplier participation

Employee participation

Mode optimization

Large freight

Advanced analytics

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3

4

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“Must-haves” for your freight management program

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“Must-haves” for your program

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Program scale and

reach

Healthcare industry expertise

Advanced data and analytics


Why OptiFreight® Logistics?

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Making a real cost difference

21,000 active facilities*

2,000healthcare providers*

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$200 million saved in 2014*

11.5 million shipments*

Source: *Based on shipments through OptiFreight® Logistics from January 1 through December 31, 2014. Individual savings may vary.


Three ways we deliver

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Expertise and

proactive support

Visibility and control

A comprehensiveprogram


OptiFreight® Logistics: Program scale and reach

Full breadth of services across the continuum of care

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Serving multiple

customers

Pharmacy Laboratory Surgery center Physician office Home Health Long-term care Blood and tissue bank

Global

Hospital

Government Veterinary Academic

Small parcel International Analytics/reportingHazardous White glove Home deliveryTemperature

sensitiveLarge freight Logistic

solutions (inbound and

outbound)


OptiFreight® Logistics: Advanced data and analytics

Visibility and control

• Proprietary data analytics

• Shipping service trends

• Benchmark your program performance

• Advanced outbound shipping tool

• Customized program reporting

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Expertise and proactive support

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OptiFreight®

Logistics

IT

Implementation

Customer care

Vendor relations

Logistics solution

Analytics management

Accountmanagers


Q&AMike Walker, Presence Healthemail: [email protected]

Marc Mullen, Cardinal Healthemail: [email protected]

OptiFreight® Logisticsphone: 866.457.4579 option 1

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Thank you!

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© Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,...

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Transcript of © Copyright 2015, Cardinal Health. All Rights Reserved. CARDINAL HEALTH, the Cardinal Health LOGO,...