National Discount Program

1
National Discount Program
May 22-24, 2005
2
Overview

• Associated carriers/suppliers view all NISH/NIB
  CRPs as ONE LARGE ACCOUNT, rather than numerous
  small accounts.
• This creates economies of scale and therefore
  large discounts for our CRPs.
• Participants in the program saved approximately
  1.5 Million in shipping/packaging costs in FY04

3
Package Delivery

• Fed Ex Ground Per Pound
• 3.06 per carton plus .1363 per pound
• UPS Ground Commercial
• 35 blended average discount
• (our volume bonus is bringing this to a
  38 discount)

4
Less than Full Truck Load

• Fed Ex Freight Per Pound
• .2118 per pound with a minimum charge of 63.54
• Overnite Transportation
• 73.5 discount from current rates
• Discounts based on class reductions
• 65.00 minimum charge

5
Full Truckload Shipping

• CRST
• Discounts are comparable to the rates available
  to GSA
• May be advantageous to use Truckload carrier even
  if load isnt quite full.

6
Packaging

• Victory Packaging
• Will buy existing supplies, store them, and sell
  back to CRP as needed
• Discounts on 37 most commonly used items

7
The Future

• Applying the buying in group philosophy to
  other items/avenues
• RFID Equipment and Labels
• Common use machinery (fork lifts, etc)
• Common use items (storage racks/pallets, trash
  bins, etc)
• Common use product materials (fabrics, lumber,
  metal, etc)

8
Wrap-Up

• QUESTIONS?
• Please contact Bill Hunter of NISH for additional
  information (bhunter_at_nish.org 571-226-4621)