federal strategic sourcing initiative express ground domestic delivery services june 2009 l.
Download
Skip this Video
Download Presentation
Federal Strategic Sourcing Initiative Express & Ground Domestic Delivery Services June 2009

Loading in 2 Seconds...

play fullscreen
1 / 23

Federal Strategic Sourcing Initiative Express & Ground Domestic Delivery Services June 2009 - PowerPoint PPT Presentation


  • 173 Views
  • Uploaded on

Federal Strategic Sourcing Initiative Express & Ground Domestic Delivery Services June 2009. Agenda. The FSSI ExGDDS Story Managing FSSI ExGDDS at the agency/account level – The VA Story Utilizing business intelligence to Drive Actions

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Federal Strategic Sourcing Initiative Express & Ground Domestic Delivery Services June 2009' - breck


Download Now 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.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
federal strategic sourcing initiative express ground domestic delivery services june 2009

Federal Strategic Sourcing InitiativeExpress & Ground Domestic Delivery ServicesJune 2009

agenda
Agenda
  • The FSSI ExGDDS Story
  • Managing FSSI ExGDDS at the agency/account level – The VA Story
  • Utilizing business intelligence to Drive Actions
  • Adopting Process best practices for reducing your shipping process cost
  • Your Next Actions?
the fssi exgdds story
The FSSI ExGDDS Story

John Blanchard

GSA Federal Acquisition Service

2200 Crystal Drive, Suite 300

Arlington, VA 20406

Office Phone: (703) 605-2887

Mobile Phone: (703) 268-6569

E-mail: john.blanchard@gsa.gov

Website: www.gsa.gov/exgdds

fssi exgdds story overview
FSSI ExGDDS Story - Overview
  • OMB implemented strategic sourcing in May 2005
  • FSSI launched in November 2005
  • Interagency involvement on four teams including ExGDDS
  • Established charter with three primary objectives
  • ExGDDS BPA awarded October 2006 to FedEx
  • Transportation Consulting BPA awarded to MEB/PRTM
  • Next Generation being Evaluated
fssi exgdds story key outcomes
FSSI ExGDDS Story – Key Outcomes
  • Grew from 9 to 60 participating agencies
  • High customer satisfaction scores for transition to FSSI
  • $50 million spend in FY07
  • $100 million spend in FY08
  • 68% off commercial rates
  • $54 million savings in FY07-08 off Multiple Award Schedule
  • Discounts increase as spend increases – Tier 2 to 3
  • Business intelligence reports provided to agencies
  • Heightened awareness and sharing of best practices
  • Detail data and lessons learned for current procurement
managing exgdds at the agency account level
Managing ExGDDS at the agency/account level

William Bardwell/ John Blanchard

Traffic Manager

Department of Veterans Affairs

811 Vermont Avenue, NW, Suite 207

Washington, DC 20420

Phone: (202) 461-8914

E-mail: bill.bardwell@va.gov

slide8
Since last year we have cleaned up the account structures
  • Understand the business of VA shipping and the underlying data that supports our current processes
  • Understand the need for change and where change can occur
  • Realize our limitations on controlling change. Will be providing information to a new Logistics conference specific to VA June 23rd
utilizing business intelligence to save more
Utilizing business intelligence to save more

Grant Lock

Principal, MEB Consulting LLC

24301 Empress Court

Gaithersburg, MD 20882

Phone: (301) 482-2025

E-mail: glock@mebcllc.com

slide10
Interesting information about the database;
    • Approximately 150 million records in the database
    • Size of database is 45 Gigabytes
    • 60 National account/ sub accounts represented
    • 8 National Accounts represent 80% of the $ value of transactions (total $’s including Surcharges)
slide11
The cost of service;
    • On a quarterly basis 2.7million packages are shipped. 1.2 million of those are targeted to arrive by between 10 and 11AM.
    • If those same packages were to arrive 5 hours later the savings would be $4.7 Million.
    • Or in other words each hour of service costs $941,000
    • Over the course of a year that would amount to $19M. Assuming that not all items can take the leisurely route we could still possibly achieve $9million saving?
    • In addition Saturday delivery accounted for $1.23M. Did the materials get read/used before Monday?
utilizing business intelligence to save more12
Utilizing business intelligence to save more
  • Analysis provided through the FSSI program gives insight to Agency comparisons, savings and accessorial charges
  • Further analysis of spend by service type, type of accessorial charges indicates where additional savings can be engineered through introduction of best practices, new/updated training and or implementing technologies to streamline the end to end process of mail management
  • Analysis of spend in each area provides a solid Return on Investment for any new program
  • Some samples….
agency executive summary for fy 2007
Agency Executive Summary for FY 2007

FSSI Spending

FSSI Savings

  • Total FY 2007 FSSI Spend: $3,027,095.91 (Express $2,888,025.37 and Ground $139,070.54)
  • This agency ranks as the 6th highest agency in total spend for FY 2007, and ranks 5th in total surcharge expenses.
  • Total FY 2007 FSSI Savings: $1,086,023.53
  • Fuel Surcharge Savings alone accounted for $208,501.85 of total savings achieved.
  • FY 2007 FSSI Savings based on Tier 2 discounts from January 1st to July 14th and tier 3 from July 15th to September 30th.

Summaries allow comparisons to other agencies….

….and understand savings year to date

FSSI Surcharges

FSSI Performance

  • Total FY 2007 Surcharges: $512,848.32 (Express $474,802.39 and Ground $38,045.93)
  • Monthly Surcharge Expense represents 16.94% of FSSI Spend. This figure is right on the average of the Top-10 highest volume agencies for FY 2007.
  • Average Express on time performance for FY 2007 was 97.0%, exactly the negotiated service standard
  • Average Ground on time performance for FY 2007 was 100.0%
  • Service types below 97% service standard included: PO, IPO, FO, F1, IE2 and IF1
utilizing business intelligence to save more understanding at the bureau level
Utilizing business intelligence to save more – Understanding at the Bureau level
  • These type of reports come as standard on a quarterly basis for all participants of FSSI
  • Additional reports and or assessments and implementations of best practices can be contracted with MEB/PRTM through the GSA Blanket purchase agreement
total charges by top bureaus

Bureau 2

Bureau 3

Bureau 1

Bureau 4

Bureau 5

Bureau 7

Bureau 6

Bureau 7

Total Charges by Top Bureaus
slide16
Sample Recommendations from one specific study –
  • Total FSSI spend in FY 2008 was $5,284,000 in shipping charges and $1,340,000 in surcharges
  • $4,331,000 was spent on next day delivery accounting for a total of 497,849 packages or 69.6% of all packages (total of 714,517)
  • Highest surcharge was Bureau 1 for Residential and Delivery Area Surcharge (DAS) residential, totaling $678,000.
    • Understand your profile!
  • There is a $26,000 Fuel surcharge entry for FY 2008.
  • Declared Value of $50,000 seems high. Top Bureau’s identified should be targeted for education on the use of Declared Value
    • Are surcharges like this really necessary?
adopting process best practices for reducing your shipping processes
Adopting Process best practices for reducing your shipping processes

Gurn Freeman

Director, U.S. Government Worldwide Services

FedEx Corporation

900 7th Street, NW, Suite 550

Washington, DC 20001

Phone: 202 292 2239

E-mail: ghfreeman@fedex.com

slide18
Steps to Cutting your Costs
    •  Study current processes/results
    • Establish specific objectives
      • FedEx Worldwide Account Managers (WWAMs) can help at the agency level
        • Bench mark commercial best practices
        • Select initiatives that will yield the best results
      • Establish measureable objectives and track results
      • Implement/refine your plan as needed
      • Summarize results
slide19
Example – Automate your shipping process

Time Study Start to Finish

Desktop and mailroom will have different time studies

Establish employee hourly rate (fully burdened)

FedEx Value quantification process

FedEx Reporting Online (FRO) to determine daily volume

Ask WWAMs for % automated for your location

Design training program and improve efficiency

FedEx can help!

the way ahead
The Way Ahead
  • OMB Considering Possible New Policy
    • Makes sense for Government
    • Mandatory w/waiver
    • Driving Process Re-engineering/Stewardship
  • Shipping Portal
    • Compare Cost, Service Levels, & Vendors
    • Business Intelligence
  • Seeking Best Value
    • Inclusive of other Agencies unique shipping profiles
    • Competition
what to do next
What to do Next?
  • Ask Questions!
    • Member Organizations:
      • What can I do to improve my process?
      • What training, data, other assistance is available to my group?
    • Not a Member Organization:
      • Why Not?
      • Can we justify our current program as a best value from a government perspective?
      • How do I get started?
point of contact
Point of Contact
  • Program Point of Contact:
    • Blaine Jacobs

703-605-2892

Website: www.gsa.gov/exgdds

blaine.jacobs@gsa.gov

ad