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I retired as Vice President of National Accounts for DHL in January of 2006.
I began his career in 1972 in New York, where I held various positions in Operations and Sales. In 1976, I was appointed District Sales Manager in Bridgeport, Connecticut, where I remained for two years.
In 1978, I became District Sales Manager in Detroit and in 1982 I was appointed Director of National Accounts. Six years later I was appointed Vice President, National Accounts.
I have served as Vice President of Programming for the South Florida Roundtable of the Council of Logistics Management now known as the Council of Supply Chain Management Professionals (CSCMP), as well as the New York Roundtable. I am currently a board member of the American Society of Transportation and Logistics and in 2004 was conferred the title of Distinguished Logistics Professional (DLP). I have also been a lifetime member of the national transportation fraternity Delta Nu Alpha, and a member of the Chicago Traffic club.
In May of 2004 I was presented the Franklin Award by the Mail Systems Management Association (MSMA) & Mailcom. I was named the Transportation Person of the Year by Delta Nu Alpha the national transportation fraternity in September of 2004.
I am a member of the Board of Directors of the Good Shepherd Foundation.
I am a 1972 graduate of Villanova University, Hempstead and did two years of post-graduate work at St. Johns University in Jamaica, New York. I reside in Orlando, Florida with my wife and am the proud father of three children.
Volume per day declined 4.3% during the quarter with Next Day Air® down 0.7%, deferred down 1% and ground off 5%. Revenue per piece declined 4.6%, reflecting product mix changes, the decrease in fuel surcharges on all products and the continuing trend toward lighter weight packages.
FedEx Mar 19 2009 announcement
U.S. domestic package revenue declined 15%, driven by a 12% drop in revenue per package due to lower fuel surcharges, weight per package and rate per pound. U.S. domestic package volume declined 3%, despite the benefit of DHL exiting the U.S. domestic package market. FedEx International Priority® (IP) package volume fell 13%, with declines in every international region. IP revenue per package dropped 8% due to lower fuel surcharges and unfavorable exchange rates.
The carriers cant afford to loose your shipments And will fight to take your shipments from a competitor
OMERTA The American Heritage® Dictionary of the English Language: Fourth Edition. 2000.
SYLLABICATION: o·mer·ta PRONUNCIATION : Oh -mûr t , m r-tä NOUN:A rule or code that prohibits speaking or divulging information about certain activities, especially the activities of a criminal organization
HAS You EVER NEGOTIATED Minimum charge Insurance Minimum Fuel Surcharge Dim Rule COD Fee Delivery Area Surcharge Residential Surcharge Address correction Reduced
HAS You EVER NEGOTIATED Minimum charge Insurance Minimum COD Fee Fuel Surcharge Din Rule Oversize Rule Delivery Area Surcharge Residential Surcharge Address correction Waived
HAVE You EVER NEGOTIATED Lock in the base year tariff & rules Per shipment pricing Yearly incentive Quarterly incentive Ramp up period Start Up incentive Flat rates Flat $ amount off Percentage’s off Revenue Thresholds
Fuel Surcharges Caveat Emptor Note to self: Are fuel surcharges Negotiable? Can you tell your carrier “ the contract I sign now are the rates I want to pay for the duration of the contract and you will not honor any additional charges for the length of the contract.” Currently the air fuel surcharge is 0 But they have moved 2% of the fuel surcharge into the base tariff every year for the last 4 years Sp with compounding its about 10% of the fuel surcharge formula that’s already baked into the base rate. They did this in anticipation of fuel coming down so they dud not have to forfit all of it back to shippers
Do you have to agree that your discount is off of the base tariff in effect at the time of shipment
Or would it be prudent to tell the carrier
“ the base tariff in effect on the day we sign the contract is the base tariff that will stay in effect for the duration of the agreement”?
Nothing prevents the carrier from taking up the base tariff all they want.
DOES YOUR CONTRACT PREVENT THE CARRIERS FROM DOING THIS?
Dimensional Weight Replaces Oversize in 2007 Effective January 1, 2007, Oversize charges for large packages shipped via UPS Ground services will be replaced with a simpler rate calculation based on dimensional weight. Dimensional weight rates are applicable only to UPS Ground packages that are three cubic feet (5,184 cubic inches) or larger. Billable weight will be based on actual package weight or the dimensional weight, whichever is greater. Packages smaller than three cubic feet will be billed based on actual weight
FedEx Ground Dimensional Weight Rate Calculation (effective February 5, 2007)
For FedEx Ground shipments, a rate calculation based on dimensional weight will replace oversize charges for packages that are 3 cubic feet (5,184 cubic inches) or larger. These packages will be billed based on dimensional weight unless actual weight is greater. Packages smaller than 3 cubic feet will be billed based on actual weight.
According to the complaint, franchisees weigh and measure customer packages in their stores, and charge customers accordingly. They then ship the package to UPS, where the company re-measures the package and charges the store owners for the difference.
Perhaps here is a flaw in some of the shipments you tender for which they charge you dimensional weight
BUNDLED PRICE HAS 200 LB MINIMUM FROM ONE SHIPPER TO ONE CONSIGNEE
BUNDLED PRICE HAS MINIMUM CHARGES
BUNDLED PRICE USES AVERAGE 15 LB PIECES
NEW AND IMPROVED WAYS TO ENHANCE YEILD Its not always apples-to-apples AT THE MOMENT UNIQUE TO UPS
Accessorial Charges Analysis Accessorial charges can account for as much as 40 % of total spend! Note to self: Do I know the impact to my business
Delivery Area Surcharges (DAS) Over 25% of the US population now lives in a DAS zip 23,427 DAS zips out of a total of about 43000 or 53% of all zips UPS in January reclassified 16,826 or 83% of the Commercial Delivery Area zip codes as Extended Commercial Surcharge.
A District Sales Manager has more pricing latitude than a sales rep
A Regional Sales Manager has more pricing latitude than a Sales Manager
An Area VP has more pricing latitude than a Regional Sales manager
A Senior VP has more latitude than an Area VP
An Executive VP has more latitude than a Sr VP
The President has more latitude than an EVP
And whomever you get involved wants to win and would hate to be blamed for loosing a deal
Note to self: Get my deal up the food chain as high as I can !
Presenting your Freight Characteristics What's attractive to the carriers Note to self: Package my book of business to maximize the appeal to the carrier Many Few Number of locations Few Lots Number of shipments Seasonal peak Year round Seasonality High Claims Low claims exposure Liability Few Many Multi piece shipments Low High International v Domestic Long Short Air Distance Short Long Ground distance Low High Delivery density Low High Pick up density Low High Commercial v residential Low High Weight Bad Good Attribute
UPS Says the same folks make the decisions for all the products Note to self: Promote ALL the biz to get the best pricing !
UPS says the sales folks are commissioned more for inbound collect. Therefore you can get a better deal by holding out the inbound you can control
The complexity Of Earned Discounts with package or revenue thresholds
Note to self: Have I asked for a discount on all the services, all the sites and all the billing types! All Services Commercial Residential Inbound Outbound Third Party Make sure all sites and account numbers are included
Anybody can get 44% off on air and 19% off on ground They know the tricks
WHAT SHIPPER KNOWS WHAT THEY ARE PAYING AND HOW WILL A SHIPPER EVER COMPARE WHAT THEY ARE PAYING TO ANOTHER CARRIERS OFFER
Parcel Magazine & Morgan Stanley SURVEY RESULTS PARCEL TRENDS REVEALED Rate Your Carriers Part 1: Results of the Annual Best Practices Survey: Over 250 Respondants, Over 90 million parcels
11 percent of survey respondents use consultants to negotiate rates.
Consultants negotiate more favorable rates, driving discounts 49% lower than if the company negotiates .
Pay Attention money is wasted on selecting air services where next day is guaranteed via ground and or second day ground where 2 day air is being used. Note to self: Ask for a service agnostic tariff
These prepaid shipping labels for FedEx Express® shipments take the place of airbills, allowing you to allocate shipping costs — and specify a FedEx® delivery service — upfront. FedEx Express Prepaid Stamps are nonrefundable and nontransferable. FedEx reserves the right to bill an additional amount for packages that exceed standard acceptance limits or require special handling.
Service DescriptionDelivery AreaAvailable for FedEx Priority Overnight®, FedEx Standard Overnight® and FedEx 2Day® delivery throughout the contiguous U.S.Instructions
To order, call 1.901.397.3650 or download our online order form .
If you have questions, please download FedEx Express Prepaid Stamps FAQs .
Minimum order is 10 prepaid stamps.
You must specify a shipment weight and FedEx Express delivery service.
Contact your FedEx account executive for more information.
FedEx SameDay®, FedEx First Overnight®, FedEx Express Saver® and FedEx Express® Freight services are not available.
No additional service options, such as Saturday delivery or Hold at FedEx Location, are available.
Special FeesA $4 fee may apply for courier pickup if the shipper does not have regular scheduled FedEx pickup.