3. WHY
FIRSTFLIGHT
NORISK - Performance based fee
Shipping costs continue to increase at an alarming rate. FedEx and UPS announce
their 2010 rate increase at 4.9%…Recent rate increases were: 2007 - 3.5%, 2008 - 4.9%,
2009 - 5.9%, when in actuality, depending on your individual company’s shipping
characteristics, the net impact could have been more than double.
11% of major shippers utilize consultants. The survey showed
those who did engage consultants to help in the parcel negotiation
process realized a 49%reduction of transportation costs over
those that did not.”
“
3FIRSTFLIGHTSOLUTIONS.COM
19% of total transportation costs are now spent on accessorial charges.
Note page 5 illustration
MORGANSTANLEYSURVEY
4. Delivery Service Invoice
Invoice date November 8, 2008
Invoice number 786654
Shipper number
Page 17 of 79
4453
Outbound
Vendor Manifest (continued)
Pickup Pickup
Date Record
11/03 4406136221
Entry Tracking Number
77393858405800445XXXXXXXXXXXXXXXXXXXXXXX
77393858405800445XXXXXXXXXXXXXXXXXXXXXX
77393858405800445XXXXXXXXXXXXXXXXXXXXXXX
Service
Ground Residential
Residential Surcharge
Delivery Area Surcharge
Additional Handling
Fuel Surcharge
Total
67460 6 27 15.51
1.95
2.30
6.50
1.63
27.89
-4.12
-.34
-4.46
135 EAST ASHLAND ST.
Doylestown PA 18901
11.39
1.95
2.30
6.50
1.29
23.43
Zip
Code
Published
Charge
Sender
Receiver:
Incentive
Credit
Billed
Charge
Zone Weight
Ground Residential 71929 5 5
Residential Surcharge
Delivery Area Surcharge
Additional Handling
Fuel Surcharge
Total
6.05
1.95
2.30
6.50
0.85
17.65
-1.31
-0.11
-1.42
4.74
1.95
2.30
6.50
0.74
16.23
ACCESSORIALIMPACT
5
XXXXXXXXXX
XXXXXXXXXX
XXXX
XXXXXXXXXX
XXXX
FIRSTFLIGHTSOLUTIONS.COM
6. PROCESS
ANALYZEYOURSHIPPINGcharacteristics to reveal what is driving
the increase in your shipping costs.
CONDUCTNEGOTIATIONORSKILLFULLY“ADVISEANDCOACH”
your decision maker through the entire process.
Once YOUR company accepts a final carrier proposal, the new rate
structure will be compared with your previous rates (the benchmark)
to measure our success.
WEEKLYSTATEMENT…
Illustrates measurable cost savings
Reduces billing inaccuracies and validates freight charges
Maintains carrier pricing agreement compliance
9FIRSTFLIGHTSOLUTIONS.COM
7. WEEKLY
STATEMENT
SERVICEPRIOR
SAMPLE
WEEKENDING NOVEMBER 22
NEW
Ground Commercial
Ground Residential
Ground CWT
Residential Surcharges
Fuel Surcharge
Misc. Adj. Surcharges, Fees
TOTAL NET SPEND
UPS
UPS
UPS
UPS
UPS
UPS
$1,196.02
$4,469.58
$1,285.81
$969.15
$576.22
$293.50
$8,790.28
$1,096.15
$4,253.70
$1,285.81
$969.15
$576.22
$293.50
$8,474.53
$99.87
$215.88
$0.00
$0.00
$0.00
$0.00
$315.75
8.4%
4.8%
0.0%
0.0%
0.0%
0.0%
4.5%
NET RATE NET INCENTIVES NET DISCOUNTCARRIER GROSS RATE
SERVICE
Ground Commercial
Ground Residential
Ground CWT
Residential Surcharges
Fuel Surcharge
Misc. Adj. Surcharges, Fees
TOTAL NET SPEND
Client and First Flight Solutions, LLC share in the savings shown of $1,058.24
UPS
UPS
UPS
UPS
UPS
UPS
$1,196.02
$4,469.58
$1,285.81
$969.15
$576.22
$293.50
$8,790.28
$867.60
$3,802.20
$907.62
$969.15
$576.22
$293.50
$7,416.29
$328.42
$667.38
$378.19
$0.00
$0.00
$0.00
$1,373.99
27.5%
14.9%
29.4%
0.0%
0.0%
0.0%
19.7%
NET RATE NET INCENTIVES NET DISCOUNTCARRIER
PRIOR NET SPEND
NEW NET SPEND
DIFFERENCE
$8,474.53
$7,416.29
$1,058.24
GROSS RATE
11FIRSTFLIGHTSOLUTIONS.COM
8. TERMS
TERMSOFAGREEMENT- 3 years
BILLING - 50% of savings realized will be due (difference between benchmark
and new negotiated net spend by service level)
13FIRSTFLIGHTSOLUTIONS.COM
9. THANK
YOU
THANKYOU for the opportunity to earn your business!
15FIRSTFLIGHTSOLUTIONS.COM
FIRSTFLIGHTSOLUTIONS.COM
ADMIN@FIRSTFLIGHTSOLUTIONS.COM
888.787.3335
P A R C E L S P E N D M A N A G E M E N T
FIRST FLIGHT SOLUTIONS
