Used third party GPO contracted provider until November 2012 Third party vendor contracted with FedEx and we utilized their Fedex account. All freight invoices went through third party vendor for payment and then charges billed back to us with their high service fee included. Third party vendor sent a weekly exception file of all shipments that did not go through the system for payment and I researched the file and called vendors to match shipment with a PO number.

Discounted rate off carrier list rates: ServiceDiscounted Rate Priority Overnight54% Standard Overnight51% Economy Service43% Express Saver43% Ground22% International Priority30% International Economy30% LTL60%

18,783 packages running through program annually Average cost per package was $30.00* Monthly savings of $21,000 Annual calendar year savings of $252,000 *includes all service types (ground, priority, express, international)

Started looking for a new improved program in 2012 Met with another 3 rd party freight program with potential savings of 120,000 per year June decided to create our own in-house freight management program Marketed freight manager and the in house program to the stakeholders Began having extensive meetings with FedEx and UPS to form partnership. Worked with both carriers to delete all open accounts not being used and set up an inbound program for our vendors to use our freight accounts.

Negotiated pricing agreements with FedEx and UPS Small parcel package discounted rate for all service types is 50% plus an earned discount rate of 20% for the amount of volume we send through the program. LTL (Less than truckload) shipments get a discounted rate of 82%

Discounted rate off carrier list rates: ServiceDiscounted Rate Priority Overnight54% 70% Standard Overnight51% 70% Economy Service43% 70% Express Saver43% 70% Ground22% 70% International Priority30% 70% International Economy30% 70% LTL60% 82%

Sent out letters to all vendors with instructions on using our new program Added language to all PO’s sent out with instructions on using our FedEx accounts Download a weekly invoice report from FedEx to our system to pay all charges. All charges that error out and do not pay transfer to an exception report that is worked weekly to match up charges to the correct PO’s for payment

Continually follow up with vendors that are not using the program to get them set up on the program Set up special shipments that need to be sent in to UAMS (example: Large freight shipments coming from over seas that have to go through customs and other special procedures) Work with other carriers for specialized shipments that cannot be shipped via FedEx and UPS Hold quarterly business meetings with UPS and FedEx Created a freight website to inform our campus about important information with the freight program and FAQ’s.

32,928 packages running through program annually Average cost per package Average monthly savings 58,000 Annual calendar year savings 696,000 GPO Contracted VendorUAMS Freight Program 51 Participating Vendors300 Participating Vendors Package Count 18,783Package Count 32,928 Annual Savings: $252,000Annual Savings: $696,000