Savings Through Freight Management 2013 Saving Strategy October 12, 2012 1

Key Components of Freight Management Program Aggressive discounts for FedEx Rates in all categories of Air/Overland, Rush/Routine Shipping. Account Management – advisory services that help GNYHA Services members reduce their freight costs through priority shipment management, savings tracking, and periodic business reviews that identify success towards established savings goals. Vendor Management – continuous, member-identified enrollment of new suppliers willing to accept the program for Inbound freight. There are currently over 10,000 suppliers enrolled with focus on PPI. Analytics and Benchmarking - using a member base of over 3,000 healthcare customers, identifies key metrics and benchmarks that identify areas for improvement and optimization of savings. Information Management – online portal for activity, cost and savings reporting. System integration with member accounting and financial system. Average savings = 38% over supplier freight rates and member outbound rates. Additional discount tiers available with aggregate member growth. 2