91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California More money for student services with this easy saving opportunity

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Agenda OBJECTIVES:1. Present the concept and benefits of managing your inbound shipping costs. 2.Demonstrate it is easier than you think to save money on your inbound shipping costs. AGENDA:1.What is the savings opportunity? 2.What is the current state of inbound shipping? 3.What is the solution? 4.What is the savings potential? 5.Results of recent NAEP survey 6.Key to a Successful Program 7.Build vs. Buy 8.Partnership & ROI 9.Next Steps 10.Questions

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Doesn’t this say it all?? Join students all across America by making history on this Thursday March 1st, 3 PM at the Oval to protest tuition increases and student debt. Higher education is in crisis, student debt will reach totals over one trillion dollars this year nationwide.

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Current State of Freight Management Vendors in control > 35% overcharge on small package 20% to 40% overcharge on LTL

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Invoice Overcharge Example Shipping charge on vendor invoice=$29.04 Institution Savings $10.44 Shipping thru managed program=$ % Savings

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Here is the future that we need to move to! “America’s public colleges and universities are being called on to restrain spending and to be more innovative and entrepreneurial in identifying and implementing cost containment and revenue enhancement measures.” -- Public College and University Procurement Survey

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California How much can you save? 26,000 students over $50,000 13,000 studentsover $250,000 20,000 studentsover $120,000 6,700 studentsover $400,000 Note: Institutions with high research funding, or nursing, medical, engineering, and other hands-on areas of focus, have much higher shipping costs and savings.

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Results of Recent NAEP Survey 83% of respondents recognize shipping overcharges are an issue 50% want to address inbound shipping costs in 2012 Primary focus is on initiatives with tangible savings, and high ROI More than 70% indicated a project with $100,000 or less of savings helps achieve goals

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Take Control! “It doesn’t matter if the savings is $500, $5,000 or $50,000… managing inbound freight is an easy initiative to save money, and it puts us in control of our own costs.” Stephen Storck, Senior Associate VP, Finance & Admin - Kent State University

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California What’s the Solution? 1.Take control of your own costs 2.Identify proven methods and best practices 3.Use experience of other industries 4.Use technology to your advantage

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California What are the Keys to a Successful Program? Vendor setup Vendor compliance Charge match to proper GL Strategic reporting Long term focus

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Evolutionary process to maximize savings Outbound Additional Vendors Exposure of Assessorial Fees Less-than- Truckload (LTL) | Strategic Visibility | Strategic Contract Negotiation

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Decision Time – Build vs. Buy

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Common Pitfalls More than a routing guide Scarce IT resources Making it harder on AP Hoping and praying vendors comply Not staying focused on program

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California What do you want in a partner? Aligned incentives Experience Best practices Complete management Technology

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Partnership – Huge ROI 1. Maximum investment expected 2. Average industry rates

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Why do this now??? U.S. Secretary of Education Arne Duncan has warned of an ominous "New Normal" for public schools. This era of sky-high deficits and fiscal austerity for states and school districts threatens our ability to achieve better outcomes for all students, particularly the most vulnerable. That leaves us no choice but to work together and spend smarter. Huffington Post 5/21/11 “Shrinking Budgets Demand Smarter Schools” We need to help our students succeed It fits in with other priorities Start saving this year It’s easy to do

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Next Steps Identify if you want to “build or buy” Identify current shipping costs Estimate your savings Implement a program Monitor and report on success

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Summary You are being overcharged on shipping costs Proven solution Easy – fits in with other priorities High ROI Recurring savings Future, strategic saving opportunities Recognize savings this year!

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California VPL thanks you for the opportunity to present at the 2012 NAEP Conference.