Preferred Suppliers What Are Preferred Suppliers? Preferred Suppliers are those vendors that have been selected based on their ability to provide goods or services to the entire Rice University system on a single agreement at a competitive advantage when compared to other vendors in the same market. Examples of Preferred Vendors Information Technology – Dell, Tech Depot Office Supplies – Office Depot Janitorial Supplies – Brawner Paper Shipping - FedEx

Preferred Suppliers How do we select preferred suppliers? Data Market conditions Previous performance at Rice Compared performance at peer institutions Degree of change management

Preferred Suppliers Overall Goals for Preferred Supplier Model Decreased overall cost/increased overall value Ease of ordering, data collection Standardize Supplier Relationship with Rice community Create partnerships with valued suppliers

New FedEx Agreement

New Pricing and Pricing Structure Changes Effective June 1, 2009 New contract highlights for domestic and international services include:  Pricing structure moves from flat-rate pricing to zone based pricing by “revenue band”  Changes in services, benefits, rates  Money back guarantee is now offered  Fuel surcharge reduced from 32.5% to 0% for express shipments  Fuel surcharge reduced from 32.5% to 2.5% for ground shipments

New FedEx Agreement FEDERAL EXPRESS Rate Comparison for a 1 lb. Domestic Express Envelope to Zone 2 Pre 3/1/09 rates 3/1-5/31/09 Rates 6/1/09 – 5/31/10 Rates Priority Overnight (guaranteed delivery 10:30 a.m. next business day) $9.95 $4.98$ Standard Overnight (guaranteed delivery 3 p.m. next business day) $8.41 $4.97$ FedEx 2-day (guaranteed delivery by 4:30 p.m. the 2nd business day) $5.94 $4.95$ FedEx Express Saver (guaranteed delivery by 4:30 p.m. the 3rd business day) $5.67 $4.90$5.00