OptiFreight Logistics and Capture, LLC: Creative teamwork to benefit the VA

Transcription

1 OptiFreight Logistics and Capture, LLC: Creative teamwork to benefit the VA Jeff Ledbetter Sales Consultant OptiFreight Logistics Will Sands Vice President, Sales and Operations To help protect your privacy, PowerPoint has blocked automatic download of this picture. Capture, LLC December 15, 2014

2 The Cardinal Health relationship with the VA Generation IV VA Medical/Surgical Prime Vendor contract Started in April month agreement with 20 month options Contract expires Spring 2015 Cardinal Health awarded 16 VISNs, Alaska, Hawaii and CMOPs VISNs 3-7, 9-12, 15-20, and 22 Other Government Agencies (OGAs) can participate at the discretion of the VA and PV Benefits One-stop-shop for end users on prime vendor eligible items Next day delivery on core items Fill rate requirement of 95% on core items Minimum of 1 turn per month for core items 2

3 Cardinal Health supports Veterans Approximately $50M expended with over 175 Veteran and SDVOSB partners in FY14 Active Veteran ERG group focused on hiring and ongoing support of veterans 4.8% of the Cardinal Health U.S. workforce are Veterans $27M expended with VOSB and SDVOSB in Tier 2 by Cardinal Health large business partners Approximately 20 diverse Dealer Management relationships Effectively mentored and matriculated 4 VOSB/SDVOSB under DoD, SBA guidelines Received the Vendor Excellence Award in 2011 from the Defense Logistics Agency, Department of Defense 3

4 Cardinal Health OptiFreight Logistics Trusted as the #1 provider of freight management solutions for the healthcare industry OptiFreight Logistics provides tailored shipping strategies that create long-term savings on direct shipments from a supplier or manufacturer Manage more than 10 million shipments* per year for our customers Service over 2,700 healthcare customers Save our customers over $169M* on an annual basis Partnerships with over 33 carriers *Based on shipments through the OptiFreight Logistics program during January 1 December 31,

5 Why the VA needs more freight management No visibility into inbound supplier freight charges Evidence of vendors over-charging for freight Reducing costs means money for healthcare and support for our military Two ways to expand into the VA: 1. Capitalize on existing Cardinal Health customer relationships 2. Form a strategic relationship with a business that has an existing VA relationship 5

6 Capture, LLC Service-Disabled Veteran-Owned Small Business Trusted SDVOSB partner of the VA and Department of Defense for more than 10 years Business model built around customer service Specializes in providing commercial and government entities with quality services and products through: Internal management Strategic alliances Meticulous oversight As a business, Capture s mission is to take care of you, the customer. Along with that, we will also do everything in our power to take care of the troops. LtCol Robert H. Barrow President, Capture, LLC Retired U.S. Marine 6

7 Why Cardinal Health and OptiFreight Logistics? Previous work experience Familiarity with business model Alliance with FedEx Corporate military support 7

8 Development of the relationship Corporate leadership met to create SWOT model Developed a Master Services Agreement that allowed OptiFreight to share its program with Capture, LLC Developed a Teaming Agreement that defined the structure and responsibilities of each party Established an education program so that Capture, LLC personnel could fully understand freight management Begin the process to hire military veterans to perform Capture, LLC responsibilities onsite at OptiFreight 8

9 OptiFreight Logistics and Capture, LLC OptiFreight Logistics is working with Capture, LLC through a strategic relationship to provide a freight management program to the VA that is built around customer service and delivers significant, long-term direct shipping cost reductions. Our mutual promise to you: Provide innovative shipping services and solutions Ensure federal healthcare providers have the necessary resources to provide excellent patient care for our veterans and their families Actively recruit military veterans for open positions and provide training and development opportunities once hired 9

10 Capture, LLC and OptiFreight in action Identified 3 facilities in VISN 12 to pilot the program Led by Carla Brees at Clement Zablocki VA MC in Milwaukee Obtained freight data from each facility to analyze supplier mix and determined which suppliers should be considered for participation Mutually determined suppliers to be piloted (2 3 per facility) Established invoicing process between Capture, LLC and VA facilities OptiFreight worked with identified suppliers to set up each facility for 3 rd party freight management Ongoing Capture, LLC and OptiFreight account management with the facilities 10

11 Benefits to the VA Reduced costs Customers save an average of 30 50% per direct shipment through the OptiFreight Logistics program Increased visibility Additional inbound and outbound cost savings opportunities through service level optimization and reporting/analytic capabilities More control OptiFreight manages enrollment and compliance for over 9,000 healthcare suppliers 11

12 Benefits to the VA Ensure accuracy OptiFreight audits shipping costs for accuracy prior to invoicing Avoid freight audit recovery fees All of these benefits plus No impact to patient care Ongoing efforts to employ veterans 12

13 OptiFreight Logistics and Capture, LLC: United in continued support for our military 13

14 Q&A 14

15 Thank you! 15