DCI-4pl services
3PL ANALYSIS AND NEGOTIATION
You should be demanding more of your third-party freight management company!
Typically, healthcare-focused 3PLs offer a cost-plus model. The issue with this model is the lack of transparency to the 3PL’s cost and what you are actually “paying” for their service. There is a better approach to 3PL contracting: negotiating pricing based on actual services provided.
DCI4PL offers a no-cost, no obligation assessment of your current 3PL program, uncovering potential savings through a renegotiated contract executed with DCI4PL’s support.
There’s never been a better time to renegotiate your 3PL agreement – contact DCI4PL to find out more.
SMALL PARCEL ANALYSIS AND NEGOTIATION 2.0
FedEx and UPS discount agreements are often overlooked when hospitals are looking for freight savings – and they shouldn’t be!
- Hospitals often assume they have the highest discounts in place – DCI4PL’ s studies prove that this is often not the case.
- As healthcare systems merge, they don’t renegotiate the agreement based on the increased shipment volume.
- Hospitals don’t have the small parcel subject matter expertise to negotiate the highest discount.
To schedule DCI4PL’s no-cost, no obligation small parcel pricing analysis, including potential savings and recommendations, contact us today!
DCI-4PL ONSITE FREIGHT MANAGEMENT COORDINATOR
Major healthcare systems’ complex freight programs are under-supported by traditional 3PL models. It’s no longer enough to focus on rates and expense allocation – supply chains need robust support and dedicated support to drive efficiencies and savings.
DCI4PL’s On-site Freight Management program embeds a full-time Freight Management Coordinator that is solely focused on the success of the freight management program:
- Oversees performance of incumbent 3PL, direct small parcel carriers such as FedEx and UPS, and LTL and TL carriers;
- Provides resource support to Supply Chain, Purchasing, Accounts Payable, Receiving and Mail Room, focused on driving process improvements related to freight;
- Partners with Lab and Pharmacy to manage and freight and courier expense;
- Supports Capital Purchasing and Construction teams with freight negotiations.
If DCI4PL’s in-depth analysis and benchmarking of these areas shows a minimum 5:1 lower cost ROI, an embedded Freight Management Coordinator will be part of the formal proposal – as well as guaranteed savings.
THE FAILURE OF MODE OPTIMIZATION
Mode optimization is one of the most talked about cost reduction opportunities, and yet our studies show that there are three main reasons that very few hospital systems achieve their maximum savings potential:
- The healthcare system doesn’t take the time to review their 3PL’s Mode Optimization Reports to see what the potential savings could be to begin with;
- Ineffective communication from the healthcare system to the supplier regarding service level changes;
- The supplier doesn’t make the change in their system to ship via the preferred service level – and the healthcare system doesn’t check to make sure the change was made.
This is a category we would welcome the opportunity to discuss in more detail with you. Contact us to schedule an analysis to see what the real mode optimization opportunity is for your healthcare system.
UNCOVERING CAPITAL EQUIPMENT FREIGHT COSTS
When quoting construction and renovation capital projects, vendors often bundle or obscure freight costs, making it difficult – or impossible – to know the actual freight cost.
See from this case study how turning freight into a negotiable category can drive incredible savings:
- $150M hospital renovation with $37.5M capital equipment cost (25% of project spend);
- $1.12M in freight expense was hidden in the capital equipment bundled costs (3% of capital equipment cost);
- Renegotiating freight as a line item brought freight savings of $280K, leading to a 25% reduction in freight expense.
DCI4PL welcomes a discussion focused on the capital equipment freight costs associated with your construction projects and everyday purchases of capital equipment.
LTL & TL ANALYSIS & NEGOTIATION
LTL and TL carrier costs are typically the third-highest hospital freight cost and offer a significant opportunity for cost reduction!
If your LTL and TL freight is handled by your 3PL, don’t assume you have the best pricing – put both categories out to bid to find the best service and cost options for your hospital.
DCI4PL’s LTL and TL subject matter experts can help with RFPs and negotiations, supported by findings and recommendations discovered through our no-cost, no obligation analysis of both categories.
It’s time to take control of your LTL and TL freight – contact DCI4PL today for more information on how!
FREIGHT COST SELF-MANAGEMENT
Why should your organization make the move to self-managing freight?
After twenty years of 3PL-managed freight programs being the norm, more and more savvy hospital systems are making the move to self-managing their freight. This migration to self-management is driven by three main factors:
- 85% of suppliers now routinely adhere to inbound routing instructions;
- 3PLs perform
aslittle more than an accounting function, allocating freight to the appropriate cost center; - 3PL-negotiated rates are 25 – 50% higher than rates available through GPOs or self-negotiated rates with FedEx or UPS.
Contact DCI4PL today for a no-cost, no obligation analysis of your current 3PL program and see the savings your organization is missing by not self-managing!
University Medical Center and Non-Profit Hospital Rate Access
Healthcare systems with University Medical Centers as well as Non-Profit Hospitals can access preferred contracts that drive 30% – 50% cost savings compared to traditional 3PL pricing.
How is this possible?:
- Discounts on all service levels are significantly better than what is offered by healthcare 3PL’s
- Accessorials, Fuel Surcharges and Ground/Air minimum charges are all significantly reduced with these preferred contract;
- Transparency on transportation rates is achieved with these preferred contracts.
We have case studies where University Medical Centers and Non-Profit Hospitals have moved to these preferred contracts and reduced their average cost per shipment to $10-13. Your current rates are likely yielding an average cost per shipment of somewhere around $20.
Do the math, what would saving $10 on every shipment mean to your organization? We welcome the opportunity to show you how you can achieve these savings.
FEDEX & UPS LATE DELIVERY AUDIT RECOVERY
After a year of COVID turning the freight world on its head, FedEx and UPS have reinstated their Late Delivery Money Back Guarantee!
Freight carriers aren’t perfect – they miss arrival guarantees and make numerous billing errors, costing your hospital time and money. DCI4PL recommends that if your annual FedEx and/or UPS spend is over $100K annually, you regularly audit your account.
DCI4PL has partnered with a professional small parcel audit service to uncover and collect on both late delivery and billing errors, bringing trusted experience in auditing to you.
You have six months to collect on late deliveries – don’t let the opportunity to recapture these expenses pass you by! Contact DCI4PL today to learn more about our Late Delivery and Audit Recovery solution.