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<p>The Analyst&rsquo;s Guide to Success</p>
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<td width="100%">&nbsp;</td>
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<p><strong>First Iteration: Kelsey Menton 9/22/2016</strong></p>
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<p>Glossary:</p>
<p><strong>CPC Orientation </strong></p>
<p><strong>Industry Overview</strong></p>
<p><strong>Locating Information</strong></p>
<p><strong>CPC Tools</strong></p>
<p><strong>RFP Process</strong></p>
<p><strong>Communication</strong></p>
<p><strong>Succeeding at CPC</strong></p>
<ul>
<li><strong>CPC Orientation</strong>
<ul>
<li>CPC focuses on delivering high returns on investment to customers seeking optimization within supply chain and transportation management</li>
<li>Assist in improving the client&rsquo;s bottom-line by eliminating hidden profits taken by transportation companies</li>
<li>Free Assessment
<ul>
<li>Location analysis</li>
<li>Weight break analysis</li>
<li>Zone distribution analysis</li>
<li>Benchmark analysis</li>
</ul>
</li>
<li>Per Pound Rate
<ul>
<li>CPC specializes in a per pound rate for LTL</li>
<li>Utilizing the per pound rate simplifies billing and errors</li>
<li>Per pound rating is calculated by</li>
</ul>
</li>
<li>Reporting
<ul>
<li><a href="#SavingsReport">Savings Reports</a></li>
<li>Chargeback&rsquo;s</li>
<li><a href="#OnTimeReport">On-Time Report</a></li>
<li><a href="#ComplianceReport">Compliance Report</a></li>
<li><a href="#DimWeightAnalysis">Dim Weight Analysis</a></li>
</ul>
</li>
<li>Annual Parcel Rate Analysis
<ul>
<li>Every year UPS and FedEx raise their parcel rates, so CPC analyzes the impact annually (example can be found in \\Cpcsrv2\cpc\Parcel Rates)</li>
<li>Rates are taken from the UPS and FedEx websites and pasted into Excel</li>
<li>Each service level is pasted into its own worksheet</li>
<li>Old rates are also pasted in next to the new rates</li>
<li>Percentage difference is calculated</li>
<li>Rates are then imported into the Rates Access database located in the folder above</li>
</ul>
</li>
<li>CPC Approach to Optimization (in depth explanation of these steps can be found in the <em>CPC Consultants</em> book)
<ul>
<li>Analyze shipping activity</li>
<li>Benchmark costs to market</li>
<li>Quantify savings opportunity</li>
<li>Implement plan</li>
<li>Create an exclusive agreement and lock-in performance expectations</li>
</ul>
</li>
<li>CPC&rsquo;s Specialty Modes (in depth explanations of each mode will be discussed in Industry Overview)
<ul>
<li><a href="#Parcel">Parcel</a></li>
<li><a href="#LTL">Less Than Truckload (LTL)</a></li>
<li><a href="#FTL">Full Truckload (FTL)</a></li>
<li><a href="#InternationalAirFreight">International Air Freight</a></li>
<li><a href="#DomesticAirFreight">Domestic Air Freight</a></li>
<li><a href="#OceanFreight">Ocean Freight</a></li>
<li><a href="#Rail">Rail</a></li>
</ul>
</li>
<li>CPC&rsquo;s Specialized Services
<ul>
<li>Warehouse Optimization</li>
<li>Routing Guide Optimization</li>
<li>SOP/SOW Optimization</li>
<li>Compliance Tool
<ul>
<li>Created by CPC&rsquo;s Senior Applications Developer (Bilal Fladger)</li>
<li>Application that analyzes freight data and provides immediate reports on savings and compliance</li>
</ul>
</li>
<li>CPC Newsletter (example below)
<ul>
<li>Roughly every month CPC publishes a newsletter that is sent to our past clients, current clients, industry experts, etc</li>
<li>CPC utilizes Constant Contact as a source for creating and publishing the newsletter</li>
<li>Username: cpopick</li>
<li>Password: noah102595</li>
<li>Depending on the season the number of articles range from three to five
<ul>
<li>Search for pictures to accompany articles</li>
</ul>
</li>
<li>Articles are found by using key words to search in Google and Google News</li>
<li>Sometimes CPC publishes the article and provides a short commentary, or CPC will summarize the article and provide insight</li>
<li>Articles are published at 8:00AM PST on either Tuesdays or Thursdays</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
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<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<ul>
<li><strong>Industry Overview</strong>
<ul>
<li>Domestic
<ul>
<li>Intermodal: Involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transportation without any handling of the freight itself when changing modes
<ul>
<li>Trailers are loaded onto train flatbeds and delivered to the rail yards where a trucker will pull the trailer.</li>
<li>Usually one day slower than over the road.</li>
<li>Can be 25-35% less expensive, especially when diesel prices are higher. The top three companies that do intermodal are JB Hunt, CH Robinson, and Schneider</li>
</ul>
</li>
<li>Domestic Freight Forwarding:
<ul>
<li>Freight that requires faster times than LTL or FTL.</li>
<li>Can be a combination of modes such as air freight combined with truck to make delivery times from overnight to 5 days.</li>
<li>Also used for special handling or delicate cargo where there is less handling.</li>
<li>Freight forwarders do not own any equipment but they buy space from companies that do have equipment.</li>
<li>Pricing is either by lane, airport code to airport code, or zones.</li>
<li><a href="#Dim">Dim</a> is a large part of their business and can range from 166 to 350.</li>
<li>This service is used a lot for Alaska, Hawaii, and Puerto Rico shipments.</li>
</ul>
</li>
<li>Trucking
<ul>
<li>Full Truck Load (FTL): Carriers normally deliver a semi trailer to a shipper who will fill the trailer with freight for one destination. After the trailer is loaded, the driver returns to the shipper to collect the required paperwork (bill of lading, invoice, customs paperwork) and depart with the trailer containing freight. Usually the driver then proceeds directly to the consignee and delivers the freight themselves. Sometimes a driver will transfer the trailer to another driver who will drive the freight the rest of the way. An advantage of FTL over LTL is that the freight is never handled en route, whereas LTL shipments are unloaded and reloaded as necessary.</li>
<li>Shipper has BOL and trucking company picks this up and delivers from point to point or has stops in between.</li>
<li>Cost is per mile and minimum charge.</li>
<li>Truckers must secure appointments with consignees.</li>
<li>FTL could be used as alternative to LTL if you introduce stops and can be more cost effective than an LTL shipment.</li>
<li>Less Than Truckload (LTL): An acronym that stands for Less than Truckload freight. LTL freight ranges between 100 and 20,000 lbs. When the item you need shipped or transported is too large to take to a Post Office or your local parcel company, freight is seen as a more economical approach. Freight shipping is the easiest way to move large and bulky items quickly, efficiently and economically. Many commodities can be classified as LTL freight: blanket-wrapped furniture, palletized or crated appliances, motorcycles, palletized boxes, etc. If your freight weighs more than 100 lbs and does not fill a full dedicated truck, than it is likely you need to ship LTL freight. Perishables, however, require a dedicated truck for refrigeration.</li>
<li>History of LTL: Classified freight with different rate tables with multi weight breaks and discounts off of those. There were many rules and extra charges. In 1980 deregulation allowed shippers and carriers to negotiate outside of those structured tariffs. CPC method to optimize is to create simplified cost per pound, minimum charge format and fuel being reset to zero. Freight is usually palletized and weighs from 350 to 15,000 lbs. Usage of regional carriers up to 750 miles from origin and national carriers are used for areas further than that. Transit times range from over to six days. LTL shipping is the most negotiable due to deregulation.</li>
<li><a href="#Interlining">Interlining</a> is sometimes utilized but is usually costlier than direct.
<ul>
<li>Many rules and extra charges</li>
</ul>
</li>
<li>First Mile/Final Mile: Customers who choose to pay additional for these services have special pickup or delivery needs. First mile refers to services wherein the driver is needed for inside pickup, packaging and dismantling, stair carries and more.</li>
<li>Freight Class: A freight class refers to the National Motor Freight Classification (NMFC) and it is the category of your freight as defined by the NMFC. Your shipment&rsquo;s freight class ultimately is what determines the total cost charged by the carrier for shipping your item. There are 18 freight class ranging from 50 (the least expensive class) to 500 (the most expensive class). Your NMFC number or freight class determines your total shipping charges. For this reason, it is critical that you know the correct NMFC number in order to receive accurate freight charges and to ensure that the carrier does not re-class your shipment, which could result in a higher shipping charge. There are some commodities or combinations of transportation characteristics that have not been classified by a NMFC number. In these special cases, a Not On Index (NOI) calculation based on Pounds per Cubic Foot (PPCFT) can be used to determine the cost to ship your freight.</li>
</ul>
</li>
<li>Parcel (Put in the CPC service levels)
<ul>
<li>2 main carriers, UPS and FedEx. There is a new hybrid service that combines US Mail and one of those parcel companies or other forwarders that use US Mail.</li>
<li>Freight that is in individual boxes, sometimes combine together that they call hundred weight. So instead of individual priced boxes it is a combination of combined weight.
<ul>
<li>Hundred weight box is dimensionalized and it is 166 for domestic.</li>
<li>Typically refer to multipiece shipments as &ldquo;<a href="#Hundredweight">hundredweight</a>&rdquo;</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
<p>&nbsp;shipments as the rating is based on 100 lbs.</p>
<ul>
<li>Rating is per pound based on increments of one hundred pounds.</li>
</ul>
<ul>
<li>How to determine pricing</li>
<li>Ways to save money with parcel is to do <a href="#ZoneSkipping">zone skipping</a>. Works well with medium weight shipments with high zones.</li>
<li>Traditionally only handles pieces weighing less than approximately 150 lbs.</li>
<li>There are rules for oversize packages which incur extra cost.</li>
<li>Almost impossible to customize FSC or extra charges.</li>
<li>Ways to optimize small parcel
<ul>
<li>Look at the minimum charge which is usually zone 2 1lb, and try to get a minimum exception rule to reduce the floor.</li>
<li>Earned discounts vs net rebates. Earned discounts give you a higher discount opposed to a net rebate.</li>
<li>Every year there is a general rate increase and smart shippers put a cap on it.</li>
</ul>
</li>
<li>Zones: Postal zones are based on the distance that a mail piece travels from origination to destination. These distances are formulated into zones. The first 3 digits of your destination zip code determine the shipping zone for your mail piece. Each zone has a different rate</li>
</ul>
<ul>
<li>Packaging
<ul>
<li>Freight is usually loaded onto pallets for unit loads. Sturdy shipping containers such as crates or cardboard boxes are commonly used. Carriers have published tariffs that provide some guidance for packaging.</li>
<li>Truckload shipments are sometimes broken down into individual containers and further shipped by LTL or express carriers. Packaging for TL often needs to withstand the more severe handling of individual shipments. A typical full truckload for a dry van trailer consist of 24 standard pallets of cargo that weights up to 42,000 lbs or more.</li>
<li>48 by 40 for domestic (excluding Wal-Mart)</li>
</ul>
</li>
<li>Hawaii Freight
<ul>
<li>Ocean
<ul>
<li>2 ocean carriers: Horizon and Matson</li>
<li>Hawaii freight has very special rules that make it expensive</li>
<li>Anomaly is that less than container load can be cheaper than a full container load. Because what the forwarder can do is optimize the weight so if you have heavy cargo then there is a restriction on how much you can put in there. And, if you have light cargo you are not using the full potential of the container. So you can mix the freight together to optimize the weight therefore lowering the cost. Many rules, regulations, and extra charges. Very difficult to negotiate anything lower. Use specialty forwarder for Hawaii services.</li>
<li>A lot of refrigeration is used because all food is imported to Hawaii</li>
<li>Air service is not as restrictive as ocean.</li>
<li>A 40 foot container going to Hawaii could cost you $7,000.</li>
</ul>
</li>
<li>International</li>
<li>Ocean Freight
<ul>
<li>FCL (Full Container Load)
<ul>
<li>Flat fee per 20` container, 40` container or 40` high cube container and the amount is dependent on factors including origin, destination, volume, time of year, plus many other variables</li>
</ul>
</li>
<li>LCL (Less than Container Load)
<ul>
<li>When you do not have enough cargo to fill a shipping container you have the option of LCL</li>
</ul>
</li>
<li>Air Freight
<ul>
<li>Counter to Counter</li>
<li>Consolidated</li>
<li>Dedicated Charter</li>
</ul>
</li>
<li>Freight Forwarder
<ul>
<li>Also known as an NVOCC (Non-Vessel Operating Common Carrier) is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution</li>
<li>NVOCC&rsquo;s are great resources because they buy lots of containers that allow them to get better rates</li>
<li>International Freight Forwarders have additional expertise in preparing and processing customs and other documentation and performing activities pertaining to international shipments
<ul>
<li>Information typically reviewed by a freight forwarder includes the <a href="#CommercialInvoice">commercial invoice</a>, <a href="#EEI">EEI</a>, <a href="#BillofLading">bill of lading</a> and other documents required by the carrier or country of export, import, and/or transshipment</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
<p>&nbsp;</p>
<ul>
<li><strong>Locating Information </strong>
<ul>
<li>Information can be found in several different forms around the office</li>
<li>All client information is located on the server (CPCSRV2)
<ul>
<li>All employees have access to the shared drive</li>
<li>Any document pertaining to a project is accessed and saved on the server</li>
<li>Each client has its own folder</li>
<li></li>
</ul>
</li>
</ul>
</li>
</ul>
<ul>
<li><br /> In each client folder are additional folders indicating the type of project we&rsquo;re working (example below and can be found in \\Cpcsrv2\cpc\Clients\Epson)</li>
<li>CPC always indicates the project year, as you can see above, so we can easily keep track of projects. This is because we may do several projects with the same client and sometimes redo the same bid just in a different year</li>
<li>In the above screenshot you can also notice an Access Database</li>
<li>Each client has their own Access Database with their data in it</li>
<li>Within each project folder are more folders that are standard to every project</li>
</ul>
<ul>
<li>Hardcopies of past projects can be found on the bookshelf
<ul>
<li>When we present each project to our clients we create Synopsis binders for each team member. We also create one for CPC records</li>
<li>Contents of the Synopsis books are: (example is from Kawasaki LTL Bid)
<ul>
<li>Synopsis Tutorial (separate PowerPoint booklet)</li>
<li>Introduction</li>
<li>Financial Summary</li>
<li>Questionnaire</li>
<li>Finalist Interview</li>
<li>Contracting</li>
</ul>
</li>
<li>Synopsis Tutorial:
<ul>
<li>Tutorial that explains how to understand the entire Synopsis binder</li>
</ul>
</li>
<li>Introduction:
<ul>
<li>Bidders participating</li>
<li>Savings Summary for minimum and rated shipments</li>
<li>Synopsis Summary &ndash; PowerPoint that summarizes the results</li>
</ul>
</li>
<li>Financial Summary: (example from LTL project)
<ul>
<li>LTL Rated &amp; Minimums &ndash; Total cost of each carrier and the savings</li>
<li>Lane Rate Comparison &ndash; Shows the cost per pound of each lane</li>
</ul>
</li>
<li><a href="#Questionnaire">Questionnaire</a>: (one of the RFP package documents sent to each carrier)
<ul>
<li>Compiled list of all the questions and answers from each carrier</li>
</ul>
</li>
<li>Finalist Interview:
<ul>
<li>Finalize Pricing</li>
</ul>
</li>
<li>Contracting:
<ul>
<li>Statement of Work</li>
<li><a href="#MSA">Master Service Agreement</a> (MSA) Review</li>
</ul>
</li>
<li>CPC Admin
<ul>
<li>In this folder are general company administrative documents</li>
<li>Some of the most commonly used documents are in the folders
<ul>
<li><a href="#CPCCollateral">CPC Collateral</a>
<ul>
<li>Ready to use</li>
<li>Multiple decks for different purposes</li>
<li>General freight payment data pitch</li>
<li>General introduction</li>
<li>One pager</li>
<li>Strategic partnerships</li>
<li>These deck can be found in \\Cpcsrv2\cpc\CPC Admin\CPC Introduction Resources</li>
</ul>
</li>
<li><a href="#CPCBusinessCards">CPC Business Cards</a></li>
<li><a href="#CPCConferenceRoomWall">CPC Conference Room Wall</a></li>
<li><a href="#CPCHolidayCard">CPC Holiday Card</a></li>
</ul>
</li>
<li>Versioning is a process CPC adheres to that means marking documents that will most likely be updated in the future with the name V1, or V2, or V3 and so forth. CPC does this to keep track of how many iterations we have edited and so we know who worked on it</li>
<li>Remote Desktop Connection: CPC utilizes the Microsoft Windows capability of allowing a user to take control of a remote computer or virtual machine over a network connection</li>
<li>Virtual Private Network (VPN): CPC uses a VPN which is a method employing encryption to provide secure access to a remote computer over the internet. This allows us to work from home or other offices if we&rsquo;re traveling</li>
<li>Shared Drive: CPC saves all information on the shared drive so everyone can access it at all times. It is also backed-up on another drive</li>
</ul>
</li>
<li>Templates
<ul>
<li>CPC utilizes past templates to create deliverables for projects</li>
<li>PowerPoint Templates can be found in CPC Admin (\\Cpcsrv2\cpc\CPC Admin\CPC Templates\2016 Templates)</li>
<li>Templates for the RFP Process (discussed further on in document) can be found in the folder above</li>
<li>CPC then customize the documents to fit the client and the project</li>
<li>CPC has many different templates in all different formats
<ul>
<li>Excel</li>
<li>Word</li>
<li>PowerPoint</li>
<li>Visio: Reference maps, flow charts</li>
</ul>
</li>
<li>Templates can be found in past client folders
<ul>
<li>Most of the time if the project mode is the same, the same document templates can be used</li>
</ul>
</li>
<li>CPC also utilizes the same theme for all our PowerPoint&rsquo;s
<ul>
<li>CPC has a custom designed theme that encompasses our colors and logo (example shown below)</li>
<li>CPC finds the clients logo and places it in the bottom left hand corner</li>
<li>Document title goes on the gold block</li>
<li>Date that presentation is presented goes below the title. CPC spells out the month and then after is the day and the year.</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
<ul>
<li>CPC <a href="#ServiceLevels">Service Levels</a>
<ul>
<li>CPC created its own service level identification codes so that they would be the same for all carriers. FedEx and UPS have different names for the same service levels so when CPC does an analysis we like to have standard codes</li>
<li>1DS = Overnight by 5pm</li>
<li>2D = 2<sup>nd</sup> Day by 5pm</li>
<li>2DA 2<sup>nd</sup> Day by 8am</li>
<li>3D = 3<sup>rd</sup> Day by 5pm</li>
<li>1DA = Overnight by 8:00am</li>
<li>GND = Ground</li>
<li>IE = International Economy</li>
<li>IP = International Priority</li>
<li>1DP = Overnight by 10:30am</li>
<li>SP = SurePost</li>
<li>SPX = SmallParcelDomestic</li>
<li>ISPX = SmallParcelIntl</li>
</ul>
</li>
</ul>
<p>&nbsp;</p>
<ul>
<li><strong>CPC Tools</strong>
<ul>
<li>Average Zone Calculation (hyperlink to zip to zone tool)
<ul>
<li>(Example in project folder)</li>
<li>Zone, # of shipments</li>
</ul>
</li>
<li>Re-rating Instructions
<ul>
<li>Re-rating is a tool for on the fly analysis</li>
</ul>
</li>
<li>When doing re-rating for rate tables, to find the Net Rates when given base rates + discounts: If there is a Tiered discount AND a Ground discount or another service level discount, you add those 2 discounts together. Ex. Tiered discount is 15.6% and Ground discount is 41%, then the total discount would be 56.6%, but since you are going to be using that in the IF statement, you need to do 100-56.6 = 43.4 or 0.434.</li>
<li>Then for Ground shipments there are almost always MINIMUM shipments, therefore you first have to figure out what the MINIMUM shipment rate is.</li>
<li>On the UPS or FedEx contract, it will say what the adjustment is. Ex. Minimum adjustment for Ground Commercial Zone 2, 1lb is -$0.46, so what that means is, you take the Base Rate for Zone 2, 1 lb and you minus the 0.46, so if it's $6.24 then the MINIMUM would be $5.78</li>
<li>Then to do the actual re-rating, you need to use an IF statement, but you have to make sure you look at the weight breaks in the contract for that service level, Ground, in this case. Usually the discounts change after a certain weight, so you have to make sure you are aware of that when doing the IF statement. Ex. For weights 1-20, the discount might be 41%, but from 20-70 it's 48%.</li>
<li>The equation for weights 1-20 (use filters in Excel) would be: use the first rate for the base rate, Zone 2, 1 lb=IF(Base Rate cell)*0.434&lt;5.78, 5.78, (Base Rate cell)*0.434.</li>
<li>That's saying, IF the base rate x 43.4% is LESS THAN the 5.78, then it will be 5.78 (MINIMUM), if NOT, then it will be the base rate x 43.4%.</li>
<li>Then to do the other weights, you would again filter on Greater than 20 for everything higher than 20 lbs, and then the equation will likely change but only the percentage usually. The MINIMUM will probably stay the same.</li>
</ul>
</li>
</ul>
<ul>
<li>Microsoft Office Access
<ul>
<li>Essential tool used in many ways by CPC</li>
<li>MS Access is an information management tool that helps you store information for reference, reporting, and analysis.</li>
<li>MS Access, being a database, analyzes large amounts of information much more efficiently than Excel and other similar applications.</li>
<li>MS Access&rsquo;s limit is 2 gigabytes of data. If more capacity is needed, you can link files together.</li>
<li>Some of the ways CPC utilizes Access is:
<ul>
<li><a href="#ZiptoZoneTool">Zip to Zone Tool</a></li>
<li><a href="#BidTool">Bid Tool</a></li>
<li><a href="#Assessment">Assessments</a></li>
<li>Compliance Tool</li>
<li>Transit Time Study
<ul>
<li>Report that determines which shipments were late and by how many days</li>
</ul>
</li>
<li>Reports
<ul>
<li>Assessment</li>
<li>Shipping Profiles</li>
<li>Savings Reports</li>
<li>Dim analysis</li>
<li>On-Time Report</li>
<li>YOY Report</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
<p>&nbsp;</p>
<ul>
<li><strong>RFP Process (Transportation Procurement Event)</strong>
<ul>
<li>Prior to engaging with client, CPC completes a free assessment to determine projected savings</li>
<li>Create an Assessment PowerPoint demonstrating how CPC calculated the savings</li>
<li>Present findings to client either in person or through a conference call</li>
<li>Client agrees to move forward</li>
<li>Assign analyst(s) to project and meet together at CPC HQ to go over project requirements</li>
<li>Create a Kick-Off Deck customized for the client that outlines a timeline and checkpoints for the project (example is Epson LTL Kick-Off_922015 and document can also be found in \\Cpcsrv2\cpc\Clients\Epson\2015_LTL)</li>
<li>Meet with client to gather requirements</li>
<li>Combine notes taken at Kick-Off meeting and compile into one document (example can be found in \\Cpcsrv2\cpc\Clients\Epson\2015_LTL\RFP\Meeting Notes)</li>
<li>Reference previous RFP carrier list and have client pick carriers they would like to invite</li>
<li>Once engaged, mutual NDA&rsquo;s are sent to each carrier for their signature</li>
<li>Send out Carrier Letters via email to each carrier outlining the project and the requirements provided by the client (example can be found in \\Cpcsrv2\cpc\Clients\Epson\2015_LTL\RFP\Carriers\ADP\RFP Package)</li>
<li>Wait for carriers to accept or decline participation</li>
<li>Create an RFP Log that documents the carrier, representative, their email and phone number, and dates of received documents and confirmations (example below and document can also be found in \\Cpcsrv2\cpc\Clients\Epson\2015_LTL\RFP)</li>
<li>RFP documents are then created/customized for each carrier and stored in separate folders (examples of documents can be found in \\Cpcsrv2\cpc\Clients\Epson\2015_LTL\RFP\Carriers\ADP\RFP Package)
<ul>
<li>Documents include:
<ul>
<li><a href="#ExhibitAQuestionnaire">Exhibit A Questionnaire</a></li>
<li><a href="#ExhibitBPricingSheet">Exhibit B Pricing Sheet</a></li>
<li><a href="#ExhibitCSampleData">Exhibit C Sample Data</a></li>
<li><a href="#ExhibitDFuelPrice">Exhibit D Fuel Prices</a></li>
<li><a href="#ExhibitETransitTime">Exhibit E Transit Times</a></li>
</ul>
</li>
<li><a href="#RFPPackage">RFP Packages</a> are distributed to each carrier via email (example below and document can also be found in&hellip;)</li>
<li>Carriers will usually email or call periodically with questions or clarifications</li>
<li>As these questions come in, a QA Document is created that will later be sent out to the carriers
<ul>
<li>Typically there are several releases of QA Documents (as many as needed)</li>
</ul>
</li>
<li>RFP Packages are completed and returned</li>
<li>Analysis begins after Exhibit B Pricing Sheets are imported and compared</li>
<li>Multiple <a href="#Scenarios">scenarios</a> are created from analysis after extensive vetting
<ul>
<li>Done off site</li>
</ul>
</li>
<li>After analysis a Synopsis of results are put into a PowerPoint and presented to client (example can be found in \\Cpcsrv2\cpc\Clients\Epson\2015_LTL\RFP\Synopsis)</li>
<li>Finalists are chosen
<ul>
<li>Finalists are notified via email that they are invited to participate in the Reverse Auction (example below and document can also be found in \\Cpcsrv2\cpc\Kelsey\Infrastructure Project)</li>
<li>Non-Finalists are notified they have not been chosen to move forward with the client (example below and document can also be found in \\Cpcsrv2\cpc\Kelsey\Infrastructure Project)</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
<ul>
<li><a href="#ReverseAuction">Reverse Auction</a> schedules are determined and finalists are notified. Finalist are in order from highest rates to lowest rates (example below and document can also be found in \\Cpcsrv2\cpc\Kelsey\Infrastructure Project)</li>
<li>To prepare for Reverse Auction client creates questions for carriers to answer during Reverse Auction, and CPC passes them on to carriers a week in advance
<ul>
<li>Sent out prior to finalist meeting for carriers to prepare</li>
<li>(example can be found in \\Cpcsrv2\cpc\Clients\Epson\2015_LTL\RFP\Reverse Auction)</li>
</ul>
</li>
<li>Day of Reverse Auction we utilize at least two CPC analysts as well as the Principal</li>
<li>Documents to bring to meetings include
<ul>
<li>Schedule for day(s) one for every team member (example can be found in \\Cpcsrv2\cpc\Kelsey\Infrastructure Project)</li>
<li>Total Cost sheets (prepared by principal)</li>
<li>Variance graphs (prepared by principal)</li>
</ul>
</li>
<li>During meetings it is important for carriers to never see one another
<ul>
<li>We ask for two rooms (one for meeting, one for analysis)</li>
<li>Carriers either wait in lobby or specified room</li>
<li>One analyst greets carriers and the other escorts carriers out</li>
</ul>
</li>
<li>During meetings carriers introduce their company and what sets them apart from the others</li>
<li>They then are granted one more chance to address pricing
<ul>
<li>During this period carriers talk with their pricing managers to adjust pricing if they can (roughly 20 minutes)</li>
<li>CPC and client leave the room</li>
</ul>
</li>
<li>CPC and client resume meeting with carrier to conclude meeting</li>
<li>Carriers are escorted out by analyst making sure to not make contact with next carrier</li>
<li>Principal then takes adjusted pricing and runs it through bid tool to recalculate lowest rates per lane</li>
<li>Next carriers are escorted in and the process continues</li>
<li>After finalist interviews are completed, final analysis begins</li>
<li>Client and CPC then discuss results and finalists are chosen
<ul>
<li>Occasionally the client will want more time to finalize their decision</li>
</ul>
</li>
<li>CPC personally calls each finalist
<ul>
<li>Winners are congratulated</li>
<li>Non-winners are thanked for their participation and are given the opportunity to meet with CPC in 3 weeks time to discuss why they were not selected</li>
</ul>
</li>
<li><a href="#SOW">SOW</a>&rsquo;s are created/customized for each carrier and sent to the carrier for them to redline or sign (example can be found in \\Cpcsrv2\cpc\Clients\Epson\2015_LTL\Agreements\Carrier SOWs)
<ul>
<li>Within each SOW are the lanes that carrier was awarded and the rates they proposed</li>
</ul>
</li>
<li>As the SOW&rsquo;s are returned to us we create a Revision Table document that summarizes the redlines (an example can be found in \\Cpcsrv2\cpc\Clients\Tom\Kawasaki\Agreements\SOW Summary Tables)</li>
<li>Once we receive back all the SOW&rsquo;s and complete the Revision Table documents we send them to the client to review</li>
<li>The client lets us know which changes are permitted and the ones that are not</li>
<li>We send the Revision Tables to the carriers with the notes from the client</li>
<li>Usually the carriers will agree to the changes that the client permits/does not permit and will sign the SOW</li>
<li>Non-winners are then permitted to schedule a post mortem meeting</li>
</ul>
<ul>
<li><strong>Communication</strong>
<ul>
<li>CPC&rsquo;s main communication tools are
<ul>
<li>Email</li>
<li>Skype</li>
<li>Conference calls</li>
<li>Phone calls</li>
<li>In-person meetings</li>
<li>Website</li>
</ul>
</li>
<li>All email addresses associated with CPC use the format
<ul>
<li>(first name).(last name)@cpc-consultants.net</li>
<li>When emailing internally we always CC everyone in the company</li>
<li>When emailing a client we always CC at least the principal</li>
</ul>
</li>
<li>Skype is an important communication tool within CPC
<ul>
<li>All employees communicate with each other through Skype
<ul>
<li>Skype chat is used when simple questions need answers or if there is an update</li>
<li>Skype video is used in the event of travel or if training is needed</li>
<li>The Skype screenshare tool is heavily utilized</li>
</ul>
</li>
<li>CPC has a conference phone in the conference room that is used in a group setting
<ul>
<li>Vast conference number: (951) 797-1058</li>
<li>Code: 546016</li>
<li>Host Code: 9901</li>
</ul>
</li>
<li>Each employee has their own office phone and extension line
<ul>
<li>We have the ability to transfer phone calls to any of the extension lines
<ul>
<li>When you are on the phone hit the transfer button and then type in the extension number and hit send. Then just hang up the phone.</li>
</ul>
</li>
<li>If a client is local we will usually hold in person meetings
<ul>
<li>Sometimes we visit the client and in other cases the client will come to CPC&rsquo;s office</li>
<li>Carrier meetings with the clients</li>
<li>In both cases CPC employees dress in business attire</li>
</ul>
</li>
<li>Companies can request an assessment through our website by filling out a form that is emailed to us
<ul>
<li>Name, email, phone, company</li>
<li>What commodity are you shipping?</li>
<li>What modes of transportation do you currently use?</li>
</ul>
</li>
<li><strong>Succeeding at CPC</strong>
<ul>
<li>General understanding of the industry and all the services CPC offers
<ul>
<li>Knowledge of the most commonly used industry terms</li>
<li>A broad overview of how the industry operates</li>
<li>What CPC does for its clients</li>
<li>Review past clients and the projects CPC completed for them
<ul>
<li>This will help form an approach, add structure, and show you what the end product should look like</li>
</ul>
</li>
<li>Communication is one of the key ways to succeed at CPC
<ul>
<li>Understanding an assignment is the first step</li>
<li>Making sure you understand the steps involved in completing the task, as well as the pieces that comprise it</li>
<li>Asking questions if you are even slightly unsure of something
<ul>
<li>It&rsquo;s always better to clarify something from the beginning rather then get too far into it and realize you made a mistake that now cannot be undone</li>
<li>Not being overly confident. It&rsquo;s okay to say &ldquo;I don&rsquo;t understand&rdquo;. It&rsquo;s more important to understand what the task is, than to simply say that you understand something and then start doing it and realizing that you don&rsquo;t really understand</li>
<li>Explain the approach you are going to take to complete a task and question if it&rsquo;s the best way to do it. This process will ensure you understand the task at hand, the steps to complete it, and the best approach</li>
<li>When asking a question or explaining something verbally it is crucial to be brief. Get straight to the point with as few words as possible</li>
</ul>
</li>
<li>Make sure you understand what you did to complete a task so that you can explain it if something doesn&rsquo;t seem correct. This method will cut down time when figuring out where the error was made and rectifying it</li>
<li>When communicating via email it is important to be concise
<ul>
<li>Titling the email with a subject line that is simple and to the point</li>
<li>The body of the email should be as short as possible and straight forward. If you&rsquo;re asking a question explain what you did leading up to where you are, then what you&rsquo;re unsure of, and then how you think the problem can be solved</li>
<li>If you are sending a summary email with an attachment to be reviewed then highlight, using bullet points, the main points of the document</li>
</ul>
</li>
<li>Being proactive and taking initiative
<ul>
<li>Performing tasks without being told to do them
<ul>
<li>This applies to anything</li>
<li>Keep a list of all the reports you run and their start and due dates. Understand when to request the data to run your reports without having to be reminded</li>
<li>When you have completed your assignment and need more work to do, make it known that you have bandwidth</li>
</ul>
</li>
<li>Follow protocol
<ul>
<li>Almost all our processes have a repetitive method
<ul>
<li>Becoming familiar with the processes will make tasks much easier and quicker</li>
</ul>
</li>
<li>Many of the things we do for clients have existing templates that can be modified. This saves a lot of time since there is already a framework to follow. Ask the Principal which customer closely resembles the project at hand
<ul>
<li>Access databases</li>
<li>Document templates</li>
<li>PowerPoint templates</li>
<li>Email templates</li>
<li>Existing maps</li>
</ul>
</li>
<li>Understanding how to conduct business professionally
<ul>
<li>Email etiquette</li>
<li>Office phone etiquette
<ul>
<li>&ldquo;CPC Consultants this is (name)&rdquo;</li>
<li>Being polite and kind</li>
<li>Taking down their name and phone number</li>
</ul>
</li>
<li>Meeting etiquette
<ul>
<li>Stay off cell phones unless emergency</li>
<li>Pay attention and take notes</li>
</ul>
</li>
<li>Keeping the whiteboard updated
<ul>
<li>Clients and our current projects with them are kept track of on a big whiteboard</li>
<li>We also list who is working on the project and the current status of it</li>
<li>We try to keep the board updated weekly</li>
<li>Staying on top of this will help keep people accountable and on track to meet deadlines</li>
</ul>
</li>
<li>Staying up to date on inventory
<ul>
<li>This is crucial in order for CPC to be successful all the time</li>
<li>CPC always needs to have plenty of paper on hand. There should never be a time where we are completely out of paper for the printer</li>
<li>Stocking up on toner for both printers</li>
<li>Three ring binders for RFP&rsquo;s</li>
<li>Binder dividers</li>
<li>Sticky tabs for the dividers</li>
<li>Monitoring the coffee and ordering more when we&rsquo;re low</li>
<li>Business cards</li>
</ul>
</li>
<li>Think outside of the box
<ul>
<li>Many tasks involve thinking outside of the box</li>
<li>There could be several ways to solve a problem but recognizing the most efficient path is crucial</li>
<li>Because every project CPC works on is unique, there can be a lot of problem solving involved that requires you to be creative</li>
<li>As you&rsquo;re performing tasks think of ways to be more efficient</li>
</ul>
</li>
<li>Owning your work
<ul>
<li>If assigned a task it is imperative to see it to the end
<ul>
<li>What this means is, even if you are not going to be the one to send the work to the client, you must still be on top of the progress and ensure the deadline is met</li>
</ul>
</li>
<li>Juggle priorities
<ul>
<li>Often times you will have to work on multiple tasks at once. It is crucial to understand which task to complete first.</li>
</ul>
</li>
<li>Be resourceful
<ul>
<li>If you have a question usually the answer can be found on the internet. Try finding out an answer on your own before asking for the answer from someone else</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><strong>Past/Current Clients &amp; Projects</strong></p>
<ul>
<li>Atmel
<ul>
<li>International RFP (2015)</li>
</ul>
</li>
<li>Biotronik
<ul>
<li>Parcel RFP (2011)</li>
</ul>
</li>
<li>CBeyond
<ul>
<li>2008-2015</li>
</ul>
</li>
<li>Clifford
<ul>
<li>International, Reporting (1998-2001)</li>
</ul>
</li>
<li>Epson
<ul>
<li>Parcel (2014)</li>
<li>LTL (2015)</li>
<li>3PL (2016)</li>
<li>Possibly Latin America (2017)</li>
</ul>
</li>
<li>Fujifilm
<ul>
<li>Parcel (2014)</li>
<li>LTL Benchmark (2015)</li>
</ul>
</li>
<li>Glovis
<ul>
<li>Benchmarking, Retainer (2014-Now)</li>
</ul>
</li>
<li>Ground Effects
<ul>
<li>Cross Dock West Coast Implementation (2014)</li>
</ul>
</li>
<li>Hautelook (Nordstrom)
<ul>
<li>Parcel RFP (2008, 2009, 2010)</li>
<li>Warehouse Redesign (2010)</li>
<li>Automation Equipment Removal and Moving (2010)</li>
</ul>
</li>
<li>Hitachi
<ul>
<li>Benchmarking (2000)</li>
</ul>
</li>
<li>Hyundai Translead
<ul>
<li>Operational Benchmark Review (2012)</li>
</ul>
</li>
<li>Kawasaki
<ul>
<li>Routing Guide (2014)</li>
<li>LTL (2015)</li>
<li>Retainer (2016)</li>
<li>Possibly Vehicles (2017)</li>
</ul>
</li>
<li>Kellogg
<ul>
<li>FTL (2016-Now)</li>
</ul>
</li>
<li>Koyorad
<ul>
<li>International (2011)</li>
</ul>
</li>
<li>Marukome
<ul>
<li>All modes (2011)</li>
</ul>
</li>
<li>Nissin
<ul>
<li>FTL (2013)</li>
</ul>
</li>
<li>Panasonic
<ul>
<li>Small Parcel RFP (2001)</li>
</ul>
</li>
<li>Saab
<ul>
<li>LTL (2013)</li>
</ul>
</li>
<li>Safariland
<ul>
<li>LTL (2013)</li>
</ul>
</li>
<li>Sonance
<ul>
<li>International Ocean (2011)</li>
<li>Hong Kong Hub (2013)</li>
<li>Possibly Network Redesign (2016)</li>
</ul>
</li>
<li>Sperian (Honeywell) (2009-2011)
<ul>
<li>All mode RFP Global</li>
<li>Network Redesign</li>
<li>Enhanced Reporting and Consulting</li>
</ul>
</li>
<li>Toyota
<ul>
<li>LTL (2014)</li>
</ul>
</li>
<li>TwinMed
<ul>
<li>LTL (2012)</li>
<li>FTL (2013)</li>
<li>International Ocean (2013)</li>
<li>LTL Reporting (2015-Now)</li>
<li>Parcel Reporting (2015-Now)</li>
</ul>
</li>
<li>QST
<ul>
<li>International Ocean (2016-Now)</li>
</ul>
</li>
<li>ZimmerBiomet
<ul>
<li>Southaven Warehouse Optimization (2014)</li>
<li>Clean Room (2014)</li>
<li>FCH (2015-2017)</li>
<li>Reporting (2015-Now)</li>
</ul>
</li>
</ul>
<h2>Glossary</h2>
<ul>
<li><strong>Accessorial Charge: </strong>Charges made for performing freight services beyond normal pickup and delivery such as inside delivery, waiting time, fuel surcharges, storage charge etc.</li>
<li><strong>Actual Weight: </strong>Package weight rounded up to the next whole pound.</li>
<li><strong>Assessment</strong><strong>: </strong>Analysis of clients shipping data that determines areas they can save money in.</li>
<li><strong>Baseline: </strong>Created during the Assessment stage of each project. Baseline is what is used to compare cost to determine savings.</li>
<li><strong>Bid Tool</strong><strong>: </strong>Tool created by CPC in Microsoft Access that facilitates us in the bidding process. Carrier rates can be changed on the spot to reveal lowest cost leaders.</li>
<li><strong>Bill of Lading</strong><strong>: </strong>A document issued by a carrier which details a shipment of merchandise and gives title of that shipment to a specified party.</li>
<li><strong>Commercial Invoice</strong><strong>: </strong>Document used in foreign trade that is a customs declaration provided by the person or corporation that is exporting an item across international borders.</li>
<li><strong>Compliance Report</strong><strong>: </strong>Clients don&rsquo;t always use the carriers they should after a bid so we can run a report to keep track of what percentage they are complying with who they agreed to use.</li>
<li><strong>Contracting: </strong>Client and carrier(s) then sign mutual contracts and work begins.</li>
<li><strong>CPC Collateral</strong><strong>: </strong>PowerPoint material to send to prospective clients that outline CPC&rsquo;s background and what CPC can do for them. Information in these documents are constantly updated.</li>
<li><strong>CPC Business Cards</strong><strong>: </strong>Template for creating CPC business cards. We then send the template to a company to produce the cards.</li>
<li><strong>CPC Conference Room Wall</strong><strong>: </strong>Pictures/posters that we either find off the internet, create, or are sent by our clients to put up in our conference room for our &ldquo;wall of fame&rdquo;.</li>
<li><strong>CPC Holiday Card</strong><strong>:</strong> All of the materials needed to create our annual Holiday card that we send to our clients and friends.</li>
<li><strong>Dim Weight</strong><strong>:</strong> Reflects package density, which is the amount of the space a package occupies in relation to its actual weight. To calculate domestic shipments the equation is <em>L x W x H / 166</em>, and the international shipment equation is <em>L x W x H / 139</em>.</li>
<li><strong>Dim Weight Analysis</strong><strong>:</strong> A report that shows the total dim weight packages that were shipped for that month as well as the dim weight total net charges, actual weight total net charges, and the savings.</li>
<li><strong>Domestic Air Freight</strong><strong>:</strong> Freight that is shipped via air to domestic destinations.</li>
<li><strong>Electronic Export Information (EEI)</strong><strong>:</strong> The electronic export data as filed in the Automated Export System. The electronic equivalent of the export data formerly collected as Shipper&rsquo;s Export Declaration (SED) information.</li>
<li><strong>Engage:</strong> Once the proposal is accepted by the client, CPC engages in the project.</li>
<li><strong>Exhibit A Questionnaire</strong><strong>:</strong> Excel document that contains questions provided by client and CPC for each carrier to answer. Some questions are standard to each project, while others are specific to the client and the client&rsquo;s needs.</li>
<li><strong>Exhibit B Pricing Sheet</strong><strong>:</strong> Excel document that lists each lane for the carriers to fill in with their rate. This document will differ depending on the mode.</li>
<li><strong>Exhibit C Sample Data</strong><strong>:</strong> Clients sample data for the carriers to use as a benchmark for determining pricing. Usually consists of ship city, destination city, and weight in pounds for each shipment.</li>
<li><strong>Exhibit D Fuel Prices</strong><strong>: </strong>Fuel surcharge matrix that outlines the dollar amount at which the carrier can begin to charge a percentage of fuel if fuel rates increase.</li>
<li><strong>Exhibit E Transit Times</strong><strong>: </strong>Excel document that lists each lane for the carriers to fill in with their transit time. The transit time is how many days it takes from point A to point B.</li>
<li><strong>FEU:</strong> Short for forty-foot equivalent unit</li>
<li><strong>Finalist Meeting:</strong> Once CPC creates the synopsis and discusses the results with the client, a finalist meeting is conducted with the client, finalist carriers, and CPC.</li>
<li><strong>Full Truck Load (FTL)</strong><strong>:</strong> The load will fill up the entire truck.</li>
<li><strong>Hundredweight</strong><strong>:</strong> Rate is multiplied by the shipment&rsquo;s weight and then divided by 100 and the rounded up to the nearest hundred.</li>
<li><strong>Interlining</strong><strong>:</strong> Carriers who do not provide direct service will contract another carrier for the job. Tends to be slower and costlier than direct. They use pro numbers.</li>
<li><strong>International Air Freight</strong><strong>:</strong> Freight that is shipped via air to international destinations. Fastest way to ship cargo but also the most costly.</li>
<li><strong>Less Than Truck Load </strong><strong>(LTL):</strong> Items being shipped will not take up the entire available space on the truck.</li>
<li><strong>Master Service Agreement (MSA)</strong><strong>:</strong> A contract reached between parties, in which the parties agree to most of the terms that will govern future transactions or future agreements.</li>
<li><strong>Ocean Freight</strong><strong>:</strong>
<ul>
<li>Full Container Load (FCL): Filling an entire container with cargo and shipping via freighter.</li>
<li>Less Than Container Load (LCL): Only taking up a portion of the container and only paying for that space.</li>
</ul>
</li>
<li><strong>On-Time Report</strong><strong>: </strong>Report that analyzes shipment details for shipments that were not on-time. If the carrier is at fault, this results in money from the carrier back to the shipper.</li>
<li><strong>Parcel</strong><strong>:</strong> Shipments under 70 pounds per carton and shipped in cartons, rather than on a pallet, are often moved via small package shipping with express carriers such as UPS or FedEx.</li>
<li><strong>Post Mortem Meeting:</strong> Final step in the RFP process but is only for the non-winners. Permitted to schedule a meeting with principal to discuss why they were not rewarded the business.</li>
<li><strong>Proposal:</strong> This step comes after the assessment and is when CPC creates a proposal for the project detailing the steps and cost of the project</li>
<li><strong>Rail</strong><strong>: </strong>Transporting goods via railway</li>
<li><strong>Requirements:</strong> After CPC engages with the client, CPC gathers requirements from the client about their current transportation program and what to improve. This step is a basis for how CPC molds the transportation project going forward.</li>
<li><strong>Reverse Auction</strong><strong>: </strong>A process that CPC facilities</li>
<li><strong>RFP Package</strong><strong>: </strong>Contains all the above documents and is sent as a bundle to each carrier for their completion.</li>
<li><strong>Savings Reports</strong><strong>:</strong> Basic report usually presented in PowerPoint that illustrates the savings for a given project. If requested by a client, these are usually done on a monthly basis.</li>
<li><strong>Scenarios</strong><strong>: </strong>Groupings of carriers depicting different variations the client can choose from.
<ul>
<li>Low cost leaders</li>
<li>Clients preference</li>
<li>Combination of regional and national carriers</li>
<li>Lowest transit times</li>
</ul>
</li>
<li><strong>Selection: </strong>Once the reverse auction is over it is then time for the client to decide the carrier(s) that best fit their transportation program based on their bid and finalist meeting.</li>
<li><strong>Service Levels</strong><strong>:</strong> Different levels of shipping ranging from overnight to three day transit.</li>
<li><strong>SOW</strong><strong>:</strong> A document routinely employed in the field of project management, which defines project-specific activities, deliverables and their respective timelines, all of which for a contractual obligation upon the vendor in providing services to the client.</li>
<li><strong>TEU:</strong> Short for twenty-foot equivalent unit is an inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals. It is based on the volume of a 20-foot-long intermodal container, a standard-sized metal box which can be easily transferred between different modes of transportation, such as ships, trains and trucks.</li>
<li><strong>Questionnaire</strong><strong>:</strong> Questions that are sent to each carrier for them to answer and send back. Once all the carriers send back their responses we compile the answers into one document. An example question is &ldquo;What process does your company use to mitigate damage?&rdquo;</li>
<li><strong>Zip to Zone Tool</strong><strong>:</strong> Determines what the zone is for a specific lane based on the origin 3 digit zip code and the destination 3 digit zip code and is used for computing average zone</li>
<li><strong>Zone Skipping</strong><strong>:</strong> Taking parcel shipments, putting them in a truckload and moving them to the furthest zone and inducting it into that carrier&rsquo;s network so you can reduce the zone and reduce the cost.</li>
</ul>