Preferred Suppliers

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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
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Preferred Suppliers

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

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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

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New FedEx Agreement
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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

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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 1030
  a.m. next business day)
• 9.95 4.98 7.32
• - Standard Overnight (guaranteed delivery 3 p.m.
  next business day)
• 8.41 4.97 6.12
• - FedEx 2-day (guaranteed delivery by 430 p.m.
  the 2nd business day)
• 5.94 4.95 5.00
• - FedEx Express Saver (guaranteed delivery by
  430 p.m. the 3rd business day)
• 5.67 4.90 5.00