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 VendorsInformation Technology – Dell, Tech Depot

Office Supplies – Office DepotJanitorial 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 FedEx Agreement

New Pricing and Pricing Structure ChangesEffective 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 EXPRESSRate 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 $7.32

- Standard Overnight (guaranteed delivery 3 p.m. next business day) $8.41 $4.97 $6.12

- FedEx 2-day (guaranteed delivery by 4:30 p.m. the 2nd business day) $5.94 $4.95 $5.00

- FedEx Express Saver (guaranteed delivery by 4:30 p.m. the 3rd business day)

$5.67 $4.90 $5.00