SUBJECT:

Cost Saving Inbound Shipping Program

As a cost savings objective, UC San Diego is leveraging the UC system-wide relationship with Vantage Point Logistics (VPL) to partner with UC's contracted carrier, UPS, to manage and monitor inbound freight charges. The Inbound Freight initiative is being launched February 17, 2015.

The initiative ensures the consistent use of UC negotiated rates which will allow for savings up to 40% over traditional shipping costs charged by the supplier.

The Integrated Procure-to-Pay Solutions team is currently requesting that suppliers shipping goods to the campus participate in the program. The team is continually onboarding suppliers identified as having significant shipping charges that would represent a cost savings by moving over to the UPS contract. Suppliers are being guided on the procedures that will allow them to conveniently and consistently use the UC rates. UPS will bill VPL for shipping charges and VPL will:

- monitor charges for accuracy and compliance with the established rates, and
- electronically invoice UC San Diego and break out the individual charges by purchase order.

The invoice will be paid referencing the corresponding Marketplace purchase order and will charge the designated Index. The charge will display Vantage Point Logistics as the supplier rather than the supplier on the original PO.

Placing orders in Marketplace remains the same.

This inbound shipping program will apply to all 'prepay and add shipments' and does not apply to 'freight included' shipments that have been negotiated by a specific agreement. If there are products that require special handling, which cannot be accommodated by UPS, suppliers are being advised to use the shipping service that can best handle the specific need.

For any questions or concerns, please contact the Inbound Freight Project Manager, Anne Hewett (ahewett@.UCSD.EDU).

Ted Johnson Associate Controller/ Chief Procurement Officer Business and Financial Services Faye E. Mc Cullough Director Disbursements and Travel Business and Financial Services