Industry_Day__2_1-on-1_Handout.pdf

Predecisional / FOUO

Domestic Pricing Structure & Key Questions

Component Detail Lane Structure Service area to service area

Linehaul Per cwt per mile, with mileage bands, varies by origin SA

O/D Fees Per cwt, varies by O/D SA

(Un)Packing Per cwt, varies by O/D SA

O/D Storage Per cwt / day1 varies by SA

Accessorials Under development

Mgmt Fee Flat rate per move

EPAs2 Set in contract

Peak Rates Separate peak / non-peak rates

• How does this proposed pricing structure impact your ability to price?

• How does the condensed distance bands and single per CWT rate impact your ability to price? Any suggested changes to the proposed method?

• The proposed structure bundles service fee and linehaul factor as one per cwt O/D fee. It also bundles specialty items and crating into pack / unpack fees. Does this impact your ability to price? If so, how?

• How do you manage the request or refusal of packing / unpacking services in your commercial business? How do you determine what constitutes a partial vs full (un)packing? How do you differentiate between pricing for partial and full?

How could this be applied to our proposed per cwt pack / unpack fee?

• Which accessorials must be priced as separate fees (vs. included in other prices)?

• Would paying a management fee earlier (e.g., monthly flat fee) alleviate some cash flow need? Would it result in better pricing?

Draft Domestic Pricing Structure Key Questions to Support Discussion

Do you have any additional innovative ideas to simplify the pricing structure?

1. First day and warehouse fee + additional per day fee 2. Economic price adjustments

International Pricing Structure & Key Questions

Component Detail

Lane Structure Country to country

Linehaul Per cwt with forwarding cost included

UB1 Per cwt single factor rate (excluding storage)

(Un)Packing Per cwt, varies by Rate Area

O/D Storage Per cwt / day2 varies by Rate Area

Accessorials Under development

Mgmt Fee Flat rate per move on HHG moves only

EPAs3 Set in contract

Peak Rates Separate peak / non-peak rates

• The proposed pricing structure is based on transportation suppliers using a country to country lane structure. What would the Government lose / gain by using this approach?

• The proposed pricing structure includes per cwt international shipping fees. How will using this model impact your pricing?

• Would including forwarding (i.e., linehaul) and customs costs in a country-to-country lane structure impact your pricing? If yes, how so?

• The proposed pricing structure allows for one management fee per shipment which includes tasks associated with both UB and HHG. How does this impact your pricing?

• Which accessorials must be priced as separate fees (vs. included in other prices)?

• What does the Government gain / lose by breaking out packing / unpacking fees from international linehaul fees?

Draft International Pricing Structure Key Questions to Support Discussion

1. Unaccompanied Baggage 2. First day and warehouse fee + additional per day fee 3. Economic price adjustments

Do you have any additional innovative ideas to simplify the pricing structure?

Topic Additional questions to facilitate discussion

Capacity • How much additional capacity can we expect by shifting management of our moves to you?

Peak vs. Non-Peak • How would you ensure higher peak season rates would result in improved capacity / quality? What is your experience in ensuring higher fees result in higher wages for movers? Is this different between international and domestic moves?

Coverage

• How do you use background checks in your hiring decisions, including subcontractor employees?

• How do you plan to ensure continued quality with new suppliers or previously disqualified suppliers?

• Do you allow use of day laborers? How do you ensure quality with suppliers that use day laborers?

Quality • What is your customer satisfaction survey process? Please describe it and how you use it in your current network

• What are the most critical KPI's to ensure quality? Please describe the typical service levels associated with them

NTS1 • Is it necessary to price all parts of NTS services (e.g., packing, handling in, linehaul, etc.) separate from HHG rates?

Systems • Would the proposed pricing structure significantly change your systems? If yes, how does it impact your timing / pricing?

Accessorials • What accessorial fees do you typically bundle with other fees or require as a minimum from your suppliers?

Domestic Linehaul • Do you have suggestions to improve how Service Areas are currently defined?

Packing / Unpacking • Are you able to bid against pack / unpack fees structured by weight? How will using this model affect your pricing?

• If your suppliers determine what gets crated, how do you prevent excess crating or not enough crating?

O/D Storage • Would pricing non-temporary storage fees in half month increments impact your pricing? If yes, how?

• Would using a per cwt storage fee instead of a volume-based storage fee impact your pricing? If yes, how so?

O/D Fee • What are the advantages / disadvantages to bundling service charges (e.g., elevator, flight, excess carries) into one fee?

Int'l Linehaul • Does bundling service fees (e.g., excess carries, stairs, etc.) into shipping / linehaul impact your pricing? If yes, how?

General Questions

1. Non-temporary storage