*R2 MR1007 PP\1\ P1HB0 P1FB0 P1C33 P1P\i\ P2P\i\ P3Q1 FHA1 FTT5 FSH150 FST150 FSS200 FSC150 FI3 DEPS.PD DC1 3 0 1 DDApple LaserWriter Plus DNLWP DP0,0,0 YCL99 YIWN2 *B0 S TTO: ALL EMPLOYEES BFT7 TFROM: KIM BROWN, OFFICE SERVICES  BOB MARSTON, CORPORATE PURCHASING TRE: OVERNIGHT COURIER COST REDUCTION OPPORTUNITIES TOvernight courier services, as well as other shipping costs, represented an expense of over 1 million dollars for our company last year. Although these services are integral to our operational requirements, we need to ensure maximum utilization of the resources available to us. TFor example, nearly 80% of all delivery activity is in OVERNIGHT letters. There are more cost-effective alternatives that provide similar results. By comparison, second-day service rates are 33% lower and in most cases these packages actually arrive the following day. The use of facsimile machines is encouraged as hard-copy can be provided for the cost of a phone call. A comprehensive list of the locations and numbers of facsimile machines is in the company telephone directory. TAlso, grouping materials for the same destination and sending them in bulk makes cost-effective sense. TEffective immediately, to better control shipping costs, ALL OVERNIGHT courier deliveries must be approved by a cost center manager. The manager must sign his/her name in the "Sender Reference" section of the airbill located next to the cost center number. TThere is the potential for us to save approximately $250,000 annually and better manage our resources. As an initial step, Corporate Purchasing, with the help of Transportation and Office Services, is evaluating proposals to standardize overnight courier service levels and costs. TWe look forward to your continued support that will help us reduce our costs in this area. *E