21
GS-28F-7018G, SIN 71 97 Your Furniture Solutions Provider Presented to ABC Company April, 2010

Cort columbus-2010

  • Upload
    rlaning

  • View
    431

  • Download
    5

Embed Size (px)

Citation preview

Page 1: Cort columbus-2010

GS-28F-7018G, SIN 71 97

Your Furniture Solutions Provider

Presented to ABC Company

April, 2010

Page 2: Cort columbus-2010

A Berkshire Hathaway Company

What new initiatives or special projects are you anticipating?

How do you cover the gap between budgeted funds and any unanticipated needs?

Post crisis, how will you acquire furnishings within 72 hours

for temporary operations?

Are there special events or conferences requiring specialty

furnishings for a day, a week, a month?

OPERATIONAL CONSIDERATIONS

Page 3: Cort columbus-2010

A Berkshire Hathaway Company

OPERATIONAL CONSIDERATIONS

CORT provides options that allows you to more effectively manage furniture assets for:

Training Centers Business Continuity

New Program Initiatives Relocation

Special Projects Furniture Shortage

Meetings/Conventions Expansion

Disaster Recovery Temporary Office Space

Page 4: Cort columbus-2010

A Berkshire Hathaway Company

CORT helps companies determine the smartest furniture management solution based on

the type of work environment and the longevity of the furniture need.

The CORT Solution – Helping you succeed by offering a Flexible Environment that allows

for the possibility of fluctuating furniture requirements due to organizational changes and

unanticipated variables.

SMART FURNITURE MANAGEMENT

Page 5: Cort columbus-2010

A Berkshire Hathaway Company

Funding Furniture Requirements

• Outright Purchase– Full funding at time of order

– Permanent furniture as asset on balance sheet

• Rental with Purchase Option– Funding can be provided by quarter, bi-annually, or annually

– Rental considered an operating expense

Page 6: Cort columbus-2010

A Berkshire Hathaway Company

THE VALUE OF RENTAL

Operational Flexibility: The ability to pro-actively manage and accommodate

fluctuating requirements of company operations.

CORT’s flexible rental terms allow companies to adjust furniture assets according to

current actual need, conserving a company’s capital budget.

Efficient Management of Assets: Balancing inventory supply with fluctuating demand.

CORT gives companies flexible rental terms that allow them to use only what they need,

when they need it, which lowers asset costs and saves budget funding.

Allocation of Budget Funds: The allocation of funds to best support operational

initiatives.

Rental is typically funded by an operations budget, thereby freeing up acquisition

funds to support greater company initiatives and return on investment (ROI).

Page 7: Cort columbus-2010

A Berkshire Hathaway Company

THE VALUE OF RENTAL

The Disposal Process: The timely and efficient disposal of underutilized

office furniture.

CORT’s rental services provide companies the ability to reduce the amount of

excess and/or obsolete furniture that is stored and to reduce the costs associated

with eliminating the excess furniture out of the system.

Crisis Management: Continuity of Operations Planning pre-crisis and subsequent reinstatement of operations, post crisis.

CORT’s experience in providing rental services in crisis situations is used by companies to create Continuity of Operations Plans, allowing them to source andsecure timely and effective solutions following any disaster for their employees andoperations.

Maintenance & Repair: Ensuring the continued condition and functionality of the inventory.

CORT is responsible for the ongoing maintenance and repair of the furniture,

which reduces operational costs and increases employee productivity.

Page 8: Cort columbus-2010

A Berkshire Hathaway Company

THE VALUE OF RENTAL

Quality and Consistency of Inventory: Maintaining standards of quality, style and

function to accommodate specific end-user needs.

CORT’s commercial grade furniture lines are ANSI/BIFMA tested and approvedwhich means quality construction and functionality to keep employees productive.CORT maintains furniture inventories of over $300M nationally which allowscompanies to easily secure consistent quantities of furnishings as needed.

Rental Project Management: The coordination of services, supplies, and vendors to fulfill scope of work requirements.

CORT manages the inventory logistics, installation timelines, and maintains communication with all involved parties to ensure seamless coordination for all projectsizes and improved employee productivity.

Page 9: Cort columbus-2010

A Berkshire Hathaway Company

A Berkshire Hathaway Company. Berkshire Hathaway’s subsidiaries cover adiverse spectrum of businesses, including insurance, utilities and energy, finance,manufacturing, retailing and services.

The largest national furniture rental provider with over 38 years experience.

National company-owned operations consist of 61 Districts,120 showrooms, 75 distribution centers, and 400 trucks.

2,300 highly trained expert employees in sales, operations, and administration located all across the country.

CORT has an operational resiliency plan for the purpose of Continuity of Operations so you can be confident in receiving continued services, post any disaster.

CORT CREDENTIALS

Page 10: Cort columbus-2010

A Berkshire Hathaway Company

Geographic coverage allows services to 75 to 80% of the U.S. population. Operations also exist in the UK.

Customized National Account Programs for over 1,200 corporate customers, offering centralized account management and comprehensive terms.

The premier rental services provider on GSA Schedule for over 13 years.

GS-28F-7018G, SIN 71 97 Rental of Office Furniture. Provider of 507 Office Locations for Census 2010.

As one of the nation’s largest purchasers of furniture, CORT stocks over $300m

in furniture inventories.

CORT CREDENTIALS

Page 11: Cort columbus-2010

A Berkshire Hathaway Company

CORT COMPANIES

CORT Office Furniture Rental

CORT Residential Furniture Rental

Apartment Search by CORT

CORT National Accounts Program

CORT Clearance Center

CORT Housewares

CORT Trade Show Furnishings

CORT Events

CORT on GSA Schedule

CORT Global Network

CORT Project Management

Page 12: Cort columbus-2010

A Berkshire Hathaway Company

CORT FURNITURE LINES

CASEGOODS

Desks

Returns

Credenzas

Lateral Files

Bookcases

Storage

SEATING

Multi-Purpose

Task

Mid-Level

Executive

Reception

WORKSTATIONS

Herman Miller

Electrified

Configured per site specifications

FILES/STORAGE

Lateral

Vertical

Cabinets

Shelving

CONFERENCE &MEETING ROOMS

Tables

Seating

Conference Support

Page 13: Cort columbus-2010

A Berkshire Hathaway Company

CORT FURNITURE LINES

TRAINING

Stationary

Mobile

Modular

SPECIAL PURPOSE

Folding Tables

Stack Chairs

Mobile Screens

LIGHTING

Desk

Table

Task

Floor

AESTHETIC

Plants

Area Rugs

Art

COMPUTER SUPPORT

CRTs

Ergonomic Task Seating

Keyboards

Page 14: Cort columbus-2010

A Berkshire Hathaway Company

People – Our Experienced Staff

• Consultation• Purchasing• Pre-Planning• Logistics• Project Management• Distribution • Communications• Administrative and A/R• Timely and responsive communications• Consolidated invoices and account maintenance• On site survey – post delivery and installation• CORT is responsible for maintaining inventory during the rental agreement

• Full in-house repair department

Page 15: Cort columbus-2010

A Berkshire Hathaway Company

Project Management and Logistics

• CORT meets with you to finalize quantities and product and detail each strategic step through to delivery

• Our Asset Management Team centrally places all furniture orders, then tracks and manages the timely receipt of all shipments

• Delivery made by CORT distribution employees, in CORT trucks, with CORT on site management

• Our Distribution Centers employ the Best Demonstrated Practices in the industry….from receiving, handling, and storage to staging, loading, delivery and installation

• CORT will conduct a pre-delivery site survey to determine all building requirements and to review actual space as compared to floor plan

• The customer can pre-plan and choreograph data, cabling and phone• Installations are turnkey

• Service• CORT works with your designated main contact to execute your order, usually

within 48 business hours

Page 16: Cort columbus-2010

A Berkshire Hathaway Company

Proposal for Cambridge Innovation Center – Rental with Purchase Option

• The majority of the furniture proposed will be the following:– Hon

• Huddle Tables• Conference Tables• Kitchen/Dining Area Tables• Sofas, Loveseats

– Chromcraft• Trak Chairs – all purpose seating (Executive, Guest, Conference).

Replacement for Aeron.• Vista Chairs – Dining

– Safco• Metal shelving

Page 17: Cort columbus-2010

A Berkshire Hathaway Company

Evaluating Rent to Buy vs Purchase

• Rent to Buy– Investment return rate (benefit)

• Interest earned on cash savings using investment rate of return– Income tax deduction (benefit)

• 35% of total rental and other non refundable expenses– Total Rent To Buy Cash Outlay Minus Tax Advantages

• Purchase– Depreciation expense (cost)– Local property tax rate (cost)– Income tax deduction (benefit)

• 35% of depreciation and property tax– Total Purchase Cash Outlay Minus Tax Advantages

Page 18: Cort columbus-2010

A Berkshire Hathaway Company

Value, Flexibility and Option to Buy

Option One

CORT will offer a 36 month lease with a $1.00 buy out

Option Two

CORT will rent the furniture for an initial period of 2 years (24 months). At the end of this period:

– CORT will allow all or part of the furniture to be returned– To purchase the furniture after the initial period – CORT will drop the rental payment by

50% and require 12 months of payment or the Cambridge Innovation Center could pay another 6 months at the original rental rate or make a 6 month lump sum payment. Purchase of the furniture is then complete.

• The Cambridge Innovation Center can schedule the 3rd and 4th floors to be done together or stagger the delivery of the 2 floors

• Delivery and installation charges will be approximately $28,500 based upon a walk through of the space and delivery requirements (any pick up charges will be billed at the end of the term)

• CORT will service/maintain the furniture during the contact term

Page 19: Cort columbus-2010

A Berkshire Hathaway Company

Possible Next Steps

• CORT can deliver samples of key product (s) that are specified

• CORT would walk the job site to determine the specific product list by office/space and finalize monthly pricing

Page 20: Cort columbus-2010

A Berkshire Hathaway Company

CORT – Columbus, Ohio

Bob Laning – Account Executive 614-985-7368 [email protected]

Richard Wilson – Territory Sales Manager 513-720-9760 [email protected]

John Roby – District General Manager 614-596-6008 [email protected]

Laura Smith – Regional Sales Manager 317-291-1754 [email protected]

Paula Green – RVP of Sales 301-324-8601 [email protected]

Page 21: Cort columbus-2010

A Berkshire Hathaway Company

Final Comments

CORT is ready to provide the you with a flexible environment and quality, affordable products. Your success is our success. Thank you for the opportunity to provide our services.

Questions?