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SHAMROCK SUPPLY COMPANY, INC. City of Santa Ana RFP No.:20-019 VMI Progrann/yalue-Added Service Proposal March 10, 2020 Total Cost of Ownership (TCO) Reduction/Reporting Shamrock will make available to the City of Santa Ana standard reports containing purchasing and inventory information associated with this program. Furthermore, customized material usage reporting by department will be provided, and Shamrock IT personnel will develop report specifications in conjunction with the City of Santa Ana department managers. Additionally, in our effort to strive for continuous improvement, Shamrock will provide documented TCO reduction reporting. Presentation of TCO documentation will be presented periodically, during performance review meetings, between Shamrock and the City of Santa Ana. Continuous Improvement Opportunities • Tri-Lateral Agreements with Manufacturers • Product Standardization • New Product Education and Training • Safety Programs/Training • On -going Process Review/Enhancement Support As your business partner, Shamrock is committed to delivering innovative, value-added supply chain solutions designed to improve your processes and to assist you with cost management. To that end, Shamrock will provide experienced technical support and product training to help eliminate production down time and continuously work to refine the program's effectiveness. Plus, with an experienced sourcing department, we are in a position to respond to any unique requirements or unforeseen production needs. Pricing In light of our commitments to TCO reduction and cost containment, Shamrock makes every effort to ensure that material pricing (i.e., 'first cost') is market -competitive and that special pricing arrangements and contract terms are optimized. Through management of inventory levels on repetitive products/bulk purchasing, product standardization, tri-lateral agreements with manufacturers, etc., Shamrock strives to maintain static material costs, where possible. For this program, a fixed SKU price will apply to all contract material. Material pricing will be reviewed semi-annually (January/July) to reflect manufacturer price increase/decrease and/or market volatility, and documentation of supplier pricing increases, where applicable, will be provided to substantiate requested price increases. Material pricing increases resulting from force majeure (e.g., acts of God, natural disaster, war, political unrest, etc.) in excess of 5.00%