Download - Cort columbus-2010
GS-28F-7018G, SIN 71 97
Your Furniture Solutions Provider
Presented to ABC Company
April, 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
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
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
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
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).
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.
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.
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
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
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
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
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
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
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
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
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
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
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
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]
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?