W E B I N A R : DIGITAL PURCHASING SOLUTIONS IN EDUCATION

Transcription

1 W E B I N A R : DIGITAL PURCHASING SOLUTIONS IN EDUCATION

2 Dan Kloes ecommerce Solutions Manager, Grainger Dan Kloes is an ecommerce Solutions Manager for Grainger assisting public sector agencies and institutions for the last 6 years by implementing ecommerce solutions and streamlining their purchasing processes. Prior to the ecommerce role, Dan assisted Grainger customers with KeepStock managed inventory solutions, and helped with the redesign of Grainger s distribution network. He holds a Bachelor s degree in Business Management from Illinois State University and a Master s in Business Administration from Lake Forest Graduate School of Management.

3 AGENDA 1. Introduction 2. Pain Points 3. ecommerce Solutions Overview 4. Why ecommerce? 5. Examples 6. Case Study 7. Questions

4 TYPICAL PURCHASING PROCESS The typical purchasing process involves distinct steps for shopping, ordering, and managing products. Your process may look different. S H O P Finding / Vetting Products Identifying Vendors / Evaluating Price / Availability O R D E R Generating a Requisition Approval Routing M A N A G E Receiving Products Reconciling Invoices Payment

5 COST PAIN POINTS The cost of procurement goes beyond product cost. Delays in approval, multiple handoffs, and variations in the process result in inefficiencies. $124 to process a PO 90 minutes to replenish an item 30 steps to purchase an item 5 people involved in the process 40% of time spent shopping Leads to complexity, low productivity and low compliance POLL 1 Do you know what your cost per PO is today? Source:

6 REALITIES FOR HIGHER EDUCATION With a variety of departments ordering, hundreds of different suppliers, and a mix of responsibilities, higher education procurement Directors face a tough task. Without a consistent, smooth process for shopping, ordering, and managing, procurement can easily become hard to track and wasteful.

7 COMPLEXITY PAIN POINTS Procurement processes can be slow and complex, with unclear ownership, too many approvals needed to order, and multiple systems. Existing procurement solutions are made up of multiple tools and standards that are difficult to understand, much less audit and manage Systems are rarely integrated and require handoffs and duplication each step of the way Custom tools must work with off-the-shelf solutions

8 PRODUCTIVITY PAIN POINTS With multiple handoffs and more than 5 people on average involved in the process, procurement can be inefficient and unproductive. Complex steps to shop, order, and pay require 30 steps, 6 handoffs, and 3 approvals on average The average time to work through the cycle for a single PO is about 90 minutes On average, there are traditionally 5 people involved in the purchasing process Source -

9 COMPLIANCE PAIN POINTS Confusing or unclear processes, alongside complex procurement, can lead to low compliance and mistakes. Hard to manage multiple departments and ensure an aligned strategy Easy for discrepancies and mismanagement to creep into the process Products may not meet organizational standards or the actual need POLL 2 How many people are involved in your order approval process? Source -

10 INTRO TO ECOMMERCE SOLUTIONS G R A I N G E R. C O M Shop, Order, Manage e P R O C U R E M E N T Automating procurement through integrated solutions, punch-out catalog, and predefined marketplace M O B I L E A P P (for on the go purchasing) Barcode scanner, location-based lists, epro Mobile

11 ECOMMERCE SOLUTION BENEFITS G R A I N G E R. C O M Fast, easy, and provides visibility 1.5 million products with real-time pricing and availability Bulk order pad and express checkout equotes and KeepStock integration e P R O C U R E M E N T Same fast & easy shopping tools as Grainger.com Integrates with existing ERP/marketplace ordering process Customizable user experience equotes and KeepStock integration M O B I L E A P P Existing Grainger.com benefits Barcode scanning tools Keepstock app and epro integrations On-the-go convenience

12 WORK ORDER INTEGRATION Work order information is included with all purchases Product costs are allocated to work orders efficiently Click2Buy Direct combines inventory, purchasing, and work order tools into one system Integrations with SchoolDude management to streamline sign in, work order management, and ordering through Grainger.com POLL 3 Are you utilizing some sort of work order system for repairs/maintenance?

13 MOBILE LOCATION-BASED LISTS Buildings across campus have different product needs (lighting, filters, etc) Mobile apps track location on campus to present appropriate products to technicians based on their location/building Easy click-to-buy process linked to existing ordering account

14 EPRO MOBILE Facilities can run all purchases through a single procurement system Mobile technicians use apps to generate a requisition and send that to the punchout Order can then follow any existing approval routing and get processed thru purchasing system

15 WHY ECOMMERCE? Research shows that on average, MRO accounts for 15% of a company s annual expenditures but 60% of its annual transactions On average 90% of the unique MRO items a customer buys annually, they buy 5 times or less. MRO now viewed as an integral part of an institutions overall effectiveness Technology helps institutions make strategic decisions that reduce ops expenses and give line of sight to small dollar transactions

16 WHY ECOMMERCE? (CONT) Increases efficiency with convenient shopping tools using Grainger.com, the Mobile App, and/or eprocurement Technology Reduces purchase order processing costs by 25-45% Improves compliance and eliminates unauthorized spending Streamlines ordering and approval processes Manages spending with order limits Convenient auto-reorder management to replenish inventory

17 WHY EPROCUREMENT? Source: The eprocurement Benchmark Report: eprocurement 2.0, Aberdeen Group, August 2006 Source: Invoicing and Workflow, Integrating Process Automation to Enhance Operational Performance, Aberdeen Group, May 2011 POLL 4 Are you using an eprocurement system today?

18 WHEN EPROCUREMENT CAN HELP My purchasing process is manual and costly I have multiple vendors and many purchasing processes Finding products is frustrating because we have many vendors. I have to go to many sites to find what I need I don t have an effective way to increase contract utilization throughout my organization I purchase mostly online and need a site that is easy and simple I need a spend analysis tool and reporting

19 BENEFITS FOR EDUCATION For educational facilities with diverse products and maintenance needs, eprocurement can provide significant benefits. Easily set and maintain global procurement policies, with single shopping outlets, clear purchasing and predetermined limits. Leverages the same desktop and mobile processes to simplify ordering to one system. Facilities teams can save time and money getting products they need and keep to the budget automatically. The Grainger procurement team can audit your facility and provide guidance on zones and organization strategies.

20 MEASURING SUCCESS Our next webinar in the series, Supply Chain Management - The Next Frontier in Savings, will review how Barry Swanson, Chief Procurement Officer at the University of Kentucky, approached his own procurement and ordering challenges. Through a combination of new technologies and effective sourcing initiatives, the facilities team could adapt to more responsibilities and less funding without lowering quality.

21 Q&A Want to stay ahead of the curve on more topics like this? Visit grainger.com/content/knowledge-center.

22 Upcoming NAEP Webinars Check them out at Trends in Procurement Webinar Series Sponsored by Grainger 01/23 Supply Chain Management The Next Frontier in Savings 2pm ET Presented by: Barry Swanson, Chief Procurement Officer, University of Kentucky 01/30 The Evolution of Diversity in Procurement 2pm ET Presented by: Julie Holmes, Sr. Channel Business Manager, Grainger Responsible and Sustainable Sourcing Webinar Series Sponsored by ConnXus 01/18 Best Practices regarding Responsible and Sustainable Sourcing 2pm ET Presented by: Daryl B. Hammett & Carrie Hawkins CO-Owner & COO and Sales Executive 01/25 Disrupting the Sourcing Process, from the Small Business s Perspective 2pm ET Presented by: Daryl B. Hammett & Carrie Hawkins CO-Owner & COO and Sales Executive To view and register for NAEP Webinars log into our website at and check out our events calendar. Access it directly here: