BO1 Michael Levin Athens - Allovue...AMAZON CONFIDENTIAL K-12 districts’ opportunity is empowering teachers to serve students more effectively §The average teacher: oSpends 3.6

Influencing Solutions: Leveraging Amazon Business to Solve Peer Problems

Michael Levin, Head of Product, K-12

October 8, 2019

AMAZON CONFIDENTIAL

K-12 Procurement is not just about purchasing the supplies you need, but enabling the learning mission by empowering teachers to serve students more effectively

AMAZON CONFIDENTIAL

AMAZON CONFIDENTIALAMAZON CONFIDENTIAL

K-12 districts’ opportunity is empowering teachers to serve students more effectively

§ The average teacher:o Spends 3.6 hours a week searching for and requesting needed items1

o Waits 14.3 days for purchase order to be issued2

o Waits another 5-10 days to receive the products3

§ The district:o Spends average of $93 from Requisition to check per PO4

o Cost for warehousing is on average 12.4% of goods purchased5

1 MDR, 2017, Teachers as Consumers: Background, Interests, Buying Patterns, and Media Uses2 CGCS, 2018, Performance Measurement & Benchmarking Report, PALT for Informal Solicitations3 Amazon internal analysis, 2017, Standard shipping times4 CGCS, 2018, Performance Measurement & Benchmarking Report, From Requisition to PO5 CGCS, 2018, Performance Measurement & Benchmarking Report, Warehouse Operating Expense Ratio (upper quartile: 23.1%, lower quartile: 4.9%, median: 12.4%)

AMAZON CONFIDENTIAL

Energize teaching and learning while driving savings back into classroom programs

Amazon Business helps improve the efficiency of getting materials into the classroom

Teacher requests items from school office

Staff looks up items in several supplier catalogs and online

Picks a supplier based on best price

Can we get them next week? Rush charges – too expensive

Current Process:

~25 days$93 in

processing cost1

May call or fax suppliers to get quotes

Supplier needs PO to proceed with order – don’t accept

credit cards – 1 week delay

Package arrive in 3 weeks – learning opportunity delayed – teacher needs to modify lesson plan

~3 dayssignificantly reduced administrative cost

Package arrives in 2 days2

Teacher logs on to Amazon Business, searches for best product and price

Teacher builds cart, sees multiple offers

from different sellers

Order gets routed to finance office for approval, order easily

reviewed to support your compliance

Order approved

Amazon Business:

1 CGCS, 2018, Performance Measurement & Benchmarking Report, From Requisition to PO 2 Select two-day shipping on eligible purchases, shipping charges may vary


Hundreds of millions of items from hundreds of thousands of business sellers across common

categories used by K-12 schools.

AMAZON CONFIDENTIAL

Amazon Business helps every teacher and your district

For all teachers, admins, and staff in your district

For the school district, procurement offices, and principals

Empowerment Cost reduction Compliance

• Discover, filter, and review products in one destination

• Choose from a wide selection of products and prices

• Get items when you need them with convenient shipping options

• Remove the need to search multiple catalogs

• Save time on purchase requests

• Pay with simplified, integrated payment methods

• Have ease of mind with visual signposts of what is allowed vs. not

• Enroll in the Amazon Tax Exemption Program, if your organization is eligible for tax-exempt purchasing

• Empower teachers with decentralized purchase

• Match workflow approvals to your school’s process

• Use Amazon Business Analytics to view data about your orders, create and filter reports based on your organization’s needs

• Save time on reviewing and processing requests

• Reduce total cost of teacher spend due to better pricing1

• Reduce total cost of tail-spend shipping with Business Prime

• Set preferred/restricted items

• Set thresholds per purchase and/or supplier

• Get OMNIA Partners terms

• Automatically leverage 3-bids feature during checkout

The Amazon experience you can expect, with features to save cost and help track compliance 1 Based on internal analysis, Amazon Business can help organizations find value when purchasing the same or similar products compared to their current source. 83% of our customers are projected to save 5% or more, while 55% of customers will achieve over 15% savings on their Office and IT purchases.

AMAZON CONFIDENTIAL

Centralized account with controls that match your district structure and processes

Account

Groups

Sub-groups

Users

Users

School district

Central office departments High schools

Curriculum School A

Bookkeeper/Secretary

Bookkeeper/Secretary

Staff Staff

Scenario 1

Teacher addsto shopping cart

Secretary reviews order and pays

Item(s) shipped to the school

Scenario 3

Staff addsto shopping cart

Purchasing reviews, and pays with PO#

Item(s) shipped to central office or to individual schools

Scenario 2

Teacher addsto shopping cart

Principal reviews and approves

Secretary reviews order and pays

Item(s) shipped to the school

AMAZON CONFIDENTIAL

Punchout integration with eProcurement system

Amazon Business Supports

90+Purchasing Channels

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Sample of controls that can be centrally managed

• Schools/departments (groups)

• Add/remove people (requisition, administrator, or catalog viewer)

• Payment methods

• Shipping addresses (central warehouse or individual locations)

• Tax exemption

• Order information (PO #, category code, cost center)

• eProcurement integration

• Account-wide analytics and order history/invoices

• Restricted categories

• Preferred suppliers/items

• Approval workflow

• OMNIA (formerly U.S. Communities)

• Shipping benefits on eligible orders

Centrally managed features:


Purchase through a cooperative contract (OMNIA) and view related offers to get multiple options for products

Cooperative contract (OMNIA)Purchase options through a competitively-solicited cooperative contract, OMNIA (formerly known as U.S. Communities)

3 QuotesHelp organizations capture and document best value when purchasing


Enhancing benefits with Business Prime to support the K-12 mission...

Fast FREE deliveryUnlimited free Two-Day Shipping

with eligible orders on Business

Prime, free Same-Day Delivery and

One-Day Shipping on eligible

orders

Payment benefitsQualifying customers get extended

Pay by Invoice terms of up to

45 or 60 days,1 to give more time

for busy Accounting and

Department Admin teams.

Procurement benefitsGain insights into your entire

business spend, save time,

and gain more control over

employee spending by steering

them to right products.

1 Depending on plan.

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Rich reporting and analytics capabilitiesAmazon Business offers timely reporting

Assist with understanding your long tail of suppliers

Orders, returns, refunds, and reconciliation reporting including line item level 3

data

Define date range selection to identify

spending trends

Sort by groups, users, category, or local and diversity credentials

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Unlock Category Cost Saving and Improve Efficiency

CategoryCost Saving

The average K-12 district saves 38% on Office and

school Supplies with Amazon Business planned spend

Manage Compliance

Purchase through a competitively negotiated public sector contract –

OMNIA Partners cooperative contract (formerly U.S.

Communities)

Procurement Digitization

Digitized purchasing, approval, and

reconciliation processes free up teacher and

district staff’s time to focus on education

Easy toImplement

Takes less than 6 weeks to fully implement, and requires no additional

support from district staff

AMAZON CONFIDENTIAL

“Amazon Business has helped us save critical funds for students by giving us the ability to compare costs via item-by-item comparison. We can show Amazon what we bought in office supplies over the past year and they can show us an exact or a comparable item. We’ve found many items where we can save money. That money immediately goes back into educating our students.”

Brian StephensSuperintendent, Tracy Unified School District

Results Drive Innovation & Change:

AMAZON CONFIDENTIAL

Budget Planning

Financial Budgets & Plans• Forecasting and

modeling• Budgeting• Budget management• Cash flow

management• Budget reporting• Delegation

Requisition + PO

ePurchasing & Catalog Management• Free Text Orders for

products or services• Shop in system (i.e.,

integrated)• Cart approval

workflow• Requisition converted

to PO• Financial system

integration• PO Transmission to

Suppliers (XLE, EDI, email)

• Punchout• Guided buying• Standardized services

catalog

Invoicing + Accounts Payable

eInvoicing & Accounts Payable Automation • Supplier send invoice

to customer (XML, EDI, or CSV)

• Print and manipulate invoice

• Rule-based matching against PO

• Invoice approval and coding

• Exception handling (tax, shipping, quantity/cost mismatch)

• Financial system integration

Spend Analysis +Finance Reporting

Spend Analysis• Categorize• Reporting• Collect and aggregate

from other transaction systems

• Normalize and cleanse

Sourcing Management

Supplier Management• Supplier

registration/profile• Supplier self service• Supplier performance

management• Risk management

eSourcing• Project management• RFx Workflow• Auctions• RFx Collaboration

Contract Lifecycle Management• Contract authoring/

doc management• Post-signature

contract management• Central contract

repository

Extended P2P Capabilities

• Contingent workforce tracking and services procurement

• Early pay discounts (dynamic discounts)

• Inventory management

• Employee expense management

Thank You


Appendix

AMAZON CONFIDENTIAL

How best-practice education organizations use Business Prime

Your existing contract suppliers

• 1 primary or preferred supplier per category

• Expectation of high volume, long-term commitment and many items per order

• Fast, “free” shipping on top items…but typically slower shipping speeds or paid shipping for miscellaneous items

Your existing long-tail vendors

• You add hundreds, even thousands of new miscellaneous vendors annually

• 80% conduct 1 transaction ever and 63% spend <$1,000 per year1

• Non-contract suppliers typically charge for expedited and even standard shipping

Can you save and simplify with Business Prime for Public Sector?

1 NAEP Benchmarking Report.

AMAZON CONFIDENTIAL

Business Prime plans

Business delivery

Business Prime benefitsPrice: amount paid per business account per year

Essentials$179

Small $499

Medium $1,299

Single membership for the entire business account

Free Two-Day ShippingFree Same-Day DeliveryFree One-Day Shipping

Prime ExclusivesPrime Day deals

Up to 3 users

Enterprise $10,999

Public Sector $3,499

Pricing benefits

Extended Terms for Pay by Invoice

Payment benefits

Spend Visibility powered by Amazon QuickSight

Guided Buying

Procurement benefits

Up to 10 users Up to 100 users Over 100 users Over 100 users

Flat 45 days Flat 45 days Flat 60 days Flat 60 days

Free Consolidated ShippingDiscounted Expedited DeliveryFree Delivery on special items

1 author / 1 reader 1 author / 3 reader 2 author / 5 reader 2 author / 5 reader

New Public Sector Plan includes all of the features of the Enterprise Plan for Over 100 users

AMAZON CONFIDENTIAL

Enhanced spend visibility

Customizable procurement dashboards help you to quickly visualize and summarize spending.

Track spending in response to compliance policies you have set up.

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Monitor top purchased items to drive insight for budgeting, additional policies, or contract spending.

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Drill down on spend by group, or top spenders to drive additional visibility and monitor compliance.


Next Step – Free Launch Support

1 Week

Step 2Configuration & Implementation

• Free account setup• Outline new processes• Change management

support

• Spend history analysis• Value mapping• Quantify cost-saving

Step 1Spend Analysis

Step 3Communication & Training

• Launch communication

• User training support• Free user webinars

Step 4Monthly Business Review

• Measure success• Continuous launch

support

3 Weeks 1 Week First 90 Days

Documents

BO1 Michael Levin Athens - Allovue...AMAZON CONFIDENTIAL K-12 districts’ opportunity is empowering teachers to serve students more effectively §The average teacher: oSpends 3.6