Combat Budget Cuts With Affordable eProcurementand Buying Cooperative eProcurement ! More than 700 customers ! 4,000+ active buying and bidding entities using our solutions ! Focused

© 2012 ESM Solutions Corporation

Combat Budget Cuts With Affordable eProcurement

June 5, 2012


Presenters

Dan Corazzi, CEO ESM Solutions Rick Gay, CPPO, Purchasing Manager The Baltimore County Public Schools Ron Carson, Moderator

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Q&A

We are recording

Listen only mode

Polls

Before We Get Started…


Polling Question 1: Select which best describes your organization.

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A.  School District

B.  Educational Service Agency

C.  Higher Education

D.  State Government

E.  City Government

F.  County Government

G.  Other


About ESM Solutions

ESM Solutions – a market leader in Education, Public Sector and Buying Cooperative eProcurement §  More than 700 customers §  4,000+ active buying and bidding entities using our solutions §  Focused on saving money for our customers since 2000

Mercury Commerce branded solutions for Higher Education and State & Local Governments

eSchoolMall branded solutions for K-12 School Districts and Educational Service Agencies

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What ESM Solutions Provides

q  Streamline and simplify the procurement process

q  Automation of business/procurement rules and requirements

q  Control/reduce maverick spend

q  Paperless execution of the bidding, quoting and RFP processes

q  SaaS Solution delivered via the Internet

Applications designed for – Tablet-friendly Navigation™ Smartphone designs with – Finger-friendly Navigation™


The Baltimore County Public Schools (BCPS)

q  26th largest school system in the U.S.

q  105,000 students

q  173 schools, programs, and centers

q  17,000 employees, including 8,850 classroom teachers

q  National Purchasing Institute Achievement Of Excellence in Procurement Award

q  ISO 9001:2008 Certified

q  Outstanding Agency Accreditation Achievement Award

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Evolution of eProcurement at BCPS

2001 BCPS First

eProcurement implementation

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2006 LEA bid

threshold raised from $15K to

$25K

Early 2008 Began evaluating

new eProcurement systems

January 2009 Received BOE

approval for new system

FY2011 Processed 8,936 ePOs (32% more

than 2006)

“Over a decade, BCPS moved from a non-strategic paper in and paper out procurement system to an electronic procurement and sourcing

system that is driven by strategic planning.” Rick Gay, CPPO

eProcurement Users q  1,202 Teachers q  577 Principals q  5 Purchasing Agents q  225 Vendors

July 2009 Live with

eSchoolMall from ESM Solutions


All Organizations Can Benefit from eProcurement

q  Maryland/ District of Columbia ASBO §  A small school district in Maryland saved 10% of its 1.8 Million supply budget or $180,000 saved

q  Cooperatives help small public entities leverage buying power: §  MD/DC ASBO (school districts) §  E&I Cooperative Purchasing (higher education)

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Polling Question 2: Are you using eProcurement today?

A.  We are just starting to gather information B.  We have spoken with an eProcurement service provider C.  We would like to implement but funding is an obstacle D.  We have an eProcurement program, and are happy with it E.  We have an eProcurement provider, but we are looking for an

alternative F.  None of the above

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BCPS: Advantages of eProcurement

q  Increased contract compliance

q  Increased control of suppliers used for purchases

q  Reduced rogue spending

q  Reduced transaction and administrative costs

q  Reduced purchase/acquisition cycle times

q  Reduced item costs and inventory costs

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“For every $1 saved on the business side through effective and efficient business procedures, $1 is returned back to The Baltimore County Public

Schools classrooms to educate the kids.” Rick Gay, CPPO


BCPS: Comparison of PO’s vs. ePO’s Processed Each Fiscal Year 2000 –2010

0

5000

10000

15000

20000

25000

30000

35000

FY 2000

FY 2001

FY 2002

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

31189

28228

20018

16356

11502 11046 10815 10754 10280 9089 9373 9453

32 863 1951 2550 4713

7154 6774 6232 6235 6766

8341 8936

PO ePO

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BCPS: eProcurement Success By the Numbers

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Procurement Ac4on / Item Real Result

Order Submission Real-‐8me no8fica8on to vendors

Delivery of Goods 24-‐48 hours from 8me of order un8l delivery from 5 day delivery 8mes

Shipping Costs 10-‐15% Reduc8on in shipping costs

Vendor Payment 24-‐48 hours from shipping un8l vendor payment

Sourcing Consolida8on 33% reduc8on of catalog surplus


Purchasing Role Redefined

q  From tactical to strategic

q  Supply chain management for better pricing

q  Less bureaucratic

q  Bigger profile within school district and within state

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BCPS: Best Practices

q  A champion at the highest level does foster user adoption

q  Deploy across your entire organization to reduce administrative time spent on procurement

q  Don’t just accept the vendor given prices, leverage your contracts

q  Create competition by offering multiple catalogs for a category

q  User Training, ‘Always Look for the Lowest Price’

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Polling Question 3: What is preventing you from saving more with eProcurement? A.  Cost of purchasing software B.  Don’t have IT resources to implement C.  Don’t have senior level buy-in or support D.  Supplier enablement is challenging E.  We have eProcurement but its not widely used F.  We are veteran experts and apply best practices much like BCPS

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Questions / Learn More

Anthony Rotoli ESM Solutions Vice President of Sales [email protected] 919-789-1225

Rick Gay, CPPO Purchasing Manager The Baltimore County Public Schools [email protected] 410.887.7820

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Documents

Combat Budget Cuts With Affordable eProcurementand Buying Cooperative eProcurement ! More than 700 customers ! 4,000+ active buying and bidding entities using our solutions ! Focused