Intergovernmental gOpportunities Forum II

In What Ways Is Sourcing OfficeFacilitating Collaboration Across Northeast OhioFacilitating Collaboration Across Northeast Ohio

March 24, 2010

Di i P i tDiscussion Points Overview of Sourcing Office

The Sourcing Office story Purpose & functions Organizational structure

Procurement Methodology Overview Day-to-day activities Day-to-day activities

Savings & Collaboration Opportunities Current programs Soon-to-be-launched programs In what ways can your organization leverage Sourcing Office

Current participants, successes, & contact information

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Th S i Offi StThe Sourcing Office Story THE SITUATION: extensive government fragmentation and THE SITUATION: extensive government fragmentation and

duplication of activities with over 90,000 governments in the U.S.

THE SOLUTION: deploy private sector operating methodologies in the public sector

THE STARTING POINT: procurement & shared services

OUR EVOLUTION: 13 cities to a national platform in four years

3 THE OPPORTUNITY: public, private, and not-for-profit entities

O P & F tiOur Purpose & Functions DEVELOP group purchasing programs that serve the public private DEVELOP group purchasing programs that serve the public, private,

and not-for-profit sectors

SAVE participants time & moneyp p y

TARGET suppliers and channel partners committed to operational

excellence and total cost of ownership solutions

WORK in a spirit of partnership (creating wins for all parties)

SOURCE, MATCH & MANAGE supplier contracts with participants

ORGANIZED as a regional Co ncil of Go ernments nder Section 167 ORGANIZED as a regional Council of Governments under Section 167

of the Ohio Revised Code and 501(c)(3) not-for-profit entity

GENERATE REVENUE as a percentage of dollars spent with our GENERATE REVENUE as a percentage of dollars spent with our

supplier partners4

O O ti St tOur Operating Structure

SBAM OFIC COSE ERC Northeast Ohio

Municipalities Non-profitsMember Member

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Companies Counties

Schools

Member Member

Member

Wh t W DWhat We DoCurrent procurement process:Current procurement process:

- Repeated 100+ times per year, per entity -

Develop bid ifi ti

Create bid k

Advertise bid t it

“Anything that we can do to bypass our own bid process is a good thing.

I repeat anything ”specifications package opportunity

Hold pre-bid meeting

Receive bid proposals

Tabulate bid responses

I repeat, anything. Current customer, an elected official

Select bid winner

Negotiate Contract

Approve Contract

Execute Contract

Start buying

Buying through Sourcing Office: SAVE MONEY•8 to 20% savings•Avoid bidding costs

6Sign up for program

Start buyingSAVE TIME•Avoid bid spec development•Delegate bid process

Wh t W DWhat We DoPROGRAM DEVELOPMENT MARKETING & MATCHINGPROGRAM DEVELOPMENT

Survey members

Analyze budgets

MARKETING & MATCHING Identify early adopters

Build “raving fans”

Conduct market research

Select spending categories

C f

Create mail and email

campaigns

C Create bid specifications

Manage bid/RFP process

Negotiate and contract with

Communicate through

association channels

Manage quality control Negotiate and contract with

suppliers

Manage implementations

Manage quality control

Coordinate customer service

Generate positive publicity for

7associations and their members

Offi S liOffice Supplies Approximately 20 organizations supplied their Approximately 20 organizations supplied their

purchasing history, shared their core list, and/or

committed their annual office supplies spend to

this programthis program

Includes office supplies, paper, off-site printing,

toner, and related supplies

S i f 25% f ti i t Saving an average of 25% for participants

In what ways did OfficeMax stand out through the FAQ

procurement process?

How much volume is currently being procured through

this contract?

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C h i P i t MGMTComprehensive Print MGMT. Complete audit is conducted to identify the Complete audit is conducted to identify the

greatest savings

Contract capabilities include hardware purchase,

copier service printer service software needscopier service, printer service, software needs,

and related imaging services

Saving an average of 23% for participants

Why did you choose ComDoc?FAQ

Is this program different than “state term?”

Do I have to implement an entire print management

approach today?

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El t i itElectricity Two unique programs to meet the needs of Two unique programs to meet the needs of

every Sourcing Office participant

Approximately 250 million kilowatt hours

currently under contractcurrently under contract

Reliable supplier with strong local presence

Saving an average of 18% for larger participants

What portion of my electric bill is Sourcing Office able to FAQ

offer a discount on?

How is Sourcing Office planning on addressing the rate

auctions in 2011?

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RFP Alt ti ERFP - Alternative Energy Wind, solar, geothermal, and biomass sources Wind, solar, geothermal, and biomass sources

are included in the RFP

Goal of simplifying complex scenarios through a

pre procured approach which meets all needspre-procured approach which meets all needs

Significant state and federal grants are currently

available

E t d l h i M 2010 Expected launch in May 2010

Will financing be available?FAQ

Will all aspects of the program be addressed (zoning,

consulting, etc.)?

What is the average length to install a wind turbine?

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RFP HR I A BRFP - HR-In-A-Box RFP addresses; benefits administration, benefits RFP addresses; benefits administration, benefits

consulting, HR consulting, property & casualty

insurance, payroll, and wellness programs

Anticipated multiple awards Anticipated multiple awards

A top requested program since inception of

Sourcing Office

E t d l h i M 2010 Expected launch in May 2010

Who are you talking to about this program?FAQ

These are solutions which need to be customized to the

customer; how will you address this fact?

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I D l t J /S & S f t S liIn Development - Jan/San & Safety Supplies

RFP addresses; janitorial supplies, sanitation RFP addresses; janitorial supplies, sanitation

needs, safety supplies, and related categories

Green and sustainable solutions are being

stressedstressed

Value added services, such as inventory control,

will weigh heavily in the scoring

E t d l h i M /J 2010 Expected launch in May/June 2010

Is there a “one throat to choke” solution in this industry?FAQ

Is this a big spend category?

Which companies are you talking to in this industry?

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In Development Temporary StaffingIn Development - Temporary Staffing

Significant spend category for higher education Significant spend category for higher education

and special districts

Growing need due to staff realignments

Currently finalizing the search for a subject Currently finalizing the search for a subject

matter expert to assist in program creation

Seeking interested organizations to participate in

isourcing process

Expected launch in July 2010

FAQ Will you be able to address the diverse temporary

staffing needs by your participants?

Will my organization be required to commit to a certain

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amount in spending to participate in the sourcing

process?

C t P ti i tCurrent Participants

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R t SRecent Successes Ohio’s Largest Community College now saving 30% on office Ohio s Largest Community College – now saving 30% on office

supplies

Community Recreation Center – achieved 18% savings on electricity

(a $125,000+ annual savings) without event switching suppliers

Local School District – saving more than 22% on copiers and printers

Ohio’s Largest County – now saving 42% on office supplies (a

$300,000+ annual savings)

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$300,000 annual savings)

Wh t O P ti i t SWhat Our Participants Say

We rolled out the [Office Products] implementation on April 1st [2009] and from what I can see and p [ ]

hear, it went flawlessly. The team at OfficeMax & Sourcing Office are real pro’s and delivered at

l l ”every level.”

Jerry Hourigan Director of Procurement Jerry Hourigan, Director of Procurement

Cuyahoga Community College – annual budget of $300 million

Sent unsolicited April 10, 2009 to prospective participantsp , p p p p

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A ti ItAction ItemsJOINJOINA Sourcing Office Affiliate Agreement is included in the hand out materials.

REVIEWDiscuss available programs with Sourcing Office team members Additionally askOffice team members. Additionally, ask how you can be first in line as future programs are developed.

ParticipateCommit your organization to sitting on a

i i d l fsourcing committee to develop future programs.

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C t t I f tiContact InformationSourcing OfficeBruce L. Tague5422 East 96th Street, Suite 120Cleveland, Ohio 44122

Executive DirectorP: 216.581.6200 x103Bruce.Tague@SourcingOffice.org

P: 216.581.6200F: 216.581.6213

Bob AberDirector of Sales & Marketing

E: info@sourcingoffice.orgU: www.SourcingOffice.org

P: 216.581.6200 x105Bob.Aber@SourcingOffice.org

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