W E B I N A R :

DIGITAL

PURCHASING

SOLUTIONS IN

EDUCATION

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.

AGENDA

1. Introduction

2. Pain Points

3. eCommerce Solutions Overview

4. Why eCommerce?

5. Examples

6. Case Study

7. Questions

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 AN A G E

• Receiving Products

• Reconciling Invoices

• Payment

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: https://www.grainger.com/content/kc-epro-article-why-shifting-to-eprocurement-makes-sense

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.

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

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 - https://www.grainger.com/content/kc-epro-article-understanding-your-procurement-cycle

COMPLIANCE PAIN POINTS

Confusing or unclear processes, alongside complex procurement, can lead to low

compliance and mistakes.

POLL 2

How many people are involved in your order approval process?

• 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

Source - https://www.grainger.com/content/kc-gov-article-click2buy-direct-simplifies-maintenance-procurement-for-district-49

INTRO TO ECOMMERCE SOLUTIONS

G R AI 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 AP P

• Barcode scanner, location-based lists, ePro Mobile

(for “on the go” purchasing)

ECOMMERCE SOLUTION BENEFITS

G R AI 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 AP P

• Existing Grainger.com benefits

• Barcode scanning tools

• Keepstock app and ePro integrations

• On-the-go convenience

WORK ORDER INTEGRATION

POLL 3

Are you utilizing some sort of work order system for repairs/maintenance?

• 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®

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

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

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

WHY ECOMMERCE?

• 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

(CONT)

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?

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

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.

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.

Q&A

Want to stay ahead of the curve on more topics like

this? Visit grainger.com/content/knowledge-center.

Upcoming NAEP Webinars

Check them out at www.naepnet.org/page/Webinars

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 www.naepnet.org and check out our events calendar. Access

it directly here: http://www.naepnet.org/events/event_list.asp