eProcurement

Electronic Purchasing From the Workstation in the Classroom

at the Click of a Mouse….

Rick Gay, RSBOPurchasing Manager

Baltimore County Public Schools, and 2006/7 President, ASBO MD/DC

eProcurement adoption

• The benefits of eProcurement are compelling

• Up to now, only a few of the largest school districts with professional purchasing staffs, adequate resources and an internal “champion” have implemented systems

• ASBO MD/DC intends to offer its members access to a successful, secure on-line eProcurement network

What is Online Procurement?

• An Online Procurement network uses sophisticated technology providing a secure marketplace, sales platform and transaction tracking system available via the web only to selected buyers and suppliers.

• An aggregated, “catalog of catalogs” controlled by an administrator and using only pre-negotiated pricing and terms from authorized vendors

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The benefits are real….

• In a recent study of early adopters of eProcurement systems, the Aberdeen Group reported the following key benefits:– Improved data gathering and reporting

on fiscal year expenditures– Tighter control over off-contract or

“maverick” buying– Lower procurement administration costs– Shorter requisition and order fulfillment

cycles

A Positive Experience at Baltimore County

• BCPS Online Curriculum Catalogs• A secure, Online Procurement

network for ordering curriculum and instructional materials, including textbooks and other frequently used instructional items.

• Access to office/classroom supplies through Office Depot, Corporate Express, and Rudolph’s – 80,000+ items

BCPS Online Curriculum Catalogs

• In operation for six years• Over 25,000 curriculum items included in

the catalogs• Pre-negotiated prices with approved

suppliers only• Searchable by title, item name, ISBN #• Price comparison between vendors• Catalogs may be printed for copying and

distributing

BCPS Online Curriculum Catalogs

• Users register through the PDC website, get a user ID & password on completion of training

• Users budget accounts stored in the network• Orders are routed to principal for electronic

approval – before they are sent to the vendor• Vendor ships and charges appropriate budget

through Visa purchasing card system• Users may print copies of approved orders for

delivery identification, verifying Visa charges, follow up of backorders

Benefits realized by BCPS

• Ready access to catalog information on employee’s desktop

• Control over process and approvals, with accurate accounting codes

• Seamless integration with purchasing card processes and tools

• Reduced supplier costs to serve• Streamlined procure-to-pay, business

processes

Benefits for Purchasing Personnel

• eProcurement frees purchasing personnel from:– clerical, order processing activities

that are time-consuming and non-strategic

– Allows them to focus on strategic activities, such as negotiating contracts with suppliers and analyzing purchasing behavior.

Process Improvement Results

• Real-time Orders to Vendors• 24-48 hour delivery• 10-15% reduction in shipping costs• Vendor payment 48 hours from

shipment• Consolidation of sources• Purchase orders reduced from 31,000

annually to 11,000

Scope of BCPS’s On-Line Program

• 1202 Teachers

• 577 Principals acting as approvers

• 5 system administrators

• 230 Suppliers

• 299 Unique Contracts

• 425,000 Line Items

• 7,000+ Annual Orders for over $2,600,000 and

growing

BCPS Catalogs• Art Supplies / Photo

• Athletic Equipment &

Supplies

• Audio Visual

• Family Studies

• Handwriting Materials

• Library Media

• Math Supplies

• Media

• Medications and First Aid

• Music

• Periodicals

• Physical Education

• Science Supplies

• Technology Education

• Textbooks

• Unique Office Supplies

ASBO MD/DC eProcurement Objectives• Create a secure, on-line purchasing

network for members• Leverage the BCPS technology and

experience• Leverage pre-negotiated contracts

from BCPS, US Communities, the Pennsylvania Joint Educational Procurement Alliance, the Joint Powers Alliance and other public sector buying groups

ASBO MD/DC eProcurement Objectives• We want to bring this latest technology to

members and their schools/districts at no additional cost to members

• Technology vendor on board• Major suppliers of both general materials –

office, etc. and curriculum supplies have indicated strong interest

• US Communities strongly supportive• Demo system up and running. Pilot planned

for January 07, with full production in April/May

On-Line Vendor Supply Catalogs

Vendor Catalogs Available to Faculty and Staff via the BCPS Intranet

Vendor Catalog registration page

Questions?