How Online Purchasing Eliminates Warehousing.

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How Online Purchasing Eliminates Warehousing.

• A case study of the Santa Rosa School District
• Judson C Crane
• CPPO, CPPB, FCPM, FCCM, FCN
• Director of Purchasing and Contract
  Administration
• Santa Rosa County School District

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History

• 1987 Warehouses
• General and Food
• Maintenance
• Transportation

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History

• Employees
• 3 Warehouse Managers
• 7 Warehouse Workers

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Advantages

• Significant savings with bulk purchases via bids
  and state contracts
• Immediate access to warehoused goods
• No local access to goods at competitive prices

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Disadvantages

• Tens of thousands of dollars of dead stock
• Yearly write offs of dead stock, spoiled and
  missing goods
• Management of staff / personnel issues and costs

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Changing times.

• 1995 - Introduction of P-Cards
• Users could buy needed items without waiting on
  a warehouse requisition
• Greater availability of discount Super Stores
• Wal-mart
• Office Depot / Office Max / Staples
• Home Depot / Lowes

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Changing times.

• Maintenance Warehouse first to go Bid for
  regionalized preferred supplier
• Custodial Services Outsource Janitorial
  warehouse items no longer carried
• Transportation Outsourced 1998 Warehouse stock
  sold to contractor

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Changing times.

• Web Based Procurement becomes available
  requisitioners start to shop online
• Do I care where they shop?
• heck no, I can limit purchases through P-card.
  Why sweat the small stuff it all small
  purchases anyway!

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Changing times.

• Maybe I do need to get a handle on these online
  purchases
• Intro the Online Catalog Bid
• Contracted Prices!

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Due to P-card and online purchases, the General
Warehouse begins to fade away.
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Online Shopping Portal
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What about warehouse staff?

• Reduce numbers through natural attrition and
  reassignment
• Greater Surplus Function
• There will lways be a need for a delivery system
• Commodities!

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2007 So who needs a warehouse anyway?

• Advantages
• none that I can think of

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Benefits of Warehouse Elimination

• Reduced warehouse personnel through change in
  positions and attrition
• Duties of Buyer has expanded to other areas
• Warehouse storage reduced dramatically
• Publishing of yearly warehouse catalog eliminated
• Purchases and payments for warehouse reduced by
  98. (We maintain a Computer Warehouse, forms a
  few items)
• Running of reorder, items issued receipt
  comparison reports.
• Yearly bids, tabulations and quotes for stock
  eliminated
• No receiving stock
• No stock posting
• Adjustments and correction to inventories
• Damaged stock and shipments
• Daily, monthly and yearly stock counts reduced
  dramatically.
• No more obsolete items needing disposition
• No aged inventory
• No inventory losses
• Delivery
• Purchase of Delivery Trucks and Equipment
• Fuel use down
• More choices available through portal. Warehouse
  carried standard items

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Judson C CraneCPPO, CPPB, FCPM, FCCM,
FCNDirector of Purchasing and Contract
AdministrationSanta Rosa County School District