Office Depot Presentation PowerPoint Presentation Open order

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Office Depot Presentation PowerPoint Presentation Open order Powered By Docstoc
					State of WA GA Workshop

        April 22, 2010
Save time and money when ordering office
        supplies, paper and toner
Agenda


• Office Depot Team Introductions
• Hard Cost – Ways to save on product costs
• Soft Cost – Ordering efficiency
• Sustainability
• Q&A
• Vendors - Optional




                           2
Hard Cost – Ways to save on product costs

• Essentials, Non Essentials and Exception Items

   – Essentials          Original          Now
     Office Supplies     1049              1251
     Ink/Toner             99               186
     Paper                 17                86
     Marked with

   – Non Essentials – Items that are on the contract but discounted from
     the categories manufactures list price. Example: Writing instruments
     are priced at 65% off list price. List price $1.00 – your price $0.35.

   – Exception Items – Exempt from the category discounts and are priced
     at a discount from Office Depot’s public website. These items are
     reviewed monthly per the contract.


                                       3
Hard Cost – Ways to save on product costs




                         4
Hard Cost – Ways to save on product costs
•   Sourcing Options
    – Kent Warehouse – 15,000 items stocked and delivered next day and able to
      check availability online.
    – Wholesaler - Additional 15,000 items stocked and delivered next day most of
      the time. Availability is marked Available* online.
    – Virtual Warehouse – Product that comes straight from the manufacturer to help
      save cost. Less than 2% of state sales comes from VW. Most of the product is
      toner and technology items.
    – Direct from Manufacturer (Special Order) – Not carried in our warehouse or
      wholesaler. Example: Large Outdoor Industrial Garbage Cans. Delivered 7 – 14
      business days once order is placed. Please contact your Account Manager.
    – Tech Depot – Office Depot’s technology division
        • Dedicated Account Manager – Sean Raby
      Example: Customer (DSHS) wanted quote for headset and lifter.
        • Lowest quote from other companies was $225.00 just for the headset.
        • Our price from Tech Depot was $211.15 with headset and lifter.
        • They ordered 114 for a total savings of $13.85 per unit with a total savings
           of $1,578.90 not including the savings from the lifter.




                                             5
Hard Cost – Ways to save on product costs
• Minimum Delivery Fee
   – Orders under $50.00 pre-tax will have a $9.95 small order handling fee
     attached.

   Example of                              Example of
   less than $50                           greater than $50
   order                                   order

   – In the past 12 months 36.5% of the orders were under $50

• Volume Discounts
   – Volume discounts are given for stocked
   items only.

   1% = $250.99 – $450.99
   2% = $451.00 – $999.99
   3% = $1,000.00 and above


                                       6
Hard Cost – Ways to save on product costs
• Store Purchases
   – Emergency Purchasing


   – P-Card
      • Ensure Agency P-Card is linked so discount is applied
      • Track purchases online

   – Store Purchasing Card (SPC)
      • Bills to Account Billing
      • Track purchases online




                                    7
Hard Cost – Ways to save on product costs
• Original Equipment Manufacturer vs. Remanufactured

   – OEM – Original Equipment Manufacturers cartridges are made by HP,
     Canon, Lexmark, or other original manufacturers. They are usually
     manufactured using a combination of new and recycled parts at
     factories throughout the world

   – Remanufactured – “REMAN” cartridges are those that have been
     remanufactured for another use. Remanufacturing process involves
     disassembling, cleaning, refilling toner, replacing appropriate
     components, print testing and repackaging



   Note: Office Depot REMAN toners comes with a 100% No-Risk Quality Guarantee to perform
      to your complete satisfaction.




                                            8
Hard Cost – Ways to save on product costs
•   Standard Yield vs. High Yield
     – A Model – Standard Yield Cartridge
     – X Model – High Capacity Cartridge - can reduce cost per page by up to 35%
       over standard yield
     – Dual Pack – Dual Pack – on average dual packs cost 10% less than their
       stand-alone counterparts

     –   Examples: HP 42A
                – SKU 992280 - $154.37
                – Cartridge yields up to 10,000 pages
                – $0.0154 per page
     –   HP 42X
                – SKU 975384 - $232.99
                – Cartridge yields up to 20,000 pages
                – $0.0116 per page
                – 24.54% Savings from 42A
     –   HP 42XD
                – SKU 522810 - $387.04
                – Cartridge yields up to 20,000 pages per cartridge
                – $0.0096 per page
                – 16.94% Savings from 42X and 37.32% from 42A


                                                 9
Hard Cost – Ways to save on product costs




                       10
Soft Cost – Ordering Efficiency

•   Processing Cost

           Total Orders                                       Percent Consolidation of Orders
                                                                 10%                 20%
          Total Number of Orders                148,070               133,263              118,456
    Total Number of Order - Lines               524,065               524,065             524,065
                      Total Sales          $24,317,486            $24,317,486         $24,317,486
         Average Amt. Per Order                 $164.23               $182.48             $205.29
        Average Lines Per Order                       3.54                  3.93                4.42
        Cost to Process an Order                   $100                     $100             $100
                Processing Cost            $14,807,000            $13,326,300         $11,845,600
 Cost Savings                                          $0          $1,480,700          $2,961,400



 Reduce number of orders by 14,807 and save the State of WA an additional   $1,480,700

                                                 11
Soft Cost – Ordering Efficiency

How to build your order for efficiency
    You can build an order and place
    it when you are ready. This will
    help you create orders above
    $50.00, take advantage of the
    order size incentive and
    decrease order processing costs.
     • Step 1: At checkout you can
       place your order on hold by
       selecting the “Put this order on
       hold.” This will reserve the
       inventory for 5 working days.




                                      12
Soft Cost – Ordering Efficiency

How to build your order for efficiency – Continued

   •Step 2: When you return back to continue ordering. Select “Order
   Tracking” under My Account menu


   •Step 3: Open your held order by clicking on the “Order Number”

   •Step 4: Click on the “Modify Order” button

   •Step 5: Click on the “Continue Shopping” button.     This will bring you
   back into the shopping process. You can check out when completed or
   return back to Step 1 to put your order back on hold to continue building
   at a later date.



                                       13
Soft Cost – Ordering Efficiency

• Order Entry
   –   Ecommerce = 90.6% of all orders placed
   –   Telephone/Fax = 5.2% of all orders placed
   –   Store Purchases = 4% of all orders placed
   –   Special Orders = Less than 1% of all orders placed


• Online Ordering
   – Singe Item Search
      • 6 Digit Office Depot SKU
      • Manufacturer Number
      • Item Description
   – Order by Item Number
   – Custom Shopping List




                                     14
Soft Cost – Ordering Efficiency
•   Order Tracking under My Account
    –   View On Hold Orders
    –   Recent Orders
    –   Place Returns
    –   View POD
    –   Reorder Items

•   Bill Management
    – Quickly access your account summary and detailed billing information to
      determine what is paid and what is outstanding
    – Search for invoices by date, due date, purchase order, ship to location or
      transaction type
    – Drill down into invoice activities , including payments, credits and
      adjustments
    – View print or export your invoices using a variety of formats
    – Pay your invoices online using multiple options
    – Pay one or multiple invoices at a time in one simple transaction
    – You can dispute an invoice online and receive a tracking number to follow its
      progress



                                         15
Soft Cost – Ordering Efficiency

• EFT vs. P-Card

   – Electronic Funds Transfer
      • Receive a 1% discount for paying by EFT
      • Receive an additional 1% discount for paying EFT, Net 10


   – P-Card
      • Reduce Agency processing cost – Please see handout
      • No additional discounts are given with P-Card transactions
      • Most P-Cards have their own rebate program




                                   16
Soft Cost – Ordering Efficiency




                          17
Sustainability

•   731 Sustainable items on the 09205 contract essentials list

•   April 2006 – March 2007 = 9.5% Recycled spend


•   April 2009 – March 2010 = 51%   Recycled spend

•   Office Depot offers more than 6,500 products with environmental
    attributes and certifications. This includes over 4,500 items with
    recycled content, over a thousand energy efficient technology and
    lighting products, and hundreds of items certified to be made with safer
    chemicals

•   New Website: As part of its Earth Day 2010 program, Office Depot has
    created a new website at www.officedepotgrowgreener.com and is
    encouraging people to submit their own ideas on how they are growing
    greener. For each green idea submitted, Office Depot will plant a tree
    with the goal of planting 4,000 trees by the end of May.


                                      18
Sustainability - Attributes
REDUCED WASTE AND PRESSURE ON RESOURCES        REDUCED ENERGY &
                                               CARBON EMISSIONS




                                          19
 Sustainability
12 cases (1/mth) virgin 8.5x11 … requires approx. 1 ton of wood…which requires approx 8 trees




 12 cases 30% recycled 8.5x11…requires approx. 5/8 ton of wood…which requires approx 5 trees




12 cases 100% recycled 8.5x11…requires approx. 0 ton of wood…which requires 0 trees




                                              20
Sustainability – Carbon footprint
  5 days a week            3 days   1 day




                          21
Sustainability




                 22

				
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Description: Office Depot Presentation PowerPoint Presentation Open order