Presentation on theme: "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."— Presentation transcript:
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
History 1987 – Warehouses General and Food Maintenance Transportation
History Employees – 3 Warehouse Managers 7 Warehouse Workers
Advantages – Significant savings with bulk purchases via bids and state contracts Immediate access to warehoused goods No local access to goods at competitive prices
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
Changing times… 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
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
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!
Changing times…. Maybe I do need to get a handle on these online purchases Intro the Online Catalog Bid Contracted Prices!
Due to P-card and online purchases, the General Warehouse begins to fade away….
Online Shopping Portal
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!
2007 – So who needs a warehouse anyway? Advantages – none that I can think of
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
Judson C Crane CPPO, CPPB, FCPM, FCCM, FCN Director of Purchasing and Contract Administration Santa Rosa County School District