1. Desktop Delivery of Classroom, Custodial & Office Supplies Pilot Program Results & Recommendations

2. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. Background:  February 12, 2002: –Board Approved a 90-day Pilot Program at a minimum of 10 sites to begin March 1, 2002 Participants: –12 school sites plus several central office departments –Contract Vehicle : County of Los Angeles/US Communities Contract with Office Depot –Annual Spending $8.5 million: $5.0 million Warehouse Purchases $3.5 million Retail Purchases

3. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. Background:  Success for District Wide implementation determined by: –Increased Customer Satisfaction –Overall Cost Savings of the Program

4. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. Current Ordering Process Checks budgets and/or with principal Checks budgets and/or with principal Admin. Assistant Places order IS Batches Orders IS Batches Orders Warehouse picks order Warehouse picks order Weekly delivery Custodian or Admin Asst. Custodian or Admin Asst. Delivery must be opened, separated and delivered Delivery must be opened, separated and delivered Teacher Gives order either on paper or in person Gives order either on paper or in person

5. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. JIT Ordering Process Checks budgets Checks budgets Places order in Office Depot System Places order in Office Depot System Delivery Custodian or Admin Asst. Custodian or Admin Asst. School Staff School Staff Order denied Orders delivered in Individually marked packages Orders delivered in Individually marked packages Approver Office Depot Online Orders sent for approval Orders sent for approval Order approved Order approved Redistributed

6. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. Overall Customer Satisfaction –Pre & Post implementation surveys conducted –93% somewhat or very likely to recommend the program to a colleague –91% felt the program met or exceeded their expectations –96% rated Office Depot’s customer service as similar or better than the District’s

7. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. Price Comparison (example: ball point pen) Cost to SiteCost to District Total Cost $1.00 $0.75 $1.75 Warehousing Method JIT Method Cost to Site/District $1.30

8. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. Price Comparison $5.0 Million Warehouse Method $1.75 $3.5 Million Retail Pricing $1.61 $6.5 Million Office Depot Best Value $1.30

9. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. Estimated Savings  02-03 Budget savings –$500,000 labor reduction (Phase 1 of 3) –Right of First Refusal with Office Depot –Bus Driver Training & Certification –Teamster Training –Incentives –Layoff

10. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. Estimated Savings  02-03 Budget savings –$1.1 million revolving fund –$1.0 million Savings District wide –Consolidated purchasing, Inventory Reduction, Reduced Spoilage & Shrinkage, Reduced Purchase Card Use –Rebate Program

11. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. Site Budget Adjustments Site Budgets will be adjusted for 02/03 based upon comparing district wide: Warehouse Purchases Purchase Card Purchases Budget Amount for Classroom, Custodial & Office Supplies Goal will be able to apply a budget adjustment formula district wide

12. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. Concerns/Risks  Custodial Products Pricing  Purchasing Culture of the District

13. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. Recommendation  Implement District Wide by Year End.  Year round schools –Summer ‘02  Other District offices, departments –Late Summer ‘02  Traditional schools –Early Fall ‘02

14. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. Customer Satisfaction Results

15. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. Customer Satisfaction Results

16. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. Customer Satisfaction Results

17. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. Customer Satisfaction Results

18. The mission of San Diego City Schools is to improve student achievement by supporting teaching and learning in the classroom. Testimonials  “This is a much more efficient way to order and receive supplies.”  “Very happy with the process and service. It’s easier than I thought it might be.”  “I had to call them several times to work out some department issues. They were extremely helpful.”  “I have recommended the program to several schools and they are looking forward to being trained.”