Transcript Slide 1

Business Review
for Texas Tech University Health Sciences Center
Reporting Period: October 2009 – January 2010
Attendees
• Texas Tech University Health Sciences Center
– Don Sarchet, Sr. Director of Purchasing
– John Haynes, Assistant Director of Purchasing
– Celeste Kulinski, Accounting Services
•Summus Industries
– Michelle DoPorto, Account Manager
• Staples Business Advantage
– Tiffany Robinson, Account Manager
Focus of your review
• Process
– Review your current procurement process and its effectiveness for
total cost management.
• Opportunities
– Discuss your corporate goals and determine the ways in which we
can help you reach them.
• Programs
– Discuss new Staples initiatives and programs.
Business Review Agenda
• What’s New at Summus Industries
• Program Metrics
Relevant and current performance tracking
•
•
•
•
Reporting snapshot
Product usage
Ordering activity
Service levels
• Savings opportunities
Review of additional opportunities to save
• Program Initiatives
Staples initiatives relevant to your business
• Summary of Action Plans – Recommended next steps
What’s new
at Summus Industries
What’s New at Summus
• Summus Has Moved
New corporate office is located at
245 Commerce Green Blvd., Suite 155, Sugar Land, TX 77478
(281) 640-1765
• Expanded Summus accounting and internal customer
service staff to accommodate growth in business
Program Metrics
Product Usage
Contract vs. Non-contract Item Use
100%
90%
72.57%
65.00%
80%
70%
60%
35.00%
50%
27.43%
40%
30%
20%
10%
0%
% Contract Items
Texas Tech HSC
% Non-Contract Items
SBA Average
OPPORTUNITY: Great job you all are currently maximizing your savings potential by purchasing
effectively on your contract.
Product Usage
Purchase Analysis
0.00%
Digital Copy
0.02%
Special
4.08%
Wholesaler
23.34%
Miscellaneous
72.57%
Contract
0%
10%
20%
30%
40%
50%
60%
70%
OBSERVATION: Purchases from Wholesalers accounted for 4.08% of Texas Tech HSC’s
non-Contract purchases.
Order Activity
Ordering Methods
Other 98.48%
Store Order
1.22%
EDI 0.26%
Fax 0.04%
OPPORTUNITY: Texas Tech HSC places .04% of their orders via fax. Shifting orders from Fax
orders to StaplesLink.com internet ordering would save your company time and money.
Order Activity
Average Order Size


Order Size
Dollars
Spent
% of
Dollars
Spent
Num ber
of Orders
% of
Orders
Orders < $50
$4,488.64
0.67%
136
5.03%
$50.01 - $100
$54,120.27
8.02%
761
28.12%
$100.01 - $200
$109,926.21
16.29%
751
27.75%
$200.01 - $500
$219,724.37
32.56%
719
26.57%
$500.01 - $1,000
Orders > $1000
$176,892.13
$109,712.98
26.21%
16.26%
259
80
9.57%
2.96%
TOTAL
$674,864.60
100.00%
2,706
100.00%
Average order size is $249.40
5.03% of total orders are at or below $50
OPPORTUNITY: Average processing costs on orders under $50 can range between $90-$200 for
both Staples and Texas Tech HSC. The average order size has been identified as one of the key
drivers in saving process costs for our customers.
Order Activity
Returns
Return
25.07%
Other
25.36%
2.62%
No Reason
Dissatisfied
4.96%
Duplicate
3.50%
Manf Defect
2.04%
Damaged
3.79%
29.45%
Customer Error
Mispick
3.21%
0%

5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
% of Returns vs. Sales : 1.99%
OPPORTUNITY: Average processing costs on returns can run between $14-$25 for both Staples and
Texas Tech HSC. Work to reduce the percent of returns through process and product education.
Program Overview
Reporting Snapshot
2008 vrs 2007
Total Purchases
Total Returns
Avg Order Size
# of Orders Under $50.00
# of Orders Placed
% Contract Products
% Miscellaneous products
% Wholesaler products
% Specials
% Digital Copy
% Recycled Purch.
% Diversity Purch.
% Stock-Only Fill 0-24hrs.
% Total Returns
Oct09-Jan10
Oct08-Jan09
$674,864.60 $756,089.17
$13,210.82
$13,506.90
$249.40
$239.27
136
582
2,706
3,160
72.57%
43.53%
23.34%
46.84%
4.08%
3.84%
0.02%
5.76%
0.00%
0.04%
10.81%
11.72%
2.42%
2.68%
85.60%
85.47%
1.99%
1.82%
Environmental Report
Total Paper Purchases
28320.12 lbs.
Total Post Consumer Recycled Content
6209.33 lbs.
Average Post Consumer Recycled Content
21.93%
Green house gas emission reduced (CO2)
6544.63 lbs.
Equivalent number of average US cars not driven per year
0.5943
Water saved
27165.82 gals.
Trees saved
74.51 trees
Wood resources saved
18627.99 lbs.
Total energy (BTUs) saved
52779305 BTUs
Energy equivalent to oil saved
377 gals.
Equivalent number of average US homes heated per year
1.3561
Energy equivalent to electricity saved
15028.28 kWh
Equivalent number of average US homes powered per year
1.3252
Environmental impact estimates were made using the Environmental Defense Paper Calculator and publicly
available US. DOE data. For more information visit: www.papercalculator.org
Current Program Overview
• Accomplishments:
– Successful order of SON Promotional Products
– Successful Annual Vendor Show in December 2009
Current Program Overview
• Opportunities:
– Introduce Facilities Services Program
– Introduce Digital Copy/ Print Program
Cost Saving Analysis
Potential Savings for TTUHSC
Summus Industries
CNSRTM/NJPA
Area of Opportunity
Potential savings
Move miscellaneous items to Contract with
new pricing
$xxx,xxx.00
Modification of proprietary items
$xxx,xxx.00
Recycled toner program
$xxx,xxx.00
Transitioning Fax orders to StaplesLink.com
(average number of orders/year x $.98)
$xxx,xxx.00
Increase Staples brand product percentage
$xxx,xxx.00
Continue to increase number of orders over
$50
$xxx,xxx.00
Total Potential Savings
$xxx,xxx.00
Easy Ways to Save on
StaplesLink.com
We're always looking for new ways to help our
customers save money. And now, we've made it
even easier with the enhanced features of our
"Recommended Alternatives.“
When placing orders, certain products may have a
lower-cost alternative. We’ll show you that another
option is available. The choice is up to you.
• Benefits of “Recommended Alternatives”:
 Easy — Items with “Recommended Alternatives”
appear automatically while browsing.
 Cost effective — “Recommended Alternatives”
save money without sacrificing quality.
 Fast — Comparing products and adding the
“Recommended Alternative” to your order is simple.
 Flexible —The choice is always yours whether you want
the original product or the “Recommended Alternative.”
One Source
for all your office supply needs.
Staples Facility Solutions
• Staples offers competitive prices and superior convenience
with a broad selection of:
– Bathroom cleaners, facial tissues, folded paper towels and more
– Janitorial carts, vacuums, push brooms, face and eye protection
– Snacks, hot beverage mixes and
disposable dinnerware and cups
– Recycling and waste receptacles
– Time clocks, cards and badge
holder racks
Staples Technology Solutions
Staples is the one source for the tech products you use everyday
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We sell 21st century office supplies such as:
– Desktop Tech: mice, keyboards, monitors, printers
– Mobile Products: headsets, flash drives, GPS, digital cameras
– Security Products: shredders, laptop locks, privacy screens
– Conference Room Necessities: webcams, projectors, phones
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Staples dedicated technology experts can:
– Provide assessments and vendor neutral recommendations
– Recommend standards programs to help reduce costs and save IT resources time
– Negotiate great pricing by leveraging our relationships with leading vendors
– Use our streamlined process for faster role out
Staples Network Services
by Thrive
Staples Network Services by Thrive offers outsourced IT support for
emerging and mid-market companies in the Boston and Atlanta area.
• Our comprehensive array of IT services include:
– Technology consulting
– Disaster recovery planning
– Remote support
• Our services can help to:
– Create a network infrastructure that runs efficiently and seamlessly.
– Reduce the time employees spend on IT issues, so they can focus on their
core responsibilities.
– Improve client technology decisions by leveraging proven best practices.
Staples Network Services
by Thrive
• Thrive Online Backup is the efficient
and safe way to back up important
information on a computer.
• Staples delivers a premium online
backup service at one of the most
competitive price point in the
industry.
• A copy of the data is stored in a
secure, remote location for
safekeeping and always retrievable
– even in the event of a disaster.
Health & Wellness
Staples can help you find ways to keep your
employees healthy, productive and safe.
• Pandemic Preparedness
Disposable latex gloves,
flashlights, customized disaster
and first aid kits, face masks,
and batteries.
• Disinfecting Products
Hand sanitizers, disinfecting
wipes and office cleaners,
disinfecting air spray and
antibacterial soap.
Digital Copy Services
Free up your valuable time and gain more control by
consolidating all your printing jobs at Staples.
Get the quality, pricing and fast delivery you expect.
Staples Advantage does it all —
Catalogs, Employee handbooks, Brochures,
Forms, Marketing Materials, and more…
•
Facilities dedicated to Staples Advantage
customers feature:
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State-of-the-art equipment and fast turnarounds
Order online anytime, anywhere
Network of integrated closed-door
production facilities
Contract pricing and service levels
Delivered to your door
Print Services on StaplesLink
Order all your copy and print
products on the same site you
order office supplies
Two main product offerings make
it quick and easy to access all your
print products on StaplesLink.com
• Online Copy and Print Center
• Custom Imprint Templates
Stapleslink.com is now your one
source for all your office product
needs
Print Services on StaplesLink
Online Copy and Print Center
Now order your copy and print
projects online, anytime, anywhere.
• Upload documents
• Configure your project
• View an online proof
Custom Imprint Templates
Provides quick and easy access to
customizable product templates for
stamps, business cards and more.
• Upload your logo
• Add custom text
Staples Promotional Products
Promoting your brand just got easier.
• One of the largest global manufacturers
and distributors of corporate branded
merchandise
• Design services to get exactly
what you want
– Complete customization of style,
fabric color and decoration
• Quick turnaround on in-stock items
• Flexibility to fulfill one-time special orders
Business Interiors by Staples
Business Interiors by Staples has the furniture products and services to fit your
style and budget.
– Concept to completion. Business Interiors by Staples
can help you at every step:
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Furniture needs analysis
Design consultation
Space planning
Project Management
Move & Asset Management
Installation services
Refurbishing, Refinishing and Reupholstering
– Access to the top manufacturers
•
We offer more than 300 premier brands of office
furniture, from chairs or desks to complete cubicle
systems, we stock and service it all.
We also offer Furniture Standards programs to help you maintain consistency
within your organization, leverage price savings, and ensure compliance across
multiple sites.
Environmental Initiatives
“Green” Products
• Staples offers more than 3,000 environmentally preferable products to
help you meet your environmental procurement goals:
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Paper: choose from multiple brands, and multiple grades
Supplies: remanufactured ink and toner
Technology: Energy Star certified office technology products
Furniture: cubicle systems made from recycled-product content
• Staples is pursuing earth-friendly innovations:
– Biodegradable packing peanuts made from cornstarch
– Paper made from sugarcane, file folders from recycled denim
Now on StaplesLink.com – the EcoEasy Banner.
Quickly find the most popular Green products
included in your contract with the click of a mouse.
Sustainable Earth by Staples™
Easy on the planet.
Sustainable Earth by Staples™.
Green Seal-certified Cleaners
• Our most eco-conscious line of
Staples® brand products
• Uses only eco-conscious
manufacturing processes, product
components and/or packaging made
from recycled materials
Remanufactured Toner Cartridges
• Every product must meet our
brand’s high environmental
standards
• Quality guaranteed
Sustainable Earth by Staples™
Ready to Use Cleaners
•
There are 4 SKUs being introduced in the
Sustainable Earth family.
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807727: 32 oz Multi-Purpose Cleaner
807721: 1 Gallon Refill Multi-Purpose Cleaner
807728: 32 oz. Glass Cleaner
807729: 1 Gallon Refill Glass Cleaner
 Developed with natural ingredients and no harsh chemicals
 Green Seal Certified and EPA Designed for the Environment
recognized
•
Multi-Purpose Cleaner
– Is the one cleaner that does it all
– Superior cleaning on floors, walls, countertops, desk & cabinets
– Great for cleaning glass & porcelain
•
Glass Cleaner
– Makes cleaning windows and hard surfaces quick and easy
– Alcohol, ammonia and phosphate free
Sustainable Earth by Staples™
•
Announcing our exclusive new line of
remanufactured toner –
Sustainable Earth by Staples™
•
Every Sustainable Earth toner meets high
environmental standards
•
This new brand is a repackaging of the
Dataproducts Signature Select remanufactured
toner
•
Beginning this summer, you may receive toner in
either Dataproducts Signature Select or
Sustainable Earth brand boxes
•
During the transition, continue to use the same
item number to order your toner
Remanufactured Toner
Great Quality & Savings
Quality printing
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Engineered to national brand specifications
Certified to ISO 9001:2000 standards
High quality with no spotting, smudging or fading
Backed by one-year manufacturer’s warranty
Third-party quality tested
Cost savings
•
Affordable option over national brands
Environmentally responsible printing solution
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Recycled toner cartridges help protect the environment by
keeping reusable, non-biodegradable materials out of
landfills
Eco-preferable ISO 14001 certified manufacturing process
Packaging made from recycled materials
Cartridge recycling program
Catalogs
Facilities and Breakroom Catalog
• This catalog features all the products
to keep your facility running—from
chemicals to breakrooms—all at a
great price!
– Helpful tools that provide information
and answers to common facility
concerns such as:
• Carpet Spotting
• Restroom Cleaning
• Net Priced, valid until 4/1/2010
• Order online with SKU 788416
• 400 pages and more than 4,500 items
Staples Furniture Catalog
Thinking about buying furniture?
Staples Furniture Catalog is now available!
From a new chair to a whole new office, look
no further than Staples.
–
Wide range of products in an array of
styles and colors.
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300+ pages displaying 5000+ products
Dedicated Furniture Solutions associates
available to give expert advice & planning.
Design and installation services available.
Staples No. 755167
Valid until March 2010
View this catalog
online! Click Here
Staples “Green Guide”
• Staples’ Green Guide offers an assortment of hundreds of eco-friendly
products in categories such as:
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Core office supplies
Cleaning and Breakroom
Paper
Toner
Furniture
• Bright ideas and tips to
green your office
• Glossary of common
environmental terms
View our online
“Green” Catalog
CLICK HERE
The Full Line Catalog
The 2010 Full Line Catalog features everything
you need for your business – from basic office
supplies and facilities to technology and furniture.
– Order from StaplesLink.com, Staples No.
824021
– 8,800 unique SKUs
– 1,800+ Staples brand products
– 1,700+ new products
– 2,000+ recycled products
– ~400 diversity supplier products
– Printed on 30% post-consumer recycled
FSC-certified paper
And online version
will be available
Online Catalogs
on StaplesAdvantageCatalogs.com
• What are online catalogs?
– Online, interactive versions of a
variety of our product catalogs –
simply click on a catalog, and begin
to shop
• Benefits of online catalogs
– Provides instant access to our
catalogs, no login required
– “Click to buy” feature adds products
to your StaplesLink.com shopping
lists directly from the online catalog
– An environmentally friendly solution
– a great way to help our customers
decrease their impact on the
environment
Customer Service &
Satisfaction
Staples Advantage Differentiators
Staples Advantage makes it easy for business customers of all sizes around the globe to buy
products, services and solutions for all of their business needs.
 Global Reach: We are the world’s largest office supplier, serving businesses in 27 countries on five continents.
 Financial Strength: Staples’ best-in-class financial position allows us to continually invest in our delivery businesses.
 Account Management: Our unique account management model provides one point of contact across all lines of our
business.
 Operational Excellence: Our state-of-the-art distribution network provides 96% of the U.S. population with next-day service.
 eProcurement: Our industry-leading expertise includes proprietary Web sites and third-party platform integration with a 30day customer implementation standard.
 Integrated Solutions and Supplier Consolidation: “One Source” for all of your business needs including technology
products and services, data supplies, print and document management, furniture, facilities and promotional products.
 Customer Service: Customer satisfaction is our highest priority. Our call centers’ excellence has been recognized by JD
Power and Associates every year since 2004.
 Retail Store Network: Our 1500+ U.S. retail stores, the most in the industry, provide same-day purchases and emergency
services at preferred-customer pricing.
 Staples Brand Products: Staples brand offers customers savings opportunities with more than 1600 high-quality, innovative
products.
 Staples Soul: Staples recognizes the close connection between our success and our efforts in the areas of environmental
sustainability, ethics, diversity and community.
Why Staples Advantage?
Staples offers distinct advantages that consistently deliver more value to ’s
business.
– Account Management: Count on a dedicated, local Account Manager to
provide you with a single point of contact and proactive support for your
strategic business objectives.
– E-Procurement Expertise: Streamline ordering and enhance compliance via
our proprietary B2B Web site and expertise at third-party platform
integrations.
– One Source Solution: Running your organization is “EASY” when you
purchase your office supplies, technology, furniture, facility, print and
promotional product needs from one trusted and cost-effective source.
– Delivery Excellence: Experience accurate and FREE next-business-day
delivery through our best-in-class fulfillment network.
– Customer Service: Keeping your end users satisfied and productive is our
highest priority. They’ll enjoy expert and responsive service through our call
center network, recognized by J.D. Power and Associates for 6 consecutive
years (2004 – 2009).
Distinct Advantages (Continued)
– Retail Store Network: You’ll have a convenient same-day purchasing
solution through our 1,500 U.S. retail stores.
– Staples® brand Products: Achieve exceptional savings through our more
than 2,000 high-quality and exclusive Staples® brand products.
– Financial Strength: Benefit from the strength and stability of the industry’s
financial leader. By constantly investing and reinvesting in our business, our
customers experience the very best in technology and service.
– Global Reach: With coverage across 37 countries and 5 continents, you
can expect consistent value and quality for all your locations worldwide.
– Staples Soul: We share and complement ’s core values. Our
environmental and diversity supplier solutions help you to meet and/or
exceed your corporate responsibility goals and initiatives.
– Our People: From our account managers and Customer Service Reps to
our delivery drivers and warehouse associates, we hire only the best and
hold them responsible for delivering incomparable results for our customers.
Next Steps
Action
Date
1.
2.
3.
4.
5.
6.
Responsibility
Target
Summary of Action Plans
Subject
Action Plan
Timeline
We are committed to
a successful partnership with
Texas Tech Health Sciences Center
Thank you