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A Model Standard Yield Cartridge. X Model High Capacity Cartridge ... As part of its Earth Day 2010 program, Office Depot has created a new website at ...

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State of WA GA Workshop

April 22, 2010

Save time and money when ordering office supplies, paper and toner

agenda
Agenda
  • Office Depot Team Introductions
  • Hard Cost – Ways to save on product costs
  • Soft Cost – Ordering efficiency
  • Sustainability
  • Q & A
  • Vendors - Optional
hard cost ways to save on product costs
Hard Cost – Ways to save on product costs
  • Essentials, Non Essentials and Exception Items
    • EssentialsOriginal 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.
hard cost ways to save on product costs5
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.
hard cost ways to save on product costs6
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.
    • 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

Example of greater than $50 order

Example of less than $50 order

hard cost ways to save on product costs7
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
hard cost ways to save on product costs8
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.

hard cost ways to save on product costs9
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
soft cost ordering efficiency
Soft Cost – Ordering Efficiency
  • Processing Cost

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

soft cost ordering efficiency12
Soft Cost – Ordering 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.

How to build your order for efficiency

soft cost ordering efficiency13
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.
soft cost ordering efficiency14
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
soft cost ordering efficiency15
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
soft cost ordering efficiency16
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
sustainability
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.
sustainability attributes
Sustainability - Attributes

REDUCED ENERGY &

CARBON EMISSIONS

REDUCED WASTE AND PRESSURE ON RESOURCES

sustainability20

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

Sustainability

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

sustainability carbon footprint
Sustainability – Carbon footprint

3 days

5 days a week

1 day

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