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State of WA GA Workshop

April 22, 2010

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


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Agenda

  • Office Depot Team Introductions

  • Hard Cost – Ways to save on product costs

  • Soft Cost – Ordering efficiency

  • Sustainability

  • Q & A

  • Vendors - Optional


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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.



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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.


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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


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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


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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.


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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



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    Soft Cost – Ordering Efficiency

    • Processing Cost

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


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    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


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    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.


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    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


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    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


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    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



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    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.


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    Sustainability - Attributes

    REDUCED ENERGY &

    CARBON EMISSIONS

    REDUCED WASTE AND PRESSURE ON RESOURCES


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    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


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    Sustainability – Carbon footprint wood…which requires approx 8 trees

    3 days

    5 days a week

    1 day


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    Sustainability wood…which requires approx 8 trees