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How Online Purchasing Eliminates Warehousing….

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

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How Online Purchasing Eliminates Warehousing….

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  1. 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

  2. History 1987 – Warehouses • General and Food • Maintenance • Transportation

  3. History Employees – • 3 Warehouse Managers • 7 Warehouse Workers

  4. Advantages – • Significant savings with bulk purchases via bids and state contracts • Immediate access to warehoused goods • No local access to goods at competitive prices

  5. 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

  6. Changing times…. 1995 - 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

  7. 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

  8. 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!

  9. Changing times…. Maybe I do need to get a handle on these online purchases Intro the Online Catalog Bid Contracted Prices!

  10. Due to P-card and online purchases, the General Warehouse begins to fade away….

  11. Online Shopping Portal

  12. 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!

  13. 2007 – So who needs a warehouse anyway? • Advantages – • none that I can think of

  14. 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

  15. Judson C CraneCPPO, CPPB, FCPM, FCCM, FCNDirector of Purchasing and Contract AdministrationSanta Rosa County School District

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