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February 17, 2012
Office and Educational
Consumables STC
P-Card Administrators
Quarterly Meeting
2
Introduction
• Mark Hernandez• CPPO, CPPB, FCPM, FCPA, FCCN, FCCM
• Associate Category Manager
• Division of State Purchasing
• Department of Management Services
3
Contract Administrator History
• 8 years in the Private Sector in Sales,
Management, Marketing, Advertising
• 13 years of State Procurement, Contract
Management and Administration
– DCF 8 years
– APD 3 years
– DMS 2 years
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Office and Educational Consumables
• What we will cover today:
1. A little history on the solicitation and functionality of the contract.
2. What is covered under STC #618-000-11-1?
3. What is the best practice to ensure that I am getting the most
competitive price available under the contract?
4. Copies of the documentation (invoices/shipping reports/etc.) end
users can expect to see in support of purchases made through the
STC—to help identify ―doctored‖ documents.
5. Availability of replacement receipts—in the event one gets lost.
6. Reporting data from the vendors to the customers to improve
savings for the state.
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State Term Contract History
• Effective October 18, 2010, a new state term contract for a
variety of office and educational products was executed.
• Awarded vendors include:
• Cost savings range from an average 4 to 13 percent off of the
previous state contract.
• Contract discounts average more than 50 percent, with
discounts up to 80 percent off the SP Richards List Price.
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Contract Overview• This STC provides products in some of the following
categories:
• Each product category (above) has its own discount associated,
this STC includes three major discount categories:
– Core Items Non-Core Items Generic Items
Toner, Non-HP Toner Remanufactured
Folder, Binders and accessories Paper (20# white recycled & virgin,
other)
IT peripherals Office consumables (pens, post-it notes,
etc.)
Equipment Breakroom and cleaning supplies
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Contract Overview
• These items are covered by other Florida STC.
• The awarded vendors were not required to include these categories
in their final product catalogs.
Contracted Items STC Number
IT Hardware & Software STC 250-000-09-1: Network Infrastructure
STC 250-040-08-1: PCs, Laptops and Monitors
STC 252-500-09-1: Mainframe and Other Software
Copiers STC 600-000-11-1: Multifunction Products
Safety and Lab Supplies STC 490-000-07-1: Laboratory and Safety Supplies /
Equipment
Office Furniture STC 420-420-10-1: Educational / Institutional Furniture
STC 425-001-05-P: Office Furniture
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Contract Overview
• We started with over 400 core items, that are now over 800
core items(including both name brand and generic) total for
Office Depot and Staples, but about half that for GCOP.
• What is a core product? A core product is a item that has
collective annual spend of $10,000 or more.
• We are considering adding to this requirement the following
criteria:
• How frequently the item is ordered
• Numbered Ordered
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Pricing Model
• Discount Category and Product Category – What is the
difference?
– Discount Categories – core, non-core, generic
– Product Categories – consumables, equipment, etc.
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Pricing Model
Discount
CategoryProduct Category
Office Depot %
Discount off List Price
Staples % Discount
off List Price
Gulf Coast %
Discount off List
Price
Core Toner - HP 35% 37% 38%
Toner - Non HP 32% 42% 38%
Consumables 66% 64% 60%
Folders, Binders & Accessories 70% 66% 62%
Equipment 30% 53% 48%
Breakroom & Cleaning Supplies 40% 60% 52%
IT Peripherals 34% 55% 45%
Non-Core Consumables 66% 55% 60%
Folders, Binders & Accessories 70% 55% 62%
Toner - Non HP 32% 25% 36%
Equipment 30% 40% 36%
IT Peripherals 34% 40% 44%
Toner - HP 35% 32% 35%
Breakroom & Cleaning Supplies 40% 55% 52%
Paper - Other 60% 70% 60%
Generic Core &
Non-Core Consumables 79% 77% 75%
Equipment 36% 62% 76%
Folders, Binders & Accessories 75% 77% 62%
Paper - 20# White (Recycled and Virgin) 79% 81% 76%
Toner - Reman 63% 54% 72%
IT Peripherals 32% 44% 49%
Breakroom & Cleaning Supplies 55% 77% 52%
Paper - Other 71% 80% 72%
Toner - Non HP 61% 54% 58%
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Contract Purchases: RESPECT and PRIDE
• Similar commodities or services of comparable price or
quality found necessary for use by any state agency may not
be purchased from any source other than RESPECT or
PRIDE.
• RESPECT or PRIDE purchases should be made prior to
purchasing off of a state term contract or agreement.
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RESPECT products/services PRIDE products/services
•Office supplies, marker boards
• Janitorial products and services
• Office furniture
• Maintenance supplies
www.respectofflorida.org www.pride-enterprises.org/
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Contract Benefits: Minimum Mandatory Requirements
• Delivery within two business days on orders placed by 4 p.m.
• Desktop delivery (How do I include desktop location?)
• No delivery fees for orders more than $25, excluding
furniture.
• Fees for furniture delivery not to exceed $40.
• Training from each vendor on how to use the vendors portal,
at the request of our customers.
• Order and price accuracy rates of 98% and 99.5%,
respectfully.
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• A ―third party‖ audits each vendor’s pricing for contracted
items on a monthly and annual basis.
• Monthly Price Accuracy Audit – Samples a minimum of 570
items displayed on the vendor’s State of Florida portal.
• Annual Price Accuracy Audit – Samples a minimum of 600
customer invoices.
• The approved product catalog as submitted by the state will
be used to validate prices on the vendor’s website and on
customer invoices.
Contract Benefits: Third-Party Price Auditing
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Additional Contract Benefits
• Each vendor maintains a Punchout catalog in MFMP.
• Each vendor has a strong presence in Florida.
• Gulf Coast Office Products and Staples offer potential volume
discounts.
• Staples and Gulf Coast Office Products do not have a
minimum order amount.
• Office Depot offers additional promotional opportunities (i.e.
waiver of the minimum order fee for the first year + of the
contract).
• Each customer can develop a shopping list of frequently
purchased items to speed up the order process.
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Contract Tips & Tricks
• There are many ways to purchase off of this
contract:
• Not sure how to make your purchases? Use the Procurement
Decision Tree handout from DMS at
http://dms.MyFlorida.com/mfmp_jobaids
PCard purchases MFMP purchase orders Direct vendor sales
(for non-catalog orders
only)
•Vendor website
•MFMP PCard purchases
•In-store purchases
• Punchout catalog
orders
• Non-catalog orders
•Vendor website
•Phone, e-mail
•Sales representative
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Contract FAQs
• What are the benefits of core vs. non-core items?
• Can we use our PCard to purchase items off of this contract?
• Is the contract pricing each vendor’s best and final offer?
• Is two-day delivery each vendor’s best and final offer?
• Are there minimum order requirements?
• How do I read the contract pricing spreadsheet?
• How do I read the vendor’s catalog on DMS website?
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Office and Educational Consumables
2. What is the best practice to ensure that I am getting the most
competitive price available under the contract?
• Time Permitting end users should compare pricing, UOM, and other product details:
– Vendor’s State of Florida Punchout Catalog
– DMS State Purchasing Website catalogs can be downloaded in MS Excel Spreadsheet
• In Store may be an option as well to get lower prices.
• Why are some prices Lower on Joe Public’s web site?
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Vendor Catalogs
• How are the catalogs validated?
Six Layers of checks
– UPC = SPR
• Manufacture Number
• Product Description
– Check UOM, QPU, List Price
– Discount % = previous Qtr or BAFO % off list
– Vendor’s Net Price = State/SPR Net Price
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Office and Educational Consumables
3. Copies of the documentation (invoices/shipping reports/etc.)
they can expect to see in support of purchases made through
the STC—to help identify ―doctored‖ documents
• See handouts of Office Depot and Staples invoices, package slips and
• Ultimate responsibility for verification and approval of items ordered, received, and stocked is the end user.
24
Office and Educational Consumables
4. Availability of replacement receipts—in the event one gets lost
• Both Staples and Office Depot stated getting duplicate copies of documentation is possible.
• I have not confirmed this with Gulf Coast Office Products, yet, but most likely this should not be a problem.
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1. Copies of the documentation that an end user/agency can expect
to see in support of purchases made through the STC with
Staples (to help identify ―doctored‖ documents)
– Open AR Payment/Ordering
– Credit Card Payment/Ordering
2. Availability of replacement documents
3. Reporting data available to the customers to improve savings for
the state
25
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Staples - STC Overview
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Important Note: State of Florida Agency End Users should be ordering via one
of two Means.
1. State of Florida Vendor Portal – (Punch-out Catalog)
2. My Florida Marketplace/ARIBA Punch-out
Any Invoices or Order Support Details Not referencing Staples Account
Number #1060810 (Contract Account) or 1061773 (Off-Contract account) are
not applicable to the Staples Advantage – State of Florida program
Our Government Exclusive Customer Care team should be the 800 Number
that is being called for questions or documents - 888-298-2206
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Order Support for Open A/R Orders
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Orders placed either on our web portal directly or via the MFMP Punch-out which
are billed as Open A/R orders and NOT paid via VISA P-Card, should be receiving or
have access to, the following support items for their records:
1. Emailed Order Confirmation Once Order has been processed
2. Detailed Packing List of Order Shipment included within each delivery
3. Staples Issued INVOICE with full order details and charges for
payment
- MFMP orders are invoiced via Daily XML Invoicing
- Staples Online Portal orders are invoiced via regular mail
4. Delivery Tracking/POD Information
*Please note that all Invoices and Packing Lists issued for State Term
Contract orders will also reference the STC #618-000-11-0 on them
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Sample Order Confirmation Email
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Sample Packing List
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Sample Invoice
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Order Support for P-Card Orders
• Orders purchased via a State Issued P-Card will NOT be issued an actual Invoice from Staples
• Order support information available is the same as Open A/R Orders (exclusive of the Staples Issued Invoicing)
• Order Confirmation Email
• Packing List Enclosed in Shipment
• Access to Delivery/POD Information
• P-Card Purchases will be invoiced directly through your
issuing P-Card company on Their Invoices
31
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How to Get Copies of State Term Contract Support Docs
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• Contact Staples Government Exclusive Customer Care Team:
• Phone: 888-298-2206
• Email: [email protected]
• Fax: 888-222-8618
• Please contact our government team listed above for any copy requests of Packing Lists, Invoices, Tracking Information or POD Requests. These requests can be easily and promptly addressed upon request.
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Reporting Overview
• Your dedicated Staples Account Manager has access to many reporting tools that can be used to help drive savings within your program.
• Account Reviews covering expenditure and other various metrics within the STC offering are conducted Quarterly with DMS to review key metrics and review potential savings opportunities for the Contract as a whole.
• Due to the structure of the STC there are limitations to individual savings opportunities at the end user level however, the next few slides to touch on an important Savings Functionality available to all of our State of Florida end users as an up front way to more consciously shop and browse the STC offering, ―Easy Savings Alternatives‖.
• Detailed information from the Easy Alternatives functionality is accessible as well (included as an attachment), which drills down to the user level to review who is taking advantage of these Alternatives and who is not.
34
Office and Educational Consumables
5. Reporting data from the vendors to the customers to improve
savings for the state
• Our National Big Box Stores can provide similar functions Such as:
– Green or Cheaper alternatives to what is currently selected, e.g. remanufactured toner versus OEM, or a box of two dozens pens, versus a box of one dozens (cheaper by the dozen?).
– Super users views (Office Depot, Staples?)
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Easy Savings Alternatives
• Presents lower cost alternative for user
consideration
• Identifies if a lower cost alternative is available
• Easy to compare original item and
recommended alternative
• Side by side comparison for easy evaluation
• Choice is up to user
• Flexible choice to purchase best value option
without sacrificing quality
• Our Field Marketing team can design, develop,
and deploy custom campaigns specific to
noncompliant end users
• Provide educational tools or refresher trainings
to reinforce this initiative
36
Recommended Alternative Details in StaplesAdvantage.com
How it works:
• When an item has an Easy Savings Alternative, it will appear in a box above the item selected
• A detailed side-by-side comparison of the two items is provided
• Choose either the original item or the Easy Savings Alternative by clicking the appropriate ―Add to Order‖ button
• It’s that easy!
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Product Alternatives - Reporting• Product alternatives are an opportunity to
access a lower-cost substitute when purchasing qualifying products through StaplesAdvantage.com.
• Summary report of master account level data will now be available detailing the use of product alternatives within your organization.
• Summary data and reporting to include:
• Total number of product alternatives offered
• Accepted and declined alternatives (by period, quarter, year)
• Savings achieved (accepted products alternatives)
• Savings lost (declined product alternatives)
• Full DETAILED REPORTING is also available now (see Excel Spreadsheet) to be used within each Agency to target individual’s not utilizing these Targeted Product Alternatives
State of Florida Agencies
YTD Sales $1,038,848.39
YTD Easy Savings Possible $47,566.48
YTD Easy Savings Realized $5,632.49
Missed Savings as % of Sales 4.04%
Savings
Realized
Savings
Lost
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Office Depot
39
Office Depot
40
Office Depot
41
Want to learn more about this contract?
STC Web page: http://dms.MyFlorida.com/stc/office_consumables
Discount of f list summary spreadsheet
Vendor information / vendor contacts
Contract commodity codes
Contract Manager
Mark [email protected](850) 414-6741
42
Contract Resources
Entity Name Contact Person Contact information
State Purchasing
Contract
Manager
Mark Hernandez [email protected]
•Gulf Coast Office
Products
Melanie Brock [email protected]
• Office Depot Lori Miller [email protected]
• Staples Ken Johnson [email protected]
MFMP Buyer Help [email protected]
(866) 352-3776
State Purchasing Customer Service [email protected]
(850) 488-8440
http://dms.MyFlorida.com/stc/office_consumables
43
Team Member E-Mail Phone Number
Contract Manager [email protected] (850) 414-6741
MFMP BuyerHelp [email protected] (866) 352-3776
MFMP F&A
Analyst
[email protected] (850) 294-0739
MFMP Operations
Manager
[email protected] (850) 488-7809
State Purchasing [email protected] (850) 488-8440
