2. Terri Tracey, CAE
Vice President, Technology and Publications
Institute for Supply Management®
Terri is ISM’s Vice President of Technology and Publications. She is
responsible for all ISM’s technology applications, including integration of all
internal and external association management, web and ecommerce systems.
Terri also serves as the editor of ISM’s monthly magazine, Inside Supply
Management ®, of Supply Chain Management. Additionally, she is responsible
for the montand oversees all print and online publications, including editorial,
design and outsourced relationships for the magazine, supplements, e-
newsletters, and the Journal hly Manufacturing and Non-Manufacturing ISM
Report on Business® areas as well as the R. Gene Richter Awards program for
Leadership and Innovation in Supply Management.
3. Saving 36 hours a week that was previously wasted maintaining in-
house inventory and manually shipping supply orders by integrating
their supply management process with warehouse management and
supplier systems.
Giving managers a reality check of just how much they are spending by
stockpiling and over-ordering supplies by exposing end costs to
inventory managers.
Accurately charging supply costs to individual stores based on supply
usage and not just by arbitrary measures like percent of sales volume.
Delivering greater price discounts by creating a supply management
machine that automates the req-to-pay process and allows purchasing
to focus more on negotiating strategic contracts instead of pushing
paper.
4. Scott Jones
Purchasing Manager
The Container Store
With more than decade worth of experience, Scott Jones is responsible for the
day-to-day management and direction of purchasing, as well as expense
planning and analysis, at The Container Store. Since joining in 1989, Scott
has helped The Container Store grow from 7 stores to 47 stores across the
country. Scott holds a Bachelor of Science in Business & Marketing from
Stephen F. Austin University.
5. Mike Morrow
Purchasing Agent
The Container Store
An expert in The Container Store’s use of non-merchandise goods, Mike
Morrow has spend the last 5 years managing competitive price negotiation and
purchase of non-merchandise goods and services consumed at The Container
Store’s corporate office, distribution center, and store locations across the
country. In addition, Mike is responsible for The Container Store’s e-
procurement planning and implementation. Mike holds a Bachelor of Science
from Texas A&M University and a Master of Arts from Southwestern
Theological Seminary.
6. If you could achieve just one of the following, what
would have the biggest impact on your organization?
Get employees to actually use the proper purchasing system and
follow procedures
Eliminate purchasing “paper pushing” (i.e. rekeying data)
More efficiently manage supplier relationships and streamline the
purchase fulfillment process
Real-time visibility into spend as it happens in order to take
immediate action to eliminate wasteful spend
Automate manual tasks so purchasing can spend more time on
strategic activities (i.e. contract negotiations)
Other
7. Welcome to
The Container Store
• The Container Store offers more than 10,000 time
and space-saving storage and organization
solutions divided into 14 different lifestyle
departments such as closet, kitchen, home office
and travel.
– Located in 19 states, in 23 markets and has 47 store
locations across the country.
– Projecting an excess of half a billion in sales for fiscal
2009.
– Has about 4000 GREAT employees across the country.
– Has been named to the top of FORTUNE magazine’s annual
list of “100 Best Companies to Work For” the past ten
years.
Cost Containment at The Container Store 7
8. Non-Merchandise
Supply Management
• Everything a store needs to
conduct business
– Bags
– Aprons
– Office and Cleaning Supplies
• Non-merchandise supply
inventory centrally managed at
Distribution Center
Cost Containment at The Container Store 8
9. End-to-End Process
Challenges
• Receiving Supply Orders
– Costly, manual process
– Stores fill out an excel spreadsheet
– Email to centralized procurement
– All items pulled from inventory and shipped to each store
along with merchandise
• Fulfilling Supply Orders
– 1 truck every 7 to 10 days
– Limited amount of truck space for supplies
– Limited amount of warehouse space to devote to supplies
Cost Containment at The Container Store 9
11. The Options
Doing nothing, Full service
stay with the inventory e-Procurement
status quo companies
Cost Containment at The Container Store 11
12. An End-to-End
Solution
✔ Maintain control &
visibility + Dashboards &
benchmarks
✔ Intuitive, easy-to-use
✔ Does not require a lot of
+ Support & service
training
✔ Scalable, adaptable
✔ Direct shipments from
key vendors
✔ Integrate with warehouse
management
Cost Containment at The Container Store 12
13. What We Achieved
Company Wide Success
Accounting Distribution Center Purchasing
• Eliminating 100% of • Automatically pulling • Writing over 50% fewer
department keying orders into WMS Purchase Orders per
errors • Saving 36 hours a week week
• Regaining wasted time by eliminating manual • Managing inventory
by working with only rekeying levels for 62% fewer
on approved invoices • Freeing up over 150 supply skus
picking locations
• Significantly reducing
invoice processing Store Location
time - 5 minutes for
limitless number of
invoices vs. 1 to 2 • Visibility to supply cost
minutes per invoice • Ease of use – less time
spent ordering supplies
• More time spent with
customer
Cost Containment at The Container Store 13
14. What We Learned
5 Lessons to Promote
Smarter Spending
1. Employee Empowerment.
2. Stop being the middle man.
3. Time really is money!
4. Close, isn’t close enough.
5. Create a supply management machine.
Cost Containment at The Container Store 14
15. Employee Empowerment
Expose employees to how much things cost…
THEN THEN
No price lists, employees Employees not aware of
ordered supplies with no financial impact from stock
visibility to ordering history piling supplies
Cost Containment at The Container Store 15
16. Employee Empowerment
Expose employees to how much things cost…
THEN THEN
No price lists, employees just Employees would stock pile
ordered whatever they felt supplies – even if there
they needed wasn’t an immediate need
…and they’ll critically evaluate need.
NOW NOW
Employees see how much Employees are more cost
each item costs and the total conscious, buying only the
for their entire order necessities
Cost Containment at The Container
16
Store
17. How did we do it?
1. Products listed in the catalog
show actual prices
2. When creating a requisition,
employees can easily see the
total amount they are
spending
3. They can also see the
approval process their order
will go through – if it goes to
the CEO, would you think
twice about submitting?
Cost Containment at The Container Store 17
18. Stop being the
middle man.
Still maintain purchasing visibility and control…
THEN THEN
Purchasing maintained
Every order had to be
inventory and managed
handled by purchasing
fulfillment
Cost Containment at The Container Store 18
19. Stop being the
middle man.
Still maintain purchasing visibility and control…
THEN THEN
Purchasing maintained
Every order had to be inventory and was
handled by purchasing responsible for packing and
shipping supplies
…without wasting time packing and shipping every
supply needed.
NOW NOW
Automatically enforce
approval processes and Suppliers ship directly to
workflows – no need to touch retail locations
every order!
Cost Containment at The Container Store 19
20. How did we do it?
1. Orders are automatically sent to the
appropriate approvers
2. Once approved, they are sent electronically
to suppliers
3. Suppliers fulfill orders and ship directly to
retail locations
4. Retail locations confirm receipt
5. Vendors are paid
Cost Containment at The Container Store 20
21. Time really is money!
Provide store Inventory Coordinator with an easy-to-
use tool…
THEN THEN
Products were hard to find
It took a few hours to place an
and spreadsheets difficult to
order
use
Cost Containment at The Container Store 21
22. Time really is money!
Provide store inventory managers with an easy-to-use
tool…
THEN THEN
Products were hard to find
It took a few hours to place an
and spreadsheets difficult to
order
use
…and they’ll have more time to spend with customers.
NOW NOW
Online catalogs with search
and pictures makes it easy to It takes a few minutes!
find what is needed
Cost Containment at The Container Store 22
23. How did we do it?
1. Intuitive, user friendly UI with
item pictures easily identify
needed supplies
2. System defaults, no need to
worry about which supplier,
which cost center, etc.
3. A few clicks to submit 2
1
3
Cost Containment at The Container Store 23
24. Close, isn’t close
enough.
Get an accurate view into usage and costs…
THEN THEN
Supply costs were
Two systems not able to
determined based on % of
communicate
sales volume
Cost Containment at The Container Store 24
25. Close, isn’t close
enough.
Get an accurate view into usage and costs…
THEN THEN
Supply costs were
Two systems not able to
determined based on % of
communicate
sales volume
…and ensure that the right budgets are charged.
NOW NOW
Bridge of communication Costs are based on actual
built between two systems usage
Cost Containment at The Container Store 25
26. How did we do it?
1. Store supply needs are
managed through a single
platform
2. Each purchase is assigned to
the appropriate cost center
3. Spend reports accurately
reflect how much each store
has used
Cost Containment at The Container Store 26
27. Create a supply
management machine.
Use technology to streamline and automate…
THEN THEN
Costly, time consuming Excel Majority of time spent
based process pushing paper
Cost Containment at The Container Store 27
28. Create a supply
management machine.
Use technology to streamline and automate…
THEN THEN
Costly, time consuming Excel Majority of time spent
based process pushing paper
…and have more time to spend on strategic
activities.
NOW NOW
Automated, online solution Analyzing spend data,
that alerts when action is negotiating better prices,
needed building supplier relationships
Cost Containment at The Container Store 28
29. How did we do it?
1. Deployed a SaaS solution that is
easy to customize and integrate
2. Standardized and automated
workflows
Store Inventory Manager
• Weekly supply orders
• Supply receipt confirmation
3. Clearly defined roles,
responsibilities and accountability Suppliers
• Timely fulfillment
• Direct shipment
Purchasing
• Handle exceptions
• Negotiate savings
Cost Containment at The Container Store 29
30. Summary
You can achieve these kind of results!
• Significantly reducing invoice processing time - 5 minutes for
limitless number of invoices vs. 1 to 2 minutes per invoice
• Saving 36 hours a week by eliminating manual rekeying
• Writing over 50% fewer Purchase Orders per week
• Managing inventory levels for 62% fewer supply skus
Just remember the lessons.
1. Employee empowerment.
2. Stop being the middle man.
3. Time really is money!
4. Close, isn’t close enough.
5. Create a supply management machine.
Cost Containment at The Container Store 30
31. Looking ahead to 2010, what is the biggest
challenge you will need to overcome?
Having to do more with less resources
Achieving aggressive cost cutting goals
Enforcing purchasing policies and processes
Streamlining the procurement process for greater efficiency
Implementing / upgrading the procurement system
Negotiating better supplier prices / contracts
32. Jason Hekl
Vice President of Marketing
Coupa Software
Jason Hekl is responsible for all of Coupa’s marketing initiatives, including
demand generation, messaging, and marketing communications. Prior to
joining Coupa, Jason was with InQuira, where helped grow revenues nearly
ten-fold over a four year period. Jason earned a Master of Business
Administration degree from the Ross School of Business at the University of
Michigan, and a Bachelor of Arts degree in International Relations and
Economics from the University of Delaware.
33. The Question for 2010
How do you save 10% more
with FEWER
resources in ½
as much time?
34. The Question for 2010
How do you save 10% more
with FEWER
resources in ½
as much time?
Assess your suppliers Analyze your spend
35. The Question for 2010
How do you save 10% more
with FEWER
resources in ½
as much time?
Practice smarter spending
36. It’s hard to run with a pebble in
your shoe…
Photo by Prabhu
37. It’s hard to run with a pebble in
your shoe…
1. Ease of Use
2. Effort to
Implement
and Maintain
3. Cost
Photo by Prabhu
38. SaaS and the Power of
One Platform
One Infrastructure
Deploy once. We update. We support. We maintain
One Off
- Risky, resource-intensive implementations
Enterprise
- Complex, long upgrades
Software
- Slow pace of innovation
- Difficult to support
- Costly and painful to maintain (higher TCO)
39. 5 Ways to Achieve Your Goals with
e-Procurement in 2010
1. Spend Under Management
Attract more spend at the top of the
funnel
1
2. Compliance
With purchasing guidelines and
2 negotiated contracts
3. Better Deals
3 Crowd source savings on one-off
purchases
4. Control
4 Prevent wasteful spending before it
happens
5 5. Efficiency
Increase velocity through the funnel,
and save as a result
41. It is.
Provide a requestor
experience that is
faster and easier,
than every
alternative,
and you will be
amazed by what
happens.
42. Addressing the adoption problem with a
compelling requestor experience
SUM 1. Know what’s allowed,
and what’s not.
43. Addressing the adoption problem with a
compelling requestor experience
SUM 1. Know what’s allowed,
and what’s not.
Compliance 2. Guide requestors to
preferred suppliers and
contract pricing, greatly
reducing “maverick” spend
44. Addressing the adoption problem with a
compelling requestor experience
SUM 1. Know what’s allowed,
and what’s not.
Compliance 2. Guide requestors to
preferred suppliers and
contract pricing, greatly
reducing “maverick” spend
Best Pricing 3. And for those ad-hoc
items not covered by
existing contracts, find
deals online
45. A flexible approval workflow engine
that you can change without help
Control
49. Achieve greater efficiencies in the
req to PO process
Cycle Time 23 Hours
Savings 9.5% of
Spend
Avoidance 5%
Self Approval 29%
Efficiency
50. 5 Ways to Achieve Your Goals with
e-Procurement in 2010
1. Spend Under Management
1 Attract more spend at the top of the
funnel
2 2. Compliance
With purchasing guidelines and
negotiated contracts
3 3. Better Deals
Crowd source savings on one-off
purchases
4
4. Control
Prevent wasteful spending before it
happens
5
5. Efficiency
Increase velocity through the funnel,
and save as a result
51. They’re not making hay of pennies.
Spend
Under Mgmt
+ 20%
Savings
9.5%
of Spend
53. Contact Information
Scott Jones
Purchasing Manager
The Container Store
scott@containerstore.com
Mike Morrow
Purchasing Agent
The Container Store
mjmorrow@containerstore.com
Jason Hekl
Vice President, Marketing
Coupa Software
jason.hekl@coupa.com
Thank You for attending this Web Seminar!
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Hinweis der Redaktion
Scott / Mike: We manage non-merchandise supplies for The Container Store’s 47 retail locations. Non-merchandise supplies are all those necessary things that are needed to run the business, such as shopping bags, employee aprons, office supplies, cleaning supplies. All of these supplies are centrally managed in our distribution center. So anytime a retail location needs something for their store they put the order through us and we manage fulfillment for them.