1. Purchasing and Distribution Services Update
FAR Meeting
January 24, 2018
John Clifford, PhD
Director of Purchasing and Distribution Services
Office of Financial Affairs (

2. Office of Financial Affairs
Agenda
Receiving at Central Receiving Warehouse (CRW)
General Stores
Multifunction Device Program
Airgas
Office of Financial Affairs
Purchasing and Distribution Services

3. Purchasing and Distribution Services
Receiving
When required, receiving is one function of the 3-way match process that systematically approves and dispatches payment to the vendor when:
Invoice matches the PO
We acknowledge that we did receive what we ordered
The Invoice, PO and receiving report must match.
Office of Financial Affairs
Purchasing and Distribution Services

4. Purchasing and Distribution Services
Receiving
When an unfamiliar person is “receiving” a package for entry into the Purchasing/Payables system, they are only acknowledging receipt of a box, package, container, or envelope. These employees are unaware if the contents are correct.
Office of Financial Affairs
Purchasing and Distribution Services

5. Office of Financial Affairs
Mary – “Hey Joe, does this look like a ‘down-flow velocity precision do hicky with dual exhaust and mocha- expresso maker’ to you???” Joe - ‘… … !’
Office of Financial Affairs
Purchasing and Distribution Services

6. Purchasing and Distribution Services
Receiving
The end-user department who placed the order has the experience and understanding to properly identify the contents of the package in order to acknowledge if it is correct or incorrect.
Legal issues can arise when there is a discrepancy in the contents (e.g. item or quantity) and we receive without a proper inspection. The vendor can say, “You approved to indicate that what you received matched the PO and invoice. The problem is at your organization.”
Office of Financial Affairs
Purchasing and Distribution Services

7. Purchasing and Distribution Services
Receiving
Effective 2/1/2018, small packages received at the Central Receiving Warehouse (CRW) on main campus or the DT mail room will no longer be “received” into Rowdy Exchange at these locations
Upon delivery to the department, department will have the responsibility to inspect items and enter receiving if the item correctly matches the PO.
Keep in mind, most packages under $5,000 do not require receiving
Office of Financial Affairs
Purchasing and Distribution Services

8. Office of Financial Affairs
RECEIVING QUESTIONS
Office of Financial Affairs

9. Office of Financial Affairs
General Stores
Manager of Distribution Services –
Frank Salinas
Assistant Warehouse Manager –
Ben Moran
Office of Financial Affairs
Purchasing and Distribution Services

10. Purchasing and Distribution Services
General Stores (1of 3)
For the convenience of UTSA offices and labs, over the years General Stores has been stocking a few common items
Storage file boxes
virgin and recycled copy paper
paper towels
alcohol used in research
Office of Financial Affairs
Purchasing and Distribution Services

11. Purchasing and Distribution Services
General Stores
We purchase all items in bulk to obtain all possible discounts
100% of the savings are passed on to end-user departments
General Stores does not increase costs for salaries and overhead associated costs
Office of Financial Affairs
Purchasing and Distribution Services

12. Purchasing and Distribution Services
General Stores
Through competitive sourcing and product availability, we found it is no longer justifiable to maintain the costs associated with this operation
Decision has been to discontinue operations when all stock is depleted
With the exception of alcohol, all items are readily available from several of our preferred vendors on Rowdy Exchange
Office of Financial Affairs
Purchasing and Distribution Services

13. Purchasing and Distribution Services
General Stores
When stock is near depletion, we will contact our preferred suppliers to negotiate best price and service and have that list available for your reference
Office of Financial Affairs
Purchasing and Distribution Services

14. Purchasing and Distribution Services
General Stores
Since alcohol is a control item and can only be purchased under a federal ATF license, PDS will continue with the same ordering process.
Office of Financial Affairs
Purchasing and Distribution Services

15. GENERAL STORES QUESTIONS
Office of Financial Affairs

16. Multi-functional Device Program

17. Phase I – Vendor Reduction
Purchasing conducted a detailed study on nine suppliers and three HUB
Suppliers were numerically scored on
Contract transparency
Maintenance calls
Reputation
Inventory
Price
DOCUmation & Ricoh
Office of Financial Affairs
Purchasing and Distribution Services

18. Phase I – Vendor Reduction
Two suppliers carrying three models were selected
These models will cover 95% of our needs
Additional models to satisfy needs are always available.
DOCUmation & Ricoh
Office of Financial Affairs
Purchasing and Distribution Services

19. Phase II – Data Security
Mr. Kevin Kjosa, UTSA’s OIT Information Security Officer, was very pleased by what DOCUmation and Ricoh offered as services to destroy data
To build on the solid relationships with our two preferred vendors, DOCUmation and Ricoh received certification from OIT Security stating they are in full compliance with UTSA data destruction policies
Certification will only apply to our preferred vendors and will be re-evaluated every year
Office of Financial Affairs
Purchasing and Distribution Services

20. Phase III – Total Flexibility Program
MFD Condition
Currently - Only new can be obtained.
Total Flexibility Program- You have the option of obtaining new, refurbished, or used that addresses your needs and budget.
Acquisition Options
Currently - Purchase, Lease or Loaner.
Total Flexibility Program - No change.
Release of Contract Obligations
Currently – Buy-out of lease only.
Total Flexibility Program - Buy-out of lease or trade in option at fair market value. Can also trade up or down when equipment is available. .
Office of Financial Affairs
Purchasing and Distribution Services

21. Phase III – Total Flexibility Program
 Maintenance
Currently – Leased machines include maintenance.
Total Flexibility Program - Leased machines include maintenance. Refurbished or used can purchase a maintenance from same vendor, possibly save money with a third party provider, or go with time and material.
Accessories
Currently – Pick and choose individually
Total Flexibility Program - Pick and choose individually, or obtain accessory packages at a reduced rate when combined.
Copies
Currently – Copies per month based on monthly agreement.
Total Flexibility Program – Per copy, Copies per month, Department print band, Rollover unused only, or Activity of the previous month is carried over to the next month, being more or less. .
Office of Financial Affairs
Purchasing and Distribution Services

22. Purchasing and Distribution Services
Example Problem
Department A
3 years into a 5 year lease on their only MFD.
The current MFD is not capable of handling all demands.
Options:
Trade in for a new larger MFD (current practice) that
Must buy-out your current contract
Obtain another MFD and keep the current one
Results in purchase of two contracts
Check with vendor for a more capable MFD to exchange
Department B
2 years into a 5 year lease on their only MFD.
No longer has a need for their heavy duty does-it-all MFD. .
Office of Financial Affairs
Purchasing and Distribution Services

23. Purchasing and Distribution Services
Solution
Since both departments are with the same preferred vendor, MFD’s can be exchanged.
Each department picks up the remainder of the lease on their MFD.
No starting over with a new lease. .
Office of Financial Affairs
Purchasing and Distribution Services

24. Options Office of Financial Affairs
MFD Condition Options
New
Refurbished
Used
MFD Acquisition Options
Purchased
Lease
Trial Loaner
Buy-Out / Trade-In Options
Trade-in- Option from a stated sheet per vendor. Value varies by market need determined by vendor.
Buy-out value based on Trade-in-Option sheet.
Maintenance Options
Optional except on lease
Obtain from same vendor
3rd Party (Remi)
Accessory Options
Pick and choose
Economic – Common Packages
Copy Options
Per copy
MFD Print Band
Department Print Band
Roll-over
Backdate changes <4 weeks during contract time period
Bill quarterly on color copies 1 2 3 4 5 6
Office of Financial Affairs
Purchasing and Distribution Services

25. Purchasing and Distribution Services
Benefits to UTSA
No longer locked into a 3 or 5 year lease before you can make changes.
Contact your preferred vendor to see what MFD types are available.
Adaptable to your needs and budget as departmental requirements change.
Maintenance program options.
Cost per page options.
Band with other machines within your department.
Color impressions billed quarterly based upon usage only.
Office of Financial Affairs
Purchasing and Distribution Services

26. Purchasing and Distribution Services
Benefits to UTSA
Departments that do not need brand new, state-of-the-art equipment now have the ability to reduce expenses by selecting used or refurbished devices.
Purchasing has pre-selected standard, common configurations of the machines and accessories that will most efficiently and economically meet most department’s needs. .
Office of Financial Affairs
Purchasing and Distribution Services

27. Purchasing and Distribution Services
Benefits to UTSA
The more MFD’s with DOCUmation and Ricoh, the stronger the program.
Exchanging with another department
More options to choose from
Shorter wait time
Shorter service down time
Extra benefits from your vendor outside of the program .
Office of Financial Affairs
Purchasing and Distribution Services

28. POSSIBLE SAVINGS = $325K/year
$avings to UTSA
Currently spending with 8 known MFD vendors.
In many cases, leases have not expired to allow departments to move to DOCUmation or Ricoh.
UTSA CY 2017 projected spend with MFD’s/Copiers/Printers will exceed $1.6M.
Phase III can save UTSA 20% of total spend if all departments participate in the Total Flexibility Program.
POSSIBLE SAVINGS = $325K/year .
Office of Financial Affairs
Purchasing and Distribution Services

29. Purchasing and Distribution Services
Benefits to Vendor
More business on campus will drive down “cost of doing business” with UTSA making UTSA a preferred customer.
Customized Rowdy Exchange PO form streamlines ordering communication between end-user department and vendor.
With advanced knowledge of end-user demands, possible MFD options and opportunities will be known and allow departments time to plan.
An MFD under or over utilized becomes an opportunity for a downgrade or upgrade. Vendor can contact both parties and mediate the equipment change. .
Office of Financial Affairs
Purchasing and Distribution Services

30. Purchasing and Distribution Services
Benefits to Vendor
Vendor can maintain a list of machines available and MFD types in need.
With detailed statistics on each unit at UTSA, vendor is able to proactively address any future potential issues with equipment service due to over or under use of equipment and make recommendations prior to department experiencing potential issues.
Standardizing the fleet of printers and multifunctional devices on campus allows vendor to minimize total service time required of technicians, ensure they have proper inventory of required parts and supplies, and reduces vendor costs for overall service. .
Office of Financial Affairs
Purchasing and Distribution Services

31. Office of Financial Affairs
MFD QUESTIONS
Office of Financial Affairs

32. Office of Financial Affairs
Cuevas - Airgas
All purchases for Airgas products were coordinated through Cuevas, a local HUB vendor
Our inability to pay cylinder rentals on a timely basis resulted in a financial loss for Cuevas
Declined to renew contract September 1, 2017.
Office of Financial Affairs
Purchasing and Distribution Services

33. Office of Financial Affairs
Airgas
Through discussions with Airgas and Purchasing, UTSA was able to retain Airgas products and services through the main company, Airgas.
Invoicing problems continue.
Office of Financial Affairs
Purchasing and Distribution Services

34. Office of Financial Affairs
Steps Taken - 1
Problem: In the past, all invoices were going to DTS who had a difficult time finding out what department the invoice should go to. Solution: All invoices are now going to the Central Mailroom for a review of address. If correct, they are delivered on the regular mail run. If incorrect, it goes back to Airgas.
Office of Financial Affairs
Purchasing and Distribution Services

35. Office of Financial Affairs
Steps Taken - 2
Problem: Departments were not clear of the procedure for invoice payment. Solution: A procedure was developed and distributed via Purchasing List serve end of September, Copy of the procedure was attached to each of the October rental bills prior to the mailing.
Office of Financial Affairs
Purchasing and Distribution Services

36. Office of Financial Affairs
Results of New Actions
Invoices are getting to the end-user more expeditiously, allowing departments proper time to verify and process for payment.
Past due invoices have reduced.
Airgas database is getting updated based on problem invoices returned to them.
Communication between Airgas and end-users to correct issues is forming a stronger relationship.
Office of Financial Affairs
Purchasing and Distribution Services

37. Office of Financial Affairs
Training Session
Airgas, DTS, and Purchasing will be providing training on account management The session will include:
Introductions and company profile
Products and Services
Create an account on
Update account information
Monitor current and past activity
Creating a “zero” dollar requisition in Rowdy Exchange
On-line ordering and pick-up requests
Delivery and receiving of cylinders
Invoice and payment
Gas
Cylinder rental
Office of Financial Affairs
Purchasing and Distribution Services

38. Office of Financial Affairs
Training Session
February 6, 2018 NPB from 10 AM to 11 AM Register at Use search word Airgas.
Office of Financial Affairs
Purchasing and Distribution Services

39. Office of Financial Affairs
Airgas QUESTIONS
Office of Financial Affairs

40. Your partner for successful solutions
Thank you!
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Office of Financial Affairs