Indiana University—saving money and realizing efficiency through online purchasing

University Business, Feb, 2005

Guy De Stefano, University Director of Purchasing at Indiana University (IU), controls a budget greater than those of some small nations and oversees a physical campus larger than the city of Providence, Rhode Island. More than 1,700 faculty and staff members serving 98,000 students on eight campuses rely on De Stefano to supply office equipment, computers and telecommunications services.

IU purchases more than $300 million worth of goods and services annually, including $60 million in technology tools. De Stefano and team utilize a Web-based, business-to-business (B2B) purchasing system championed in part by IU's technology partner, CDW Government (CDW-G). The company, one of a dozen vendors operating through IU's B2B system, has integrated its electronic catalog with the university's system, providing IU employees with near-instant access to thousands of CDW-G products. In addition, users can take advantage of value-add capabilities like CDW-G's extranet and pre-negotiated pricing.

University stakeholders connect to access the school's online store, which includes electronic catalogs or allows users to access preferred vendors' Web sites. When a user selects products, the requisition is sent electronically through the university's purchasing system, which confirms the request is within budget before routing it to the appropriate department manager for approval. Once approved, the requisition is passed to CDW-G, where it is filled and shipped. This happens in real time without manual processing from De Stefano's department.

"It's much more convenient and efficient," confirms Tammi Duzan, purchasing representative for the university's biology department.

Because IU steers 1,700 qualified purchasers to preferred vendors, the school can negotiate better prices for volume purchases and wide-scale system refresh projects. Also, the system helps De Stefano identify unapproved purchases by creating automated parameters. "I can say this campus can spend $25,000 per order for a particular vendor; and another campus can't spend anything on that vendor," he explains.

The system can also handle more than one purchase order at a time, and the purchasing department does not have to manage paper catalogs. "In the past, I'd have to send new contracts and sales representatives from department to department," De Stefano says. "Now, a few clicks and within the hour the order is being shipped."

Moreover, the system reduces errors, enabling vendors to save on labor and shipping costs because they can pick, pack and ship orders without having to correct data from paper-and-ink purchase orders. Additionally, the system complements the university's current electronic cash-handling system and accommodates electronic invoice matching--allowing vendors to discontinue monthly paper bill cycles.

Going forward, IU plans to expand the B2B catalog to allow departments to contract part-time personnel services, including technical services offered by CDW-G, onsite. This capability will free internal IT staff to focus on mission-critical activities.

De Stefano is confident that the program will continue to expand and is pleased with his partnership with CDW-G. "CDW-G really has been great," De Stefano says. "My team enjoys working with a company that sees the future as we do."

For more information contact CDW-G at 800.767.4239 or visit CDWG.com