Find out how how Gonzaga transformed spend management with ESM.
Gonzaga University needed three things as it shifted from POs to P-cards:
Ability to steer users to negotiated contracts and approved vendors.
A system to drive up P-card use.
Visibility to ensure oversight of all purchases.
No. 1 Goal Achieved:
Users Steered to Correct Contracts
With ESM, Gonzaga’s online marketplace sends buyers only to its approved vendors and contracts. With every P-card purchase in the system, Gonzaga gets:
The very best price.
The opportunity to earn more rebates.
The ability to renegotiate better contracts.
Big Savings Add up from Little Purchases.
on a Clock
on AA batteries
on vinyl gloves
“The very first transaction starts a snowball of savings.”
No. 2 Goal Achieved:
P-Card Use Booms
Users were quick to start using the intuitive shopping portal, designed to look like other e-commerce platforms.
Little training required
Users quickly adjusted
“We promised an e-commerce experience and that’s really what it’s like. They can order items without much interaction. It’s really intuitive.“
No. 3 Goal Achieved:
Full Visibility Attained
With ESM, Gonzaga no longer worries about freewheeling spend. With it, they can:
Track every purchase
Uncover new ways to save
The Case of B&H Photo
During a conversation with the popular vendor, Lunden mentioned Gonzaga hadn’t bought much equipment from the firm. Their response: “Yes, you have.”
Turns out, Gonzaga was buying B&H-sold equipment from intermediaries, which Lunden could track through ESM.
Now, Gonzaga is no longer going through the middleman.
“By going directly through ESM, the pricing is really good,” he said.
How Gonzaga Got Here
Gonzaga’s board of trustees are on board, especially after Lunden demonstrated the savings and the platform’s reporting capabilities to the appropriate sub-committee.
The intuitive user interface got them to the platform. The right vendors kept them there. And those vendors include Amazon because Lunden can track every purchase on the e-commerce giant through ESM.
The Procurement Team
No longer is the team focused on data entry. Instead, they’re turning into contract managers, focused on strategy.
When I could show them the savings of directing people to the contracts on the website - and that the majority of the contracts include free shipping, I had their full support.
That really drives people to the portal.
They’re no longer going to be the person who is printing out POs. Going forward, their job will be to build relationships with vendors and ensure we have the right contracts and the right pricing, so we can continue to boost spend in our ESM marketplace.