Massey University faced significant challenges with their milk suppliers for its campuses. Key issues they faced were supply delays, lack of visibility of order status, and inconsistent and incorrect invoicing.
This prompted them to look for a provider who can efficiently deliver and manage their milk supply and enable cost savings.
OfficeMax, in partnership with Fonterra, offered to streamline their milk delivery process, online ordering, and consolidated invoicing under the All-of-Government (AoG) Gen III Office Supplies contract. It further reduced their overall costs on the milk supply.
The Challenge
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Unable to track where milk was being delivered to and account against cost centres. They were unhappy with the many invoices they were receiving from the supplier.
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There were delays in deliveries and poor communication.
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They were looking for different avenues that could offer potential cost savings for the University.
"Previously, there were over 40 delivery points, with a number of people changing orders. There was no consistency or sensible way to manage reconciliation because of the lack of oversight between accounts and the volume of people ordering the milk.”
Emily Locke,
Strategic Procurement Specialist, Massey University
The Solution
OfficeMax offered that we could supply them with milk under the AoG Gen III Office Supplies contract in partnership with Fonterra.
We also addressed and provided solutions to all the issues they were facing with their previous supplier, specifically:
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Accurate billing: Invoicing was a big pain point with the previous supplier. We streamlined the billing with the monthly usage report for each drop point ensuring milk supply was accounted correctly.
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Supply tracking: The customer has more visibility of their order status through the Anchor Online portal. They can also easily amend the milk supply requirements.
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Free-on-loan fridges: We provided free-on-loan fridges that could be locked. This helped consolidate delivery points to key locations around the Palmerston North Campus and made it easier to track deliveries.
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Cost savings: We offered delivery and stocking of their fridges built into the AoG pricing, which further reduced the University's costs.
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Simplified contract: Ease in contract management under AoG. They simply had to tick the box under their current AoG Office Supplies Contract with OfficeMax.
"The new solution is managed by the University Services Business Hub, which processes ordering through a portal. There is a standard order for the campus. However, the fridges are checked weekly to ensure the order is correct, minimise wastage, etc. Plus, the fit-for-purpose free-on-loan fridges were an amazing added bonus.”
Emily Locke,
Strategic Procurement Specialist, Massey University
The Results
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Order efficiency: Enabled efficient supply and management of their milk supply without delays or hassles.
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Cost savings: Besides the AoG pricing, the ability to track and amend their milk needs through the app enabled more savings for the University.
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Consolidated invoicing: Consolidated invoicing under AoG pricing eased their payment process, and they now have one less contract to worry about.
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We have successfully implemented the milk supply system in the Palmerston North and Wellington campuses and soon at Auckland’s Albany campus.
"The invoicing is sent to the University Services Business Hub, where it is cross-referenced against the orders made. Having the whole process managed centrally has enabled the visibility we needed.”
Emily Locke,
Strategic Procurement Specialist, Massey University
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