bookstore team · accounts receivable end of year tally 4) ... datatel budget reports end of term...

AQIP

Bookstore Team

Fall 2009

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Team members and sponsors ……………………………………………….……………………………………………… 3

Project Statement ………………..………………………………………………………………………………………………. 4

Operational Definitions .……………………………………………………………………………………………………….. 5

Background of Project Development …………………………………………………………………………………….. 8

Defining the current process …………………………………………………………………………………………………. 9

Flow charts of the current process………………………………………………….………………………………. 12

Analyze the current situation ………………………………………………………………………………………………… 17

Price comparison chart for MBS vs. Alpine ………………………………………………………………..…… 19

Line Graph‐ profit over time………………………………………………………………………….………………… 20

Analyze cause for current outcomes ……………………………………………………………………………………….. 22

Force Field Analysis ………………………………………………………………………………….……..…………….. 22

Fish‐bone diagram ……………………………………………………………………………………………..………….. 25

Improvement Theory & Implementation Plan ………………………………………………………………………… 27

Cost to Implement Improvement Theory ……………………………………………………………………….. 28

Financial Reports ……………………………………………………………………………………………………………. 29

Anticipated results ………………………………………………………………………………………………..……….. 32

Forecast ………………………………………………………………………………………………………………………….. 33

Customer Impact ………………..………………………………………………………………………………………….. 34

CLT Feed Back Form ………………..……………………………………………………………………………………… 35

Gantt Chart ……………………………………………………………………………………………………………………. 36

Alignment with AQIP Criteria and Engrafting into the College System .………………………….......... 37

Studying Results‐the future Plan ………………………………..…………………………………………………………. 38

Next AQIP Team ……………………………………………………………………………………………………………………. 39

Thank You ……………………………………………………………………………………………………………………………. 40

Appendix I – Category Sales.………………………………………………………………………………………………….. 41

Appendix II – Student Survey ..………………………………………………………………………………………………. 46

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TEAM MEMBERS

Annabelle Butler (Team Leader) ‐ Bookstore Manager, Alpine Campus

Paige Lillie (Scribe) ‐ Bookstore Manager, Spring Valley Center

Mary Lehrman – Budget/Finance Analyst

Linda Shoup ‐ Accounts Manager, West Garfield Campus

TEAM SPONSORS

Steve Boyd ‐ Purchasing Manager

Linda English ‐ Chief Financial Officer

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To maximize the improvement of college wide bookstore financial performance as measured by net bookstore income, specifically by implementing good financial

reporting and sound purchasing practices.

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Auxiliary Fund: Provides services such as bookstores, residence halls, food service, and non‐credit courses to students and staff. Activities in this fund operate on a break‐even basis; revenues being generated from the sale of inventory or services equal or exceed expenses. Under Amendment I this fund meets the criteria of an enterprise fund. Balance Sheet A statement that compares assets, liabilities, and owners equity in order to indicate the financial condition of an organization at a specific point in time. Buyback Service provided to students where they can sell back their textbooks after they are done using them. Various buybacks are done throughout the semester. This is outsourced to a wholesale company to insure that all books that are current can be bought from students even if the bookstore does not need them. Buying Group An organization that allows retailers to join together so that they increase their buying power thus lowering the cost of resale goods to everyone involved. CAMEX The annual Campus Market Expo, which is an educational event and trade show solely for school bookstores (K‐college). The educational sessions help improve knowledge about trends in the industry. The trade show provides a one‐stop buying experience with show specials that save the COGS for the bookstores. More than 1,110 college stores and more than 700 exhibiting companies attend the event in a given year. Cash Drawer Summary Report Report that gives detailed information about sales for a specified length of time including sales by category, total by transaction type, non taxable sales, and gross sales. Also facilitates the closing and reconciling of the cash drawer prior to taking the money to the bank. Central Services Bookstore Store that is run by the Purchasing Department of the college to help the smaller sites order logo merchandise. Also has a retail store that sells to the general public and faculty and staff. Commuter Site Bookstore Non‐residential campus sites where limited merchandise is available for sale. Students at commuter sites order their books directly through MBS Direct, which results in a monetary rebate to the site.

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Cost of Goods Sold (COGS) The total cost of goods sold for resale, including freight. The calculation of COGS is Cost of Goods Sold = Beginning Inventory + Purchases ‐ Ending Inventory. Cybercafé The bookstore business model that is currently utilized at the Leadville Campus. The bookstore also serves as a café where customers can sit and enjoy free wireless network while being able to purchase specialty drinks and food. End Column Pricing When purchasing merchandise from a wholesale company, the end column price is the most steeply discounted price for purchasing the maximum quantity. Gross Profit on Sales The difference between sales and the cost of the products, before deducting overhead costs such as payroll, travel, etc. To calculate gross profit, you must subtract Cost of Goods Sold from Net Sales. KayCee Software Point of Sale (POS) software used by residential bookstores and the Central Services bookstore to manage the cash register, inventory levels, and book adoption process. Inventory Valuation Report Report that gives the current value of inventory in latest cost, average cost, or retail worth. It is broken down by sales categories. List Price Suggested retail price of a product. Margin The amount of gross profit made when an item is sold. Expressed as a formula, Margin % = (Retail Price ‐ Cost) / Retail Price. For example, if a shirt is acquired for $2 and sells for $3, it has a margin of 33.3%. Markup A percentage added to the cost to get the retail selling price. For example, if a shirt is acquired for $2 and sells for $3, it has a markup of 50%. MBS Direct A branch of MBS Textbook Exchange, Inc. that provides a virtual bookstore to students. Currently, CMC’s commuter site and distance learning students order their books directly from MBS Direct. Net Price Wholesale price of an item (what we pay for it). Profit and Loss Statement A business report that shows net income as the difference between revenue and expenses. When revenue exceeds expenses, a profit is shown. When expenses exceed revenue, a loss is shown. The report is also known as an Income Statement.

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NACS (National Association of College Stores) A professional trade association that serves higher education retailers. They conduct research, provide education, advocate on behalf of their members, and help them foster strategic partnerships so that retailers can better serve their customers. New Textbooks Brand new books purchased from the publisher at their full cost or from a wholesale company at a slight discount off the publisher cost. Typically 25%‐50% more expensive than used textbooks. Residential Bookstore Bookstore that is operated at all three residential campuses. The bookstore carries everything from textbooks, to school supplies, to logo merchandise, to over‐the‐counter medications, to food and drinks. Sodexo A world leader in Food and Facilities Management services. This company manages the food services at all three residential campuses and the Cybercafé at the Leadville campus. Sundries Miscellaneous items sold in the bookstore. Does not include textbooks or food and drinks. Used Textbooks Textbooks that have already been sold at least once. They were purchased either directly from students at buy‐back or from a wholesale company. Typically 25%‐50% less than new textbooks.

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When the Bookstore Team originally met we discussed various ideas to be analyzed for process improvement. We used a cause and effect relations diagram to determine how the various factors in bookstore profitability relate to each other in an effort to determine our specific “5 Acres” of attention. The diagram is below:

Improve Bookstore Profitibility

Non‐Residential Sites(2:2)

Textbooks(0:5)

Financial Reporting(5:0)

Purchasing Practices(4:1)

Other Revenues(1:4)

Floor Space(1:3)

As a result of this diagram, we discovered the two largest causes to focus our attention on are Financial Reporting and Purchasing Practices. Therefore, each section of this report will be divided into two separate sub‐sections in order to enhance the focus and attention on each specific “cause.”

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Financial Reporting The current process for financial reporting varies from campus to campus. There are four common reports that are currently produced at all campus stores; however, they are run in different intervals:

1) CREN sessions, cash drawers 2) End of Year Inventory totals 3) Accounts receivable end of year tally 4) Summary Budget Report

Monthly Reports: Timberline Alpine Spring Valley Cash Drawer Summary Report / CREN‐ Monthly

Cash Drawer Summary Report / CREN‐ Daily

Cash Drawer Summary Report / CREN‐Weekly

Monthly Cash drawer summary

Monthly cash drawer summary report

Accounts Receivable Summary

Profit and Loss Statement Staff account statements Budget Report Interdepartmental charges Forecasting report Accounts Receivable statement Semester Reports Timberline Alpine Spring Valley Weekly financial report during rush

Semester Cash drawer summary report

Datatel Budget Reports

End of term financial report Accounts Receivable Statement Year End Reports Timberline Alpine Spring Valley Inventory Valuation Report

Inventory Valuation Report

Inventory Valuation Report

Accounts Receivable valuation report



Revenue & Expense

Datatel Budget Reports Datatel Budget Reports

Profit & Loss Statement Profit & Loss Statement

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Cost of Goods Sold

End of Year cash summary report

Fiscal Year Comparison

The District Office Store does not run any additional reports. They run their CREN sessions monthly. The Spring Valley Center currently does not run interdepartmental charges through its KayCee Software. Rather, they charge the departments directly in Datatel via a Journal Entry against the account numbers they have provided. During the initial switch over to Datatel, there were some questions regarding whether the bookstores were double charging with IC’s that ran through KayCee. However, the result of not running IC’s through KayCee is that the inventory system is not kept up‐to‐date as a result. At the Alpine campus they run IC’s through KayCee, and then do a Journal Entry in Datatel, followed by a balanced adjustment in the KayCee system, a very time intensive process. To combat both sides of the issue, our group determined that it would be best to change the policy so that anyone making department purchases would have to do so with a P‐Card, as Timberline is currently doing. Departments would be able to leave a card number on file, in the event that a certain employee within a given department did not have a P‐Card, they would still be able to make a purchase for their department. Purchase Practices There are two primary categories with regards to the different practices that the bookstores use when purchasing:

‐Textbook purchasing ‐All other merchandise purchasing

After the bookstore summit that occurred from December 2008‐July 2009, rules and parameters for textbook ordering were adopted and integrated with Instructional Services. For all three residential campuses textbook orders are due at least thirty days before the buy‐back at the end of each semester, and no changes are allowed to be made after this date without Instructional Services, (IS), being liable for costs incurred by the bookstore. After the bookstore receives the book orders they check to verify the information given by IS is correct and is the current edition of the textbook needed. They then adopt the textbook into KayCee, they create a list of books that they want to buy‐back from students at the end of the semester, and a list of books that they will need to buy from wholesale companies and publishers. Next, they send the list to wholesalers that will look for the books needed in used condition. After the end of semester buy‐back and the wholesalers are done looking for used books, the bookstores place orders with publishers to ensure that they will have enough books on hand to satisfy the class. They pay attention to enrollment throughout this process so that they know how many books they will need for each class. After the semester begins and book sales are exhausted, the bookstores send back unsold books to the wholesalers and publishers. While they usually get most or all of their money back for the book itself, there is still a large amount of freight cost involved in returning books. At Spring Valley and Alpine, the majority of retail items available for sale are purchased once per year at the National Association of College Stores convention, CAMEX. Specifically, approximately 80% of all

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items sold in the Spring Valley Bookstore are purchased during this buying show. The show is a place to see new items and vendors that we would not normally see, since we are too “remote” for many vendor visits. It also allows us to take advantage of free freight specials and receive show discounts on items ordered at the show. Furthermore, it allows us to order items together (Alpine & SVC) that have minimum quantity requirements that we would not be able to meet separately. All this merchandise is ordered in late February or March and arrives in our stores in July and August, after the End of Year close out of inventory. Merchandise is checked into our KayCee Software, priced with a 40% margin and then displayed in the bookstore. The remaining merchandise purchased is done on an ongoing as needed basis with certain established vendors. These items typically include photo supplies, school supplies, and food and beverage items. Most of our purchases are made with established vendor accounts where we pay the invoice when it is received. We purchase with and use a College P‐Card when necessary, usually with first time account orders or one time only purchases. Inventory information is stored in KayCee. Currently, at the end of each fiscal year the bookstores print out a report that itemizes every item in the bookstore and then the employees of the bookstore count each item and make changes to the database by hand. This manual process affects the time needed to conduct inventory thus closing the doors of the bookstore for a week and impairing their ability to make sales during this time. It also affects the accuracy of the inventory as human‐error can make writing the incorrect number for a given item an easy mistake. The following flow charts give a visual of each of the purchasing processes, at each of the Residential Bookstores.

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Book orders received in Bookstore at least 30 days before buy‐back

Adopt book orders in to KayCee. Create Buy‐back list and Want list

Purchase any quantities of books that were not satisfied from buy‐back

Sell Books

Send back a minimal number of books to wholesalers and/or publishers for a credit

Stop

Reference enrollment numbers to ensure correct quantities of books

are ordered.

Conduct Buy‐back

Search for books at wholesalers

Start

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Receive Datatel Spreadsheet

Check & Verify ISBN’s

Adopt book into KayCee

Create Want list

Send Want List to Wholesalers

Order textbooks from publishers

Locate missing textbook orders

Pull and charge advance textbook orders

Sell Textbooks

Return textbooks not required for next semester

Inventory Textbooks

Conduct Buy‐back

Add buy‐back to inventory

Following up on orders

On going

Stop

Start

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Inventory Set-up for Fall Semester

Cyber Café/Bookstore closed for summer session

Order Fall Textbooks First Week of June

Census Date • Books not sold, inventoried • Books determined to be kept or returned

Spring textbooks ordered 1st week of October

Fall Semester Opening

Weekly Financial Reports (1st – 3rd weeks ’08 –‘09 to date)

End of Term Financial Report (’08 –‘09 to date)

Book Buy Back (last week of term)

Closed for Winter Break

Inventory Set-up for Spring

Closed for Summer Session

Spring Semester Opening

Census Date • Books not sold, inventoried • Books determined to be kept or returned Book Buy Back (last week of

term)

Final Inventory Report Provide MBS with list of summer

textbooks Yearly Profit/Loss Statement

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Start

A

A

A

Search for vendor that can fulfill need

effective Not Cost

Stop

A

Purchase Product that will fulfill need

Look for a different way to meet the

need.

Conduct cost/need analysis

Purchase Product

Conduct cost/need analysis

Not cost effective

Contact Vendor to see if they can meet

the need

Cannot meet

Identify need that is not being

met. Cannot find vender

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Start

Place Orders

80% of all sundries ordered at CAMEX

CAMEX orders arrive

Order remaining merchandise from specific vendors

Unpack and enter inventory into KayCee

Set selling price and display merchandise

Re‐order as necessary

Pay and Process Invoices

Conduct Physical Inventory

Stop

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Financial Reporting The primary goals of the CMC bookstores had been to breakeven and be a service to their students. Up until 2001‐2002, the bookstores were able to maintain themselves and generate a small profit that went to help the college purchase much needed things. Since then, the higher education bookstore industry’s environment has changed. The growth of the Internet and websites that cater to higher education students for textbooks has had a huge impact on bookstore sales and thus profits. A graph displaying the profit trends at the Residential Bookstores and Central Services Bookstore during this time period, as well as a similar graph displaying the profit trends at the Commuter Bookstores is at the end of this section. Purchasing Practices Beginning in November 2008, a team was formed to discuss the future of the CMC bookstores because of losses incurred by the bookstores since 2001‐2002. It has since been determined that the bookstores need to shift their focus from trying to break even to becoming profitable. The team talked about leasing out all of the bookstores including distance learning and commuter sites to an outside company such as, Follett or Barnes and Noble. The team decided that CMC did not want to go in this direction because of the following reasons:

‐CMC is right on the edge of an acceptable size for this solution;

‐this solution represents a radical change from CMC’s current situation;

‐the “Business First” approach does not fit as well with the ‘Learning College’ philosophy or the first choice for leadership portion of CMC’s Strategic Plan;

‐minimal and uncertain profit potential exists with Follett, and internal management of the bookstores may provide more financial upside;

‐current employees would be replaced by the outsourced company and thus no longer be employees of the college;

‐outsourcing would sacrifice the individuality of the bookstores and may not cater to the target markets of each location’s students; and

‐services that are currently offered at the bookstore may not be possible if they were outsourced.

As a result of these many reasons, the team decided that the bookstores will focus the next twenty‐four months on improving financial performance internally. Hence, the forming of this AQIP team. After meeting with each campus’s deans of instruction, the Bookstore Summit Team also came up with the following policies that are now being used in the bookstores.

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Common Book Order Due Date A common book order due date was established that is supported by staff as well as the faculty at all campuses. This additional time has allowed the bookstores to increase the number of used books purchased, hence saving the students money and increasing sales. Specifically, the Alpine Campus sold $20,000 more used books for Fall 2009 than they did for Fall 2008. Meanwhile, Spring Valley was also able to purchase 100 more used textbooks than in the previous fall semester. Furthermore, there is now greater accountability for departments who make changes to textbook orders after the deadline. This helps to encourage faculty to use and require the textbook that they order and have the students buy their books from the bookstore instead of online. Since departments have been responsible for any and all costs associated with changing a book order after the deadline, it has resulted in < 1% of order changes at the Alpine Campus, and Spring Valley had no changes to book orders for the first time in the past two decades. Non‐returnable Vendors and Trade Books In the past, some faculty have requested books that are only available through vendors with a no‐return policy. Furthermore, they used trade books that were available at numerous other businesses, at the campus library, or were easily shared. For example, novels required for a literature class, or scripts for a theater class. By placing books that are not returnable and trade books off limits for textbook orders, the bookstores have already seen an improvement in their inventory, since they no longer get stuck with books that are obsolete. Other Suggestions Great emphasis is being place on receiving realistic ordering numbers from faculty based on previous year’s enrollments so that the bookstore has a better idea of how many books they are going to need. Also, campuses are considering if custom manuals are a viable way to move to in the future. The advantages of these custom manuals are that they would be less expensive for the students, and the students will not be able to purchase the book from an outside source. Additionally, the Bookstore Summit suggested that faculty use the same book for a given class, even if they are offered by different instructors. Similarly, they suggested that full‐time faculty select the books for use by the adjunct faculty. Distance Learning and Commuter Sites Textbooks On June 20, 2005 MBS Direct was awarded RFP 326‐05 to handle CMC’s Distance Learning and Commuter Site textbooks. MBS Direct has been a vendor of CMC since October 24, 2000. CMC also entered into a contact with MBS Direct to provide books for our virtual campus. In that time the college has logged a relatively high number of complaints about both service and pricing. The market for these services has evolved since CMC entered into this contract and as a result we believe the timing is good to launch a current solicitation. After talking to the Purchasing Department they have concurred that going out for a new RFP is the right direction to go in. The following chart displays how the prices at MBS Direct compare with the prices in our Residential Bookstores.

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Book ISBN MBS CMC‐ Alpine Cost difference

New Used New Used New Used

Nutrition 978049565635 $152 N/A $154.25 N/A ‐$2.25 0

World of Art 9780132221861 $124.25 N/A $111.31 $83.25 $12.94 $41.00

Nutrition 9780495240125 $152.00 N/A $141.25 N/A $10.75 $0.00

PHYSICS FOR SCIENTISTS & ENGINEERS VI 9780132273586 $124.50 $93.25 $111.42 $79.64 $13.08 $13.61

Laboratory Manual in Physical Geology 978013600771 $81.75 N/A $82.28 $54.75 ‐$0.53 $27.00

Accounting: Tools for Business 9780470377857 $198.75 $149.00 $202.50 $133.00 ‐$3.75 $16.00

Intro to Physical Anthropology 9780495187790 $122.75 $92.00 $132.50 N/A ‐$9.75 ‐$40.50

Art Across Time 9780072965254 $140.00 $105.00 $135.35 $93.75 $4.65 $11.25

Essentials of Pathophysiology 9780781770874 $95.00 $71.25 $78.95 $67.75 $16.05 $3.50

Managing Housekeeping Operations 9780866123365 $81.50 N/A $87.25 N/A ‐$5.75 $0.00

Managing Front Office Operations 9780866123389 $81.50 N/A $87.25 N/A ‐$5.75 $0.00

Humanistic Tradition books 1 and 2 Various $72.00 $54.00 $70.00 $47.84 $2.00 $6.16

Roots of Wisdom 9780495094854 $131.75 $98.75 $113.51 $79.00 $18.24 $19.75

Psychology 9781429201438 $122.75 N/A $131.42 $100.00 ‐$8.67 $22.75

Developing Person Through Lift Span 9780716760726 $140.00 $73.14 N/A $94.00 $46.00 ‐$20.86

Average Price new/used and cost difference $121.37 $92.05 $117.09 $83.30 $5.82 $6.64

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(20,000.00)

(15,000.00)

(10,000.00)

(5,000.00)

‐

5,000.00

10,000.00

15,000.00

20,000.00

Chaffee

Glenwood

Carbondale

Vail‐Eagle

Breckenridge

Dillon

Aspen

West Garfield

Bookstore Profit & (Loss)Commuter Sites (2000‐2009)

Year2000/2001

Year2001/2002

Year2002/2003

Year2003/2004

Year2004/2005

Year2005/2006

Year2006/2007

Year2007/2008

Year2008/2009

Central Stores begins

selling merchandise

Begin Outsourcing

DL and Commuters to MBS

Collegebegins to implement use of Datatel

CentralStores started a website store

Internet Sales

competition strengthens

Change in book

adoption process

(120,000.00)

(100,000.00)

(80,000.00)

(60,000.00)

(40,000.00)

(20,000.00)

‐

20,000.00

40,000.00

60,000.00

80,000.00

Leadville

Steamboat

Spring Valley

Central Services

Bookstore Profit & (Loss)Residential Sites and Central Services (2000‐2009)

Year2000/2001

Year2001/2002

Year2002/2003

Year2003/2004

Year2004/2005

Year2005/2006

Year2006/2007

Year2007/2008

Year2008/2009

Central Stores begins selling merchandise

Begin Outsourcing

DL and Commuters to MBS

Collegebegins to implement use of Datatel

CentralStores started a website store

Internet Sales competition strengthens

Change in book

adoption process

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The following Force Field Analysis table lists a variety of driving forces and restraining forces that play into the desired outcome of the bookstores becoming profitable. Many of the restraining forces have impacted the bookstores over the last decade and can be directly related to the current outcomes. As we focus more on the driving forces, we will be able to move toward our implementation plan.

FORCE FIELD ANALYSIS

Desired Change: Make the Bookstores Profitable

Driving Forces Restraining Forces

Competition Competition/Pricing External

Leadership Support/Desire Competition/Pricing Internal

Student Need/Demand Small Shops/Critical Mass

Internet Student Computer Skills (Internet Savvy)

Cultural Change – 1 College/Collaboration Resistance to Change

Others Colleges can do it – Models Available Faculty Cooperation w/Book ordering

Informer Time & Staffing

Textbook Prices

Inventory System

Software

Training

First and foremost, an increase in competition has entered the scene during the past decade. In 2001, the residential campus bookstores first experienced internal competition. Prior to this time, they were meeting the bookstore needs of most of the college, even taking care of many of the commuter sites. However, in 2001 Central Services began selling bookstore items from the District Office to both the general public and to the commuter sites. Then, the following year, the commuter sites and Distance

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Learning began using MBS to order textbooks for their students. During a similar timeframe, the World Wide Web began growing exponentially. Although online shopping was invented in 1979, Amazon.com did not post their first yearly profit until 2003. Within a couple of years, the CMC Bookstores began noticing a huge hit to their sales as students were becoming more and more internet savvy. Rather than being limited to the bookstore for their textbook needs, they now were able to search an Internet that could sell them that same textbook from any seller in the world. Of course increased supply resulted in lower price options for these students. Within a matter of a few years, a small town bookstore entered a worldwide market. As both internal and external competition increased, textbook prices continued to soar. In fact, the NACS Foundation used data from the NACS' College Store Industry Financial Report, 2008 edition to help explain these ever increasing costs, as is seen below (www.nacs.org). With so many demands on a given dollar of a new textbook's price, coupled with a limited amount of publishers, it is not surprising that many books run in the $200 and up price range.

On another front, the bookstores battled internal resistance from their own campuses, as the instructional side seemed unwilling to make some changes that would keep the bookstores on track. They tried getting instructors to place their book orders on time, they encouraged faculty teaching the same class to use the same book, and so forth, but little response was received. It was not until the Bookstore Summit brought all the necessary parties together that they were able to garner the buy‐in from their campus that was necessary to make these changes. Now that top management has required such changes, the response has improved greatly.

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A cultural change within CMC resulted in an evolution of the auxiliary fund. By CMC definition, an auxiliary fund is supposed to “operate on a break‐even basis; revenues being generated from the sale of inventory or services equal or exceed expenses.” However, with a decentralized approach from Central Services, the campuses interpreted this to mean that as long as all of their auxiliary funds as a whole have revenues equaling or exceeding expenses, then they did not need to worry about the specific departments within their auxiliary fund that were not meeting this requirement. This led to a handful of cost centers, in addition to the bookstores, with extremely large cumulative deficits. It seems that time froze as a result of this leniency. Campuses had been saying for years that the bookstores “haven’t made a profit in the past three to four years.” However, in reality what seemed “rare” was actually close to a decade worth of not breaking even. In recent years, the college leadership has shifted in favor of all cost centers breaking even within a campus, even if it requires an actual transfer from a more profitable cost center. This one‐college collaborative approach is a major reason that so much attention has suddenly been paid to the bookstores and reversing this negative profit trend. Another result of the decentralized approach was that the bookstores were each running their financial reports differently, and were using different pricing standards. The only standard reports that were used were the yearly inventory valuation, yearly accounts receivable valuation, and Cash Receipt (CREN) sessions. However, even the CREN sessions were done at different intervals at each campus. Furthermore, the sales categories were lumped all into one line, making it hard to decipher the amount of gross profit in each area of sales. The majority of training for new bookstore managers centered on the way things had been done in the past, rather than focusing on what needed to be done in the future. There was never a standard operating plan for the bookstores and the financial reporting was lacking as a result. Additionally, each of the campuses was left to price their goods however they wished. One of the downfalls of switching to Datatel in 2004 was that the system was not designed for a retail report system. While the bookstores began using the KayCee Point of Sales software in 1997, they experienced difficulty in 2004 and beyond because the two systems did not work well together. Specifically, all of the purchasing is done through Datatel, and all of the sales are done through KayCee. As a result, the bookstores have had problems evaluating and measuring their financial performance. Despite all of these restraining forces, there is still strong evidence that the students value the services the bookstores provide. As a part of the Bookstore Summit, a student survey was conducted that confirmed this belief. The survey and the results can be found in Appendix II. The bottom line was that most students choose to purchase their textbooks in the bookstore because they like the convenience and accuracy of the service they receive. They also enjoy the other items for sale, especially given the “up‐on‐a‐hill” locations of each of our residential campuses. With this in mind, the bookstores are determined to overcome the restraining forces and focus on the driving forces in order to achieve a level of profitability in the bookstores that is sustainable. The following fish diagrams show what environment, methods, people, and equipment need to be in place in order for this to happen:

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Financial Reporting:

Process/MethodsEnvironment

EquipmentPeople

Define standards

Provide access to Excel and QI Macros

Ensure access to Datatel, Informer & Kaycee

Purchase Inventory guns

Optimize use of limited staf f

Revise expectations for profit

Provide necessary training for staf f

Manage excessive responsibilties

Consistent use of f inancial data amongst

bookstores

Desired Results:

Optimize use of Datatel, Informer, Excel & Kaycee

Process/MethodsEnvironment

EquipmentPeople

Join buying group

Share orders to take advantage of price breaks and split shipping

Create more time for implementing methods

Utilize computer & internet ef fectively

Don't be afraid to use the phone

Garner cooperation f rom faculty on order time and non-returnables

Collaborate with Distance Learning and Commuter sites

Use the Purchasing Department as a resource

Consistent use of Best Purchasing Practices

Desired Results:Leverage book buyback and Online vendor

Leverage rep and brand loyalty

Keep tabs on what Internet has to offer

Purchasing Practices:

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Financial Reporting

The first part of our improvement theory is to institute a college wide financial reporting system. This will include an expectation of closing out the cash drawer at least once a week and completing a CREN report for every deposit. New account lines have been created and NARD codes added to enable the Bookstore Managers to record their sales in greater detail within Datatel. A standard CREN session spreadsheet was created to incorporate these new codes and simplify the process, so that all the stores can get on the same track. In an effort to help the accounting department keep the bookstores deposits separate from their campus’s deposits, they should have their own bank accounts set up. Additionally, an Excel profit and loss statement has been created that will easily take data from Informer, and display it in an easy‐to‐read financial statement. The statement will also include gross profit analysis, as well as balance sheet information. This report will be run monthly and will keep everyone affected by the bookstores’ performance updated. Examples of the financial statements can be found at the end of this section.

The bookstores will also begin generating a quarterly inventory valuation report, which has never been done in the past. Although the physical inventory will still only be done once a year, this estimate report will provide more up‐to‐date information for the gross profit analysis, as well as provide more timely information on inventory levels. The stores will continue running their yearly report on accounts receivable; however, the financial statement mentioned above will provide a snapshot of the accounts receivable level at the time the report is run. With the use of these reports it will give the bookstores and their campuses an in‐depth look at how they are performing year round and allow the stores to make needed changes to their spending, sales, and expenses. This improvement will not cost the college any money but will require the bookstore managers to spend time training on how to run these reports.

Purchasing Practices

As part of our improvement theory, the bookstores will change their margins, so that all stores will be using the same margins for the same categories of their business. Specifically, sundries and food and drink will remain at a 40% margin. However, new textbooks will be sold at a 28.5% margin, and used textbooks will be sold at a 35% margin. This will be a decrease in the current margins for new textbooks, and an increase in the current margins for used textbooks. The standardized margins will allow the stores to increase their profit and forecasting effectiveness. From the outcomes of the Bookstore Summit, all stores should be able to accumulate more used books and can therefore conform to the industry standards for setting the selling price from margins instead of mark‐up. Increasing the margin

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on used books and in some cases decreasing the margin on new books should allow the bookstores to increase their profits.

It would also be best for all stores to offer the same discounts to the college so that they are not competing against each other. To give all an even chance we propose there no longer be a staff and faculty discount for retail items, (items that are not special order), for personal or college use. There will however be a 20% margin over cost on all special order sales that are internal for the college.

As a team it was talked about doing more group‐buying, all stores creating one large order, to decrease the cost of the goods, but we found that higher minimum orders did not decrease our costs significantly. It was decided that joining Connect2One, the largest buying group in the bookstore industry, would allow the bookstores to cater to their unique target market which is different at all of the bookstores and take advantage of Conect2One pricing specials. The stores will also make an effort to buy as a group when the items are things that will sell at different campuses and can be split shipped.

Since the current inventory system is so time intensive and allows so much room for error, we suggest that each of the Residential Bookstores, as well as the Central Services Bookstore have access to inventory guns. The inventory guns have to be KayCee compatible, and run approximately $400 each. This equipment would cut down on the time taken to accomplish the counting and there will be less errors as the employee will scan the item and then insert the correct count directly into the inventory gun. Employees will then load the information from the inventory gun to the computer and the inventory gun will make the necessary changes to the inventory automatically. Another improvement would be that all of the bookstores will conduct inventory in the same way. The bookstores will use the zero count. This will allow a streamline process at all the bookstores.

Issuing a new RFP for distance learning and the commuter sites will allow us to take better care of our students and may provide some incentives for our bookstores as well.

Changing the policy for Interdepartmental Charges from doing Journal Entries in Datatel to requiring the use of P‐Cards, will enable accuracy in the inventory levels of the bookstores and save the bookstore staff much needed time.

We are requesting the following one‐time costs from the AQIP Teams Reserve account. If the Connect2One Membership proves valuable during the first year trial period, then the Central Services Purchasing Department would cover the cost in future years in order to continue this membership.

Costs Expected Implementing the Improvement Theory

4 Inventory Guns (one for each location)………………………………………………….$1,600.00

Connect2One Membership (as a college)………………………………………………….…$850.00

Total Cost requested ………………………………………………………………………………$2,450.00

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Totals YTD: July August September October November December January February March April May JuneSales $362,725.33 $2,702.77 $155,083.55 $26,957.50 $9,034.29 $4,839.07 $7,440.60 $117,262.00 $10,162.75 $5,625.29 $8,679.60 $4,247.48 $10,690.43

Personnel ($105,637.47) ($5,788.60) ($7,503.04) ($7,171.48) ($8,098.01) ($9,821.70) ($9,507.38) ($10,411.10) ($9,647.84) ($9,422.08) ($9,422.08) ($9,422.08) ($9,422.08)Advertising $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Utilities ($4,200.00) ($350.00) ($350.00) ($350.00) ($350.00) ($350.00) ($350.00) ($350.00) ($350.00) ($350.00) ($350.00) ($350.00) ($350.00)Professional Services $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Travel ($2,372.75) $0.00 $0.00 $0.00 $0.00 ($170.00) $0.00 ($808.50) $0.00 ($323.50) ($1,070.75) $0.00 $0.00Supplies ($3,927.84) ($1,200.00) $0.00 ($131.54) $0.00 $0.00 $0.00 ($636.71) ($265.44) ($442.44) ($15.75) $0.00 ($1,235.96)Bad Debt ($220.19) $0.00 $457.21 ($964.70) $24.89 ($7.76) $301.70 ($32.44) $17.61 ($20.15) ($9.38) $13.08 ($0.25)Other ($411.51) $0.00 $0.00 $0.00 $0.00 ($29.26) $0.00 $0.00 ($32.25) $0.00 $0.00 $0.00 ($350.00)Training $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Resale Goods ($307,713.82) ($371.78) ($90,669.89) ($71,432.22) ($17,770.16) $7,716.53 ($13,981.19) ($98,636.46) ($13,170.60) $15,738.44 ($1,179.94) ($103.28) ($23,853.27)Capital Expenses & Transfers $313,802.69 $0.00 $0.00 $148,771.35 $0.00 $0.00 $0.00 $0.00 $0.00 $111,009.75 $0.00 $0.00 $54,021.59

Net Income (Deficit) $252,044.44 ($5,007.61) $57,017.83 $95,678.91 ($17,158.99) $2,176.88 ($16,096.27) $6,386.79 ($13,285.77) $121,815.31 ($3,368.30) ($5,614.80) $29,500.46

Sales ‐ Books Taxable $336,213.79 Sales ‐ Sundries Taxable $0.00 Sales ‐ Food & Bev Taxable $0.00 Sales ‐ MBS Books Taxable $7,819.97 Sales ‐ Non‐Taxable $13,792.39Sales ‐ Books Non‐Taxable $0.00 Sales ‐ Sundries Non‐Taxable $0.00 Sales ‐ Food&Bev Non‐Taxable $0.00 Sales ‐ MBS Books Non‐Taxable $185.13 Sales ‐ Interdepartmental $732.71Resale Gds ‐ Books ($207,919.90) Resale Gds ‐ Sundries ($59,325.76) Resale Gds ‐ Food & Bev ($17,721.82) Resale Gds ‐ MBS Books ($8,280.55) Miscellaneous Income $3,981.34YTD Gross Profit on Books: $128,293.89 YTD Gross Profit on Sundries: ($59,325.76) YTD Gross Profit on F&B: ($17,721.82) YTD Gross Profit on MBS: ($275.45) Freight In & Out ($14,465.79)

YTD Gross Profit ‐ Other: $4,040.65

Total SalesLess: Cost of Goods Sold

Inventory 07/01/08 $1.00Total Resale Goods $307,713.82Less: Inventory 6/30/09 ($1.00)

Net Cost of Goods Sold

TOTAL Gross Profit on Sales:

Accounts Receivable $1,325.18Inventory (as of 7/1/08)Fund Balance (Rollover) as of 7/1/0 ($259,781.10)

Rollover + Net Income (Loss) ($7,736.66)

Steamboat Bookstore FinancialsNet Income Statement 2008‐2009

Gross Profit Analysis 2008‐2009

Asset and Fund Balance Information

$362,725.33

($307,713.82)

$55,011.51

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Totals YTD: July August September October November December January February March April May JuneSales $127,734.56 $0.00 $40,388.37 $23,428.41 $8,625.06 $3,013.83 $2,739.23 $36,967.98 $4,355.68 $3,126.20 $3,720.06 $1,151.38 $218.36

Personnel $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Advertising $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Utilities $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Professional Services ($38,660.31) $0.00 $0.00 ($6,715.91) ($3,417.08) ($3,349.38) ($1,568.44) ($5,993.48) ($4,774.80) $0.00 ($5,915.15) ($5,927.14) ($998.93)Travel $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Supplies ($2,458.12) ($1,200.00) $0.00 $0.00 ($8.23) $0.00 ($36.87) $0.00 $0.00 $0.00 $0.00 $0.00 ($1,213.02)Bad Debt ($1,425.09) $0.00 $14.72 $22.00 ($37.09) ($2.76) ($1.75) $3.79 $45.15 ($1.64) ($0.52) $0.00 ($1,466.99)Other ($897.30) $0.00 ($19.95) ($92.70) ($1,921.27) $1,704.44 $0.00 $0.00 ($116.58) ($383.10) $0.00 ($200.00) $131.86Training $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Resale Goods ($93,317.13) $477.13 ($6,275.05) ($43,535.56) ($19,463.46) ($11,612.59) ($4,263.18) ($20,641.00) ($2,412.21) ($2,764.89) $3,825.79 ($1,096.17) $14,444.06Capital Expenses & Transfers $170,113.81 $0.00 $170,000.00 $0.00 $0.00 $0.00 $0.00 $113.81 $0.00 $0.00 $0.00 $0.00 $0.00

Net Income (Deficit) $161,090.42 ($722.87) $204,108.09 ($26,893.76) ($16,222.07) ($10,246.46) ($3,131.01) $10,451.10 ($2,902.76) ($23.43) $1,630.18 ($6,071.93) $11,115.34

Sales ‐ Books Taxable $83,238.75 Sales ‐ Sundries Taxable $35,773.37 Sales ‐ Food & Bev Taxable $0.00 Sales ‐ MBS Books Taxable $3,183.71 Sales ‐ Non‐Taxable $4,964.96Sales ‐ Books Non‐Taxable $0.00 Sales ‐ Sundries Non‐Taxable $0.00 Sales ‐ Food&Bev Non‐Taxable $0.00 Sales ‐ MBS Books Non‐Taxable $137.72 Sales ‐ Interdepartmental $0.00Resale Gds ‐ Books ($62,746.78) Resale Gds ‐ Sundries ($11,570.23) Resale Gds ‐ Food & Bev ($10,526.90) Resale Gds ‐ MBS Books ($3,612.33) Miscellaneous Income $436.05YTD Gross Profit on Books: $20,491.97 YTD Gross Profit on Sundries: $24,203.14 YTD Gross Profit on F&B: ($10,526.90) YTD Gross Profit on MBS: ($290.90) Freight In & Out ($4,860.89)

YTD Gross Profit ‐ Other: $540.12





Accounts Receivable $0.00Inventory (as of 7/1/08)Fund Balance (Rollover) as of 7 ($178,513.69)



Leadville Cyber Cafe FinancialsNet Income Statement 2008‐2009


$127,734.56

($93,317.13)

$34,417.43

Totals YTD: July August September October November December January February March April May JuneSales $281,163.95 $6,049.85 $25,376.15 $125,075.29 $5,044.76 $2,957.11 $2.91 $83,372.51 $7,173.45 $7,244.87 $2,504.17 $10,693.74 $5,669.14

Personnel ($93,046.52) ($8,364.25) ($8,072.67) ($7,983.50) ($6,067.33) ($7,220.36) ($7,585.35) ($7,744.25) ($7,948.25) ($8,132.19) ($7,881.38) ($8,182.33) ($7,864.66)Advertising $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Utilities $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Professional Services $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Travel ($2,703.00) $0.00 $0.00 $0.00 ($485.00) $0.00 $0.00 $0.00 ($285.40) ($594.70) ($1,337.90) $0.00 $0.00Supplies ($2,654.56) ($1,200.00) $0.00 ($254.56) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 ($1,200.00)Bad Debt ($4,760.74) ($7.73) ($17.88) ($67.66) ($18.55) $3.66 $74.99 $30.45 $0.81 $32.54 $1.63 ($6.65) ($4,786.35)Other ($661.49) ($50.00) $0.00 $16.00 ($377.49) $0.00 $0.00 $0.00 $0.00 $0.00 ($250.00) $0.00 $0.00Training $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Resale Goods ($196,567.94) ($6,138.51) ($161.18) ($139,690.07) ($3,837.60) ($843.29) ($81.40) ($46,721.45) ($21,802.38) ($888.33) ($21.20) ($4,925.04) $28,542.51Capital Expenses & Transfers $119,747.74 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $119,747.74

Net Income (Deficit) $100,517.44 ($9,710.64) $17,124.42 ($22,904.50) ($5,741.21) ($5,102.88) ($7,588.85) $28,937.26 ($22,861.77) ($2,337.81) ($6,984.68) ($2,420.28) $140,108.38

Sales ‐ Books Taxable $248,011.30 Sales ‐ Sundries Taxable $0.00 Sales ‐ Food & Bev Taxable $0.00 Sales ‐ MBS Books Taxable $0.00 Sales ‐ Non‐Taxable $20,914.56Sales ‐ Books Non‐Taxable $0.00 Sales ‐ Sundries Non‐Taxable $0.00 Sales ‐ Food&Bev Non‐Taxable $0.00 Sales ‐ MBS Books Non‐Taxable $0.00 Sales ‐ Interdepartmental $9,993.26Resale Gds ‐ Books ($166,183.59) Resale Gds ‐ Sundries ($20,350.91) Resale Gds ‐ Food & Bev ($3,518.89) Resale Gds ‐ MBS Books $0.00 Miscellaneous Income $2,244.83YTD Gross Profit on Books: $81,827.71 YTD Gross Profit on Sundries: ($20,350.91) YTD Gross Profit on F&B: ($3,518.89) YTD Gross Profit on MBS: $0.00 Freight In & Out ($6,514.55)

YTD Gross Profit ‐ Other: $26,638.10





Accounts Receivable ($154.96)Inventory (as of 7/1/08)Fund Balance (Rollover) as of 7 ($106,292.84)


($196,567.94)

$84,596.01


Spring Valley Bookstore FinancialsNet Income Statement 2008‐2009


$281,163.95

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Financial Reporting

Having accurate financial reports will enable the bookstores to have a better idea of where they stand and be able to compare current month/semester/year data to previous month/semester/year data. This will enable them to make adjustments to their marketing plan as needed to ensure that they are staying on track to make money. The reports that they will generate will also make it easier to show their supervisors how they are progressing.

Making the margins and discounts uniform across the college will eliminate competition between bookstores. Changing the textbook margins will allow the book stores to maximize the profit on the biggest sales the stores have while not over charging the students. Their target is to gain 10% in textbook revenue at all the locations.

Discontinuing staff/faculty and interdepartmental discounts at all sites except for special orders will also increase the gross sale and profit at all locations. Specifically, they should see a 5%‐10% increase in internal gross sales for sundries.

Changing the policy on Interdepartmental Charges to using P‐Cards will allow all the location to have a more accurate inventory, save them valuable time, and improve the accuracy of the charges.

Implementing a standard inventory system and the use of inventory guns will increase the accuracy of inventory and once the system is in place should cut down the time needed to conduct inventory by at least one day.

Purchasing Practices

Joining Connect2One will result in a decrease in COGS at all locations. This savings will be at least the cost of joining Connect2One, but is anticipated at being $700 per location.

Issuing an RFP for distance learning and commuter sites textbooks will increase the commission that the college gets by increasing sales from the new vendor. By investigating other vendors we will be able to find a company that will have better customer service and prices for our students. They may also offer other incentives that could be profitable to the bookstores, as with most companies the bookstore does wholesale business with them as well.

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Three‐Year Forecast

The following table shows a combined forecast for the three Residential Bookstores as they move toward their goal of financial profitability. With the many changes proposed as part of this AQIP project, it is hard to determine exactly how the next three years will unfold. However, we feel that this is an attainable timeframe for the improvements to take effect

TOTAL REVENUE 771,624 100.0% 781,636 100.0% 791,798 100.0% 802,113 100.0%

Resale Gds ‐ Books (436,850) ‐56.6% (415,008) ‐53.1% (394,257) ‐49.8% (374,545) ‐46.7%Resale Gds ‐ Sundries (91,247) ‐11.8% (86,685) ‐11.1% (82,350) ‐10.4% (78,233) ‐9.8%Resale Gds ‐ Food & Bev (31,768) ‐4.1% (30,592) ‐3.9% (29,460) ‐3.7% (28,370) ‐3.5%Resale Gds ‐ MBS Books (11,893) ‐1.5% (11,453) ‐1.5% (11,029) ‐1.4% (10,621) ‐1.3%Freight In & Out (25,841) ‐3.3% (24,885) ‐3.2% (23,964) ‐3.0% (23,078) ‐2.9%Personnel (198,684) ‐25.7% (205,638) ‐26.3% (212,835) ‐26.9% (220,284) ‐27.5%Advertising ‐ 0.0% ‐ 0.0% ‐ 0.0% ‐ 0.0%Utilities (4,200) ‐0.5% (4,158) ‐0.5% (4,116) ‐0.5% (4,075) ‐0.5%Professional Services (38,660) ‐5.0% (37,230) ‐4.8% (35,852) ‐4.5% (34,526) ‐4.3%Travel (5,076) ‐0.7% (4,888) ‐0.6% (4,707) ‐0.6% (4,533) ‐0.6%Supplies (9,041) ‐1.2% (8,706) ‐1.1% (8,384) ‐1.1% (8,074) ‐1.0%Bad Debt (6,406) ‐0.8% (6,169) ‐0.8% (5,941) ‐0.8% (5,721) ‐0.7%Other (1,970) ‐0.3% (1,897) ‐0.2% (1,827) ‐0.2% (1,760) ‐0.2%Training ‐ 0.0% ‐ 0.0% ‐ 0.0% ‐ 0.0%

TOTAL EXPENSES (861,636) ‐111.7% (837,309) ‐107.1% (814,724) ‐102.9% (793,819) ‐99.0%NET INCOME (90,012) ‐11.7% (55,673) ‐7.1% (22,926) ‐2.9% 8,294 1.0%

2008‐2009 FY 2009‐2010 FY 2010‐2011 FY 2011‐2012

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.

Our customers are first and foremost our students, and our customers are also our staff and faculty. We believe there will be some significant pros and a few cons with the ideas we are proposing for change. We would also like to separately list a few pros that have impacted us, the Team, although not our customers. Additionally, we believe that our customers are impacted positively by some of the changes we have already implemented, at the beginning of this process. Positive customer, team and staff impact changes from the Bookstore Summit: - Full‐time faculty selecting the books for adjunct faculty provides more consistency - Common books being used for common courses provides more consistency - Common book being discussed college wide for common courses - Earlier book order deadline dates allows more used textbook choices - CEO’s support for bookstore changes - Decision to keep bookstores college owned and operated caters to student feedback - Holding faculty accountable for book order decisions enables fiscal responsibility

Positive customer impact changes from new AQIP proposal: ‐ Merchandise margins will be staying the same ‐ Lowering the price of new textbooks will help customers ‐ RFP for online books could net us a better deal college wide ‐ Standardized processes will help in training new employees Positive team and staff impact changes from new AQIP proposal: ‐ Setting same margins will help with consistency ‐ Setting same discounts will help with not competing internally for same business ‐ Raising margins on used books will net more profit for bookstores ‐ Selling all merchandise with no more discounts will net more profit for bookstores ‐ Better communication between D.O. and site staff ‐ Standardized reports will be easier for all to comprehend ‐ Standardized reports timing will allow for better comparisons ‐ Interdepartmental charges will be done immediately ‐ Inventory price guns will save us time and money, and provide a more accurate count ‐ Internally learned training & tips from each other A few Cons that may affect our customers: ‐ Current customers will be disappointed with no more discounts given ‐ Students may notice price of used books going up ‐ Trial and error if our margins will help or hinder sales ‐ Process changes for students and staff if vendor changes as a result of the RFP ‐ Staff will have to reconcile purchases from their p‐card

Overall, we feel these recommendations will help in leading us to our mission of maximizing bookstore profits, implementing good financial reporting and purchasing practices.

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Support

1

a

b

c

d

e

f

2

3

4

5

6

Ideas For Improvement

Issue request for proposal to find the best partner to provide textbooks for the distance learning program and commuter sites

Sponsors:Date:

Team Name:

Join Connect2One buying group to maximize discounts on purchases

Bookstore Improvement Team

Linda English

Steve Boyd12/1/2009

Implement a standard that Interdepartmental purchases should be made with Pcards

Utilize group buying and venders that offer split shipping when advantageous

Implement a standard system of financial reporting and forecasting

Purchase four inventory guns

Standardize margins and discounts

Implement a standard inventory evaluation system

Implement a standard forecasting report

Implement a quarterly reporting system

Implement a monthly reporting system

Implement a standard frequency of bank deposits

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12/8 12/15 12/29 12/30 1/5 1/15 2/2 3/9 3/15 3/16 3/30 3/31 4/1 4/15 4/16 4/20 5/10 6/1

Task Start End

1 Financial Reporting and Forecasting2 Prepare first quarterly standardized financial report 12/8 12/293 Standardize frequency of deposits 1/5 1/54 Establish bookstore bank accounts 1/5 1/55 Implement standard margins and discounts 12/15 1/56 Complete three year budget forecasts 12/15 1/57 Prepare first monthly standardized financial report 1/14 2/28 Purchase and install inventory guns 4/1 5/10

Purchasing Practices9 Join bookstore buying group 12/8 12/8

10 Replace inter-departmental charges with PCARDs 12/15 1/511 Engage in group buying when advantageous 3/9 3/1612 RFP for distance learning and commuter site books 1/5 3/30

Note: Timeline is not displayed in linear format to display all beginning and completion date for projects

Fall 2009 Bookstore Improvement AQIP

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This committee’s improvement theory supports student learning by providing a stable local bookstore offering with a higher level of personal service. Bookstore personnel have the training and resources to help students identify and obtain the right textbook for the right class without having to wait for the product to be shipped. Having logo wear and convenience items also contributes to student morale and promotes the college. By stabilizing operating performance we are able to increase the ongoing viability of this offering to CMC students.

Our improvement theory values all bookstore stakeholders and empowers them to contribute to the continuing improvement of this institutional operation. The ongoing efforts to engraft this improvement theory will, of course, require successful collaboration with other departments, including Purchasing and Instructional Development.

The measurement of effectiveness can be determined in great part by comparing actual bookstore financial results against the three year forecasts generated by this AQIP team.

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As seen in the Gantt Chart, most of the recommendations of this team begin in January 2010. As a result of the nature of our desired outcome, a certain amount of time needs to lapse before we can see if the changes are creating positive results. We plan to first give an update on results to the College Leadership Team in February 2011, which will give an entire calendar year worth of data to analyze. Then, the final report will be presented to the College Leadership Team in July 2011, which will give an entire fiscal year worth of data.

Financial Reporting:

We will use the new Financial Reports spreadsheet to analyze the financial standing in greater detail going forward. We will also be able to use this to compare the upcoming timeframe to past years. By making these comparisons, it will be apparent whether or not the bookstores have made the necessary progress in profitability. Updated versions of these reports will be presented during both future reports to CLT.

Purchasing Practices:

We will receive a report from Connect2One after our first year of membership that will outline the annual savings we have realized as a college. The results of this report will be presented to CLT in the timeframe mentioned above. Fortunately, if the savings do not exceed the cost of the membership, Connect2One will send CMC a check for the difference. As for inventory, one round of Year‐End Inventory will be completed by the first update to CLT, and a second round will be completed by the Final Report. This will give us a fair assessment of how much time the inventory guns are saving our bookstores, thus allowing them to be open for additional days. By having two years to assess this system, we will be able to accommodate the learning curve during the first year of using the new system.

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We would like to recommend the next AQIP team be a team that would take an in‐depth look at the HEOA Textbook Provisions that will go into effect July 2010. Specifically, the team will need to strategize how CMC is going to implement the new requirements and how the bookstores are going to compete in the new market place. Possibly, this team can coincide with the timeframe in which the Residential Bookstores hope to be able to sell their goods online.

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The AQIP Bookstore Team would like to send out our Gratitude and Thank You to a number of behind the scenes staff members who helped us obtain our goal in producing this Team Project Booklet.

A great big Thank You to Skip Lee, Meghan Buzan; Timberline, Erika Grant; Alpine, China Clancy; Spring Valley, Linda Ouellette; Central Services and Sue Schmidt; West Garfield.

We also would like to acknowledge the previous Bookstore Summit Team for their hard work in the past year as a preliminary support and data gathering group for this currently formed AQIP Team.

And last but certainly not least, we would like to send our Thank You to Dr. Stan Jensen Ph D. and the entire CLT group for allowing us the time and the confidence in our Team efforts throughout this learning and growing process.

Thank you for your thoughtful consideration of our recommendations.

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The team was able to do a breakdown of KayCee reports that explains sales over the past seven years in all of the major categories of business. Timberline and Spring Valley both had an issue with KayCee that would not allow us to have access to some of the data that we included because the files were corrupt. As a result, Timberline is missing 2007 numbers and Spring Valley is missing 2005 and 2006 numbers which are seen as gaps and/or zeroes in the graphs.

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A Standard Bookstore Survey was conducted at all Residential Campus Bookstores last Spring Semester 2009. Attached is a blank copy of this survey, and the results for each campus.

One of the main reasons for conducting this survey was to find out what our students were feeling about providing books at the campus location, versus, having all books go on‐line ordering. The survey showed an overwhelming desire by our students to have residential campuses continue to provide this service.

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Colorado Mountain College ‐ Residential Campus ‐ Book Purchasing Survey Dear Student: Thanks for taking a few minutes to give us your feedback about purchasing books for CMC classes. Your feedback will help shape the services and goods offered in Bookstore on campus. Currently books for courses offered at the residential campus are sold at the bookstore on campus. Books for courses offered at a commuter location (Glenwood, Carbondale, and Buena Vista) are sold on‐line via MBS (an online bookstore contracted by CMC). We realize there are many factors impacting decisions about how you purchase books for courses. We would like your input on what is most important to you. 1. Please check the locations where you will be taking classes in the next year:

____Alpine‐Steamboat ____Timberline – Leadville ____Buena Vista ____Spring Valley ____Glenwood ____Carbondale

2. Do you live : ____on campus ____off campus? 3. What is most important to you in purchasing your text books? 1 = most important 6 = least important

____convenience: ability to have books for the beginning of a course

____correct book: assurance that you are purchasing the correct book ____cost ____choice: ability to shop for best deal ____return ability: ability to return book during the drop and add period ____buy‐back: opportunity to sell back texts after use 3. Have you purchased your CMC text books through other means? (Check all that apply) _____MBS ___satisfied ____dissatisfied Comments: _______________________________________________________________________________ _____Amazon ___satisfied ____dissatisfied Comments: _______________________________________________________________________________ _____Barnes and Noble ___satisfied ____dissatisfied Comments: _______________________________________________________________________________ _____Text books online ___satisfied ____dissatisfied Comments: _______________________________________________________________________________ _____Other (name) __________ ___ satisfied _____dissatisfied Comments: ________________________________________________________________________________

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4. What will you purchase in a bookstore on campus? Please check all that apply. __Educational supplies other than text books: CDs, notebooks, pens __CMC logo items; clothes, mugs, bumper stickers __Snacks and beverages; coffee, candy, energy drinks, chips __Convenience foods: microwavable foods __Gifts and greeting card __Basic toiletries: toothpaste, shampoo __Res hall room accessories: posters, lamps __Over the counter medicines: cold/flu, headache, first aid __Other:___________________________________________________________________________________________________________________________________________________________________ 5. What services would you utilize if offered in the bookstore? Please check all that apply. ___Change for vending and laundry ___Postage stamps ___Custom ordered software ___Cafe setting: a place to study, meet friends, purchase coffee/tea beverages ___Other:_____________________________________________________________________________ 6. What other comments or suggestions do you have for the bookstore?

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Survey Results

1 Please Check the locations you will be taking classes in the next year: Alpine Spring Valley Timberline Total

Alpine 53 53 Timberline 52 52

Buena Vista 0 Carbondale 7 7

Spring Valley 100 100 Glenwood 1 21 22

Multiple 1 5 6 N/A 4 4

2 Where do you live?

Alpine Spring Valley Timberline Total On Campus 49 89 43 181

Off Campus 8 24 13 45

3 Where have you purchase your CMC textbooks? Alpine Spring Valley Timberline Total On Campus 48 101 46

Other 4 Multiple 5

4 If other, please indicate where?

Alpine Spring Valley Timberline Total Amazon 3 25 20 48

Barns and Noble 1 6 1 8 Text books online 2 12 5 19

MBS 6 2 8 Chaepbooks.com 1 0 1

EBay 2 1 3 Walden Books 1 0 1

Other 1 5 3 9 N/A 4 4

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5 What is the most important to you in purchasing your text book? Alpine Spring Valley Timberline Total

Convenience: ability to have books for the beginning of class 2.64 2.25 2.52 2.47

cost 1.72 1.60 1.66 1.66

choice: ability to shop for the best deal 3.79 4.09 2.89 3.59

return ability: during add drop period 2.75 3.12 3.50 3.12

buy‐back 2.47 2.94 2.88 2.76

6 What will you purchase in a bookstore on campus? Alpine Spring Valley Timberline

Educational supplies 40 75 35 CMC logo items 28 65 28

Art Supplies 19 33 6 Snacks 37 47 36

Convenience foods 22 25 10 Gifts and greeting cards 9 34 5

Basic Toiletries 14 18 5 Dorm room accessories 17 17 7

over the counter medicines 24 40 15

other 4

7 What services would you utilize if offered in the bookstore? Alpine Spring Valley Timberline

Change for vending and laundry 40 82 40

Postage Stamps 35 78 33 Custom order software 12 21 10

Café setting 35 63 34 Other 3

bookstore team · accounts receivable end of year tally 4) ... datatel budget reports end of term...

Documents