By transitioning from a manual, paper-based purchasing process to automated workflows via Fraxion's spend management software, The Hotchkiss School aligned their faculty, finance, purchasing, and IT departments, streamlining operations even as they handled a 170% increase in processed purchase orders.

Results included:

• Simplicity of using familiar online purchasing platforms (e.g. Amazon), integrated with Fraxion significantly increased adoption.  
• Streamlined vendor management reduced the number of vendors, fostering stronger partnerships, and enabling better service and cost negotiations through improved visibility and spend tracking.
• Reduced unnecessary spending by enhancing visibility and ensuring purchases align with approved vendors, policies, and standards.
• Savings of up to 20% on individual purchase orders.
• Nearly school-wide faculty and staff adoption of spend management software.

Key benefits:

• Ease of use
• Adoption via familiar tools
• Efficiency
• Transparency
• Auditability
• Time savings
• Cost savings

Key takeaways: Efficiency and savings in education

The Hotchkiss School found success with these key spend management features in Fraxion.

• Purchasing and approvals: Fraxion has been configured to manage approvals by department, with department heads responsible for initial approvals. If a transaction exceeds a certain amount, it is escalated through up to five levels of approval, ensuring thorough oversight. This mature and robust approval matrix is a critical requirement for Hotchkiss, and the software's ability to support such a detailed and layered process has been instrumental in reducing financial risk and ensuring compliance with the School's policies.

• PunchOut: Teachers, managers, and assistants create requisitions with ease, thanks to the familiar storelike interface of the PunchOut catalogs that are supported by internal controls.
  
  
• Vendor management and reporting: One of the notable benefits of the system is its ability to track and manage vendor performance. By providing detailed reports on vendor spending, the School can easily monitor which vendors are being used most frequently and where the highest spend is occurring. This visibility helps in assessing the value provided by each vendor and making informed decisions about future agreements. Rob Seymour, Purchasing Manager noted, "Previously, we struggled to track where the money was being spent until well after the fact. Now, with our clear view of expenditure, we can easily pull reports and review budgets to understand and justify purchases in real-time."
   
• Invoice management: Automated approvals, streamlined workflows, and enhanced efficiency, resulted in improved organization and comprehensive records for audits and financial reviews. "The addition of the invoice functionality made the system a powerhouse,” Rob Seymour.
  
  
• Centralized purchasing records and audit trails: Fraxion enhanced audit readiness by centralizing all purchasing records and actions, providing visibility, which streamlines audit processes, reduces manual effort, and ensures quick access to all necessary documentation.
  
  
• Enhanced endowment visibility and management: By integrating an approval workflow for endowed and special accounts, it ensures that all expenditures are reviewed and approved by the appropriate fund stewards and the development office, aligning purchases with donor intentions and improving transparency and keep donors informed about how their contributions are being used.
  
  
• ERP integration: Fraxion’s integration with The Hotchkiss School’s existing on-premise accounting system, Microsoft Dynamics GP, allows for seamless synchronization between procurement and financial management processes.
  
  

The Hotchkiss School: A prestigious independent school

The Hotchkiss School is an independent boarding school located in Lakeville, Connecticut. Founded in 1891, the School provides an education of academic distinction to 599 students in grades 9 through 12, and to a small number of postgraduates. Students at Hotchkiss come from across the United States and around the world. Graduates attend many of the most selective universities and colleges.

The challenge: Juggling multiple paper-based processes and purchasing methods

The Hotchkiss School struggled with manual, paper-based processes. Various methods for making purchases were in play, including corporate purchasing cards and check request forms for one-off payments to individuals not set up as vendors. These payments, often linked to 1099 transactions, introduced a variety of processes for handling commitments, complicating oversight and control of spending.

Not only that – the School’s approval process was cumbersome and prone to delays. Transactions often didn't reach the necessary approvers, leading to frequent calls and manual interventions to push requests through.

The transition: Migrating staff to a digital system

When staff originally struggled with the transition to a digital system, Fraxion’s easy-to-use PunchOut catalog interface eased the progression. The integration of vendor catalogs, starting with Amazon and expanding to Grainger, Staples, and others, enabled users across all levels—teachers, managers, and assistants—to create requisitions effortlessly. The familiar online store interface made browsing and adding items intuitive, leading to increased user satisfaction and adoption.

Fraxion’s PunchOut feature was really popular because it mirrored the familiar online shopping experience many users were already comfortable with, browsing on Amazon.” - Kevin Warenda, Director of Information Technology Services 

The purchase approval process also went digital. Fraxion’s approval matrix automatically routes requests to the appropriate approvers based on predefined thresholds and department assignments. It even handles out-of-office situations and assigns backup approvers seamlessly – ensuring that approvals are not stalled due to personnel availability.

The savings: Consolidating vendors and realizing savings

Effective vendor management is crucial for Hotchkiss School, given the wide range of products and services required to support its operations.

The ability to streamline vendor management in Fraxion has led to a reduction in the overall number of vendors. In the past, individual departments had the freedom to engage with multiple vendors independently, leading to a fragmented procurement landscape. Today, the system consolidates these efforts, focusing on a core group of reliable vendors. This consolidation not only simplifies procurement but also strengthens relationships with key vendors, as the School can leverage higher volumes of business to negotiate better terms and services. This oversight and digital approach, through vendor management and PunchOut tools, ensures that every dollar spent is maximized for value.

“Fraxion has streamlined our process significantly compared to the past when everyone was purchasing from different vendors. We've reduced the number of vendors we work with; it’s streamlined the process significantly.” - Rob Seymour, Purchasing Manager.

The PunchOut integration not only simplifies order placement but also leverages pre-negotiated terms for discounts on bulk and frequently purchased items, driving overall cost savings. This feature led to significant benefits for the school with cost savings of upwards of 20%.

“One of the primary advantages of Fraxion is its ability to provide visibility into every transaction. This transparency allows us to seek out the best deals for high-dollar purchases, often leading to savings. We saved $3,000 on a $15,000 machine purchase by leveraging the system’s integrated vendor programs. We frequently see cost reductions—sometimes up to 20%—compared to schools that may pay full price.“ - Rob Seymour. 

The transparency: Simplifying audits and donor relations

Endowment management and visibility are key to maintaining donor trust and ensuring that funds are used appropriately. Even though The Hotchkiss School’s primary advancement and development system handled the majority of their detailed endowment reporting, Fraxion's software greatly improved the visibility and management of these funds.

“At Hotchkiss School, we receive various forms of funding, including endowments, which necessitate careful tracking and reporting. Fraxion plays a role in improving the visibility and management of these funds.” - Kevin Warenda, Director of Information Technology Services.

By using Fraxion, Hotchkiss school also ensured that no purchases slipped through the cracks. This visibility was especially useful for audits."

"One of the biggest efficiencies we've gained is in the audit process. With Fraxion, all purchase records are centralized, so if an auditor asks for approval records, we can provide them instantly without sifting through file cabinets or emails.” 

“The efficiency gains are significant, from placing and fulfilling orders to reporting and data visibility. But the real standout is the audit capability—centralizing records for instant access is a key component of best practices. As the GL is posted, everything aligns perfectly." - Kevin Warenda.

The Fraxion relationship: Personal support from account managers to the CEO

Kevin Warenda praised Fraxion’s personal approach to customer support. 

“We have direct access to our contacts at Fraxion and can easily pick up the phone and call them whenever we need support. This personal touch means we aren't left waiting for nameless, faceless support tickets to be addressed. Their commitment was evident when Fraxion’s CEO joined our recent demo of their latest developments, showing their dedication to our success and understanding that their success is linked to how well we use their product.”

"Overall, our experience with Fraxion has been overwhelmingly positive. Their exceptional support, solutions-driven approach, and commitment to our success make them a standout vendor. For any school looking to enhance their procurement processes, we highly recommend partnering with Fraxion. Their dedication to customer satisfaction and continuous improvement ensures that you will have a reliable and supportive partner in your procurement journey.”

Is your school ready to save? Book a demo today

Ready to see significant savings in your school’s operational costs? Schedule a call with Fraxion today for a personalized tour of our procurement software, relevant to your school's needs.