SUCCESS STORY | EDUCATION

The Hotchkiss School achieves process efficiencies and cost savings with Fraxion

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The Hotchkiss School

Vector  Industry: Education | Independent School
Group 21066  Location: Lakeville, Connecticut, USA
user-plus  Students:  599

ABOUT THE HOTCHKISS 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...

ABOUT THE HOTCHKISS 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.

BEFORE FRAXION

Before implementing Fraxion, The Hotchkiss School used manual, paper-based purchasing processes. Although Fraxion was introduced to integrate with Microsoft Dynamics GP and streamline procurement, staff continued using paper forms alongside the online tool, causing confusion and inconsistencies. Additionally, various purchasing methods 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. Initially limited user access and insufficient communication about Fraxion’s benefits led to underutilization of the system.

CHALLENGES

Hotchkiss struggled with:

  • Manual, email, and paper-based processes: Processes were slow, error-prone, and inefficient.

  • Multiple purchasing methods: Varied payment methods, such as corporate cards and check requests complicated tracking and reduced spending control.

  • Lack of spend and budget control: Spend control was limited for staff purchasing and any budget overspend was only discovered after the fact.

  • Multiple purchasing accounts and vendors: Individual department vendor selection and online accounts lacked visibility and control and the ability to negotiate volume discounts or better terms.

  • Cumbersome manual approval process: Requests frequently missed the necessary approvers, leading to delays and bottlenecks from constant follow-ups. Personnel unavailability further stalled approvals, and enforcing complex process rules proved challenging.
  • Manual invoice inefficiencies and duplicate entries: Manual invoice entry into the accounting system and email-based approvals were time-consuming, error-prone, and reliant on staff following complex manual approval rules.

  • Manual invoice matching and missing data: Increased administrative workload, error prone, and missing data caused delays.

  • Lack of policy management: Unmonitored purchases were difficult to manage in terms of pricing and required standards and specifications (e.g. IT purchases).

  • Lack of transparency and audit readiness: Disorganized records made auditing time-consuming and inefficient.
SOLUTIONS

With Fraxion, Hotchkiss has gained: 

  • School-wide procurement management and system adoption: The broad implementation was the catalyst for procurement efficiency and success.

  • Enhanced transparency and accountability: Monthly and annual system-generated reports provide detailed spending breakdowns by department.

  • Simplicity and spend control, driven by familiarity: Fraxion’s PunchOut catalogs allow users to shop directly from preferred vendors (Amazon Business, Staples etc.) in familiar interfaces - simplifying requisitions and approvals, adoption, and improving spend control.

  • Vendor management and consolidation: With centralized visibility and management across departments, Hotchkiss reduced the number of vendors to a core strategic group. This improved vendor relationships and enabled better terms and savings through higher business volumes.

  • Robust approval process: The approval matrix, tailored to Hotchkiss' complex needs, enables real-time notifications and multi-level oversight, reducing delays, financial risk, and ensuring policy compliance.

  • Invoice efficiency: Automation and centralized records have streamlined processing and approvals for high volumes of transactions.

  • Improved endowment visibility and management: Oversight and approval workflows for endowed and special accounts.

  • Seamless ERP integration: Microsoft Dynamics GP

  • Cost savings: Fraxion has cut unnecessary spending by enhancing visibility into departmental purchases particularly in high-spend areas such as IT.

quote

“Fraxion has reduced IT spending by ensuring that essential items like computers are bought from approved vendors, meeting the School's standards and specifications, and preventing unauthorized purchases.

Rob Seymour
Purchasing Manager

KEY FEATURES & TAKEAWAYS

What Hotchkiss users are saying

PunchOut

“It was really popular because it mirrored the familiar online shopping experience many users were already comfortable with, browsing on Amazon.”

“Fraxion’s PunchOut integration helped corral the Wild West of individual accounts and payment methods, allowing us to fully benefit from the features and cost savings of a consolidated Amazon Business account," Kevin Warenda, Director of IT Services

Approval matrix

"One of our key requirements is a robust approval matrix. Fraxion supports our complex needs with multiple levels and departmental thresholds, unlike many software products, limited to basic thresholds or locations. This setup meets our requirements and reduces financial risk," Kevin Warenda, Director of IT Services

Invoice automation

"The addition of the invoice functionality made the system a powerhouse.” Rob Seymour, Purchasing Manager

Auditability

"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."  Kevin Warenda, Director of IT Services

Cost savings

"Having Fraxion in place makes a significant difference in controlling costs. We know we wouldn’t be getting the same discounts and negotiated rates without the system. From an anecdotal level, it’s clear that costs would be higher due to less control. Without it, people could spend freely, and any budget overspend would only be discovered after the fact.” Kevin Warenda, Director of IT Services

“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. For example, 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, Purchasing Manager

 

RESULTS               

 

The Hotchkiss School _ Stacked

SUCCESS STORY

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