When schoolteachers or those in K-12 procurement are making purchases for their classrooms, they often just make the most convenient purchase. But, choosing the item at the top of the search results, or going with the supplier they are most familiar with, often leads to unnecessary overspending. The extra dollars spent on these small purchases can add up fast and cost schools a significant amount of extra money each year. The EqualLevel Marketplace, by consolidating supplier catalogs and punchout stores into a single marketplace for comparison shopping, provides a unique opportunity to prevent this overspending.
Our patent-pending EqualLevel Savings Advisor™ (ELSA) combines the power of artificial intelligence (AI) and a growing database of commonly sourced products for K-12 to automatically identify in real-time the lowest price for your item or the best available substitute from your approved suppliers. This feature enables shoppers to quickly swap in the best price or enter a justification for keeping their current item. Detailed reporting is available on the alternatives suggested, decisions made, and the savings achieved or missed.
To measure the impact of the EqualLevel Savings Advisor, we looked at the spend from 20 school districts utilizing an EqualLevel Marketplace with ELSA in 2021. These 20 districts were from 5 states and integrated their marketplace to 8 different ERP systems — eFinancePlus, MUNIS, Oracle, PeopleSoft, SAP, Skyward, TEAMS, and USAS. In total, ELSA was able to save these districts $642,454 in 2021. These savings were realized directly from ELSA presenting shoppers a lower price from another approved contract for an item in their cart and the shopper choosing to make the replacement. The savings for each district depended primarily on their total spend. The average savings for a district was $32,122, with the highest savings being $282,852 for one of the larger school districts.
For most districts, these savings alone were able to provide an ROI for the marketplace application in just the first year. And even further savings were achieved through the marketplace ensuring contract compliance, increasing productivity, and reducing manual data entry and errors. Also, from the ELSA savings data for these 20 school districts, the savings are increasing over time. As more contracts are added to the marketplace and as the AI engine learns more from shoppers’ behavior, ELSA can identify more alternatives and drive more savings.
For K-12 school districts, a P2P solution can do more than streamline their procurement processes and ensure compliance—it can also drive significant cost savings. By incorporating real-time analysis using an AI engine into comparison shopping, the EqualLevel marketplace is able to prevent overspending and deliver immediate cost savings to school districts that can be put towards the classroom. An EqualLevel Marketplace can complement a variety of financial systems and can be implemented in 60 to 90 days, enabling a powerful return on investment within a single fiscal year.