American Public University System
Request for Information
Course Materials & Electronic Bookstore Operations
April 4, 2011
Cover Sheet
The American Public University System (APUS) seeks information at the leading edge of
modern services for course materials. This document outlines our main areas of
interest, but APUS is open to additional comments. Responders do not have to comment
on all areas. We entertain replies on one or more of the following main topics:
Electronic Bookstore Operations for undergraduate distribution and
graduate purchasing of course materials.
o Option: University souvenir or other promotional lines
Physical Course Material Delivery on textbooks and other resources with
shipping to all states and around the world.
Electronic Course Material/Evolving Media Services on possible
contributions to access a growing list of titles from a wide variety of publishers
and open access sources. In addition, responders are invited to comment on:
o Electronic Reader Interface
o Multi-Media and Simulation Prospects
o Mobile Devices and Emerging Technologies
Relationship Management
Responses
Due: May 20,2011
E-Mail to: Books@apus.edu; Booklist@apus.edu
Telephone Inquiries
o Physical shipping: Frank Turner (703)396-6861
o Electronic topics: Andrea Dunn (304)724-2837
o Campus Goods/Bookstore: Beth LaGuardia (703)396-6421
Mailing Address (5 copies):
Dr. Fred Stielow, Dean of Libraries & Course Materials
American Public University System
111 W. Congress Street
Charles Town, WV 25414
Part I—About APUS
American Public University System (APUS), winner of the Sloan Consortium’s 2009
Ralph E. Gomory Award for Quality Online Education and two-time recipient of Sloan’s
Effective Practices Award, offers 79 online degree programs through American Public
University and American Military University. APUS’s relevant curriculum, affordability
and flexibility help more than 83,000 working adults worldwide pursuing a wide array
of degree programs – from highly specialized programs in such fields as homeland
security, space studies, and emergency and disaster management, to an array of liberal
arts programs including philosophy, humanities, religion, and civil war history. These
programs are uncommon in an online setting, differentiating APUS from other online
universities. (See complete list of programs in Appendix A. We invite comments on
specializations in any of these from the submitters).
Founded as American Military University nearly two decades ago, APUS is guided by a
core mission of making quality higher education more affordable and accessible for
national security and public service professionals as well as for other working adults
who are seeking to advance their education and contributions to the communities they
serve.
Tuition is almost 10 percent below the average cost of in-state public university tuition
and books combined according to the College Board’s 2009-2010 survey. APUS’s firm
commitment to affordability is further evidenced by the fact that APUS has not raised
undergraduate tuition in more than 9 years.
APUS approaches recruitment from the standpoint of a trusted education partner; one
who believes that the ideal student is fully-informed and ultimately is satisfied enough
with the learning experience to return and refer others. More than 50% of our students
are referred by a trusted friend or colleague, and 40% of our undergraduate alumni
return to APUS to continue their education.
2010 net course registrations were roughly 272,000, historically growing at a rate
greater than 30% per year over the past four years. APUS is a publicly-traded, for-profit
online educational provider. (NASDAQ: APEI) For further information on APUS, please
visit www.apus.edu.
Course Materials Operations
Electronic materials and desk copy orders are controlled out of Charles Town, WV under
Electronic Course Materials Director Andrea Dunn. Physical shipping and handling are
managed from our Manassas, VA offices under Course Materials Director Frank Turner.
(Review of Campus souvenir operations falls under VP Philip McNair in coordination
with APUS Marketing.) We appreciate responses directed toward jointly profitable
endeavors and cooperative partnerships and invite your consideration of the following:
Fully Online: We have no land-based classrooms or bookstores
Monthly sessions: 8- and 16-week classes starting the first Monday 0f every
month.
Undergraduate Book Grant: We must emphasize this feature. APUS pays for
its undergraduate course materials.
Graduate Materials: Although we are mindful and have limits on costs,
graduate students are required to purchase materials not found on the Open Web
or in the University’s Online Library.
Electronic Course Materials Project: In an effort to balance among
student/faculty print preference, textbook inflation, and still evolving
technologies—the University has developed an advanced tripartite response:
o E-Textbook Conversions and intensive negotiations with publishers for
deep discounts.
o Online Library & Open Web Materials an industry leading corps of
subject-specialist librarians work with faculty on alternative resources
(See: www.apus.libguides.com)
o AMU ePress selectively commissions faculty authors and editors with an
emphasis on our niche disciplinary strengths.
Sakai & PAD: APUS is in the process of converting to the Sakai Learning
Management System. Student enrollments and other ERP functions are managed
through our home-grown PAD system.
Extant Services: APUS has had a long shipping relationship with MBS Direct
and its delivery operations.
o APUS supplies Daily Auto Orders and a Shipping Timeline, which
indicates expected shipment times for the various student locations
throughout the US and internationally.
o General Shipping details –2010 averaged 25,000 orders per month; most
active day generated 1,144 orders.
Part II—RFI Details
A. Electronic Bookstore Operations
Provide information on the following topics:
Describe and provide samples of user interface for online bookstore.
o Is branding available and how is the site updated?
o Shopping cart or other experience?
o Is there an individualized client portal?
o How would you handle University purchased undergraduate materials/ties
to campus ERP?
o How would you handle graduate student purchases?
What is your experience or current APIs for engaging Sakai or other LMS?
Describe and provide samples of the administrative interface.
What are the available customer service mechanisms?
Is there used textbook availability?
Are reprinting/copyright clearance services available?
Are print on demand services available?
Is desk copy ordering available for instructors?
What metrics and reporting capabilities are available?
Can reports be tailored to the institution’s statistical needs?
How does your bookstore adhere to HEOA compliance?
Describe the user payment experience and security methods.
Explain your pricing and discount structures.
Option: Campus Goods
o We currently operate a 100% online campus store at www.apus.edu/shop.
Store merchandise is sold at cost in order to offer the most affordable
prices possible for our students, and we currently sell roughly $50,000 of
merchandise per year. Our current vendor is SureShip, chosen for their
ability to meet our desire to provide highly affordable, quality products.
We are currently seeking proposals from new vendors, primarily due to the
fact that SureShip cannot produce items on demand. The ideal solution
would be to combine a traditional inventory model with an on-demand
capability that allows us to scale beyond this level. We seek a vendor that
can offer quality, highly affordable merchandise, a delightful customer
experience, and responsive and forward-thinking client management
services.
o While the optimal campus store vendor may not tie to the University
bookstore, we are conducting a two-pronged search that ties to our search
for a new book vendor and simultaneously looks at a campus store only
option. A terrific advantage of a joint provider could be the ability to send
spirit merchandise with books.
o Please see the Campus Store Business Plan (Appendix B) for additional
information regarding history, goals & objectives, and desired
arrangements regarding inventory size, transition timing, and APUS
management resources. The intent is for the campus store to be operated
exclusively by an external vendor and not be a line of business for APUS.
APUS will provide funding to enable the vendor to conduct operations and
maintain appropriate inventory levels, but the expectation is that all sales,
taxes, shipping, web site maintenance, etc., will be handled by the vendor.
B. Physical Course Material Delivery
In explaining how your company will provide course material delivery service to APUS
students located worldwide, please respond in detail to these concerns:
Staffing: What would be your staffing arrangements for an institution like us?
Shipment and warehousing operations:
o How do you work with automated ordering?
o How do you handle warehousing for new and/or used materials?
o Material shipment preparation, shippers, and secondary shippers.
o What are your auditing and reporting mechanisms?
o Student contacts and delivery mechanisms
o Describe typical shipping charges.
o Describe normal and expedited shipping options, including time limits.

United States shipping (Continental and Alaska/Hawaii)

International shipping

APO/FPO shipping
Shipment issues
o How do you deal with duplicate orders?
o How do you monitor and respond for typical problems?
o What are your crisis response procedures?
o How do you handle manual orders?
New Book Operations
o What are your relationships with the major and minor publishing houses?
o Indicate your markup/charging structures, including option for volume
discounts.
o What is the lead time for book changes?
Return Book Operations
o What are your quality and quantity controls?
o How do you track book and process returns?
Transaction Tracking: Describe how you chart client contact for delivery.
o Individual/Graduate purchases
o University paid purchases
o Do you maintain a client history?
What is your billing and invoicing process?
How would you interact with APUS staff?
o What training is available for your system?
C. Electronic Course Material Services
Describe your experience with e-titles from publishers and open access sources.
Electronic Reader Interface-Describe available e-book reading platforms and
bulk purchase capability for undergraduate students and individual purchase
options for graduate students, along with any associated costs.
Multi-Media and Simulation Prospects-Provide information on partnerships with
multi-media and simulation vendors, including films on DVD.
Mobile Devices and Emerging Technologies-Provide information on available
delivery and viewing options for materials.
Describe how you approach ADA section 508 compliance.
Describe how you deal with DRM.
What is your view of proprietary applications and formats?
What is your philosophy for dealing with new technologies and web applications?
What are your procedures for handling physical and electronic coursepacks?
D. Relationship Management
Describe your philosophy and typical working relationships with a for-profit
University, like APUS.
What are your Help Desk and training options?
Given the areas that you have responded to above, describe how you would
approach a transition, including a rough timeline.
How could you work with an institution of APUS’s size in transiting to a fully
electronic course materials environment?
How do you see your company evolving with a partner like APUS over the next 5
years?
Appendix A:
APUS Academic Programs
A
Accounting - (AA)
International Relations - (BA)
Air Warfare - (Grad Cert)
International Relations and Conflict
American History - (Grad Cert)
Resolution - (MA)
American Revolution Studies - (Grad Cert)
International Relations and Conflict
Ancient and Classical History - (Grad Cert)
Resolution-Capstone Option - (MA)
Asymmetrical Warfare - (Grad Cert)
Internet Webmaster - (Undergrad Cert)
Athletic Administration - (Grad Cert)
IT Infrastructure Security - (Undergrad
Cert)
B
IT Project Management - (Grad Cert)
IT Project Management Essentials (Undergrad Cert)
Business Administration - (AA, Bachelor's,
Master's)
Business Administration-Practicum Option
J
- (Master's)
Joint Warfare - (Grad Cert)
C
L
Child and Family Development - (BA)
Civil War Studies - (Grad Cert)
Land Warfare - (Grad Cert)
Communication - (AA)
Legal Studies - (BS, MA)
Competitive Intelligence - (Grad Cert)
Logistics Management - (Grad Cert)
Computer Applications - (AS)
Computer Systems and Networks -
M
(Undergrad Cert)
Corrections Management - (Undergrad
Management - (AA, BA, MA)
Cert)
Management-Practicum Option - (MA)
Counter Terrorism Studies - (AA)
Marketing - (BA)
Criminal Justice - (BA, BS, Grad Cert, MA)
Microsoft Access Database Applications -
Criminal Justice-Capstone Option - (MA)
(Undergrad Cert)
Cybercrime - (Grad Cert)
Microsoft Office Applications - (Undergrad
Cert)
Cybercrime Essentials - (Undergrad Cert)
Middle Eastern Studies - (BA)
Military History - (AA, BA, MA)
D
Military History-Capstone Option - (MA)
Military Leadership Studies - (Undergrad
Database Application Development - (AS)
Cert)
Digital Forensics - (Grad Cert)
Military Management and Program
Acquisition - (BA)
E
Military Studies - (MA)
Military Studies-Capstone Option - (MA)
Early Childhood Care and Education - (AA)
Education: Teaching - (M. Ed.)
N
Education: Administration and Supervision
- (M. Ed.)
National Security Studies - (Grad Cert, MA)
Education: Guidance and Counseling - (M.
National Security Studies-Capstone Option
Ed.)
- (MA)
Education: Teaching Concentration in
Naval Warfare - (Grad Cert)
Elementary Education - (M. Ed.)
Nursing - (BS)
Education: Teaching Concentration in
Secondary Social Studies - (M. Ed.)
O
Emergency and Disaster Management (BA, Grad Cert, MA)
Object Oriented Application Development -
Emergency and Disaster Management-
(Grad Cert)
Capstone Option - (MA)
Organizational Management - (Grad Cert)
English - (BA)
Enterprise Web Applications - (Undergrad
P
Cert)
Enterprise Web Applications Using .Net -
Paralegal Studies - (AS, Undergrad Cert)
(Undergrad Cert)
Philosophy - (BA)
Environmental Policy and Management -
Political Science - (BA, MA)
(MS)
Political Science-Capstone Option - (MA)
Environmental Policy and Management-
Post-baccalaureate Teacher Preparation
Capstone Option - (MS)
Certification Program - (Grad Cert)
Environmental Studies - (BS)
Psychology - (BA, MA)
European History - (Grad Cert)
Public Administration - (Master's)
Explosive Ordnance Disposal - (AS,
Public Administration-Capstone Option -
Undergrad Cert)
(Master's)
Public Health - (AS, BS, Master's)
F
R
Family Studies - (Undergrad Cert)
Real Estate Management - (Undergrad
Fire Science - (AS, Undergrad Cert)
Cert)
Fire Science Management - (BS)
Real Estate Studies - (AA)
Forensics - (Undergrad Cert)
Religion - (BA)
G
S
General Studies - (AA, BA)
Security Management - (BA)
Security Management - (Grad Cert, MA,
H
Undergrad Cert)
Security Management-Capstone Option Hazardous Waste Management -
(MA)
(Undergrad Cert)
Sociology - (BA)
History - (AA, BA, MA)
Space Studies - (BS, Grad Cert, Undergrad
History-Capstone Option - (MA)
Cert)
History-Practicum Option - (MA)
Space Studies-Capstone Option - (MS)
Homeland Security - (BA, Grad Cert, MA,
Sports and Health Sciences - (BS)
Undergrad Cert)
Sports Management - (Grad Cert, MS)
Homeland Security-Capstone Option -
Sports Management-Practicum Option -
(MA)
(MS)
Hospitality - (AA)
Strategic Leadership - (Grad Cert)
Hospitality Management - (BA)
Human Resource Management -
T
(Undergrad Cert)
Humanities - (MA)
Terrorism Studies - (Grad Cert)
Humanities-Capstone Option - (MA)
Terrorism Studies - (Undergrad Cert)
Transportation and Logistics Management
I
- (BA, MA)
Transportation and Logistics ManagementCapstone Option - (MA)
Infant and Toddler Care - (Undergrad Cert)
Information Assurance - (Grad Cert)
Information Security Planning -
U
(Undergrad Cert)
Information Systems Security - (BS, Grad
Cert)
United Nations - (Undergrad Cert)
Information Systems Security Essentials -
V
(Undergrad Cert)
Information Technology - (BS, MS)
Visual Basic Application Development -
Information Technology Management -
(Undergrad Cert)
(BS)
Visual Communications - (Undergrad Cert)
Instructional Design and Delivery (Undergrad Cert)
W
Intelligence Analysis - (Grad Cert,
Undergrad Cert)
Intelligence Studies - (BA, Grad Cert)
Intelligence Studies-Capstone Option (MA)
Weapons of Mass Destruction
Preparedness - (AA, Undergrad Cert)
Web 2.0 - (Undergrad Cert)
Web Publishing - (AS, Undergrad Cert)
World War II Studies - (Grad Cert)
Appendix B:
American Public University System Campus Store
Business Plan
March 2011
Overview
Concept & Purpose
University students, alumni, staff, family, and fans of all types want to own Universitybranded merchandise so they can proudly display their school affiliation and further
connect with their community. In a traditional University setting, the campus store is an
expected entity and is typically located at the hub of student fellowship and activity. For
those invested in the school, a campus store can serve as a strong contributor to
community and ultimately reinforce a strong sense of pride within and outside the
―walls‖ of the campus. From the institution’s perspective, a campus store supports
brand awareness – providing one conduit for advocates of the University to help spread
the word about the school.
At American Public University System, we are fortunate to have a groundswell of
activists who help build positive awareness for American Military University and
American Public University. The number of potential advocates is large and growing,
today more than 100,000 members strong and comprised of students, alumni, faculty,
staff, partners, and others. At the same time, we are challenged to build a sense of
community within an online campus environment – and one that has achieved limited
brand awareness. The establishment and cultivation of a robust campus store is one
component of APUS’s broader strategy to satisfy the school spirit needs of students and
leverage that distinctive APUS school pride to enhance institutional brand awareness
and sense of community.
Our Campus Store Mission:
To offer affordable, desirable, school-branded merchandise to the APUS community so
that they may showcase their school pride and feel a stronger connection to the
University.
History
APUS has operated a campus store for at least 8 years in some form or fashion, with
support from at least 3 different vendors and the marketing team. In 2006, we ended
the relationship with our first vendor, Allied Office Products and transitioned to
Midwest Promotions, due to suboptimal customer experience and management, and
lack of scalability.
Before the transition, we established criteria for the store and examined a number of
business models and vendors, including those contracted by our online and traditional
peer institutions. The concept of bringing the store in-house was considered and
rejected due to the complexity of sales tax/accounting requirements. We also
eliminated those vendors who exclusively connected a campus store to the more
lucrative bookstore components (efollette, for example), given our long-standing
contract with MBS (who does not manage campus stores). We also considered and
eliminated vendors who solely manage fulfillment of orders, as we needed a third party
to manage sales transactions and processing.
Ultimately, we selected Midwest Promotions and arranged a shared purchase model
whereby APUS and Midwest each purchased a 50% share of the inventory up front, then
APUS received reimbursement based on store sales each quarter Store merchandise
was sold at cost in order to offer the most affordable prices possible for our students.
With MidWest Promotions, we were able to create a more robust online customer
experience and add significantly to the variety of merchandise available. Unfortunately,
some products were prohibitively expensive (despite being sold at cost), and the vendor
was unable to scale sufficiently as we grew with the upfront purchase model.
In 2008, a decision was made to migrate to the current vendor. By this point, we were
serving triple the student community and rapidly growing alumni and APU segments.
We identified a new vendor, SureShip, who shared our desire to provide highly
affordable, quality products. This vendor was local and connected to a large apparel
production company (G&G Industries), which allowed them to offer products at lower
cost. Our an internal inventory ceiling has been $75,000for this endeavor.
Our requirements for the campus store:
- The campus store operation should be totally outsourced so that APUS has no tax
issues, including sales tax or personal property tax.
- Continuing to offer items at cost is desirable; in fact, a profit would position the store
as a line of business, which is undesirable. Note: this is consistent with our purpose and
ongoing criteria for the store; we sell items at cost and have no desire to profit.
- Have a contract that says we will provide a ―book of business‖ to the vendor, and will
provide them a certain amount of money to do what they need to do on our behalf. This
money awould be a ―pre-paid asset‖, an ―interest-free loan‖, a ―deposit‖ or an ―advance‖
of up to $100,000. The contract would also stipulate that whatever merchandise the
vendor purchases with our money would become ours if the contract is terminated. The
vendor’s insurance company should cover the cost of the merchandise in the event of
fire and would function similar to a security deposit on an apartment that you get back
when you move out. This is akin to the arrangement we had with Midwest Promotions.
- APUS doesn’t want the vendor to send us invoices for sales or the other types of things
that would make it appear we are running this business ourselves. We simply wantto
provide some money, have a vendor run everything, and have a means for students to
get merchandise.Current store:
Snapshot of 2010 & Q1 2011 results and analysis
In 2010, the average web sales by month were $2,430 with an average of 79 orders per
month equaling approximately $30 per order.
2010 Web Sales by Month
Avg. sales/month = $2430
$3,500.00
$3,000.00
$2,500.00
$2,000.00
$1,500.00
$1,000.00
$500.00
$0.00
2010 Web Sales by Month
The current store contains a variety of school branded merchandise, and all orders are
processed through an online transaction service managed by SureShip via the website,
which is also hosted by SureShip. Prior to stocking the store initially, we surveyed
students and alumni regarding the types of merchandise they would like to see in the
store. We then stocked the most popular items suggested, based on our available
resources. Since the initial survey, we have regularly invited feedback regarding new
items (and existing items) – feedback we use to make changes or additions to the store
today. As inventory levels go below $75,000, we purchase additional merchandise to
replenish the existing stock or add new items. The top items sold in 2010 are below.
Top AMU Items Sold
•Ceramic mug
•Window decal
•Star decal
•Pen
•License plate frame
•Duffle bag
•Travel mug
•Giftset: business card holder &
pen
•Hooded sweatshirt: Gildan brand
•Masters of Disaster (MoD) Navy
polo
Top APU Items Sold
•Duffle bag
•Window decal
•Ceramic mug
•Travel mug
•Ladies short-sleeve t-shirt (in
various sizes)
•Mens short-sleeve t-shirt (in
various sizes)
•Mouse pad
In 2010, we added branded merchandise for our Masters of Disaster (MoD) community.
Items are available under the AMU and APU brands and include polo and t-shirts, hat,
mug, and padfolio. The MoD items are very popular in the store; the navy polo was
amongst the top 10 items sold in 2010.
The beginning of 2011 is showing stable growth in the campus store. In January, sales
totaled $2,788 with 83 orders and February sales totaled $2,629 with 99 orders. During
the first two weeks of March, we have more than 50 orders with an average order total of
$35 per order. We are selling more merchandise each month, and average orders per
transaction are increasing.
Promotion for the store is primarily directed toward students and alumni via the
University e-newsletters, and access to the store can be found on the main website, at
the campus login homepage, and in the campus. We are able to offer discount code
promotions on the site tied to generating demand from specific segments or to broader
awareness and inventory movement goals.
Strengths and Challenges
Strengths
Challenges
Positive customer
service; quick response
time
Inventory ceiling of
$75,000
Enhanced customer
experience through
eCommerce
Vendor lacks
capability for Just-inTime inventory
Merchandise
offered at cost
Supply vs. demand
(available stock)
Overall, we rarely receive complaints from customers regarding their store experience or
satisfaction with products they order. The vendor fulfillment process works smoothly,
and the rare complaints have been handled swiftly and to the customers’ satisfaction.
Some key promotional campaigns added to increased sales from the store in 2010. In
January, a holiday promotion (free ceramic mug for orders above $50) helped increase
our sales per order and reduce inventory. In October, a discount code box was created
and a sale category was added. The ability to offer discount codes rewards loyalty by
incenting repeat customers, generates demand from new customers or sub-segments,
and supports broader awareness and inventory management goals. The sale category
allows quick inventory reduction for slower moving products and discontinued brands
and opportunities for additional items to be added to orders. Both of these additions add
significantly to the customer experience and to our ability to manage inventory.
The following products were added into the store in 2010:
MoD polo shirts with updated logo
MoD mugs with updated logo
Athletic shorts for men and ladies offered in a variety of colors
Alumni polo shirts
Alumni ceramic mugs and travel mugs
Nike Dry-fit polo shirts for men and ladies in a variety of colors
AMU & APU short- and long-sleeve polo shirts with updated logo
The following products were moved to the sale category in 2010 with plans to be
discontinued due to manufacturer stocking limitations and/or sub-optimal sales
volume:
Class of 2010 t-shirts
MoD items with outdated logo (polo shirts, hats, and mugs)
Select Under Amour products (hooded sweatshirts, polo shirts)
AMU & APU short- and long-sleeve polo shirts with outdated logo
Challenges of the Current Model
The inventory ceiling presents the greatest challenge to our growth potential. The
current level equates to less than $1 per student and prevents the store from carrying a
larger range of merchandise, creative niche items or designs, and higher stock of
inventory. As the APUS community grows, the store needs to grow with it. If we can
increase the internal inventory ceiling, we can grow the store significantly.
Beyond increasing our inventory limit, we are also piloting the concept of licensing our
logo to college store vendors who create just-in-time products. The concept is also
desirable because many of these sites offer independent promotion which can increase
the visibility of our brands (and merchandise). Our current vendor cannot offer printon-demand capabilities, which is another limitation we’d like to overcome in the future
with our core provider, SureShip or otherwise. Without a just-in-time inventory model,
there are limitations how much inventory is on-hand. All products have a minimum
quantity requirement to order (especially for non-apparel items). The inventory ceiling
prevents carrying enough stock for apparel items (specifically when more than 5 sizes,
multiple color options, and fits for ladies must be offered). This causes a supply and
demand issue that creates bottleneck in fulfilling orders. Items run out of stock more
frequently than the ability to re-order them.
We rely on vendors, such as Under Armour (UA), to have enough supply to keep our
inventory stocked. This fall, there were many delays in ordering the UA hooded
sweatshirts and polo shirts (the AMU brand only) in select sizes and our color options
and eventually UA discontinued them. We had to contact customers who were waiting
for orders to be filled and explain the situation. In the short-term, we offered the same
brand of hooded sweatshirts (Gildan) our APU constituents could buy and introduced a
Nike Dry-Fit polo shirt to replace the UA polo shirt products.
Goals & Objectives
Goal: We seek to offer a campus store that can adequately serve and delight our growing
constituency.
It is clear that the current vendor and inventory model cannot support this goal.
Key Objectives:
1. Build a broader customer base among our constituency.
2. Provide a delightful customer experience.
3. Be nimble enough to offer the variety of merchandise our customers demand, at a
price they can afford.
Key Findings and Recommended Solution
We have researched a number of solutions and ultimately recommend a multi-tiered
solution and a phased approach for implementation which is based on resource
constraints, organizational priorities, and other institutional initiatives. Our findings
and recommendation follow.
Landscape
Models offered
•Just-inTime
•Vendormanaged
•Licensing
•Vendormanaged
•Customermanaged
• Vendormanaged
• Licensing
Optimal
Feasible
Undesirable
Not
Viable
•Customermanaged
1. Vendor-managed: similar to our current model; vendor manages inventory, sales
transactions, and fulfillment)
Strengths
o Industry experience/expertise
o Inventory costs remain on vendors books until sold to customer
o Quality & assurance controls
o More hands-off for customer (APUS)
Weaknesses
o Customer has less control of quality and assurance
o Caters to larger clients
2. Just-in-time (JIT)/Print-on-demand (PoD): products are produced only when
ordered
Strengths
o Wide variety of products available to be offered
o Reduced setup time
o Synchronized order and production schedules
o Reduced warehouse and inventory costs
o Allows for licensing opportunities
Weaknesses
o Risk of supply shortages due to demand changes
o Longer turnaround time to ship goods out
o Decrease QA control
3. Customer-managed: the customer has responsibility for inventory management
& decisions – opposite from vendor-managed, but similar to JIT inventory
Strengths
o Has a clear picture of inventory and demand for products
o Quality & assurance controls
o Improved customer service relationships
o Higher cash flow
Weaknesses
o Accounting liability
o Requires significant staffing resources from customer
4. Licensing – a company agrees to allow another company to promote and sell
products on their behalf in the market
Strengths
o Little to no inventory requirement
o Marketplace expertise
o Receive royalties on sales
o Wide variety of products available to be offered
Weaknesses
o Credibility can be compromised if deal goes sour
o Poor ROI if target audience is unknown or channels poorly
researched
The biggest difference between the just-in-time inventory and licensing models is that a
third party company agrees to use our logo and/or approved art and fulfills orders using
their product catalog. We would receive back a percentage of those sales but have a
hands-off approach in the day-to-day activities.
Just-in-time inventory requires minimal warehouse space and allows us the flexibility to
increase the array of merchandise offered as well as the ability to add to or adjust
products quickly. Customers will have a better shopping experience because they would
not see as many low or out of stock products. Perhaps most appealing, JIT allows the
store to grow with a growing and diverse APUS community.
We understand that a just-in-time inventory model can be restrictive in a quick
turnaround for accessory items (i.e. mugs) if minimum quantities are required to be
ordered. The ideal solution would then be to create a solution that allows for some
limited inventory but is primarily based on a JIT model.
The campus store vendor market is vast and highly fragmented. A summary of the
campus store models our competitors offer follows.
Competitors
Capella University
Provider - Data Print Distribution
Products offered in school colors (examples include)
o Accessories (mugs, totes, journals)
o Apparel (polo’s/t-shirts/jackets)
o Sale category
Customer prices considerably higher than SureShip
Site layout is clean and clear
Discount codes free shipping options are provided
Available stock is shown for consumer
o Model most like used is customer- or vendor-managed inventory
Strayer University
Provider – Benchmark Branding
Products offered in school colors (examples include) at prices competitive to
SureShip
o Apparel (polo and t-shirts, outwear, hats, sweatshirts)
o Accessories (business card holder, duffle bag, bookmark, mugs)
o Alumni gear
o Sale category
Site layout is clean and clear
Available stock is shown for consumer
o Model most like used is customer- or vendor-managed inventory
Walden University
Provider - Halo Branded Solutions
o Licensing link – mylogogear.com
Products offered in school colors; includes a nice flash bar to sort quickly; prices
competitive to SureShip
o Apparel
o Accessories
Navigation is clean and easy
Inventory model most like a combo of vendor-managed and JIT
Ashford University
Provider – CompanyCatalog
Products offered in school colors
o Accessories (deck of cards, journals
o Apparel (polo and shirts)
 Port Authority is a great brand being sold – higher priced, but good
quality
Search function makes for easy navigations and site is clean and uncluttered
Inventory model – unsure if it’s a JIT or vendor-managed inventory system.
University of Phoenix
Provider appears to be a licensing company – InMartGroup.com
Inventory model – appears to be JIT inventory system given the amount of
products offered
The variety of products and color offered in this store is overwhelming, but most
likely proportional to their student body
Prices are affordable and products available in anyone’s price range
Merchandise is not categorized by men, women, etc.
o Listed by category (alumni, accessories, apparel, graduation, home &
office, etc.).
Proposed Solution
Our recommendation is that we leverage our past learnings in this area (vendor
experiences, customer behavior) to create a custom solution that combines licensing,
just-in-time inventory, and a limited vendor-managed inventory. We have an
opportunity to combine this initiative with the organization’s effort to find a new book
vendor – this would open our options to large book and merchandise vendors we could
not access previously. While the optimal campus store vendor may not tie to the
University bookstore, we propose a two-pronged search that ties to Dr. Stielow’s effort
to find a new book vendor and simultaneously pursue a campus store only option. A
terrific advantage of a joint provider could be the ability to send spirit merchandise with
books (e.g., students in senior level graduate courses could receive a spirit item or COLL
100 students could receive a bookmark with a discount code for campus store
purchases. The options are endless.).
Implementation: A 3- year Plan
2011
Vendor management: As we begin to research other vendors, we will continue to keep
our current vendor-managed store running optimally. Our experience is that vendor
transition takes approximately 6 months once a new vendor-managed option is
identified. We budgeted in 2011 to maintain the current inventory ceiling of $75,000,
but we will heavily utilize discount promotions to promote the store and to deplete and
replenish inventory.
Licensing: We will identify a manageable number of licensing vendors (e.g., Skinit) that
have a positive reputation, offer a variety of merchandise that our customers want – at
affordable prices, and offer favorable terms regarding ownership of inventory and startup costs. We will utilize the majority of the roughly $25,000 in our 2011 budget to
support these efforts and make more merchandise available to our community.
Just-in-time models: This year we plan to research and seek information about
partnerships from leading providers in the university spirit merchandise industry and
make a recommendation, in early Q4, regarding a new vendor that will meet our current
and anticipated needs.
Key Steps
Timing
Cost (subject to change)
Stock store as needed to meet
current demand; promote
items aggressively
Ongoing
TBD
Look at licensing vendor
options; discuss possible
partnerships with top
providers
April 5 - April
30, 2011
TBD
Develop a Request for
Information (RFI) proposal to
add to the bookstore RFI and
send separately to vendors in
marketspace; speak to
independent parties close to
marketspace to discover
additional, reputable options
April 1, 2011
(bookstore
RFI); AprilJune 2011
80-100 hours
Examine RFI responses from
potential vendor management
providers
May – July
TBD
Reach out to potential
providers to discuss
opportunities for vendor
June – August 100+ hours
management
Select managed vendor and
licensing provider(s) and
structure solution,
implementation plan
July –
December
TBD
Maintain SureShip
relationship; plan transition
when appropriate
On-going
until further
notice (Q3Q4)
3 hours/week
Promotion: In 2011, we will build awareness for new licensed and managed
merchandise by offering more campus store promotions and promoting these on the
student login page, within the student lounge, in social communities, and in the student
newsletter (communications channels used today).
2012
In 2012, we recommend budgeting additional funds to stock inventory in a vendormanaged campus store. We propose a budget increase that would allow us to make
significant strides toward stocking the store with enough variety and volume of
merchandise to meet demand. One of the values of having more inventory will be the
ability to broaden niche merchandise (Masters of Disaster-type brands, ―fun‖ versions of
the logo/campaigns, etc.)
To manage the increasing volume and complexity of the campus store, we anticipate
needing a half-time FTE in marketing at a manager level. This individual would manage
store vendors, student promotion, coordination of graphics needs, and research into
new licensing, product trends, and other opportunities. We would combine this role
with the management of other spirit/referral programs (ambassadors, mascot) as a fulltime FTE need. Currently, this role is being met with 50% of an FTE within marketing,
so this represents an addition of .5 FTE.
In 2012, we would look at expanding upon our licensing relationships, based on the
success of 2011 endeavors and learnings. We will also increase promotion of the store,
based on newly available options and avenues for purchase.
2013 and beyond
We would continue to monitor the growing diversity and volume of needs from our
constituency and the vendor options available, responding with additional product and
licensing options. We anticipate the needs to grow and become more diverse, and the
proposed 2011 and 2012 model adjustments will allow for this anticipated need for
ample, agile scalability.
Expand campus store and licensed
affiliations, offering a wide variety of
innovative, desired products
Nurture and expand new vendor
relationship(s), increase brand awareness
Search for a new vendor management
providers, establish licensing
agreements
2011
2012
2013