| For most companies, office supplies are not | | | | The inexperienced buyer will often look for lower |
| considered a top priority. As a result, the thankless | | | | prices through multiple catalogs or toggle through |
| task is often thrown upon an unsuspecting receptionist. | | | | various websites in search of the best "deal". Perhaps |
| Larger companies may have a purchasing agent but | | | | saving an extra .30 on a box of file folders can be |
| they too often lack the motivation to properly analyze | | | | construed as a small victory by some, but it is |
| this vital product category. | | | | incredibly inefficient. Often not calculated is the lost time |
| Granted office supplies is a rather mundane topic, but | | | | and the expense in terms of wages for such an |
| is there a smarter way to buy them? With over | | | | absurd exercise. Still, it's hard to get a buyer excited |
| 25,000 items, it is a huge industry. Over the last 15 | | | | about office supplies and how they could be |
| years it has been dominated by the mega national | | | | purchased more effectively. |
| office supply companies. We all know who they are | | | | Here's what the typical office supply purchaser may |
| as they spend an enormous amount of money to | | | | not realize. Generally, a company's operating budget is |
| market themselves with jingles, commercials, and | | | | comprised of almost 97% labor expenses, 2% |
| flyer's effectively making sure we don't forget | | | | furniture and computer hardware, and only 1% general |
| them...and why not? The industry is valued at over | | | | office supplies. Although it represents such a small |
| $250 billion dollars. | | | | fraction of the overall budget, because it is so high |
| At first, these behemoths dramatically lowered prices | | | | profile, office supplies are often the first things |
| in a successful effort to eliminate many of the smaller | | | | attacked during cost cutting efforts. Of course you |
| "home grown" office supply companies. Most are now | | | | need to make sure you're paying a fair price for the |
| out of business. After the initial carnage, prices slowly | | | | goods; but, even more importantly is ensuring that the |
| began to rise and the transition towards internet | | | | procurement process is efficient. Addressing the labor |
| ordering began in earnest. In 2005, commercial office | | | | associated with buying is in fact addressing the 97% |
| supply ordering via the internet was a mere 5%. By | | | | of the cost rather than focusing only on the 1%. |
| 2010, the number is projected to balloon to 40%. Soon | | | | Another change to affect commercial office supply |
| after, commercial internet ordering will dominate, as the | | | | transactions is the proliferation of corporate credit |
| days of a salesperson trekking through the office with | | | | cards. Companies of all sizes now understand the |
| a note pad and a box of donuts becomes obsolete. | | | | ease associated with credit cards, the labor |
| From a strict economic stand point, the overall price | | | | associated with paying via this method is significantly |
| reduction did benefit the consumer while forever | | | | less, and if the right card is utilized, the company can |
| altering what was an old school business methodology. | | | | earn valuable points from the card issuer. It simply |
| Customers are now sufficiently spoiled to expect | | | | makes sense. |
| deliveries the next day. A hospital has two days to | | | | So, if you are responsible for the thankless task of |
| deliver a replacement heart in an ice chest, but in the | | | | ordering the supplies for your company, know that |
| office supply world, the need to deliver a tape | | | | effective buying is the result of efficient practices |
| dispenser the next day is all too real. This is now | | | | along with the actual cost of the product. You can |
| standard practice. | | | | have it all! |