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