OFFICE SUPPLIES

OVERVIEW

In this digital age office supplies are just as important to how people operate at work.

Even the digital boffins still use office products from time to time. As office supplies are being used less most businesses should expect to reduce spending over time.

A lot of businesses still place a lot of importance on office supplies as part of an overall procurement strategy. This is not always due to spend. It may be one of the areas where rogue spend and compliance are an issue.

We often see this category open to gaming and on/off contract tactics. Suppliers use various methods to win business and claw back margin later. Those businesses that persist in using an RFP to determine suppliers leave themselves vulnerable to such methods and tactics. This should be a warning sign to business using this approach in this category. They are unlikely to get the best result or derive the best value.

THINGS TO LOOK OUT FOR

Sign-on bonus
Sign on bonuses are an up front payment from the supplier for awarding the contract. There is no such thing as a free lunch. The supplier will re-coup this cost through higher margin over time. Even worse, a sign on bonus may lock you into unfavourable terms and volume commitments.

Limited contracted basket
Offering a saving on the top items you buy means you are paying full whack for the rest. This flawed method aims to provide visibility on the items you buy most. What it usually does however, is remove visibility to the majority of items you buy. It is on these items that you end up paying more than you should.

Pack size confusion
It is common for different products to come in different pack sizes. Then there are different pack sizes in individual packages (e.g. 12 vs 10 pens). There are also bulk packs for many products to consider. Some suppliers may take advantage of the confusion created by this level of detail.

A cheaper alternative
This involves replacing premium or branded product with a cheaper product. Generic brands may offer valid ways to save over branded products. They may do a similar job but may not always deliver the same result.

Product Substitution
It is a challenge for many suppliers to maintain adequate stock levels. When stock runs out, an alternative product to meet immediate demand may be supplied. Sometimes the alternative product also delivers the supplier a higher profit. This type of predatory behaviour is more common than many would expect.

BETTER BUYING OUTCOME

Consider a more structured approach which delivers cost savings over time. The lowest basket price on a small range of top spend items at the time of consideration is a traditional but diminishing return approach that may reduce overall value.

  • A broad contract basket rather than focusing on top ordered items
  • Forget sign-on bonuses that lock you into volume commitments or limit you from moving when terms become unfavourable
  • A robust supply chain to ensure that the contract basket of products are always available

THE DEAL

Supply Clusters has partnered with Winc for all your office supply needs.

Supply Clusters members receive the following exclusive benefits through Winc:

  • Locked in contract pricing on a basket of over 9000 office supplies products
  • Unit cost savings
  • Free delivery
  • All standard product prices fixed with an annual review conducted by Supply Clusters
  • The ability to reduce vendors and standardise products

Winc customers enjoy:

  • National coverage to provide you with one supplier and consistent product nationwide
  • Easy online ordering for commodity products




THE BOTTOM LINE

Office supplies are a necessary expense but there are many opportunities to save.

  • Choosing the wrong supplier can lock you into price increases and other predatory tactics
  • Choosing the right supplier offers you a better buying outcome

You should choose a provider that offers:

  • ​A strong supply chain to deliver the products you need across all locations
  • A wide range of product at locked-in contract pricing

FIND OUT MORE

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