Industry Statistics...Who Wouldn't Want to Know?

For most companies, office supplies are not considered a top priority. As a result, the thankless task is often thrown upon an unsuspecting receptionist. Larger companies may have a purchasing agent but they too often lack the motivation to properly analyze this vital product category.

Granted office supplies is a rather mundane topic, but is there a smarter way to buy them? With over 25,000 items, it is a huge industry. Over the last 15 years it has been dominated by the mega national office supply companies. We all know who they are as they spend an enormous amount of money to market themselves with jingles, commercials, and flyer's effectively making sure we don't forget them…and why not? The industry is valued at over $250 billion dollars.

At first, these behemoths dramatically lowered prices in a successful effort to eliminate many of the smaller "home grown" office supply companies. Most are now out of business. After the initial carnage, prices slowly began to rise and the transition towards internet ordering began in earnest. In 2005, commercial office supply ordering via the internet was a mere 5%. By 2010, the number is projected to balloon to 40%. Soon after, commercial internet ordering will dominate, as the days of a salesperson trekking through the office with a note pad and a box of donuts becomes obsolete. From a strict economic stand point, the overall price reduction did benefit the consumer while forever altering what was an old school business methodology.

Customers are now sufficiently spoiled to expect deliveries the next day. A hospital has two days to deliver a replacement heart in an ice chest, but in the office supply world, the need to deliver a tape dispenser the next day is all too real. This is now standard practice.

The inexperienced buyer will often look for lower prices through multiple catalogs or toggle through various websites in search of the best "deal". Perhaps saving an extra .30 on a box of file folders can be construed as doing a good job but it is incredibly inefficient. Often not calculated is the lost time and the expense in terms of wages for such an absurd exercise. Still, it's hard to get a buyer excited about office supplies and how they could be purchased more effectively.

Here's what the typical office supply purchaser may not realize. Generally, a company's operating budget is comprised of almost 97% labor expenses, 2% furniture and computer hardware, and only 1% general office supplies. Although it represents such a small fraction of the overall budget, because it is so high profile, office supplies are often the first things attacked during cost cutting efforts. Of course you need to make sure you're paying a fair price for the goods; but, even more importantly is ensuring that the procurement process is efficient. Addressing the labor associated with buying is in fact addressing the 97% of the cost rather than focusing only on the 1%.

Another change to affect commercial office supply transactions is the proliferation of corporate credit cards. Companies of all sizes now understand the ease associated with credit cards, the labor associated with paying via this method is significantly less, and if the right card is utilized, the company can earn valuable points from the card issuer. It simply makes sense.

So, if you are responsible for the thankless task of ordering the supplies for your company, know that effective buying is the result of efficient practices along with the actual cost of the product. You can buy office supplies online the smart way with OfficeBundle.com.

New Products?

Has everything for the office that can be invented already be invented? Well, there are always product improvements on the basics but I wouldn't look for any creative new product in 2008. Simple adjustments to the old standbys actually have very nice effects. Smead for example has altered their production methods to create a built in tab that eliminates the need fro those annoying plastic tabs. Sounds simple and it is but the effects are hugely efficient. For those folks who concentrate strictly on the pennies saved and not so much the quality and functionality of a product, you may in fact be altering the industry. Look for more products to come from China. In my opinion the quality is lacking but you do in fact save a nickel or two. For some items it may not matter at all but for others the difference is quite noticeable. Pens that last 3 days, staples that are too brittle, these are just two examples. The impact is being felt by the American manufacturer as less emphasis is placed on innovation and more on price reduction. There will always be some newness brought into the market but for our industry the volume isn't what it once was. When you buy your office supplies, consider who is using it, and how it is being used. The answer may suggest that you focus more on quality and function then price. When dealing with high volume commodity items like office supplies, the true savings are found in the impact it has on efficiency. Save .60 cents on a box of pens or save the time looking for something that writes well? Perhaps there is no right answer?

This year will be different...

It's that magical time when we mentally start out with a clean slate. Gone are the old habits that held us back last year. If the previous year didn't live up to our expectations, well this new year better look out because here we come! Right? That's the idea at least. How hard can be to string together 365 good days? How about 200? Or even 80? Give it your best shot and make 2008 your year. We will.

Back the glorious world of office products, now is also the time when manufacturers create new promos and product incentives so sign up for our e-mail specials to be updated on the new ones.