Office Supplies is an area of expenditure that has evolved over the past decade. Where once it was a corner-store sized operation, it's now an area largely controlled by Global or National Giants. Despite this, there's still almost no barrier to entry, and a constant stream of small ‘car boot' operators. Which one is your buyer of office supplies dealing with?
Wait a minute - just who is your buyer of office supplies?
In a small organisation, it's likely to be somebody quite junior. After all, we're just talking about the paper clips, right? Or perhaps you have managed to delegate the task to someone who's on top of it
- to such a degree that you have different suppliers for your paper and your pencils?
In either case, it's likely that there isn't a critical eye trained on your overall expenditure in this area
- and it's expenditure that can add up to more than $100,000 a year!
In more sophisticated operations, the purchasing department will take care of office supplies, generally through contracts with preferred suppliers, which are reviewed fairly regularly. Often, due to time constraints and staff turnover, however, these reviews are not as stringent as they might be and valuable opportunities for savings can be lost.
On top of this, you can add to the fact the enormous discrepancies in cost and descriptions of products between suppliers, as well as the fact that the office supplies area has greatly broadened in recent years, taking in IT, paper and data storage, and more.
Suddenly, the simple stationery cupboard is looking a lot more complicated.
Not with Expense Reduction Analysts (ERA) involved. An ERA consultant is familiar with every segment of the Office Suppliers market, from the national organisations to the separate operators. They approach your office supplies expenditure with a fresh and impartial eye.
"Buyers within organisations often build up relationships with suppliers - to the detriment of the bottom line," says ERA consultant David Rounsevell. "Our aim is a clean sweep, aiming to simplify procedures and remove the incidence of multiple buyers (suppliers) and multiple delivery points."
This occurs when each department within an organisation is responsible for its own suppliers. While new ordering systems can cause a level of discomfort for staff, ERA endeavours to facilitate smooth implementation of change.
“Many clients have never addressed their office supplies expenditure, placing it in the too-hard
basket," says David. “It is, however, a great starting point for savings and ERA is there every step of the way to
assist."
So where do they begin?
Firstly, the ERA consultant will build a detailed profile of your office supplies expenditure and suppliers from existing data, including accounts records and through speaking to your personnel. From this profile, the consultant is able to put together a list of the products your company is actually using (rather than just what is being ordered), and conducts a product usage review to see whether there is a better alternative. From this, a buying list is created.
ERA will also stringently review and compare your incumbent suppliers with potential new suppliers. With their expertise in the industry, ERA consultants are able to cut through the confusion and assess all offers at face value, ensuring you get the best value for money.
The next step is implementation of a new system that not only shows you where potential savings are hiding, but gives you a plan to help you find them. For the following
24 months, the ERA consultant will be on hand to check errors and keep your company on the savings path.
“Office supplies can be one of the most labour-intensive areas of expenditure to
manage," says David. “With the help of an ERA consultant, however, a client can easily achieve very rewarding savings
results."
