Office Briefs
By Maria Varmazis -- Purchasing, 1/17/2008 7:00:00 AM
Office suppliers see weaker demand than expected
Office product manufacturers and suppliers are reporting a slowdown in demand heading into the new year, which could give office product buyers increased leverage in 2008. Analyst Dan Binder at Jefferies & Co believes minimal job growth and the national housing crunch have all contributed to a weaker office product market. "With credit drying up and housing collapsing, you probably have some tie-in with small business spending," he says.
Newell Rubbermaid, which makes Rolodexes and Sharpie markers among other items, announced in early December that a slowing demand for office products hit its sales, which were "essentially flat" when compared to the previous year. The company pointed to some office retailers reducing inventory to cut costs, a major concern especially as some major office retailers such as Office Depot and Corporate Express have seen slowdowns in sales, especially in the second half of the year.
In a recent earnings statement, Office Depot said its first-quarter sales would remain challenging. Reuters reports that "in order to lure the North American small business owners who are among its key customers, Office Depot said it would extend lower entry price points to them. The company also said it would offer a low price guarantee that includes matching competitors' prices on identical products, and it disclosed plans to expand its private label brand."
However, the picture is not entirely bleak for office retailers, as Staples announced better-than-expected earnings despite slowdowns in sales.
Staples launches online office product catalog
Framingham, Mass-based office retailer Staples in December released its first online supply catalog, concurrent with the launch of its traditional 2008 paper catalog. The entire paper catalog of approximately 8,000 products is now online for office supply users to browse for products they need, and then route their purchase order to their office supply buyer for approval by paper or e-mail.
Staples vice president of contract marketing, Marci Grebstein, says the online version of the company's catalog reduces paper while also reining in non-contract spend. "If people say that they can't get to the catalog, they do their own thing and then maverick spend occurs," she says. "This gets maverick spend under control."
Office Depot honors Smead Manufacturing
Office Depot recently selected Smead Manufacturing Co., a supplier of filing and organizational products, as its "Supply Chain Vendor of the Year" for 2007.
The annual award is given to the top performing supplier based on the highest overall fill rate (percentage of accurate, on-time orders). Office Depot officials said Smead achieved an overall fill rate of more than 99% over the past year.
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