Eight helpful hints for buying office supplies

Karen Prema -- Purchasing, 2/16/2006

Looking to better leverage your office supplies spend? Here's what some buyers say about getting the best buy in office supplies.

1. Bigger spend = better leverage
   If business requirements in different locations are similar, it makes sense to pursue national or multinational contracts or even a global deal through affiliate networks. The RFP process can be based on a predetermined selection of high-cost and/or high-volume items.
   —Marika Lindstrom, director ofindirect sourcing, Nokia
   
2. Supplier-managed inventory
   An alternative approach for office supplies could be supplier-managed inventory. Each buyer site has a dedicated inventory area for office supplies, and the selected suppliers replenish the inventory according to predetermined inventory levels and service level agreements. As inventory is used, cost centers are charged based on headcount.
   —Marika Lindstrom
   
3. Negotiate discounts
   Negotiate deeper discounts on your higher-volume items. If negotiating a multiple year contract, include a provision for adding/removing items as volumes fluctuate or new items are added.
   —Melanie Bringer, senior purchasing agent, American Century
   
4. Use pcards
   Buyers should order office products using pcards whenever possible to reduce transaction costs.
   —Melanie Bringer
   
5. Strong partnership with supplier
   Keane works closely with Staples to improve its supplier partnership. For example, orders placed after 3 p.m. put stress on Staples' distribution center. Asking buyers to place orders earlier can minimize returns on incorrect items. Keane's return rate is below industry average.
   —Marianne Goodman, director of administrative services, Keane
   
6. Get creative
   Look for specific aspects of contracts that can change or improve. For example, can you lock in paper prices for a six-month period? Can you lock in your contract prices for 18 months?
   —Marianne Goodman
   
7. Get (and stay) compliant
   Yankee Candle and Staples created a custom website that closely mirrors the traditional hard-copy catalog. Step-by-step ordering instructions and screen shots were sent to buyers at all locations and brought Yankee Candle to 100% online compliance within four months.
   —Gary Ingraham, senior purchasing agent, Yankee Candle
   
8. Buy online
   Buying online forces buyers to populate fields so there is less rework than with traditional paper forms. Buying online makes it easier to record and track orders. Another advantage is the potential for rebates based on the volumes through a supplier's online tool.
   —Kevin Golden, director of purchasing, Museum of Fine Arts, Boston