Purchasing calls on office supplies distributors for help with managing demand OfficeMax, Staples offer up advice to lower costs for office buyers

By Nancy Hitchcock -- Purchasing,



Demand management, a strategy office supplies companies have been using for years, is gaining momentum in today's challenging business environment.

"What we are finding from the end user, especially in today's economic environment, is that people do want to help their companies save money," says Jim Durkin, executive vice president of North American sales at OfficeMax in Naperville, Ill. "When you give them tools to help them realize that they can benefit the company and save money, their inclination is to take advantage of that."

Staples recognizes a similar trend. "Something new has happened in the past several months because of the financial crisis: People have been self selecting demand management much more frequently," says Tom Heisroth, senior vice president of sales, at Staples National Advantage in Framingham, Mass. "The user community has moved to a greater adoption of it. It's a big benefit to Staples too because people streamline their purchases and they buy what we have in inventory, which creates fewer special orders for customers and for Staples."

Companies such as Staples and OfficeMax continuously develop solutions to help their customers cut costs. They are expanding their private label brands and offering more information on the benefits of contract compliance. Furthermore, tools on their websites provide easily accessible information to the purchasing pros that steer them to less expensive products.

WEBSITE TOOLS HELP SHAPE DEMAND. OfficeMax finds that to help customers reduce their spending, they need to provide savings information to the end user at the point of purchase. Therefore, the company developed a feature on its website, called Best Value, that shows the user less expensive alternatives to the item selected.

"We do a lot of work in the merchandising area to develop the cross-reference tables to make sure that the same items, in terms of form, fit, and function, will recommend other brands and our private-label brands as long as they fit the same form and function and that they meet the criteria that they save money for the customer," says Durkin.

Another initiative office supplies companies undertake to drive savings is continuously developing private-label brands.

Staples offers a range of branded products from file folders to furniture. The company continues to deliver value added products and environmentally friendly items such as a line of Sustainable Earth cleaning products.

A few years ago, OfficeMax began creating products with their own brand names, instead of using the OfficeMax brand. The company has launched lines of pens, pencils, highlighters, markers, and desk accessories under the TUL brand, for instance, which has been successful. Last year the company launched office accessories under the DiVOGA brand. Now, Office Max has launched a series of organizational products.

OfficeMax is also shaping demand with its managed print solution. This solution helps create a more efficient printing environment by narrowing down the number of printers a company uses and driving demand to more standardized equipment, toner, and supplies, for example.

With new tools and technology providing helpful product, company, and compliance information, office supplies companies help end users cut costs for their companies. "It's a win-win for everyone," says Staples' Heisroth.