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Trends 2008

by ArabianBusiness.com staff writer  on Wednesday, 16 January 2008

In 2005, the global office and supplies market reached US$139.4bn; a remarkable increase of 2.8% over the previous year. Paper-based products were the leading revenue generators for the global office service and supplies market that was valued at an estimated US$58.4bn. By 2010, the global market is estimated to reach a value of US$162.4bn, with a compound annual growth rate (CAGR) of 3.1% for the 2005-2010 period.

The global office and supplies market has more than 40,000 products from office furniture and storage solutions to stationery and meeting supplies. The challenge facing office managers today isn't ‘what not to buy' but how to create an office work environment that is conducive to productivity and profitability.

Travails of the office manager

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In most small to medium businesses (SMBs) the office manager has the last say in purchase decisions. With numerous suppliers clamouring for business, it is an arduous task for any office manager to ensure that purchase decisions are cost effective, up-to-date and in compliance with all Occupational Safety and Health Administration (OSHA) regulations.

Employees across the globe from SMBs to global corporations have one thing in common: they all spend most of their time sitting in an office chair.

Purchasing office supplies can be a no-win situation for the companies and the employees. In large organisations there are fixed guidelines and specifications for all office supply purchases, which often tend to ignore the unique needs of employees and the vast technological improvements being made in the field of furniture design in the name of cost-efficiency. Needless to say, such policies ought to reflect a small element of employee requirements as well as cost-efficiency, when decisions on furniture purchases are being made.

The key principle when purchasing office supplies is to set ground rules.

• Cost In most instances the boss or owner of a business will have the final say in the purchase decision. Usually the final say tends to favour the cost-effective option. Although the decision may be good for the bottom line in the short-term, the long-term effects may see adverse effects on employee health and balance sheet health.

• Adaptability Although it is important to ensure that office supplies purchased fit the assigned budget, a good office manager will ensure that office supplies improve productivity. As most office supplies will be used by employees on a daily basis, it is necessary that the majority of employees are happy with the office supplies.

• Suppliers With budgetary constraints and employee morale as yardsticks, it is prudent to approach a minimum of three suppliers to ensure that not only is the best deal struck but that office supplies procured also meet the key objectives. Most suppliers are open to the idea of a trial period, if they can be assured a long-term contract.

To ensure the quality and adaptability of office supplies, it is advisable to test a few items by allowing a select group of employees to use the products for a short period of time. Later, an assessment of the supplies may be provided.

• Supplies on demand An office manager should ensure adequate back-up supplies of frequently requested items so that employees are not required to wait due to lack of stock.

Critical items should be available so that office productivity is not compromised.

• Vigilance Employees, consciously or unconsciously, use office supplies for personal use.

A vigilant office manager can track employee usage of office supplies and report any misappropriation of office supplies and save businesses thousands of dirhams. Employees across the globe from SMBs to global corporations have one thing in common: they all spend most of their time sitting in an office chair. That works out to an average of six hours a day; 30 hours a week; 120 hours a month and 1440 hours a year. For an organisation, that is effectively 1440 productive hours of work per employee.

In the mid 1980s Robert L Crandall, head of American Airlines, decided to remove one olive from every dinner salad served to passengers, saving the Airline US$40,000 per year.

When Canon USA opened an office in Hawaii, the estimated cost for new chairs, desks and other office furniture was valued at US$70,000. Canon USA chose to ship excess furniture from its Jamesburg, New Jersey office, which cost the company only US$17,000. By eliminating their plant-watering services, Xerox saved US$200,000 a year. Employees initiated an ‘adopt a plant' programme to keep the plants properly hydrated.


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