Office Products – Supply chain changes – Opportunity or threat! | News

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Not since the early 90’s has the UK Office products industry seen so much change and turmoil. During that time WH Smith purchased the largest 5 independent office products suppliers in the UK (Cartwright Brice, Satex, HJ Chapman, Pentagon and Sandhurst). Not long after the purchase and integration of the 5 companies into WH Smith Business Supplies, WH Smith sold the group to the French company Guilbert who subsequently sold out to Office Depot.

Now we have major changes with Vow buying Banner, Spicers merging with Office Team, Staples (previously Corporate Express) making a takeover bid for Office Depot and Lyreco continuing to grow and diversify. What are the opportunities and threats?

Vow (Vasanta Group) and Banner (Office to Office Group) merged in 2014 and have been reviewing logistics platforms and product ranges. How will this change the way they approach the market with Vow being a wholesaler and Banner a direct sales organisation – watch this space!

Office Team owners Better Capital Group saw an opportunity to strengthen the business by purchasing the wholesaler Spicers. The joint statement by SPOT (Spicers Office Team Group) confirms that the two will trade separately but leverage their buying potential. Subsequently they have merged some warehouses and become more aggressive in pricing. However all may not be well as a new computer system could be imminent!

Staples made a bid for Office Depot last year and speculation grows on whether it will be passed by the US Federal Trade Commission. If it does succeed it will make it the world’s largest retailer and business to business office products supplier. In the UK Staples have moved warehouses and changed computer systems, one went well with the other being a complete disaster!

Lyreco continue to be a profitable family owned business. Their service continues to be good but they have recognised that they need to expand the range of services and products they supply. This includes print, janitorial supplies and personal protective equipment. They have had success in some areas and continue to fail in others.

The changes detailed provide a great opportunity to get better value from the suppliers. However choosing the right supplier and relevant service profile is the key. Having an understanding on how some of these changes will affect the service delivered is also important.

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