In case you hadn’t noticed, the price of office supplies (paper in particular) is steadily rising. Part of that trend is the impact of the recent US tariffs. This reality was readily seen in an almost 15% price increase for copy paper.
And part of the reason for price spikes for paper products is the steadily rising cost of pulp. Mills have been inflating their pricing since February 2017. Thus far, a precipitous rise of 25% has been seen and that’s expected to continue into 2019.
Paper mills don’t just absorb that additional material cost – they pass it on to business consumers like you. This year alone, there have been 4 distinct price increases and like pulp, like paper – someone’s going to pay for the pulp industry’s burgeoning pricing model. After 20 years in the commercial wilderness as the rise of the internet radically reduced paper production needs, the pulp industry is in funds recovery mode.
Someone’s got to pay for that recovery, but must it be you?
Price increases in office supplies in 2019 demand creative solutions that get your company the leverage it needs to hold the line on market fluctuations and the application of tariffs.
The GPO solution, with CenterPoint Group
Managing an indirect collective spend of over $850 million, CenterPoint partners with members to routinely deliver below market pricing. This is a creative way to mitigate unforeseen price increases that bust your budget.
Our organizational relationships with Office Supply companies as well as other key categories are strong, allowing us to manage the vendor on behalf of members. MRO, Industrial and Facility Supplies and Safety & PPE are other pivotal connections we engage to service our members with a better deal and a stronger supply chain.
We’re a Group Purchasing Organization (GPO) and trusted procurement advisor, investing our members with the power of numbers. That power not only reduces their overall spend, it protects them from sudden price increases like those currently being experienced with respect to office supplies, especially paper products.
Just the facts
With CenterPoint at work, you don’t have to track price fluctuations. We closely monitor the paper market on behalf of our members, ensuring that increases are foreseen and that pricing is maintained. For 4 years running, we’ve been able to do just that for our members.
But recent increases have challenged us. CenterPoint met that challenge for our members, in a market in which end-user costs increased dramatically, at 15%. Our members were able to weather the storm with a much less staggering increase, at only 4%. When absorbed into a total spend, that amount is reduced even further, to just 1%.
That’s below the Consumer Price Index.
Optimizing your spend with the power of numbers, CenterPoint Group is able to deliver significant savings and budgetary stability. That power also provides you with ballast to whether the market’s whims and the costly impact of tariffs.
CenterPoint Group brings you the power of numbers, preparing you for the unexpected. Contact us.