Page 15 - BOSS Today Issue 20

Why Are FM Supplies growth can there be in this 4. To what extent do FM 13. Which FM brands are most
Important To The UK sector? Have the OP channels supplies buyers also buy important to these buyers?
OP Industry? already taken as much share as OP items? 14. How acceptable are
In the late summer of 2012, they are ever likely to obtain?” 5. From which supply private label products
Martin Wilde Associates (MWA) In short - is the opportunity channels do these in these categories to
and OPI produced a research presented to the OP industry buyers currently buy these buyers? What price
report entitled ‘Boiling The by the FM category a mountain these products? differential is required from
Frog: A Guide To The Behaviour or a molehill? 6. What share of purchases equivalent branded
Of Young Office Workers’. This As promised in the July/ does each channel account products?
ground-breaking study of August issue of BOSS Today, for, currently? 15. How frequently are orders
office working habits came MWA and OPI have now 7. To what extent are these placed for these products?
to the sobering conclusion published a new market buyers interested in buying 16. What is the average order
that demand for many research report entitled ‘FM FM supplies from OP value for these products?
conventional office products Supplies: Mountain or Molehill?’ suppliers? 17. How and where do buyers
would be in structural decline (there are - in fact - two reports 8. What barriers are search for products?
henceforward. available: one is focused preventing these buyers 18. How will the purchasing
Fortunately, in recent exclusively on the UK market, from sourcing FM of these products change
years, many OP distributors the other on the US). supplies from OP suppliers? in future?
have increasingly turned to 9. What would encourage
other product areas, one What Does The buyers to purchase FM So, What’s The
of which has been facilities Report Cover? supplies from OP Conclusion?
management (FM) supplies. The UK report is based on suppliers in future? Firstly, there is no doubt that
Certainly, OP distributors have 300 interviews carried out 10. What other products these are large and growing
seen significant growth in their with end-user buyers of FM do these purchasers buy markets: overall, UK businesses
sales of FM recently, and these supplies, supplemented by that they might be spend around £165 per worker
now account for 11-12% of in-depth interviews with OP interested in purchasing each year on average on these
total OP wholesaler sales in the wholesalers and dealer groups from an OP supplier? four product categories (Figure
UK, while for OP dealers the to provide clear answers to 18 11. On what criteria are FM 1). The research also indicates
share can be between 7-15%. key questions: suppliers selected? that many buyers expect their
However, all are consistently 12. What service levels are purchases of these products to
reporting that this share is 1. What is the identity of the required by these buyers? increase in future.
growing, at a time when purchasers of FM supplies? Figure 1: Product Categories Covered By The Report
growth has been hard to find 2. How many FM product
elsewhere: categories do these buyers Category Includes
“Core stationery sales are purchase? Breakroom/Catering Products Food; beverages; catering utensils,
appliances & supplies.
reported to be 9% or even 12% 3. How much do they spend
down this year. We don’t focus on these products Cleaning/Janitorial Products Cleaning chemicals, materials and appliances;
washroom/restroom cleaners; hand & skin
on stationery now....” annually? How many care; towels, dispensers & accessories; refuse
products.
- Major UK OP Dealer Group staff do they buy Health, Safety & Security First aid & health supplies; PPE; fire & safety
This is encouraging news these products for, Products products; cash, key & security products.
for the OP industry, but the and what is the average Mailroom, Shipping & Mailing, packing & shipping supplies &
question is: “How much more annual spend per worker? Packaging Products equipment.

December 2013/January 2014 | BOSS TODAY 15

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