Get A Better Paper Deal

With so many paper distributors vying for attention, here's how to make sure your in-plant gets the best price and service possible.

By Mike Llewellyn

IF THERE'S one thing Nalan Giannukos gets plenty of, it's visits from salespeople representing paper distributors.

As manager of the 18-employee Printing Services department at the University of Houston, he has worked hard to narrow down his list of dealers for the three to four paper deliveries the Texas in-plant brings in each week.

For the moment, Giannukos gets most of his in-plant's paper from distributors Bosworth and xpedx. He's happy with the service he gets from these two companies, but the road to an ideal relationship with a paper supplier isn't always an easy one.

Strange as it may seem, great offers from sales reps can become more of a problem than an opportunity for many managers. The sheer volume of sales calls and potential deals can be dizzying. It's difficult to figure out which vendor to sign on with, and even then, it's not always easy to be sure an in-plant is getting the lowest possible price.

Giannukos says his in-plant had an established relationship with Bosworth's sales rep long before he took over as manager at the university in-plant. The in-plant's relationship with xpedx, on the other hand, began when a sales rep showed up one day asking about graphics supplies. "It just so happened we were looking into graphics supplies at the time," says Giannukos.

The sales rep offered the in-plant a whole skid of coated paper.

"He said that if we didn't like it we could have the money back," recalls Giannukos.

A chance to simply "try out" a whole skid of stock is something most managers aren't offered, so Giannukos took the sales rep up on his idea, and the in-plant has maintained a relationship with the paper distributor ever since.

For Giannukos, constantly staying on the lookout for better service and better deals is all part of the job.

"Even though we usually buy from [Bosworth and xpedx]," he explains, "we'll still call up any salesman for quotes."

Bidding For Bargain Paper

The University of Houston is a state agency, and as such, every purchase has to be sent out for at least three bids. By and large, the in-plant still gets the lowest prices from its two primary suppliers. But Giannukos hangs onto the business cards he gets from all the sales reps that stop by his office. When he needs to make a purchase, he selects three of them and makes a few calls to get their quotes.

"There's a lot [of jobs done] on state contracts, and they'll have a price on paper that we can usually beat," he says.

There's a similar story at Kansas Farm Bureau Services, where Distribution Services Manager Eva Peterson says that, with care, it's possible to figure out which suppliers are ideal for a particular in-plant. Tapping primarily into Unisource and Nationwide, she says it wasn't always so easy for her five-employee in-plant to make sure it was getting the best price.

"When I took over [14 years ago], this was strictly a Nationwide shop," she says, adding that over time the in-plant tried a broad range of vendors. "Then Unisource came along looking quite good, as well."

Peterson believes that with enough attention given to finding the right suppliers based on price and delivery service, an in-plant can set up a long-term, stress-free relationship.

"If a salesperson comes around, we'll say 'Sure, we'll consider you.' But over time, a majority of them will just weed themselves out," she says, explaining that even when the price is right, a company's delivery schedule or history of service doesn't always match the in-plant's requirements.

Price Isn't Everything

Lynn Behringer, director of records management for Will County, Ill., is responsible for ordering paper not only for her six-employee in-plant, but for another eight state agencies, as well. Tapping into Lewis Paper, Xerox and Illinois Paper for her supplies, she also contends that, to get the best price, all an in-plant manager has to do is pick up the phone.

"Usually, you don't even have to wait for a fax, they'll just give you the quote right over the phone," she says.

But price isn't the only factor to consider when signing on with a supplier, she says. In-plant managers should also ask whether or not a paper distributor can supply stock that's up to par when it comes to brightness and adaptability to an in-plant's equipment.

"And delivery is so important. We've had problems in the past with trucks that don't deliver at a time when we can accept it," says Peterson, of Kansas Farm Bureau Services. "Price just sets the parameters."

Rich Bundsgaard, director of Printing Services for the University of Arkansas, couldn't agree more.He says that while mix-ups aren't commonplace, a shortfall in a distributor's inventory or delivery quality can spell disaster for a job, and can even damage an in-plant's reputation.

"There was once this time-sensitive job," he recalls. "We order the paper. We're promised it would be here the next day, and when it doesn't arrive we have to go into scramble mode."

Bundsgaard has to be sure he can depend on his paper suppliers, especially considering he orders up to $500,000 worth of stock each year—a sizable chunk of the 39-employee in-plant's $4 million purchasing budget. Still, he keeps pretty calm when it comes to shelling out the dough for paper.

By simply setting aside the time to go through a bidding process for paper, and by checking on the service history of distributors, he contends, an in-plant can save thousands of dollars.