• Why GP did the comparison

    Some of our clients feel that the pricing on stationery items in the CUA is higher than they could achieve on their own.

    Because of the amount of work that we put into the development and establishment of CUAs, we didn’t think this was true but we decided to do a comparison.

    What did we compare?

    We selected a basket of 26 products that are among the most commonly purchased using the CUA.

    Copy paper (A4)​ Paper clips
    ​Copy paper (A4 recycled) Staples​
    ​Copy paper (A3) AA Batteries
    ​Copy paper (A3 recycled) ​AAA Batteries
    Correction tape​ Eraser
    Sticky note pads​ Highlighter
    Glue​ ​Permanent marker
    Pencils​ ​Whiteboard Marker
    Black pen​ Tape dispenser
    Blue Pen​ Notebook​
    Black Pen (medium) Dividers
    Scissors Lever Arch File
    Rubber bands Adhesive Tack

    We compared the prices on these 26 products from our CUA suppliers – Complete Office Supplies, Lyreco, and Staples with online prices from Coles, Woolworths, Officeworks and OfficeMax.

    We made sure that the comparison was consistent. The same size, measure and volume of items were used across all 7 suppliers.

    Where a supplier had several options for one product, the cheapest option was used for the analysis.

    What we found

    Coles and Woolworths did not carry some of the products selected - rubber bands, sticky notes, dividers, tape dispensers and retractable blue pens. They could also only offer plain A4 copy paper. Of the 26 products, only 18 were common across all providers.

    The least expensive basket of 18 goods was $18.77 while the most expensive was $48.45. The three cheapest baskets were those of the suppliers on the CUA. Woolworths and OfficeMax prices for a black medium pen were cheaper than other suppliers (16c and 23c vs 25c). But all other goods were cheaper through CUA suppliers.

    Pricing on the 8 items not carried by supermarkets was also lower at the CUA suppliers.

    Stationary CUA case study graph

    How can we improve?

    Government Procurement is developing capability to run automated checks on prices charged by suppliers to ensure overcharging is captured.

    We continue to work with our suppliers to make sure that we are getting value for money and Government agencies should negotiate with suppliers when they see a price offering that is above a competitor that is not on the CUA. GP can assist with this.

    More information

    Please contact us if you have questions, comments or need support in procurement.Phone 6551 1555 or email GP Business Development

    Date of Case Study - August 2015

    Published date: 24 August 2015