Over the coming months when you place a copier paper order with your stationery supplier you might face a number of problems. Out of stock, limited stock, or the only option to purchase a higher grade more expensive paper. This is because Bridgewater Paper Company Ltd in Ellesmere Port went into administration this month.
Cheap and branded paper is one of the biggest ingredients that make up most offices stationery orders.
Major resellers might have to restrict the amount each client orders so they can fulfill the whole portfolio of their customer base. Cheaper grade paper is bound to go out of stock first which could cause corporate organisations to try and panic buy as the difference in pence per ream for a higher grade paper could mean an increase of thousands of pound for the volume they may order.
This will cause end users to invite other supplier to quote for paper and in turn could cause many organisations to look at the whole supply process as a whole. Some end users will be encouraged to move the whole stationery account by offering cheaper prices on other products they buy.
Will the paper price increase be “hidden” by suppliers and the increase spread over other products you buy?
Reviewing the prices you pay on a monthly basis on the whole basket of goods will enable you to see any “hidden cost” being implemented.
BBC News
Job losses hit 251 at Ellesmere Port paper mill
In a statement, administrators said they had decided to make 251 of 300 staff redundant “with regret”.
A skeleton staff of 49 remain working at the mill while the company attempts to fulfil customer orders. Despite the job cuts, the firm is continuing to fulfil customer orders and administrators from Ernst and Young are looking for a buyer.
Tom Jack, joint administrator from Ernst and Young said: “This is an extremely unfortunate situation for all employees affected and we thank them for their patience and support during this difficult time.
“We are also grateful for the support received so far from Andrew Miller, Labour MP for Ellesmere Port and Neston, the North West Development Agency and the trade union Unite.
“We continue to hold detailed discussions with a number of potential interested parties and still hope to find a buyer for the business as a going concern.
“In the meantime we are also continuing to fulfil customer orders from stock whilst the sale of the business process continues.”
Stationery companies have often used the price of paper as a leverage to win contracts; this has been possible through major resellers in mass being able to control prices from the paper mills. Paper is sold at a lower price than ten years ago which is no longer sustainable by the mills. Now with nearly all paper mills in the UK closed thing will have to change.
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