CUTTING PAPER - COUNTING - Paper Purchasing

 

Paper Purchasing

Most organizations buy large quantities of a few kinds of copy paper and small quantities of many kinds.  With luck, you can locate all the information for the few, large kinds, and perhaps just an overall dollar estimate for the rest.  If your purchasing department can't help, sometimes the distributor you buy from can provide the information.  After all, paper purchasing is their business, and it isn’t yours.

If you can't locate all the information you'd like about paper use, consider making informed estimates from knowledge you have or by asking people.  Often someone will know rough quantities such as that they buy "8 boxes every 2 months". When you see a label (usually about 1.5x6 inches) on a ream of paper, take one for reference, as they usually list the paper’s brand, type, size, and weight.

Copy paper varies in price, but a good estimate is $1,000 per ton.  For typical paper this is $2.50 per ream (500 sheets), 50 cents a pound, and half a cent per sheet.

Hidden Paper

Be aware that some paper purchases may be 'hidden'.  For example, some copying jobs may be contracted out to a local copy shop because they are particularly large, or have special requirements such as color, large-size, special paper, or particular binding or folding needs.  These are probably only worth tracking down when particularly large, or when done on a regular basis.  If you have a print shop or copy center within your organization, they may have special ways of buying paper, and also may have better knowledge of the paper they buy than does the purchasing department which buys all kinds of products.

Non-standard paper

For atypical sizes and weights of paper, prices are usually higher because they are not made or bought in as large quantities.  That is, while your organization might buy standard paper by the box or pallet, specialty paper might be bought by the ream or box.  Determining the mass of such paper is fairly easy. Assuming you have a ream (500 sheets of it), then simply multiply the mass of a standard paper ream (2.5 lbs) by the 'area ratio' and by the 'weight ratio'.

An Example

The area ratio is the size of the sheet compared to an 8.5x11" sheet.  A legal-size sheet (8.5x14") is 1.22 times the size of a standard sheet; an 11x17" sheet is exactly twice the size.  The weight ratio is simply the atypical sheet divided by 20 lbs.  For example, 24 lb. inkjet paper is 24/20 = 1.2.

So, an 8.5x14" sheet of 24 lb. paper is 2.5 lbs * 1.22 * 1.2 = 3.66 lbs/ream.

 

Paper Purchase

Last year "Clever Inc." bought the paper shown in the table below. 

The Conversion Factor converts from reams of one type of paper to the same mass of standard copy paper, with the result as ream-equivalents.  Formfeed Computer Printout Paper (CPO) is not copy paper but is included here because it is usually used for similar purposes, and many uses of CPO are migrating to standard copy paper.  The Formfeed CPO is boxes of 11x14" computer printout paper.  The Color/InkJet paper is high quality 24 lb. paper.  The amount of Miscellaneous paper used is estimated based on the dollar cost of the paper.  The amount of Outside Copying paper used is estimated based on the cost of outside copying done. 
 

Clever, Inc. Annual Copy Paper Purchasing 
Paper Type
Reams
Conversion
Factor
Ream-
equivalents
Tons
8.5x11"
1,500
1     
1,500
3.75  
8.5x11" letterhead
40
1     
40
0.1    
8.5x14" (legal)
40
1.22
49
0.12  
11x17"
5
2     
10
0.025
Color/InkJet
20
1.2  
24
0.06  
Formfeed CPO
10
6     
60
0.15  
Miscellaneous
50
1     
50
0.13  
Outside Copying    
340
0.84  
TOTAL    
2,073
5.18 
 
 
It is helpful to look at all this paper in terms of tons to make the figures more manageable and comparable.  The following table shows Clever's Inc.'s paper use this way.  The Outside Copying paper cost is an estimate and part of the copying cost.

Clever Inc.'s Paper Purchases by Mass (weight)  
Paper Type
tons
$/ream
$/ton
$/year
8.5x11"
3.75  
2.50
1,000
3,750
8.5x11" letterhead
0.10  
15.00
6,000
600
8.5x14" (legal)
0.12  
3.50
1,170
140
11x17"
0.025
6.00
1,200
30
Color/InkJet
0.06  
7.50
2,500
150
Formfeed CPO
0.15  
12.00
800
120
Miscellaneous
0.13  
5.00
2,000
120
Outside Copying
0.84  
5.00
2,000
1,680
TOTAL
 5.18 
 
1,270
6,590

A few items jump out from this table.  Most of the paper is regular copy paper, so it is likely that most savings will also be found here.  Expensive types of paper are typically used in fairly small quantities.  Since most of the cost of using paper is other than buying it, one needs to incorporate those other costs before assessing where the most dollar savings may lie.  Unlike the first pie chart (which measured by mass), this one measures the dollar cost of the paper purchases.

Clever Inc.'s Paper Purchases by Cost ($)

 

 

Paper statistics vary with the source, year, production vs. consumption, and the exact definition of what paper grade is being tracked.  According to the AF&PA, in 1993, production of "Bond Paper" was 3.65 million tons, with "Form Bond"an additional 1.90 million tons.  Actual consumption may have been higher due to imports.  According to consultants (Franklin Associates, 1993), consumption of "reprographic" paper in 1995 was 3.5 million tons and all "forms" paper was 3.1 million tons.  Since 1995, copy paper use has certainly risen, but this has been partially offset by declines in forms paper use.  A forecast for 1998 (Pulp & Paper, 1995) put copy paper use at 5.4 million tons with forms adding 1.8 million tons.  
 
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