Following Brexit and the changes in the world / international economy in the past two years, Office Depot have requested a price increase for some items from the LUPC framework that we use for our Office Depot contract.
Over the last 21 months since the new Office Supplies framework was awarded there have been no cost increases. 2016 saw a dramatic devaluation of the pound against the Euro / Dollar (the currencies most office supplies products are sourced in) which has had a significant impact on the cost of goods for the office supplies industry in the UK.
The LUPC Framework Agreement is based on a transparent cost plus model and Office Depot has only proposed a revision to a product price where they have actually incurred a cost change for that specific product. The proposed and full price review has been thoroughly audited by the LUPC. As a result of the Framework being based on a cost plus model, many lines have decreased in sell price too.
Office Depot will be working with the Procurement Team over the coming weeks to mitigate the impact of the price review going forward but you may see the prices of individual items rise or fall as a result of the currency fluctuation.