Optimize your program by finding the common denominators!
Today’s post is by Mike Figueroa, Assistant Director of Customer Services at SafeSourcing.
If you aren’t familiar with print fulfillment standard practices, it can be surprising to see how complicated the program can get. In retail, for example, printing can be segmented by uses such as signage, labeling, circulars, mailers, flyers, banners, and promotions. Each of these segments is usually kitted by the print fulfillment provider, who also stores and distributes the final product. However, the whole process is further complicated by the fact that each store in a retail chain will have different needs that may require specific promotions, store address prints, quantities relative to store size, quantities relative to market, or differing departments between stores such as deli, floral, or pharmacy. Therefore, the whole process is typically outlined in complex spreadsheets that breakdown stores, campaigns, print files, costs, logistics, and lead times. Managing this process is a delicate dance between all parties involved, and can seem impossible to negotiate better pricing. However, we routinely see double digit savings in this category from companies who take their programs to market.
The first thing many companies will find when exploring the market for other print fulfillment providers is inconsistency. For example, you may find that you have previously priced a banner from a print company, and find that the fulfillment company you buy that banner through, marks up the cost of the same banner by 40% before freight. Another inconsistency you may find is that you are being charged two different price points for the exact same kind of print/material/color, just because they are in different kits, and you’re already being charged a kitting fee. If you have an agreement that allows you unlimited changes to the print file on any product that doesn’t require a re-tooling, the aforementioned price difference doesn’t make any sense. Now that you’ve found these inconsistencies in price for products with a common denominator, you can structure your RFQ appropriately.
If your program data is captured well within a table, you can use any number of programs to identify and consolidate your print types. For example, do you have the same 8.5 x 11/60lbs/4-color product being used in 8 different kits with multiple price points? Itemize that as ONE product, with the print file and kitting to be communicated post-bid in a master print schedule. Go through the same exercise with all of your activity, and you will find that the complexity of your program can have its volume summarized in a much reduced number of activities.
SafeSourcing has walked their clients through this exercise countless times, and then compressed the pricing through our e-suite of procurement tools. We do the heavy lifting, engage the vendors, and negotiate the pricing on your behalf. Utilizing our expertise, you’ll never have to be subject to costly pricing inconsistencies for your Print Fulfillment needs ever again.
Please leave a comment or for more information on how SafeSourcing can assist your team with your procurement process or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative. We have an entire customer services team waiting to assist you today.