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DRIVING OUT COSTS
Attacking a commonly overlooked and undermanaged area of spend
Excerpted from Increasing Operational Efficiency by TakingControl of Your Print Spend (InfoTrends Analysis 03/2010)
THE TRADITIONAL COMMERCIAL PRINT SUPPLY CHAIN
Lack of visibility and control
Ine!cient, high cost (hard and soft)
No centralization or leveraging of spend
IMPACT: UP TO 3% OF TOP LINE REVENUE SPENT
ON COMMERCIAL PRINT RELATED COSTS
Fragmented
Complex
Distributed
A complex web of
workflows across
multiple departments,
buyers, suppliers,
agencies, subsidiaries,
distributors, channel
partners and geo-
graphic markets.
Direct Mail
Marketing Collateral
Promotional Products
Displays & Signage
Catalogues
Forms & Labels
Envelopes
Folders
Packaging
Statements
Manuals
Inserts
Boxes
Books
Banners
Posters
And More…
WHY?
PRINTING INDUSTRY FORCES
! Outdated distribution model
! Information asymmetry
! Price discrimination
ORGANIZATIONAL FORCES
! Structure
! Culture
! Inertia
OPPORTUNITY: PRINT BUSINESS PROCESS OUTSOURCING (BPO)
Print BPO ProviderClient
Marketing
Purchasing
HR
Finance
IT
EXPERTISE• All print categories
INFORMATION NETWORK• Proprietary data• Technology
Supplier Ecosystem• Printers• Warehousing• Shipping
Sourcing
Procurement
Production
Storage
Fulfillment
Management
IMPACT: IMMEDIATE COST REDUCTION OPPORTUNITY WITH NO CAPITAL
INVESTMENT, IMPROVED CONTROL AND VISIBILITY, GREATER STAFF PRODUCTIVITY
PRINT BPO DELIVERS BENEFITS ACROSS THE ORGANIZATION
! Reduced indirect costs
! Increased operational e!ciency
! Leveraged buying power
! Strategic sourcing
Finance! Single source access to large
certified supplier network
! Minority spend tracking
! Visibility into spend
! Reporting
Procurement! Increased brand consistency & control
! Guaranteed quality & service
! Inclusion of existing preferred suppliers
! Faster time to market
! Greater return on marketing spend
! Value engineering (product spec optimization)
Marketing
IMPACT: ALIGN CORPORATE-WIDE OBJECTIVES, CREATE MEASURABLE
RESULTS AND DELIVER SUSTAINABLE COST REDUCTION
A SUCCESS STORY: INNERWORKINGS (Nasdaq: INWK)
! A market leader in print BPO
! Proprietary data and information network
! Open book, transparent enterprise solution
! Contractually guaranteed savings
! Up-front fit/no-fit analysis
! Economic audit of current print spend
! Organizational/cultural alignment
! Established implementation model
! Return derived solely from savings (low risk)
CONTACT JIM CARINI, VP MARKETING, FOR FURTHER INFORMATION:
312-784-2607 / [email protected]