Every business is looking for ways to reduce their costs while maximising their productivity. To achieve this, companies often assess their own internal workforce, attempting to identify ways to improve efficiency across their offices. While this may be useful, a better technique to reduce costs is to look outside of your company and at your supply chain.
A recent study showed that on average, UK businesses waste nearly £90,000 a year as a result of payment friction when dealing with suppliers. This equates to 125 hours every week wasted on procurement issues, such as chasing order numbers, processing invoices and answering supplier enquiries.
Outsourcing the management of the design, production, storage, and distribution of your printed content can help to end the drain on your resources and time.To show you how, our experts have come up with cost control techniques to help you reduce supply chain expenditure with print management.
Let’s begin with a question:
How Much are You Actually Spending on Your Printing Supply Chain?
This is a question that appears deceptively simple, but give it some thought and you’ll find it incredibly hard to answer.
Most businesses will be confident on how much the physical printing of an order costs, but that is only the tip of the iceberg; the design, storage and distribution costs all need to be factored in as well.
With each of these stages needing additional time to manage them and a budget to monitor, keeping track of your spend efficiently can quickly spin out of control, especially trying to do so across multiple sites, orders and suppliers.
By outsourcing to a print management company, you no longer have to juggle all the elements that make up successful print. Instead, you have a single point of contact, a single cost, and more money in your budget. Here’s how...
Simplifying Your Supply Chain
Businesses can have a huge number of suppliers, with each of them needing to be managed individually. On average, 323 invoices are received each month by UK businesses, and every one of these involves, on average, 15 employees to complete the process.
Given these figures, it’s clear that any company looking to manage its own supplier-led process is going to have to commit to a large amount of time and spend on the supplier chain – printing is no different. Multiple suppliers are often used to service the printing needs of a big business, and with this comes multiple problems.
Print management centralises this process for you, providing access to print expertise through a single point of contact, and with a transparent and bespoke Service-Level Agreement (SLA).
Saving on Design, Production, Storage and Delivery
A major cost implication businesses face in relation to printing comes from a lack of expertise and awareness at all stages of the production process. Unless you are involved in the print industry it reasons that the expertise of your staff in-house lies elsewhere. In order to maximise value, you need to know all the print options, specifications, deliverables and related costs, but this kind of knowledge is only born out of years of experience.
It is especially difficult when attempting to coordinate all parts of your content production. One supplier may be able to produce the quantity you require but not to your deadline, while another may be able to meet your deadline, but at a reduced quality. Trying to balance these multiple options often results in risk, compromise, miscalculation and mistakes.
All of the above adds up to significant indirect spend. In fact, indirect spend has been rated as a top focus for controlling and reducing costs by more than 70% of procurement professionals.
Through experience, centralisation and single supply print management, you can effectively reduce indirect spend and bring your costs down and under control.
Saving money on your printing doesn’t stop once your content is produced. How it is used is just as important as how it is made. Research shows that the average office worker wastes up to 6,800 sheets of paper each year. Imagine what this figure looks like across the multitude of print products a large business can produce.
Through print management, businesses can ensure their content does not join those 6,800 sheets by adopting a responsive distribution system. This allows your business to create tailored deliveries that vary depending upon location.
As a result, your company can measure how effective a piece of content is in any given area, allowing you to send more if required or provide less in the future, thus eliminating costs that would otherwise exist in your supply chain.
Reducing waste isn’t all about saving money though. The centralised approach of print management helps lower your carbon footprint, by reducing the number of miles your content travels and identifying ways to cut down on paper consumption.
These are just some of the benefits print management can bring your company by reducing supply chain costs. Interested in finding out more?
Download our free eBook, Print Management: How to Reduce Costs, Save Time, and Improve Quality, to learn more about saving in your supply chain