Reducing indirect costs and driving operational efficiency are top priorities for today’s executive management teams—particularly for finance executives. This presentation addresses an often overlooked and under-managed area of spend and the opportunity it presents to lower costs and improve processes while increasing brand consistency and control with Print Business Process Outsourcing (BPO).
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Print BPO Primer
1. DRIVING OUT COSTS
Attacking a commonly overlooked and undermanaged area of spend
Excerpted from Increasing Operational Efficiency by Taking
Control of Your Print Spend (InfoTrends Analysis 03/2010)
2. THE TRADITIONAL COMMERCIAL PRINT SUPPLY CHAIN
Direct Mail
Marketing Collateral
Promotional Products
Displays & Signage
Catalogues A complex web of
Forms & Labels workflows across
Envelopes multiple departments,
Folders
buyers, suppliers,
Packaging
Statements
agencies, subsidiaries,
Manuals distributors, channel
Inserts partners and geo-
Boxes graphic markets.
Books
Banners
Posters
And More…
Fragmented Lack of visibility and control
Complex Ine!cient, high cost (hard and soft)
Distributed No centralization or leveraging of spend
IMPACT: UP TO 3% OF TOP LINE REVENUE SPENT
ON COMMERCIAL PRINT RELATED COSTS
3. WHY?
PRINTING INDUSTRY FORCES ORGANIZATIONAL FORCES
! Outdated distribution model ! Structure
! Information asymmetry ! Culture
! Price discrimination ! Inertia
4. OPPORTUNITY: PRINT BUSINESS PROCESS OUTSOURCING (BPO)
Client Print BPO Provider
Sourcing
Marketing
EXPERTISE Procurement
Purchasing • All print categories
Production
INFORMATION NETWORK
HR • Proprietary data
• Technology Storage
Finance
Supplier Ecosystem Fulfillment
• Printers
IT • Warehousing
• Shipping Management
IMPACT: IMMEDIATE COST REDUCTION OPPORTUNITY WITH NO CAPITAL
INVESTMENT, IMPROVED CONTROL AND VISIBILITY, GREATER STAFF PRODUCTIVITY
5. PRINT BPO DELIVERS BENEFITS ACROSS THE ORGANIZATION
Finance Marketing Procurement
! Reduced indirect costs ! Increased brand consistency & control ! Single source access to large
! Increased operational e!ciency ! Guaranteed quality & service certified supplier network
! Leveraged buying power ! Inclusion of existing preferred suppliers ! Minority spend tracking
! Strategic sourcing ! Faster time to market ! Visibility into spend
! Greater return on marketing spend ! Reporting
! Value engineering (product spec optimization)
IMPACT: ALIGN CORPORATE-WIDE OBJECTIVES, CREATE MEASURABLE
RESULTS AND DELIVER SUSTAINABLE COST REDUCTION
6. 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 / jcarini@inwk.com