13 May 2010 | Adviser Q&A
I need to draw up a strategy for print procurement, specifically for letterheads, business cards, leaflets and reports. But I can’t guarantee any volumes to suppliers. How can I get the best deal?
Procurement manager, Belfast
James Fingland, head of print category, buyingTeam
There are few buyers in the present climate who can guarantee volumes, so don’t be put off by that. The excess capacity in the industry should mean you are able to find good value, even without guaranteed volumes.
If you are looking for fixed pricing and do not want to enter the market on a job-by-job basis, it is important to maximise value while mitigating any potential impact on cost resulting from any unexpected fluctuation in volumes.
Drawing up a matrix should help you to future-proof pricing. Ensure that you provide suppliers with a detailed plan outlining types of work (assuming they are standard) and covering a range of potential volumes.
If you are going to enter into a contract you should include price reviews every six to 12 months to receive the best value.
Nic Porter, head of procurement, Skandia
The print market has almost perfect elasticity of supply and significant savings can usually be made through the manner in which you source print. But there are other ways of delivering savings.
The first stage is to conduct a review of your print purchases for the past couple of years. Concentrate on specification, volume and price and identify core lines that are ordered regularly.
Once you have this information, conduct a request for quotation or a request for proposal if your requirements are more flexible. A key strategic decision is whether you buy directly from a printer or through a print management company.
Frequently printed materials can be over-specified. You may therefore want to consider whether you can make any changes to specifications or paper grades.
It is also worth looking at “print-on-demand”, where you typically pay a higher price per unit but would see a reduction in stock holding and obsolescence.
Clearly the biggest savings come from moving away from print completely and any review of print should consider alternative channels.
Matthew Parker, consultant, Print & Procurement
The key issue for a requirement like this is whether you can put batches of jobs together or whether each job comes separately. This will have a far greater effect on unit price than volume.
If you know you will have a reasonable flow of jobs many suppliers will be happy to provide competitive prices without volume guarantees if you commit to them as your preferred supplier.
There are a number of trade printers who will batch your job together with those of other clients and allow you to capitalise on some of the cost advantages this leverages. This works well for general commercial stationery. But if you have very demanding corporate brand guidelines then this may not be a realistic route for you.
Also bear in mind that cost should be a key driver, not just price. It is worth exploring the many web-to-print options available from suppliers. This allows users to order their own business cards without incurring artwork costs or involving purchasing personnel, apart from someone approving the spend. Such a workflow is fully automated and completely auditable.
Key points
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Give potential suppliers a matrix of possible ordering alternatives
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Consider buying as and when required to reduce the chance of over-ordering
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Think about moving away from print altogether
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