Web Based Suppliers Sponsor Aberdeen Report Which Finds that Enterprises Should Use Their Services
Press release from the issuing company
BOSTON, Nov. 2-- Despite the large sums spent on print and associated waste, print procurement has eluded widespread optimization to date, according to a new Aberdeen report. The problem is that print purchase requisitions are too often spread throughout an organization among employees unfamiliar with the print industry. These are frontline individuals who are blind to true costs, the consequences of change orders, and the cumulative effect of sub-optimal ordering and over-ordering.
Based on a survey pool of 160 companies, the study, "Category Spend Management: Print and Print Services," discloses that approximately 57% of enterprises report an increase in spending on marketing collateral and nearly half of respondents report the same for office/document printing. Close to 80% of respondents are manually sourcing and procuring print materials and services, 27% of which are purchased by whoever has the need, indicating fragmented processes.
"Enterprises often fail to realize that costs associated with printed materials continue to increase even after the material is printed," says Vishal Patel, Aberdeen Research Analyst and report author. "In many cases, organizations print in bulk to achieve a lower cost per unit. However, often the material is not used immediately and must be stored in inventory, creating storage costs. Later it is distributed, generating courier costs, or thrown away due to outdated content, resulting in obsolescence costs. Other costs to consider include errors, reorders, and rush charges which can significantly add to the total cost of printed materials."
Top Performing Companies
Best-in-class enterprises -- the top 20% in performance -- are able to achieve significantly better results, including the following report findings:
-- Best in Class enterprises are sourcing and procuring 64% of their print online. This also means that they have standardized policies and are involving the procurement function.
-- These enterprises achieve faster lead times (i.e., order-to-delivery cycle time) and, thus, significant savings.
-- On average, top-performing companies have realized, on average, 23% hard-dollar cost savings, compared to the average of 8% for other enterprises.
This report is made available to the public, in part, by the underwriting of Access Plus, Cirqit, HH Print Management, and ProProcure.
To download a complimentary copy of "Category Spend Management: Print and Print Services," visit: http://aberdeen.com/link/sponsor.asp?cid=3588
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