| The printing industry is undergoing transformation | | | | you want. There will be no printers in your database |
| changes as printers close and consolidate. In some | | | | that you have not researched and approved. This is |
| ways, this is happening quietly because when a small | | | | important because when a bid comes in at a |
| or a medium-size printer closes, it does not make | | | | deep-discount price, you know the printer and know a |
| national or even regional headlines. Also, sadly to say, it | | | | quality job will be produced on time. Low pricing does |
| has become commonplace. | | | | not mean corners are being cut. It means the printer |
| According to the Printing Industries of America (PIA), | | | | has downtime to fill. |
| almost 3,000 printers have either closed their doors or | | | | This strategy is further enhanced by suppliers now |
| merged so far during the prolonged economic | | | | being able to eliminate price precedent. Suppliers |
| downturn. At year-end 2009, there were 33,565 | | | | normally price work based on how much the buyer is |
| printers in the United States compared to 36,508 just a | | | | willing to pay. If suppliers price too high, buyers shy |
| year earlier. | | | | away from dealing with them. If suppliers price too low, |
| So what does this change in the printing industry | | | | then buyers want to hold suppliers to the prior price. By |
| landscape mean to print buyers? A lot, especially if | | | | eliminating price precedent, suppliers can be allowed to |
| your trusted, favorite printer has been bought by | | | | bid high, low, or not at all with no repercussions on their |
| another printer or even worse closed its doors. You | | | | receiving other work to price for which they are |
| may have others to turn to, but they have never been | | | | qualified. Suppliers can now base their pricing less on |
| your top choices. | | | | what they perceive the buyer is willing to pay and |
| You could begin visiting, meeting with and evaluating | | | | more on the instant need to fill their production gaps or |
| printers again. You do not want to do that because it is | | | | downtime. That is how the 25% to 50% in cost |
| time consuming and there is no assurance that those | | | | reductions are achieved. |
| printers also will not become victims of the economy. | | | | Driving this advancement in procurement is a unique |
| Also, the associated cost performance for | | | | communications and workflow system that requires full |
| relationship-driven buying is usually poor. | | | | interaction and documentation between the buyer's |
| You could try negotiated methods based on most of | | | | team and the supplier's team. Hands-on involvement is |
| your work going to one or two printers, but that is sort | | | | not minimized and control by the buyer is strengthened |
| of like putting "all of your eggs in one basket" and not | | | | rather than weakened. |
| knowing when the chosen printer will have technical, | | | | Every task is benchmarked and whoever is |
| labor or other problems. You could be left without a | | | | responsible for that task must verify changes, its |
| printer. | | | | completion and make notations as needed. Because |
| You could resort to a reverse auction, spot bidding and | | | | of that sophisticated level of information sharing, |
| other competitive e-procurement techniques that have | | | | accountability is fully assigned and documented. |
| their roots in the 1960s. Most are cumbersome to start | | | | Because all actions are available for everyone who is |
| and stop and procurement professionals often are | | | | given access to see, the total process is 100% |
| uneasy about using them. Savings are not predictable, | | | | transparent. Because every action and notation is |
| and there is no guarantee that you will be getting the | | | | documented and archived, the system becomes a |
| lowest price. You more than likely will not be familiar | | | | powerful resource for reference and planning. |
| with the printer that ends up with your job. Some even | | | | This process is repeated for every print project that |
| say reverse auctions may encourage imprudent | | | | you have. With the click of a mouse, you will have bid |
| bidding practices. | | | | results in seconds rather than hours or days. You also |
| The good news is significant advances have been | | | | will have built a trusted pool of suppliers. No more |
| made in how printing can be procured. They expand | | | | searching for qualified printers. |
| your options, increase your control, provide you with full | | | | While there is no question that the print industry is |
| transparency and, maybe best of all, make it possible | | | | changing and that there are fewer printers today, the |
| for you to reduce your costs for procured print by | | | | print buyer actually has better options for getting the |
| 25% to 50%. When referring to procured print, I mean | | | | job done. The predictability of new methodology and |
| direct mail, marketing materials, commercial printing, | | | | technology improve and strengthen the print buying |
| labels, customized packaging, promotional items, CD | | | | process. This new approach is being embraced by |
| ROMs and anything else that requires producing an | | | | printers because it allows them to be matched |
| image on a substrate (paper, plastic, metal, magnetic | | | | automatically with their print buying customers and to |
| media, etc.) | | | | increase their work and cash flow by filling production |
| New procurement methodology and technology, | | | | gaps that otherwise would have produced no revenue |
| developed during the 1990s and introduced to print | | | | at all. |
| buyers over the past three years, combine the best | | | | About e-LYNXX Corporatione-LYNXX Corporation, |
| features of relationship-driven buying, negotiated | | | | the North American procurement authority, is |
| methods and traditional e-procurement techniques. | | | | exclusively endorsed by Printing Industries of America |
| Here is how it works. You select the printers, | | | | (PIA) and Educational and Institutional Cooperative |
| thoroughly vet them and if you need more you have | | | | Purchasing (E&I). Founded in 1975, e-LYNXX has three |
| access to a national database of printers who are | | | | divisions. |
| prequalified and fully capable of delivering for you what | | | | |