For personalized services online is a good bet

Web-based capabilities offer cost, customization benefits

Karen Prema -- Purchasing, 10/20/2005

Procurement organizations are taking the "no stone unturned" mentality when it comes to cost reduction and process optimization. One of the indirect spend areas getting particular attention from buying organizations is print services. Thanks to a variety of new Web-based capabilities from service providers, buyers and users of print services can fill their needs quicker and with more options at a reduced cost.

One of the primary benefits of buying print services online is the visibility and control it provides in managing costs. Many companies have no idea how much they spend on print services because they are not centralized and are ordered by a variety of nonpurchasing organizations such as marketing, promotions, etc. But Holly Muscolino, director of production workflow solutions for consulting firm CAP Ventures in Norwell, Mass., points out, "Using Web-based tools for managing print purchase outside the office is a way to get control over that print to see who is buying what and where. There is a huge opportunity for aggregating and managing paper in this area."

John Specht, senior product manager for digital print for Relizon, a business process outsourcing company specializing in document and relationship management, says that the number of pages printed typically decreases in the digital realm. He says that digital print is increasing the number of orders, but decreasing the total page count of orders. According to industry giant Xerox, 78% of all print orders today are for less than 5,000 pieces. It's an adjustment in the marketplace and a trend that will continue. Five years ago, many printing service providers recommended customers order no less than 2,000 copies because the cost per page would be high.

"What you look at are the pieces that don't necessarily get used," Specht says. "A lot of times it might be 75% or 85% gets thrown away. On average, 15-20% gets wasted, which is a huge cost. It's not just about the production itself, but your printer should understand what your needs are for production, and your actual usage," says Specht.

He advises, "when you look at the cost of your document management, for example, look at not just the production costs, but the cost of waste as well as the cost of prepress and programming, warehousing costs and distribution."

Beyond cost visibility, there are major performance benefits to using online tools in the print services spend. The digital/online world allows companies to maintain more control over content and options that make up the final print product, while streamlining the print services process.

"There is a value proposition for the [buying] corporation because it can maintain messaging and brand control. And there's a benefit for the service provider because they can get materials that are accurate and current much more quickly, which couldn't be done in the traditional ordering method," says Muscolino.

Relizon customers can buy any of its printed on-demand or warehouse products online. Melanie Forman, senior product manager at the company's Relizonline division, says that in areas such as business cards or envelopes, users can actually design and create the stationary online. The customers put the variable data online where they can proof it and print large quantities when they're ready. Users can also upload files that have certain data parameters that can be printed. There may be static information such as name and address which can be personalized based on demographics with different images to be printed on the product.

Today, color office devices are much lower cost and higher quality with more capabilities for in-house printing. According to Muscolino of CAP Ventures, one of the ways that print service providers can continue to provide value is by offering web tools to print from the desktop at an internal facility to an external professional site, then deliver the documents. "There are finishing options you can't get on your internal device, whether it be a workgroup device or central device," says Muscolino.

More businesses are investigating in-house printing options. Hewlett Packard recently commissioned a survey through International Communications Research where it interviewed 500 small- to medium-sized businesses. The survey found that more businesses are producing their own marketing materials because it offers a greater return on investment than outsourcing print. Advancements in technology, such as smaller and faster printers/copiers, and free online sources such as easy-to-use marketing templates make the do-it-yourself phenomenon possible.

The study reported that Game Face, a developer of safety devices for sports including NFL, NBA and MLB, began printing its brochures in color and saw an increase in attendance at its "Executive Academy" resulting in an additional $70,000 in revenue. The survey also revealed that in-house marketing allows businesses to personalize their materials to customers more easily, allowing them to attract new customers and level the playing field with larger competitors.