Frequently Used Items
Our innovative contracting program for preferred clients provides an organized method for frequently ordered products. This customer-focused system was designed to simplify the re-ordering process. Contact one of our customer service representatives to learn how you can participate in our program.
System Contracting Overview
Printing materiel is either operational (administrative) or marketing related. The total cost of printed materiel therefore equals the cost of the product and the cost of the related activity of that materiel.
System contracting is a purchasing management technique employed to reduce the annual cost of materiel acquisition and distribution. It is targeted to low cost, repetitively ordered and distributed materiel of which printing is a known category.
The printing industry is characterized by a costing methodology particular to each job and related primarily to time, materiel and paper cost. Variable costs are affected by ordering volume and frequency. Fixed costs involve labor and equipment cost. Activity costs shared by client and supplier include ordering procedures, invoicing costs, management of accounts receivable and the related costs of client accounts payable, cheque writing and holding inventory.
How it Works
Costs related to materiel and ordering activity can be minimized and produce cost savings from programs that include standardization of items, rationalization of forms and design, harmonization of marketing literature (common look and feel), forms management procedures and inventory control.
Quantity ordering, inventory control and distribution efficiencies combine with standardization to further provide economic savings. A system contract is a preferred client business relationship that seeks costs savings, activity streamlining and improved financial control of printed materiel usage.
Major features will include volume production by the printer, inventory holding at printer's location and at his cost and distribution to client via an ordering system designed for efficiency and simplicity. Major savings are realized through volume production of standard items that rarely change such as repetitively consumed items like letterhead, envelopes and forms.
Benefits
The economies of scale in volume production are significant in the printing business. The ordering procedures of this system reduce activity costs and the relationship is strengthened. |