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Supplier Cost Drivers – Print Example. Typical cost breakdown shows that the supplier’s main cost driver is paper. Recommendations. Profit element, amalgamated into % mark up on the print element of the price. Profit 10%. Agree on common national specifications

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supplier cost drivers print example
Supplier Cost Drivers – Print Example

Typical cost breakdown shows that the supplier’s main cost driver is paper

Recommendations

Profit element, amalgamated into % mark up on the print element of the price

Profit 10%

  • Agree on common national specifications
  • Reduce the format of prints to use less paper
  • Reduce the weight (from 80 grs to 75 grs for example)
  • Don’t use branded paper with watermarks
  • Don’t use colour paper
  • Buy the paper straight from a paper merchant
  • Combine print paper with paper for office printers
  • Administration
  • 20%
  • Head-office
  • Accounts
  • Invoicing
  • Admin
  • Transport

Printers’ operating costs

Various cost elements

20%

Plate production, Ink, Labour set up,

Labour printing, Labour folding, Labour finishing, Packing-box and label, Depreciation, Stock, Distribution

Paper

50%

Paper accounts for around 50% of the total cost.

By reviewing the specifications and negotiate wider deals on paper, the organisation could reduce their print costs