Significant print savings served up

Costs reduced through e-commerce, new single supplier, and rebate

When a chain of well established restaurants in the Southeast wanted to serve up savings, the corporate office asked Expense Reduction Analysts (ERA) to trim the fat.

One of the cost categories consultants analyzed was printing expenses for corporate headquarters and about 17 corporate-owned restaurants. Each year, they spent more than $235,000 for menus, catering brochures, promotional items such as posters and table tents and various other materials. Over the years, as the restaurant chain grew and its printing needs expanded, the corporate office was using as many as six different suppliers.

It was apparent there were too many "cooks."

ERA's recipe was to issue a Request for Proposal (RFP) for a "sampler" plate - a list of representative items cooked up from an analysis of invoices and other data. Consultants were seeking a single printer that could handle the restaurants' entire range of printing needs.

Pricing, however, was not the only ingredient. ERA served up the value proposition of e-commerce capabilities, an idea the client accepted with gusto. Consultants also grilled suppliers on product and service capabilities, quality assurance programs, management reports and financial strength.

ERA recommended using a new supplier with a sophisticated e-commerce system, national presence and multiple production locations, including one close to the chain's corporate office.

By using the new supplier's e-commerce system, all the restaurants in the chain can order branded products from inventory and customized materials through print-ondemand. Corporate can spice up its reporting capabilities by monitoring usage trends, identifying purchase patterns and forecasting demand.

ERA added zest to the menu by negotiating a rebate for the client on its printing purchases. This arrangement was proposed as a way to offset upfront charges to launch the chain's branded e-commerce site. The rebate is scheduled to continue until set-up costs are negated, projected to occur in two to three years.

By switching to the new printer, headquarters and corporate-owned restaurants have reduced costs by more than 19 percent, resulting in at least an additional $46,000 a year.

The client is likely to savor far greater savings because the 120 or more franchise-owned restaurants also will be able to place orders using the new printer's efficient and cost-effective e-commerce system. Your success story is waiting to be written. Get started lowering costs for your company.

Featured Case Studies