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% Administration 20% Head-office Accounts Invoicing Admin Transport 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 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 Reference: PCD85-A Released: 17/07/2015

Example Product Cost Drivers Reference: PCD85-A Released: 17/07/2015