Software as a Service a more viable option in a down economy

As companies look to reduce costs and spending, technology becomes a stronger and more viable option for companies. Specifically, Software as a Service (SaaS) becomes extremely attractive because it helps to maintain or reduce IT costs in a company. SaaS has been known by many for years, of the benefits, but it seems that companies are just now realizing the true benefit from an internal perspective. SaaS means having the same functions and functionalities that are currently enjoyed without the hassle of maintaining IT infrastructure or staff to maintain hardware and facilities. Actually causing dramatic decreases in cost. For companies that are looking for ways to increase effieciency without increasing costs SaaS systems are highly attractive, especially in today's current economic conditions.

Supplier Performance Scores

Your buyers may be having issues with your suppliers and you may not even know it.  How do you know that you are getting what is expected from your suppliers?  How do your suppliers know they are doing what is expected?  I know, there is that annual survey that my suppliers send out asking how they are doing...but I didn't have time to fill that out for the last 3 years in a row.  So I or they don't really know when things are going wrong or right.  One of the easiest things to do is to survey your buyers on each purchase order that they cut to the suppliers and then share that informaiton across the organization.  It can be quick and easy or complex however, the important piece is to get informaiton to both your suppliers and your buyers on how they are doing.  A simple approach is based on Quality, Service, and Price (QSP) or Quality, Service, and Delivery (QSD).  Each of these can be very straightforward and can be scored in a percentage environment.  The example I like to use is the QSD, Mine looks something like this;

Quality = 30% Overall

- Paper Damage (0 - 10) 33% of the category

- Ink Smear (0 - 10) 33% of the category

- Packaging (0 - 10) 33% of the category

Delivery = 50% Overall (Select One)

- Early 80%

- On-Time 100%

- Late 1 Day 80%

- Late 2 Days 60%

- Late 3 Days or More 30%

Service = 20% Overall

- Customer Service (0 - 10) 30% of the category

- Quote on Time (0 - 10) 50% of the category

- Sales Support (0 - 10) 20% of the category

Based on this type of scoring I can provide at least some basic feedback to my suppliers on a per purchase order basis and make the score cumulative so I can see overall how my suppliers are performing.  In addition, setting a base criteria fro performance with your suppliers can help them understand if they are meeting your buyers expectations.  Rating them based on current score (30 or 60 days) and also overall will help both you and them in making decisions about whether the supplier is the right choice to produce a job that is critical to your organization.  

 

Marketings need to track print procurement costs

I was reading a recent article on whattheythink.com by Brian Wolfenden titled: The Future of Print in Marketing Communications. Brian raises a great point in the article; "Today's marketing professionals...They have to make sure that the campaign delivers tangible and quantifiable results quickly. And these results must show a return on investment for the budget they spend on the campaign." Brian goes on in the next paragraph; "As service providers, this offers an opportunity to partner with the marketer to help them produce effective marketing campaigns that have a fresh approach that stresses targeted, customer-centric communications, measurable results and concrete return on investment." These are both excellent points that point back to "Return on Investment."

The key to all of this is knowing what your spend is in the first place and knowing whether or not your getting the best return on that investment. Most companies are still "shooting from the hip" when it comes to tracking spend or evaluating supplier effectiveness. They audit their purchase orders for cost or survey their buyers or buyers of others companies to determine quality delivery from suppliers. All valid tools but time consuming. Tools like Cross-Wind are designed specifically to provide the information to help marketing departments in determining Return on Investment by tracking costs from purchase orders and invoices, and evaluating supplier quality, turnaround, and responsiveness. Getting the best value starts in the estimating phase not in the purchasing phase of a project. In addition, all of these numbers need to come together fast and effectively with your other media spend numbers. Measureable Results...not just in campaign effectiveness but in spend. Am I getting the best quality, delivery, service, and price. You need to have a set of tools in your arsenal that help you to make the best decision regarding return on investment and to do it effectively. It is not a single tool but a set of tools that help you to track the information specific to their areas and then output the data in an effective manner to provide you with a picture of the whole not just a segment. Are you tracking your spend?

Fuel Prices are impacting me now.

Yep it has happened...
The $4.00 a gallon price was my tipping point. Instead of putting the $100.00 in my gas tank I opted to buy a Bicycle and will get pay back by riding my Bike to work for the next two weeks! Yep the cost of the bike will be recouped in just two short weeks. I came to this conclusion on Saturday last. It is a pretty cool looking bike too! (If you ask me!) So I have been riding my bike to work since Monday. My trek to work is not a lengthy one so I should have been thinking about this a long time ago, (I live about a mile away from my office). But I figure the benefits in this are threefold; True I am saving fuel, I am saving money in the long run, AND I am getting some exercise that my doctor has been hounding me about for several years! Granted two miles on the bike is not MUCH exercise but never the less, it is more than I was getting! and who knows maybe the next time my daughter says "Dad wanna go for a ride to the Park?" I might think about taking that on my bike instead of jumping in the car! But we get into our habits and we are constantly looking for convenience over economics.

Sound familiar?

We often do the same thing in print procurement. Instead of taking a little extra time to look at the economics of our actions we revert to what has always been the easiest or "because we've always done it that way." Well now is probably a good time to start looking at the economics a little bit harder. Sure it is our job as print buyers to save, Money, Time, Budget, but maybe when we think we are saving in one area we are costing in another. It goes back to the old Time, Money, Functionality equation again. You save Money but it may cost time and functionality in the process. I am betting most of us look at the Time side of this equation more than the others..."How can I save Time?" Well I am betting it is costing a little more and maybe we are so used to saving that time so much, that we have forgotten what it is like to save in the other areas!

Here's my bike...PRETTY COOL HUH?