Cost savings of 20% over three years realized by transitioning print work to RRD’s large network of facilities
Due to a number of recent acquisitions, an American managed healthcare and insurance company was quickly outpacing the capabilities of its in-house print shop. In some instances, acquisitions meant the absorption of legacy print facilities, equipment, and technology, which only added to overhead costs and production complexity.
It became evident to the insurer that in order to keep up with increasing print volumes during this period of growth, a centralized production plan would be necessary. To achieve this, the company looked externally with an interest in outsourcing its print operations.
With print pedigree in the business communications space, RRD was selected to manage the insurer’s growing print production needs. To further validate their decision RRD assured the client of the following:
- Uncompromised business continuity during the transition from in-house to outsource (i.e., maintaining SLAs and compliance)
- Preserved brand integrity and a reduction in error rates
- Available bandwidth to support increasing print quantities
- Removal of complexities associated with a volatile paper supply chain and labor market.
- Transition to a variable cost model, disposing of overhead costs
- Enhanced business continuity plans
To support a seamless transition, RRD relied on its large print network, immediately running work across five facilities. This would help increase the resiliency of the company’s operation by enhancing their business continuity plans.. The larger print footprint also enabled the client to leverage geographically-aligned locations and improve speed to market by producing print communications closer to target markets.
After transitioning print production to RRD, the insurer was able to realize a cost savings of approximately 20% over three years thanks to disposed overhead costs.
In the end, the insurer’s decision to move away from its in-house print operations made tremendous business sense. By outsourcing print support, this client experienced heightened production levels and gained the ability to pivot quickly in response to organizational growth as well as a changing market.