Consultative Assessment Process Finds Nearly $1M in Savings | Nonprofit
1/3/2020 RRD
Educational organization receives full-scale strategy to deliver on print's big potential
CHALLENGE
With nearly 16,000 membership clubs and 350,000 members in more than 140 countries, a non-profit educational organization recognized a growing need to outsource all of its in-house print production, procurement, fulfillment, and distribution functions as a way to reduce costs and sustain a stable growth trajectory.
SOLUTION
RRD conducted a consultative assessment, which analyzed the client’s print and fulfillment processes, providing recommendations for every step in the supply chain.
The client also received support in building the implementation strategy and roadmap for inventory transfer and migrating work to RRD facilities. Ongoing analysis provided a comprehensive understanding of each business unit and overall print communication needs by:
- Documenting all operational workflows
- Capturing historical activity data
- Creating a technology roadmap
- Evaluating all direct and indirect internal facility labor costs
RRD’s assessment presented an effective picture of the client’s current operations by focusing on critical indicators including:
- Inventory usage and obsolescence analyses
- Logistics optimization strategy
- Personnel and workflow discovery (interviewed 20+ stakeholders)
- Cost of sales analysis
RESULTS
Overall estimated annual cost savings of approximately 17%
28% in projected annual savings in warehousing and fulfillment
15% in projected annual savings in print production
The assessment’s findings outlined immediate cost-saving opportunities and scalable innovations for continued growth. More specifically, RRD identified nearly $1 million (17%) in total potential savings for the first year across approximately $6 million of current spend while outlining a roadmap for further savings.
Breaking the potential savings down even further, this RRD client is projected to realize the following estimated annual savings in warehousing and fulfillment (28%), item cost (10%), print production (15%), and logistics (8-20%).
The RRD solution is anticipated to lower costs dramatically by enabling the non-profit to move completely away from an internal print and fulfillment shop, reduce capital expenditures, and focus on providing greater educational resources to their members.
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