Commercial Printer X
A large, privately owned commercial printer with annual revenue of $53MM specializing in producing color cards, displays and fabric charts for use in the home furnishings, architecture and automobile industries.
National Cost Reduction Corporation met with President and CFO to help manage costs, improve cash flow, and increase their bottom line by reducing costs in multiple non-labor expense categories. Their customers were taking 60 to 90 days to pay invoices due Client even though their terms were net 30. As a result of this slow payment of receivables, the Client extended their payables schedule. The client urgently needed to reduce these expenses to achieve a positive cash flow. Due to very specific requirements in some of the expense categories, all costs had to be on an “apples to apples” basis including payment terms. Three examples are freight, telecommunications and office supplies.
National Cost Reduction Corporation Approach
After reviewing and analyzing the Client work sheet and benchmarking spreadsheets, NCRC contacted all existing suppliers to discuss and begin negotiating lower costs. Some suppliers offered lower costs if the Client would improve their payment schedule. NCRC negotiated a cost discount in many cases based on the same terms the Client was previously achieving.
All of this information was presented in the written Cost Reduction Findings and Recommendations Report.
NCRC Findings and Recommendations Analysis Report identified nine expense categories with annual savings of over $82,000. In this process, there was major consolidation in the number of suppliers being used. This cost reduction management plan reduced expenses, and also was a soft savings of fewer suppliers and less checks to be cut. In some expense categories, the client was receiving the lowest cost and NCRC was able to confirm that to our Client at no cost to them.