“How Our Customers Routinely Save 65% on the Total Cost of Manufacturing and Printing –
A case study on the true time and expense involvedin production “
This report was written for the production coordinator, regarding the hidden costs in research and ordering processes. After countless interviews with production coordinators/managers, we have found some surprising results…
Please feel free to add your comments/ feedback to this report. Your feedback is appreciated.
Using this research, Nova Disc has created a system that can save you up to 2 weeks and 65% on materials, invoicing and logistical expenses compared to other vendors.
How?
Consider this from “Universitybusiness.com”…
“The cost of processing a paper based requisition ranges from $100-125…70-80% of what you get for those dollars are fractions of people’s time.”
What this means is that each purchase order you write may cost up to $125, most of that spent on the TIME it takes to do the research, make contact, weigh pricing/shipping/quality options, and getting the approval/writing the purchase order.
An informative study from Oregon University showed that it improved its check writing expense by going from a paperwork and manual processing cost of about $25 to manually issue a check, to the cost of about $6 after the implementation of a new on-line financial information system. They figured at slightly over 100,000 transactions per year, the estimated annual cost savings are between $150,000 and $190,000.
Let’s say you need to order 10,000 CD-Rom with custom packaging and some type of promotional printing (posters, labels, promotional items, etc.). You contact 3 vendors for each item to save money; 3 vendors for the physical CD-Rom manufacturing, 3 for printing, 3 for fulfillment services, and 3 for the promotional printing with the assumption that farming out the job to four companies will save you money…A fair assumption.
Assuming an average salary of a production coordinator/manager is 50k at 50 hours a week, that averages out to about $20/hr.
At an average of 20 minutes per vendor research time, that’s 4 hours of your time ($80). A conservative estimate of 20 minutes per vendor to make a decision based on these 12 quotes= another 4 hours ($80). Then you’ll need to cut your purchase orders. Based on the figures researched in the university business study, 4 purchase orders will cost you $400-$500.
You’ll also have to pay shipping between the printer and the manufacturing plant, conservatively estimated at $200, not to mention the follow up with the printer (another 20 minutes for 3 calls to the printer- one placing the order, and 2 follow-ups). Also, there is the follow up with the manufacturing plant, the fulfillment center, and the promotional printer. (Another 20 minutes each as per above= 80 minutes or about $87.)
Finally, the cost of writing checks to 4 vendors at $6 per check (if you have a good on-line financial information system) =$24.
So you’ve now spent $871-971 or nine hours in work time to take care of this order.
Compare that with a true one stop shop where you deal with ONLY one person, your Nova Disc rep, acting as your purchasing agent.
Nova Disc takes care of all the details, managing and arranging the design, printing, manufacturing, packaging, shipping, and fulfillment at NO EXTRA COST.
Here’s the breakdown bottom line…
Research Time /Cost
Other vendors =4 hr / $80
Nova Disc =3 hr / $60
Decision Process Time /Cost
Other vendors =4 hr / $80
Nova Disc =3 hr / $60
(assuming you are decision maker)
PO Cost
Other vendors = $400-500
Nova Disc = $100-125
Shipping Cost
Other vendors = $200
Nova Disc = $0
Follow-up Time/Cost
Other vendors = 1 hr, 20 min./ $27
Nova Disc = 20 min./ $7
Check Writing Cost
Other vendors = $18
Nova Disc = $6
A total of 3 hours or $572-647 saved in this example.
You might still initially contact three vendors for each item to save money, but now you have nine vendors to research instead of twelve. Three vendors for the physical CD-Rom manufacturing, two+Nova for printing, two+Nova for fulfillment services, and two+Nova for promotional printing… that’s three hours for nine vendors vs. four hours for twelve vendors as per the above example.
By choosing Nova Disc, ONE vendor versus three, you immediately save yourself one hour of research ($20) plus $300-375 in purchase order costs plus $200 shipping (we pay for that between printing facility and plant), PLUS only 20 minutes for follow up (save one more hour at another $20).
In the example above, you spent 4 hours to make a vendor decision (for 4 vendors), so let’s say you save one hour to make the decision to work with one vendor. You’d then save 1 hour, another $20. That’s a total of 3 hours in work time saved and $572-647 saved in total.
Now it may not sound like much, but when you consider how many times a year you do this with all your printing, it adds up to a surprising total.
“Nova Disc bailed us out of a mailing crunch, manufacturing 15,000 CD ROM in 2 days and shipping them overnight so we could pack and mail on schedule. You were prompt in your customer service, helped us prepare detailed artwork, saved us logistical expensescompared to other vendors, and most importantly, youmet our deadline with high quality product that we are proud to distribute to our clients. Thank you!”
-S.Goodman, Guerra DeBerry Coody
Nova Disc specializes in rush orders. We are the FASTEST in the industry, bar none. If we can’t do it, you can be assured that it can’t be done.
Consider this…How much does a one week delay actually cost the sales department in lost sales? (Based on usual quantities etc,)
We also guarantee that your finished CD or DVD media product will be an exact digital copy of your master.
Here is a case study of how we handle a complex job…
Bear’s Den Studios production manager recently sent in a CD replication project with very particular color requests. Unfortunately nothing we received was in our templates or to our specifications. We worked with the client to make sure we could meet his needs by changing the color on one part of his artwork to match the rest of his project. In addition, we were on a tight schedule. We were able to fix the sizing on all the artwork to meet specifications, fix the color problem and manufacture and ship within the time frame given.
After the order was received by our client, he wrote us an email…
“The CDs arrived yesterday. The finished product looks excellent and the printing is crisper than I ever would have imagined…The artwork colors worked out just fine and even the red tint of the sepia tone inside tray card is very acceptable and works well with the earth tones of the rest of the project.
I played one of the discs and it sounds at least as good as the CD-R sent to you. It’s almost like the replicating process or glass master improved the sound quality a tiny bit although no mastering work was done by your lab.
The artist picked up most of them from me yesterday and is very pleased as well.
…I’m not at all sure what product quality I would have gotten out of (competitor), or what they would have charged for the artwork changes that was required. The rep seemed all too eager to spout $450 as an artwork alteration fee without having ever seen it, so I suspect that would have been the starting point for the ultimate squeeze. You were fair, honest, and conservative in all ways and I appreciate that…
For being given a project laid out on someone else’s templates, with the wrong photo format, and several difficulties in getting the job done, I’d rate this as a job well done by Nova Disc. Next time I’ll make sure there’s more time for production and get the correct materials to you on your own templates in the first place!”
-Mark Bilger, Bear’s Den Studios
With over ten years experience as a one stop shop for custom manufacturing and printing, Nova Disc has served thousands of companies and corporations…Helping mom and pop retail stores, Broadway theatres, non-profits, media firms and major corporations such as American Express, NASA, Google, L’Oreal, Halston, Viacom/Westwood One, MTV and Steinway Pianos by assembling detailed, complex, custom artwork, manufacturing and printing custom product and delivering top quality merchandise worldwide.
Nova Disc Offers a full line of printing services, including apparel and promotional items, fulfillment and online marketing services, as well as custom cd and dvd replication, with manufacturing plants all across the nation.
In addition to our one stop shop advantages, you’ll find that our pricing is extremely competitive.
Please contact your sales rep. for a custom quote. Let us show you how we can save you time and money by working with Nova Disc…
Thank you,
Michael Nova
Director
Nova Disc
(800) 495-1306
info@novadisc.net
www.novadisc.net
