Despite promises of a paperless office, manufacturers and other businesses still spend significant sums each year on printing, business forms, packaging, point of purchases displays and other related products. For some companies, this can amount to 3% of their annual revenues. For a $1 billion company, that can mean up to $30 million each year.
Even in today's cost-conscious environment, says William Gindlesperger, CEO of e-Lynxx Corp., most company CEOs don't look at the cost of purchased goods closely enough. Their background usually is in operations, accounting or sales, and that is where their cost-cutting focus will be. But Gindlesperger says they should be "paying attention to purchasing because every dollar they save is the same as $10 to $20 in new sales."
Gindlesperger's business is built on providing clients with "measurable cost savings." The company helps clients determine which of its print suppliers (e-Lynxx maintains a large database of print vendors to assist with this process) to put into a database. Attributes for each vendor such as production capabilities and socioeconomic data (union or non-union, minority or women-owned, etc.) are entered.
Then the buyer's needs for its project are also entered in the database. This can include selection criteria such as product category, quality level and geographic location. The buyer's selection criteria are then matched up against the buyer's supplier base to identify the suppliers who are qualified for the job and an electronic solicitation is sent to each of them requesting a bid or price quotation.
William Gindlesperger, CEO, e-Lynxx Corp.
e-Lynxx's ambitions go beyond using its methodology for print services. In November 2008, the company's 10-year quest to patent its procurement methodology was successful. Gindlesperger said companies that contract to use its system for print services will be able to receive a license to use the methodology for any other procurement needs they have for specification-based goods and services.