Print Buying
Fair treatment of suppliers is key to surviving recession, CIPS claims
Two procurement industry bodies have stressed that ethical and sustainable buyer-supplier relationships are key to healthy supply chains in the recession.
The Chartered Institute of Purchasing and Supply (CIPS) released its I-Relate study into supply chain relationships across 500 procurement professionals.
According to CIPS chief executive Simon Sperryn: "Collaborative relationships with suppliers are key to holding onto competitive advantage in a declining global market.
"Organisations in pursuit of innovation and sustainable supply chains are being forced to rethink their buyer-supplier relationship model," he added.
The research found that price, quality and delivery remained the three most important factors in buying decisions. Quality and delivery became increasingly important as relationships become more complex, while price remained consistently important.
Factors such as "likeability of salesperson" and geographic proximity were low priorities for buyers.
CIPS representation manager Emma Brooks told printweek.com that while it was a buyer's market, "organisations are finding that if you squeeze suppliers, you'll turn around in a few months and they won't be there".
Brooks recommended more transparent supply chains, similar to Sainsbury's online system through which suppliers could request early payments.
Meanwhile, the International Print Purchasing Standards Association (IPPSA) said buyers with CSR programmes should procure print ethically, as it launched its Openbook website to "bring together different sides of the industry".
IPPSA founder Andrew Bartlett said: "Up until now, print buyers have left it up to printers to ensure their survival. The dynamic has changed. Print buyers want their suppliers to be sustainable."
Bartlett added that print managers offered little transparency and said big companies shouldn't "hide behind middlemen that treat printers unethically".
IPPSA wants to bring together printers and print buyers to set "a minimum gross profit" through its Fair Trade initiative.
See also:
Can best practice really make perfect?
Brooks: 'If you squeeze suppliers, they'll disappear'
Comments
The comments below do not necessarily reflect the views or opinions of printweek.com, Haymarket Media Group or its employees
Chris Bailey - 19 March 2009
Many years ago, as a wet behind the ears junior buyer I came across this. A couple of decades later, the words are still pinned to the notice board by my desk:-
"There are three kinds of print job; 'good', 'quick' and 'cheap'. You can choose any two. A good cheap job won't be quick and a good quick job won't be cheap. but a quick cheap job won't be any good."
Even in these dark days, I reckon it still holds true.
PS it is "grim up north" but the strong will survive I'm sure.
Simon Biltcliffe- Webmart - 19 March 2009
it's a no-brainer for anyone. One needs to be ethical & fair in your dealings with all your suppliers. The closer you are to your suppliers, the more mutual trust you have and the greater competitive advantage you have.
Those clients that don't follow this mantra are guaranteed to fail in the long term. I was at the BMW factory in Oxford years ago \( with the Manufacturing Advisory Service \( it's free- I suggest you all go along to them... we don't even manufacture anything and leaned a LOAD from it) and they said 80% of the added value of the \( then) mew Mini was created by outside contractors!!! Mind blowing trick being missed by all clients/ print managers out there who work against their suppliers... they never get beyond price.
Simon Biltcliffe
MD
WEBMART Ltd
PS iPPSA is a well intentioned red herring in my opinion-the list of objectives are laudable but the delivery is muddle-headed and the business model is all sorts of wrong.
Andrew Bartlett - 19 March 2009
Hi Simon
Its sad that you see iPPSA as your competition when its not. You know what they say about knocking the competition. Tut Tut
You were offered the chance to become totally transparent but you turned it down.
Please only make comments about iPPSA's business model after you have taken the time to understand it. I don't remember you ever taking me up on my offer to tell you all about iPPSA.
I invite you again to become a member of iPPSA
Hi Chris, have a look at iPPSA, I would love you feedback
www.ippsagroup.com
lordof weboffset - 19 March 2009
I agree with Simon about the iPPSA, and I am a printer, and one of his suppliers.
Martin Bloomfield - 19 March 2009
Organisations or people that trade unethically get caught out in the long run. A more interesting issue is the supply chain shape of the future for this sector. I think I'm right in saying that the ultimate ambition of most car makers now is to restrict themselves to sticking a badge on the front and focussing on design & marketing, and as Simon points out 80% of BMW's added value is done by partners in the supply chain. That's the intersting challenge here and it's got a lot more in it than just the channell \(i.e. Print management companies and account execs or direct business).
Andrew, I don't think you should be afronted by Simons comments, it's opinion. I couldn't possibly comment myself.
Martin
PS
My partner has a BMW Mini and was devastated to be told it allegidly has a Peogeot gearbox. that's what happens when you buy a shiny badge.
Matthew Bird - 20 March 2009
The points made in the article are totally valid in that empathetic collaboration with suppliers is fundamental to the quality of the products and services required by clients. My only issue is the inaccurate and sweeping generalisation made by Andrew with regard to print managers. At etrinsic we have long been committed to working with our suppliers to achieve mutual benefit relative to value solutions for our clients. It is no more true to brand all print managers as being insufficiently transparent as it is to accuse all suppliers of being uisufficiently pro-active. The truth is that good, well run and ethical businesses, be they manufacturers or print management organisations have a sustainable buisness model which continually provides value to clients. Whilst certainly in the PM market there are a number of unethical players, I would urge Andrew to take a closer look, \(this may be aided by his perhaps removing the large chip on his shoulder) and to attain a more rounded view of the PM market, rather than unfairly damning the whole sector, based on the poor practices of the few.
MATT BIRD
MD
etrinsic
Andrew Bartlett - 20 March 2009
Hi Matthew
Well said, I absolutely agree with everything you have written and yes as a buyer and as a printer I had negative views on PMC's but my views have changed. In my heart I'm still not an out sourcing person but out sourcing is a legitimate strategy and can add value in ways that other solutions cannot.
Lets make sure that good ethical companies are not tarred with the same brush. I'm sure that most buyers feel the same way about their peers and its the same for printers.
If we can create transparency throughout the whole supply chain, including what happens within corporates, then we should be able to show a clear difference and reward the best on all sides.
All ethical transparent companies are welcome to join iPPSA.
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