Print Shop Analysis Leads to Cost Reduction and Efficiency Gains
ABC is a 362-bed community hospital located in the Chicago suburbs. After learning about a cost reduction study performed with another hospital, ABC chose to engage O’Brien as a consultant to identify methods and strategies to reduce the cost associated with print production and distribution. ABC, who hosted its own internal print shop, felt their equipment had begun to age and lose efficiency. Many of the staff who ran the print shop had long gaps of workless hours as electronic medical records and a general print decline eroded the value of their specialized skill sets.
O’Brien conducted leadership interviews and collected data from ABC’s Print Services and Materials Management departments. The information was organized and analyzed to evaluate ordering, production, storage, and distribution improvements that maximized cost reduction between in-house produced and outsourced printing. The results indicated a potential cost savings of $285,000 in year one with subsequent savings potential of over $187,000 annually. What’s more, O’Brien and ABC assured the staff that they would have another opportunity in the hospital if the print shop was indeed closed.
With a significant savings potential, ABC opted to hire O’Brien to manage the entirety of their printed collateral (from simple flyers, to labels, through business forms, and variable print stationery). A common electronic ordering portal was created and cost center billing was introduced to better track usage, cost, and project future need. ABC had a slam dunk cost savings opportunity with the expert assistance of O’Brien. Within the first few months ABC was on their way to freeing capital and generating impact with additional strategic initiatives. Thanks to O’Brien, ABC had one less thing to worry about and one more thing to add to their win column.
Industries Served: Healthcare