Global Syndicate to Help Australian Printers Buy Supplies

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Date: Tuesday May 8, 2012 08:28:52 am
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    $2.6bn Global Syndicate to Help Australian Printers Buy Supplies Cheaper

    A select group of independent printers are aiming to negotiate the kinds of volume discounts that have traditionally been the reserve of major groups like Blue Star, Geon and PMP.

    Up to 25 medium-sized firms are expected to join the newly launched local arm of Independent Printers Worldwide (IPW), a member buying syndicate that comprises a combined turnover of US$2.6 billion across the US and Europe.

    The Australian and New Zealand push is being spearheaded by former PMP and McPherson’s Printing Group man Mark Campbell, who has taken the mantle of director of IPW’s trans-Tasman subsidiary.

    Campbell explained: "IPW acts as the ‘vice-president of procurement’ for independently owned printing companies, providing access and participation in nationally and globally negotiated contracts that leverage group buying power."

    He said that IPW had almost finalised its roll call of 25 founding members. When combined, this group will wield the kind of buying power normally associated with major multi-state or trans-Tasman groups – which will not be eligible for IPW membership.

    "In response to increased industry consolidation, IPW’s aim is to ensure the market stays competitive by allowing entrepreneurial printers to remain independent but benefit from competitive pricing, reduced procurement costs and improved operating efficiencies, among other incentive-based benefits," said Campbell.

    While the list is currently being restricted to those 25 founding members, Campbell said "there is no limit to the number of companies that can be involved in IPW".

    He said the group is targeting printers of $10 million to $50 million, adding: "IPW maintains the right of refusal to any applicant."

    One start-up member is Melbourne-based PrintBound. Managing director Mauro Mattarucco told ProPrint: "It sounded like a good idea and something to be part of.

    "I trust Mark Campbell. I have decided to put our name down to take further part in the discussion and see how it will develop, with the trust that the ideas Mark has about forming a buying group and having the ability to be a bit more competitive with the larger firms will help us cut down material costs."

    IPW’s remit covers the span of supplies, from printing equipment and consumables to more general items, such as power.

    Campbell said that, for instance, when the 170 members in the US jointly planned their cap ex requirements, they concluded they needed 61 digital presses from one manufacturer, opening the door for a significant volume discount.

    In terms of fees, Campbell said: "Members pay an administration fee on a quarterly basis, the greater of either a percentage of procurement savings, or a dollar amount.

    "In real terms, the fee charged is about 1% of purchases made as part of the programme. The significant savings through discounts and rebate payments available to members make this more than worthwhile."

    The downward pressure on prices is unlikely to be universally accepted by the vendor community, but Campbell said "the response to date has been extremely favourable".

    "There are always going to be naysayers, but the key suppliers have been forthcoming in their acceptance of IPW’s model."

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