Knowing How to Ship to GPO Means the Difference Between Success and Rejection
All of this requires close attention to detail, patience, persistence and knowledge. This is where government print management experts can make the difference for you. In addition to assisting with the production and shipping processes, government print management experts assist with specification interpretation, proposal preparation, bidding process management, change order negotiation, invoice preparation and collection. Full representational services, accurate information, market intelligence, past price histories, and access to all available GPO solicitations are all an integral and requisite part of the package. The most effective GPO print suppliers have two things in common – (1) they use a print management firm to ensure their success and (2) they maximize usage of production capacity. Here’s how:
First, print suppliers receive from the government print management firm all available GPO and other government solicitations that meet their individualized production requirements and capabilities. This allows each to bid on work which conveniently fills otherwise unused production time, thereby adding revenues and increasing profitability. This is key because production utilization for print suppliers, using a government print management firm, increases from an average of 70 percent to full utilization of 90 percent to 95 percent. While many jobs are bid low in price due to intense competition, other job opportunities—when managed by the print management firm in partnership with the supplier—command higher than commercial prices because of the job’s uniqueness, quick timing requirements or limited availability.
With a steady flow of government work, suppliers improve profits. Before GPO work, a print supplier can average 2.5% profitability on 70% production utilization. Add GPO work through services of an expert government print management firm to manage the relationship, and bottom line profitability can increase to 10% to 15% of revenue.
Working with GPO can certainly boost your profits. Those who are successful understand what the GPO wants, how they want it and when they want it from winning the order, to delivering the finished product to invoicing correctly and getting paid in 21 days.