Horizon Ins Agency

Horizon Insurance Agency

Memo

To: Linda Wolf, Business Manager

From: PeggyAnne Prudhomme, Analyst

CC: Walter Smith

Date: 4/23/2012

Re: G-Art contract proposal

Encl: multiple year analysis of expenditures

Recommendation:

After reviewing the attached analysis of expenditures for both the G-Art contract and in-house publishing it is my recommendation that the company pursue the contract G-Art has proposed. Based on the analysis Horizon Insurance will save approximately $1.5 million over four years. After the initial four years our current supply of custom ink and paper would need to be replenished and possibly a new custom printer purchased. Both of which could cost the company a considerable amount of money. By not making those purchases, along with the annual savings calculated we would be saving almost $2 million dollars in five years.

Considerations:

While Horizon has the potential to save large sums of money with the G-Art contract, we do need to consider the amount of time that may need to be added to our current publication deadlines by using an outside printing company. Currently, our in-house printing department can produce large amounts of customer mailings on relatively short notice. G-Art deadlines may not be as flexible as they have many customers that they serve and must balance all their printing projects to make most efficient use of their time and resources. Our quarterly newsletter is typically mailed by the end of the second week of each quarter due to our reporting team and printing team working side by side to ensure that all of the previous quarters’ statistics are captured accurately and quickly. We will need to be able to provide that same information to G-Art at the end of every quarter in one packet so that they can print our newsletter and mail to customers.

While this time constraint will require that we adjust our procedures to allow for the extra time required by using an outside printing company, I believe that...