Fall 2004                    return to newsletter contents page

The Role of the Supplier

Industry Panel presented at the 2004 Management Workshop in Las Vegas. Panelists include: Neil Saunders, Container Graphics Corp.; Jan Noller, Graphic Design Services; Bill Ruch, NPP Packaging Graphics Specialists; Chris Deye, Phototype. Moderated by Lee Grantham, Mark Trece.

While there were many highlights of the 2004 Fall Management Conference, the supplier panel provided a lively and captivating discussion. Exceptional facilitation of the speaker and each panelist’s candidness made for excellent dialogue among the group and the audience. As a result, many of those in attendance now have a greater appreciation and understanding of the issues facing our industry. The following article will address some of the more critical issues that were discussed.

The panel was asked to define the role of the supplier as viewed by the Consumer Product Company.  Most of the panelists agreed that the supplier needs to be more of a consultant.  In a time when retailers are becoming competitive with their suppliers, the CPC is looking for ‘partners’ with whom they can consult early in the process and show them ways to make their lives easier. 

Today, many of the FPPA members are selling to the converter community.  While there is a clear vendor-supplier relationship between the Tradeshop and converter, the real customer is the CPC.  The CPC can ultimately influence who performs the various steps in the production of their packages and which technologies are used to complete those steps.  By finding ways to work directly with the CPC, the Tradeshop begins to form a relationship that can translate into more business in the future.

One way to begin working directly with the CPC is to educate them on methods of efficiency.  Most on the panel agreed that the top priorities of the CPC are cost reduction, product improvement and time to market.  By educating the CPC on ways to address their priorities, the Tradeshop becomes an invaluable member of the team.  An example during the event focused on retailer Walmart, which has been demanding shortened time to market.  Responsibility to help shorten the production cycle becomes a requirement on us, but we add value when we show the CPC that we understand the complete cycle and can show how, or provide tools, that can make improvements beyond our traditional function.

The panel was asked what they see as the biggest technology change in the next five years.  Many felt that new management techniques for controlling costs and better QC & MIS systems would make the biggest impact on their business.  The paradigm seems to be shifting from craft-based businesses to more manufacturing type production.  Tools to effect this transition ranked at the top of the list.

Panelists cited more pressure in the chain to have direct connection into their workflow process.  The CPC wants the ability to track information electronically to improve communication or help identify problems early.  JDF and PDF were credited with helping to generate systems such as these that will provide automation in the processes.   

The panelists were also asked where they anticipate great value and cost savings by using digital workflow and platemaking, particularly as it relates to Corrugated.  Respondents said that they saw cost savings using digital workflow in prepress but in their experience, there were higher costs in digital plates and platemaking.  One audience member commented that the digital product did not necessarily translate into a better product for Corrugated printing.

“What about CtP” another asked. “Are CPCs demanding CtP?”  One panelist answered that for narrow and wide web printing the CPCs have been sold on the CtP technology by the manufacturers.

Then came the topic of analog vs. digital proofing.  Panelists were asked how well non-process colors and proofing to varying substrates was handled.  One panelist cited his experience using the Approval vs. the Latran digital proofer.  Cost aside, he said, his experience was that the Approval did better, reproducing about 90 ~ 95% of the PMS colors.  Another panel member said he would like to get away from analog proofing altogether.

The panelists were asked if they could or would charge for creating or fixing artwork.  This caused a stir in the panel as well as the audience. Some of the panelists believed that they owned any changes they made to the artwork.  In their opinion, if the end user asks for the file back, what they return is the original and not the ‘fixed’ artwork.  Although it was also cited that many customers don’t ask for the files back.  One panel member did claim to return ‘fixed’ files back to their customers.

Digital printing was also a hot topic. Asked whether they felt digital printing technology could replace flexographic printing altogether, panelists noted that those selling digital printing are selling it as new products such as for short-run, market testing, promotion and product samples.  At first there seemed to be a general agreement that for the short term it was not immediately impacting the flexo printing industry.

There were several reasons noted for the delay in adopting digital printing. One, the considerable capital investment that has already been made in traditional presses prevents the converter from making a change. Two, better productivity in the traditional process weighed against the economies of scale for digital printing.

However, it was noted that there would continue to be an increase in demand for digital printing technology, especially as the quality and speed continue to improve.  Better production speeds have been obtained with digital print technology due to water-based inks and UV inks have allowed more versatile substrates to be used in the process.

There was much discussion and speculation concerning when digital printing would become a driving force in the industry.  The somewhat heated discussion was set aside, and picked up again in another presentation the following day.

Finally, everyone was asked how Mergers and Acquisitions in the converter arena affected their business.  There was general agreement that converter consolidations have impacted business since they led to more centralization of purchasing.  This appears to have had an especially negative impact on the independent supplier. Their buying has shifted to existing corporate vendors that have previously established relationships.

The information presented on this panel was both timely and beneficial.  The discussions were very well put together and feedback on this session was positive.  Several comments about the panel discussion were:

“Experience in the industry was apparent with each panel member.”

“A good blend of the members heavily involved in FPPA and others like Chris Deye who add perspective."

“Great job by the moderator!”