(Author: Rochester Institute of Technology Twyla J.Cummings, Ph.D., Paul & Louise Miller) Print logistics is the last link in the print supply chain. For printing companies around the world, logistics is a key link in distributing the final printed products to consumers or end users. Once the logistics link is not completed on time and accurately, it will seriously affect publishers and consumers. The importance of logistics can be expressed from the following aspects. Printer customers only check out after they receive the print. If you want to fully understand the needs and advantages of printed matter logistics, you need to involve the following aspects: Printing companies need to understand the internal and external circulation of printed materials related to logistics. Logistics process In the logistics process, the processed prints are delivered to the transit area, distributed and delivered by the printing company or publisher, and then transported to the destination specified by the customer (see Figure 1). Finally, the customer service representative or business representative confirms the feedback of the shipment and delivery of the batch of printed materials. Figure 1: Basic logistics process Although logistics is considered to be a very important process, due to the changes in printed material information, it is difficult for product logistics documents to form a standard document like Figure 1, and only a few printing companies will have standard logistics documents. In fact, for product counting and new employees, this standard document is a very useful tool, which can reduce the error rate in the logistics process and improve the efficiency of logistics. Print logistics companies should start the logistics of printed products on the basis of understanding the logistics needs of customers in advance. Only when you have a clear understanding of the customer's logistics needs can you start the production of printed materials. Otherwise, the problems of delayed production and delayed transportation will be unavoidable. The main challenges of logistics No matter what products are transported, all logistics companies will face many challenges. Customers rely on logistics companies to deliver products, and logistics companies will be responsible for the products until they reach the customers. Therefore, the main challenges facing logistics companies include the following aspects. When the product arrives at its destination. storage In the printed matter logistics process, it is necessary to store unprocessed materials, finished products and residual products, and it is necessary to have enough storage space. Printing companies that do not have enough storage space will encounter problems in ensuring the safety of printed materials and managing inventory. Many printing companies can't afford the cost burden of warehousing outside the factory. Therefore, efficient storage methods and reasonable work processes are very necessary for printing companies. Some printing companies think: "Due to insufficient storage space, the storage of printed matter becomes a headache." Other printing companies think: "If the printed matter is stored in the factory area, it may cause damage to the company and increase material handling. risks of." Troy Reynolds, editor of the magazine "Distribution Digest", learned from the management of the warehouse and logistics center that "not enough storage space" has become the biggest challenge for warehouse and logistics centers. In order to meet these challenges, Reynolds made several suggestions: evaluate the pallet's external dimensions in advance, handle unnecessary materials and additional inventory, and discover hidden storage space. In addition, many printing companies use JIT (just-in-time just-in-time production) to avoid hoarding of production materials. For some printing companies that must store products, they can take the method of storage outside the factory or establish a designated finished product storage area to solve the problem. rate of return Whether the customer receives the printed matter on time directly determines the customer's payment, and the customer's payment determines the cash flow of the printing company. Many printing companies are not responsible for storing finished products, and their payment requirements can vary from 30 days to 120 days depending on the location. If logistics services can provide value to printing companies and their customers, then the corresponding costs can be assessed. Even if the logistics service is free, the item should be included in the customer's order to indicate that there are logistics services in addition to production and processing work. Another way to increase profitability is to reduce costs. Reducing operating costs and reducing production waste are both key elements for improving profitability. Printing companies can consider the following issues. In the company's strategic planning, determine the reduction in cost and waste. In general, customers of printing companies do not provide particularly clear shipping requirements when issuing printing orders, which forces printing companies to store printed products after printing. Unclear customer information leads to a series of problems, including warehousing and postponement of transportation time. Complaints such as "We are waiting for instructions from customers, there are many undecided work orders" have become a common problem faced by printing companies. For customers, they hope that printing companies can assume more responsibility, printing companies can directly inform them that the printed matter is already on the way to transportation. Therefore, information communication between printing companies and customers is very necessary. Time and schedule Poor communication of customer information can affect time and schedule. Some special needs of customers will also bring great difficulties to the schedule. Another prominent problem is that customers temporarily change the initial shipping requirements. One way to solve these problems is to value the importance of the freight department in the production process. The advantages of the freight department lie in the following aspects. Reduce the error rate. Printing companies and logistics companies should appear in front of customers in the role of consultants, and provide management recommendations for customers to meet their various needs. Printing companies should also encourage their customers to use various means (such as email confirmation, order tracking software and other new technologies) to manage the products shipped in real time. There are other ways to improve various problems caused by poor customer information exchange. Rearrange the storage space of the warehouse. "In a highly competitive industry, how to reduce costs is a key factor for printing companies to consider." Andrew Paparozzi, president and economist of the National Association of Printing Leaders (NAPL) said. "Should the cost be passed on to the customer in the form of an increase in price? Or should it be absorbed in the form of improving production efficiency and product quality? It is a question that every enterprise should consider." The lack of truck drivers and the increase in fuel prices are two of the rising freight costs major factor. Lack of truck drivers In the US, approximately 70% of products are transported by truck. In the future, the lack of truck drivers will affect the distribution and transportation of printed materials. According to statistics from the American Truck Association (ATA), the long-distance trucking industry is facing a talent gap of 20,000 drivers, and by 2014, this gap will continue to expand to more than 100,000. With the development of the times, the retirement of old drivers and young drivers spending more time with their families are the two main reasons for the lack of truck drivers. Rising fuel prices On August 12, 2005, the price of gasoline once reached $ 67 / barrel, which was the increase in transportation costs for many companies. In fact, the increase in fuel prices has had a serious impact on many industries, including the printing industry. Some freight companies have to raise their prices. Tavio Headley, chief economist of the American Truck Association, said: "In the trucking industry, fuel costs account for 10% -20% of the total business cost." In 2005, the RIT (Rochester Institute of Technology) printing industry center (mainly researching the development and profitability of the printing field) conducted a study on the logistics of printed matter. 50% of the participants believe that rising fuel prices have a negative effect on the development of logistics business. Many people have to absorb the additional costs themselves because they provide fixed-price logistics services or free logistics services. Another 50% of the participants believe that the increase in fuel prices has no direct impact on the development of logistics business, because they pass the cost of transportation and logistics to customers. Despite this, most participants noticed that their own transportation costs or the cost of cooperating with transportation companies are increasing. In addition, some participants also pointed out that they passed on the cost pressure caused by rising fuel prices to their customers. They reduced the quality of printing or used thinner printing materials, but ultimately affected the development of the business. In order to stay competitive and increase business volume, some fast-reacting printing companies have already begun investing in additional truck driving schools. Other printing companies have also begun to establish local distribution and delivery stations and negotiate prices with truck companies. Fuel prices will continue to rise, and printing companies have begun to reduce their shipping partners, negotiate with third-party logistics companies and the USPS (US Postal Service Administration) on price issues, and pass on some costs to customers. Some other initiatives include the following. Signing a long-term trucking contract can prevent price fluctuations. USPS (United States Postal Service Administration) is an important part of print logistics. PIA / GATF (American Printing Industry Association / American Graphic Arts Technology Foundation) estimates that approximately 45% of printed materials are shipped through postal channels, and the annual printed shipments are approximately US $ 72 billion. All commercial printing companies will be affected by USPS, which is the most commonly used method for sending direct mail, catalog materials, and commercial mail. According to PIA / GATF statistics, the printing industry is divided into at least two parts: some rely on postal services, and some are forced to use postal services. The increase in postal costs has forced customers of printing companies to reconsider printing volume and reduce the number of printing and logistics. This situation is a great challenge for commercial printing companies (customer products use mail logistics). Printing companies affected by this challenge should take the following measures. Establish a more intimate and stable partnership with USPS and provide customers with more favorable discounts. Printed goods logistics: a value-added service? More and more printing companies are changing their strategies. They provide value-added services to customers to achieve business growth and increase the company's profitability. Value-added services can be defined as providing customers with a "one-stop" service to improve production efficiency and reduce customer costs. Printing companies regard logistics services as a reason for value-added services. Customers will pay for these value-added services.
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Printer customers only pay for printer services when they receive the printed matter at the right place at the right time and at the correct time.
Logistics will increase the cost of printed matter production, and printers must pay for the losses caused by mistakes in the logistics process.
Printing industry analysts need to pay attention to logistics trends and closely related economic factors.
Printing school educators need to add the content of logistics to their courses. Students can understand the complexity of logistics and the impact of logistics on the production process of printed materials through learning.
There are many printed goods transportation methods used by transportation suppliers, such as highway transportation, railway transportation, water transportation and air transportation, but many transportation rules will affect the way of transportation, so transportation suppliers must be proactive in the process of product transportation.
The US Postal Service Administration (USPS) has established rules for sending and receiving mail.
When faced with customer budget constraints, logistics providers need to consider cost and efficiency.
During transportation, storage, etc., products must be protected from damage.
Let customers think that logistics services are value-added services and are full of competition.
Other major challenges include: storage, profitability, customer information exchange, rising transportation costs, and mailing costs. The above challenges are also issues that every printing company should seriously consider. Dealing with these issues will also handle the relationship between the company's business development and customers.
When letting customers sign samples, use remote proofing instead of hard proofing.
Identify opportunities to reduce costs during joint mailing and joint shipments.
Customer information exchange
Increase product quality, improve customer relationship and reduce waste
Let customers slowly adapt to the workflow of logistics through practice.
Wait for the customer's needs to be confirmed before starting work.
Assess the profitability of short-run work and on-demand printing.
Increased transportation costs
Use the packing order to fill the truck.
Establish cooperation with printing companies in different places.
Use more remote proofing.
Postal cost
Actively improve the existing mailing methods.
Instill some ideas to customers, such as: redesigning products, re-selecting printing materials (bottom quantity), and using joint mailing and improved mailing methods.
Like other value-added services, logistics services are a unique service.
Logistics service is a link to provide customers with a full range of solutions.
In the past 10 years, printing companies have been paying more attention to value-added services. Today, in the printing industry, only those printing companies that differentiate themselves and provide value-added services to customers can be truly successful.
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