07.17.06
Globalization of our economy has impacted us in so many ways over the past 20 years. And it will continue to grow and change our lives, in most cases for the better. Companies who have recognized this reality of doing business are thriving, not just surviving.
As with most global expansions, consolidation and downsizing follows. Development of bespoke service centers matched to specific market areas and focused on specific product mixes begin to evolve. Those organizations with an historic global presence and those who have the wherewithal to acquire their way into a global position are and will continue to lead the way.
However, smaller companies also fit into the mix. Those with the business savvy to be nimble, staying "lean and mean" and concentrating on their core competencies will also thrive in this growing global economy.
This trend will be similar for all ends of the packaging business. From design firms to prepress organizers to the printer converters, all suppliers will be in alignment to the global requirements of our business as we move into the future.
Consumer products companies (CPCs) are, almost to a company, seeking ways to consolidate their sources of supply and drive cost out of every process impacting their global business. They are looking into the emerging Asian market for materials as well as packaging components as one strong example.
As the CPCs chase this goal, the supplier community will follow. In some instances, design firms and prepress suppliers are following their CPC clients into these emerging areas, such as China. Not only is there a need for proximity to the printer/converter for services such as design and prepress, but there is also opportunity for the prepress organizer to supplement their typical services with additional value added service products.
These can take many forms from a broad consulting arrangement to assist the printer with process control, color management, Lean Manufacturing techniques, and more formal quality control programs.
What is happening is that the CPC wants to achieve the same level of quality achievable by the domestic supplier when the business moves to the lower cost emerging market supplier. In order to accomplish this, standardization has to be the foundation upon which the relationship is built. This factor seems to be the key to implementing a successful move to the emerging market.
CPCs are working with their prepress organizers to develop standards locally which can be adopted globally for the production of packaging so that brand recognition is consistent and the presentation of the brand graphics are consistent across all print media across the globe.
As we know, digital communication has assisted in enabling the achievement of global consistency. As much as digital graphic files can be dispatched, viewed and collaborated upon via web enabled tools, so can the project management, order tracking, and all of the business management tools be utilized to support this effort.
The organizations that embrace and implement a suite of digital communication tools in the short term will hit the ground running when pursuing alignment with globally positioned CPCs and their printer networks around the world.
As this change to a global business model develops we will see a continued trend in consolidation on the part of the CPCs and an alignment by the prepress suppliers to be more local to the centers of manufacturing. This capability for alignment will result in delineation among the prepress supplier community based on size and strength of capability so that in the end one could imagine that three to four of the largest suppliers in the US will sit at the top of the heap worldwide.
The progression is that initially an alliance is created between a large North American supplier and one local to the emerging market. Longer term, the alliance can develop into an acquisition by the larger firm or simply a continuation of the alliance based on volume, etc.
To illustrate this concept, I'll refer to a program currently under way with a North American prepress organizer and one of its global CPC clients.
Initially, the CPC recognized that the organization of its design and prepress supplier network was out of control. For several years in the recent past, the CPC acquired complementary brands to round out its portfolio, and in the process divested itself of those brands that were either weak performers or just simply didn't fit the long term strategy of the company. The result was that as it acquired the new brands, it also inherited the supply chains associated with these brands. The job now was to analyze and rationalize these sources of supply. Once done, the decision was made to initially consolidate their prepress production under one source.
This was a monumental job, because it required the CPC and the designated prepress supplier to extract the brand assets from a plethora of suppliers. As you can well imagine, when the call went out to return the original graphic files to the CPC, the actual time to retrieve them and preflight them all was staggering. In some unfortunate cases, the files received were in need of reworking and in some cases needed to be rebuilt from scratch. All the while life goes on, and the CPC needed to stay on course with product redesigns, line extensions and launches of new product to the market.
Immediately it was recognized that the need for a central repository of all brand assets would be essential for the CPC as well as the prepress supplier. This not only provides organization and efficiencies for the prepress supplier going forward, but works as an insurance policy for the CPC in the event of a change of suppliers down the line.
A digital asset management system such as this will enable more streamlined workflows by allowing access, on a privilege basis, to the database by the designers, internal brand, legal, supply, and procurement staff, as well as the printer/converters. Once the central repository is developed, all assets are uploaded to the system as the projects are released commercially. The prepress provider manages the database and charges a fee for all uploads, and in most cases a monthly asset management fee is charged.
The system is secure and controls access with user name and passwords; it is set up to send a report to the key CPC manager notifying him/her that activity has taken place; it identifies the person accessing the system and requesting assets for either download or output to CD media; it closes the loop, and all stakeholders are informed.
Because of the volume of projects and the need to coordinate activities between brand managers, innovation, procurement and package commercialization, and the prepress production facility, it was necessary for the prepress supplier to place an individual on site at the CPC. This is a huge benefit to the CPC and also ensures that the prepress supplier is intimately involved in every project from concept creation to final proof approvals. This is not a requirement in every case but should be determined on a case by case basis. It can certainly be influenced by sheer volume but also can be required due to the nature of the project development activity and the resources within the CPC.
To continue with this example, once a project is developed and is ready to be submitted to the production facility a brief is composed and electronically forwarded to the production facility where a customer service representative can review the requirements, enter the order and monitor its progress from this point forward. The inside rep or project manager has responsibility to coordinate the activities between the CPC and the printer to ensure timely dispatch of information, and is responsible for the management of the timeline. Ultimately, the on-site staff could utilize digital tools to enable them to develop their brief, which in turn would enter an order on the production facility and generate a budgetary quote for the project. These tools are available and are integrated into the workflow as the need arises.
Systems are in place to enable the project to be tracked both internally and externally so that all stakeholders are in the loop and can readily monitor their projects without the need for phone calls and e-mail communication. Obviously the good old phone call is the best communication tool we have, but in today's world it seems to have been overtaken by e-mail as the prime communication tool. Too much room for interpretation, in my humble opinion.
These systems can be set up to provide certain stakeholders with certain information most helpful to their particular area of responsibility. For example, the internal production folks and the on-site staff will want to be privy to all detailed amendment communications, specific job manufacturing specification and instructions, whereas the brand or project manager of the CPC wants to see anticipated release dates, historic dispatches (who received what when) and so on. The printer, if given access to this order tracking system, could be given the privilege to access the latest file version in order to conduct preproduction planning sessions or advise on how to build the job to better suit his print/convert environment.
Rounds of approvals can be collaborated upon and handled totally digitally as the project progresses through the process. All of the collaborating documentation is captured and stored in the database for reference during a post mortem, for example.
Brand managers are keen to deliver to the consumer the key messaging and positioning they intend for their brands to drive the ultimate sale.
Historically, the brand staff will work with designers to create initial graphic representation of this message. It is at this stage that the print production process has to be considered. It is the sad reality that so often a brand manager will sign off on a design concept only to be disappointed by the final package, simply because the printer didn't have the input he needed to assist with developing the right expectation.
In the case of the supplier in our example, this was recognized early on and dealt with to ensure that brand expectations could be understood and that a more accurate expectation could be set.
Branded colors are more difficult to control than process colors in most cases, especially when carrying these colors across various packaging media. Process color printing capability is profiled using a standard characterization form, and digital files are customized for output to the particular printer.
As to the brand colors, in most cases, the packaging requirements can involve labels, folding cartons, shipping containers, and point-of-sale displays. In some cases the print media is more extensive, reaching across signage and retail requirements. The objective is to determine a common denominator for all print media when reproducing the branded colors. The prepress provider is given the task of coordinating this effort.
The process starts with the design target where conventional PMS colors are established. The prepress provider then analyzes this color from a colorimetric standpoint and provides this data to the various printers, who then submit a drawdown on the particular substrate used to produce the packaging component. These are then analyzed and it is determined if they are within spec. A specification relative to delta E variation is established by the CPC in most cases after consultation with the prepress organizer.
The lowest common denominator is selected from the submissions and then forwarded to the printers with all of the appropriate spectral data so that another drawdown can be submitted for final approval. Once this color is defined it is now labeled as a brand color and the PMS designation is dropped. The new color standard is now placed into a library for future use by designers and all other graphical subsequent uses. From this point forward all packaging components will be aligned relative to the branded colors as well as the previously profiled process color specifications. The result is graphic color consistency within the brand.
In our example, the process was evaluated within one brand to determine its viability and benefit. Now having successfully implemented it for a particular brand, the CPC has decided to roll the program out across more key brands and deploy it globally.
It is apparent that programs such as described briefly here will set the tone for how CPCs move forward in the globalization of their packaging procurement. Prepress suppliers are the key to organizing this process as they are the central clearing house for all packaging graphic output. The printers align themselves with a standardized communication system organized by the prepress supplier at the direction of the CPC, and all parties are linked digitally. The CPC achieves its overriding objective: to represent its brands consistently on a global level while consolidating its sources of supply and driving cost out of the process.
The message is clear: Digital communication systems are available, working on a routine basis and the industry needs to adopt and implement these tools in order to continue to keep pace with the demands of the consumer products companies.
As with most global expansions, consolidation and downsizing follows. Development of bespoke service centers matched to specific market areas and focused on specific product mixes begin to evolve. Those organizations with an historic global presence and those who have the wherewithal to acquire their way into a global position are and will continue to lead the way.
However, smaller companies also fit into the mix. Those with the business savvy to be nimble, staying "lean and mean" and concentrating on their core competencies will also thrive in this growing global economy.
This trend will be similar for all ends of the packaging business. From design firms to prepress organizers to the printer converters, all suppliers will be in alignment to the global requirements of our business as we move into the future.
Consumer products companies (CPCs) are, almost to a company, seeking ways to consolidate their sources of supply and drive cost out of every process impacting their global business. They are looking into the emerging Asian market for materials as well as packaging components as one strong example.
As the CPCs chase this goal, the supplier community will follow. In some instances, design firms and prepress suppliers are following their CPC clients into these emerging areas, such as China. Not only is there a need for proximity to the printer/converter for services such as design and prepress, but there is also opportunity for the prepress organizer to supplement their typical services with additional value added service products.
These can take many forms from a broad consulting arrangement to assist the printer with process control, color management, Lean Manufacturing techniques, and more formal quality control programs.
What is happening is that the CPC wants to achieve the same level of quality achievable by the domestic supplier when the business moves to the lower cost emerging market supplier. In order to accomplish this, standardization has to be the foundation upon which the relationship is built. This factor seems to be the key to implementing a successful move to the emerging market.
CPCs are working with their prepress organizers to develop standards locally which can be adopted globally for the production of packaging so that brand recognition is consistent and the presentation of the brand graphics are consistent across all print media across the globe.
As we know, digital communication has assisted in enabling the achievement of global consistency. As much as digital graphic files can be dispatched, viewed and collaborated upon via web enabled tools, so can the project management, order tracking, and all of the business management tools be utilized to support this effort.
The organizations that embrace and implement a suite of digital communication tools in the short term will hit the ground running when pursuing alignment with globally positioned CPCs and their printer networks around the world.
As this change to a global business model develops we will see a continued trend in consolidation on the part of the CPCs and an alignment by the prepress suppliers to be more local to the centers of manufacturing. This capability for alignment will result in delineation among the prepress supplier community based on size and strength of capability so that in the end one could imagine that three to four of the largest suppliers in the US will sit at the top of the heap worldwide.
The progression is that initially an alliance is created between a large North American supplier and one local to the emerging market. Longer term, the alliance can develop into an acquisition by the larger firm or simply a continuation of the alliance based on volume, etc.
A case in point
To illustrate this concept, I'll refer to a program currently under way with a North American prepress organizer and one of its global CPC clients.
Initially, the CPC recognized that the organization of its design and prepress supplier network was out of control. For several years in the recent past, the CPC acquired complementary brands to round out its portfolio, and in the process divested itself of those brands that were either weak performers or just simply didn't fit the long term strategy of the company. The result was that as it acquired the new brands, it also inherited the supply chains associated with these brands. The job now was to analyze and rationalize these sources of supply. Once done, the decision was made to initially consolidate their prepress production under one source.
This was a monumental job, because it required the CPC and the designated prepress supplier to extract the brand assets from a plethora of suppliers. As you can well imagine, when the call went out to return the original graphic files to the CPC, the actual time to retrieve them and preflight them all was staggering. In some unfortunate cases, the files received were in need of reworking and in some cases needed to be rebuilt from scratch. All the while life goes on, and the CPC needed to stay on course with product redesigns, line extensions and launches of new product to the market.
Immediately it was recognized that the need for a central repository of all brand assets would be essential for the CPC as well as the prepress supplier. This not only provides organization and efficiencies for the prepress supplier going forward, but works as an insurance policy for the CPC in the event of a change of suppliers down the line.
A digital asset management system such as this will enable more streamlined workflows by allowing access, on a privilege basis, to the database by the designers, internal brand, legal, supply, and procurement staff, as well as the printer/converters. Once the central repository is developed, all assets are uploaded to the system as the projects are released commercially. The prepress provider manages the database and charges a fee for all uploads, and in most cases a monthly asset management fee is charged.
The system is secure and controls access with user name and passwords; it is set up to send a report to the key CPC manager notifying him/her that activity has taken place; it identifies the person accessing the system and requesting assets for either download or output to CD media; it closes the loop, and all stakeholders are informed.
Because of the volume of projects and the need to coordinate activities between brand managers, innovation, procurement and package commercialization, and the prepress production facility, it was necessary for the prepress supplier to place an individual on site at the CPC. This is a huge benefit to the CPC and also ensures that the prepress supplier is intimately involved in every project from concept creation to final proof approvals. This is not a requirement in every case but should be determined on a case by case basis. It can certainly be influenced by sheer volume but also can be required due to the nature of the project development activity and the resources within the CPC.
To continue with this example, once a project is developed and is ready to be submitted to the production facility a brief is composed and electronically forwarded to the production facility where a customer service representative can review the requirements, enter the order and monitor its progress from this point forward. The inside rep or project manager has responsibility to coordinate the activities between the CPC and the printer to ensure timely dispatch of information, and is responsible for the management of the timeline. Ultimately, the on-site staff could utilize digital tools to enable them to develop their brief, which in turn would enter an order on the production facility and generate a budgetary quote for the project. These tools are available and are integrated into the workflow as the need arises.
Systems are in place to enable the project to be tracked both internally and externally so that all stakeholders are in the loop and can readily monitor their projects without the need for phone calls and e-mail communication. Obviously the good old phone call is the best communication tool we have, but in today's world it seems to have been overtaken by e-mail as the prime communication tool. Too much room for interpretation, in my humble opinion.
These systems can be set up to provide certain stakeholders with certain information most helpful to their particular area of responsibility. For example, the internal production folks and the on-site staff will want to be privy to all detailed amendment communications, specific job manufacturing specification and instructions, whereas the brand or project manager of the CPC wants to see anticipated release dates, historic dispatches (who received what when) and so on. The printer, if given access to this order tracking system, could be given the privilege to access the latest file version in order to conduct preproduction planning sessions or advise on how to build the job to better suit his print/convert environment.
Rounds of approvals can be collaborated upon and handled totally digitally as the project progresses through the process. All of the collaborating documentation is captured and stored in the database for reference during a post mortem, for example.
Color standards
Brand managers are keen to deliver to the consumer the key messaging and positioning they intend for their brands to drive the ultimate sale.
Historically, the brand staff will work with designers to create initial graphic representation of this message. It is at this stage that the print production process has to be considered. It is the sad reality that so often a brand manager will sign off on a design concept only to be disappointed by the final package, simply because the printer didn't have the input he needed to assist with developing the right expectation.
In the case of the supplier in our example, this was recognized early on and dealt with to ensure that brand expectations could be understood and that a more accurate expectation could be set.
Branded colors are more difficult to control than process colors in most cases, especially when carrying these colors across various packaging media. Process color printing capability is profiled using a standard characterization form, and digital files are customized for output to the particular printer.
As to the brand colors, in most cases, the packaging requirements can involve labels, folding cartons, shipping containers, and point-of-sale displays. In some cases the print media is more extensive, reaching across signage and retail requirements. The objective is to determine a common denominator for all print media when reproducing the branded colors. The prepress provider is given the task of coordinating this effort.
The process starts with the design target where conventional PMS colors are established. The prepress provider then analyzes this color from a colorimetric standpoint and provides this data to the various printers, who then submit a drawdown on the particular substrate used to produce the packaging component. These are then analyzed and it is determined if they are within spec. A specification relative to delta E variation is established by the CPC in most cases after consultation with the prepress organizer.
The lowest common denominator is selected from the submissions and then forwarded to the printers with all of the appropriate spectral data so that another drawdown can be submitted for final approval. Once this color is defined it is now labeled as a brand color and the PMS designation is dropped. The new color standard is now placed into a library for future use by designers and all other graphical subsequent uses. From this point forward all packaging components will be aligned relative to the branded colors as well as the previously profiled process color specifications. The result is graphic color consistency within the brand.
In our example, the process was evaluated within one brand to determine its viability and benefit. Now having successfully implemented it for a particular brand, the CPC has decided to roll the program out across more key brands and deploy it globally.
What's next?
It is apparent that programs such as described briefly here will set the tone for how CPCs move forward in the globalization of their packaging procurement. Prepress suppliers are the key to organizing this process as they are the central clearing house for all packaging graphic output. The printers align themselves with a standardized communication system organized by the prepress supplier at the direction of the CPC, and all parties are linked digitally. The CPC achieves its overriding objective: to represent its brands consistently on a global level while consolidating its sources of supply and driving cost out of the process.
The message is clear: Digital communication systems are available, working on a routine basis and the industry needs to adopt and implement these tools in order to continue to keep pace with the demands of the consumer products companies.