Greg Hrinya, Editor07.20.22
As part of L&NW’s Label Insights, we recently sat down with Shane Govert, product manager, Domino Digital Printing North America, to learn more about how digital printing can boost label printers dealing with supply chain challenges.
L&NW: What is your view of the supply chain challenges facing the industry?
SG: Throughout 2021 and into 2022, the material supply chain has created much disruption in the narrow web label market. We have heard that label converters are facing extended lead times of three months or longer for common label material substrates. In addition to the challenge of label converters taking care of their current customers and their existing business, the limited availability of material and/or allocations taking place has also prevented the ability for many of them to grow their business with new and/or existing customers.
So, when you take a step back and look at the big picture of the limited quantity of material available, the material usage throughout the production process is more important now than ever before.
L&NW: How are these challenges causing label converters to think differently?
SG: Whenever there is a shortage or constraint on any type of product, the natural tendency is to think, “How do I take what I have and make it last as long as possible?” Label converters are having to think about their use of label material with a whole new appreciation for it. They are having to look at their business in different ways and be even more creative in finding solutions that enable them to keep production running to meet the needs of their customers.
L&NW: What is an example of a creative solution that helps label converters and their customers?
SG: When you look at label production, in general, there is a tremendous amount of waste. Specifically, wasted material. Think about a label converter loading their press to run a job. How much of that material is used to “feed the machine?” How much of that material is used for color corrections and adjustments? How much of that material will wind up in the trash dumpster? How much of that material is not viable for billable, revenue-generating label jobs produced and delivered to the customer? So, label converters have the opportunity to look at their book of business and potentially adjust how they run their jobs. And, specifically, how digital printing can help.
L&NW: How can digital printing help?
SG: Let’s say ABC Label Co. is going to run a label job with one version. The initial setup, including inline finishing make-ready, might require 500 feet of material if run on a flexo press, versus 50 feet of material if run on the Domino N610i digital UV inkjet label press… plus 100 feet of material for near-line or off-line finishing setup. So, in that example, the Domino N610i uses 350 feet less material than an average flexo press during make-ready.
Now let’s consider simple color adjustments. On the flexo press, that may require an additional 200 feet of material to come up to color, compared to 30 feet on the Domino. And then on every version or spot color change, that will require an additional 200 feet of material on the flexo press, compared to zero additional feet on the Domino.
Considering the factors above for a job with three versions, that is 900 feet of make-ready material to run that job flexo versus 150 feet on the Domino. In that example, that means that 750 feet of material is going in the trash dumpster if run on flexo. Or, conversely, it could be used for billable, revenue-generating work if run on the Domino. And that’s just one label job with a few versions/adjustments.
L&NW: How would multiple versions or SKUs magnify this problem?
SG: Imagine you are going to produce labels for four different flavors of cookies: sugar, French macaroon, cranberry almond, and chocolate hazelnut. You would have four versions of that label with completely different artwork for each. Using the earlier example of 500 feet of material for the initial set up with four versions, that would require 2,000 feet of material waste to prepare that job to run and finish on a flexo press. Compare running those same four versions on the Domino N610i, and it is 150 feet of material waste total. That’s upwards of 90% savings on material setup. And the material savings further grow when jobs with similar finishing processes are run together, utilizing the capabilities and strengths of the Domino N610i digital press.
L&NW: How will digital printing impact the industry moving forward?
SG: Digital printing is on a strong upward trajectory. Label converters today, more than ever before, are understanding the value of having digital in their arsenal. As brand owners are increasing SKUs, versions, and personalization, coupled with demand for quicker turnaround times, decreased inventory and superior and consistent print quality to differentiate their products on store shelves, label converters are realizing that digital is not just a “nice-to-have” but rather a “need-to-have” to be competitive, retain customers and enter new markets.
L&NW: What is your view of the supply chain challenges facing the industry?
SG: Throughout 2021 and into 2022, the material supply chain has created much disruption in the narrow web label market. We have heard that label converters are facing extended lead times of three months or longer for common label material substrates. In addition to the challenge of label converters taking care of their current customers and their existing business, the limited availability of material and/or allocations taking place has also prevented the ability for many of them to grow their business with new and/or existing customers.
So, when you take a step back and look at the big picture of the limited quantity of material available, the material usage throughout the production process is more important now than ever before.
L&NW: How are these challenges causing label converters to think differently?
SG: Whenever there is a shortage or constraint on any type of product, the natural tendency is to think, “How do I take what I have and make it last as long as possible?” Label converters are having to think about their use of label material with a whole new appreciation for it. They are having to look at their business in different ways and be even more creative in finding solutions that enable them to keep production running to meet the needs of their customers.
L&NW: What is an example of a creative solution that helps label converters and their customers?
SG: When you look at label production, in general, there is a tremendous amount of waste. Specifically, wasted material. Think about a label converter loading their press to run a job. How much of that material is used to “feed the machine?” How much of that material is used for color corrections and adjustments? How much of that material will wind up in the trash dumpster? How much of that material is not viable for billable, revenue-generating label jobs produced and delivered to the customer? So, label converters have the opportunity to look at their book of business and potentially adjust how they run their jobs. And, specifically, how digital printing can help.
L&NW: How can digital printing help?
SG: Let’s say ABC Label Co. is going to run a label job with one version. The initial setup, including inline finishing make-ready, might require 500 feet of material if run on a flexo press, versus 50 feet of material if run on the Domino N610i digital UV inkjet label press… plus 100 feet of material for near-line or off-line finishing setup. So, in that example, the Domino N610i uses 350 feet less material than an average flexo press during make-ready.
Now let’s consider simple color adjustments. On the flexo press, that may require an additional 200 feet of material to come up to color, compared to 30 feet on the Domino. And then on every version or spot color change, that will require an additional 200 feet of material on the flexo press, compared to zero additional feet on the Domino.
Considering the factors above for a job with three versions, that is 900 feet of make-ready material to run that job flexo versus 150 feet on the Domino. In that example, that means that 750 feet of material is going in the trash dumpster if run on flexo. Or, conversely, it could be used for billable, revenue-generating work if run on the Domino. And that’s just one label job with a few versions/adjustments.
L&NW: How would multiple versions or SKUs magnify this problem?
SG: Imagine you are going to produce labels for four different flavors of cookies: sugar, French macaroon, cranberry almond, and chocolate hazelnut. You would have four versions of that label with completely different artwork for each. Using the earlier example of 500 feet of material for the initial set up with four versions, that would require 2,000 feet of material waste to prepare that job to run and finish on a flexo press. Compare running those same four versions on the Domino N610i, and it is 150 feet of material waste total. That’s upwards of 90% savings on material setup. And the material savings further grow when jobs with similar finishing processes are run together, utilizing the capabilities and strengths of the Domino N610i digital press.
L&NW: How will digital printing impact the industry moving forward?
SG: Digital printing is on a strong upward trajectory. Label converters today, more than ever before, are understanding the value of having digital in their arsenal. As brand owners are increasing SKUs, versions, and personalization, coupled with demand for quicker turnaround times, decreased inventory and superior and consistent print quality to differentiate their products on store shelves, label converters are realizing that digital is not just a “nice-to-have” but rather a “need-to-have” to be competitive, retain customers and enter new markets.
