On-Demand Printing - A Winning Solution

ON-DEMAND PRINTING A WINNING SOLUTION PERCY'S PORCH PAINT ACHIEVES RECORD SALES Percy's Porch Paint in Wisconsin has hit record sales approaching the summer season as homeowners go crazy over their 2017 paint offerings. Percy's product line includes a unique palette of trend-setting custom colors for porches, decks, and patios. In order to satisfy the increased demand for their products, Percy's has to handle the challenge of keeping the flow of raw materials going to keep pace with production. This includes the ingredients, colorants, packaging, and labels needed to ensure that they can fulfill orders and keep wowing their customers. CASE IN POINT An Order is received for 125 units of 4 different custom paint colors. This presents a challenge for the employees at Percy's in fulfilling this multi-faceted, small batch order. Let's examine the process from the perspective of labeling. OLIVIA DANNY PETER • Operations • • Design • • Production • Olivia in Operations teams up with Danny in Design, and Peter in Production to achieve this. THE TWO OPTIONS TO BE CONSIDERED BY THE TEAM ARE: III 1 PRE-PRINTED LABELS 2 PRINTING LABELS ON-DEMAND DIGITAL ON-DEMAND PRE-PRINTED SCENARIO PRINTING SCENARIO Olivia places the details of this week's orders Olivia places the details of this week's orders into the order management system to send to into the order management system to send to Peter in Production. Peter in Production. Peter begins scheduling, taking inventory Peter begins scheduling, taking inventory of materials needed for production. This of materials needed for production. This includes all components - ingredients, includes all components - ingredients, packaging, and custom labels. He notifies packaging, and labels. He notifies Danny of all the custom labels that are needed to get the orders shipped. Olivia of all custom labels that are needed to get the orders shipped. >1000 PRINTING Danny gets to work on the digital label designs and sends proofs for all 4 labels to customer for approval. Olivia places an order with the local print shop ordering the minimum order quantity of 1,000 of each label, though the order is only for 125 of each label (total of 500 labels). Lead time for production and shipment of the labels is 10 days. Factored into this lead time is the time needed to make the die tool and plates. Pete gets production underway. The next day, the customer phones back The next day, the customer phones back with new instructions for their labels so with new instructions for their labels so that the delivery can be processed by the warehouse quickly. that the delivery can be processed by the warehouse quickly. Olivia notes the changes and quickly calls Olivia passes this information to Danny. the print shop. This requires a new set-up Danny quickly updates the design, adds it to the labels and notifies Peter of the change. cost for pre-press, die and plate. Lead time is also pushed back another 5 days. II Peter gets production underway. Peter spot checks the first 20 units and instantly halts production. He has noticed a compliance issue with the label graphics and notifies Danny and the customer ASAP. IIII Two weeks later, Olivia receives the labels and to her horror notices a compliance Danny and the customer remedy the issue issue with the label graphics. She notifies and finalize revised label proofs. Peter, Danny and the customer ASAP. Danny and the customer remedy the issue, Peter quickly gets production back on track and Olivia orders new labels for all 4 SKU's. and adds the new label to the first 20 units. Peroys Percy's Porch Paint ships the order earlier Another 10 days pass and Peter receives than expected. The customer is impressed the finished labels. The order is finally with Danny and Peter for adding value in catching the mistake early, and they will keep their business with Percy's. labeled and ready for shipment. ....... This order shipped 2 weeks later than requested and Percy's has an uphill climb in trying to retain this customer's confidence, not to mention winning new business with customers needing small batches, custom Percy's Porch Paint adds and retains a satisfied customer. Percy's leverages this success in order to acquire new customers needing small batches, custom blends and blends and colors, and short turnaround time. colors, and short lead times. AS DESCRIBED ABOVE, CHOOSING DIGITAL, ON-DEMAND LABEL PRINTING IS A WIN-WIN FOR PERCY'S AND THEIR CUSTOMERS. IIII olll By providing these services, Percy's is able to create labels, make adjustments, and drastically shorten turnaround times in response to last minute orders, changes, and requests for custom orders. In addition, Percy's has no need to carry inventories of unused pre-printed labels which represents waste, unnecessary cost, and operational inefficiency. By embracing print-on-demand, Percy's is able to capture new business and grow topline revenue while reducing costs at the same time. Percy's customers, on the other hand, experience the benefits that on-demand label printing provides by gaining greater flexibility, faster turnarounds, and reduced cost per label (because the cost of over production of labels and waste disappears). These benefits are in turn passed by Percy's customers on to their customers. Brought to you by: BRANDYWINE DRU ML A BEL S, LL C drumlabels.com oll