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    Print partnerships assist in a shifting landscape

    The print industry is in a state of evolution, sometimes putting pressure on companies, printers and all those involved in the sector.

    Evolving technology is the biggest threat. There have been significant changes in print technology and big companies are aggressive about selling their new technology. Old presses are often not scrapped and this leads to an over capacity of print production facilities. New print technologies also allow printers to print cheaper and faster on new equipment, and companies who have older and slower technology can unfortunately be at a disadvantage.

    Marketing technology also plays a role. Electronic media, MMS, email, PURL and other technologies are eating into the traditional print industry, giving corporates a far broader choice of medium to communicate with their customers. These platforms are all examples of forms of communication that have infringed on the realm of traditional print. All marketing departments now have a budget for electronic communication. This new budget is derived from the traditional print budget and hence there is less to go around.

    The global financial meltdown has had a severe impact on the industry and the world is still experiencing one the largest financial meltdowns since the Great Depression in 1929. Because of this, many large corporates have substantially reduced their marketing spend, which leads directly to print volume. We have seen many clients slash their marketing budgets as a result of the financial stress that they are under, which has a direct impact on the print volumes and the print industry.

    Positive influences

    There are positives; for example improved process efficiency to ensure highly efficient timing, application of materials, waste reduction, planning, cost and staff utilisation, ensures that clients get the best result and the print industry benefits.

    In addition, working with and not against corporates procedures assists the sector. One of the procedures we have remained consistent about is a three to five quote policy that most large corporates have had in place for the last decade. We have ensured that this policy is followed effectively with the introduction of technologies such as PrintFlow and Noosh, ensuring that the game is played efficiently and in a fair manner across the board.

    As print managers we also provide significant benefit to our print partners. Once they are on the approved supplier list, they no longer have to go and market their company to all the departments of a large organisation. It reduces their sales cost considerably. It also provides them assurance that if their sales person leaves, that they cannot take the business with them.

    Reducing cash flow issues

    While one of the issues that many print partners traditionally struggle with is getting paid on time by large corporates, if managed, this becomes less of a factor. It is because of this approach for example that in the seven years the company has been in business it has never missed or delayed a payment to a printer for properly delivered goods, even if it has not yet been paid by the corporate that it did work for. We assist the small printer in this process. This reduces their cash flow risk and their cost to collect cash. Printers, who deliver good work on time, receive positive ratings - all transparent and visible to both client and printer - and this generally results in an increased flow of work to these printers.

    Updated at 10:32am on 25 March 2013.

    About Gary Davies

    Gary Davies is CEO at Point. He has more than 23 years experience in the print and reprographics industry in South Africa. He attended the University of the Witwatersrand and attained his MBA from the Henley Management School of Business. Gary was a member of the technical committee of the PMA for many years and has a thorough understanding of the South African print industry. Contact details: website www.printoutsource.com
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