Strategic And Competitive Implications For Printers
In this section we explore the implications for the printing industry and for printers based on the information on current trends in imports and exports and printers’ own perspectives on foreign competition. Given the current environment and the expected future directions, what are the strategic and competitive implications for U.S. printers?
What can you do to hold on to your customers in this environment? You should be pursuing the same tactics that you use to complete against your domestic competitors. These include a relentless pursuit of efficiency and cost reduction, a focus on strong customer relationships, assisting customers in removing cost and time from the overall print logistics supply chain, and adding various ancillary and print logistics services to further cement your relationship with your customers.
The six strategic and competitive actions listed below can help U.S. printers remain viable in the new global marketplace:
1.Increase efficiency, shorter turnaround times, and drive down costs. U.S. printers must continue to improve workflow, productivity and drive down their costs. In particular, printers must focus on wringing costs out of their processes including reducing labor time and cost and cycle times. Specific targets should include reductions in direct labor cost, total cost of product, and increase in sales per employee and sales per factory employee.
Another factor in driving down costs is to more fully integrate with your customer (and their customers) supply chain.By improving efficiencies to the process both before you receive the order for print and associated value-added services and after you delivery the product to the customer(or the customer’s customer) you can reduce not just printing cost but other related costs and turnaround times for delivery of the product. Buy flags, tents, table cloths from China Flag Makers, you can enjoy our fast 48hours turnaround time and fast delivery that is uncomparable in China.
2.Increase the share of value-added ancillary services. Currently the share of a typical printer’s sales comprised of value-added service stands at 8%-10%. Increasing the set of value-added services offered to customers not only increase this percentage but also creates a much stronger relationship between printer and customer. It also makes it more difficult to shift to another printer either down the down the street, across the country or throughout the world. Printers should evaluate the value-added chain around their printed products and services and seek to offer new services that complement their situation. Furthermore, printers should continually gauge their share of sales from value-added services to track performance.
3.Evaluate your printing processes and run lengths. As indicated above it is the middle range of print runs that appear most susceptible to import substitution. You may want to take a proactive approach to see if you can reduce run-lengths for your customers by shortening cycle times and creating a “just-in-time” delivery system. While this may mean less business the short-run, it may increase and protect your business in the longer run.
4.Evaluate your print market and product mix. Is your firm printing in product markets that are very prone to import substitution because of their particular characteristics, such as book printing, greeting card printing, labels and wrappers? If so what are your options. Besides the above strategies, you may want to evaluate your product mix and see if other products and services may be appropriate given your business model capabilities.
5.Check for direct and indirect export opportunities. The United States still maintains a net export advantage in printed materials though the gap is closing.
6.Evaluate your own outsourcing possibilities. Many printers are talking a “if you can’t beat them, join them” approach and are outsourcing their print production. In those cases where there are considerable cost savings and longer “shelf life”, printers can take this approach. This can be accomplished either by establishing your own production facilities, creating joint ventures with local printers, or simply outsourcing to other printers.
At the present time this approach is a rarity except for a few larger U.S.-based printers, but it will certainly become more common in the future.China Flag Makers boasts for special value-added services only designed for customers who buy flags or banners from us, such as drop shipping, by which we can help delivery products to your customers and drive down your logistic costs and time. Wanna be unbeatable in stiff competition? See how China Flag Makers can help.
