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
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