Closer look at the logistics of print

Print logistics is the last link in the print supply chain. For print companies around the world, logistics is the key to distributing the final printed product to consumers or end-users. Once the logistics link is not completed accurately on time, it will seriously affect publishers and consumers.

The importance of logistics can be expressed in the following aspects.

The printer’s customer will only check out the printed matter.
The printer’s customers will only receive payment for the printer’s services if they receive the printed matter in a correct location and at the right time.
Logistics will increase costs for print production, and printers will have to pay for the losses caused by mistakes in the logistics process.

To fully understand the needs and advantages of print logistics, the following aspects need to be addressed:

Printing companies need to understand the internal and external circulation of printed materials related to logistics.
Printing industry analysts need to focus on logistics trends and closely related economic factors.
Educators in print colleges and universities need to add the content of logistics to their courses. Through learning, students can understand the complexity of logistics and the impact of logistics on print production processes.
There are many transportation methods used by transportation suppliers, such as expressway transportation, railway transportation, water transportation, and air transportation. However, many transportation rules will affect the transportation methods. Therefore, transportation suppliers must be proactive in product transportation.
The U.S. Postal Service Administration (USPS) has established rules for the sending and receiving of e-mails.

Logistics process

In the logistics process, the processed prints are transported to the transit area, distributed and delivered by the printing company or distributor, and then transported to the customer's designated destination (Figure 1). Finally, a customer service representative or business representative confirms feedback on the shipment and delivery of the batch of prints.

Figure 1: Basic logistics process

Although logistics is considered to be a very important process, due to more changes in print information, it is difficult for product logistics documents to form the same standard documents as in Figure 1. Only a few printing companies will have standard logistics documents. In fact, for product piece counting and new employees, this standard document is a very useful tool that can reduce the error rate in the logistics process and improve the efficiency of logistics.

Printing and logistics providers should begin the logistics of printing on the basis of understanding the logistics needs of customers in advance. Only by having a clear understanding of the customer's logistics needs can we start the production of printed materials. Otherwise, it will be difficult to avoid the problems of postponing production and delaying transportation.

The main challenge of logistics

No matter what products are shipped, all logistics companies face many challenges. The customer relies on the logistics provider to deliver the product, and the logistics provider is responsible for the product until it reaches the customer. Therefore, the main challenges faced by logistics providers include the following aspects.

The time the product arrived at the destination.
When meeting customer budget constraints, logistics providers need to consider cost and efficiency.
In the process of transportation, warehousing, etc., products should be protected from damage.
Let customers think that logistics services are value-added services and full of competition.
Other major challenges include: storage, profitability, exchange of customer information, transportation costs, and mailing costs. The above challenges are also issues that every printing company should seriously consider. To handle these issues well, it also handles the relationship between the company's business development and customers.

storage

In the print logistics process, unprocessed materials, finished products, and surplus products need to be stored. It is necessary to have enough storage space. Printing companies that do not have sufficient storage space will encounter problems in ensuring the safety of printed materials and inventory management. Many printing companies cannot afford the cost burden of warehousing outside the factory. Therefore, efficient storage methods and reasonable work flow are very necessary for printing companies. Some printing companies think: “Since there is not enough storage space, the storage of printed materials has become a headache.” Other printing companies believe that: “If the printed materials are stored in the factory area, it may cause damage to the company and increase material handling. risks of."

Troy Reynolds, editor of the magazine "Distribution Digest", learned from the management of warehousing and logistics center managers that "there is not enough storage space" has become the biggest challenge for warehousing and logistics centers. In response to these challenges, Reynolds made several suggestions: Prior assessment of the pallet's physical dimensions, handling of unwanted materials and additional inventory, and discovery of hidden storage space.

In addition, many printing companies use JIT (just-in-time production) methods to avoid hoarding of production materials. For some printing companies that have to store their products, they can use off-site storage or create a designated product storage area to solve the problem.

rate of return

Whether the customer received the print on time directly determines the payment status of the customer, and the payment status of the customer determines the cash flow of the printing company. Many printing companies are not responsible for storing finished products, and their payment requirements can vary from 30 days to 120 days, depending on the location. If logistics services can provide value for printing companies and their customers, the corresponding fees can be assessed. Even if the logistics service is free of charge, the item should be included in the customer's order to indicate that there is logistics service in addition to the production and processing work.

Another way to increase the yield is to reduce costs. Reducing operating costs and reducing production waste are key elements in improving profitability. Printing companies can consider the following issues.

In the company's strategic plan, determine the reduction in costs and waste.
Allow customers to use remote proofing instead of hard proofing when signing samples.
Find opportunities to reduce costs in the mailing and co-shipment process.
Customer information exchange

Under normal circumstances, customers of printing companies will not provide particularly clear transportation requirements when they issue printing orders. This forces the printing companies to store the printed materials after printing. Unclear customer information leads to a series of problems, including warehousing, delaying transit time, and so on. The complaints such as “We are waiting for the customer’s instructions, there are many undecided work orders” have become common complaints for printing companies.

For customers, they hope that printing companies can take on more responsibilities. Printing companies can directly inform them that prints are already on the road. Therefore, information communication between the printing company and the customer is very necessary.

Time and schedule

Poor communication of customer information can affect time and schedule. The customer's special needs will also cause great difficulties for the itinerary. Another outstanding problem is that customers temporarily change the initial shipping requirements. One way to solve these problems is to attach importance to the importance of the freight department in the production process, and pay attention to the advantages of the freight sector in the following aspects.

Reduce the error rate.
Increase product quality Improve customer relationships Reduce waste Printing companies and logistics providers should appear in front of customers as advisors, providing management advice and meeting customer needs. Printing companies should also encourage their customers to use various means (such as e-mail confirmation, order tracking software, and other new technologies) to manage the shipment of products on the fly.

There are other ways to improve the problems caused by poor customer information exchange.

Refresh the storage space of the warehouse.
Allow customers to slowly adapt to the logistics workflow through practice.
Wait for the customer's needs to confirm before starting work.
Evaluate the short-lived and on-demand printing yields.
Increase in transportation costs

“In a highly competitive industry, how to reduce costs is a key factor for printing companies to consider.” said Andrew Paparozzi, president and economist of National Print Leadership Association (NAPL). “Is the cost passed in the form of price increase to the customer? Or is it absorbed in the form of improving production efficiency and product quality? It is an issue that each company should consider.” Lack of truck drivers and rising fuel prices are two rising freight costs major factor.

Missing truck driver

In the United States, about 70% of products use trucks. In the future, the lack of truck drivers will affect the distribution of printed materials. According to the statistics of the American Truck Association (ATA), the long-haul trucking industry faces a talent shortage of 20,000 drivers, and by 2014, this gap will continue to expand to more than 100,000. With the development of the times, old drivers retired and young drivers spent more time with their families. This is the two main reasons why truck drivers lack.

Increase in fuel prices

On August 12, 2005, the price of gasoline reached US$67/barrel at one time, which was a rise in transportation costs for many companies. In fact, fuel price increases have had a serious impact on many industries, including the printing industry. Some freight companies have to raise their prices. Tavio Headley, chief economist of the American Truck Association, said: "In the trucking industry, fuel costs account for 10%-20% of total business costs."

In 2005, RIT (Rochester Institute of Technology) printing industry center (mainly researching the development and profitability of the printing field) studied the logistics of printed materials. 50% of participants believe that the increase in fuel prices has a negative effect on the development of the logistics business. Many people have to absorb the additional costs themselves because they provide fixed-price logistics services or free logistics services. The other 50% of participants believe that the increase in fuel prices has no direct impact on the development of logistics business because they pass the cost of transportation and logistics to customers. Even so, most participants noticed that their own transportation costs or the cost of cooperation with transportation companies are increasing. In addition, some participants also pointed out that they passed on the cost pressure brought by rising fuel prices to customers. They reduced the quality of printing or used thinner printing materials, but ultimately affected the development of the business.

In order to stay competitive