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Print Solutions April 2006

President’s Message
By TIMOTHY J. MEHL, CDC
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Technology Creates New Opportunities
A note from DMIA President Tim Mehl, CDC: Ivars Sarkans, president of consulting firm Sarkans & Associates of Los Angeles, Calif., is a student of the printing industry generally, and the forms industry in particular. He attends more printing industry meetings than anyone I know, and he studies the markets and technologies that have the greatest impact on our businesses. When you want perspective on what is happening in our industry, ask Ivars.

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Sarkans

Printed product suppliers will soon be faced with new types of buyers from the “Xbox generation” who will be more likely to “Google” for sources of creative services and printing than to use traditional procurement methods.

At the same time, technology gives print buyers some powerful new tools. Recent major printing industry trade shows featured a growing number of new technology demonstrations that signal major changes in how printed products will be created, produced and sold in the future. These changes will present new opportunities for traditional forms industry participants who are prepared to expand their business vision beyond products to become business document systems specialists and add e-commerce technology skills to their core competencies.

Software developers, printers and other industry suppliers are working on a wide range of template-based print creation and ordering programs that can dramatically reduce costs and cycle times. The results are already evident in template programs for business cards and software-compatible forms. Distributors can sell high volume programs without incurring significant transaction costs. Buyers can access template programs over the internet, choose the applicable design, enter the variable imprint information, proof final copy and submit the order for production—all from the convenience of their desktops.

Template-based print creation and procurement programs are gradually spreading to imprinted envelopes, labels, postcards and other simple direct mail pieces, brochures, fliers, product sell sheets and other types of printing. “Xbox generation” buyers likely will be able to access thousands of printed product design templates over the internet, customize them with illustrations from image libraries or their own digital cameras, add personalized text, print a proof on a desktop color printer, obtain price quotes and submit orders.

Four factors will drive the shift to template-based creation and online ordering of printing: huge reduction in the cost of creative services, convenience, low transaction costs and automated production with either digital or conventional production devices. From the printer’s perspective, template-based procurement programs offer the advantages of reliable print files, already proofed by buyers, which are essential for automated production. A parallel enabling technology is digital printing, which can be linked with template-based print creation and ordering programs to automate the entire print procurement process and reduce turnaround times.

Distributors with business systems knowledge have a sizeable competitive advantage over many local printers who have limited e-commerce capabilities and who focus mainly on loading their equipment. Today, even small distributors can partner with manufacturers in technology initiatives that can give them access to large accounts or distant customers. Distributors have access to a wide range of supply chain partners, from manufacturers to software developers, who can provide systems, sales and implementation assistance for print and promotional product supply programs. One of the opportunities for trade manufacturers lies in partnering with distributors for joint development of e-commerce initiatives to support program sales, automate order flow and move toward just-in-time production.

Businesses will continue to need specialists who can assist them in document management, elimination of internal paper documents, economical choices of digital printing devices, and use of print for effective communications with their customers. Services such as fulfillment, on-demand printing, mailing and data management present additional opportunities for joint distributor and trade manufacturer initiatives.

The technologies that offer new opportunities and challenges for forms industry participants will be on display at the 2006 AIIM/On-Demand show, May 15-18 in Philadelphia.

Timothy J. Mehl, CDC, is CEO of Dispatch, a manufacturer in Erie, Pa., and DMIA’s president.
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