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Print Solutions December 2005 TimMehl.tif

president’s message
By TIMOTHY J. MEHL, CDC

Creating Value Through Transparency

Opportunities usually do not happen by chance or good luck. An opportunity is a function of innovation and hard work. Innovation identifies the opportunity. Hard work takes advantage, or implements the opportunity.

Many interesting opportunities created for us at Dispatch by distributor partners involve serving end users with programs that involve only traditional forms products. We know at the beginning of these opportunities that we cannot differentiate by product. We need to differentiate by process. There are numerous ways distributors can differentiate themselves from the competition when making a proposal for traditional products. Some of these differentiators could be:

• Business process improvement solutions offered through needs assessment analysis and forms design

• An e-commerce platform allowing integrated electronic ordering

• A sophisticated fulfillment solution

• Partnering with a manufacturer from the very beginning of the RFP (Request For Proposal) process to add value

It’s this last point I want to discuss. How do we implement such an opportunity as a supply chain team? The answer is to bring value to the end user by going to market collectively and adding value through transparency.

Our experience on most large print programs is that the distributor gets the RFP and asks for quotes from numerous print providers. The distributor then uses the best pricing to develop a proposal. This process often leads to the utilization of multiple manufacturers who usually have little input in developing the proposal.

Creating value through transparency suggests that the distributor identify a manufacturing partner as its primary print partner from the outset based upon how their capabilities match up with the RFP. This partnership should be communicated to the end user at the very beginning of the process. By doing this, the supply chain partners, including suppliers to the manufacturer, can focus together on developing the best solution.

Once the distributor gets the RFP, it should be shared with the selected manufacturing partner. Don’t waste energy on shopping for price. Work with the customer, manufacturer and supplier to identify and provide the best value for the customer.

Include the manufacturer and supplier in pricing and program development. All supply chain partners should be intimately involved with:
• Needs assessment
• Pricing, including sharing information about profit margins
• Developing the proposal, which would identify the value, each supply chain partner brings to the process
• Printing the proposal
• Presenting the proposal

Program implementation should include efficient workflows that allow direct access between the end user and manufacturer. This might include direct communication on composition changes, order status, production problems and other production specific issues. The manufacturer and supplier should be involved in regularly scheduled program review meetings, and communications regarding program changes should include all partners.
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We all can do a better job of leveraging our collective resources to create opportunities. Distributors can leverage manufacturer and supplier know-how to be more effective in their sales efforts. Manufacturers and suppliers can be more proactive in developing tools for distributor marketing efforts.

Starting next month I will be introducing some of our industry’s elite in sharing how they have effectively created opportunities within their own organizations.

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