Seamless connectivity of information brings benefits throughout the supply chain.

By Tom Polischuk

Remember when the Internet was getting its commercial feet wet back in the early ‘90s; it was referred to as the Information Superhighway. Well, there’s probably not too much debate that it hasn’t lived up to this billing. The amount of information at our fingertips (literally) is simply flabbergasting (just checked www.meriamwebster.com to make sure this word was right).

Well, the superhighway has spawned a world of highways and byways, and if your company isn’t on one of them, you’d better be looking over your shoulder so your horse and buggy doesn’t get run over. Today, the nimble use of information can be used as a key differentiator to help your company stand above the crowd. In the future, however, it will be a requirement, and without it, your company could be in a futile chase trying to catch up with the competition.

Companies that make their living by providing business and production software systems for the package-printing marketplace have a common theme when discussing what is taking place in this arena—integration. Information is available and is flowing throughout virtually the entire range of functions that are required to run a printing company. This not only includes management information, but more and more, it also includes technical graphic and workflow information that is part of the printing process itself.

“Right now, we are seeing a movement from modular and/or legacy systems to fully integrated ERP implementations,” says David Taylor, president of Radius Solutions. “Converters are trading in their islands of information for solutions that are fully-integrated and that go from prepress to the shop floor. The reason for the shift … increased efficiencies, improved operating efficiencies, and fewer mistakes.”

In many cases, the flow of information is extending outward in both supply-chain directions of a printer’s shop. “We are implementing more and more integration features with both suppliers and converters’ customers,” says Ken Meinhardt, president of Tailored Solutions. In 2004, his product line added the ability for converters to electronically order products from Fasson. Raflatac was recently added into this mix, and Meinhardt says that Green Bay Packaging and Spinnaker Coating will soon be included.

On the other side of the supply chain, Tailored Solutions has started shipping its Traxx Link module, which integrates converters’ customers into Label Traxx. With this capability, says Meinhardt, “The converter’s customer will enter a requisition into their ERP system and the order is transmitted via EDI, e-mail, XML, or almost anything to a server at the converter’s office. ... The order is processed and the picking slip is printed in the warehouse and shipped. All this is completed in seconds.”

Industry trends that are driving this need for integrating information systems are shorter lead times and shorter production runs. “Shorter and shorter lead times require a system that automates the paperwork associated with order processing, providing one seamless flow of information from the time a request-for-quote comes through the door until the sales dollars hit the general ledger,” says Jim Drisler, executive VP, sales and marketing for CRC Information Systems. “Anything we do that can shorten time associated with this process and provide better information for decision-making is of interest to our customers.”

The recent surge in raw materials cost, and in some cases, supply availability, has also put renewed emphasis on estimating and material planning. Says Stan Usry, packaging product manager for Tectura Corp.: “With global competition and major fluctuations in raw material costs and availability, package printers are asking for a fully integrated business management system like never before. ... They want to be able to quickly confirm raw material delivery dates and quickly adjust their production schedules to accommodate changes. We are also seeing more supply-chain automation than ever before with both customers and vendors.”

The need for printers to link their information systems with suppliers and customers alike, naturally drives the process towards the Internet and e-commerce.

“Apart from the requirement for JDF integration, we have seen a noticeable trend towards specific e-commerce requirements geared towards tying customers into the supply chain,” says Chris Wood, VP sales and marketing for DiMS! organizing print. “By providing tools to customers allowing for real-time data, reports, and purchasing functionality to be available, our customers are recognizing ways in which they can tie their customers into their business processes.”

Wood mentions JDF, an important tool in the quest for seamless information flow. As printers are faced with linking up with possibly several different software systems in their own operations, along with systems at suppliers’ and customers’ operations, a standardized method for information transfer is critical, and that’s where JDF enters the picture.

“EFI continues to incorporate JDF functionality into numerous products, providing integration points between production and management systems,” says Michael Schneider, senior sales development manager. “JDF represents the strongest Computer Integrated Manufacturing (CIM) initiative in the printing industry and CIM represents one of the strongest process improvement and cost-reduction opportunities for printing.”

DiMS! is focussing its attention on the need for its customers to have JDF compatibility between the DiMS! software and their machinery or other software systems, reports Wood. “This is essential in order to provide an accurate bidirectional flow of information. ... By having meaningful three-way dialogue with our customer and the third party vendor, we can focus on achieving specific business benefits for our customers. An example of this being the links we have made to prepress workflow which recognizes, in both systems, changes which occur during production and keeps account of the costs of these changes.”

Successful implementation

Convincing potential customers to invest in information system technologies can sometimes be a difficult task. “It is still much easier to convince people to purchase a machine than a system,” says Operon Systems’ VP Mark Nickel. “People can point to the machine, they can paint it, they can add better motors, or change the gears to make it run faster. Information technology tends to be a bit more difficult because there isn’t that physical presence. There’s also doubt about the payback on the investment—a machine, you know that if you fill it with raw materials, do your preventative maintenance, and just turn it on, you can easily calculate the ROI. An information system is not so cut and dry. People still read about information system implementations dragging out for years and years and going over budget by millions of dollars.”

Companies that do make the move to an integrated information system must take a strong project management approach to avoid such a scenario. “The most important thing in successful implementations is to accurately define and configure the system up front, so that it meets clear business objectives,” says Usry.

After this, strong management involvement is necessary. Usry has seen problems arise when top management takes a hands-off approach, not wanting to get “bogged down” in an IT project.

“The reality is that this is likely the most important strategic initative they will make while at the helm of that company,” he suggests. “It is vital that they identify clearly the criteria for success and be involved in major decisions on how the system is going to support the business.”

Nickel is one who also espouses the need to spell out the project objectives and use them to guide the implementation. “The main factor for a successful implementation of our application is having a laser-like focus on the objective and sticking to it,” he says.

What can become the most severe impediment to success is scope creep. “If a business does not have laser-like focus on the implementation objective, they tend to get wrapped up into thinking about how the systems could be modified rather than taking advantage of the current functionality,” continues Usry. “Good implementation partners will document out-of-scope requests and try to address them in ways that will not affect agreed-upon project objectives.”

The impact of a new MIS, along with the required focus on the objectives and potential out-of-scope items, brings up the need for change management, says Wood. “Managing the associated change to new software and procedures within the company, to allow for a smooth transition, is therefore essential,” he says. n

Resources

Advanced Software, Inc. www.advantzware.com

Collaborative Studios www.intraflex.net

Computer Productivity Services www.cpsinc.ca

CRC www.crcinfosys.com

DiMS! organizing print www.dims.net

EFI www.efi.com

Kodak www.kodak.com

Globe-Tek www.globe-tekcorp.com

Operon Systems www.operonsystems.com

Plastisoft www.plastisoft.com

Primac Systems www.primacsystems.com