Supply Chain Links
Today's production software works toward optimum process efficiency both converter and customer can monitor.
by Jessica Millward, Associate Editor
THE ROAR OF the crowd for e-commerce capability will eventually grow too loud for package print firms to ignore; in preparation, business/production software suppliers have been charged with seamlessly integrating shop-floor data with on-line customer service.
The notion of e-commerce and its implications for business has become increasingly familiar to package printers over the last few years. "Today, we are finding printers are much more knowledgeable about the Internet and software in general," states Glen Forbes, VP/sales, Western Region, CRC Information Systems.
He counts two primary schools of thought emerging among package printers in regards to e-commerce: first, proactive printers interested in marketing Web-based service, and second, converters reacting to customers' demands for such services.
Tailored Solutions, which services the narrow-web converting market with its Label Traxx system, has observed a distinct rise-and-fall pattern in regards to e-commerce buzz. President Ken Meinhardt saw a considerable build-up through 1999 and 2000, but laments, "As the markets changed and companies were further educated in what is involved to effectively integrate e-commerce, interest dropped off." The sluggish economy has further discouraged potential investment, Meinhardt adds, because printers are now focusing solely on sales and profit generation.
PRIMAC Systems Marketing Director John Knowlton has witnessed interest levels greatly outpacing installations. "Actual implementation is lagging because many [printers] are still learning what the customer really wants to have available."
Knowlton counts top priorities as 1) the ability to view finished goods in the printer's warehouse; 2) visible job status of labels in production, including planned ship date; and 3) shipment tracking numbers with links to vendors.
The market for managing production and e-commerce capabilities with one software system isn't limited to larger printers. In a set of recent case studies, CRC profiled numerous graphic arts firms—ranging from $2.5 million to over $100 million in sales—employing production software. Based on study findings, Forbes points out, "While the need for automated information management is certainly more exaggerated in larger shops, smaller companies tend to see more immediate benefits [from implementing software systems]." Forbes notes one CRC customer grew from $1.5 million in sales to $3 million while reducing staff by 30 percent.
Sorting through solutions
Online customer service and purchase functions come in various shapes and sizes; some as part of single-solution production software packages, others "bolted on" to existing management systems.
Pace Systems, for example, designed its end-to-end suite of software modules to perform processes from estimating to e-commerce. Using the E-service module, Pace President Jay Farr relates, the customer obtains real-time information regarding job status, job history, shipments, invoices, and inventory balances, along with on-line proofing.
PRIMAC software handles accounting, production, and shop floor data collection, sales analysis, and e-commerce requirements, but Knowlton says the system does not directly tackle areas in which government regulation is involved. Human resources, EEOC, cafeteria plans, etc., are monitored through interfaces with third party packages, he says.
The next release of Axapta for Converting, from Concord Business Systems, will include a user-oriented portal approach to e-commerce functions, notes VP/Sales and Marketing Dave Edmonson. To be released by the end of 2002, the Enterprise Portal Application will provide role-based personalized access to integrated data in real time. The application will round out Axapta's ERP capabilities, which include estimating, data collection, and inventory traceability, among others.
While developing its e-commerce product suite—PECAS InterVision—Radius Solutions sought extensive feedback from user groups in North America and Europe. "Companies were not willing to just abandon traditional procedures for the sake of technology. However, they were interested when there were clear benefits to be gained through e-commerce," explains VP/Sales and Marketing Chris Wood.
Radius found a clear winner in the PECAS InterVision Supply Chain Manager, which allows converters' customers access to account information online. More radical elements of the software, such as the online pricing tool, have not been as readily embraced, reports Wood. The function allows for off-site pricing, which can be used externally by both customers and out-of-office employees. "Incorporating this kind of software requires a major process change, and many companies seem to feel the benefits of working to incorporate this kind of offering have not yet been proven," concludes Wood. Radius predicts more package printers will evince interest in such capabilities as their benefits are shown to be certain.
