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Why Freight Management and Logistics Are Important to Small Publishers
Caution Needed in Fulfillment Services
Friday, July 19, 2002
Printcafe Scheduler
I believe this refers to the latest release of what used to be Kerens, a print scheduling system based on Eli Goldratt's Theory of Constraints.
Printcafe Shows New PrintFlow, PrinterSite Internal & Logic Upgrade at Conference
"PrintFlow is an amazing new technology," said Doug Ehmann, Vice President and Chief Technology Officer of The Sheridan Group, a large publication printer. "It?s fast and can consider many more constraints and options than is humanly possible. We investigated other technologies to help us with scheduling, but none could manage in real-time our complex and critical processes." [WhatTheyThink]
While this product is not particularly suited to digital or demand-driven print operations, it is encouraging to see Theory of Constraints being applied in printing. TOC principles, along with such ideas as single-unit-flow and cellular manufacturing, are critical to efficient demand-driven operations.
Wednesday, July 17, 2002
Why Freight Management and Logistics Are Important to Small Publishers
I continue to believe effective freight management -- rate shopping, aggregation, multi-carrier options just like the "Big Boys" -- is an important competitve advantage to small- and medium-sized publishers.From M.J. Rose' column in Wired News?
Summer means discounts: Free shipping and discounted books are heating up at online bookstores.[Wired News]Amazon.com is offering free shipping on all orders of $49 or more (down from the usual $99), and discounting almost all titles usually listed over $15 by 35 percent.
Some Buy.com bestsellers are 50 percent off. Free shipping is also available on some of these books. And orders of $99 or more that weigh less than 20 pounds are shipped for free.
Barnes&Noble.com is offering free shipping when two or more items are purchased.
How can a small publisher break through when shipping a $15 book costs the buyer $4-$7?
Today, the vast majority of POD books are shipped from print facilities that have little to no experience in handling advanced logistics. They may have enough volume to get a UPS discount, but it's unlikely they can even come close to the rates that an Amazon or B&N.com achieves by using a mail consolidator such as http://www.dropshipexpress.com">DropShipExpress. Besides low rates, DSE can provide tracking numbers and certified delivery via USPS -- just like UPS or FedEx.
Granted, major shippers get significant discounts from UPS and FedEx, but they get significant advantage by aggregating thier shipments with consolidators and optimizing shipping with low-cost carriers. A POD provider who can do the same can offer e-Publishers a direct-ship model with similar benefits, while bypassing the inventory and discounts required by the major distributors and wholesalers.
Such sales will not supplant the in-store sales of the major retailers or the big on-line merchants, but it does give the independent a better shot at competing.
Tuesday, July 16, 2002
Caution Needed in Fulfillment Services
A recent print industry report touted fulfillment services as the next "killer opportunity" for print service providers. Fulfillment is a legitimate way for digital printers to expand service offerings, but executed poorly -- or with the wrong model -- it can lead to disaster.Caution must be taken not to overlook the actual ROI of most fulfillment operations (low) and the costs of inventory (high). Many fulfillment providers today have built businesses based more on storing things than providing robust services. As the cost of inventory and real estate has risen, they've found themselves pinched between expensive warehouses and customers who no longer want to maintain inventories. Most printers will likley have to make changes in their market and sales strategies for fulfillment to generate significant revenues. And selling print is a far different proposition than selling operational support services.
Fulfillment can be a solid service when matched with other appropriate offerings -- such as sophisticated freight and logistics management -- but printers must be wary of treating it as a simple warehouse adjunct. Instead they must address fulfillment as just one aspect of a demand-driven business and customer model, and build a solid value proposition for these emerging markets.
Fulfillment Services The Next Killer Application for On Demand Printing [WhatTheyThink]
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