digital printing--malloy
TRANSCRIPT
De-Mystifying Digital PrintingA “Traditionalist’s” Perspective
Joe UptonVice President, Sales and Marketing
Malloy IncorporatedAnn Arbor Michigan
May 23, 2011 [email protected]
1960
Today
Malloy Incorporated
Who we are
• Family owned• Full service one and two-color book printer• Hard and soft-cover• Multi-color covers, jackets and components• Publishers across the USA• $37 million in sales• Produce over 31 million books / year• 8,000+ jobs / year• Range: 1 to 225,000 copies• Median quantity: 2,000 copies• 8 Timson webs for text• 1-2/c, 4/c and 5/c sheet-fed • Digital printing equipment for ultra-short run• Storage and fulfillment solutions
Old Supply Chain
Change Drivers
• Digital printing and POD
• Web Commerce:– Paperless information flow– Retail—Amazon– Direct to consumer
New Supply Chain
Fragmentation Causes Complexity and Opportunity
Challenge is to integrate long run, short run and POD to maximize margins over a title’s lifetime.
• POD – Deep back listor micro-demand
• Short run and ultra-short run (digital short-run) – Minimize inventory cost and cash outlay
• Long run – Minimize printing cost per unit / maximize profit on sales
Print to Need
Print what you need when you need it
Primary elements:• Cost efficiency over a broad range of
quantities
• Speed to market
• Easy to manage
Cost Efficiency
Unit Cost256 pp | soft cover | 4/c cover
Offset 1st Printing
Digital Short RunOffset Reprint
New title breakevenDigital vs. Offset ~ 750
Reprint breakevenDigital vs. Offset ~ 400
Speed: Books When Needed
• Uncertain about demand at launch:– Print too many—store cash in the warehouse– Print too few—miss sales
• Solution—fast turn at any quantity
• Total cost of two offset print-runs is the same at any combination of quantities
Books When Needed—Case StudyThe Book of Awakening
(448 pp, soft cover)
Copies Start Date Cycle Time*
6,000 23-Aug 12
30,000 13-Oct 9
10,000 4-Nov 8
50,000 23-Nov 5
37,500 30-Nov 4
5,000 7-Dec 4
15,000 14-Dec 8
15,000 27-Dec 5
15,000 19-Jan 9
7,500 23-Feb 11
191,000 *Working Days
Easy to Manage
• Simplified – Automated Transactions
• Web service tools for:– Pricing– Ordering – Job tracking– Inventory management
Optimize the Whole!
• We’re not rocket scientists
• COGS is more than unit cost
• Different ways to manage the supply chain:– Source with specialists– Feed your readers from one source
• Trusted partnerships
• Maximize margin per sale
Feed Your Readers From One Source
