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Presentation Title Name of Speaker April 21-22, 2010 San Antonio, TX Distribute then Print Consolidated Graphics’ Digital Print Centers Steve Brown, Kevin Davis, Jim Finger, John Scheffler

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Presentation Title Distribute then Print Consolidated Graphics’ Digital Print Centers Steve Brown, Kevin Davis, Jim Finger, John Scheffler Name of Speaker • CGX Global Digital Footprint Overview • The Value of Outsourcing • Data Security • Print Transformation – tapping into Digital’s potential • Case studies • Q&A agenda

Transcript of Distribute then Print

Page 1: Distribute then Print

Presentation TitleName of Speaker

April 21-22, 2010 San Antonio, TX

Distribute then Print Consolidated Graphics’ Digital Print CentersSteve Brown, Kevin Davis, Jim Finger, John Scheffler

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agenda

• CGX Global Digital Footprint Overview• The Value of Outsourcing• Data Security• Print Transformation – tapping into Digital’s

potential• Case studies • Q&A

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who is Consolidated Graphics?

Consolidated Graphics provides the service and responsiveness of a local printing company combined with the economic, geographic and technological advantages of a large global printer.

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digital super centers

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29NexPress

22 iGen

• Over 220 digital presses in 64 companies

• Expanding international production

• Integrated Digital Highway

5Xeikon

2Oce

57Indigo

digital capabilities

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color management• All sites GraCl7 Master Certified• Managing color on each press, each platform, at every site, to

meet aggressive color goals• Maintenance of color fidelity is best in class• With our management skills, we achieve a Delta E of less than

3.0 across our entire digital fleet!• We are confidence that no one else in the world is managing

color and quality at the level CGX is doing today.

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digital PCS

Digital Production Control System• Automates order process across all production facilities• Site selection made by product type, geography and other pertinent

factors• Drives template management system for multi-up layout• Bar code driven templates to monitor individual orders• Real time reporting to maintain control of all operations• Orders submitted with color profiles included• Designed to manage tens of thousands of orders, across all facilities,

seamlessly and to very aggressive production schedules.• Global monitoring system to address issues before failure occurs or to

quickly respond to unexpected situations.

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global capability

• Printing: 30,000,000+ 4-color digital pages per day• Binding: 200,000+ bound books per day• Mailing: Millions of pieces per day• Fulfillment: 200,000+ orders per day

• This capacity is unmatched in our industry today.• We are committed to future expansion.

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strategic outsourcing value

FuelGrowth

ReduceCosts

MitigateRisks

• Faster Time to Market• Flexible infrastructure• Virtual capacity• Global expansion•Business Intelligence• Information Lifecycle Management

• TCO• Volume = Savings• Lower Support Costs• Leverage CGX buying Power• Enhanced Operational efficiency

• Multiple operations• Disaster recovery• Experience• Knowledge of HP Infrastructure• Improve Security• Better controls

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total cost of ownership

Hidden Costs

Visible Costs Per unit printed material price

Printed Material

Procurement

2

Material Management

Waste/Obsolescence

Storage Distribution

Managing multiple vendors adds 5-15% 16% is wasted due to obsolescence Single purchase order generates $75-$175 in internal costsStoring inventory adds 19%Fulfillment adds 87%

Total Hidden Costs $0.20

$0.02$0.02$0.01$0.03$0.12

$0.14

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SystemIntegration

• Custom API

• Integrated network• Content mgmt software• Digital PCS• Online resources

Sourcing

• Capacity planning• Forecasting• Contingency planning• Material standardization• JIT/VMI Supply Chain

Production

• Facilities• Equipment allocation• Training• Color management• Project management•Quality (ISO)

Distribution

• Global resources• Distribute & print• Automated ship selection• Freight options • Postage savings

Invoicing Reporting

• Centralized billing• Production reporting• Key performance metrics• Savings analysis

strategic outsourcing

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Local/Regional Printers

Historical

Local Departments / Divisions

Marketing Purchasing

CustomerCorporate HQ

Customer - Printer relationship

CustomerCorporate HQ

Today Future

Local Departments / Divisions

CGX Print and Document Services

PurchasingMarketing

CGXOperation

CGXOperation

CGXOperation

CGXOperation

strategic outsourcing

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strategic outsourcing – reengineer your thinking

• Job strategy & planning • Continuous improvement methodology• On site project management• Scalable solutions• Process engineering within CGX network• Local representation for HP OEM’s• Dedicated support services group• Administrative/reporting services• Subject matter experts • Program implementation

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Implementation Team Leader

Facility Preside

nt

Producing Facility 1

Facility Preside

nt

Implementation Team Leader

Producing Facility 2

Customer

Sales Team

CGX PMTSSG

strategic outsourcing

Distributed Manufacturing

• Single Point of Contact

• CGX Presidents “own solution”

• Solution “Franchised”

• Processes replicated

• Training replicated

• Equipment replicated

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statement on auditing standards #70

(Data Security)

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important ?’s

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SAS-70 users

• Current and Prospective Clients

• Client Security Organizations

• Independent Accountants and Auditors

• Sales and Marketing Departments

• Corporate Accounting

• Institutional Clients

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SAS-70 type 1 & type 2 differences

• Reports on controls placed in operation and tests of operating effectiveness (for a period of time, 6 months)

• Differentiating factor: Includes Tests of Operating Effectiveness

• More comprehensive• Requires more internal

and external effort• Identifies instances of

non-compliance• More emphasis on

evidential matter

Type 1 Type 2

• Reports on controls placed in operation (as of a point in time)

• Looks at the design of controls- not operating effectiveness

• Considered for information purposes only

• Not considered a significant use for purposes of reliance by user auditors/organizations

• Most often performed only in the first year a client has a SAS 70

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print transformation• The future is Digital!• By 2020, 40% of industry sales will be Digital compared to

10% of industry sales in 2010.• CGX leverages technology, footprint and equipment mix to

assist customers in leveraging digital capabilities.• 100% of our National Accounts have leveraged our digital

resources to meet strategic objectives and achieve higher levels of performance.

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print transformation

CurrentDistribution Model

Improve Distribution

Reduce Obsolescence

Process Change

Improve Cost Savings

Today

WarehouseNeeds

Future

PODNeeds

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opportunity is in the process

On average, for every $14 spent on printing, $20 goes to ancillary services.

-Infotrends.com

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print transformation

The Challenge: • Marketing materials were not the first priority at the Tyco

fulfillment facility.• Delivery times were too long• No accurate product counts• Obsolescence was uncontrolled• Most important to them, they had no true measure of costs

and usage.

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print transformation

The Result: • Print and fulfillment services awarded to CGX• Increased time to market utilizing CGXSolutions StoreFront • Improved inventory control• Over 50% of products migrated from offset to digital• CGX-led Print Transformation to meet ADT goals • Six Sigma team recognized 64% reduction in expenses & 48% reduction in

process steps • Total cost savings of $2.1 million in the first year alone.• Reduced fulfillment time from 30+ days to 1-7 days • Reduced literature creating time from 104 days to 20 days.• StoreFront hosts 1600 products and provides user access to 5500 active users.

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print transformation

Shell Overprint Program •Digital technology reduced turn time•Eliminated storage costs•Removed need for inventory management •Mitigated risk of obsolescence•Reduced risk of cash flow tied up in static materials•Customer saved $55,000 in first year

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print transformation

The Challenge: • Replace clumsy two-color pocket folder & hand

collated inserts • Integrate with existing ordering system • Develop a scalable solution • Reduce costs • Produce up to 300,000 units per year

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print transformation

The Result: • Decreased Call Center Volume • Closed Down an Entire Warehouse• 1.2 million pieces of paper trashed when move made to POD• Decrease in Postage Costs • No affect to the IT budget • Positive Response from Brokers & Customers• Product updates take less than an hour with no waste.• Fully automated digital workflow is fast and error free.• Print Transformation goals achieved for customer

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print transformation

The Challenge: • Eliminate inventory • Eliminate product obsolescence • Reduce transportation costs• Reduce new product release lead-times• Production to occur on-site with other

manufacturing processes

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print transformation

The Results • Installed onsite digital production facility within Esselte operations• Saved Esselte $500k in year 1• Reduced inventory from 6 months on-hand to 1 day• Virtually eliminated transportation costs• Expanded Digital Production centers inside Esselte facilities in

Union, MO and Reynosa MexicoSaved Esselte 500k in year 1• Reduced inventory from over 6 months to 1 day• Virtually eliminated transportation cost• Digital Production centers inside Esselte facilities in Union, MO and

Reynosa Mexico

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print transformation

Nimblefish Program• Produced over 120MM direct mail

pieces • Largest digital direct mail campaign

in North America• Single source production contact• Choreographed production utilizing

the 4 CGX digital supercenters

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Presentation TitleName of Speaker

April 21-22, 2010 San Antonio, TX

Distribute then Print Consolidated Graphics’ Digital Print CentersSteve Brown, Kevin Davis, Jim Finger, John Scheffler