■ASIA FORUM
6th FAGAT/Singapore 2002
Information Exchange Meeting

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Presented at the 6th Annual Meeting of the Forum of Asian Graphic Arts Technology (FAGAT) in Singapore, 19 November 2002
Mr. Winson Lan / Chief Executive Officer,
A & P Co-ordinator Pte Ltd KiKUZE(r) Solutions Pte Ltd

Part 1 - Introduction

At this same conference last year, my colleague, Mr. Toon Santen, Managing Director of Intergrafica Print & Pack (Singapore) Pte Ltd presented his views on the future of the printing and graphic communications industry.

Well, my job is to continue from where he left off last year on the future of the industry. However, for the benefit of those who did not attend last year's conference and also as a recap, I will just do a short summary on his presentation to refresh all our memories. Also, this will help to ease us more easily into today s subject.

My apologies to Mr. Santen if I am not able to capture all his salient points accurately.

1A. The Growth Of Digital Printing
• Digital printing which includes variable data digital printing is the fastest growing segment in the worldwide print industry.
• Within digital printing, customisation and personalisation on print materials presents the most attractive proposition to print buyers. Variable data digital printing fulfils the demand for the objective of marketing to the audience of one. This technology is extremely relevant to marketers who are increasing their focus on Customer Relationship Management (CRM). CRM recognises unique individual preferences and the need of customised solutions to meet those preferences.
• There is no question that the future of the printed page lies in variable data digital printing which produces highly customised print materials specially tailored for every individual.
• As improvements are made to digital printing presses, such as those from Xeikon, Xerox, Canon, Heidelberg and Indigo, the quality and costs of digital printing may eventually approach those of conventional lithography, even for medium and long runs.

1B. The Advances Of Print Technology
• The adoption of digital workflow in the entire print production process will lead to printers who are more technology savvy, thus leading to greater productivity in the entire print industry.
• The adoption of computer to plate technology has brought about greater efficiency and productivity and of course, savings in labour and materials. With advances in new technology, we can reduce the steps and processes in the entire print process for better productivity and returns.
• The use of colour management and calibration tools will ensure consistent colour output in the print production process, whether it is for offset or digital printing. A more sophisticated and user-friendly tool that controls colour calibration for both offset and digital printing is needed.

1C. The Advances Of Information Technology
• The proliferation of the internet will change the way we printers do business forever. It allows us to get closer to our clients.
• The internet and electronic mail enable us printers to receive orders and quotations electronically, communicate with clients 24 hours a day for job monitoring and allow clients to retrieve their digital assets and manage their data anywhere in the world via the world wide web.

Mr. Toon Santen had warned of the ongoing reduction in the number of printing establishments and more mergers, alliances and joint ventures among printers and suppliers. In this digital age, there is no moving back to the analog way of printing. As printers, we HAVE to embrace new digital and information technologies in our business. To paraphrase Mr. Toon Santen, we do not want to go the way of the extinct dinosaur! But I want to point out a major difference. Dinosaurs are extinct because of a natural world phenomenon beyond their control. If you become extinct as a printer, it is your fault, because you have not adapted to the changing times.

Now, let me share with you where the future of print is moving towards. And you can decide if you want to be part of the future or a dying dinosaur.

Only a few years ago, we printers keep and update files for clients. Because only we in the industry can handle post script. Desktop publishing was a professional role. And today? My secretary can work with PageMaker and Photoshop on her personal computer!

The introduction of PDF serves as a great standard for communication between designers, printers and clients. But it is also a threat to us as PDF files can be sent directly to print without the use of post script.

ID. What do print buyers want now?
Print buyers are smarter than us printers and they want better solutions from us.
• They want to request for quotations and award jobs online.
• They want to be able to access their digital assets at will and assign any print job to any vendor they want without too much hassle.
• They want quick and accurate digital proofing.
• They want to know who prints what, when, where and how much.
• They want speed, reliability and up-to-date tracking of all their print jobs.
• They want print on demand. Not more. Not less. Just enough when they need it.
• They do not want the traditional method of distributing print materials, which is to print from a central facility and then incur expensive freight and courier costs to send these printed stuff all over the world.
• Most of all, they want convenience, centralised control, accountability, self-service automation with the least possible miscommunication and errors for their print jobs.

Sounds like a tall order?

Part 2 - Revising the entire print procurement process

2A. Current print procurement process
This is the traditional method of buying print which is mostly paper-based.

Current Pain
* Process lacks transparency - no central collection of data on who prints what
* Miscommunication and errors accepted as the norm
* Turnaround time often compromised
* Unstructured filing of digital assets
* No proper control and tracking system

a) The print buyer requisites for a print order from management.
b) Approval is given by management.
c) Print buyer request for quotes from several vendors and select based on pricing, quality, speed and other considerations.
d) A purchase order is generated and sent to the vendor.
e) The print buyer engages in typesetting and layout.
f) The final artwork is passed to the vendor for submission of proofs.
g) Further editing and proofing may be required prior to approval for printing.
h) The print vendor processes the order and plans for production.
i) The next steps are pre-press, actual printing, post-press and finally delivery.
j) Then billing to the customer.

Now, let me show you how an online platform can greatly simplify this whole procurement process.

2B. Online e-procurement solution

Value Proposition
* Streamlining of entire print procurement operation
* Cost savings and greater efficiency
* Minimize miscommunication and errors
* Faster turnaround time with online automated buying process
* Centralised archiving and retrieval of digital assets
* Total control - decentralized purchasing, centralized control
* Closing the loop between buyers and vendors
* Ease of integration into current system

a) The print buyer can simply request for standardised quotations from several possible vendors online.
b) Select and confirm the most suitable vendor conveniently.
c) Edit and proof the materials online by interacting with several parties in real-time.
d) Obtain approval and send materials cum job order to the pre-selected vendor immediately.

2C. Why do we need to move this entire print procurement process online?

...Average cost associated with generating a purchase order is US$150. Assuming that this cost can be reduced to US$30 using a comprehensive automated purchasing solution, a company that generates 10,000 purchase orders per year can expect to save US$1.2 million in processing costs alone. The National Association of Purchasing Management (USA)

i. Cost savings and greater efficiency is the No. 1 benefit not just to the customer, but also to you, the vendor.

A ready-to-print job order is sent in a JDF file to the vendor. This eliminates numerous process procedures between buyers and print vendors and results in a speedier turnaround time.

It automates the entire back-end processes from requisitions, purchase order, approval, delivery to transaction reporting, eliminating the need for inefficient and error-prone paper-based process.

ii. Minimize miscommunication and errors

• The online process allows for corporate stationery, e.g. business cards and letterheads, and promotional collateral, e.g. brochures and flyers, to be digitised.

  A database link feature allows employee data and customer data to be stored in the system. Linking the data from the database to the digitised stationery seamlessly eliminates errors. Print data is encapsulated into PDF and sent to the vendor to minimize communication errors.

• The PDF files is sent together with a detailed print purchase order to the vendor. This print order contains all specifications in a standardised JDF format. JDF is an international document printing standard that embeds printing information. This format eliminates routine communication on paper type, number of pages, number of colours, finishing, lamination etc in the print coordination process.

iii. Centralized archiving and retrieval of clients digital assets

• The client only needs to create the template once in the software and can use it repeatedly. This eliminates repetitive effort, reproduction costs and loss of quality.
• Digital files are archived for easy access and job reprints. Digital assets are ensured and kept within the organization.

iv. 24/7 access and sharing of information

As the online workflow is hosted on the internet, the client gets instant, remote access to their personalised account and can order print items, view artwork, update profiles and database, revise print requirements and share files with the print vendor and agency anytime, anywhere!

v. Total control

• Each company's unique procurement business policies are applied and enforced.
• Decentralised purchasing while retaining centralised control.
• The system is database driven with individual ID and password access.
• Seamless backend integration and personalised user interfaces that give employees convenient access to the exact functionality they require.
• Enables the generation of audit trail reports for analysis and tracking of usage patterns, detailing who buys what, when, where and how.

vi. Closing the loop

• This process provides a common interactive platform for the client with their advertising agencies, graphic designers and print vendors.
• All parties can communicate in real time to confirm on the design and job specifications.

vii. Ease of integration

The system is platform independent and can be easily integrated with practically any system, whether it is your existing procurement system or enterprise resource planning.

2D. Opportunities and threats

Now, does the online process offer you opportunities or do you view it as a threat?

The adoption of this new approach to an old process requires an entire change in mindset by both clients and print vendors like you.

Be afraid. Be very afraid.

The online workflow is threatening your business interests.

Now I am going to show you how this integrated process will work for a multinational corporation in the following case study.

PART 3

2003/01/27 00:00:00