* "One challenge is finding a common
computer interface. There are no true standard communication links available for
quoting, ordering, invoicing, status, etc."
* "Manufacturers still want to sell ink
on paper and are digitally illiterate."
Ouch. The message is clear for
manufacturers: Distributors want more and better communication links with you
that will help them serve end users. That being said--and if such communications
problems are realities in your manufacturing facility--how should you begin to
upgrade your communications?
Be Flexible and Forward-Thinking
Ken Sperling, CDC, president of manufacturer Printco Inc., Omro, Wis., says the best investment for his firm was making PCs available to every staff member. Each person in the firm's office and prepress department has his or her own email address and access to the internet. "This has allowed different people in different functions to choose what method is the best way to communicate to our distributors--phone, fax, email or snail mail," Sperling says. "Each has its own distinct advantages and not having all the tools makes us far less efficient."
Printco employees have immediate access to information needed to serve distributors, vendors and internal customers. The firm can send broadcast faxes or emails to reach groups of distributors quickly. It also can send personalized letters, faxes or emails to individuals.
Flexibility is extremely important in the communication processes that link manufacturers to distributors to end users. Even today, most of Printco's orders arrive via fax; few orders arrive in the mail. Many distributors call in reorders that require quick turnaround, Sperling says, and a growing number of distributors have email systems that allow them to transmit orders directly from their web sites.
"Like faxed orders replaced mailed orders in the 1980s, we'll see email displace faxes," Sperling says. "EDI never happened and never will now that the internet has exploded." Email communication does have its drawbakcs, however, as computer viruses continue to proliferate and cause email system downtime. "No matter how much you spend on firewalls, there [always] seems to be some bug that gets through," Sperling says. In other words, manufacturers shouldn't toss their fax machines in the trash just yet.
Paper still has a place in Printco's flexible communications system. Sperling admits Printco is probably one of the last manufacturers that still sends multipart invoices to distributors. For distributors who don't have the ability to fax or email purchase orders, one part of the invoice can be submitted for reorders, Sperling says. While this may not seem high-tech, many of Printco's distributors still use this system for repeat orders and orders with minor changes.
At manufacturer Rowan Business Forms, Salisbury, N.C., employees with direct customer contact have their own PCs to price orders and perform other processing functions. According to the firm's president, Rick Hardesty, CDC, Rowan uses traditional mail for invoicing. Its average order price is high--$1,500--and hundreds of customers fall into this spending category. Samples usually accompany invoices so orders can be tracked to the original purchase orders and procurement sources. On rare occasions, email invoicing is used, but mostly for small orders.
Be Real About Implementation
Leading manufacturers and converging competitors such as Kinko's and Corporate Express increasingly are using technology and customer service to tie their front ends to their delivery systems. For example, a local Kinko's can take emailed copy and print specifications, email and/or fax back a proof, run the job the same day, and deliver the job and invoice in person. Most often, these jobs range from very short runs of simple padded or 2-ply forms to marketing pieces that require moderate color and quick turnaround. This concept of technology plus service can be replicated for the higher-end printing done in our industry.
Printco hasn't found one software system that meets all of its needs from order entry to product delivery. The company's software is split into three areas: order entry, purchasing, production, accounts receivable, accounts payable and shipping; databases, communications and marketing; and prepress.
A Unix-based system designed by supplier Plantrol Systems Ltd., Westfield, N.Y., handles order entry, purchasing, production, accounts receivable, accounts payable and shipping. Distributors can access Printco's production and shipping components through the manufacturer's web site. Internal customer service reps can view order statuses and other information.
Printco's database, communication and marketing needs are answered by ACT!, customer relationship management software configured to provide customer service reps with current client information. ACT! allows Printco to input notes regarding orders in process, flag problems and track communication with distributors. ACT! streamlines communication among administration employees, customer service reps and prepress workers, and allows them to efficiently follow and complete customer orders.
Printco's prepress computer system combines Macintosh hardware and standard software such as QuarkXPress, Adobe Illustrator and Adobe Photoshop. Prepress personnel import art files and prepare them for direct-to-plate output. "The headaches in accepting and preflighting files have been talked about extensively in this industry," Sperling says. "We continue to deal with these problems every day." Customers who are technically capable, and with whom Printco has worked extensively, have corrected most of the issues.
Rowan Business Forms is challenged especially by file transfers because its product line is so complex. With the exception of rare repeat orders, "no two orders are ever the same," Hardesty says. The one common denominator is that Rowan's products carry consecutive bar coding or variably imaged information. Rowan produces some color work on web presses, and it produces forms and integrated pressure sensitive products requiring special die cutting capabilities.
Although Rowan has upgraded its prepress systems to accommodate PDF files and advanced desktop publishing needs, most files it receives can't be opened without some troubleshooting, Hardesty says. Customer education is important because graphic artists usually understand the design and creation side of publishing software but have limited print production knowledge. And, relatively speaking, some customers are simply more tech-savvy than others.
According to Hardesty, it's impractical to assume you can implement a common system when products are unique, uncommon and offer high degrees of specialty.
Be More of a Marketer
DMIA's survey results specify that the manufacturer's role should evolve to include a marketing push to distributors. Printco has helped numerous distributors implement database management systems that can be used to market products to customers and prospects.
A good database management system includes more than customer location and contact information. It also should include sales activity tracking and ongoing communication with customer service. Sperling says the system should provide quantitative and qualitative details about end users. Some details include types of software, printers and fax machines they use; products they buy from distributors; and products they should be buying. "A database management system can help a manufacturer and distributor sell more products and services by direct marketing to customers via targeted mailings, broadcast fax and emails," Sperling says.
Rowan also uses targeted fax marketing to reach distributors. "A new idea, product or capability can be shared at seven cents per sales call," Hardesty says. Not only are fax machines cost effective, they rank second to the telephone as the most common piece of office equipment. Fax marketing is an effective tool and can serve as the initial customer contact. Based on fax responses, manufacturers can build those relationships via follow-up calls and email messages. "It's difficult to track down a sales rep who spends his or her day in the field," Hardesty says. "Email and effective use of the phone and voice mail are essential for ongoing communication to this group." Customer service reps are catalysts for turning distributor interest into sales.
Rowan uses fax marketing to sell the concept of an integrated bar code as a superior product to the multipart form. It also uses targeted faxes to re-introduce products to distributors. Its product line historically has been strong in the broad manufacturing industry. With the growth of the service industry, Rowan re-marketed certain applications for distributors. A new dry cleaning application and several medical forms applications already have been presented this way.
Printco and Rowan are two companies answering some of the concerns cited by distributors in DMIA's survey. Distributors want technology that will streamline communications. Adapting to their needs will help manufacturers better serve distributors.
Dennis McGarry, CDC, is DMIA's vice president of manufacturer and technical programs. Email him your comments at dmcgarry@PSDA.org.
