15000 Corrugated press: American Packaging and Corrugated
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15000 Corrugated press: American Packaging and Corrugated Market Stephen Shannon Sales training, Apr 14 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The voice of the market , coming back from Global Shop Boxes & Displays are silent sales executives! P&G What’s the trend? Be better…Enhance case as marketing tool 2 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Everything that can, will become digital Printing is no exception 1. The Market has changed 2. Digital has changed 3. Our customers needs are different 3 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The market has changed © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Digital is touching many parts of our lives Things are changing at an incredible rate! Today, people are more “connected” than ever! 5 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Global trends for brand owners Globalization 6 Mass customization • Global brands demand a global presence • Fast-prototyping, shorter runs and more versions • Quality and consistency across multiple campaigns • Real-world manufacturing integration and deadlines © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Economy driven requirements • Reduced supply chain, waste and storage costs • Distributed printing near manufacturing facilities Accelerating industry transformation Theme-based packaging • Shorter product lifecycle • Faster time-to-market • Average print run length declining • Greater number of short-run jobs and versions 1 Source: 7 Micro-segmentation • Supply chains moving towards on-demand fulfillment • Geographic, event-driven and targeted demographic campaigns • Increased financial & environmental sensitivity to waste Ferrari Innovation Solutions, LLC © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. SKU proliferation 38K to 48K Average grocery store SKU increase over the last five years 2007 – 2012 What is driving the rapid momentum of digital printing? Brands have the flexibility to address a variety of go-to market promotions… Consumer 8 B2B Seasonal National © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Regional Local Cause Event The digital LF opportunity is getting even bigger Signage Total market 62B sq.ft Addressable POP/POS Retail Decoration Total market Total market 43B sqft Outdoor Advertisin g Vehicle Wraps Signs Events & Exhibitions Photo & Fine Art 170B sq.ft Addressable Packaging 35B sqft 730B sq.ft Addressable 60B sqft Home Decoration Vinyl flooring © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Confidential 9 9/15/11 9 Transformational Trends Changes in demand are boosting digital printing growth 67% of PSP’s reported a trend of shortening runs (*) 3X number of jobs for the same volume than 2 years ago (**) Jobs down from 10,000 or 20,000 copies to 1,500 copies (**) More than 40% of PSP’s increase demand for QRC’s and variable data (***) PSPs expect digital business to grow from 35% to 43% in the next two years (*) (**) FESPA/Infotrends WW Global survey Internal HP data & customer insights © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. HP Confidential 109/15/11 10 (***) Infotrends 2010 survey Transformational Trends Environmental mindshare increasing Major brands taking a more sustainable approach to wide format print sourcing …and on the PSPs that print for them HP Confidential © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 119/15/11 Placing more environmental requirements on their prints… So they are increasingly looking for PROOF of environmental credentials 11 The market is changing Berlin 1984 Berlin 2013 Messages everywhere 12 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The Package serving two functions – the “box” and the “Message” Stronger demand for innovation Connectivity to smartphones Smartphones Security & Authentication QR codes Augmented reality http://www.youtube.com/watch?v=GCkZq3Z892o 13 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Retail driving changes in box design Walmart North America adoption 14 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The Rising Status of the Package Once a standalone in-store marketing tool, packaging has become a major component in integrated cross-media marketing campaigns that blend print and online. The expanded role of packaging enables label printers and packaging converters to expand their services and recast their role in the supply chain. 15 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Latent demand for Higher quality The Market paradigm * Industry 4-5C job distribution Cost driven to lower colors Expected Orders/ year Actual Offset for setup costs 2000 * Based on P&G info 16 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 5000 >10k # sheets/order Stronger demand for innovation Creativity PVC * HP FB7600 customer ,Italy 17 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Re-board Stronger demand for innovation Special events *HP FB7600 customer ,Australia 18 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Stronger demand for innovation Personalization and limited edition * HP FB7600 & FB10000 customer ,USA 19 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The result: more short runs with higher value Sheet plants in the past © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Sheet plants in the present 2 Digital has changed © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Digital printing has changed … Scitex VeeJet HP Scitex FB10000 Scitex XLjet 22 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Digital printing has changed … Productivity sqm2/hr • Faster machines • More automated • Higher reliability Cost per Copy 1.2 $/sqm2 1.0 • New technology • Lower waste • Mass production 0.8 0.6 0.4 0.2 Print quality • Smaller drops size ,GS • Better accuracy • Media handling PQ 23 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Prod. The result: Doing more in the corrugated market Shipping Containers <0.2$/sqm FMCG packaging 0.8$/sqm Shelf ready packaging Hi Impact consumer Packaging 1$/sqm 1.2$/sqm Temporary Displays 5$/sqm 2$/sqm Permanent Displays 10$/sqm Print Value Print volume 50,000 10,000 1-2c Flexo 24 3-4c Flexo © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 5,000 Litho Laminate 1,000 Our customers needs are different © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Higher margins Reduced costs 26 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Reduce costs Reducing inventory and waste Digital Print On Demand © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Print on demand = Just in Time solution Analog Digital Print On Demand © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Reduce costs Lower paper weight Digital Printing with ZERO pressure on Board © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Minimize mistakes costs Analog What is the cost of mistakes? R/R Digital 30 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Higher margins Reduced costs 31 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Higher margin applications © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Versatility Plastic is a threat ! • Mainly reused • Strong lobby in Europe • Corrugators want to have an option to print on Plastics RPC = Reusable Plastic Crates © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. * Based on HP PKG advisory group ,Oct 2013 Becoming a one stop shop Offering convenience & speed to market © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Help your customer to be more profitable Re-packing ,adding value © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Markets we serve… Wide range of market specific digital print solutions Photo Direct Mail Point of Purchase 36 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Marketing Collateral Publication Labels & Packaging Large Format & Signage The customer journey - FMOT There are two mindsets, three milestones, and six universal questions to be aware of in every customer journey. 2 mindsets: 3 milestones: DISCOVERY Awareness, Consideration, Preference 6 universal customer questions: FMOT SMOT First Moment of Truth Second Moment of Truth TRIGGER: COMMIT: BOND (loyalty): Do I need something new? Will I buy you? PostI satisfied Purchase enough to buy you again? Was ADVOCATE: CONSIDER: Who are you? What are you? EVALUATE: Why should I buy you? 37 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Would I recommend you to others? Touch points Touch points are where customers and company interact. They include any and every interaction when a customer comes into contact with HP. Customers 38 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Broadest Digital Portfolio in the Graphics Industry $1B invested in graphic arts R&D since 2008 Corrugate Sheets and Displays Paper rolls, Corrugate liners Proofing Prototype s HP Scitex FB500/700 HP T400 Color Inkjet Web Press Labels and Shrink Sleeve Labels and Flex Pack HP Indigo ws4600 HP Indigo ws6600 HP Scitex FB7600/10000 Labels and Flexible Packagin g HP Indigo 20000 HP DESIGNJET 39 Copyright 2012 Hewlett-Packard Company,herein L.P. The information contained is subject to change without notice. © Copyright 2013 Hewlett-Packard© Development Company, L.P. TheDevelopment information contained is subject to change withoutherein notice. Folding Carton HP Indigo 30000 Hewlett-Packard Indigo Product Portfolio ElectroInk Sheet Solutions HP Indigo 3550 Digital Press HP Indigo 5600 Digital Press HP Indigo 7600 Digital Press NEW HP Indigo 10000 Digital Press NEW HP Indigo 30000 Digital Press ElectroInk Web Solutions HP Indigo WS4600 Digital Press 40 HP Indigo WS6600 Digital Press HP Indigo 7250 Digital Press © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. NEW HP Indigo 20000 Digital Press Where are the hidden costs? Materials 41 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Latent opportunity Time Corrugated printing supply chain structures Printing D2C Corrugator Sheet plant Buyer Sheet plant Buyer Sheet plant Buyer in house Buying pre-printed sheets & laminating in house Corrugator Printing sheets and laminating all in house Corrugator GCP Supplier 43 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Levels of complexity in making the sale More complex Basic Printing Economics Reasons to invest 44 50% Operational Efficiency 30% © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Market Profit Pools 20% Our focus is on these two Basic Printing Economics 45 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The full TCO – CPC for analog printing 46 Fixed costs – costs that will be there whether you print today or not CAPEX, Labor, Rent, HW maintenance, Financing Job prep costs – costs that are associated with setting up the press Plates, Make-ready waste Per impression costs – costs that are associated with making the single copy Ink, media, lamination © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The master equation The cost of the overall time spent on the press – print and setup Materials cost of setting up the job – plates and makeready waste Consumables cost – media, ink and any other consumables or processes πΆππ π‘ ππ π πππ = πΆππ» ∗ π ππ‘π’ππ‘πππ + πππππ‘π‘πππ + πΆππ½ + πΆππΌ ∗ π π’ππππππ‘β πΆππ π‘ ππ π ππππ¦ = 47 πΆππ π‘ ππ π πππ π π’ππππππ‘β © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. So, let us summarize 1. Every customer is different – understand the case and apply the right strategy ο§ Printing process (D2C, lamination) ο§ Business model (displays, boxes, GCP) ο§ Operational model (Outsource, in-house) ο§ Financial model (variable costs, Loaded costs) ο§ Soft cost of speed to market 2. Consider all waste factors – time, materials, opportunity. Inventory 3. You need to understand the financial metrics 48 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The HP Scitex 15000 Corrugated Press with HP Scitex High Dynamic Range [HDR] Technology creates a new super high-end category of industrial printing solutions HP Scitex High Dynamic Range Technology extends press capabilities and performance while preserving precision control over the printing process 49 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. From Screen to Litho and Flexo Pushing four vectors simultaneously 50 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. FB 10000 & 15000 corrugated press solutions: Tailored design for the corrugated converter © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Super High End Flatbed - corrugated handling Zon e1 vac. [mbar] media 2400x1200 70 60 50 40 30 20 10 0 FB 7600 2 3 Zon e3 Zon e4 Zon e5 Zon e6 1.2m x 2.4m 4’ x 8’ FB10000 1 Zon e2 4 zone vac. [mbar] 4 B1 sheets (700x1000) 35 30 25 20 15 10 5 0 FB10000 FB 7600 1 52 2 zone 3 B1 B1 B1 B1 4 X2 – X6 the vacuum power of FB7X00! © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. bac k Stack directly to lift or push prepared stacks on rollers Forklift operational zone Operator MH zone Manual stacking on lift FB10000 Step 1: manual stacking, Basic Forklift operational zone Operator MH zone Manual stack push/pull FB10000 Step 2: ground level conveyors 53 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Forklift operational zone Everything that can, will become digital Printing is no exception 54 © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
