| Berryville Graphics: Client Connectivity |
| Corporate Spotlight | |||
| Written by Amanda Gaines | |||
| Thursday, 01 May 2008 | |||
 Bob Robinson explains how this trade book manufacturer has invested in infrastructure and equipment to ensure it continues to meet its customers’ needs.
 Bob Robinson, president “In the past, a customer may have ordered 10,000 of a certain book; now they’ll only order 7,500,” said Bob Robinson, president. “Or, on a reprint order where clients think in two weeks 5,000 books will be needed, they will wait another week, which means we have a shorter period of time to produce the books.” Investing in the future Part of the company’s multi-pronged approach to tackling the changing market is a cumulative $6.5 million investment that will include an EDI (electronic data interchange) link to customers. Several live modules are already in place with one of BVG’s major customers, and Robinson believes the system is one of the first working EDI models between customer and supplier. If all goes as planned, BVG will have information links to its clients, enabling client access to data such as order management information, job status information, and shipping status. “We’re building the ring where clients can tap right in through the Web and see what the status of their jobs are,” said Robinson. “With that process comes a fair amount of investment in hardware and software, but we’re going down that road to increase customer satisfaction.” On the equipment side, the company invested in a new press with a capacity for 35 million-plus books and upgraded its equipment to improve quality and productivity. One of the larger equipment investments, which totals more than $500,000, opened the door to a wider variety of books to be produced on a link line, increasing capacity and reducing turnaround of customer orders. And as turnaround times shorten and orders are reduced in size, BVG has also invested in its print-on-demand capabilities, which include short-run digital books, and digital pre-press services. The ability to run short-run, print-on-demand books, said Robinson, is one of the company’s competitive advantages. Although clients may spend more per book, in the long run, it’s cost-effective because they aren’t ordering 1,500 when they only need four. Taking a risk On the flip side of the process, BVG consistently meets with its suppliers to agree on expectations and refine relationships. As budgets continue to tighten and the need for cost controls increases, suppliers have to become more efficient and cost effective, which means leaving the frivolity of the past behind. “Our suppliers’ schedules have to improve, which means their quality has to improve because we no longer have the scheduling flexibility that we had many years ago,” said Robinson. “Now more than ever, it has to be right the first time, so we’re looking into areas where our suppliers can reduce risk of inventory fulfillment.” BVG is further implementing a consignment-based relationship with material suppliers, meaning they can place product on the company’s floor, but BVG only has to pay for what it uses as it’s being used. Prior to developing this business structure, suppliers would bill customers as soon as a shipment was delivered. Now, suppliers won’t bill customers for customer-supplied materials until BVG reports the material has been used. “There’s no benefit to us other than the material is here, inhouse,” Robinson said. “The customer receives all the fiscal benefit, and we’re happy to support that.” Virtual love fest In addition to the changing market and customer demands, the company has undergone a structural change in the past year. In April 2007, Arvato Print USA was formed, linking the book printing, component printing and finishing, and distribution expertise of Coral Graphic Services, Inc., a market-leading component supplier based in Hicksville, NY; Offset Paperback Manufacturers, Inc., a mass-market leader based in Dallas, Pa.; and Horsham, Pa.-based Dynamic Graphic Finishing, Inc., a market leader in component finishing and special effects. A division within Bertelsmann AG, Arvato is truly a one-stop shop for customers. Previously, customers would coordinate with one supplier to produce a certain part of a book. The customer would then coordinate with BVG to make the books. The final step would be contacting yet another vendor to complete fulfillment services. Now, customers can coordinate the entire process through one group, reducing the complexity of the ordering process and administrative head-aches. In fact, Arvato Print USA can coordinate all activities on behalf of BVG’s customers, said Robinson. The relationship has heightened BVG’s customer satisfaction levels, which is the company’s ultimate goal in any process change or investment. In one recent business review meeting, a client described the new structure as a virtual “love fest.” “That’s really one of our key goals,” Robinson said. Although it’s too soon to see the full-scale impact electronic publishing will have on print media, Arvato has embraced the technology in two ways. The first: a substantial percentage of its print topics center on the Internet and other means of electronic media. The second: many companies within Arvato use a digital platform as part of their revenue stream. Regardless of the long-term impact of the digital age on books, Robinson said, the company will continue to evolve to meet its customers’ demands, just as it has in an economic downturn. “We will look for ways to adapt to new technologies, seeing how we can supply more services and products supplemented by a digital platform or associated with it,” he said. “To continue to grow, we have to evolve.” |
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American Executive is a RedCoat Publishing publication.
American Executive is a RedCoat Publishing publication.
