Digital Printing--Malloy

De-Mystifying Digital PrintingA “Traditionalist’s” Perspective

Joe UptonVice President, Sales and Marketing

Malloy IncorporatedAnn Arbor Michigan

May 23, 2011 [email protected]

1960

Today

Malloy Incorporated

Who we are

• Family owned• Full service one and two-color book printer• Hard and soft-cover• Multi-color covers, jackets and components• Publishers across the USA• $37 million in sales• Produce over 31 million books / year• 8,000+ jobs / year• Range: 1 to 225,000 copies• Median quantity: 2,000 copies• 8 Timson webs for text• 1-2/c, 4/c and 5/c sheet-fed • Digital printing equipment for ultra-short run• Storage and fulfillment solutions

Old Supply Chain

Change Drivers

• Digital printing and POD

• Web Commerce:– Paperless information flow– Retail—Amazon– Direct to consumer

New Supply Chain

Fragmentation Causes Complexity and Opportunity

Challenge is to integrate long run, short run and POD to maximize margins over a title’s lifetime.

• POD – Deep back listor micro-demand

• Short run and ultra-short run (digital short-run) – Minimize inventory cost and cash outlay

• Long run – Minimize printing cost per unit / maximize profit on sales

Print to Need

Print what you need when you need it

Primary elements:• Cost efficiency over a broad range of

quantities

• Speed to market

• Easy to manage

Cost Efficiency

Unit Cost256 pp | soft cover | 4/c cover

Offset 1st Printing

Digital Short RunOffset Reprint

New title breakevenDigital vs. Offset ~ 750

Reprint breakevenDigital vs. Offset ~ 400

Speed: Books When Needed

• Uncertain about demand at launch:– Print too many—store cash in the warehouse– Print too few—miss sales

• Solution—fast turn at any quantity

• Total cost of two offset print-runs is the same at any combination of quantities

Books When Needed—Case StudyThe Book of Awakening

(448 pp, soft cover)

Copies Start Date Cycle Time*

6,000 23-Aug 12

30,000 13-Oct 9

10,000 4-Nov 8

50,000 23-Nov 5

37,500 30-Nov 4

5,000 7-Dec 4

15,000 14-Dec 8

15,000 27-Dec 5

15,000 19-Jan 9

7,500 23-Feb 11

191,000 *Working Days

Easy to Manage

• Simplified – Automated Transactions

• Web service tools for:– Pricing– Ordering – Job tracking– Inventory management

Optimize the Whole!

• We’re not rocket scientists

• COGS is more than unit cost

• Different ways to manage the supply chain:– Source with specialists– Feed your readers from one source

• Trusted partnerships

• Maximize margin per sale

Feed Your Readers From One Source

Thank you!

[email protected] 995-8524

www.malloy.com