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Packaging Features List 2008

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Offshore options

Printed products permeate our lives, and the days when print buying required little more than a Yellow Pages and a BT landline are over. From the books and journals to the branded pen, we use to complete the crossword – every­thing with a printed element is now as likely to have come from the Far East as the East Midlands. The global market has opened up and buyers, driven by the demand for year-on-year savings, are looking further afield for the best deals.

But are the savings really that great? Barney Hosey, key account manager at Cheltenham-based
Target Direct Print, believes so: “If you consider a product, for example a mass-produced pen that you want 500,000 units of and that you had time to ship back by boat from the Far East, then yes, the savings would be massive, up to 50% cheaper.”

Saving Euros
Cost reductions from mainland Europe may not be as impressive – Hosey estimates that, with a favourable exchange rate, 15% is probably the maximum – especially when increased distribution costs are taken into consideration. However, Think Publishing production director Chris Innes says: “any saving is significant, no matter how small it is”.

Saving money is by no means the only plus to global sourcing. Many consider customer service to be better overseas than in the UK. Despite the time difference, or in some cases because of it, quotes are reportedly returned faster by overseas suppliers. “You can fax a request at the end of the day and get an answer first thing, because they work while we sleep,” explains Haymarket group production manager Laura McClennon.

In addition, there are process constraints to consider. Until recently, Polestar was the only UK supplier to offer gravure printing, which presented scheduling problems, with buyers unable to get the slots they required. Turn to mainland Europe, however, and you will find a ready supply of gravure printers – most with extensive experience of dealing with foreign customers.

Quality is as important as price when buying print and so it is essential to be diligent in your approach to any new supplier. However, for those seeking a trend, there isn’t one. There are bad printers in the UK, just as there are in mainland Europe and the Far East. “Quality is available from most places if you know where to look,” says Hosey.

However, it stands to reason that it is easier to check the quality of a European printer than a Far Eastern one. Where factory visits are impractical, it is best to go for a supplier with some experience of selling overseas. Innes explains that you can usually tell from a quote and the amount of questions a supplier asks whether they are used to working with overseas customers or not. “A few questions are good, too many and the alarm bells start ringing. If a printer has been working with UK customers for a while, then you’re usually in for a smooth ride. If they’ve just started to branch out overseas then I’d prefer to let someone else road-test them.”

Long leads
Possibly the most serious pitfall in overseas buying is the long lead times required for delivery. Estimates vary, although around six weeks seems to be the average for shipping from China. Common mistakes include failing to consider not just the cost of delivery of the main product, but of ancillary products such as inserts. In addition, storage costs and potential import/export costs need to be considered, as do potential time delays incurred by customs. Finally, currency fluctuations can have a huge impact on costs, especially for a large job, as can seasonal variations in capacity in various parts of the world.


TOP TIPS ON BUYING OVERSEAS
• Communication is key, especially when dealing direct. Make sure you are clear and concise in your requests and document everything
• Pay attention to variations in capacity and exchange rates. These can leave you short-changed if you’re not aware of them
• Don’t ignore the UK. Greater investment in machinery, coupled with scheduling flexibility and lower despatch costs can outweigh the financial benefits of going overseas
• Social and environmental issues are near the top of many companies’ agendas nowadays. Check, as far as possible, the working conditions in overseas factories – do they have any internationally recognised accreditations? Assess clients’ views on the added environmental impact of printing overseas
• Factor in extra time, not just for shipping, but also for potential delays with customs
• When searching for a suitable overseas partner, look for length of time and experience in the market, as well as qualifications
• Don’t be afraid to ask for samples and references to back up what is promised

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