Increase your productivity through innovative solutions

N E W S
•
I N F O R M A T I O N
•
P R O D U C T S
S p r i n g
2 0 0 6
Savings
through
timely bill
payments
Lease or
purchase
Unique
advantages
with colour
management
Efficiency
through
workplace
wellness
Increase your
productivity through
innovative solutions
Experience the power of the source.
In this Issue…
Timely bill payments are key
to increased savings ...................... 3
Demystifying the decision
to lease or purchase ........................ 5
Printer profitability tied to
increased ROI for your customer ...... 6
Boast unique advantages with
colour management software ........... 8
Focus on workplace wellness to
reduce costs, increase efficiency ...... 9
Spring is a great time to usher in
new methods to realize cost savings
It’s sometimes hard to apply changes to
your business, or even look at your
procedures and purchases with a fresh eye.
That’s because the focus is on the many
details of running a company. Therefore,
there isn’t always time to determine how
changes may save on costs and increase
efficiency.
This issue of Solutions will help you view
your company’s processes with a novel
approach. You’ll learn why cost is sometimes
placed second to performance when it comes
to purchasing products. Are you trying to
decide if you should lease or purchase
equipment? We outline the pros and cons on
this topic, too.
At Unisource, we believe a comprehensive
look at day-to-day work issues can encourage
positive changes. We hope you take this
opportunity – as Spring arrives – to apply
new approaches and systems to your
company. These changes may help reduce
the rising costs of running your company.
Total Procurement Calculator (TPC)
saves time and money ...................... 10
When should price take second
place to product effectiveness? ........ 12
If you have received this copy of Solutions in error and it should be forwarded
to a different person or address, or you would like to be added to our mailing list,
please contact us at [email protected]. Thank you.
Automation increases productivity
while saving money .......................... 14
Some of our best…
Unisource Canada Regional Inventory
Manager Brenda Kardynal loves to crunch
numbers. And that’s a good thing as she’s the
go-to person when it comes to monitoring
inventory levels of printing and supply goods.
A long-time Unisource employee, Brenda
recently celebrated her 25th anniversary with
the company. She oversees Winnipeg,
Regina, Saskatoon, Calgary and Edmonton
together with her team of five. With two team
members based in Winnipeg, one in
Saskatoon and two in Calgary, all report to
Brenda and work to keep items in stock.
“I make sure the forecasting is correct,”
notes Brenda. “I love the analytical work, the
numbers.”
The Winnipeg resident first started with
Unisource working in Customer Service in
Regina. She then moved on to inventory and
later to purchasing before settling into her
role as Regional Inventory Manager, Prairies
Region.
When not at work, which she admits is “a
large part of my life”, Brenda enjoys curling,
reading and spending time with her
grandchildren.
For Diane Savoy, the only constant is
change. That’s because her role as Unisource
Canada Marketing Services, Fine Paper Team
Leader, has her changing prices for all paper
products.
Diane constantly receives price updates
on paper, sends the information out in the
form of a memo and then enters the data into
the Unisource system. As Team Leader, she
oversees the work of her seven product
costing co-ordinators.
The work is done in a timely and accurate
manner, with prices posted on the Unisource
website’s mainframe, allowing customers to
purchase products at updated prices.
In her current role for the past four years,
2
Brenda Kardynal
Diane Savoy
Unisource Canada
Regional Inventory
Manager
Unisource Canada
Marketing Services,
Fine Paper Team Leader
Diane loves the fact that “I’m always learning
something.”
“It’s a fast pace,” she adds.
When not working, Diane enjoys spending
time with her husband and two daughters,
traveling and dining out.
www.unisource.ca
Timely bill payments are key to increased savings
Growing your business can involve the
purchase of big-ticket items.
As a specialist in leasing and equipment,
Unisource Canada Customer Financing Coordinator, Doina Toma, assists in all aspects
of this important part of business
development.
A leasing provider's first step when
reviewing and approving a credit request is
to look at the applicant's credit history.
“Every time a company needs to acquire
new equipment, it needs a healthy credit
history. Managers should be aware of their
company’s standing,” noted Ms. Toma.
A company’s credit rating can be accessed
from Dun & Bradstreet or Equifax Canada.
In fact, a company should check its credit
rating every six months, she added.
For small to medium companies, it’s
important to establish a good credit history.
Responsible use of credit is better than no
credit history at all. It’s also wise to
periodically calculate the debt/equity ratio,
just as an analyst would.
Some companies, run by risk-averse
executives, eventually face the problem of
not having a credit history. “It can be a very
good company, but there isn’t enough credit
information,” explains Ms. Toma. This can
impact a company’s plan to purchase or
lease big ticket items such as equipment.
For companies ready to lease new
equipment, it’s usually a good idea to
establish a pre-authorized payment plan to
save on operational costs. This ensures
payments are not missed.
When working on acquiring immediate
savings for your business, Ms. Toma,
together with Barbara Forbes, Unisource
Canada Credit Manager, BC Region,
recommends the following:
with bad credit references or late
payment fees.
• Consolidate leases by contacting one
leasing company to investigate this
possibility.
• Try to purchase products in bulk to get
volume discounts and avoid
disproportionate freight and handling
charges usually associated with small
orders.
“Efficiency and productivity reflects on
Return on Investment,” said Ms. Toma.
Good supplier relationships are extremely
important to small and medium sized
business, agreed Ms. Forbes.
“Trade references can be the largest
source of short-term financing for smaller
firms, so it is essential that they earn the
confidence of their suppliers by paying
within their credit terms. Trade credit can be
equally, if not more, important than bank
credit to a small business, as most of your
suppliers will have a better understanding of
your industry and will want to grow with
your business. Respecting credit terms is
key to ensuring good references within the
trade,” she added.
In fact, typical questions a supplier would
ask to obtain a trade credit reference
include: Is the account current?; Is it 30, 60
or 90 days past the credit terms?; and, Has
there been any NSF activity?
• Put in proper procedures so bills do
not go unpaid due to bureaucracy or
procrastination.
• Try to see the “whole picture” of cash
management and synchronize receipts
with payments whenever possible.
• Maintain healthy relationships with
suppliers, negotiate advantageous and
realistic payment terms and try to
respect them so you won’t be penalized
www.unisourcedesign.ca
3
Suppliers able to provide quick delivery
are important allies to the small and
medium-sized business. This allows them to
carry smaller inventories, reducing funds tied
up in stored items.
Summary billing may also be an option
for businesses with multiple locations
seeking to save administrative costs. It is a
good tool for ensuring that no invoices are
overlooked and that bills are paid within the
required time frames.
Summary billing also reduces paperwork;
maintains consistent payment schedules;
maintains good cash flow; and helps ensure
the customer enjoys good credit standing.
Web payments and ETF payments, now
very prevalent, allow for savings of time and
money. By analyzing how products and
services are purchased and adopting
strategic sourcing, businesses may realize
double-digit savings. Strengthening ties with
suppliers results in best quality products and
customer service.
At Unisource, we encourage customers to
set up web accounts so they may place
orders online, view their account, and even
print copies of invoices, saving time and
money.
Please visit www.unisource.ca, to set up
and apply for an online account.
Available in Side Press or Down Press.
End User Challenges
Rubbermaid® Solutions
1. Splashing water when moving bucket.
1. Patented WaveBrake™ reduces splashing.
2. Water getting dirty too quickly / cross
contamination.
2. Bucket in bucket dual water system.
3. Workers Compensation claims due to
back strain.
3. Dirty Water Bucket:
Light weight to lift out.
4. Workers Compensation Claims due to
repetitive use syndrome from wringing.
4. 25% More efficient wringer, ergonomic
bend to wringer handle.
5. Bucket storage in small janitor’s closet.
5. Buckets nest, even with casters attached.
Five Colours Available: Yellow, Brown, Red, Green or Blue.
Optional Dirty Water Bucket is available in Red or Yellow.
Contact your
Unisource Representative
for more information.
The Mini-Max Solution
The fastest growing Jumbo Tissue
format Mini-mizes space requirements
while Maxi-mizing capacity.
Mini-Max holds the equivalent 8 standard rolls
of bathroom tissue. Great for smaller washrooms.
Mini-Max is durable and reliable. Suitable for
high traffic use, Mini-Max reduces labour costs,
pilferage and stub-roll waste. With Mini-Max,
the maintenance staff will have more time to
complete higher priority tasks, with increased
client satisfaction.
For more information contact 1-800-665-5610 or visit our web site at www.scottpaper.ca
4
www.unisource.ca
Demystifying the decision to lease or purchase
Whether you’re getting a new business
up and running or staying competitive in
your industry, acquiring or upgrading
equipment can recoup your investment
through expanded sales and the ability to
meet a wider range of customer needs. New
equipment can also save time and money
with increased efficiency. Deciding to lease
or purchase can be as important as choosing
the right equipment and there are a number
of factors to consider.
What is the life expectancy of the
equipment?
When choosing equipment, consider the
needs of your company and your customers,
technological development in your industry
and market demand. Unisource works
closely with a number of manufacturers and
can help you understand those options as
well as the current marketplace.
Lease: If technology in your industry is
rapidly changing, you may want to consider
a short-term lease or a lease that allows you
to upgrade equipment and rollover the
financing to a new contract.
Most machinery also has an optimum
performance period that can be affected by
the demands placed on it: high volume use,
the number of shifts running the equipment
and downtime. Understand how your
company will use this machinery and
calculate for business growth.
Purchase: If technology is relatively
stable and/or equipment can be upgraded
with new software or other machine parts to
accommodate expansion, you may prefer to
purchase or lease-to-own. Depreciation of
these assets, trade-in value and equipment
disposal costs should be factored into this
long-term investment.
What is the best fit for my company’s
financial needs?
“You should always discuss the details of
any major purchase or financing package
with your accountant. They have all the
information about your company,”
recommends Tony Mamone, Assistant Vice
President of Sales and Marketing with De
Lage Landen Financial Services Canada
(DLL). The company provides financing for
Unisource customers in the paper, print,
packaging, food service and maintenance
www.unisourcedesign.ca
industries. DLL also provides financing for
manufacturers, vendors and distributors in 20
countries around the world.
Tax advantages are one of the primary
considerations when deciding to purchase or
lease, according to Mamone.
Lease: No down payment and a fixed
payment schedule allows for:
• Predictable budgeting
• Protection against inflation and shifting
market rates
• Cash flow prediction
• Conservation of alternate sources of
funding such as lines of credit or bank
loans.
A company may approve a lease more
quickly than funds for a capital purchase.
Purchase: Available capital and/or the
need to invest the cash balance for tax
purposes make purchasing a good option.
Companies or agencies that are governmentfunded or governed by a board of directors
may be required to use the bulk of their
budget during the current fiscal year in order
to apply for the same level or higher funding
the next year. Overall cost may also be lower.
What financing options are available?
If you don’t have available capital,
ownership may still be one of the options to
consider when leasing.
$10 End: This capital lease gives you the
option to buyout the equipment at a predetermined price at end of term. It may not
offer the same tax benefits as an operating
lease but allows you to offset equipment
purchase with revenue generated.
True Operating Leases: Equipment is
being rented during its “useful” life without
the intent to purchase. Operating leases may
be 100% deductible and usually offers the
lowest monthly payments since they do not
include buyout.
Fair Market Leases: This operating lease
allows you to return the equipment at end of
term, re-lease or purchase for fair market
value.
Stretch Leases: Average leases range
from 24 to 66 months, according to Mamone.
Business growth, market uncertainty or a
new development may make a customer
reluctant to commit to a five-year lease. At
month 25, the customer may wish to extend
the lease now that he has better evaluated
5
equipment performance and business growth
for his company or industry.
Bundled with Consumables: Offset
lease equipment costs by negotiating longer
term consumable acquisition.
Are any service or repair costs
covered?
Service and repair arrangements are
usually made with the manufacturer.
Warranties apply whether you purchase or
lease.
What information do I need to provide
the financing company?
Mamone says the company looks at
credit history including previous leasing
arrangements with DLL, your customer
relationship with Unisource and any
business projections. Approval may be
made anytime, from minutes after the
application to within days, depending on
the complexity of the lease.
These are general explanations of leasing
principles only. Detailed information on
leasing packages is available through DLL
and Unisource. For the benefits to your
company, you should always consult your
accountant.
Top 5 reasons for Leasing
1. The need to rent new equipment
short-term or with the ability to
upgrade or own at lease end.
2. No down payment.
3. Tax advantages for all or portion of
the lease.
4. Free up cash flow and conserve
alternate funding such as lines of
credit.
5. Fixed monthly payments allow
budgeting, protect against inflation
and balance payment with revenue
generated.
Top 5 reasons to Purchase
1. Acquire new equipment as a longterm investment.
2. Available capital.
3. Tax advantages of ownership.
4. Need to invest cash balance or satisfy
budget projections for continued
funding or subsidy.
5. Reduced overall cost.
One Source. Many Solutions.
Printer profitability tied to
increased ROI for your customer
As the printing industry faces increased
materials costs for plates, film, paper and ink
as well as rising energy costs for in-house
production, printers are shifting their focus
from cost-per-piece to the overall Return-onInvestment (ROI) it can offer its customers.
The scarcity of litho-grade aluminum
used to make printing plates, the increased
price of silver used in film’s substrate and the
associated energy costs involved in their
extraction, manufacturing and shipping as
well as similarly affected production costs for
paper and ink have required manufacturers
to share some of these costs through price
increases.
Faced with the need to increase prices
for their own customers in an already
competitive market, printers can differentiate
their services through excellent performance,
enhanced customer service and production
of materials that get results.
Using the printers’ expertise and ROI to
convert their value-add into objective
numbers, they can work together with
customers to determine the best investment
for their budget.
Some printers continue to offer their
customers a competitive edge through
traditional print services with a wide range of
products from postcards to full-scale
billboards delivered with greater flexibility,
fast turnaround, and high-end colour.
Variable print used together with a wellmanaged database and integrated campaign
(web, print and other promotions) can more
than double the return of traditional print.
Others have repositioned themselves by
expanding into full-service marketing
companies, who can support a campaign
from concept through execution to
evaluating and building on its success. This
one-stop-shop approach offers the customer
valuable savings in time and consistent
project management that a client just won’t
get by bidding out every print job.
From a print specifier perspective, says
Susan Wittner, Agfa’s North American
Marketing Director of Agfa Graphics, “If a
company offers me an improved ROI, they’ve
got my attention.” A supplier to both
the graphics and healthcare industries
worldwide, in February, Agfa implemented a
6-10% increase to the price of its film, paper,
plates and chemistry products in Canada as
part of a staggered increase in North America
and Mexico.
“Every company has its own formula for
determining ROI,” she explained, which
consider such factors as cost-in-use, Total
Cost of Ownership (TCO) and increased
efficiency through Activity-Based Costing
(ABC).
Cost-in-use is an analysis that allows
printers to determine their total cost for using
a particular product. “For example, the price
per square metre for a plate is only a piece
of the equation.
One must consider
chemistry, operating utilities, maintenance,
the cost for processing equipment and the
space it occupies at the plant,” said Wittner.
Total Costs of Ownership or Operation
(TCO) includes the capital purchase of
equipment and software, production costs
and staff training, maintenance and repair
including any delays when a machine is outof-service, and depreciation with time and
regular use.
6
ABC is “the technique of looking at all
activities required to sell, produce and
deliver a job which can help to segment
various customers and the total costs
required to serve each customer or customer
segment,” explains Wittner.
Some companies such as major players
like Wendy’s or Coca Cola will not commit
any money to a campaign without first fully
investigating the ROI, according to Wittner.
Their marketing expenditures come under
scrutiny to deliver a specific return, which
must then be measured. This is good news
for printers who can deliver the timing, good
execution and finishing touches that make a
campaign more impactful, she suggests.
Annual trade events such as Print 05 last
September in Chicago and Graphics Canada
in November provide industry suppliers with
the opportunity to showcase new products
and technologies. The roster also included
seminars addressing how printers can sell the
value of their services to ask for the
necessary increases that will enable them to
continue delivering superior service.
continued on page 12...
www.unisource.ca
wide-format inkjet media
Kodak Wide-Format Inkjet Media
Lead the pack with Kodak Media.
No Limits.
Kodak Universal Backlit Film/8 mil
Kodak Production Photographic Paper/170 g (glossy & satin)
Kodak Production Backlit Film/7 mil
Kodak Production Reverse Print Backlit Film/5 mil
Kodak Production Self-Adhesive Poly Poster Plus/6 mil (glossy & satin)
Kodak Production Removable Vinyl/6 mil (glossy & satin)
Now you can benefit from Kodak’s industry-leading colours technology and
Performance Guarantee for every application and price. Kodak’s production
line of media allows you to produce permanent or removable self-adhesive
graphics, front print or reverse print backlit displays, as well as posters,
photographs and signs all at attractive prices. Production media is designed to give you
vibrant, rich colours for every application.
© Eastman Kodak Company, 2005. Kodak is a
trademark of Eastman Kodak Company.
Find the wide-format media solution
that’s right for you at www.kodakmedia.com
Do you spend too much for
your dirty shop towel?
Kimberly-Clark Professional
offers you the perfect solution
for your cleaning tasks in the
PRINTING INDUSTRY.
Take the WypAll X Wiper Challenge
Replace your cloth rags or shop towels for 60 days
and we’ll guarantee you a minimum saving of 10%.
We’ll guarantee it!
For more information, please visit our website
at www.kcprofessional.com
® Registered Trademark and * Trademark of Kimberly-Clark Worldwide, Inc.
or its affiliates. © 2006 KCWW. All Rights Reserved. I8140 KCPM-56
www.unisourcedesign.ca
7
Unisource. Paper and a whole lot more.
Boast unique advantages with colour
management software
Working on a print project encompasses
many steps. From creating a winning design
and writing crisp content, the final step at the
printer’s shop is where the project can be
raised to exciting levels of success. That’s
because correct colours – in logos as well as
all design elements - are crucial to the
finished product.
According to GMG Americas president,
James Summers, matching expectations
between what is anticipated and what is
printed is vital to pleasing customers, setting
your services apart from other printers and
ensuring you are paid for your hard work.
GMG Color Proof software closes the colour
gap which may sometimes exist between the
designer and the printer.
With most designers selecting colours and
gauging them on screen, then proofing them
on uncalibrated laser or ink-jets, “the
likelihood of what they see on the screen or
that proof matching the results on your
printing press is very low,” Mr. Summers
explained.
Colour differences, he added, are due to
many uncontrolled variables such as the
printer and its settings, the inks and paper
used and even the setting on the computer
monitor. Page design software such as
Adobe PageMaker or QuarkXPress can also
vary colour results.
“There is a very, very broad range of
variables that can affect the result,” noted Mr.
Summers.
GMG Color Proof software allows people
to produce contract-quality proofs from an
ink-jet printer that are accurate, consistent
and match the printing press. It does so
through controlling the calibration of the ink
jet printer, fingerprinting the capabilities of
the press and matching the results between
them.
In fact, the average difference
between the colours printed and what is
expected is often less than 0.5 delta E, less
difference than the human eye can detect,
thanks to GMG software. This reduces the
likelihood of expensive re-prints and
unhappy customers.
8
“The two things needed from a proof are
accuracy and repeatability,” he emphasized.
Accuracy means the proof colours match the
press. Repeatability means the results stay
this way day-to-day, year-to-year.
Setting up and using the system is far
easier today as well. In the past, it may have
taken printers up to two days to build colour
profiles to help this colour match. Now, it
takes as little as four hours to build a colour
profile that can produce exact results with
each print project.
This helps printers to become more
flexible when dealing with various
companies.
“A customer may deal with six different ad
agencies with each proofing colour
differently. Now you can guarantee if they’re
happy with the proof that you can match it
on the printing press,” said Mr. Summers.
“The proof is no longer a ‘best guess’; it is the
contract.”
For printers using a modern, digital, halftone thermal proofing process, selling for
$150,000 USD, the actual proof may cost $10
per square foot. With the GMG systems,
starting at $10,000 USD, the proof is
produced for $2.50 per square foot. Less
manpower and time is needed, the new
system cost is 75% less than previous costs
and on-going operational and consumables
costs are a fraction of the traditional systems.
The most dramatic aspect of the GMG system
is it is significantly more accurate and
repeatable than the traditional system. The
net result is that you can reduce costs and
improve speed and accuracy at the same
time.
Founded in 1984, GMG is a privately
owned software company based in
Tuebingen, Germany, with local offices
worldwide (www.gmgcolor.com).
It
developed its software package to manage
colour in 1990, specializing in high-end
colour management for the graphic arts
industry. Today, more than 6,000 systems
are in use by ad agencies, publishers,
prepress houses, and printers using every
type of printing process.
www.unisource.ca
Focus on workplace wellness to
reduce costs, increase efficiency
With most of us spending up to 60% of
our day at work, it makes perfect sense for
employers to increase their focus on
workplace wellness. That’s why many
companies now promote a variety of
methods to maintain health and wellness –
from lunch and learns to classes on fitness
and nutrition.
Recently, however, FedEx Custom Critical
targeted a new approach to an old workplace
dilemma – cutting the number of employee
sick days. It distributed PURELL® Hand
Sanitizer to a select group of employees and
reduced absenteeism by 21%.
The company’s Human Resources
department, working with GOJO Industries
Inc., initiated a one-year research study. It
divided employees into an experimental
group and a control group, providing
PURELL to each team member in the
experimental group. The experimental
group members were also educated on how
to avoid germs and implement good hand
hygiene. This was encouraged by placing
PURELL on desktops and in break and copy
rooms.
Thanks to the positive results, FedEx
Custom Critical provides PURELL to each
new employee and has, in fact, incorporated
its use into the company’s corporate culture.
“By enabling our customers to reduce the
number of unplanned absences due to
illnesses caused by germs, we’re helping
businesses save significant amounts of
money,” said Carolyn Christian, Market
Development Director, PURELL Program for
Workplace Wellness, at GOJO. “This is a
simple, easy-to-implement and affordable
program for businesses — it just makes so
much sense.”
PURELL is recommended for use anytime,
but especially when access to soap and water
is limited.
When companies seek to lower
absenteeism and increase productivity,
Health Canada recommends focusing on the
following key factors:
www.unisourcedesign.ca
The physical environment: a healthy,
well-designed and safe place to work.
The psychosocial environment: a culture
that supports employee well being and
effective work practices.
Personal resources: having control over
your work and health and being able to cope
with stress and knowing that there is support
available when needed.
Personal health practices: opportunities to
make healthy lifestyle choices that support
long-term health and well being.
As more companies realize the benefits of
emphasizing workplace wellness, the
number of firms boasting Employee
Assistance Programs (EAP) is steadily
increasing. That’s because companies with
EAPs report impressive results in reducing
employee absenteeism and disability costs, as
well as increasing staff retention and
productivity.
Companies interested in learning more
about the many methods of incorporating
workplace wellness into their corporate
culture may consider attending the 2006
Health, Work and Wellness (HWW)
Conference in Vancouver, British Columbia.
Scheduled for October 12 to 14, 2006, at
9
the Westin Bayshore Hotel, the conference
provides tools and resources to create a
healthier, more productive workplace. Top
researchers and practitioners offer advice and
case studies on organizational health
strategies across Canada and internationally.
Organized by the HWW Conference
Management Team, the primary goal is to
foster the development of healthy
workplaces in Canada. The team is also
dedicated to providing Canadian businesses
with access to researchers, practitioners,
successful
influencers,
educational
opportunities, tools and resources in the field
of organizational health.
For more information visit
www.healthworkandwellness.com
One call does it all.
Total Procurement Calculator (TPC)
saves time and money
The formula breaks down the cost of
acquisition and possession of inventory to
show, in concrete terms, the real cost of
handling and maintaining products on the
warehouse floor.
Acquisition includes such factors as the
total number of suppliers, the number,
frequency and cost of issuing purchase
orders. Gustyn emphasizes the potential
administrative savings in order processing
alone: “Each purchase order (P.O.) may cost
you $75 (on average) to issue and then you
multiply that by the number of times you
make a purchase.” Using a single source
supplier allows you to issue fewer P.O.s and
ensure uniform supplier performance.
Part of the cost of possession is a 2%
carrying charge (considered industry
standard) which factors in total storage costs
including property taxes and insurance,
product handling as well as obsolescence
and depreciation of their value.
Unisource’s Just-in-Time (JIT) delivery
approach allows you to meet customer
demand while reducing the amount of
dedicated warehouse floor space as well as
the risk of spoilage for time-sensitive
products.
The cost of acquisition plus the cost of
possession equals the total cost of
procurement, when you reduce the number
Smart supply chain and inventory
management practices offer companies
opportunity to increase savings and
efficiency. Capital that was once used to
maintain inventory can now be reinvested in
the bank or other ventures that enable your
business to grow.
By using a single source supplier to
purchase a wide range of products, you
reduce the time, money and staff it takes to
source from multiple suppliers and process
orders.
Andrew Gustyn, Unisource Canada
Marketing Manager, Packaging, uses the
analogy of a supermarket to explain how the
concept works: “One option is to go to five
or six local vendors: fruit store, bakery,
cheese store, butcher and ice cream shop to
buy your groceries. Or you can go to a
supermarket and buy everything in one
place. It’s all about convenience and savings
in fulfilling all your supply needs with one
source.”
Gustyn developed Unisource’s Total
Procurement Costs (TPC) calculator for the
Canadian market. Adapted from the U.S.
model used by the company, this internal
costing tool allows sales representatives and
customers to work together to assess current
spending and identify potential savings in the
supply chain.
Cost VS. Price Iceberg
Tracking Total Cost – The 12 Cost Drivers
The visible cost
is only a part of
the solution
Product
Price
Regulatory
Compliance
Labour
Cost
Vendor
Management
Order
Processing
&
Receiving
Inventory
Investment
&
Management
Risk
Management
Environmental
Impact & Waste
Management
Safety, Health
& Hygeine
Training
&
Education
Product
Performance
&
Productivity
By assisting our
customers with all
the cost drivers,
we can delvier
solutions that
achieve the
lowest total cost
of suppliers you can significantly reduce your
annual spending. Using the customer’s
purchasing patterns as a basis for comparison,
the sales representative provides a list of all
the items Unisource can potentially supply
and recalculates the figure with a single
source supplier to demonstrate the potential
savings.
While the process does look at purchasing
patterns, it’s not a forecasting tool, adds
Gustyn. With the JIT approach it can,
however, be used to set up a more efficient
delivery system and manage inventory
liabilities.
When you purchase through a single
source such as a supermarket, there is an
expectation that the larger volume purchases
driven by the single source supplier will
result in lower pricing. Although this can be
often the case, it should not override the
primary benefit of operational expense
savings, cautions Gustyn.
This approach provides a better
alternative than purchasing “cheaper” items
as a means to save money. When you don’t
deliver the high quality products or services
your customers expect, the real cost to
business is not worth any initial discount.
Some companies may even delegate a
portion of their inventory management to
Unisource for additional savings in time,
money and the energy of personnel. In
smaller companies where staff may already
be multi-tasking, this could be an especially
valuable service that allows them to focus on
business.
One of the greatest benefits of the TPC
process is that it also gives Unisource a
greater understanding of the customer’s
issues, explains Gustyn.
For more information on this process
and tool, contact your Unisource sales
representative.
Technical
&
Application Support
10
www.unisource.ca
SEAL EP42
You can transform any image
into a vibrant graphic
with SEAL finishing products
•
Enhance colour
•
Increase value
•
Protect against abrasion or environmental
influences
•
Boost special effects or textures
Versatile and easy to use, the EP42 is designed for fast hot
or cold operation and is ideal for producing a wide variety of
top quality applications up to 42 inches wide.
Indoor Displays
Rigid Outdoor Displays
Flexible Indoor Displays
Floor Graphics
Backlit Displays
Pop-Up Displays
Inkjet Media and Textiles
Create exciting graphics and displays with the SEAL range of
solutions to suit almost every type of print imaginable.
Choose from inkjet printable vinyls, films and fabrics for
printing with many different ink types including dye, pigment,
solvent, eco-solvent and UV curable.
Inkjet Textiles New! Inkjet Light and Heavy banner fabrics
offer excellent colour reproduction and outstanding
performance for creating hanging or flying banners, tensioned
fabric displays, banner stands, pop-up exhibits and more.
Print Mount Metal-X™ New! The ultimate block-out
mounting adhesive that features a polypropylene carrier with
a permanent acrylic adhesive that contains a special
“metallized” layer to prevent bleed through and colour shift
when mounting to dark, coloured or translucent substrates.
For a complete listing
of Seal’s entire offering, visit
www.sealgraphics.com
or
call your Unisource Canada, Inc.
Wide Format Salesperson
Seal Finishing Selector swatch books
are now available.
We’ve got you covered.
When should price take second
questions, place to product effectiveness?
If you have
we’ll supply the
answers
Q: How does Unisource Canada take on a
new supplier?
A: Every new supplier is required to meet our
policies for price notification, duty compliance,
warranty and many other issues. Our Supplier
Relations group ensures only compliant
suppliers are approved, so customers are
protected and expectations met.
Q: Does Unisource Canada have a Corporate
Social Responsibility (CSR) Statement?
A: Yes, Unisource Canada has a Corporate
Social Responsibility (CSR) Statement. It is:
Unisource Canada, Inc. is committed to
conducting our business affairs in a manner
that ensures we meet and exceed our
Corporate Social Responsibility guidelines.
These guidelines include:
• Ensuring we provide a safe and secure
workplace for our employees.
• Offering our employees opportunity for
training, development and advancement.
• Challenging our suppliers to develop and
communicate their own CSR and
environmental policies.
• Ensuring we offer wherever possible
products options to our customer that are
environmentally friendly.
• To support charitable activity in the
communities in which we operate.
Q: How does Unisource Canada, Inc. reduce
returns and adjustments?
A: Unisource Canada reduces returns and
adjustments through the online, e-commerce
solutions and EDI. Customers can forward
their orders electronically. Information is
delivered directly into our system - avoiding
any potential for error when orders are
re-keyed.
Running a business means your day is
filled with making decisions. From
purchasing the right products to selecting the
best services, it’s important to consider all
factors.
But when should you make prices
secondary in the decision making process?
Experts at Day International, Chemical
Products Division state that price should
come second to product effectiveness as a
factor in the buying decision.
At Day International, they know that the
cost of products they supply to printers for
any given job is usually a small fraction of the
total cost to produce a project. In fact, it’s
usually less than 1/2 % of the overall job cost.
That’s why price is not always the main
issue for printers who choose Day
International as their supplier for its offset,
flexographic and digital printing products.
“Price of pressroom consumables is
important, but it doesn’t have a significant
impact on the financial results of the
printer,” explained Jeffrey Pieper, Senior
Vice President and General Manager,
Day Chemical Products Division. “The
performance of our products has a far more
material impact on the profitability of a
printer,” he added.
Also important is considering the per unit
price and consumption. Even if the individual
unit price is higher, printers may end up
actually spending less. For example, one
Day International client purchased a more
concentrated product, resulting in lower
dosages, cutting consumption by 32%. Even
though the product was 20% more expensive
than competitors – on a per unit price basis,
savings were still substantial.
“We ensure good print performance so
good print quality is assured,” added Mr.
Pieper.
Day International, established in 1905,
designs, manufactures and markets
engineered, consumable products used in
offset, flexographic and digital printing,
textile manufacturing and corrugated paper
converting.
Printer profitablity ...continued from page 6
One of the improved products Agfa offers
is the Sublima screening technology used
with Computer-to-Plate systems (CtP) for
commercial
print,
packaging
and
newspapers. Executed in the RIP (Raster
Imaging Processor), this software governs the
way the microdots are laid down in print and
web applications. With more subtle
gradations of colour, enhanced highlights and
shadows, this technology can simulate
realistic flesh tones and offers obvious
advantages for advertising as well as
magazine production.
To decide which solutions are appropriate
for their business, printers should plan for
both the best and worst case scenarios. They
should look at cycles of production with
established clients and potential growth with
new ones, consider which technologies best
match their requirements and be attuned to
any market shifts such as the increased
consumer demand for ROI.
12
“When we talk with end users together
with ideal partners such as Unisource, we can
help them identify how to position their own
investment,” says Wittner.
Making smart decisions to bring your
company and your customers increased ROI
may require more thought in this competitive
market, but will reward you with greater
customer loyalty and satisfaction, a sure
formula for business excellence and growth.
The price change was necessary, explains
Wittner, in order for Agfa to continue
investing in research and development. By
producing more sophisticated and efficient
products, they hope to support printers
satisfying market demand for greater ROI.
The company also provides Computer-toPlate (CtP) systems, screening technologies,
enterprise software and ink jet digital printing
solutions.
www.unisource.ca
performance counts. value pays.
And, Day delivers!
• The right printing blanket can hide press imperfections
and reduce startup and run waste.
• The right fountain solution can reduce total usage and
reduce paper waste.
• The right web conditioner can reduce usage and
reduce waste.
• All of it, SAVES YOU MONEY!
If you want to optimize performance and quality, the right
choice is Day printing blankets and Varn chemistry –
high performance products that save you money. Let
us show you how. Contact your Unisource or Day
To learn more about Day’s leading brand
of press chemistry and printing blankets,
visit us at www.dayintl.com
www.unisourcedesign.ca
International sales representative today.
13
One Name, One Vision, One Source.
Automation increases productivity while saving money
Using automated equipment together with
the right products can increase productivity
with a significant savings in time, materials
and labour costs.
Robert Karstulovich, Regional Sales
Manager for Central Canada at Orion
Packaging, has been working in this industry
for 30 years. Orion is a leading manufacturer
of industrial stretch wrapping technology,
whose design, manufacturing and R&D
departments in Laval, Quebec produce a
wide variety of high-quality stretch
packaging systems.
Automated pallet stretch wrapping
increases film stretch and reduces the task to
an operation that takes less than a minute. “If
a roll of film costs $55 and includes 6,000
feet, when you stretch it 260% that’s 21,600
feet worth of film,” said Karstulovich,
emphasizing recent price increases for this
petroleum-based product. Compared to
stretch wrapping manually (by hand) or with
a lower performance semi-automatic
machine, automatic stretch wrappers can
save customers up to 70% of their stretch film
costs annually.
Using a fully automated rotary tower
system, a bottled water company saved the
cost of two people per day. Loaded by
conveyor belt, the pallet load sits under the
tower for automatic wrapping, a secure
option for unstable beverage product.
Automation protects the product and
workers in the supply chain. The heavy 10
Litre water jugs are piled 4 to 5 high on a
pallet for wrapping and large redistributors
such as Wal-Mart or Loblaws hoist pallet
loads 60 feet in the air for condensed
warehouse storage. “You don’t want that
product coming down,” said Karstulovich.
“With any liquid product,” he added,
“when one jug is damaged, the whole load is
rejected.” Salvaging product is costly and
time-consuming.
Non-proprietary parts also offer Unisource
customers convenience. “If a customer is
using our wrapper in Medicine Hat, he can
get replacement parts locally.” With the
current strength of the dollar, Canadian
manufacturers can remain competitive with
efficient packaging, concluded Karstulovich.
Automated case sealing improves
productivity and cosmetic appearance while
reducing material costs, maintenance and
tampering.
“A machine can seal cases 8-10 times
faster than manual taping,” said Michael
Maguire, Intertape Polymer’s Group Product
Manager overseeing Interpack packaging
systems for pressure sensitive and wateractivated tapes.
Automated case sealing systems provide a
consistent, quality tape application with
uniform tape leg lengths and wipe down
pressure always at the center of the case to
avoid material waste such as double sealing
or use of wider tapes.
“Any company who invests in automatic
case packing must invest in automated case
sealing,” he said, suggesting the ratio of case
packing to sealing is “one of the most
overlooked areas. If you are packing 4 gallon
bottles of water, it takes less time to pack the
case than to fold the top flaps and seal the
case. You can double production by
automating the flap folding and case sealing
rather than investing in manpower.”
New methods of automating wateractivated carton sealing tape through
improved adhesive and mechanical
technology streamlined this secure method.
Productivity gains can provide improved
package inspection in such markets as
pharmaceuticals, clothing and fulfillment.
Intertape offers creative efficient solutions
for different types of packaging. Maguire
described the challenge to speed up case
packing for a soft drink manufacturer that
switched to bliss style cases. Bliss style cases
feature a solid bottom and unsurpassed
stacking strength, they incorporate a threepiece design allowing various materials to be
used within a single case, including both
wood and plastic end panels. Providing
superior product protection, bliss style cases
14
are ideally suited for products of heavier
weight, where top to bottom case strength is
critical to enable efficient palletization.
As bliss style cases have either no minor
flaps or no top flaps at all, sealing them
required a technology different from
traditional hot melt glue as well as desired
high line speeds eliminated water-activated
tape. Intertape developed a tapehead for
pressure-sensitive
tape that allowed
to process cases
at over 250 feet
a minute.
The use of recycled packaging materials,
challenging environments and specialized
products have all required technological
adaptation for the Packaging Industry,
according to Mike Anderson, Learning and
Development Trainer in Industrial and
Transportation Business for 3M.
3M was approached by a major computer
manufacturer who needed to ship computer
servers in a carton attached to a wood skid.
Because the item was attached to the skid it
would not allow for the use of a traditional
case sealer which applies tape to both the
top and bottom at the same time. In response
to this unusual request, 3M provided a
modified 3M Matic Random Case Sealer. A
random case sealer seals multiple cases with
tape even though they may not be of uniform
dimension. The system enabled the line to
handle these cartons without disrupting the
high speed packaging line. In the end the
customer was able to replace 10 manual
machines and reduce employee headcount
on the line from 12 down to 3. This resulted
in the customer saving over $27,000 annually
in labour expenditures.
www.unisource.ca
3M-Matic™
Case Sealers
• Improve Productivity
• Reduce Expenses
• Eliminate Bottlenecks
3M Industrial Adhesives & Tapes Division has been in the Case Sealing equipment business for more than 25 years and is
the market leader with over 50,000 units placed. Each 3M-Matic™ case sealer model features a compact, functional,
industrial design and is built tough to provide years of dependable performance. The semi-automatic 3M-Matic™ 110A
Adjustable Case Sealer is designed to increase productivity in smaller case sealing operations. All 3M case sealers are built
with the demands of global business in mind.
3M and 3M-Matic are trademarks of 3M. Used under license in Canada. © 3M 2006
Only Orion has the Insta-Thread™,
high-performance powered
prestretch film delivery system
that can save you hundreds,
thousands, even tens of thousands
of dollars a year in stretch film
cost.
Orion's reliable and proven design,
state-of-the-art film force system,
and 260% standard prestretch level
combine to help you get the best
performance and economy from
every foot of stretch film used.
Call Unisource today for more
information on the complete line
of Orion semi- and fully automatic
stretch wrapping systems.
Fight Back With an
Orion Stretch Wrapper
www.unisourcedesign.ca
15
PLEASE E-MAIL OR FAX THIS CARD TODAY FOR YOUR FREE SUBSCRIPTION
Please complete the information below to confirm your personalized, complementary subscription to Solutions,
the UNISOURCE® newsletter and fax this card to 905-771-4141 or scan and e-mail it to [email protected].
If applicable, please include customer ID number (as shown on address label) to allow us to update our Solutions database accurately:
CUSTOMER ID NUMBER: ___________________________
Yes, I wish to receive/continue to receive Solutions FREE
print version
digital format
both
(please provide your e-mail address below)
in English
No, I wish to discontinue receiving Solutions
Send Solutions to the following persons at my organization:
in English
in French
Name: ___________________________________________________
use peel-off label
Title: _____________________________________________________
if available
Company: _________________________________________________
Address: __________________________________________________
City: ______________________ Prov: ______ Postal Code: __________
phone: [
] ___________________________________________
fax: [
] _____________________________________________
e-mail: ___________________________________________________
Type of industry: ____________________________________________
Approximate number of employees: ______________________________
Signature: _________________________________________________
in French
1. Name: _________________________________________________
Title: _____________________________________________________
Address: __________________________________________________
City: ______________________ Prov: ______ Postal Code: __________
e-mail: ___________________________________________________
in English
in French
2. Name: _________________________________________________
Title: _____________________________________________________
Address:___________________________________________________
City: ______________________ Prov: ______ Postal Code: __________
e-mail: ___________________________________________________
All information collected here is used primarily for the distribution of our publications and information pertaining to our publications.
In addition, from time to time we distribute information about products and services that may be of interest. If you do not wish to receive this information please check here:
Distribution Centres
Across Canada
New Westminster
604-520-7500
Prince George
250-563-0348
Victoria
250-652-8344
Calgary
403-250-9199
Edmonton
780-452-2520
Regina
306-721-2999
Saskatoon
306-931-8004
Winnipeg
204-697-0958
Windsor
519-974-4028
London
519-686-5820
Mississauga
905-795-7400
Hensall Circle
905-276-8400
Ottawa
613-247-8170
Montreal
514-345-5500
Quebec City
418-684-3500
Dartmouth
(Atlantic Call Centre)
902-468-6920
St. John’s
709-754-3377
Moncton
506-857-8837
Tell us what you think!
We’d love to hear your feedback on this issue of Solutions.
Please send comments, questions or suggestions to [email protected]
or via mail to the address below. Thank you!
This publication is published solely for information purposes. While Unisource strives to provide accurate information, we assume
no liability for errors or omissions contained in this publication, or for damages arising from the use of published information.
For any clarification, please contact:
Unisource Canada, Inc.
50 East Wilmot Street, Richmond Hill, ON L4B 3Z3
Phone: 905-771-4000
E-mail: [email protected]
Copyright (2004). All rights reserved. No part of this publication may be reproduced, stored or transmitted in any form or
by any means without the prior written permission of the copyright holder.
Printed on Sterling Ultra Gloss Text 60lb.