Welcome to ASK ROCK, a monthly advice column where industry expert Rock LaManna will answer your questions on topics such as: key financials for every business, and how it can lead to profitable organic growth, M&As, strategic alliances, succession plans, and exit strategies. He will also talk about leadership and present family business case studies.
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Dear Rock,
What are some suggestions to make my printing business more efficient?
All too often, printers think they need to generate new business to improve the bottom line. It sure can’t hurt, but you can also streamline your internal processes to boost your profits.
Here are some of the typical ways you can get lean with your operations:
Stop over-producing. Does it drive you crazy to see your production line sitting idle? Do you think it makes sense to “print ahead” and crank out the rest of an order for a customer? It may, but what if the customer cancels the order? You’ll be stuck with a huge inventory, or worse go out of business (it can happen if the order is big enough). Or what if the inventory sits on your shelf, but is damaged when someone moves it to access other print jobs? Many things can go wrong, so be sure to weigh the dangers of getting stuck with a huge inventory compared to loading up on batch printing.
Avoid the waste of waiting. Take a good look at your production line. Is there a lot of lag time during the printing process? Does your line have to wait a long time for an order to be moved from A to B? The “waste of waiting” can be a big draw on your bottom line.
Watch out for defects. Mistakes happen, sure, but are they chronic miscues? Are there continual breakdowns in your processes? Many printers know there are, but they put out fires instead of addressing the systemic breakdowns that are causing the issues. Those little defects can add up to big bucks if you’re not careful.
Reduce your raw component in inventory. Similar to over-producing, you can get sucked into a trap if you buy too much raw component for an upcoming print job. If the client cancels the order or the materials are damaged, you’re stuck.
Do you have any specific issues you see happening in your printing operation? Leave a comment below and I’ll be happy to offer up some ideas on how you can reduce waste and build up your bottom line.
Rock LaManna is the President and CEO of the LaManna Alliance, a business advisory and consulting firm that helps printing owners and CEOs use their company financials to create successful strategies. He blogs regularly on lean operations for printing companies.
