In today’s competitive climate, every company is under pressure to reduce cost and save money wherever they can. When considering options on using materials and a supplier for your label program, you need to keep in mind that the cheapest material and the cheapest supplier are often not the best option. Remember the goal is to reduce COST and not just price. While they go hand in hand in many cases, with many applications you can end up with a higher total applied cost to your company.
Let’s start with the material selection. I often walk through stores like Home Depot, Lowes, and others where OEMs like to sell their goods. Often I find myself thinking, “that is overkill”, or “don’t they know that will not be visible in a year?”. One of the first ways to reduce cost is to make sure you are using the right material. In the case of overkill situations, I am seeing companies using materials and adhesives that are both expensive and unnecessary. Let me ask you this: If you needed to dig a small hole in your front yard, would you simply grab a shovel or would you rent a Caterpillar backhoe? The answer seems simple, yet when I see some of the material constructions used, I scratch my head. Don’t get me wrong, they work! However, so would a backhoe to dig a hole in your front yard.
Common examples of this would be using a polycarbonate or a Melinex type polyester on your equipment when they are not really needed. Or using a polyester with a laminate when a vinyl or polypropylene will suffice. There are other options that will meet your temperature, fade, adhesions specficiations and still give the aesthetic look your company desires. Also, many people don’t realize there are many other adhesive manufacturers outside of 3M. I will say, I use 3M with many of my customers and they do have the best options in so many applications, however, there are other cost effective option to explore as well.
Now, in terms of the supplier you choose to work with. Over the past 10 years, I have worked with both types of companies: 1) The cheapest price company, 2) The good company who recognizes the value they bring.
I will say there are reasons to work with both. If you have a simple, small program and the application is not complicated, you probably should work with the cheapest price company. However, you must recognize that this will also require some things out of you. Your shipments will often be late, you will often find more errors in production, experience more rejected parts, lower customer service, and often the company is disorganized. They also tend to have poorer credit with their vendors and with this, will tend to delay their production at times. So what I am saying is that if you choose to work with a company that exhibits these characteristics, plan ahead and realize you will be spending more time trying to figure out what is going on with your labels and decals.
If you have a larger program (spending over $50k/year), you will probably want to work with a company who will bring value to the relationship. Some of the things you can expect when you work with a company like this are: 1) Great service – All companies tout this, but I mean going above and beyond normal service. Anticipating needs, quick communication, and real timelines are some of the things you should find. 2) Consistent evaluations on reducing total applied cost for your program – I know this is something I have always tried my best to do for my customers whever I have been. I will say that when I worked for the cheapest price company, it was much harder to do so than when working for a company who consistently brings value. 3) R&D – You have a weird and difficult project, a good company will have people who can help find a real, cost effective solution. 4) Inventory Management – You should be able to set up a Just In Time shipping program with these companies. 5) A willingness to invest and grow with you – Value companies will get warehouses, production equipment, reps, etc. where you need them if you make a commitment to them as well. That’s a true partnership.
This is just a sampling of all the things to look for when evaluating your label programs. I will be writing in more detail on many of these topics in future blog entries. Please feel free to shoot me an email with any questions you may have. tnenov@advancedweb.com
Meet Ted Nenov:
Ted carries over 10 years of successful experience selling product identification solutions, including pressure sensitive labels and decals to his OEM customers. He has worked extensively throughout several industries including Medical, Automotive, Pharmaceutical, Appliance, Industrial and Contract Packaging. He has worked with some of the largest companies in the world, as well as many smaller businesses.
Because of his customer centric philosophy, Ted has ranked at, or near, the top of each sales organization for which he has worked. He brings this a unique approach to each of his customers, and focuses on the best technical solutions to their programs, while lowering total applied costs. He is especially gifted in solving the most difficult of labeling problems.
Ted is married to his wife Sheri and they reside in Chicago, IL. He has a degree in Health and Human Sciences from the University of Buffalo.
