The Challenge:
xpedx was contacted by a rather frantic in-plant manager. Management had decided to shut down operations and send all internal printing out to commercial printers. The manager hoped to be able to demonstrate that the current operations were making a valuable contribution to the company.
Objectives
Analysis:
Searching for a life preserver, the in-plant manager hoped xpedx could help forestall the closure of his operations. xpedx found that the in-plant was 31.09% more competitive than the print-for-profit industry. Customers saw value in the operations, seeking out the in-plant for innovative solutions. The staff appeared to be well-trained, and the in-plant's equipment was current. The in-plant also did some work for outside companies.
Several red flags appeared, however. The three-year work volume was decreasing, which increased unit costs. Consultative meetings with customers were often limited to once a year. There was also no digital workflow, and no strategic plan.
Key Improvement:
xpedx recommended the in-plant implement a digital workflow, meet with customers more often to promote their printing services, and partner with outside sources for certain work such as bindery. Most importantly, the manager was encouraged to calculate the in-plant’s competitiveness and communicate that to upper management.
Unfortunately, it was too late. The decision was made and the operations were shut down.
Lesson Learned:
Analyzing your operations and developing a plan for improvements need to be done now.