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Reprographic
Systems
2
Background
2.1 Company Information
Since 1969, Reprographic Systems has been supplying printing plates
to the packaging industry. In the past 33 years, the company has
led the way with new technologies and working practices and is now
the largest trade reprographics (repro) house in Ireland with 36
staff working in 7 locations nationally.
The company takes packaging designs from printers and, using these
digital files, makes up printing plates that are sent back to the
printer for production of their clients’ jobs. Though highly
skilled, this process was incredibly labour intensive with plates
being hand-drawn by graphic artists.
In 1992, to keep up with changing market requirements, Reprographic
Systems was one of the first repro houses in Ireland to invest heavily
in digital technology, effectively replacing the old methods with
new, far more efficient ways of working. This investment involved
the purchase of a Digital Pre-Press System – software which
allowed designers to receive files from clients electronically,
work on those files and then send them straight to the factory floor
for production. This new software allowed the company to process
jobs far more efficiently than ever before. At this time, the company
also installed an ISDN line allowing them to receive digital files
from customers in real time (rather than relying on delivery of
a disk).
In 1998, the current management team (supported by ICC Venture Finance)
bought out the then shareholders by way of a Management Buy Out
(MBO). In 2000, the decision was made to introduce the latest Barco
Graphics software to the company – a significant investment
for a small organisation.
Reprographic Systems’ client list, though small (numbering
around 25), holds some of the biggest names in the Irish packaging
industry – Smurfit Corrugated Ireland, Lawson Mardon Superior
and AB Convertors to name but three.
2.2 Market Information
The market for Reprographic Systems’ services was very niche
with a small number of potential clients in Ireland that the organisation
could add to its existing customer base.
The market both for printers and repro houses had changed dramatically
in the past number of years - growth (in size) of printers through
acquisition meant that the number of companies in the sector had
fallen but those that still existed had become more and more powerful
with each merger.
As the number of printers decreased, the competition to win and
retain those clients went up dramatically. This resulted in reduced
margins and a need to provide an even better quality of service
with little or no return. “We didn’t look for price increases
but identified more ways to cut costs – that’s how you
delivered competitive product”, commented Frank Greene, Technical
Manager with Reprographic Systems in Dublin. This was driving companies
not only to invest in technology to reduce costs, but to use this
technology to widen the net and supply services to clients outside
their traditional geographies.
Going Global
Globalisation of large organisations was also driving a change
in the printing and repro sector, with many decisions now being
made on behalf of the smaller regions as part of a centrally controlled
effort. The printing process had, until then, been primarily localised,
with printers and repro houses dealing with clients in their own
regions. With the advent of new technologies, that changed and a
new breed of commerce started to emerge. With companies able to
utilise technologies like the Internet , email and ISDN many of the
old geographic barriers started to disappear.
For example, when printers and repro houses dealt with hard copy
proofs, working with international clients was more difficult, as
the time to get sign off was prohibitive given the requirement for
ever-decreasing lead times. With the introduction of technology,
a proof could be quickly and easily sent to a client for sign-off
anywhere in world. The signed off proof then went into production
and finished plates were sent by courier to any other part of the
world. This all happened within a matter of days – a process
which, in the past, would have taken far longer.
Additionally, this technology change is allowing companies like
Reprographic Systems to work far more seamlessly with premium suppliers
outside of Ireland and resell that service to its clients. If an
electronic file is sent out to a supplier in the UK by lunchtime,
it is quite conceivable that the finished plates could be delivered
back to Dublin by courier the very next morning. Before the sector
started to harness technology, this would have been impossible.
Although this new way of working presented many new opportunities
for Reprographic Systems it also had its downsides. As the prevalence
and acceptance of technology increase, other organisations abroad
position themselves to export services to Ireland, which in turn
increases competition in the marketplace. For companies like Reprographic
Systems, this meant that the ability to look for business outside
of Ireland was not a ‘nice to have’ but something that
could be instrumental to the survival of the business.
An additional issue facing organisations in the sector was the lack
of experienced and well-trained computer operators. As the introduction
of technology increased, so did the knowledge of staff in the sector.
As this happened, more and more emphasis was put on retaining staff
and organisations needed to find new ways of retaining them.
This case outlines how Reprographic Systems successfully implemented
eProofing and eWorking programs to meet the demands of both its
clients and its staff.
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