Partnering for Print Quality and Cost Reduction
Coding and marking shipping cases with high resolution print quality comparable to labels or preprint was the visible benefit that Iconotech provided to a mid-size producer of injection molded utensils. The financial impact was the ongoing cost savings accumulated through significant reduction of packaging costs. Working in a consultative partnership with the customer to analyze all hidden costs of the coding and marking operation, Iconotech helped this company realize savings that resulted in a seven month pay back for the capital equipment.

Replacing Preprinted Cases
With the objective of replacing preprinted cases to reduce packaging costs, the company intially considered high resolution ink jet. This alternative was rejected because it could not achieve the required bar code read rates, and print clarity of the logo and graphics were too inferior to preprint resolution. Labels were clearly too expensive, since the product had a low per-case value. Cost containment and competitiveness were major considertions.

Using Web Site Cost Models
Searching for other alternatives, the company found the interactive cost models on Iconotech's web site. There they were able to compare their costs for preprinted cases against the composite costs of Iconotech's other customers and against various marking alternatives: preprint, hand applied labeling, machine applied labeling, digital case printing. Most importantly, the web site cost calculator drew their attention to all cost components.

Shipping an annual total of 6 million cases per year out of 4 plants, the company used 11 case sizes and 150 part numbers. The multiplicity of preprinted messages resulted in frequent small order quantities of 3-5,000 cases that carried 15 - 40% premiums over their standard cost. Each plant inventoried about $145,000 of preprinted cases and had a $75,000 investment in printing plates with annual plate obsolescence averaging about 20% per year. The cost model analysis available on the web site showed a potential savings of $100,000 per year per plant using Iconotech's DCP-3200 digital case printing system.

Refining the Numbers - Expanding the Solutions
Working together analyzing all costs, Iconotech and the customer projected annual savings of $137,500 in each of its three largest plants through elimination of small order quantities, ongoing accumulation of obsolete cases, replacement of printing plates, substantial reduction of case inventory and freeing up warehouse space. To obtain this savings, the customer installed the off-line DCP-3200 digital case printing system in each location thereby providing just-in-time deliveries of printed boxes to the packaging lines. Taking control of its coding and marking operation in house allowed the customer to print both the generic information and batch specific codes. Print messages could be modified or new ones designed in minutes on a PC using simple label formatting software. Further savings resulted from reduction of the number of case sizes being stocked. The smallest facility is now considering a simplified version of the DCP-3200 designed for lower volume applications. This DCP-3200-EC will provide an additional savings estimated at $50,000 for a company total of $462,000

Further analysis of the customer's needs indicates that certain branded products have sufficient volume to justify purchasing generic boxes from the box manufacturer preprinted with the brand name and logo. The customer may equip some production lines with Iconotech's new in-line Icon-224 digital printer to overprint part number, description and bar code. Print quality will be indistinguishable from either the preprint or the DCP printed messages assuring reliable bar code read rates.

Focusing on Customer Needs
Iconotech subscribes to the philosophy of spending its time on fully evaluating each customer's needs to determine the most cost effective solution. In this regard, building consultative partnerships with customers is the most valuable service it can provide.