7 things to consider when buying a digital label press during the days of Covid-19

Elad Zmora and Judy Berlin

When HP Indigo announced the HP Indigo 6000 Digital Press more than a decade ago, digital label printing was a small niche in the label market. Since then it has transformed into a mainstream market with thousands of digital label presses worldwide. The current Covid-19 crisis has reinforced the importance of quicker delivery times along with the ability to produce varied applications due to rapidly changing demands. Using their conventional tools and processes, many analog-only label converters are struggling to meet the demands of this “new normal” and some have already started to reassess their future investments. The pandemic dynamics has magnified already existing mega trends in the label industry including brands’ needs for supply chain agility, sustainability, personalization, brand protection and more. All these are driving a steady and growing interest in digital printing solutions.

Here are 7 things to consider when trading up or purchasing your first digital label press.

1.    Does the press check off all the right boxes?

When purchasing your first digital press or upgrading your one and only digital press, your most pressing desire is to migrate all the short runs away from the analog presses. Naturally, you want the ultimate in versatility, but you also want the best print quality possible to meet the requirements of demanding customers and brands.

2.    Your digital press should be versatile, not a one-trick-pony - especially in times of uncertainty.  No one knows how the corona virus new norm will play out. The one thing we do know is that applications that were once niche, can suddenly become block busters. The best vaccine for a healthy future is agility and versatility. Your digital press should enable you to pivot and rapidly deliver different products.

3.    Service experts within driving distance and a modern service eco system are essential to keep you up and running. The coronavirus crisis has revealed the fragility of the modern supply chain and many are realizing that having a vendor with a local service organization is key. Is the service organization there for you - no matter where you are in the world? With the many travel restrictions around the world, a vendor who has both local and global capabilities is key. Having many boots on the ground with a robust global and local service presence and highly skilled local teams is proving to be more important than ever in order to ensure business continuity especially in unpredictable times. When buying a new press ask your vendor how fast they can bring an expert to your site? Do they have all the spare parts available locally? 

Modern service involves much more then break-fix. It’s a demanding space that requires heavy investments to ensure you can run your operation day in and day out. Your vendor must offer a full ecosystem for self-diagnostics, predictive press care, remote support and one that encourages self-reliance but is also at your side whenever needed. Insist on talking to existing customers to make sure the vendor is indeed capable of delivering high quality service, regardless of the circumstances.

4.  Digital label printing is an exciting and fast-paced world. Make sure your vendor has the knowledge and systems to guide you

Transitioning to digital will involve some degree of a learning curve. Make sure your chosen vendor can walk you through the learning path and provide you with training, not only to operate the press and integrate your workflow but to also build the business insights you need to succeed in terms of variety of applications, materials, and meeting rapid time to market. 

Jumping into new applications often demands plenty of resources both in terms of the press and man-hours of research and development. This can be very challenging with a single digital press fully loaded with jobs. Thus, it is critical to select a vendor with deep experience with numerous applications; a vendor with experience amassed over many years of working with thousands of customers; one that has seen it all and who will work with you to figure it out. Select a vendor who can provide you with all the ‘secret recipes’ and not a vendor that is depending on you to provide the answers and solutions. 

5. Think big or think small?

Although it may be very tempting to start small with a low-end digital press just to get your feet wet, our best advice for a converter who is considering a low-end digital press is to first understand the competition. Will you be able to compete? From our experience, we see two types of successful converters - value players and volume players or some combination of the two. The combination of low volume and low value is a place you should avoid. 

·        Value players are the customers that build their businesses on high value, high margin labels; the ones that involve high-end technology and capabilities. Once you’re an accomplished value player the margins are rewarding. Value can take many forms and shapes: high quality for picky brands, brand protection, unique inks and embellishments, same day delivery, special media and substrates, sustainability certifications, and more.

·        Volume players are the most efficient converters. They invest deeply to maximize the press utilization. Their print volume output is amazing. By optimizing their production processes and using highly efficient presses, they minimize production costs to maximize margins and profits. Understanding the running costs is key. True, a low-end press can initially cost much less than a high-end press, but once you start competing against converters owning  high-end presses, your chances to win will be slim.

6. Your digital journey will stretch beyond short runs

Think about how you envision your digital business. While the journey starts with switching short runs from analog to digital, very soon converters discover a whole new world of digital opportunities. The more advanced your digital solution - the more opportunities will be within reach. Our advice is to do a thorough study of the digital opportunities and the opportunities for automation that it brings. Talk to the vendors, ask for demonstrations and ask to meet with other label converters.  Remember, your digital press should never limit your dreams.

7. Choose the right partner

Technology is always evolving and improving. Make sure you choose a leader that is committed to pushing the envelope in terms of versatility, print quality and productivity; with tools and services that go beyond the press to produce more jobs a day, leveraging workflows that capitalize on the wide adoption of ecommerce and personalization as growing modes of operation. Is the vendor committed to investing heavily in R&D and are they open to adopting the latest breakthrough state-of-the-art systems with an upgrade path that protects your initial investment? Does the vendor have a strong legacy of success in the market and does their success depend on your success? If the vendor is intensely engaged with customers and partners, has a solid user group community and is a leader that is envied in the industry – you are most likely looking at a winner! 

Elad Zmora is HP Indigo label segment product manager, Judy Berlin is responsible for Sales Enablement, Messaging and Marketing at HP Indigo