desig.s marketing sproduction fmigraphicsupplychain · therearetwotypicalexecuon...

D E S I G M A R K E T I N G P R O D U C T I O N

FMI Graphic Supply Chain June 9, 2015

Concepts in this document are the property of Sailpointe Crea5ve Group/Federated Group and their agents working with them at this point in 5me. None of the material contained herein may be reproduced, copied, or u5lized in any form or by any means without the specific wriCen authoriza5on from Sailpointe Crea5ve Group/ Federated Group © 2015

How to Leverage Your Graphic Supply Chain to Save Time and Money

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Agenda •  Who is Federated Group and SailPointe?

•  What is Going on with Today’s Graphic Supply Chain (GSC) in Private Brands? •  Impact of January 2018 •  Defini5on of GSC and examples of models •  Poten5al roadblocks, issues and logjams

•  What does Success Look Like in GSC Management?

•  Introduc5on of Panel Guests and Ques5on Preview

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Who is Federated Group and

SailPointe?

Who is Federated Group and

SailPointe? Concepts in this document are the property of Sailpointe Crea5ve Group/Federated Group and their agents working with them at this point in 5me. None of the material contained

herein may be reproduced, copied, or u5lized in any form or by any means without the specific wriCen authoriza5on from Sailpointe Crea5ve Group/ Federated Group © 2015 4

Federated Group •  Federated Group founded in the early 30’s

Ø  FedDesign opened doors in 1985 Ø  FedDesign became SailPointe

Crea5ve in 2004 •  Federated:

Ø  Helps you grow your food business. We have extensive exper5se in grocery and foodservice sales, private brands, sourcing, QA, logis5cs, marke5ng and design.

Ø  Is a brand owner with more than 85 years of experience ac5vely growing successful food brands.

Ø  Focuses on the fundamentals and delivers sensible solu5ons that are easy to execute and designed to grow your revenues and profits.


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SailPointe Team – Brand Experience

A full-‐service team of: •  Art Directors •  Designers Team Facts: •  100+ combined years of food branding experience •  Over 90% of SailPointe’s work is in store brands •  Team has worked on 20+ brands in recent years including:

•  Produc5on Ar5sts •  Account Managers


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SailPointe Compe55ve Advantage •  At the core, SailPointe delivers extensive brand-‐building experience at a

good value. More importantly, our sustainable compe55ve advantage is vision of the en5re graphic supply chain via in-‐house services all the way from concept to shelf.

•  SailPointe is commiCed to the consistent management of all elements in the process to deliver be6er graphic quality as well as speed to shelf.

•  Control of these elements assures quality and consistency for brands and gives you the security of knowing what you see is what you get.


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Today’s

Graphic Supply Chain (GSC) in Private Brands

Today’s

Graphic Supply Chain (GSC) in Private Brands


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Graphic Supply Chain Elements and Players

Private Brands Retailer drives the process and controls their own brand either internally, or through an agency or broker Ø  Packaging typically changes every

2-‐3 years at best

NaRonal Brands Na5onal brand manufacturers similarly own their own brands and make up more than 75% of the marketplace Ø  Na5onal brands are also able to

change packaging more frequently due to scale and budgets


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Private Brands Design can be managed internally, through agencies/brokers or by suppliers Ø  Control of the brand remains with

the Retailer

NaRonal Brands Build and manage brands with combina5ons of internal and agency resources


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Private Brands These two elements can be executed by a number of different combina5ons of players Ø  Everyone believes they have the

best/fastest/most efficient process to deliver for retailers

NaRonal Brands Have the scale to own these elements through extensive partnerships with key industry players


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The goal of smart brand owners is to deliver a brand consumers want with:

• Quality/Consistency •  Speed •  Lowest possible cost


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Impact of January 2018 FDA Decision

Impact of January 2018 FDA Decision


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What’s Happening Between Now and 2018?

December 9, 2014 The U.S. Food and Drug Administra5on announced that January 1, 2018 will be the uniform compliance date for food labeling regula5ons that are issued in calendar years 2015 and 2016.


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Implica5ons of the January 2018 FDA Mandate •  Likely every food SKU on shelf will need to be touched in some way •  Great uncertainty about what will change across the industry

•  Manufacturers/suppliers •  Retailers

•  Current GSC has capacity industry-‐wide, BUT… •  What if everyone makes a mad rush to shelf at the same Rme with the

same sense of urgency?

•  Agencies •  Prin5ng and pre-‐press


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Overall Industry Capacity Will be Challenged Between Now and 2018

•  A million* SKUs could be impacted! •  Capacity will be constrained at all points in the GSC •  Not everyone will be in a posi5on to win at shelf •  Retailers, suppliers and agencies will all be fighRng for limited print

and pre-‐press resources •  Costs will be driven up as a result of increased demand •  Quality will be at risk the closer the industry gets to the date •  Timing of inventory management will be criRcal for both packaging

and finished goods to avoid write-‐offs

*es5mate derived from IRI data


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What does Success Look Like in Smart GSC Management?

What does Success Look Like in Smart GSC Management?


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All Players in the Label Development Process Understand the Issues

Control is at the root of most concerns around label development •  Retailers want to control their own brand and the quality of its execu5on on shelf •  Suppliers want to control costs to be able to provide the best possible price to retailers

and their consumers •  Everyone wants to have product on shelf in the least amount of 5me

Mul5ple suppliers without a centralized control point don’t always have the same visual targets •  Differing design styles •  Flux in produc5on standards •  Range of pre-‐press quality, especially for color matching •  Print processes deliver different color accuracy and quality levels

(flexo vs litho vs rotogravure)


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How Do Retailers and Suppliers Manage These Issues Today?

Advantage Disadvantage Retailer outsources design Consistency Higher cost

Suppliers source designers Lower cost and/or quicker speed to shelf

Wide range of variability

Agency-‐supplier combinaRon Lower cost and/or quicker speed to shelf

Difficult to manage consistency and 5ming


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Tomorrow’s Opportunity – What If…

•  Retailers could maintain control of consistency and quality of their own brands across mul5ple categories,

•  While knowing suppliers were providing the lowest possible label development costs

•  In a system that improved 5melines from concept to shelf with the highest level of quality and process control?


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How It Works

•  Single point of contact manages the en5re GSC via unique network of previously iden5fied suppliers specializing in private brands label development

•  Pre-‐determined 5melines, schedules, quality standards and pricing structures insure consistency across all aspects of process

•  En5re system is transparent to retailer and offers ability to see status of all elements via one “dashboard”


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There are Two Typical Execu5on Models Prac5ced in Private Brands Today

Retailer Design Pre-‐Press Prin5ng Supplier On-‐Shelf Process

Retailer Design Pre-‐Press Prin5ng Supplier On-‐Shelf Current Internal

Retailer Internal Supplier Internal

Retailer Design Pre-‐Press Prin5ng Supplier On-‐Shelf Current External

Broker/Design Firm Supplier Managed

Regardless of the model, mul5ple en55es own key elements in the process which adds to the overall complexity.


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And Each Offers Different Risks and Rewards


Retailer Design Pre-‐Press Prin5ng Supplier On-‐Shelf Current Internal

Retailer Internal Supplier Internal

Retailer Design Pre-‐Press Prin5ng Supplier On-‐Shelf Current External

Broker/Design Firm Supplier Managed

Gaps in the process where handoffs occur are the top driver of incremental costs and redundancies


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Supplier Pre-‐Press

Controlling the Process from Design to Shelf is Key to Success


Retailer Design Prin5ng On-‐Shelf Proposed

Single Source Management

Key Takeaway – proposed process would eliminate gaps and deliver increased control, improved quality and speed to market


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“Smart GSC” Model Delivers Es5mate of Poten5al Time and Cost Savings

The scale of project dictates the poten5al opportunity: •  Which categories? •  How many skus in each category? •  Es5mated/average design, pre-‐press and prin5ng costs? •  Es5mated/average design, pre-‐press and prin5ng 5melines?

With this informa5on we can provide a worksheet with es5mated savings by category in both cost to produce and speed to shelf.

Key takeaway: even if the GSC model only delivers parity in two of the three main elements, improvement in the third can make a meaningful difference!


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Before and Ater

Supplier Pre-‐Press


Retailer Design Prin5ng On-‐Shelf Proposed

Single Source Management

Savings could be 25-‐30% in Rme alone!


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Summary •  Opportuni5es exist to improve the GSC model for Private Brands to deliver:

•  Becer Quality/Consistency •  Faster Speed to shelf •  Greater Cost efficiency

•  The key to improving these priori5es is in gaining control of the GSC

•  The FDA January 2018 change will significantly amplify these issues and put considerable strain on the overall system

•  Private Brands MUST maintain their fair share of resources and act NOW to prepare!


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Please Stay Tuned for a Panel Discussion at 12:30! •  Representa5ves from all parts of the GSC will discuss how they’re planning

and preparing for January 2018 Ø  Supplier Ø  Printer Ø  Pre-‐press Ø  Design


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Panel Members will Discuss Graphic Supply Chain Issues •  Sara Reddington, Director of Labeling and Regulatory

Bay Valley Foods

•  Cliff Moseley, VP Packaging NPN360

•  Ron Weeks Intellisource, Inc.


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