03-11-2014 SSP Webinar Print On Demand – Troy Ots Presentation

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WEBINAR
Print on Demand (POD)
Society of Scholarly Publishing
Troy Ots
Director, Production Systems
SAGE Publications
March 11, 2014

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Print on Demand vs. Traditional Inventory
POD made perfect sense when we thought journals
print subs were on their way out
Does it still make sense?

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Traditional journals inventory
● Inexpensive to overprint
● For us, warehouse space is fairly inexpensive
● Copies on hand
● Flexibility and control over inventory
● Reasonably easy to manage
Why it works

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What is the cost of POD?
Printing extras = less than $1.00/copy
Printing POD = more than $4.00/copy
At 4 times the cost, why bother
with a POD model?
● Free up warehouse space
• Warehouse space costs money
● Eliminate shipping costs
• Copies mail directly from the printer
● Reduce waste
• Waste reduces or even eliminates savings
● Possibly more control
Quantity
Unit Cost

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So, what did we do?

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We moved…
from this to this
SAGE Printer

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Our goal: Get the best of everything!
● Eliminate the warehouse requirement
● Always have inventory
● Eliminate (or significantly reduce) waste
● Get the lowest possible unit rate
● Make it as invisible as possible

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How did we do it?
Cherry picked all the best parts!
● Completely eliminated our SAGE journals warehouse
● Moved inventory management to our printers
● Limited a journals inventory life to 1 year
● Moved to zero overs for all digitally printed titles
● Reduced all other standard titles to “micro” inventory
● Backed everything up with a robust POD program

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Hybrid POD
Micro inventory backed by a POD program
● Not “zero” inventory but
“invisible” inventory
• Invisible to external
and internal customers
POD
Inventory
12 copies in printer’s inventory
Order for 15 copies
12 from inventory + 3 POD = 15 bulk

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How does it add up?
Back issue orders = 28 copies
Traditional inventory model
150 copies in stock – 28 copies ordered =
150 @ $1 = $150
POD model
0 copies in stock – 28 copies ordered =
28 @ $4 = $112
Micro inventory (hybrid) model
20 copies in stock – 28 copies ordered =
(20 @ $1) + (8 @ $4) = $20 + $32 = $52
Micro Inventory
65% savings over traditional inventory
53% savings over straight POD

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Impact on inventory and cost
0
20
40
60
80
100
120
140
160
2010
2013
Inventory
POD
0.78
0.79
0.8
0.81
0.82
0.83
0.84
0.85
0.86
0.87
2010 2011 2012 2013
Cost per copy

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Challenges to be aware of
● It is more work than traditional inventory
● It is more work than straight POD
● ROI
● No physical copies to grab
● Requires monitoring and adjustments
● Requires reporting
● POD covers will not match your PMS covers

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Finding the right solution
● Work with your printers
● Develop a model that works for your business
● Report, track, adjust, repeat
● Be flexible and make sure your printer is flexible
● It does not have to be an “all or nothing” approach
● “One size fits all” solutions do not work

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Thank you