Over the past few years, the supply chain has seen many challenges across the board. From increased lead times and the climbing cost of doing business, the print industry is beginning to strategize ways to overcome the various supply chain obstacles it is up against... Nosco included.
To begin planning for 2022 and beyond, Nosco encourages customers to implement the following five-part plan to combat the various supply chain challenges we face together. The plan will help reduce lead times and provide increased stability for customers during these turbulent times. The plan is as follows:
PART ONE – SAFETY INVENTORY
The practice of “just in time” inventory is no longer considered a best practice in the state of the supply chain today. To respond to this change in business practices, Nosco encourages customers to adapt their ordering patterns by reducing the frequency of order placement and increasing the quantity of items ordered to build safety inventory. For example, we ask customers that order monthly to begin ordering a two-to-three-month inventory, rather than placing purchase orders each month. We will then offer to accommodate up to three release dates per purchase order.
As we do today, at the time of purchase order placement, materials will be procured to ensure safety stock on the Nosco side to support customer requirements.
PART TWO – SMART ORDERING
Smart ordering is the consolidation of small-volume orders. If customers would like to place purchase orders for 100,000 units or less, we ask that they combine their next two-to-three orders into one. In addition to this, Nosco will increase its minimum order quantities to 5,000 for digital print, 10,000 for conventional print and 15,000 for combination print products. Minimizing the number of orders placed will help maximize efficiency in production, resulting in reduced lead times over time.
PART THREE – ORDERING CALENDAR
Preapproved customers who place purchase orders more than 25 times per month will be asked to implement a Nosco ordering and shipping calendar. Through the use of said calendars, customers will be required to place orders by a predetermined date, agreed upon by all parties. In return, Nosco will provide a guaranteed ship date at the time of order placement.
Utilizing an ordering and shipping calendar enables Nosco to provide expedited lead times. Orders placed outside of the calendar dates will be subject to normal lead times.
PART FOUR – CONVERTING TO DIGITAL PRINT
Regarding carton and label production work, Nosco encourages customers to convert from conventional print to digital print technology. Printing digitally will maintain the high quality our customers have come to expect from Nosco, all while giving us more flexibility to provide the best lead times and pricing available.
Nosco will offer a three percent price reduction for all digital orders that have been converted from conventional print processes. Additionally, customers who place a purchase order for a newly converted product will receive a guaranteed four-week lead time for their first time run.
PART FIVE – ALTERNATE MATERIALS
For pressure sensitive materials, such as labels, Nosco will require customers to qualify an alternative material moving forward. Without an alternative material in place, customers are left vulnerable to shortages and other supply chain issues. Having a secondary material qualified will help maneuver around shortages and decrease average lead times. We encourage all customers to work directly with Nosco’s Packaging Advisor and Solutions Engineering teams to qualify two materials for all new specs (or add a secondary material to all existing specs).