In recent years, the print-on-demand industry has witnessed unprecedented growth. Riding the wave of digital transformation, this industry has proven to be a game-changer for businesses of all sizes, offering unparalleled flexibility and scalability. However, as the industry expands, it has also encountered significant challenges, a lot of which are due to supply chain disruptions. In this article, we’ll delve into these issues and explore potential solutions, enabling businesses to effectively navigate this landscape.
The Issues of Print-on-Demand Industry
Since print-on-demand is a ‘manufacture based on previously placed orders’ type of industry, the most common problems of supply chain do not apply here. Problems such as the imbalance between supply and demand does not occur because the demand is already precisely known. However, there still are other issues. We’ll talk about them now.
Port Congestion and Global Container Fleet
Port congestion and global container fleet issues have become significant problems affecting the print-on-demand industry. One-fifth of the global container fleet is currently stuck in congestion at various ports, with less than 40% of ships arriving on time. This has led to elevated freight prices and soaring marine fuel prices and insurance costs, ultimately impacting the cost of goods.
Increased Costs and Interruptions in Supply
The impact of supply chain disruptions on the print-on-demand industry has led to increased costs and supply interruptions. Manufacturers have had to raise their prices due to limited supply and heightened demand. These interruptions have particularly affected major materials like ink, paper, clothing materials, and printing supplies, leading to price increases and scarcity of specialty materials.
Labor Shortages
Labor shortages have also added to the supply chain challenges in the print-on-demand industry. This issue is not just hitting small businesses but is affecting mail carriers, mills, raw material manufacturers, and transportation services. With a decrease in staffing and an increase in demand, delays have become inevitable, further aggravating supply chain issues.
Order Turnaround Delays
Rapid order influx and supply chain delays have caused many print-on-demand businesses to introduce flex days, allowing their production teams enough time to accommodate these changes. This has invariably led to increased turnaround times for orders, affecting customer satisfaction and business efficiency.
Delivery Delays
As a result of supply chain disruptions and labor shortages, deliveries have been consistently delayed. The US postal service has increased their flex days, and due to the surge in consumer and business orders, deliveries often arrive later than expected. This unpredictability in delivery times has added another layer of complexity to managing operations in the print-on-demand industry.
The Navigable Solutions
So, What can we do about these issues? Well, there are a handful of probable solutions, including:
Proactive Planning and Forecasting
To combat the challenges posed by supply chain disruptions, proactive planning and forecasting have been identified as crucial strategies. Businesses are advised to plan early to have better control over inventory and pricing. Forecasting capacity needs are also recommended as lead times are much longer than usual. This approach allows all partners in the supply chain to plan and react to changes in the most beneficial way.
Exploring Alternative Materials
To avoid production interruptions, businesses in the print-on-demand industry are exploring alternative materials. Given the scarcity of certain materials, it’s recommended to have a second, third, or even fourth choice of substrate in mind for every type of job. This strategy helps businesses to remain flexible and adaptive to the current market conditions.
Incorporating Flexibility in Operations
In the face of increased turnaround times and delivery delays, incorporating flexibility into operations is a must. Many print-on-demand businesses have included flex days to give their production teams enough time to accommodate the changes caused by supply chain disruptions. This approach ensures that the business can continue to operate efficiently despite the ongoing challenges.
Transparency of Communication with Customers
Given the increased costs of materials and logistics, businesses have had to raise their prices. In such situations, transparent communication with customers about these changes is crucial. This approach helps manage customer expectations and maintains trust in the business.
In conclusion, the print-on-demand industry is facing significant challenges due to supply chain disruptions. However, with proactive planning, flexibility, and effective communication, businesses can navigate these challenges and continue to thrive.
