Economy of Scale- Print to Survive and beat your Rivals!
Focus Sessions
IFRA Expo 30 October 2012, Frankfurt Germany
A. Avrahami C.E.O, Yedioth information technology A Buberman, VP Operations, Yedioth Group YEDIOTH GROUP The Yedioth Ahronoth Group is leader in the field of print media, magazines and books in israel. It also owns other media and telecom holdings.
Yedioth group includes:
“Yedioth Ahronoth”: the largest daily newspaper in Israel. “Yedioth Tikshoret” (Yedioth Communications) – One of the 3 largest chains of local papers in Israel. 21 local newspapers distributed on the weekends in the main cities and areas in Israel partly as free of charge and partly paid. Magazines: designated for women, men, children, and covering health & TV entertainment. “Yedioth Technology” : I.T company. Ynet: the number one news portal in Israel. It also has abridged version in English and Arabic. Vesti: The leading daily newspaper for the Russian sector. Calcalist: the largest finance newspaper and website. Our Products: Our Products: YEDIOTH AHRONOTH newspaper
Yedioth Ahronoth Leading daily paper with highest circulation Distribution: Daily paper distributed across Israel About 8,000 points of sale Numerous daily subscribers Annual paper consumption – about 70,000 Ton The printing is carried out in two locations: Rishon Le’zion printing facility Bar- Lev printing facility (location of pilot installation) Rishon printing facility Press 3 presses (KBA, MAN), KBA: 8 four high towers KBA: 4 satellites MAN: 2 four high towers plus 4 satellites
Mailroom 4 ABL packaging lines plus 4 inserting systems made by FERAG Bar Lev printing facility
Press 1 press (KBA), 2 folders and 6 towers
Mailroom 2 ABL packaging lines plus 2 inserting systems by FERAG The Problem: Decrease in circulation,
Profitability Decline,
Excess Printing capabilities,
Availability of equipment and people
A Need to create new revenue sources Start point: Printing format is Tabloid only with standart newsprint
Market needs and demand: Glossy Cover; Large variety of printing format; Semi commercial Products; Preprinted inserts; Wide range of potential customers: Commercial companies (Catalogues, Inserts, Brochures)- we insert those copies to the newspaper! Small & Medium newspapers (Private customers) Government agencies, Local & Municipalities authorities, Associations, Political parties … Business opportunity • Print industry is in trouble. Small printing house closed. • Entry barriers for the industry are high. • Big players have “relative advantage”. • Still there is demand for print products. What are the gaps? • Management got “cold fits” • The organization structure is not ready outside costumers • Different state of mind with short runs and updated KPIs (paper waste groups, set up time) • Need for new process that take care for the outside costumers • Missing technology and training Paper waste Economy of scale
• We have the printing press already • We have the knowledge • We have economic process • We have law prices for materials • When the print industry have a problem the big one survive (the small one disappear) A wide range of new technology:
Press: KBA quarter folder New web width (and improved newsprint) Stitching: Saddle Stitcher - Müller Martini Bravo Plus StreamStitch - Ferag’s compact StreamStitch Trimming - Ferag’s three-side trim on the single copy A wide range of personnel skills:
Training staff to operate the new equipment staff Mobility between departments Sharing new income Technological personnel and teams training External customers Printing process After identification (name & password) the customer selects the publication generating for him and according to his demands (number of pages, size, finishing) customer upload pages file to the server, pages binge testing through PITSTOP. The user will receive notification on rejected pages including location of problem and characterization, after fixing the problem the user will re- position the page on layout. After making sure that all pages are correct and approved by user it When edition will be automatically sent to Arkitex system and into plates rom. CRM system
• New CRM system to manage external costumers and their production process • Full costumer picture • Covering all costumer process : - price offer (and price list) - order - production order - invoice and billing Share it!
• Share the information with you stuff. • Award them for good performance.
Current status
• Over 90 external consumers • Over 120 different jobs per week • Average printing run: 10,000 copies • Average pages: 48 • Significant income for the group What is good ROI for new investment? • We did it in 2 years! Email: [email protected]