Seattle Publishing Journal
April 2009

Dear Seattle,

Now that Q1 of 2009 is past and we are a couple of weeks into Q2, there seems to be some signs that our economy is getting a pulse. Though businesses continue to focus on the bottom line and ways to shave more costs, executives and managers are under a lot of pressure to do more with less. In this issue, we discuss why outsourcing can be more cost-effective than hiring and how technology continues to change the way we publish. Thanks for reading our journal.

Cheers,
The SP Crew

IN THE NEWS

The Museum of Flight

In March, The Museum of Flight asked Seattle Publishing’s Jay Stilwell to become a member of the Museum’s Technical Committee. This committee is responsible for developing the museum’s overall technology strategy and works with staff members for implementing the development of the website, intranet and online educational outreach programs. As a member of this committee, Jay will be working directly with the Museum’s Senior Curator to develop a process for digitizing 2 million archived photos and making them available online to a worldwide audience of researchers and enthusiasts.

THE ART OF PUBLISHING

Cost Saving Technologies in Print

Direct-to-plate has been around for about a decade and since its inception it has quickly become the method of choice for printing full-color offset printing projects. Direct-to-plate printing, also known as computer-to-plate printing, cuts out one of the steps involved in traditional printing. In the traditional way, film was usually produced from a computer file on an imagesetter and then a metal printing plate was made. From there, the plate would go on the press and be utilized to make the More About Us printed impressions. In direct-to-plate printing, the printing plate is made directly from the computer file, thus eliminating the need for film. Without film there are savings both in turnaround times and material costs. These are primary reasons why direct-to-plate printing is popular with both printers and customers. As with any advances in technology, there are trade-offs and compromises. The only downside to this process is in the quality of the proof for color matching. Film was accurate in producing colorcorrect proofs, whereas direct-to-plate technology isn’t able to create a proof that exactly matches the desired colors.

FEATURED PROJECT

Tacoma Screw Products’ 12th Edition Catalog

On March 18, Seattle Publishing celebrated the completion of the first catalog to meet Tacoma Screw’s goal of on-demand catalogs that will be published on an annual basis. By using Seattle Publishing’s publication services and the Gutenberg Publishing System, Tacoma Screw now has the ability to create catalogs on demand, providing Tacoma Screw the flexibility of when to publish and print. By leveraging this combination, Tacoma Screw no longer has to print or inventory large amounts of catalogs and can publish a new catalog as the need arises.

TIPS & TRICKS

Outsourcing Advantages

The advantages of working with your internal staff are pretty obvious. But just as the use of internal staff has advantages, vendors and contractors also offer unique benefits when utilized and managed properly: saving money, sharing risks, accommodating peak loads, and developing internal staff are just a few examples.

Saving Money

Economies of scale save money when unit costs go down as volumes increase. External service providers can achieve economies of scale unavailable to individual firms when they combine the volumes of multiple companies. To be specific, there are three conditions that must be met before outsourcing saves money:

  1. Economies of scale must exist. That is, there must be some economic advantage to larger size or greater numbers before outsourcing can pay off; for example, unit costs must drop as volumes increase.
  2. The economies must be accessible across corporate boundaries. That is, savings only occur if outsourcers can combine the volumes of multiple clients.
  3. The savings must be sufficient to outweigh the additional cost of outsourcing. Some executives use a 10-15% savings metric as the amount necessary to make outsourcing viable to compensate the firm for the legal costs and the risks of long-term dependence on an outside vendor.

Risk Sharing

Another type of synergy that can cross corporate boundaries is the sharing of risk. Outsourcing can permit multiple companies to share risk. For example, if all your work is done by one vendor, an outage or a labor dispute could put you out of business. If you spread your workload across a number of vendors, a labor dispute with one vendor may not affect the operations of other vendors. Thus, the company’s risk is reduced. In a very large operation, it may be that the company can afford multiple departments. But in smaller companies, it may be cheaper to spread the work across a number of existing vendors, via outsourcing, than it is to build an internal department.

Ability to Accommodate Peak Loads

Outsourcing can be used to minimize fluctuations in staffing that could result from peaks and valleys in demand. To protect staff from fluctuations in demand, every business should staff to the valleys and outsource the peaks. The added expense per hour of contractors must be balanced against the expense of hiring enough staff to handle the peaks and then wasting time between peak periods. If peak loads are frequent and the valleys are short in duration, hiring may be more economical than outsourcing. If peaks are occasional, contractors will save money in spite of their higher costs per hour.

Developing your Internal Staff

Well-managed outsourcing can enhance the development of employees. Two strategies can accomplish this:

  1. Contractors can be used to off-load less interesting "commodity" or end-of-life work, or to handle peak loads. This leaves staff free to pursue new, developmental opportunities.
  2. Consultants and vendors can be used to bring in new ideas and to train internal staff. There are many cases that meet these four criteria where outsourcing pays off. But each case must be examined carefully to make sure the fundamentals are there.

 

The Gutenberg Publishing System's® namesake, Johannes Gutenberg, defined modern publishing when he blended 1400’s ink, type and mechanical technology to invent the moveable type press. With the same drive towards efficiency, Seattle Publishing’s database-driven system helps organizations manage their information and streamline the production process for print- and web-based publications.

Seattle Publishing, Inc. is a 36-year old company that blends current technology with time-tested publishing techniques. The company is a recognized leader in database-driven publishing and is constantly working to be the standard by which all competitors are compared.

Press Contact

Amber Zapffel
Seattle Publishing
206-903-1333
amber@seattlepub.com