VDC recently published its barcode printer consumables supply-side analysis. This research is attracting more interest among hardware suppliers and their channel partners than in previous years. Why? Because AIDC value chain participants are competing like never before to squeeze all the revenue they can from each and every project they undertake. At the same time, deploying enterprises are looking for opportunities to do more with less. While these objectives may seem diametrically opposed, they needn’t be…VDC’s most recent study of the barcode printer consumables market has identified some trends that will enable suppliers and prospective buyers to achieve their aspirations by deploying innovative solutions that look remarkably different from than those requested and delivered in the past.
Traditional consumables sourcing considerations have been driven by proximity and price. Put another way, labels, tickets, tags and ribbons are heavy, and shipping costs have increased markedly in recent years, causing consumables purchase considerations to be driven by price and availability. These primary purchase considerations, price and availability, have led many in the industry to bequeath the consumables product category with another unpleasant term: commodity. Who in their right mind would line up to sell and support a commodity? Where’s the fun in that? Not to mention the margin?
Everyone familiar with VDC’s research understands that the consumables market opportunity is considerably larger than the market opportunity associated with most AIDC hardware components, but creating a compelling value proposition that justifies investment in branded consumables has proven an arduous task, and one that frankly few hardware suppliers have managed very successfully.
Together, the global recession and environmental concerns are placing increased emphasis and eyeballs on consumables, as a solution component that needs to carefully managed and better supported. Users are looking for every opportunity to reduce their consumption of barcode printer consumables while deriving incremental operational benefits. This, in-turn is causing forward thinking suppliers to invest in the development of solutions that provide benefits above and beyond those provided by more traditional offerings. Seriously? Does it really make sense to spend precious resources innovating around a solution component suffering from commodity status? We think so, and our latest research suggests that suppliers are doing just that.
Cases in point:
- NCR is licensing their dual sided printing technology to thermal printer manufacturers and supplies converters, enabling enterprises to do more with less. A POS receipt printing solution with the capability to print coupons and advertisements on the reverse side of the slip will more likely resonate with the buyer when the coupons and advertisements are selected based on the CRM profile associated with that buyer, and printed on-demand. Operational improvement will likely manifest itself in increased coupon utilization, fine tuning the CRM capabilities of deploying customers while enabling these customers to sharply reduce their annual consumption of paper products.
- But what about industrial applications? Zebra Technologies has introduced a new method for shipping departments to save time when printing and applying packing slips. Their Z-Slip packing slip solution consists of a packing slip label with an integrated, peel-and-stick sleeve. Printing and applying traditional packing slips is a labor-intensive process requiring shipping-department employees to print a slip, fold the slip in half at least twice, slide the slip into the sleeve, remove the liner and stick the sleeve onto the box. With the all-in-one Z-Slip system, these employees can print, peel, and apply almost simultaneously, saving time-on-task and improving operational efficiency.
- Taking a page from the play book of successful inkjet and laser printer manufacturers, Brady Corporation introduced its IP series printers in 2008. These printers deploy sensing technology that interrogates supplies as they are loaded into the printer, enabling the printer to optimize its performance without a costly, time consuming calibration process that can eat through consumables unnecessarily. With the IP series, Brady Corporation has a platform for innovation that can pave the way for device management and print management solutions, and ultimately less margin constrained service and software offerings.
So the consumables market is changing. The days of dumb devices and commodity status consumables are waning, with increased energy being spent where it should be, on providing more value while simultaneously driving down costs and the unnecessary consumption of precious resources. Based on our most recent research, we encourage enterprises and suppliers alike to rethink their consumables objectives and to invest in smarter solutions.
