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Courtesy
of AMR Research Wednesday, February 26, 2003

Design2Launch
Aims To Shorten Brand Graphics to Package Cycle Time
By Kevin O'Marah, Roddy
Martin
Packaging accounts for 60% to 70%
of total product cost for Consumer Packaged Goods (CPG)
(see “Packaging Operations: Where Manufacturing
Rubber Meets the Supply Chain Road,” in the Alert
on Product Lifecycle Management, September 19, 2002).
While much of the discussion about the role of Product
Lifecycle Management (PLM) applications in the CPG market
has been about process manufacturing issues, getting
brand graphics and label details right is just as much
of a bottleneck as getting formulas and recipes straight.
The typical review/change/approval cycle involves three
to four iterations between graphic design, color separator,
and printer--with marketing owning the final go-ahead.
Since the process generally requires hard proofs moving
back and forth by courier, the cycle can take weeks.
CPG companies may be able to take
a lesson from the Electronics industry that long ago
discovered the value of electronic Engineering Change
Orders (ECOs). Agile Software had an immediate and measurable
effect on time-to-market for High-Tech manufacturers,
improving cycle times by 70% to 90% with ECOs across
companies, especially between the Original Equipment
Manufacturers (OEMs) and their contract-manufacturing
partners. The same type of improvement looks possible
with emerging technology from a small vendor called
Design2Launch. The recently funded startup has developed
technology for color matching on any substrate that
allows a graphic designer working on a Mac to exchange
soft proofs electronically with print and packaging
specialists like Mead Westvaco (a Design2Launch customer)
and know that what they show to marketing is what will
roll off the line for delivery to stores.
While this element of getting
a new item on the shelf is just one link in the chain,
it is also where technology can clearly have an impact.
The software for managing graphic files and handling
their submission to partners is hosted by Design2Launch,
and calibration services are provided on site to match
color across ink jet printers, monitors, and production
scale printing presses. So far, Estée Lauder
is the only prominent CPG company to begin using this
system. If it can replicate any of the success that
electronic ECOs have had in High-Tech, it will demand
attention from other CPG manufacturers looking to improve
new product development and introduction.
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