Digital technology can cut costs, speed production on circulars

Discount Store News, August 15, 1994 by Teresa Andreoli

CHICAGO -- If your circulars don't seem as priceaccurate or as strategically timed as they should, and generating film is still part of your production schedule, you may want to consider a move to a digital network operation.

"We used to require customers to send us film 30 days prior to the date the circular was to hit the street," recalled Mike Allen, president, retail services for Chicago-based R.R. Donnelley & Sons. "Now, with our Digital Exchange Network, we cut 12 days out of that cycle."

Some retailers' schedules have been cut in half, he added.

The time saved can be handed back to the merchandisers, Allen pointed out, thereby allowing them to make price or promotion changes a lot later in the cycle than they've been able to do in the past.

For example, if a merchandiser discovers that the red bathing suit featured in the upcoming circular has been suddenly sold out--or worse, a competitor's advertised price demands a response--steps to rectify the situation are far fewer when working digitally than when working with film.

"Proofs [from film] alone can take seven days to make; we can usually drop that process time down to one day," Allen said. Donnelley can transmit a full 48-page form in two hours, allowing even more creative time.

"Going digital" can be fairly easy for retailers who use some sort of desktop publishing system in their sales/promotions office. Discounters and offpricers already on Donnelley's network include Wal-Mart, Kmart, Target, Bradlees, Caldor, Hills, Jamesway, Radio Shack and Lechmere.

Here's what's involved: retailers create the text pages for the circular and electronically transfer them to a regional Donnelley office. Donnelley has the capacity to receive and read almost any type of desktop file format: Mac, Scitex, Magnito Optical File and others, Allen said.

Color artwork still needs to be separated (inhouse, at an independent separator or at Donnelley) and merged onto the page.

Donnelley operates nine "Gravere" plants across the country, each with specialized machines dedicated to the unique process and to servicing their retail clients.

The nine plants are an additional amenity to large chains, especially those that operate in diverse parts of the country.

Saving on distribution costs is the first advantage. Instead of printing from a centralized house and then paying heavily to truck or mail the circulars to the desired end markets, retailers can reap the savings benefits of printing closer to their customers.

Also, regional and ethnic merchandising strategies are easier to execute through the use of several plants.

"A discounter may want a different version of its circular for its San Francisco market, compared to its Tampa [Fla.] market," Allen said. Plus, retailers can easily change quantity orders from week to week, as the climate changes.

Other digital break-throughs just emerging: the most progressive retailers (in the realm of electronic publishing) use digital cameras to shoot product for their circulars, allowing for an even earlier move into the digital mode, Allen said.

Supermarkets and pharmacies are the leaders of this group, he said, but he hinted that digital cameras are best for capturing product that doesn't move or melt.

For example, the quality isn't there yet for live model apparel shots, Allen said, so all the Caldors out there may not need to jump on digital cameras at present.