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Fulfillment Services: The Print On Demand Killer Application

Introduction
 
Digital print technology, information technology, and the Internet are enabling new types of fulfillment services that are key to the success of print service providers. Digital print fulfillment has the potential to be the on demand industry's next "killer application."

For many print service providers, fulfillment has traditionally been defined as a designation of where to ship an entire printed job, either directly to the customer, or to a third party that may be warehousing materials for inventory, kitting, and distribution as required. As average print run lengths continue to decline and the demand for variable data printing and one-to-one communications continues to climb, print service providers should re-examine the entire print supply chain and rethink the steps in the process to ensure that the maximum amount of revenue per customer is being achieved from each link in the chain. An example document management and fulfillment workflow being utilized by leading digital print service providers is reflected in the figure below:

The fulfillment services area is clearly a great opportunity for today’s print service provider. Print service providers can offer an efficient packaging of:

• Print and distribution services    
• Web-based ordering / e-Commerce    
• Online document management    
• Variable data printing and one-to-one marketing support

Through these offerings, the print service provider can become a more valued partner, improving customer retention, loyalty, and satisfaction.

Fulfillment services also present a growth opportunity to print service providers. CAP Ventures’ Document Outsourcing Forecast expects the mail services segment of facilities management to grow at a CAGR of 16%, from almost $1.2 billion in 2000 to almost $2.5 billion by 2005. Fulfillment services in the statement printing segment are expected to grow from $93 million in 2000 to $170 million in 2005, a 13% CAGR, and the total market for mailing and fulfillment services in the contract print segment is expected to grow from just under $2.5 billion in 2000 to $3.8 billion in 2005, a 9% CAGR.

In the white paper Fulfillment Services: The Print On Demand Killer Application, CAP Ventures discusses a wide variety of approaches to providing fulfillment services, such as partnering with a fulfillment house, primarily fulfilling digitally printed materials into the mail stream, and maintaining a full inventory and warehousing operation for clients with kitting and fulfillment services on demand.

The white paper reviews and defines fulfillment services, particularly as they relate to digital and on-demand printing. It cites best practices and offers advice for service providers hoping to expand their presence within the entire print supply chain. Through a number of case studies of successful print service providers who are offering fulfillment services, the paper will provides specific guidance and anecdotal information on a variety of approaches to market entry, as well as advice and lessons learned from those who have already entered this market.