ERP for the printing industry: Optimal operational solutions for printing businesses.

With increasingly diverse orders requiring high precision, pressure for faster delivery, and fluctuating paper and ink costs, many printing businesses are facing common challenges. In this context, managing operations using Excel or other disparate tools can easily lead to inaccurate pricing, poor production tracking, and data disconnections between departments.

This is also why ERP systems for the printing industry are becoming a crucial management platform, helping businesses optimize their entire operational chain. So, what specific values does ERP bring to printing businesses? And which printing business models should implement ERP as soon as possible? Let's explore the details in the following content with 1C Vietnam.

Major challenges that printing businesses commonly face today.

The printing industry is characterized by its multi-stage operations, numerous variables, and the need for inter-departmental coordination. As scale increases, problems no longer exist in a single stage but spread throughout the entire operational chain.

1. Handling complex and diverse orders: In the printing industry, each order typically has many specific parameters (size, material, technique, etc.). This presents a challenge in production input management, making it difficult for businesses to standardize processes and requiring significant time to set up information before production.
2. Inaccurate pricing: This is a problem in the business phase, separate from order processing. Pricing is often based on outdated experience or incomplete data, resulting in selling prices that do not accurately reflect actual production costs. Low pricing leads to losses, while high pricing reduces competitiveness in the market.
3. Managing between sample printing and mass production: In many orders (especially packaging), sample printing is a mandatory step before mass production. However, these two stages often use different technologies, machinery, and standards, making process transitions, BOM updates, and cost control prone to discrepancies.
4. Printing plate management: Printing plates are assets that require tracking of their entire lifecycle: number of uses, wear and tear, and reusability. Without proper management, businesses can easily incur unnecessary costs for new plates or use low-quality plates, directly impacting the quality of the final printed product.
5. Inefficient production planning: Unlike problem number (3), this is a problem at the overall scheduling level: allocating machinery, manpower and time to multiple orders at the same time. Without technological support tools, businesses will easily encounter overlapping production schedules, wasted capacity or slow printing progress.
6. Inefficient inventory and materials management: This problem revolves around activities such as tracking inventory (paper, ink), receiving, shipping, storage, and actual losses. The lack of real-time data prevents businesses from optimizing inventory levels or balancing stock effectively.
7. Difficulty in optimizing production costs: This is a problem at the overall level, encompassing all constituent costs such as raw materials, labor, machinery, and indirect costs. Businesses often struggle to accurately aggregate and allocate costs to each order, leading to a lack of transparency regarding actual profits.
8. Dispersed and inconsistent data: Departments (Design, Sales, Production, Warehouse) work on different tools (Excel, separate software), resulting in a lack of data connectivity. This disrupts coordination between departments, especially in handling complex orders.
9. Lack of real-time data for decision-making: This is a bottleneck at the management level: even with abundant data, it is not updated in a timely manner or compiled into useful reports. This leaves managers without a holistic perspective and makes it difficult to make quick, informed decisions when changes occur.

From the above problems, it is clear that printing businesses are under immense pressure from order processing, production scheduling, inventory optimization, and cost control. As scale expands, manual management methods gradually reveal limitations in data interoperability and support for immediate decision-making. Therefore, businesses will need a centralized, real-time synchronized data management system, specifically an ERP, to standardize processes and improve operational efficiency.

What is ERP for the printing industry?

ERP for the printing industry is a comprehensive management software system that helps businesses in the printing industry centrally manage activities such as quotation, design, production, inventory control, and finance on a single platform. This system is designed to meet the specific business needs of the printing industry, such as:

• Custom production involves specific requirements regarding paper type, color, and finishing techniques, unlike mass production.
• Production chain management involves many stages such as printing, lamination, die-cutting, and packaging.
• Adjust material consumption rates (paper, ink) according to actual production to accurately calculate costs.

How does ERP for the printing industry differ from a standard ERP system?

Conventional ERP systems primarily serve basic business processes such as accounting, sales, or human resources. In contrast, ERP systems for the printing industry are specifically designed to handle the complex production characteristics of the sector, such as:

• Manage individual production orders, not fixed mass production orders.
• Pricing is based on multiple variables (paper, ink, size, color, technique, etc.).
• Control material consumption and usage closely to actual production.
• Machine scheduling and production timeline are consistent throughout: prepress – press (printing) – postpress (finishing).

Which printing businesses should implement ERP?

In the printing industry, there are two groups of businesses that are particularly well-suited to ERP implementation due to the complexity of their operations and the pressure to control costs:

1. Businesses that print packaging and labels are part of the FMCG supply chain.

This group of businesses is characterized by large-scale make-to-order production, with highly customized requirements for color, size, and materials. The production process is complex, often involving multiple stages: printing, die-cutting, gluing, and lamination.

Reasons why you need ERP:

• We manage the entire process, from design and quotation to printing, ensuring that customer requirements are met.
• Automating production scheduling and balancing machine and personnel capacity helps reduce downtime and increase efficiency.
• Strict real-time control of material inventory (paper, ink, film) minimizes waste during the printing and finishing process.
• Establish and compare cost estimates between different packaging versions (e.g., using coated paper instead of ivory paper) to optimize production costs.

2. Businesses that manufacture packaging for animal feed or cement.

These are businesses that produce large quantities (make-to-order), with repetitive orders and low profit margins. Each packaging order has different designs, sizes, printing colors (gravure, flexo), and materials (woven PP, OPP film, kraft paper). The production process involves many steps: design, plate making (printing cylinders), film coating, printing, weaving, cutting, sewing, and packaging.

ERP plays a role in:

• Closely manage the Bill of Materials (BOM) for each order.
• Link and track each step in the production process in real time.
• Detailed inventory management (by roll, by kilogram), control of ink consumption, and minimization of unreasonable inventory levels.
• Track the location, condition, usage frequency, and maintenance schedule of expensive assets (e.g., gravure printing cylinders, flexographic printing machines).

A mandatory module for ERP systems in the printing industry.

An ERP system for the printing industry needs to provide the following core modules to help businesses improve operational efficiency and minimize waste.

Production & Scheduling subsystem

This is a "coordination center" that helps printing businesses optimize machine capacity, reduce waiting times, and ensure production schedules are met on time.

• Production planning: Scheduling printing machines (offset, digital), die-cutting machines, and gluing machines to optimize productivity and minimize downtime.
• Compare the BOM versions between trial production and actual production to identify differences in costs, specifications, cost of goods sold, paper/ink materials, etc., thereby optimizing production costs.
• Production process management: Track production order status in real time: Printing, Die-cutting, Finishing, Completed.
• Machine Productivity Report: Tracks the On-Time Effectiveness (OEE) of each printer.

Inventory & Material Management subsystem

This subsystem helps businesses continuously update the status of raw materials, thereby reducing losses and maintaining inventory at safe levels.

• Inventory monitoring: Track the quantity, location, and status of printing materials and finished products in real time.
• Detailed materials management: Supports control of paper by type (Couche, Fort, Bristol), weight (gsm), size (paper width), ink (according to Pantone, CMYK color codes), and other auxiliary supplies.
• Material Inflow, Outflow, and Receipt Management: Systematizing the process of receiving raw materials (paper, ink, film, printing plates, etc.) from suppliers - arranging goods in fixed positions according to the warehouse layout - and issuing goods from the warehouse according to established production quotas.

Quality Control (QC) subsystem

Thanks to the QC subsystem, businesses can ensure that products meet technical standards through close monitoring from raw materials to the final product.

• Material quality management: Inspect and evaluate the quality of paper, ink, lamination film, glue, etc., before warehousing and use in production.
• Quality control of the printing process: Monitoring production stages such as prepress, page layout, printing (color deviation, color registration), and post-printing (laminating, die-cutting, embossing) to detect and prevent errors early.
• Final product inspection: Checking the entire finished product for standards such as size, color, and content before delivery to the customer.
• Document management: Maintain complete records of quality standards that must be followed (such as ISO, color codes), and standard operating procedures (SOPs).

Sales and Customer Management (Sales & CRM) subsystem

This subsystem allows businesses to manage the entire customer and order lifecycle, from request receipt to delivery, thereby increasing processing speed and better meeting customer needs.

• Order management: Create and track orders, convert quotations into orders, and communicate with the production department.
• Customer data management: Storing design history and special requests (paper type, print size, colors) for each customer to ensure prompt service.
• Project and opportunity management: Track sales opportunities, manage the pipeline (the process from initial contact to contract signing).

Finance & Accounting subsystem

This subsystem helps printing businesses understand costs and control profits on a per-order basis, rather than just observing the overall picture.

• Cost accounting and pricing: Automatically aggregates material costs, labor costs, and machinery costs from other modules to calculate the actual cost of each order.
• Accounts Payable Accountant: Manages accounts payable to customers (deposits, order payments) and suppliers (material purchases).
• General Ledger & General Accounting: Automatically records transactions from various departments, prepares balance sheets, and generates income statements.

When should printing businesses implement ERP for the printing industry?

Here are some signs that indicate it's time for your printing business to switch to an ERP system, instead of continuing with your current fragmented management methods:

• Revenue increases but profit is unclear: Businesses have many orders but cannot accurately determine the cost of each job (paper, ink, labor, machinery), leading to incorrect pricing and disproportionate profits. ERP helps link production and accounting data, automatically calculating costs and analyzing profit and loss for each order.
• Frequent production delays: Tracking production using Excel or manual methods prevents businesses from understanding the real-time status of each stage. This leads to overlapping production schedules and delayed deliveries. ERP systems support planning, scheduling, and real-time progress updates to ensure deadlines are met.
• Inaccurate inventory management and significant losses: Businesses frequently experience material shortages during production or excessive inventory, with uncontrolled losses. ERP systems help track inventory in real time, manage materials in detail according to the specifics of the printing industry, and effectively control incoming, outgoing, and remaining stock.
• Rapid Growth: As the number of orders, production scale, or number of branches increases, the old management system becomes overloaded. Scattered data and slow reporting make decision-making difficult. ERP helps integrate all data and provides a comprehensive, timely overview for management.

1C:ERP - A flexible and customizable ERP solution for the printing industry.

What is 1C:ERP and why is it suitable for the printing industry?

1C:ERP is a comprehensive resource management solution developed on the 1C:Enterprise platform by 1C Company – a leading software group in Russia with over 30 years of experience in ERP implementation. In Vietnam, this solution is provided and supported directly by 1C Vietnam, part of the 1C Company's network of subsidiaries.

The highlight of 1C:ERP lies in its flexible customization capabilities to suit the specific operational needs of each business. For the printing industry, the system can be "tailor-made" to fit various production models such as:

• Printing packaging and labels for FMCG chains.
• Printing on animal feed packaging and large-scale cement production.
• Printing is done to order using a multi-stage process.

Thanks to its ability to manage complex Bill of Materials (BOMs), control materials, and coordinate production on a job-by-job basis, 1C:ERP is particularly suitable for printing businesses that need to optimize costs and standardize operations as they scale up.

How does 1C:ERP support the operation of a printing business?

Instead of solving each problem individually, 1C:ERP helps printing businesses connect their entire operational process on a single platform: from customers and orders to production and finance. Specifically:

From customer to order:

• Merge customer data with their corresponding transaction history.
• Centralized management of quotations, contracts, orders, and real-time tracking of processing status.

From order to production:

• Automatically convert orders into production orders.
• Calculate material requirements based on the Bill of Materials (BOM).
• Manage and compare multiple versions of the Bill of Materials (BOM) between trial production and actual production to optimize costs and pricing.

During the production phase:

• Plan and schedule printing, die-cutting, and gluing machines.
• Track progress in real time through each stage.
• Synchronize data between production, warehouse, and QC departments.

From production to finance:

• Automatically record material, labor, and machinery costs.
• Integrating accounting and finance within the same system.
• Analyze revenue and profit by order.

As a result, data is seamlessly updated across departments, helping businesses quickly identify bottlenecks, reduce information disruptions, and improve overall operational efficiency.

1C:ERP's core management competencies

At the management level, 1C:ERP helps businesses focus on the following pillars:

Smart materials and inventory management:

• Track inventory by storage location, batch number, and inflow-outflow-inventory pattern.
• Real-time data updates for production and purchasing purposes.

Planning & Budget Management:

• Integrated planning: Sales - Purchasing - Production.
• Budget control is implemented across multiple touchpoints, including procurement, production, and investment.

Process Management & Approval (integrated with 1C:Document Management - 1C:DM):

• Digitizing and automating document and file management processes.
• Standardize the approval process for quotations, purchases, payments, and internal proposals.

Key strengths of 1C:ERP

• The ability to manage multiple versions of the BOM is particularly suitable for controlling continuously fluctuating quantities.
• Integrate 1C's BI (1C:Analytics) directly into the system, supporting visual KPI tracking.
• Competitive total cost of ownership (TCO), resulting in savings of up to 30% compared to many solutions in the same segment.
• Flexible scalability to accommodate growth, suitable for both medium-sized businesses (200+ employees) and large enterprises.
• Easily integrates with the 1C ecosystem and third-party systems.
• Supports multi-mode operation (online, offline, or hybrid) on both computers and mobile devices.

To learn more about how 1C:ERP supports improved management capabilities and optimized operations, businesses can schedule a 1:1 consultation with a 1C Vietnam expert here .

6 Steps to Implement ERP for Printing Businesses

The ERP implementation process for printing businesses typically includes six main steps:

• Step 1 : Identify Needs and Goals: First, businesses need to clearly identify the problems they are facing, such as incorrect pricing, large material inventories, delayed deliveries, or difficulty controlling costs. From there, set specific goals such as shortening production planning time, reducing material waste, or improving the accuracy of cost calculation.
• Step 2 : Establish the Implementation Team: Businesses should build a project team comprising representatives from Production, Sales, Purchasing, Accounting, and IT, along with a project manager responsible for coordination.
• Step 3 : Choosing the right ERP solution: Businesses need to consider between a specialized ERP for printing or a general ERP with deep customization and flexibility like 1C:ERP. The system needs to meet core business requirements such as production order management, BOMs, inventory management, and cost calculation per order.
• Step 4 : Process Survey and Redesign: The implementation team will analyze the current process, identify the gap between reality and the standard model (Gap Analysis), and then design a new process (standardizing pricing and production orders) on the ERP system.
• Step 5 : Data Configuration and Migration: The ERP system is configured with variables tailored to the specifics of the printing industry, and integrated with the company's existing systems (if needed). Important data such as customers, materials, BOMs, and inventory will be standardized and transferred to the system.
• Step 6 : Training and Go-live: Train employees on how to use the system, conduct trial runs to troubleshoot before officially launching the ERP system. This stage is crucial for determining the practical applicability and long-term effectiveness of the project.

Conclude

Based on the information shared by 1C Vietnam, it is clear that ERP implementation is a practical approach to help printing businesses better control production costs and improve overall management efficiency, especially when facing challenges related to complex BOM management and multi-stage production processes with multiple variables.

If your business is looking for a solution that is both flexible and customizable to the specifics of the printing industry, while also being cost-effective and scalable in the long term, 1C:ERP is definitely a worthwhile option to consider in your digital transformation strategy.