With the current increase in paper types, the management of paper has become more and more complicated. Many paper mills are joint ventures between domestic companies and foreign companies. They mainly supply paper for foreign customers. In addition to the development of a large number of mixed papers with special luster, texture and characteristics, these paper mills rarely use domestic paper. Specifications are adjusted, of course, they have also made some progress in increasing the types of recycled paper, improving product parameters, and reducing paper prices. With the advent of new wide web presses, paper mills also need to adjust their own production schedules in time to meet the printing customer's demand for new roll widths.
The way paper is purchased has changed dramatically in the past five years. Today's paper distributors also hope to maintain their profitability in a market where raw material prices continue to rise and profit margins continue to shrink. Although they can provide customers with a variety of papers, they are also subject to product pricing restrictions, so many dealers can use a series of electronic tools to provide customers with the latest market information. Thanks to these services, publishers are now able to obtain more resources that meet the trend of the field and can better plan their future.
Although there have been so many changes in the printing industry, the five basic sources of paper have not changed. They are: printing factories, wholesalers, middlemen, direct purchases from paper mills or on-site purchases. Although there are some online purchasing services on the market, they are mostly provided by the websites of wholesalers and middlemen.
Understanding the differences between these sources and finding the one that works best for you is crucial to your choice of the right paper supplier.
Wholesalers / brokers
Paper wholesalers are not exactly the same as middlemen. Although they are all independent sales agencies representing a number of paper mills, wholesalers actually buy the paper from the paper mill first (pay and store the product), and then It is sold to publishers; while middlemen only engage in sales, they do not really buy paper. In a volatile market environment, wholesalers tend to do better because they can buy them back and store them in their own warehouses before prices rise.
Both wholesalers and middlemen are sources of imported paper and recycled paper.
Spot market
The spot market, also known as the residual market, includes over-production, left-over paper, paper left after publication is stopped, various papers from different sources, and defective products with quality problems. These papers usually cannot be sold through mainstream wholesalers and distributors, but are supplied by specific wholesalers. They allow many publishers to meet the normal production needs with cheaper paper while reducing risk.
To paper mills for direct production
You can also buy paper directly at the paper mill. This method usually applies only to those publishers that are very large in size. The advantage of purchasing paper directly from a paper mill is that it allows publishers to maintain a good relationship with papermakers, thus ensuring that they have sufficient paper supply when the product is in short supply.
In addition, the benefits of doing so can be reflected in the purchase price of paper, because publishers often need to pay higher prices when buying paper from middlemen. This is mainly because middlemen are also customers of paper mills, but because they purchase far more products than a single publisher, they can enjoy more favorable conditions. In other words, as long as the distribution network for intermediaries is added, publishers will become part of the paper mill's largest customers.
Tips for choosing the best paper source
Keep in mind: The paper mill's main task is to produce paper, not to serve publishers. Their goal is to sell the most paper at the highest possible price.
In a weak market environment, the supply of products is generally adequate, so people generally do not choose to purchase directly from paper mills. However, this does not prevent paper mills from making efforts in this area. In recent years, many paper mills have established direct contact with their end users and attracted the attention of many large publishers.
Choose a suitable paper supplier.
Buying paper at the printing factory is the easiest way, but it is not the best way, especially when considering that you buy the paper yourself and hand them over to the printing house.
"The publisher needs to do is provide a paper distributor (wholesaler, middleman or paper mill) with a copy of the print order and page number revision, and then they have to do with the paper media company Dermot Burke of Gould Paper in Maryland, USA. The rest of the work can be done by a paper distributor."
Wholesalers and middlemen are best at purchasing paper, improving the paper trading process and managing the supply of paper. They have multiple supply resources and can leverage on procurement.
Nevertheless, choosing a paper supplier is different from selecting a printer. When we analyze a printing factory, we usually compare as many qualified candidates as possible. However, when selecting a paper supplier, this method is not So effective.
Each wholesaler and middleman represents a lot of different paper mills, so different wholesalers or middlemen may also represent the same paper mill. For example, when a publisher visits six wholesalers or middlemen, these dealers order paper mills for the paper that the publisher needs. According to regulations, paper mills should sell products to each dealer at the same price (pricing), but it can give different discounts—quantitatively and financially—to make paper prices different.
Wholesalers and intermediaries can attract publishers by reducing the price increase of products, but since paper manufacturers offer discounts to dealers based on the quantity purchased, we should evaluate the market influence of each paper supplier.
When selecting paper suppliers, you should carefully evaluate them, such as checking the supplier's ability to work, to see if they can turn pages and print orders into precise paper orders.
You want experienced experts to complete the job because a small mistake can lead to significant economic losses. So people have to work hard to check the supplier's ability to work and find the right people to do related work.
Paper management
When deciding whether to buy paper, publishers are most concerned about is that they lack a full understanding of the paper industry. The paper market will not only be affected by the magazine market, but will also be affected by other printing markets, the world economy, energy costs, environmental issues and important events such as the Olympic Games or the presidential election. Publishers are afraid that they do not know how to order, store and calculate the cost of paper, and deal with issues such as paper damage and printability.
However, please don't be afraid. Paper management is a service that paper suppliers should provide. Bob Wiemers, director of production at Boy Scouts magazine in the United States, said: “Supplying paper yourself will increase your work with Lina, but you can minimize these jobs by working with wholesalers. Wholesalers can manage paper consumption and inventory. , and can track any quality issues, paper dealers have actually become your paper manager."
Joan Marshman, Production Manager at Christian Science Press, said: “The purchase, storage and management of paper are issues that my paper suppliers are concerned about. They allow me to understand the latest market trends, find the most appropriate paper and the most reasonable price. In addition, they will also be responsible for the distribution of paper in different printing plants, and will submit regular reports to us."
Your paper supplier should track the shipping time of the product to reduce unnecessary inventory and related expenses.
The following is a typical workflow for paper suppliers:
Check the production schedule according to the delivery date. Supervise the publisher to send the order to receive the order. Give the order to the factory with the best delivery date and price. Determine the paper price, grade, availability, and LDC (change of the latest delivery date or The latest date for modifying the order), etc.
Process Order Confirmation Order (by mail, fax, email, or EDI/XML)
Determine the production and transportation time of the paper mill If the order changes (quantities, consignees, etc.), it should be coordinated in a timely manner with the relevant personnel. Follow-up on the ship/train/truck, etc. to confirm the receipt and handling of paper All complaints and handling of transportation problems Customer report
When interviewing candidates, review the sample reports they submitted to customers and see what type of market information, e-newsletter, or information site they offer.
The history of dealers providing paper management services to customers dates back at least a decade ago. As Bob Shenberger, vice president of Frye Publication Consulting, points out, "In the past, we used wide web presses, so you have to balance different page structures."
Although the dealer can help you manage the paper, the ultimate responsibility and obligation are still in your hands. The paper management process involves a lot of work and certain risks. If the delivery time is extended or shortened, then your own problems, not the printing factory, and after the completion of the printing, all the remaining paper must be handled by you.
Benefits of working with wholesalers or middlemen
By working with wholesalers and middlemen, you can get a lot of tangible benefits. Resolving complaints is an important service that paper suppliers can provide. In the event of a conflict or paper damage, the dealer will contact the printing house, transportation company, or paper mill directly to resolve the issue. Many problems are solved without the publisher’s knowledge. But please don't forget: you are a customer of the printing house and therefore are responsible for the problems that arise on paper.
Dealers can also participate in the planning process of the printing project in advance and put forward their valuable opinions. Marshman said: "I have to communicate with paper brokers once or twice a week. We mainly discuss market trends and current problems."
When working with paper distributors, both publishers and printers can issue paper orders or invoices. They can even handle invoices and shipping issues after they have used paper. Of course, the printing house will also provide rebates and discounts based on the publisher’s needs.
Wiemers suggested: "Make sure that the paper mill is allocating your paper, not the wholesaler. If you choose a printing factory to charge for storage, you must look for suppliers who can provide you with products in time to reduce paper. The inventory cost."
Another advantage that paper distributors can provide is that you bring a variety of paper options. Keep in mind that while paper distributors are serving publishers, they also get paid from paper mills (publishers order papers and payments through wholesalers). This requires you to start the process of finding alternative paper. Although distributors can provide you with products made by many paper mills, they are actually in a rather awkward position. In order to meet the needs of publishers, they may have to subvert previous relationships with paper mills.
Do not forget what they did for you, and customers are always changing the type of paper. Therefore, when you have a better choice, don't be embarrassed to talk to your supplier.
In addition, you'd better be able to grasp the latest developments in the paper industry, understand the price rise and fall time, and then see if your wholesalers or middlemen can take appropriate response measures. In this way, you can determine whether they are useful to you.