15. Case: StrongPoint Labels

15.

L E I F P E R S S O N , S T R O N G P O I N T L A B E L S

Case: StrongPoint Labels

StrongPoint Labels has continuously invested in digital presses and was the first firm in the Nordic region to buy HP Indigo 8000. The company is based out of newly renovated premises in Malmö, which receives study visits from all over the world. CEO Leif Persson sold digital handbooks with the help of Rolls-Royce in the 1990s and has seen customers’ pursuit of variation drive an exciting market.

– We make more money with our digital presses than with other tools. It is incomprehensible to me that not everyone has digital print today. But it’s very important to work together with the customer in this process, he says.

TELL US ABOUT STRONGPONT LABELS, WHAT DO YOU DO? – We produce, market, and sell labels to all industries in Sweden and Norway. We help customers with the entire business process of self-adhesive labels, from design to print, says Leif Persson.

HOW IS THE LABEL INDUSTRY? – Stimulating and developing! I’m basically a salesman and enjoy being out meeting customers. Our flexibility and breadth make sure that we meet all kinds of customers. It’s great fun, from slaughterhouses to drug stores to startups and everything in between.

HOW DO YOU HELP YOUR CUSTOMERS? – We are an important part of their products. In the store, consumers make many decisions based on the label and we will make our customers’ products more attractive. Imagine when you go to buy a bottle of wine. What will make you pick a certain bottle from the long row of bottles on the shelf? Nine out of ten answers: the label.

WHEN DID YOU START THE DIGITAL JOURNEY? – In 1998, I was a salesman at Elanders that had digital presses from Visutech/ HP. it was there that I realized the greatness of digital, even if it at first was hard to convince customers about the digital quality. Luckily, we did manuals for Rolls-Royce at the time. I brought those to my other customers and kindly pointed out that if digital print was good enough for Rolls-Royce it might be good enough for them. I soon realized that the customers wanted smaller editions and chased variation.

HOW DID IT CONTINUE? – The demand of smaller editions and more variations have increased. Regarding more SKUs (Stock Keeping Units) digital is totally invincible. I was at Sydetikett around 2007 when we had great success with digital print. We were early adopters, sold a lot, and made good money. Sydetikett later joined PSI Group that became StrongPoint and kept growing within digital print.

WHICH LESSONS HAVE YOU LEARNED GOING FROM ANALOGUE TO DIGITAL? – I cannot understand in my mind that anyone in our industry doesn’t have digital printing today. It’s totally incomprehensible. I also think that they who buy digital do it in a far too divided mode. They put digital print in one house and traditional print in another house. It’s a mistake. Buy digital and use it! Widen the range and the offer to customers, work toward flexible packages and see the opportunities. It’s where the money is. StrongPoint makes more money with our digital presses than with other tools. We use them as much as possible, of course! Speed is our trademark. We have extremely short delivery times thanks to digital and our customers benefit from it.

ANYTHING ELSE? – We never talk tech with customers. We simply find the best solution in every case. And don’t just buy a digital press and think that everything is fine. You have to do more! You have to bring the digital values into the business plan and give the customers a whole entity. Work together with your customers.

HOW HAS IT CHANGED OVER TIME? – Previously, digital printing was thought to be for special products only. When we bought HP Indigo 8000 in 2016, we decided to also run commodity. We must be effective making a simple price tag for a food producer as well. We have spent a lot of time creating good flow rates at prepress and at the order office so that the products quickly get into the machines and out on the market. We have people around who prepare this. It’s in motion all the time. That is kind of a rethink concerning digital print. We have gathered all our printing in one production area instead of dividing it. Everything is gathered in the same world. HP has ranked us #1 in terms of using our machine, so we are doing something right.

HOW IMPORTANT IS THE SUPPLIER’S ROLE WHEN INVESTING IN DIGITAL PRESSES? – Very important! Visutech has helped us massively when it comes to making the right decisions. I could have bought three flexo presses for the price of one digital press but chose to continue investing in digital. We see clearly that our output is way bigger there. Visutech has helped us to think correctly in our investment, when it comes down to our specific bags of jobs and strategies. They have compared digital print with inkjet and flexo to see what’s best for us and have supported us through their professional staff.

WHY DON’T ALL COMPANIES TAKE THE DIGITAL ROAD? – The investment is the threshold. Many companies compare with what they have today. That’s wrong. Instead, they should look at how much they can bill per hour and what they can deliver to the customers per hour. You can deliver so much more per hour using a digital press compared to flexo. Therefore, you will make more money by the hour. To me, that is a simple equation.

HAVE YOU BEEN USING VISUTECH ACADEMY? – Absolutely, I have three guys there getting an education as we speak. It’s good and we’re satisfied. They have different programs for different levels, depending on where in the transformation you are. We’ve come a long way and made a special education with Visutech, raising the bar. It is a good collaboration where we benefit from each other. I feel safe and confident with Visutech and HP, they’re really smart people and when they introduce something you know it is well thought through. It’s not me who should think about and invent these things, it’s their job and they come up with stuff that is well intended and suited for my market. It’s a sense of security.

DID YOU READ THE LAST BOOK, VISIONS & TRANSMISSIONS? – I read parts of it and Jan-Olof is right about many things. It’s in the low economy, when it really hurts, that companies begin to invest. The book can help people in the business going through the transmission from analog to digital. Increasingly more people will walk down that road. It’s just a matter of time.

WHAT ABOUT THE DIGITAL QUALITY TODAY? – It’s best if you look at the options. You can be so creative.

WHAT DOES THE FUTURE HOLD? – Still only 10% of the labels worldwide are made digitally, so there is a lot left to do. At the same time, you cannot help but wonder what will replace labels far into the future; surely new technologies and new ideas will arrive. We’ll continue to be a part of the customer’s success. Digital technology enables you to work easier, faster, and more environmentally friendly all the time. It feels inspiring.

COULD YOU NAME THREE KEYS TO SUCCESS WITH THIS TRANSFORMATION? – One, do not see digital as a single technique but rather as your everyday life. Make a business plan for your entire business where digital is included. Two, do the homework and calculate how much you can bill per hour with your new tool. Suppliers can help you with that. Three, don’t make a fuss about it! Build long term and look at the opportunities.

••• SHORT FACTS

Company name: StrongPoint Labels AB Employees: 50 in Sweden, 35 in Norway CEO: Leif Persson Parent company: StrongPoint ASA Revenue: Circa SEK 195 million a year Production: Malmö (3500 square meter) and Tangen in Norway Digital presses: One HP Indigo 8000, one WS6000, one WS6600 and one WS6800