A few weeks ago, consultant Henrique Alvarenga commented on the technological advances we have witnessed and the dramatic way in which these are expected to impact our lives in the future.
This continuous evolution in the area and its consequent transformations are already considered by many as the beginning of the fourth industrial revolution, which differs from the previous one in terms of speed, scope and impact.
In fact, we have already experienced the beginning of these changes in our daily lives. The almost complete diffusion of smartphones and the gradual disappearance of Blu-ray, previously considered innovative, are symbols of these new times. Technology changes quickly and its applications seem to have no limits. In the supply chain, the reality is no different, as exemplified by consultant Fernanda Monteiro in the post “Technology in road freight transport“, which highlights the first delivery of products by an autonomous truck. In this way, the previously consolidated business models are confronted with innovations that lead companies to rethink the way they serve their customers.
One of the markets that has experienced this reality is publishing. In its recent past, the book industry has faced two major developments that have had significant effects on its operations. The first was the application of e-commerce to the sector, as represented emblematically by Amazon. The second, also with a large participation of the American company, refers to the entry of e-books in the market, made possible by the creation of electronic reading devices (“e-readers").
Despite the changes and consequent adaptation needs, the apocalyptic predictions for the printed book market have already lost strength. According to the records of the BookScan data system, created by the Nielsen Company to monitor information from the book industry, it is already possible to observe a decrease or stagnation in the sale of digital books in the United States for the year 2015. Some believe that this occurred mainly due to the difficulty in negotiating content rights. On the other hand, the production of physical books, previously doomed to an end, moved in the opposite direction, with a significant increase in sales, returning to 2011 levels.
Figure 1 – Consumption of books in the United States
Source: Nielsen – 2015 US Book Industry year-end review
These analyzes demonstrate, therefore, that there is still room for other transformations in the sector. And it is precisely in this scenario that one more innovation dedicated to the physical book market may gain strength over the next few years: book printing. on demand. It may come as a surprise to many, but the technology has been used since 2006, the year in which On Demand Books put its first equipment (Espresso Book Machine – EBM) into operation, one of them being in the Library of Alexandria.
About five minutes is the time needed to print a book, which can be chosen from a collection that has more than seven million options in the most diverse languages. Once again, technology is breaking paradigms. If before large investments in assets, added to the costly transport and storage operations, forced publishers to produce books on a large scale, that is, titles with high sales volume, guaranteeing the profitability of the product through economy of scale, with this new equipment many of these steps become unnecessary.
This was the case of the traditional French university publisher Les Puf, specializing in books on the humanities and social sciences. The company had for decades a bookstore located in the center of Paris, a place that was used for years as a meeting point for French students and intellectuals. However, with the rise in rents in the city and strong competition from e-commerce, the establishment saw its profits plummet, being forced to close its activities. The decision, however, was not final. With the help of technology, the bookstore reopened, not far from its former location, this time in a reduced space (72 m²) and with a new proposal: sale of books made on the spot.
If in some markets this make-to-order production strategy (manufacturing according to order) generates sales losses, due to the longer delivery time commonly required, and/or increased manufacturing costs, due to smaller batches, the same does not can be seen in this example. Everything happens very quickly and efficiently, which allows the company to offer a catalog with around 5 of its own books (in addition to 3 million other titles chosen from the content made available by the machine manufacturer) without generating complexity in its operations. . It is also worth noting that from this exclusive portfolio, 2 titles were unavailable, given the impossibility of affording, in the classic model, the production of a copy that sold 10 units a year.
Once again, technology makes it possible to rebuild the way companies operate, breaking with old trade-off's established in traditional business models. This mechanism for postponing production to its limit, also known as postponement manufacturing process, however, is nothing new. In the academic literature, the practice has been known since the 50s, while reports of successful cases emerged with greater intensity in the 90s. Even so, for many industries, the limitations for the application of this practice were (or are) still significant, being crucial the role of technology in the search for new horizons, previously unimaginable.
In addition, another highlight in this example refers to the elimination of some links in the chain, previously considered essential. With the availability of books online and direct production at the point of sale, we notice that the manufacturing unit becomes expendable, consequently eliminating the processes of storage, distribution and storage, that is, a true transformation in the supply chain, which passes to have a much simpler management.
Video 1 – Express book machine
Source: Youtube
This is, however, just one more example, among many others, of how technology has been a true transforming agent in our days. A small sample of how life can still change radically in its most diverse aspects. Naturally, the speed of this disruption is still unknown, but companies need to be ready for the new, as the fourth industrial revolution still promises major transformations.
References:
https://ilos.com.br/web/copia-manufatura-compartilhada-em-tempos-de-baixa-demanda/
https://ilos.com.br/web/tecnologia-no-transporte-rodoviario-de-cargas/
https://ilos.com.br/web/postponement-como-mecanismo-de-reducao-de-estoques/
http://exame.abril.com.br/negocios/livrarias-comecam-a-imprimir-livros-na-hora/
http://br.rfi.fr/cultura/20160629-livros-impressos-na-hora-renovam-tradicional-livraria-de-paris
http://www.nielsen.com/us/en/insights/reports/2016/2015-us-book-industry-year-end-review.html
http://ondemandbooks.com/ebm_overview.php
ZINN, Walter. Delaying the final assembly of products as a marketing and distribution strategy. Business Administration Magazine, São Paulo , v. 30, no. 4, p. 53-59, December 1990. Available in . accessed on March 0034, 75901990000400006.
