Producing top quality print is only a part of running a successful print business, in fact these days there is little to differentiate the quality of output from most printers. It is in the business of print that sets a printer on the road to a sustainable business. Trade-only operation LEP is one printer that has fully embraced business tools to develop itself, and in so doing has created a growing business that now serves an increasing number of clients – other printers – from all over the country.

LEP has a highly developed business model that is based on lean manufacturing, with everything in the factory working to well considered systems and processes. This manifests itself in areas such as just-in-time paper – there is no paper store, just deliveries several times a day. Every piece of equipment from its offset presses to its CTP to its inkjet proofers to its folding machines is backed up by an identical piece of equipment. There is even a pair of identical Heidelberg platens. Everything is monitored, analysed compared, and adjusted. Automation and systems are the watchwords.

LEP was established by entrepreneur Mike Brooks in 2001, then in 2008 just before the GFC crashed into the world the company was bought by the ANZ Bank’s private equity arm. It asked John Bromfield, a chartered accountant of 25 years standing, with a background in the corporate world, to run the business for it. Bromfield had no experience of print, but eight years in private equity and in turning around businesses. He says, “I came in because I could see the opportunity. Even though in many ways it was obvious that print was a tricky business – high capex, low margin, ultra competitive – there was a clear opportunity to develop this business, through implementing lean manufacturing systems, through investing in and training the staff, and through providing a first rate service to our clients.”

So when ANZ tapped Bromfield on the shoulder to head up its new venture he came aboard. Neither he nor the bank could have forseen that just a few short months later the GFC would completely change the face of the print industry, coming as it did at the exact same time that the internet and smartphone combination came into play, diverting even more dollars away from print.

He says, “I could see that trade only printing was quite different to commercial printing, and offered great options for growth, but it had to be a highly automated, highly systemetised model. Gang printing for instance offered speed and cost benefits, if you could get the workflow correct. I could see too that if we stayed away from artwork and creation and concentrated entirely on manufacturing then we could develop a healthy business.”

The company has followed that strategy, it only works with prepared digital artwork. However Bromfield says, “Because we are strictly trade only this works fine. Our  core customers are commercial printers and graphic designers, so they have a good understanding of correct artwork files. This keeps our costs down and is a straightforward delineation of processes. We handle everything from the correct artwork onwards. This means we don’t get involved in costly time consuming activities which slow down the process.” Bromfield also tightened the product range, and then over time has slowly expanded it, so that today there are more than 5,000 different product options available.

Three years after ANZ Private Equity bought the business it was looking to sell, a periodic review at the bank had resulted in a decision to divest itself of non-core activities. By that time Bromfield had seen enough to jump at the chance to become the owner, so he headed a management buy-out. However that didn’t change the modus operandus, he says, “We still run LEP as if it were a public corporate business, with all the checks and balances, governance and procedures that corporates have.” This includes a board of directors where most are non-execs. He says, “This approach forces us into good disciplines, especially in processes, controls, management. We have a strong reference point to look to.”

In 2011 Bromfield was also looking to move the business  to bigger premises, and opted to treble the floorspace with a move into a new 2,500sqm premises just outside Maroochydore. “The new premises gave us the opportunity to look at every aspect of our business. We spent a long time working through the optimum workflow. Our factory has no fork-lift trucks in there. The throughput is as efficient as possible, with the aim of having as little human intervention as possible. This reduces costs, reduces mistakes, reduces waste, and increases productivity.” Bromfield describes it as a ‘scientific’ approach, with lean manufacturing implementation, following world’s best practice, and some production intellectual property of his own, which he is careful not to reveal.

The company now has 50 odd staff, operates around the clock 24 hours a day five days a week, and has a flat management structure with a team covering all functional disciplines. Bromfield says, “We operate with a team based environment, where the team takes responsibility for achieving the required outcome. So for instance we don’t tell the printers what to do, they know what they have to print and when and work it out for themselves. Giving people responsibility, trusting them to work things out because they are in the best position to do what really works, it creates a sense of ownership. I really believe in staff development, I know everyone says that people are their biggest asset, but we walk the talk.”

Last year in fact LEP took the entire production staff offsite for a week and went through a whole week of staff development, training, team building, and feedback. Bromfield says, “Investing in our staff is one of the key foundations of this business.” And it is paying off, staff turnover is very low, and whenever a position does become vacant applications are received from far and wide, Bromfield says, “People know we are a good business to work for.”

During what was termed Manufacturing Excellence Week the production and manufacturing team committed to the goal of earning world class manufacturing status. Bromfield says, “Since then there has been a buzz of excitement as to how we can achieve this. It is really our team of people that have been instrumental to a number of initiatives that have resulted in producing the highest quality day in day out, and on time.

One of these is the introduction of a matt varnish on magazines produced on a matt stock, which has resulted in an improved product due to the varnish protection against scuffing, as well as quicker drying times and so faster turnaround time out the door.

Bromfield says, “We cut out valuable time in the whole process all at no extra cost to the customer. It became a real win-win, for us and the customers, as we then introduced a range of matt stocks for magazines with a superior matt varnish finish.”

Since Bromfield has been with LEP, the company has achieved consistent growth, something that many printers long for. He says, “Maintaining margins is a challenge, because print prices are not rising. So to ensure the business is sustainable we have to look at keeping our costs down. We don’t do this by slashing wages, that is the wrong approach on so many levels, we do it by optimising our workflow, by being smart in what and how we produce, and primarily by working hard to keep our customers happy, so they come back for more. Trade printing is a little bit different to commercial printing, because a lot our customers are commercial printers. They know what quality is and they know what service is.”

LEP is far from the only trade printer in the country, so what is the differential? Bromfield says, “That is what we have coined the LEP Advantage, which is an umbrella term to host all the benefits of dealing with LEP. These range from guaranteed next day delivery, to printing on latest technology both offset and digital, to our low everyday prices, to our professionalism. It means being able to order 24 hours a day from our extensive product line, our environmental credentials. In short the LEP Advantage means that we are on the side of our customers, our mission is to make life easy for them and give them what they want when they want it, and this is why we are growing our business, because this strategy is appreciated by the market.”

LEP Online, which is LEP’s fully integrated online ordering system, has been developed specifically for LEP customers. It is an integrated web-to-print and MIS. It’s where customers can place and track their orders, and behind the scenes is part of the production planning and dispatch process all on one super-fast, seamless and efficient system that the company has developed itself. LEP Online also allows the business to track its performance so it knows if it is meeting customer expectations.

Bromfield says, “In February 97 per cent of all orders were dispatched on time. Not only that, 80 per cent of these were dispatched before their estimated dispatch date. Our team certainly works hard to provide the reliability needed by our customers, and maintain the high industry benchmark standard we’ve set with the systems, equipment and processes we’ve put in place. .

LEP has introduced a number of customer-focused initiatives aimed at providing them with the business advantage they need in today’s competitive market.  One of the more recent additions is the Guaranteed Next Day Dispatch range.

Bromfield says, “Our customers tell us they really need to know that they can rely on a supplier that will get the goods to their customer on time. So we set to work to offer the largest offset range of guaranteed next day dispatch products.

We’ve-designed our production planning process and ordering system to ensure customers will have their jobs dispatched the next day, giving them peace of mind and reliability unmatched.

We actually now guarantee more than 200 products in our ‘‘next day dispatch’range. All of which are core offset products, they are staple products to any print supplier’s range including business cards, flyers and stationery. Printers simply place their order with press ready artwork by 10am and we will guarantee to have their order dispatched and out the door the next business day.

DOUBLE RELIABILITY

Back of shop, continuous investment in infrastructure means LEP has everything under one roof and there is no single point of failure in the company’s manufacturing process, which runs 24 hours a day.

The modern and state of the art facility features two A1 Ryobi Offset presses, two Agfa CTP systems, two Epson proofers, and two Heidelberg cylinders and two Heidelberg platens, and full suite of finishing equipment. There is a back-up for every piece of equipment so that LEP won’t let customers down in a plant that operates 24 hours a day five days a week.

Bromfield says, “We bundle jobs, split jobs, prioritise jobs and add the customer’s logo to orders, so it looks like it comes from them – at no extra cost and part of the standard service.”

LEP’s continuous investment in the latest equipment and plant resulted in the recently installed Digital Print Centre featuring the HP Indigo 5500. This opened a host of new products to LEP’s stable of business cards, flyers and magazines in gloss, matt, plastic, loyalty card and recycled stocks  available in quantities as small as 50.

Bromfield says, “This is trade printing at its best, producing quantities as low as 50 items which a couple of years ago would have been unheard of. But that is what our customers are asking for. It just shows how the market has changed and how LEP has embraced the changes to meet market demands. We have only really just kicked off our Digital range, and there is so much more planned for the next twelve months.”

TRADE ONLY

One thing that won’t change at LEP is its focus on supplying to the trade. Bromfield says, “We have turned away some large potential work simply on the basis that the customer was not a trade supplier. We have built our business on supplying the print trade and it’s simply not our business to supply end users – not only are we not set up for it, we wouldn’t do anything that would go against our customers’ interests, we are committed to long term partnerships with printers, not short terms gains.

FUTURE PLANS

LEP has a large national client base, as well as some international customers. Distance is no longer a barrier due to its system efficiencies that have enabled us to deliver to printers wherever they are. Bromfield says, “We have been rewarded with good growth and a lot of loyal clients throughout the years. So we’re putting everything back in to support them and their needs – such as investment into our back end system to enhance ordering and service experience, along with new product initiatives and innovations, alongside the continuous investment in plant and equipment.

“Wherever the market is going we will be changing to adapt and support our customers.

“We have big plans for further growth but underlying everything we do is that we are at our core a trade printing specialist and it is something we do well and will always protect.”

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