THE DATA FRONT

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72 | l&l Federal Etiquetas Electronicas is ISO 9000 certified and is continually working to achieve more certifications or find other ways to improve quality. In 2008 the converter earned the PROFEPA certification – Procuraduria Federal de Protection al Ambiente – a federally backed certificate given to Mexican manufacturing companies that meet a benchmark for clean processes. SA 8000 certification Enforced by Social Accountability International, the SA 8000 standard sets a global benchmark for working conditions that awards certificates of compliance through a third-party auditing service. The countries with the most certifications to SA8000 include Brazil, India, China and Italy. For two years prior to this accomplishment, Etiquetas Electronicas gathered and documented detailed information on its manufacturing methods, focusing on air, water and toxic waste issues. Etiquetas Electronicas is required to compile and submit updated reports each quarter while the PROFEPA is valid. After three years, the company will need to re-apply. ‘This certification process has pushed us to have even more order and to be more efficient in our manufacturing,’ explains the owner Casillas Sanchez. ‘We invested in this process improvement, firstly because our customers began to request information, and secondly, we saw there would be financial benefits to our bottom line. We have reduced our waste and commit fewer mistakes.’ Sanchez says that employees have been eager to participate because they like to be a part of it. ‘It gives them ownership,’ he says. ‘And a sense of working together.’ Alliances The switch from local buyers to a single appointed international buyer has driven the increase of acquisitions and strategic partnerships within the label and packaging industry. To bolster its competitiveness in the midst of this evolution, Flexoprint established an alliance with Brazil-based Baumgarten Group and the Swiss converter Banfix, part of the tesa group, in 2002. Together the converters share production for the Nivea brand across three continents. ‘We formed this alliance in an attempt to follow the structure of these multinational companies,’ Flexoprint’s Fernando Aranguren says. ‘One approval is easier for our customers.’ In their attempt to standardize their labels worldwide, CPGs will look for other alternatives if they cannot find consistency. With the Nivea brand, the three alliance partners exchange color targets and other technical information to ensure that packaging is identical no matter where it is sourced from. ‘We have become a better supplier through learning how to service these big global CPGs,’ Aranguren explains. ‘It has helped us to focus on efficiency and to shorten response times with less lead-time. In the brand owner’s transition from local to global we have learned to be more flexible and provide better service than our local competition.’ Aranguren comments on the choice of an alliance strategy: ‘An acquisition can be a headache and no one wanted to spend the money on a greenfield site, so the only choice left was to put our services together. We have a similar technical base and share business values on important issues like technology investment and employee training. For Flexoprint, the alliance was a turning point because the experience and infrastructure that the experience has brought to our company is invaluable.’ In a less formal partnership, Impresos Uyeda has a joint venture agreement with Labelhouse, which is capable of producing shrink sleeve labels. Because Uyedas plans to explore the possibilities of digital printing first, it will not be investing in shrink sleeve equipment. Masayi at Uyeda says, ‘To service our customers in this area of product decoration, we’ve chosen to work with Labelhouse; they have the technology. And once we invest in digital printing, we will be able to share that technology with them.’ Obstacles Mexican converters highlighted support from suppliers as the most difficult obstacle to success; most view globalization as an opportunity to overcome this challenge. Villar from young Promographics says, ‘Globalization is an opportunity to have access to new materials suppliers that offer a fresh selection. And in this way we are able to move past the big suppliers that don’t provide enough support.’ Raw material costs were noted as the next most frequent barrier to growth. Jose casillas Sanchez of Etiquetas Electronics with Federal Green certificate Hernandez from Todo en Etiquetas believes that, ‘globalization is good because not only does competition make our company better, as we grow and continue to consume more supplies, we are able to get a better price. And this allows us to compete even better.’ Price pressures were listed as the next biggest problem in the market. Yet Nueva Latina says the dynamics have changed some recently. Comments Juan Antonio Alducin, ‘Brand owners are no longer buying less expensive labels from Asia and Latin America. We have seen them begin to look within the country because of the recession.’ In the last year, TLMI’s past president John Hickey of Smyth Companies, and current president Frank Grace of Multi-Color Corporation, have both said that the number one way for North American converters to diversify is to look outside the region. And, while this may be true, one closer step could be a partnership with an eager and competitive converter to the South across the Rio Grande. A relationship, at the very least, would be helpful. In fact, to foster this notion, the TLMI has introduced a new Global Committee that will guide the association across borders to strengthen the bridge between the smaller markets within the North and South American regions. Committee Chair, John Wurzburger, says, ‘The association’s converter and supplier members will benefit from forming relationships with their progressive Latin American counterparts. Borders are shrinking and globalization continues to be a central issue.’ Labels&Labeling
“ In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment.” Charles Darwin World Label Printing Awards Excellence in Printing - 2009 Coming Soon... a prestigious new annual awards publication Every year each national association in the label industry runs its own awards ceremony. The winners of these awards are then entered into the World Label Awards. There are 27 categories and the winners are selected once a year by the World Label Awards committee. In June 2009, for the first time, the 27 World Label Award winners will be announced in a dedicated official publication produced by Labels and Labeling in partnership with the World Label Association. This magazine will show the very best labels in the world, which will be a valuable resource for brand owners and leading label printers. The magazine will be distributed to over 5,000 global brand owners and 3,500 leading printers throughout the world. Limited advertising opportunities are available for companies aiming to target the top brand owners and label converters in the industry. For more information on how to be a part of this prestigious publication please contact the Labels Team: Tel. +44 (0)20 8846 2818 email sales@labelsandlabeling.com
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THE DATA FRONT

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