| Cover Story |
| Columns |
| Datamax Corp.: Labeled an Innovator |
| Electronics | |||
| By Brooke Knudson | |||
| Wednesday, 19 March 2008 | |||
![]() Datamax assembles barcode and label printers at its 70,000-square-foot headquarters in Orlando, Fla.
If there’s one aspect Datamax Corp. Vice President of Operations Rich Newman wants end-users to know about the business, it’s that no matter what features they are seeking in a label or barcode printer, Datamax has the solution. Orlando, Fla.-based Datamax designs and manufactures printers and supplies for barcode and RFID labeling, including thermal demand printers, label, ticket and tag materials. Printers range from entry-level and midrange units to high-performance systems and specialty-printer platforms. In addition to printers, the company markets a line of thermal transfer ribbons and paper stock. The company supplies product and supplies to clients in the industrial, healthcare, automotive, ticketing and retail sectors. Its products are distributed through a network of resellers in more than 100 countries. “We like to think that we have the best-quality printers on the market, and we have some really unique engineering capabilities,” Newman says. “Surprisingly, there are a number of different options you can put on barcode label printers and customers often require unique configurations.” In 2004, Datamax was acquired by Dover Corp. and now functions under Dover’s Product Identification & Printing Group. As a subsidiary, the company has five metrics it works to achieve: inventory turnover, return on investment, earnings growth, operating margins and working capital. “There is a lot of focus on bottom line,” Newman notes. “I think we have a good culture in the company. We try to work together and identify what consumers need and provide that for them if we can.” In total, Datamax manufactures eight series of printers, although Newman says the company is constantly surveying the market in search of new growth opportunities. “We try to analyze the market and determine what things the customer is looking for and are they things that can be easily added,” he says. “It could run a whole gamut of opportunities. We have a small product that only prints labels and we have industrial-size machines with various user interfaces.” Typically, Datamax launches new products less frequently than it upgrades its existing family of printers. Today, Internet-ready features and wireless technologies are among the most demanded features. “About every other year, we introduce new product, and more frequently than that, we add enhancements to our existing products,” Newman asserts. “Today, Ethernet interfacing is most popular. We can provide wireless capabilities to our printers without any major redesign, and wireless options are increasing in volume.” Newman estimates that close to 50 percent of the company’s printers are custom built. Because Datamax caters to a variety of industries, it must provide a variety of configurations and be able to add on features quickly. “[Some clients] say, ‘Send me a printer, with internal rewind or wireless,’ and our engineering group has done a really good job to add various options with a minimum assembly time,” Newman explains. Although the printer’s small, modular design makes it ideal for smaller work areas, customers can rely on it for commercial applications. The printer comes with a choice of two different speed configurations, an LCD graphics display, an RFID option, seamless integration with other programmable systems and three connectivity options, which allows it to be integrated into any network. The M-Class Mark II is simple to operate and can come equipped with several connectivity options such as wireless, Ethernet and USB Host. The printer can also be upgraded to include internal rewind, peel and present, cutter and increased flash capabilities. Each series is assembled on its own production line. Utilizing lean manufacturing methodologies, Datamax strives for short lead times and can assemble a printer in a few hours. The company operates a kanban program to manage its production system, increase productivity and shorten lead-time. “What we focus on is best business practices,” Newman maintains. “We use value stream analysis to try and eliminate errors, get cost reduction and inventory turnover.” Additionally, Datamax operates full-service converting facilities in Robinson, Ill., and in Harlow, U.K., that can adapt labels, tickets and tags from a variety of paper and synthetic materials in order to meet specific customer specifications. Clients with special labeling requirements can also take advantage of its in-house art, plate-making and preprinting services. Because Datamax’s purchasing team is organized by commodity, it can accurately identify the right suppliers for the right cost. “[The purchasing team’s] role is to work with suppliers to reduce costs and verify they can deliver within lead times,” Newman explains. “We try to put supplier agreements in place and buy inventory as we need it. “We stratify suppliers in three layers: vendors, suppliers and partners,” Newman explains. “Vendors are someone who we would call up and ask to supply our packaging materials, for example. Suppliers might build uniquely designed material, and we would issue purchase orders with multiple release dates. And our partners provide us with our critical materials. From a materials perspective, we try to work with [each] and provide them with as much information as they need to support us.” ScanSource, an international distributor of specialty technology products, made the winning bid and received the printer, which was plated in gold. Proceeds of the auction were donated to the Make-A-Wish Foundation of Central and Northern Florida. |
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