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Heidelberg Launches Profitability Enhancement Program For NexPress Customers

Tuesday, April 08, 2003

Press release from the issuing company

NEW YORK, April 7, 2003 - Heidelberg USA today launched at On Demand in New York (April 7th - April 9th 2003) a Profitability Enhancement Program that is designed to share tools and information that will help NexPress 2100 customers markedly reduce costs and increase profitability. The new program defines, based on volume, the maximum cost per page a printer will pay over a 12-month period for DryInk and Operator Replaceable Components, which are key to the overall NexPress solution. It provides the mechanism for the operator to maintain the press, optimize quality, maximize uptime and control operating costs. Through proper press management, operators can drive page costs down to the low single digits. "Heidelberg understands that more than ever, customers face staunch competition and that cutting and controlling costs is paramount to preserving profit margins," said Bill Blair, senior vice president of Heidelberg USA Digital. "We view a total cost of ownership as vital to this cause. That's why we developed a program that aims to assure that from the time NexPress equipment is installed, customers have the ability to manage and control equipment operating costs and reap the rewards for effectively doing so." Under the program, Heidelberg guarantees the annual ORC and consumables cost per page will not exceed a specific amount for customers who agree to basic operational standards for the NexPress, including: Provides trained operators Performs required machine maintenance Inputs usage data into the user interface Provides remote access for service Follows cost reduction recommendations "These are simple steps that any owner who runs a best-in-class business performs everyday. Additionally, our volume requirements are realistic and based on what many of our customers are currently doing," said Blair. "So attaining the lower costs is more achievable for any owner than through competitive cost structures." If, for example, a customer runs a monthly average between 100,000 and 249,999 pages, the maximum cost per page would be 6 cents. Likewise, for volume between 250,000 and 499,999 pages would be no more than 5 cents a page and volume exceeding 500,000 pages would cost 4 cents per page. Customers will not pay more than these ceiling amounts. However, unlike "click charge" programs, customers can achieve lower costs by wisely managing the press and Heidelberg will work with customers to help them capture these cost savings. Through a network connection to NexPress, each customer of the Profitability Enhancement Program will have ORC and consumable yield monitored on an ongoing basis. If there is significant variance on the average yields, local Heidelberg service personnel will work with the customer to assess cost drivers and develop a cost improvement plan. Heidelberg's field service organization will then work with the customer to implement and monitor the agreed plan. Heidelberg also will provide on a regular basis, cost per page analysis to every customer of the program along with trend information and a benchmark information with other NexPress 2100 customers. These efforts are designed to help customers achieve costs below the ceilings put in place by Heidelberg. If, however, at the end of 12 months, costs exceed the maximum, customers will be reimbursed the difference. Heidelberg's Profitability Enhancement Program is immediately available. Customers seeking further details can contact Vahaaj Khan, Director Product Management, Digital Printing, at 770-419 6590 or visit www.heidelberg.com.




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