Decisions about how and where books are manufactured aren’t always top of mind until a disruption forces them to be. That disruption could be a missed delivery date, an unexpected freight increase, or a printer pushed past capacity. For independent publishers, those moments expose how much risk is embedded in choices that were often made to save a few dollars or simplify a workflow.

In this Q&A, David Hetherington, vice president of global business development at Books International, discusses the points where manufacturing and supply chains most often fail and what publishers can do to reduce that exposure. He outlines why total cost, cash flow, and long-term partner relationships matter more than optimizing any single line item, and how publishers can position themselves to respond when market conditions shift.

What are some of the biggest risks publishers face today when it comes to manufacturing, logistics, and supply chain management?

Publishers too often make supply chain decisions based on the cost of individual functions rather than taking a holistic view and looking at the total cost of ownership in time and money. The publishers’ interests are best served by concentrating as much of the supply with a single organization rather than building a supply chain that assigns different functions to different organizations because of the perceived economy. The more links in your supply chain, the more risks that something will go wrong, and your entire project may be derailed because of a broken link.

This is an especially important consideration where delivery dates are critical (e.g., author events, seasonal products). Saving a few dollars may prove to be of little consolation if one of the links in your supply chain fails and you miss a market-critical date.

One other consideration is to avoid overprinting rather than losing a sale. It is an unfortunate fact in the book business that we regularly overprint because of unrealistic sales forecasts and/or a quixotic search for the unit manufacturing cost that shifts your product P&L from a loss to a profit.

Better to lose a few sales than be stuck with mountains of unsold inventory.

Why is diversifying book manufacturing options (domestically and internationally) such a crucial part of building resilience?

Ben Franklin’s advice that “an ounce of prevention is worth a pound of cure” applies to book production as well as one’s health. Identify and establish relationships with multiple book manufacturers before you need them. The supply chain crisis prompted by COVID-19 found onshore manufacturers bombarded with demands from new customers, and while all were happy for the opportunities, the better manufacturers made sure that customers of long standing were given priority.

I cannot overemphasize the need to build relationships that are strategic rather than transactional. In the long term, it may well prove to be a wise investment to have manufacturing alternatives identified before you need them.

What common roadblocks do publishers face when trying to diversify their operations, and how can they overcome them?

Price is certainly an essential consideration, but there is also something to be said for considering the “chemistry” between publisher and manufacturer. You want to be comfortable that the relationship is productive, the parties are listening to and acknowledging the needs of each other, and avoid setting an adversarial tone, certainly during the introductory conversation.

Manufacturers are always grateful for new opportunities, but if the initial conversation seems one-sided or heavy-handed, it is not uncommon for one of the partners to recognize that the proposed relationship may not be a good fit and decide to politely decline.

Misunderstandings between business partners are inevitable, but you want to avoid overreacting. Your efforts should be focused on building bridges, not burning them!

What questions should a publisher ask when evaluating new printing partners?

New relationships should consider several factors. Obviously, price is a major but not the only consideration. You want to understand the paper options available from the manufacturer, which of the required services are done under the same roof, and those that may need to be sourced from other organizations (e.g., components requiring special treatments), schedules for new titles and reprints, freight costs, and of course, commercial terms. Depending on your size, paying a bit more to secure more favorable payment terms (Net – 90 vs. Net 30) is certainly worth considering.

One should never lose sight of the fact that cash flow is the single most crucial factor for a publisher’s survival, second only to sales, and that prudently managing your inventory investment is often the difference between success and failure.

Are there advantages to short-run offset or regional POD hubs that most publishers overlook?

In my view, short-run and offset are mutually exclusive terms. Added to this, we unfortunately confuse POD (i.e., sell first and print later) with digital printing technology. There are roles for all three manufacturing strategies but no “one size fits all” formula.

The manufacturing approach should consider several factors, starting with the needs of the individual title, including the following:

• Sales forecast (low, medium, and high)
• Suggested retail price
• Front list/back list
• Stage in the product life cycle
• Distribution channels/channel partner discounts
• Publishing vertical (e.g., adult trade, children’s, academic, higher education, K -12)
• Content
• Manufacturing specifications
• Schedule

What role do warehousing and distribution partnerships play in operational stability, especially during volatile periods (e.g., paper shortages, freight issues)?

Warehousing and distribution are the final link in the supply chain, and in many ways the most vital. A successful manufacturing plan is irrelevant without having a reliable sales, marketing, and distribution program in place.

Unfortunately, the number of full-service distribution options has been steadily shrinking, the size of “the bag” carried by the remaining players increasing, and securing a spot on the available shelf space is more of a challenge than ever. This is a subject worthy of a separate conversation.

This said, I would encourage publishers to have a carefully considered plan as to how they expect to reach each of the major channel partners, including national accounts, Amazon, and independent bookstores. In addition to these major channels, I encourage publishers to build their own e-commerce capabilities as soon as possible to build communities around their products and retain some of the margin they are now giving to other channel partners.

What are some emerging trends in book manufacturing that publishers should be paying attention to right now?

While things are quiet for the moment, there are no guarantees that this will last, and you should prepare accordingly.

While publishers are not presently contending with tariffs on products manufactured offshore, US book manufacturers are facing increased costs for offset plates, ink, parts, and select plant consumables, and publishers should expect to see their costs increase, albeit modestly.

Sustainability regulations introduced by the European Union (e.g., EUDR or the European Union Deforestation Regulation) are likely to add cost and certainly add complexity to the lives of paper mills, merchants, and manufacturing operations. If you are doing a significant amount of business in continental Europe or planning to, EUDR is something you need to understand and pay attention to.

If you could offer one piece of advice to small and independent publishers preparing for market uncertainty, what would it be?

Prepare for the unexpected and understand your production alternatives before you need them. Cultivate relationships with at least two book manufacturers so that you have options in the event of a tight paper market and/or schedule challenges. The key word here is “cultivate.” You want to build strategic rather than transactional relationships that are positive for all concerned.

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