July 11, 2019

	Heidelberger Druckmaschinen AG 

Postfach
69159 Wiesloch
Germany

Gutenbergring
69168 Wiesloch

Matthias Hartung

Phone +49 6222 82-67174
Fax +49 6222 82-9967972

Matthias.Hartung@heidelberg.com
www.heidelberg.com

  Heidelberg expands subscription service, taking care of all
  consumables-related logistics operations for customers 

•	App-based vendor-managed inventory solution for consumables delivers enhanced benefits for Heidelberg Subscription customers
•	Customers are more flexible and have even less capital tied up
•	Significant optimization of inventory management for pilot customer Lensing Druck
•	Further expansion of subscription service is a key element of digital transformation at Heidelberg

The first print shops to try out the Heidelberg Subscription pay-per-use contract model are now seeing positive results. A significant improvement in the productivity/performance of all customers already benefiting from subscription-based production has led Heidelberger Druckmaschinen AG (Heidelberg) to further expand its subscription service. The company is now offering to manage the entire consumables logistics chain for its subscription customers. This app-based vendor-managed inventory solution takes the contract model’s customer benefits to the next level. Customers have even less capital tied up in consumables, enjoy greater flexibility, and can focus even more on their own customers while Heidelberg takes care of warehouse management. The vendor-managed inventory approach also uses cloud-based interaction with the Heidelberg Assistant to give subscription customers complete transparency with regard to goods flows. Heidelberg is working with customers on an ongoing basis to develop this function using the design thinking process. 

Significant optimization of inventory management at Lensing Druck
Lensing Druck in Dortmund is a pilot user of the vendor-managed inventory solution and was also one of the very first subscription customers. Consumables stocktaking at Lensing is carried out using an industry-standard mobile device that runs the app developed by Heidelberg. Revised stock levels are automatically relayed to the Heidelberg Assistant. The Material Requirements Program (MRP) ensures sufficient stocks are available to cover the customer’s needs. “Since the launch in mid-May, our inventory management has been getting better and better. Optimized goods delivery means Heidelberg can plan supplies of the materials required virtually in real time while also conserving resources,” says Lensing Druck’s Managing Director Robert Dembinski. At the same time, purchasing and logistics processes are also becoming less complex for the customer. 

Further expansion of subscription service is a key element of digital transformation at Heidelberg
Due to the positive response from customers, Heidelberg is quickly and systematically further expanding the portfolio of pay-per-use contract models. In conjunction with the vendor-managed inventory solution, Heidelberg also offers its customers the option of taking out subscription contracts for consumables even without a press. Further development of the portfolio and the associated capture and analysis of usage data from numerous presses means that increasingly accurate forecasts can be made for deliveries and, ultimately, material production. As a result, Heidelberg is able to develop ever more customized services relating to the life cycle of its equipment portfolio.
As for the Prinect workflow, Heidelberg is gradually converting the entire operation from the sale of individual licenses to contract business with a monthly usage-based charge.
“Contract business has become a firmly established part of our solutions portfolio and also the main driving force behind our digital transformation. Our customers benefit from improved productivity and can focus more closely on their own customers’ needs. The subscription model gives Heidelberg a stable sales volume and makes it less dependent on economic cycles. At the end of the day, it’s a real win-win situation,” underlines Professor Ulrich Hermann, member of the Management Board responsible for Lifecycle Business and Chief Digital Officer at Heidelberg.

More information about the Heidelberg subscription model is available here: www.heidelberg-subscription.com

For further details (in German) about Lensing Druck, go to:
www.lensingdruck.de

Figure: Since Heidelberg also started managing Lensing Druck’s entire logistics chain for consumables, the subscription customer has been able to significantly improve its inventory management. From left to right: Lensing Operations Manager Ascan Schulz, Heidelberg Business Specialist Maximilian Schnippering, Heidelberg Project Manager Business Development Alexander Driss, and Lensing Head of Printing Guido Thesing.

Heidelberg IR now on Twitter:
Link to the IR Twitter channel: https://twitter.com/Heidelberg_IR  
On Twitter under the name: @Heidelberg_IR

Further information: 
Heidelberger Druckmaschinen AG
Group Communications
Matthias Hartung
Phone: +49 6222 82-67174
Fax: +49 6222 82-9967972
E-mail: matthias.hartung@heidelberg.com