DRIVING ON DEMAND PRODUCTION AT SCALE: MEET GELATO AND EXPLORE HOW GELATO-CONNECT CAN TRANSFORM YOUR PRINTED PRODUCTION

BLOG

15 May

GUEST ARTICLE WRITTEN BY Ralf Schlozer OF WHATTHEYTHINK

Procurement, workflows, and logistics need to be connected and optimized into one single workflow, as online print service providers need to be masters in cost-efficient and fast-turnaround print production spanning multiple sites and production devices.

European section editor Ralf Schlözer points out how, in a remarkable move, online print provider Gelato is now opening up its software solution and production platform, GelatoConnect, to all print service providers.

The printing world today is driven by a strong growth in the creator economy, which according to Goldman Sachs already is representing $250 billion in annual value creation, and the expansion of e-commerce. This has put digital printing into a position of strength and catapulted its relevance within manufacturing and global supply chains. As highly personalized micro-orders are growing in demand, new expectations are brought to production platforms and workflows.

Procurement, workflows, and logistics need to be connected and optimized into one single workflow, as online print service providers need to be masters in cost-efficient and fast-turnaround print production spanning multiple sites and production devices. It seems also consequential that online printers develop software and processes to facilitate this, although this is seldom shared. In a remarkable move, Gelato is now opening up its software solution and production platform, GelatoConnect, to all print service providers.

What Gelato Does

Describing Gelato as an online print provider falls somewhat short. Founded 15 years ago, the company created an on-demand production platform, initially for personalized cards, photo prints, and brochures.

Subsequently, the product range expanded considerably, including stationery, textiles, merchandise, packaging, posters, kitchenware, and more. Today, with all of the production partners around the world, Gelato’s total network represents roughly $3 billion in revenue and approximately $1.5 billion in total purchasing power of raw materials.

While Gelato offers online print services for the consumer market via its own brand (Optimalprint), the main thrust is towards channelling print output from creators and entrepreneurs wanting to reach the global consumer market over their e-commerce stores, as well as enterprises towards print service providers. Print buyers can use Gelato’s software and APIs to produce and deliver custom printed products, by connecting their stores to Gelato’s API directly or via an integration with leading e-commerce platforms such as Shopify and Etsy.

For print fulfilment, Gelato works with a network of more than 140 print service providers in 32 countries around the world.

The (almost) global footprint allows Gelato’s routing algorithms, that govern where the print files should be sent, to optimize for geographical proximity related to where the end-recipient is living as well as where there is the most suitable production capacity. Based upon these routing algorithms, the software selects a print service provider, thereby reducing shipping cost and environmental footprint. Additionally, the customers can avoid customs and border formalities.

Gelato is a software company and therefore does not own any printing equipment, linking print demand to print capacity just like Airbnb is connecting travels with the optimal hospitality service.

Introducing GelatoConnect

Running a global network of printers and fulfilment companies, Gelato has considerable experience in workflow solutions, from accepting customer files to fulfilment. Today, 90% of the production hubs are already using Gelato’s software for production and logistics for its roughly 10 million orders fulfilled in 2024.

With GelatoConnect, the company is now offering a complete production platform and software solution under one umbrella for print service providers. The software is now being opened up for production jobs not initiated by Gelato. The software wraps up 15 years of experience in procurement, digital print production, and logistics.

The software automates adjusting and optimizing files for print production and routes jobs to the best-suited printer. Press DFEs can be connected via APIs for production status and more. The software is product and machine-agnostic, an important advantage compared to many press-vendor distributed software, where functionality often relies on certain types of presses owned.

Data on shipments and materials used is tracked automatically. While throughput should be increased, the inventory levels should be reduced through better visibility of stocks and automated replenishment. The software also allows for performance analysis of presses, logistics, and business processes in general.

An important feature of Gelato Connect is that the software gives printers access to the Gelato logistics and shipping network, in an automated, integrated ordering system. The Gelato network has 60 carries listed and users can benefit from that logistics infrastructure, software connections, and, potentially, from postal discounts.

GelatoConnect is available as SaaS solution and comes with a monthly fixed fee with additional usage fees. Crucially, GelatoConnect is available to all printing companies, not just the production partners in the Gelato network. The software will become generally available at drupe, but has already received some important validations by signing up ESP in the UK, Press-Up in Italy, and the Exacta Group in Sweden.

To underline the benefits, Gelato commissioned McKinsey to conduct 92 print service provider interviews, including Gelato partners and non-partners.

McKinsey calculated that using GelatoConnect would double the profit margin of a PSP, from 3% industry average to 7%. According to Gelato, many PSPs can reduce material costs by 5 to 20%, and lower shipping costs by 10 to 25%. In addition, the software offers significant efficiencies throughout the production flow which adds further cost reduction potentials. Obviously, improvements will differ considerably case by case.

The Implications

GelatoConnect can surely attract new printing companies to the network. Although an extensive partner network exists in many countries, Gelato expects rising print volumes and accordingly the need for additional capacity. In addition, the range of print applications keeps expanding and printers with complementing production capabilities are needed.

However, the issues of small runs, short-turnaround production, and customization are getting ever more pressing for any printing company as business processes change and the creator economy is expanding.

Concerns about the environmental impact are mounting as well. Above all, cost pressure remains high. Since the software is open to all companies, it can be an advantage for companies to run GelatoConnect without being part of the network. Undoubtedly, Gelato has considerable experience in efficient on-demand production, which was an important input for the software. Furthermore, GelatoConnect is press type-agnostic and targeted at mixed environments. And giving users access to the distribution network is quite a unique feature.

GelatoConnect meets a raft of solutions in the MIS, CRM/ERP, and automation solutions space from large, global players like EPS and local players—in many tiers of functionality and prices. This choice can be confusing, especially as functions, implementation, and the effects on the implementing company are difficult to demonstrate beforehand. Case studies and user feedback can be a method to find out what to expect. A thorough analysis of required versus offered features and improvement potentials should follow.

Gelato will be exhibiting at drupa 2024 (Hall 9) and this might be the best opportunity to ask questions on the details of GelatoConnect or the big picture.

About: Ralf Schlözer is a technology analyst for print with 30 years’ experience in the industry and a passion for discovering new technologies and print applications. He is available for consulting and speaking engagements. Contact Ralf at ralf@digitalprintexpert.de