According to the National Association of Printing Ink Manufacturers (NAPIM), raw materials are roughly 60% of the cost of ink. With volatility seemingly becoming the new norm for ink ingredients, ink manufacturers are always looking for ways to protect their supply chain, and have prepared ahead for challenges.
 
There are numerous ways a company can protect itself from price increases. Developing an excellent relationship with suppliers is one approach. Marc Castillo, technical director for Braden Sutphin Ink, noted that working closely with suppliers is essential.
 
“We have established a strong alliance with our domestic and offshore raw material suppliers that allows us to leverage sourcing based on the value of the dollar,” Castillo said.
 
Combining resources is another means. For example, Sun Chemical and DIC combine their resources in purchasing and R&D, to ensure supply and develop new technologies.
 
“Together, DIC and Sun Chemical are very well positioned to meet the challenges of today’s raw material markets due to our global reach, our backward integration of key materials and the strategic approach we jointly take in managing the spend of the company,” said Ed Pruitt, chief procurement officer, Sun Chemical. “Our greatest strength is the quality of our procurement and technology teams, who work together continuously to identify new sourcing opportunities and better ways to use existing materials. We take a very proactive approach to maximizing value and protecting the total supply chain.”
 
Finding new materials to replace costly or short products is an approach that Superior Printing Ink utilizes.
 
“Exploring and developing reliable alternate raw material sources domestically and internationally is an integral long-term strategy for Superior,,” said George Varughese, VP of product development at Superior Printing Ink. “
 
Keeping operational costs in check is one area where INX is putting its efforts.
 
“From an operational standpoint, regardless of what raw material challenges come our way, we are always focusing our efforts to identify where we have losses (excess cost) in our plants through our growing Total Productive Maintenance (TPM) culture at INX International,” said John Hrdlick, COO for INX International Ink Co. “Every year these efforts help us to mitigate a portion of our rising costs in all areas of our business.”
 
Ken Klug, director of purchasing for Wikoff Color, said that having more than one supplier for key raw materials is critical.
 
“Wikoff’s practice is to utilize multiple suppliers for each of our major raw materials, building in protection in case of shortages or price increases,” Klug noted.