Xerox to build its own supply chain

277
John Visentin, vice chairman and chief executive officer, Xerox
John Visentin, vice chairman and chief executive officer, Xerox

Xerox CEO John Visentin has indicated that the Technology Agreement between Xerox and Fuji-Xerox will be phased out. Xerox will in future source replacements for the Versant models, office printers and MFPs and the new Iridesse, from other suppliers. Xerox makes the Nuvera and iGen product ranges in the US as well as its growing inkjet portfolio that it acquired with Impika, in France.

The company does not plan to renew the Technology Agreement when it expires in 2021. In his letter to Shigetaka Komori, chairman of Fujifilm, on 25 June 2018, in response to the lawsuit filed by Fujifilm in the previous week, Visentin claimed that the lawsuit ‘is nothing more than a desperate, misguided negotiating ploy to save a takeover,’ and ‘the New York State Supreme Court has already enjoined Fujifilm from taking any action toward consummating the ill-advised takeover.’

Visentin’s letter added, ‘Fujifilm’s actions have forced us to move forward on several fronts to protect our supply chain. First, we will start, in a material way, to source products from new vendors. Second, we will build partnerships with companies that are aligned with the Xerox mission to provide world-class technology and solutions. Third, we currently believe Xerox will be much better served by not renewing our Technology Agreement with Fuji-Xerox when it expires. We will detail for our shareholders the enormous opportunity for Xerox to sell products directly into the growing Asia-Pacific market with sole and exclusive use of the valuable Xerox name, and a more efficient, better managed supply chain than exists with Fuji Xerox today.’

Fujifilm has argued that Xerox will find it difficult to thrive alone because of the reliance on its technology. However, Visentin says, “Nothing could be further from the truth . . . In fact it is actually Fuji-Xerox that could potentially suffer ruinous consequences from the loss of over US$ 1 billion of revenue from Xerox, its largest customer. And legally there is nothing Fujifilm can do to stop that happening.”

In response to Xerox’s apprehensions of malfeasance on various accounting issues, Fujifilm said Xerox’s argument on Fuji-Xerox’s accounting issue is wrong. “The accounting issue at Fuji-Xerox is properly resolved and no longer exists.”

Fujifilm said it would be difficult for Xerox to build its sales channels in Asia from scratch as it does not currently have any marketing channel in the region. “We do think that Xerox has the ability to build its supply chains and source products from scratch in Asia, although the merger with Fuji would have been the ideal situation,” an institutional investor, who holds 5 million shares in Xerox, told Reuters.

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

It is the right time to support our high-impact reporting and authoritative and technical information with some of the best correspondents in the industry. Readers can power Indian Printer and Publisher’s balanced industry journalism and help sustain us by subscribing.

– Naresh Khanna

Subscribe Now

LEAVE A REPLY

Please enter your comment!
Please enter your name here