1 + 1 = $1.2 Billion
The union of WorkflowOne and Relizon forges a formidable link in the ever-evolving supply chain
WELL, 2005 CERTAINLY went out with a bang for Greenwhich, Connecticut-based WorkflowOne, and the new year is off to a fantastic start. On Nov. 30, Greg Mosher, chairman and CEO of parent company Workflow Management, as well as WorkflowOne, and Rodney Hedeen, president and CEO of Relizon, Dayton, Ohio, officially sealed the deal on WorkflowOne's acquisition of the largest major direct competitor to the independent distribution channel. Surely, the co-mingling of these two dichotomous sales cultures will have monumental ramifications for the industry. Or not.
After all, for years now, top-level executives and sales professionals from the ranks of the major directs have been seeking out new opportunities with independent distributorships. And, as Mosher pointed out, "WorkflowOne and Relizon, both with manufacturing and fulfillment capabilities, are really not that dissimilar."
He explained that Relizon manufactures roughly 55 percent of its goods, the balance coming from other manufacturers referred to as trade partners. WorkflowOne currently manufactures approximately 25 percent of its products while remaining a significant player in the outsourcing and independent model.
As Mosher sees it, the greatest impact of the acquisition will be direct benefits to end customers. "Customers demanding complete solutions to their supply chain needs are driving dramatic changes. Unfortunately, the industry has never been particularly good at logistical supply chain management," he observed. "Together, WorkflowOne and Relizon can respond much better than either company could individually."
Unite and Conquer
The acquisition combines a solid manufacturing base with the fact that WorkflowOne will now have the largest outsource independent spend [approximately $600 million currently] of
any company of its type in this business sector. "We've created a seamless supply chain and logistics powerhouse for a best-of-breed, end-to-end solution, including execution, warehousing and delivery," Mosher stated.