Hear How One Supplier Manages to Excel

Unified by a strong core infrastructure, PrintXcel serves all printing needs great and small.

Upon learning that Englewood, Colorado-based PrintXcel was named BFL&S' 2002 Manufacturer of the Year, chief customer officer Charles Stickler exclaimed, "This is good news for everyone."

For indeed the recognition proves that PrintXcel is on track and in touch with market de-mands, but it's also symptomatic of a healthy industry that's generating opportunities.

Yet, as President and CEO Kevin Lombardo observed, "The industry is currently experiencing the same softness that the overall economy is experiencing and there is a sensitivity to people's spending." He explained that customers are implementing better inventory management and cost structuring, which is resulting in pockets of growth and decline.

"For instance, traditional documents such as continuous forms and unit sets are experiencing market declines of 5 percent to 8 percent," noted Lombardo, "but there is definite growth in direct mail, fulfillment services, commercial printing and pressure-seal documents, as well as label solutions."

By now, it's evident to manufacturers and distributors alike that capitalizing on growth areas requires a business plan that includes technology, product diversity, service offerings—such as warehousing and fulfillment—partnerships throughout the value chain and a consultative, education-oriented selling style.

The key to PrintXcel's success, however, is not so much what it is doing, but how it is implementing these different strategies. "In building the company larger, we are making it smaller by emphasizing the importance of being close to individual customers," said Stickler.

"We want to support distributors—regardless of the size of their companies—with a broad product portfolio, and we want to do business with our customers as they want us to do business with them," added Lombardo.

Taking It to the Street

As for technological offerings, Lombardo explained that since technology is intended to solve business issues, the company uses the term e-business rather than e-commerce to describe its services. At present, PrintXcel offers more than five electronic solutions under the brand name eMasters.

Each client situation is different and is dealt with individually, according to Lombardo, whether he needs an ordering solution, status reports, e-catalogs or the ability to receive electronic invoices. "Maybe it's a Web site we build and host for the distributors or a company store we help establish for their clients. Whatever it is, we first look at individual customer needs and then choose the best and most cost-effective solution.

"Right now the emphasis is not on developing new systems," he continued, "but fostering more connectivity between our customers' systems and ours."

PrintXcel has developed multiple back-end systems that are continuously integrated. On the other hand, working with customers using a variety of different programs, such as Quantum and TopForm, introduces variables that challenge seamless integration.

Now, by partnering with companies like Four 51, PrintXcel seeks to remove the manual aspects existing between distributors' ordering systems and PrintXcel's back end in order to drive new revenue.

This concept of connectivity extends beyond technology to every aspect of the organization. With 16 customer service and manufacturing facilities through- out the country, the company comes to market as a supplier of commercial printing, labels, envelopes, documents and direct mail products. These products feature the well-known brands of VersaSeal, PXGraphix, Discount Labels, Lancer Label and Wisco.

This diverse product mix supports PrintXcel's never-say-no philosophy to providing printing and printing services solutions through honest-to-goodness, one-stop shopping.

And what the company doesn't produce itself—such as printed plastic cards and post-its—it outsources to provide complete, effective solutions obtained with the utmost convenience. "It's all about forging relationships," said Lombardo. "The days of not working with each other are over."

Lombardo stressed that as the world changes, distributors must look at where the market is going and keep up to speed with customers' evolving needs.

"Wayne Gretzky once said, 'I don't skate to where the puck is, I skate to where the puck is going to be,' " he continued. "We focus on where the puck is going by staying in tune with distributors. They're the ones who keep us aware of what is happening on the street."

Once they see what is happening, distributors must be willing to embrace the new solutions to solve the emerging problems, even if it takes them outside of long established comfort zones.

And this is where education and supplier/distributor partnerships come into play, particularly as distributors are narrowing their vendor pools while increasing product offerings.

On a Mission

PrintXcel sees its mission as leveraging the expertise of the distributor by supplying the full breadth of products that customers are requesting.

For instance, some distributors are strong in direct mail while others may shy away from offering it to customers. As the business unit of Mail-Well serving distributors, PrintXcel works with them to de-mystify direct mail solutions. Lombardo pointed out, "Even the reminder card from the dentist office is a simplistic direct mail solution."

Certainly the idea is not to set someone up for failure, and Lombardo discussed the importance of conducting personal assessments to bring the distributor's full skill set to bear on serving the end-user. "There is a label distributor in the Boston area with a graphic arts background who uses his talents to help customers with letterhead logos and designs, and also helps customize stock documents through his graphic arts skills," he noted. "We partner with him to provide the print products and services his clients need."

Other distributors may seek assistance in introducing services such as inventory management. "We may even offer selected pricing to help distributors drive volume," Lombardo said.

Perhaps one of the most effective ways to increase volume is to target vertical markets—a theme that emerges often in PrintXcel's distributor training and education.

For instance, distributors currently serving a few schools in a particular area are encouraged to move beyond that territory into multiple school districts, while the distributors specializing in the hospitality industry learn how to target related industries such as food and beverage.

"When distributors are strong in a certain arena they need to stay abreast of it. That doesn't mean they need to be totally conversant," said Lombardo, "they just need to stay ahead of changes by reading trade magazines serving that industry so they can say to the customer, 'I see this happening, lets go with it.' "

Advice From the Wise

Lombardo added that good old fashion listening skills are probably some of the most effective contemporary sales tools. By keeping their ears pealed—or employing what Lombardo calls generous listening—distributors can hear the scuttlebutt within the organizations they serve.

"If distributors learn that a company is launching a new marketing campaign, they should use it as an opportunity to inform their customers of the direct mail and commercial printing services that will likely be needed," Lombardo suggested.

"Any change within an organization signals an opportunity to provide new products or services," he continued.

And of course, simply being there is important.

Said Lombardo, "Distributors need to get introduced to a company beyond purchasing in order to identify vertical markets." Whether it's a small distributorship with a certain skill set or a large group with expertise in several areas, Lombardo added that brainstorming together with distributors is the first step in helping them uncover new markets and finding the leads.

"We may then help that distributor put together a mini catalog displaying his or her branding or design a direct mail piece introducing the distributors services and share the cost," he explained.

PrintXcel invests heavily in its education efforts which involve more than 10 regional sales managers as well as inside trainers, and in its national accounts group, established 15 months ago to manage relationships with nationally-oriented distributors. The company also brings together distributors from companies of all sizes to engage in focus group discussions.

At the end of the day, whatever business decision PrintXcel has to make, it is based on providing the utmost in customer satisfaction. Whether it be through education, high-quality products and services or the lending of an ear, PrintXcel vows to stay ahead of the pack by staying in tune with distributor needs.

By Maggie DeWitt