1. Branding Synergy
WorkflowOne, Dayton, Ohio, can best be described as a print management and business process outsourcing facilitator, bundling value-added services into solutions and wrapping them up as custom products. The company’s services are invaluable for helping customers with decentralized operations maintain brand integrity, particularly during periods of rapid growth.
Labor Finders International—a staffing service filling approximately 16,000 jobs per day within the manufacturing, construction, distribution and hospitality industries—recently selected WorkflowOne to develop an e-commerce strategy. The site will provide more than $1 million worth of branded materials annually, including sales collateral, stationery, advertising specialties, office apparel and a variety of safety items to Labor Finders’ nearly 300 offices across the United States.
“In terms of positioning ourselves in the marketplace, we are going beyond the traditional purchasing relationship and getting in front of marketing, finance and [human resources] departments where we can talk about the whole breadth of value of WorkflowOne’s services, and not just focus on the traditional products that we once provided,” said John Nicely, vice president of marketing and strategic sourcing. “And, as part of our value proposition, we always promote some sort of ROI for the customer.”
Typically, a senior WorkflowOne team member makes the initial call and lays out the business model. “Once we get initial agreement to explore different programs around different levels of media, we’ll send in a team to further evaluate [the situation] and start mapping out processes to improve programs or reduce costs,” Nicely added. “We have a dedicated implementation team of about 50 people whose sole responsibility is to implement programs with clients.”
The complexity of the situation dictates the length of time it takes to roll out a solution. For instance, only a few months were required to help Eastman Kodak evaluate two brick-and-mortar retail sites offering branded products and other promotional items to employees and retirees in the Rochester, N.Y., area. WorkflowOne helped Kodak rebrand and regenerate the operations by creating an online store serving employees and retirees worldwide.
In addition, the retail locations function as small boutique-type stores offering only a few items, and featuring kiosks to drive people to order products online—and get them accustomed to doing so in the future. Other solution implementations take much longer. WorkflowOne is currently negotiating with a large casino to handle its direct mail and commercial print needs. “This is a huge opportunity that also involves the distribution and fulfillment piece,” Nicely explained. “On big deals, we always have someone from our enterprise account team orchestrate how to tie elements and skill sets of our model together to meet client needs. But, this case also involves our direct mail and commercial print experts, and we actually bring our vendors in, as well. As a company, we have no problem offering transparency to the supply chain we manage on behalf of our clients, and turning vendor relationships into true partnerships, which is somewhat rare in this industry.”
The changing marketplace is not only reflected in WorkflowOne’s unique, blended model, but in many of the solutions and services the company provides its customers, such as PURLs (Personal URLs) to help reduce print and mail costs while increasing response rates to direct mail campaigns. WorkflowOne has also partnered with American Color, Brentwood, Tenn., to ensure the portability of print by providing customers with powerful database management and automated workflow tools, increasing the value and use of their digital assets. Said Nicely, “This is where the whole logistics play is going; it’s not about the management of physically distributed items, but more about moving art files around.”
Nicely hinted at future acquisitions as the company rounds out its business model, and stressed the need to resist commoditization of products in this sector. In the meantime, he added, WorkflowOne representatives will stay the course in fulfilling the mission summarized on their business cards: design, source, produce, warehouse, market, fulfill and deliver.
2. Donnelley Partnership Marks New Era for Proforma
Cleveland-based Proforma has entered into a very unique partnership with R.R. Donnelley, whose global headquarters are in Chicago, to become its exclusive distributor in the channel. Greg Muzzillo, Proforma’s founder and co-CEO along with his wife, Vera Muzzillo, explained the relationship has two key benefits for Proforma owners.
“As Donnelley continues to grow and focus on large accounts and large geography primarily, it leaves the mid-sized and smaller accounts—and even large accounts in smaller towns—worth about half a billion in sales, potentially without coverage. We will provide the coverage through our members for those accounts, which include hospital and government contract business. This is humongous,” he commented. “We will also be getting the best pricing in the distributor channel. So, 90 percent of the time, Donnelley will be 10 percent or lower, and the only way to get this pricing is by being a member of Proforma.”
Muzzillo sees his mission as helping Proforma members accomplish things that most in the industry consider impossible. For instance, the company has been putting a great deal of effort into identifying and contacting major North American accounts. “We are trying to help our members identify accounts that spend more than a quarter of a million to half a million [dollars] a year, especially if they have multiple locations and may require multiple relationships,” he reported.
A telemarketing team calls prospective accounts that presumably have the desired spend, in an attempt to determine where the companies are in their purchasing relationships, and when those relationships are slated for reevaluation. “When companies spend a quarter of a million dollars to several million dollars, they have systematic ways to reevaluate relationships. We want to know the timing of this, and then start calendaring [it] for our members,” said Muzzillo. “There are only three ways you sell something: through awareness, trial and commitment. So, step one is just to make them aware of us, and the fact that we have offices in their areas.”
Proforma hired a former member of Corporate Express, who previously handled that company’s north American accounts, to help Proforma members respond to RFPs and RFQs and develop proposals, as well as conduct online bidding. “We walk them through these [processes since] most small distributors wouldn’t know where to begin. We assist them in preparing the presentation to the account, and can also have seasoned pros ... go with them to present to the board or decision makers. We help small distributors look like they are something bigger,” Muzzillo explained.
As a marketing cooperative, Proforma members certainly have greater marketing clout. “Everyone pays in a little money to our marketing program, so together we have several million dollars to do very [innovative] things, like Internet marketing, pay per click, and website optimization,” offered Muzzillo.
Proforma will celebrate its 30th anniversary in 2008, and Muzzillo reflected on the dramatic changes over the years, recalling when his enterprise was little more than a phone and answering machine in a small, 6th floor apartment, with a post office box serving as the international headquarters.
“I always wanted to be big; even in 1978 I had huge dreams,” recounted Muzzillo. “I’m very excited about building a multi-billion dollar distributor network with some of the best members possible. As I look back, the thing that amazes me most are the wonderful people. It’s been a great ride.”
3. Connecting Generations of Americans
President Larry Zavadil and other seasoned veterans of the Glenwood, Minnesota-based American Solutions for Business (ASB) team will tell you they are not getting older, but better. Be that as it may, these wizened distributors are well aware of the new crop of young, energetic sales professionals in their late ’20s and early ’30s joining their ranks.
“Since they have not had previous lives with a major like NCR, Moore and Standard to get the knowledge and background the way many of [the older sales associates did], we have begun working on mentoring opportunities,” explained Zavadil.
Not only do new people learn the ropes from their experienced colleagues, but the seasoned pros can begin to develop an effective exit strategy, if they so desire, that sets up their accounts for a smooth transition in service and future growth. The customers benefit by continuing to deal with a competent associate who has been oriented to their business needs, and who also may be inclined to grow the account through new products and ideas, including variable imaging. Meanwhile, ASB assists with all of the legal and accounting issues, as well as drafting necessary documents to facilitate the transition.
“[The older associates] care about their customers and relationships, and are looking for another personality they are comfortable with. We try to put the right personalities together and then work out the mechanics,” Zavadil added.
The mentoring opportunity is also serving as an effective recruitment tool. “When interviewing ‘the next generation’, we let them know that we have a lot of sales associates [aged] 50 and over who may not want to give up their businesses completely, but want to cut back. Here is an opportunity for new sales associates to buy into their customer bases with ‘sweat equity’ and to mentor under them,” continued Zavadil.
Another priority for ASB is developing and implementing innovative technology tools, particularly for fulfillment and general operations. Indeed, much has changed since the days of roughly 12 years ago when the company used a converted grocery store in downtown Glenwood for its warehouse. The original shelving units were perfect for pick-and-pack programs with a huge volume of preprinted products, like the letterhead for one customer’s 100 different locations. Today, there are tech-enabled services, including ASB’ template program, and others in its fully interactive proprietary Internet eStore system, ACES—an e-business solution integrating everyday business functions.
In addition, Zavadil explained that the proprietary JIT (Just in Time) clothing program, which enables quick turnaround on logoed garments, is now available for resale. “We’re taking it to the next level and selling it to customers as their branded profit center,” he said.
“For years, people have been hearing about my struggles to bring about a fully integrated system,” reflected Zavadil. “Well, now our internal system—the last and final piece—will be done soon. No one has a system like we are going to put in place. It is going to set us apart.”
4. InnerWorkings Joins the Top Five
Utilizing proprietary technology, an extensive supplier network and domain expertise, Chicago-based InnerWorkings procures, manages and delivers printed products as part of a comprehensive outsourced enterprise solution. Established in 2001 and led by CEO Steven Zuccarini, former president of Global Solutions at R.R. Donnelley & Sons, the company became public in Aug. 2006.
InnerWorking’s PPM4 technology allows for matching print jobs with the suppliers in its network best suited to produce the job at a competitive price. Enterprise clients include Walgreens, John Deere, Circuit City, ServiceMaster and McKesson.
The company’s revenue increased 109 percent to $160 million for the fiscal year 2006, and operating income increased 179 percent to $12.8 million during the same period.
5. GBS Expands its Expertise
In January, GBS, North Canton, Ohio, announced the acquisition of marketpathinc., a Cincinnati-based distributor specializing in all aspects of commercial print, including brochures, product sheets and marketing fulfillment. The acquisition is enabling GBS to create synergies in fulfillment, print procurement, project management, graphic design, direct mail services and hand assembly.
“The acquisition of marketpathinc. is proving to be a great fit since [the company] complements GBS’ core document management business and presents significant expansion opportunities, enabling both firms to provide customers with a higher level of offerings and support,” explained Eugene Calabria, president and CEO.
GBS has been providing technology, labeling, filing and document management solutions since 1971.
Related story: Top 100 Distributors Analysis