It Was the Best of Times. . .
1) Down to a Science
Returning champion WorkflowOne, Dayton, Ohio, unveils not only higher sales figures for 2008, but a sophisticated business model, as well. Earlier this year, the corporate giant introduced the Dual Network Advantage (DNA), a model consisting of “two fully integrated networks enabled by proprietary, market-leading technology and the logistics infrastructure to ensure timely and efficient delivery,” explained Greg Mosher, CEO and chairman of Workflow Management. As of July, 53 of WorkflowOne’s new enterprise clients have chosen to buy through DNA, saving brand spend costs anywhere from 15 percent to 30 percent.
How does it function? DNA can be broken down into what are referred to as Helix Networks: the Services Network and the Manufacturing Network. Mosher said, “The [Services] Network is made up of Workflow’s extensive intellectual capital and cadre of domain experts, as well as the resources of 300 plus certified trade partners and suppliers that help Workflow aggregate [its] clients’ spend by either using Workflow’s manufacturing platform or Workflow’s bid/buy/outsource platform to give [our] clients the best price, quality and value.”
He continued, “The [Manufacturing] Network is made up of 22 sophisticated, fully owned production facilities throughout the United States. The two networks offer the flexibility to manage the supply chain from design to delivery in the most efficient, effective and economical manner. Using its Helix Networks, Workflow will be at the forefront of its clients’ brand strategy creation and design.”
When asked about the biggest problem facing the industry today, Mosher responded that the markets his company serves, including print and promotional products, are fragmented. “There are approximately 30,000 printers serving an $88 billion industry, with the top 10 companies representing just 16 percent of the overall business. Some of our competitors focus primarily as print brokers and lack the infrastructure found in end-to-end solution offerings, such as warehouse locations, logistics and manufacturing capabilities,” he said. “On the other hand, many manufacturers in the industry face excess capacity that in turn creates lower profit margins. As a result, industry consolidation continues at a rapid pace. This is why Workflow has produced [DNA], to give our clients the choice that is the most beneficial to them and their businesses.”
Because industry consolidation remains a primary issue, with smaller providers feeling the heat, this presents WorkflowOne with multiple key strategies for 2009. First, the company intends to gain more capabilities and market share by carefully targeting potential acquisition candidates. Furthermore, WorkflowOne has the opportunity to expand its network of trade partners and suppliers, thereby enhancing the capabilities of DNA and ultimately saving customers money.
Given the country’s current economic unrest, saving money becomes even more necessary. As marketing budgets tighten and spending is reduced, companies will search for partners to help during tough times, commented Scott Berry, chief sales and marketing officer for WorkflowOne. “By providing services [to] aggregate their total enterprise spend and leverage that spend to deliver a higher quality product at a lower cost, providers can significantly enhance their clients’ profits,” he said.
WorkflowOne has taken great measures to ensure its staff delivers not simply quantity, but also quality. The company provides its sales team with regular training and information on a weekly basis, including competitive analysis, sales techniques and business updates.
The company’s broad national footprint gives its salespeople an additional advantage. “With [more than] 500 direct sales representatives operating out of [more than] 75 sales offices nationwide, the company has the ‘feet on the street’ to serve national clients with multiple locations, as well as single point businesses. This coverage ensures the proper focus from both a geographical and vertical market view,” Berry offered.
With a cultivated expertise in multiple diverse vertical markets, WorkflowOne possesses the confidence and the tools to remain untouched by its competition. One thing is certain, the company has no intentions of surrendering its No. 1 ranking—national crisis or not. “By offering the flexibility inherent in our DNA platform, expanding our offerings in print, promotional marketing, value-added service and intensifying our vertical market focus, we believe we are the company best positioned to help clients succeed in this challenging economy. And as our clients succeed, so will Workflow[One],” Berry asserted.
2) Protecting Its Bottom Line
In 2008 alone, this heavy-hitter achieved more than $300 million in sales; saw a 10 percent increase in profits among its active owners; obtained a 33 percent growth in revenues within major accounts; and increased its amount of new owners by 35 percent. Therefore, it is no surprise that Cleveland-based Proforma held on to its No. 2 ranking.
However, Greg Muzzillo, founder and co-CEO along with his wife Vera Muzzillo, explained their company has much left to accomplish for 2009, and the two anticipate bringing even more innovative solutions to their customers. “In 2009, we will be focusing on two main components of our business: growing the network and supporting our owners. Proforma will be committed to recruiting qualified owners to add value to the system and increase our competitive advantage,” Muzzillo noted. “We are also working to increase awareness among our owners about the numerous tools and resources available to help them hone in on the three main factors involved in growing their businesses—obtaining business they don’t have, hiring qualified sales professionals and acquiring additional companies. Our support center is structured to assist owners with these processes so they can focus on spending face time with their customers to positively impact their businesses.”
Proforma recognizes the value of diversity. Because the company offers a wide-range of products from business documents and promotional products to project management solutions, it has strategically positioned itself in the market as a total solutions provider. With many companies engaging in some economic belt tightening, it will become even more essential for end-users to reenforce brand awareness. Consequently, they will turn to Proforma with its concentrated expertise on a variety of subjects.
Said Muzzillo, “Versatility, flexibility and diversity lay the foundation for survival when times get tough. We are a full service solutions provider functioning in an agency capacity to meet all of our clients’ needs. Through proper planning and effective importing strategies, Proforma enables clients to reduce program costs, thus positively impacting their bottom lines.”
So, what exactly is the bottom line when struggles are ripe within the printing industry? Muzzillo elaborated. “In today’s economy, size matters. The small distributors are struggling to keep up with technological advances which give the few large distributors the opportunity to step in and handle the increased complexities with ease and transparency,” he said. “Market volatility creates havoc which directly affects product costs, shipping, etc., that must be properly managed.”
Muzzillo went on to explain how erratic fuel prices and uncertainty surrounding dedicated labor can lead to increased prices of promotional items and shortened solidity of international quotes. Still, he believes importing remains “a viable option for companies that are extremely cognizant of their budgets as they work to make every dollar count.” To assist companies with these challenges, Proforma works with clients to preplan strategies in order to obtain the best possible price.
Although speculation concerning the industry’s future haunts suppliers and distributors alike, one thing is certain: Proforma is poised to surpass its high marks of 2008. “By offering products that are necessary for companies to operate on a daily basis—as well as creative solutions that are at the top of our industry—we have optimistic projected growth figures for 2009. We are on track for an increase in the number of Proforma owners, as well as a 20 percent increase in accounts with annual sales figures above $100,000,” Muzzillo enthused.
3) Going Global
Chicago-based InnerWorkings advanced one spot in this year’s ranking to claim the No. 3 position. Established in 2001, the company is fostering a reputation as one of the largest and most sophisticated global buyers and providers of printed materials and promotional items. Earlier this year, InnerWorkings even received the American Business Award for “Most Innovative Company,” and CEO Steven Zuccarini was recognized as an Ernst & Young “Entrepreneur of the Year” in the Midwest region.
“Our approach is resonating in the marketplace with a compounded annual growth rate in excess of 100 percent and expansion in major markets such as New York, Philadelphia, San Francisco, Los Angeles, Dallas, Atlanta, Minneapolis and even the United Kingdom,” observed Eric D. Belcher, president and chief operating officer. “We’ve not only developed technology to procure print more effectively for our clients, but we have also developed tools to build stronger relationships with our growing number of certified suppliers.”
InnerWorkings adheres to a client-centric business philosophy and is most proud of the strong relationships it has established with customers throughout the years. “The fact that we have retained every one of our 140 enterprise clients is a testament to the value we deliver everyday. We believe the key to thriving is keeping a long-term focus on client satisfaction and business development efforts and not getting distracted by short-term issues beyond our control,” Belcher affirmed.
Looking ahead, InnerWorkings is fine-tuning its practices to secure the business of even more clients. As a result, the company is prepared to attract top industry talent to its existing team. Such efforts may in fact simultaneously combat a growing problem within the industry.
“There are a number of opportunities in the print industry today; one that we are attempting to influence is reducing the inefficiencies associated with individual print manufacturers employing a direct sales force,” Belcher said. “These representatives can provide inherently biased opinions based mostly on their employer’s equipment capabilities, therefore not providing an efficient and effective fit for a particular job. We have had the opportunity to hire many of these individuals who are now thriving under our business model, as they are able to put their customers’ needs ahead of their plant’s capabilities.”
Another way InnerWorkings meets its clients’ varied needs is through implementing refined marketing strategies. Belcher explained the company utilizes a “comprehensive technology-enabled, end-to-end approach” to address its end-users’ enterprise print procurement and print management requirements. He went on to say the solution is twofold. “On the client front, we work in an open-book manner with transparent economics so clients have visibility into total spend and cost savings; on the supplier front, we track performance against eight key metrics in real-time on a job-by-job basis, which greatly contributes to our ability to deliver quality on every job,” he stated.
In light of the heightened financial crisis, Belcher does anticipate an increased tightening of print budgets. However, he is confident the topsy-turvy economy will positively influence the future success of InnerWorkings. “Our value proposition resonates even louder in a down economy and companies are becoming more receptive to an outsourced print procurement and print management approach. [In the] long-term, we believe our business will benefit from the current state of the economy,” Belcher affirmed.
4) Satisfaction Guaranteed
The staff of Glenwood, Minnesota-based American Solutions for Business (ASB) isn’t letting any obstacles stand in their way—President and CEO Larry Zavadil simply doesn’t have the time.
Assuming the No. 4 ranking, ASB has pushed a lot of exciting projects to the forefront this year. For instance, on Aug. 1, the company launched a new fully integrated system called APS (American PeopleSoft Solution). “The potential of this new system is huge and will bring [ASB] to a new level. ... While we have experienced some hiccups along the way, we are looking ahead to a bright future with this new and powerful system,” Zavadil enthused. “As we finalize the implementation of APS, we will be working with our suppliers to extend the integration of this powerful system into the market. We will also be adding enhanced functionality for sales and customers alike.”
In addition, ASB continues to address the lack of proper management in regard to the generational shift in customers and sales associates, which Zavadil believes is one of the industry’s biggest problems today. In response to this ongoing issue, the ASB team has developed the L.I.F.E. Program. The program doesn’t target a specific demographic, but instead appeals to professionals both young and old, novices and veterans, alike. The end goal is for these individuals to manage their business accordingly based on their present and future goals.
But ASB’s plans don’t end here. Another goal Zavadil has set for the new year involves the expansion of his sales force. He has observed a flux of talented industry salespeople migrating to ASB as other companies continue to downsize or shut down operations. To guarantee its sales team stays motivated, ASB has incorporated several initiatives. One way this is happening is through a new bonus program. Under this program, sales are rewarded by receiving financial incentives based on seven key business drivers.
Furthermore, ASB has tweaked its Business Protection Plan (BPP). “Enhancements to our [BPP] during the year brought loud applause from our sales force. The plan was originally developed to protect the sales associate from customer bankruptcies, but during the past year the scope of the plan was extended to cover an increased number of business losses including sales errors,” Zavadil said.
In uncertain times, one of the few remaining certainties is the importance of a solid sales force. According to Zavadil, economic shifts have existed as long as there has been a free market economy. Therefore, make the most of it and with the help of your staff, turn problems into profit. “It’s important to be optimistic and not dwell on the negative. Those who look for ‘doom and gloom’ will probably find it. Although there will be less ‘low-hanging fruit’ in an economic downturn, being proactive still makes the most sense,” Zavadil contended. “A good sales associate will make things happen. I always encourage our sales force to mix it up, to try a marketing avenue they’ve never tried, sell a product they’ve never attempted to sell before, put a twist on products and services so that they appeal to customers and look at selling technology.”
Zavadil is following his own advice by leading his company through an exploration of the latest technological advances. The company is using video-embedded e-mails with full reporting and tracking capabilities as another medium to reach clients. And with the explosion of social networking tools including MySpace and Facebook, this is the most sensible route to take, which ASB recognizes. “Managing the explosion of social networking options for the next decade will continue to create new and exciting opportunities for us in the years to come. ... Capitalizing on MySpace and other Internet-based communication options will keep [ASB] fresh and connected. ... We will be focusing on refining the ways we interact with our customers—sales associates and end-users—so that we can provide the right type of communication to the right people at the right time,” Zavadil noted.
Whether through electronic means or traditional marketing methods, ASB will remain a solutions provider, first and foremost. Said Zavadil, “Since the beginning of [ASB], our goal has been to serve the customer by finding out [his or her] sources of pain and delivering solutions.”
5) Streamlining Solutions
North Canton, Ohio-based GBS reinforces its presence among the industry elite by maintaining the No. 5 ranking for a second year. With impressive sales figures of $86.2 million, the company managed to exceed its profit objectives, while securing several global print management contracts in 2008.
According to Eugene Calabria, CEO and president, the need for a solutions-based business model overshadows a focus on product-oriented strategies. “Customers are looking for solutions, not product[s]. Companies are challenged more than ever to change their sales approach from transactional to consultative and provide a full range of solutions,” he said. “Manufacturers will need to find ways to utilize existing equipment and meet the demands for digital technology.”
In its continued quest to provide utmost customer satisfaction, GBS will promote improved productivity and efficiencies throughout the new year. Calabria noted this can be achieved by expanding the customers’ use of GBS’ technology solutions. Currently, GBS provides vertical-specific software for the healthcare, credit union and government industries.
Condensing issues is especially important as professionals hunger for cost efficiency. Calabria mentioned the key to survive and thrive in an unstable economy involves finding ways to remain fiscally-responsible. However, in addition to being cost-conscious, it is also essential to simultaneously increase revenue. And, GBS is prepared to help customers accomplish this feat.
“For the first time, GBS can truly offer solutions that will help our customers increase revenue instead of being just a cost reduction and process improvement resource. Our strategy of being a truly unbiased single-source solution has been embraced by our associates and our customers,” Calabria observed. “We will continue to promote and grow on [the] key elements of our value proposition.”
Nevertheless, with a possible recession looming, Calabria acknowledged that only select market niches may succeed in 2009. Lowering costs while increasing sales won’t necessarily be without obstacles. “Many companies will continue to reduce capital expenditures and look to lower operating costs in anticipation of lower or reduced sales growth projections in 2009. As a result, we expect that some of our clients will reduce their total print spend in 2009,” he surmised. In the meantime, GBS will continue to aim for the top. PPR
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