Riding High
1. Never Let Go
Dean Truitt, president and chief operating officer of Dayton, Ohio-based WorkflowOne has a reason to be proud. With roots dating back to 1866, the company has proven its ability to respond to technological change and customer demand—recession or not. And most recently, WorkflowOne has collected another victory by maintaining its number-one position on this year's top 100 distributors list.
Truitt attributes WorkflowOne's latest success to a comprehensive transformation plan—set in motion over the last year—that will further solidify the company's strong standing in the future. "By taking the right steps to control costs, increase efficiencies and manage our cash position, we're in a much stronger position financially to grow our business and continue providing outstanding service to customers," he said. "Clearly, the economy created challenges for our company, as it has for most of corporate America. While many of our peers experienced a significant drop in earnings performance during the first half, WorkflowOne achieved a 19 percent increase in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)."
Truitt went on to express his satisfaction with the momentum of new customer wins during the past quarter. For example, the company has extended its 10-year relationship with Novation, one of the largest healthcare group purchasing organizations in the nation. In order to retain such lucrative contracts, WorkflowOne relies on a great deal of personal contact.
"... We have realigned our sales organization to provide even greater support and collaboration for delivering superior print and promotional marketing solutions. We have created a dedicated healthcare group with its own sales channel to demonstrate our increased commitment to the healthcare market. WorkflowOne today handles print management for more than 700 hospitals around the country," Truitt explained. "We've also created a financial services 'community' to share best practices among our sales leaders serving that vertical market. We do business today with over half of the nation's top 25 banking systems and more than 100 regional banks."
In addition, the company has developed a customer solutions team to focus on high growth areas, including digital print, distribution and fulfillment, promotional products and marketing communications. In particular, Truitt sees promise in bundling other services with print to offer fully integrated solutions.
Moving forward, Truitt finds it is always crucial to stay one step ahead of customers and their changing needs. Careful listening and analysis of client needs, savvy resource planning for appropriate staffing and strategic investments in technology and equipment are mandatory for future success.
He continued, "It also includes having the right metrics in place to prove value to customers over time. In today's world of frequent mergers and changing client contacts, it's important to have hard data that demonstrates how you [provide] added value to an organization."
No matter the highs or lows, change will continue to infiltrate the printing industry. For instance, Truitt observed that digital is displacing offset. "Traditional printing is facing over-capacity, which is creating downward pressure on prices. The Internet is changing everything. Customers expect more value, [at a] faster [pace] and [for] lower prices," he stressed.
Nevertheless, Truitt anticipates many opportunities for those who practice innovation and provide valuable customer service. "Customers are looking for solutions like never before. Doors are opening at potential accounts that we have been unable to penetrate for years. Opportunities abound, whether it's increasing the return on investment in our customers' marketing programs, reducing their administrative and operating expense[s], facilitating customer communication, improving compliance with regulations, protecting patient identity or safeguarding their brand. And with digital technology, we've never had such an arsenal of flexible tools to help meet customer needs," he stated.
With a solid plan under its belt, will WorkflowOne ever relinquish its top spot? Only another year will tell.
2. Full Speed Ahead
Chicago-based InnerWorkings advanced one spot in this year's ranking to claim the number-two position. Established in 2001, the company is a global provider of managed print and promotional solutions to corporate clients across a variety of industries.
And the numbers don't lie. With new business primarily driven by referrals and word of mouth, InnerWorkings' sales have climbed from $288.4 million to roughly $419 million over the last year.
In addition to showing a substantial increase in sales, InnerWorkings' president and chief executive officer, Eric D. Belcher, is excited about growing its client portfolio.
The company recently added a number of new companies to its growing roster, such as InterContinental Hotels Group, Bacardi, the Scotts MiracleGro Company, Visa, Samsung and Skyy Spirits.
Given the country's current economic unrest, Belcher stressed the need for distributors to take that extra step in providing unrivaled customer service. "Print management is in its infancy here in the United States, and all distributors that participate in this space must have the highest levels of service, quality and ethical standards," he declared. "This is the only way for our more efficient approach to the print supply chain to be successful long-term."
Belcher continued, saying the key to surviving and thriving in a struggling economy is the same under any conditions. "[There must be] great employees, applied technology and information, and strong, mutually beneficial relationships with the print and promotional product supplier community," he expanded.
Without releasing too much information, Belcher noted that InnerWorkings' top priority for the new year is to continue delivering results for clients while investing in technology, specifically procurement and sourcing tools.
While arguably a "young" company in comparison to others, InnerWorkings has certainly found its groove. From here there is only one direction to head, and that is up.
3. The Good Life
Last year, the members of Cleveland-based Proforma stood up to the struggling economy and decided failure simply wasn't an option. In fact, six owners were recognized on the Inc. 5000 list of the fastest growing companies, 20 members were added to Proforma's Million Dollar Club and seven members reached Multi-Million Dollar Club status.
And the good news didn't end there. Proforma's free credit insurance program was beneficial for owners, said founder Greg Muzzillo and his wife Vera Muzzillo, CEO. "This program covers orders from $3,500 to $100,000 or more when customers are unable to pay. For years, it has been a very effective program, and in 2009, owners benefited from more than $1 million in insurance on orders where they may have otherwise taken large hits," explained Greg Muzzillo.
Therefore, it is no surprise that Proforma secured the number-three ranking on this year's list. And the Muzzillo's already are looking ahead, arguing this is the "best of times for the industry." Vera Muzzillo explained, "Because of the economy, end-user companies are looking for firms that add value to their business. Value is key. [Our company] has the tools to deliver great value."
Over the years, Proforma has become synonymous with value by providing a host of resource options for its customers. For instance, clients can access printing services, business documents, promotional products, multimedia and e-commerce solutions suitable for any of their demands.
To further enhance the owner/client experience, Proforma provides its owners with a full suite of marketing collateral combined with business development programs. In turn, goals are accomplished and bottom lines are met. Greg Muzzillo explained, "Our North American Major Accounts program is built to attract qualified leads for our owners and work with them through the RFP and RFQ process to secure the business on contracts that are worth $300,000 to $12 million."
He added, "Our e-commerce team helps owners market and present their powerful e-commerce capabilities to win company stores and print fulfillment programs. The team then works with the owner to develop and implement the program, resulting in substantial profits for the owners."
In 2010, Proforma plans to build upon some of its resources. The company's top priority will be to implement an effective demand generation program, they said. Vera Muzzillo added, "To date, we have done an excellent job providing our members with the tools and programs to push to customers and prospects to gain more business. We are looking to constantly improve these resources and now add pull marketing strategies that bring a substantial amount of qualified leads to our members."
Keeping in line with their business motto, the Muzzillo's are confident not only will they find continued success, but others will be able to add their own stories to the mix. All it took to arrive at this conclusion was a little number crunching.
"Distributors and sales professionals [have] to remember that businesses spend approximately $200 billion on printing. Even if these businesses are down 30 percent, there is still $140 billion of business to be had," emphasized Greg Muzzillo. "Proforma accounts for $325 million, which leaves billions of dollars of opportunity in the industry. With credit insurance and the world-class tools that Proforma offers, there is no excuse for failure."
4. A Spectacular View
"Technology" is the magic word for Glenwood, Minnesota-based American Solutions for Business (ASB). Yes, founder and CEO Larry Zavadil has big plans in store for this area. Clearly, his plans work as the company manages to hold on to the number-four ranking again.
Zavadil is proud of a major system implementation/conversion ASB entered into during the past year. "The fact that it took place during an economic downturn, gives us another reason to appreciate and celebrate the fact that we survived and actually grew the business by adding new associates, by increasing our e-commerce presence and we maintained or improved our rankings within the industry," he boasted.
He went on to say e-commerce is the fastest growing segment of ASB's business. Other companies may look for time-saving alternatives, but ASB truly believes in this technology and has emphasized marketing it to sales associates. The company also has put tools—including printed pieces, demonstrations and electronic tools—into place that help associates as they work with end-users.
Zavadil provided insight into his aggressive plan. "During each of the first three quarters of 2009, we've averaged approximately 60 new e-Stores and the fourth quarter is on pace to push that figure even higher," he said. "... Upgrades and enhancements have consistently been rolled out each month. Sales associates can now offer new layouts, enhanced search capabilities, more browsing and pricing options, upgraded shopping cart choices, wearable chart options and new options for quick orders."
Zavadil also has observed an increased popularity with the company's office supply e-Stores. "Integrations with additional vendors have been added to both our 'Just In Time' wearables and our office supply e-Stores. Customers now have many more options when it comes to clothing lines and brand names," he mentioned.
Additionally, he hinted that one of ASB's goals for the upcoming year is to leverage its significant investment in technology. Zavadil divulged, "This new system is a powerful tool that will allow us to extend integration into the market. Suppliers, sales associates and customers alike will see added functionality as we move into new phases in the coming years."
To carry out a big plan, a strong team is needed, which Zavadil has in his own staff. "Day in and day out, American associates have shown their passionate spirit by out-hustling, out-selling and out-serving. And because our associates aren't managed by company hierarchy, [they] can build stronger relationships through which solutions are provided. 'Solutions'—that's our middle name," he exclaimed.
Zavadil acknowledged while most forecasters are seeing a general upward trend in the economy, many companies still struggle to climb out of a hole or escape from a plateau they've been stranded on for the past year. Regardless, ASB associates are ready and willing to jump headfirst on this challenge. After all, it's always been about the customers. He stressed, "American's goal is to be the face in the doorway, the voice on the phone and the helping hand that is always extended to our customers to bring solutions that allow them to compete in the digital world."
5. Going Up
The number-five ranked company may be a newcomer to the top five list, but not to the industry. Headquartered in Batavia, Ohio, the well-established Kaeser & Blair (K&B)—with virtually no debt—has fostered a reputation for paying suppliers on time, which subsequently brings additional pricing benefits to K&B that are able to be passed on to its customers.
"We pay higher than normal commissions to our dealers without any transactional charges, monthly fees or other hidden costs. And we advance those commissions by daily direct deposit on the day the orders are written," explained Gregg Emmer, vice president, chief marketing officer. "This attracts the top-producing salespeople to K&B. They, in turn, have a very loyal customer base, which K&B is only too pleased to keep happy."
Because K&B has much to offer its employees, it is no surprise staff consists largely of industry veterans, which Emmer refers to as the 'backbone' of the organization. To keep these employees fresh-thinking, the company makes continual investments in training nearly every month.
Having a solid team piggybacks off what Emmer defines as K&B's greatest success of 2009. Of the 85 years the Kaeser family has owned the business, there has never been a single economic layoff of an employee—a major accomplishment especially given the current downtrodden economy. "Neither have we reduced any pay of compensation for these employees. [And] at the same time, we have reinvested in the infrastructure of K&B with a new order processing system, a new vendor portal, new telephone systems and [made] several green initiatives to reduce our carbon footprint," Emmer noted.
But K&B isn't satisfied here. In fact, the company not only wants to provide the best overall support to the existing Kaeser Dealer Group and its customers, but the company wants to attract new dealers. Emmer plans to accomplish this through a two-fold marketing strategy.
"We market to attract talented sales professionals who want to make greater income and work smarter, rather than harder, while still owning their own business. And we produce the marketing the K&B Dealer Group uses to create sales. From our catalogs to the digital catalogs on the Web, the K&B marketing department handles it all," he said. "Our recruiting advertising is always factual and not 'hyped up' or overly clever. We want people to see K&B as an honest, straightforward company. ... We provide strong pricing, quick processing and delivery and quantity breaks that satisfy a much larger segment of business."
Despite K&B's success story, Emmer realizes a unique set of challenges has arisen from the recent economic struggles. However, he remains cautiously optimistic. "2010 will likely see a fairly slow comeback from the economic downturn of 2008 and 2009. There is enough feedback coming from customers to suggest that as much as 10 percent of the high mark of sales volume in the industry was a bubble. If that is true, we all have to adjust to a new 'normal' and work to grow our business rather than 'get back' to where we were," he predicted.
Emmer continued, "There is a difference in how you staff and where investment is made. K&B's strong financial condition, higher-than-normal commissions and overall business model continue to attract top dealers from around the country. This means more market share for K&B and, therefore, is a major focus for 2010."
Distributors, take note. K&B has no intentions of leaving the industry or this list as it advances one spot at a time. Experience always wins out in the end. PPR