Six distributors share the secrets and strategies that put them on top.
Workflow
What makes the same distributor retain the No. 1 spot on the BFL&S Top 100 Distributors list for four consecutive years? According to Rick Wesley, president of Workflow (formerly SFI), a Norfolk, Virginia-based distributor, the formula for success lies in managing customer supply chains effectively.
"Our strategy for the past three years has been to do an analysis of potential customers' supply chain needs, propose a better solution than what they have, and then begin managing their products on the iGetSmart e-commerce platform," said Wesley.
The iGetSmart system is the company's proprietary e-commerce platform that allows over 20 distribution centers throughout the country to be connected in real time. Wesley said that accounts operating on this system make up 36 percent of the company's reported $294 million in sales for the latest fiscal year.
In March, the company experienced a "regime change" with the departure of the founding D'Agostino family. As a result, Wesley said that it was necessary for the company's name to better reflect its services. "SFI served us well for over 75 years, but it became too iconoclastic," he said. "We are restructuring and changing the company's culture. We are becoming smarter and have discovered that the unique features of iGetSmart need to become known throughout the American business world."
By way of new technology, Wesley praised the evolution of the seven-year iGetSmart system. "We have added a number of print-on-demand features, electronic forms solutions and promotional products features to the system this year," he said. "Our success continues to be directly attributable to having this unique electronic platform."
In the future, Wesley expects to reestablish the company's acquisitions program and increase its already aggressive hiring program. "Our destiny is to grow, but now with a keener eye toward profitable and strategic growth."
By Cynthia T. Graham
Proforma
Keep it simple' is usually the rule of thumb when it comes to most practices. This very concept has allowed Cleveland-based Proforma—a network of independent distributors—to rank second in BFL&S's Top 100 Distributors.
Greg Muzzillo, founder and co-CEO, and his wife, Vera Muzzillo, co-CEO, have held fast to this infallible truth for the greater part of 18 years. "Our strategic plan has been very simple since the mid-1980s," he said. "We are committed to attracting great franchise members and to helping them build great businesses."
Of the 650 independently owned distributorships that make up the Proforma network, 125 joined the company within the last year. Of those 125, Muzzillo said that 70 percent are a result of referrals. The other 30 percent joined as a result of advertising, the Internet and direct mail.
Last year, Proforma reported $227.7 million in sales, and this year took in another $10.4 million, bringing the company's sales for the latest fiscal year completed to over $238.1 million. However, Muzzillo expressed his disappointment with the current figures. "It was a difficult year, and we initially hoped for more growth," he said.
This year, Proforma introduced the ProOffice system—an online digital dashboard that networks distributors with customers, suppliers and other members. The company also introduced its Success System—a tool that helps franchise members plan, execute and evaluate practices. Proforma received the Printing Industries of America Benny Award for its use of the Success System.
Muzzillo anticipates Proforma reaching its billion-dollar mark in 2006. To accomplish this goal, he said, the company continues to remain focused on its original plan, which is to attract and retain quality members. "I think we have the right model, with the right people, at the right time. It makes sense for distributors to increase their profits and have fun doing it," he concluded.
By Cynthia T. Graham
American Solutions for Business
Larry Zavadil, president of Glenwood, Minnesota-based American Solutions for Business (ASB), must be doing something right. After all, his company has held a place of prominence in the BFL&S Top Distributors ranking ever since the listing was established in 1984, and has placed third or higher since 1995. Now, still holding strong at No. 3, ASB currently has more than 500 sales associates and approximately 300 support staff located in the 48 contiguous states, Puerto Rico and Hawaii.
"American continues to succeed because it remains focused and committed to its core business, and grows through individual sales associates rather than acquisitions," said Zavadil. "Our vendor partners continue to play a major role in our success."
Zavadil is a firm believer in the power of highly motivated and compensated salespeople to drive customer satisfaction and success in business and, clearly, American's Employee Stock Ownership Program (ESOP) plays a pivotal role in solidifying the company's place within the industry.
"Initially, it was difficult for those associated with the ESOP to perceive the value of something that they received for free," he said. "But, after receiving statements for the past three years and seeing the stock increase by 50 percent or more each year, it's easier for ESOP employees to relate to the value—particularly after the disastrous years that the stock market has experienced."
It's not only the stock market that has been through some tumultuous times. Zavadil commented on the maturing of traditional products and their impact on distributor sales. "However," he continued, "commercial printing, direct mail, electronic print and mail applications have been consistent areas of growth for us. We have seen our greatest growth in promotional products and packaging, and expect that to continue."
For 2004, Zavadil intends to expose more sales associates and distributors to the benefits of a partnership with American and its ESOP. He also plans to continue to focus on the needs of his sales associates, their customers and his vendor partners, while finding ways for American to add value. "We will also continue to improve efficiencies internally within American's processes and externally with customers and vendors," he added.
By Maggie DeWitt
IBSA
There are some new kids on the block calling themselves the International Business Solutions Alliance (IBSA). And, in its first year, this alliance of 61 distributors—with its national headquarters in Bowling Green, Ky.—ranked fourth among BFL&S's Top 100 Distributors.
"IBSA will bring the level of service that individual distributors are noted for into a national model," said President and CEO Paul Keith, who launched IBSA in 2002. "And, we're doing this without leveraging our future by borrowing tens of millions of dollars to put it all together."
Keith explained that profits from national account activity will be IBSA's financial backbone. "I tell [the affiliates] that IBSA should never cost them money, only make them money," he continued. "If they discover that they don't like IBSA, they can always leave. Nothing about their companies will have been changed."
Keith stressed that while IBSA seeks a national branding identity, its members remain independent, although many choose to label themselves an "IBSA affiliate." "Eventually, IBSA will develop national IBSA brand products to create exclusive product branding and guarantees," he said.
When it comes to billing, only national account activity is handled through IBSA's centralized system. Distributor affiliates remain individually responsible for all of their other billing.
"For at least 10 years, I've been planning for IBSA and figuring out different elements, such as what motivates a distributor, what will motivate manufacturers to participate, how IBSA will be marketed and how we can use what we are building as a lever to catapult us to another level," said Keith, who noted that the Internet-based, back office technical component provided by Xetex's ASP model is turning his dream into a reality. "Xetex brings it all together in one software package—including IBSA's unique commission splits—without a large investment, just training."
Between its largest distributor member ($20 million) and its smallest ($350,000) are the majority of affiliates, whose companies average $3 million annually.
Right now, Keith faces the challenge of making people understand that there is no "gotcha." "It's hard work breaking down the barriers," he said, "but they're coming down, and people want to join. IBSA has a shot at a $20 million contract. Individually, distributors wouldn't stand a chance, but together, we can make big things happen."
By Maggie DeWitt
Global DocuGraphix
Arguably, the motto associated most with Global DocuGraphix and its President and CEO, Graham McClean, is "Kiss our customers 'til our lips bleed." Not only is this sentiment very direct, but it has also proven extremely successful year after year, as fifth-ranked Global DocuGraphix once again earns a top spot in BFL&S's Top 100 Distributors.
According to McClean, his Lincolnshire, Illinois-based company's current year-to-date results show a 20 percent revenue increase and an even greater profit percent increase compared to last year's corresponding period. "We expect to maintain those types of results for the balance of 2003," said McClean. "Business is extremely competitive, and we work very hard every day to maintain and improve margins."
For 2004, Global DocuGraphix plans to introduce new products and services, including a Manual and Training Center system that will also be offered as a turnkey-hosted system by its TopForm Software division in Norcross, Ga. "We have acquired a multi-year contract with one of the largest telecommunications companies that uses this system, and so we intend to expand its use to other companies," said McClean.
Global DocuGraphix also plans to expand its Document Imaging business and re-enter the realm of scanning forms and systems with its Print-to-Mail service.
"We continue to experience a growth in customer use of our Web-based capabilities, which we see as fundamental to our success," said McClean. "We have had particularly good success competing against the major direct printing companies when we have been able to implement our technology solutions, and we see this continuing."
McClean estimates that more than 20 percent of Global DocuGraphix's customers currently use its electronic systems for ordering and releasing. However, McClean has said it before, and he'll probably say it again—face-to-face selling will never go out of style.
"What is going out of style and will continue to go out of style is the non-value-added direct sales approach," said McClean. "True sales professionals know this, constantly reinvent themselves, always look to add value and—coupled with timely, robust electronic offerings—position themselves to be of enormous value to their customers."
By Jennifer Hans
GBS
In last year's issue recognizing the industry's top distributors, GBS's President and CEO, John "Skip" Dragoiu, informed BFL&S that information technology had proven itself one of the most effective ways for GBS to assist customers in meeting their objectives. This North Canton, Ohio-based company's reliance on information technology continued into 2003.
According to Dragoiu, GBS's computer solutions unit was one of the most notable contributors to this sixth-ranked distributor's success this year. "Our computer solutions business unit is performing very well," he noted.
Both a VAR (value-added reseller) and software developer, GBS offers clients a wide range of technology services and solutions through industry-specific software, hardware, technical services and advanced network solutions.
One of GBS's computer solutions for the financial sector is the Sharetec System, which is a core processing system created for credit unions with up to 50,000 members. Features of Sharetec include home banking, audio response, Wisdom ALM, CorVu graphical management tool, photo/signature verification, COLD report archiving, self-serve kiosk, and RESULTS report writer.
In addition to information technology and internal changes initiated last year, Dragoiu noted that "hard work, teamwork, and good tactics and strategies" contributed to GBS's 2003 success, which resulted in $88,748,103 in sales—a figure that is down approximately $8 million from 2002's total sales.
However, GBS is sticking to its quality mission statement, which was drafted last year.
"Our strategic plan for 2004 is to support our quality/mission statement that states that we are committed to exceeding our customers' expectations by providing innovative and effective solutions through continual improvement of our business processes, products and services," concluded Dragoiu.
By Jennifer Hans