Top Distributors Keep Pace with the Market

A challenging marketplace motivates and inspires this years' top three distributorships

WorkflowOne's Five Keys to Success

LED BY PRESIDENT Dave Holland—a 25-year industry veteran from the ranks of the major directs—Norfolk, Virginia-based WorkflowOne (formerly Workflow Solutions) has captured the top spot in BFL&S' distributor ranking this year. Holland attributes the company's success to a five-point strategic plan that WorkflowOne's management team developed after a thorough review of operations.

"The first area we focused on is sales growth and retention, with a special emphasis on promotional items, commercial printing and print on demand. We have set up buying groups, both off shore and domestically, to facilitate the promotional products initiative, and have been aligning ourselves with those who we refer to as our certified trade partners in commercial print to help support our sales staff and customers in that area," said Holland. "As for the print on demand, we're not really interested in what could be considered commodity items, but rather, enhanced applications based on technology, such as direct mail projects and fulfillment."

Operational excellence is the second area that the team evaluated. This involved putting all of WorkflowOne's certified trade partners through a rigorous quality-certification process. Holland explained, "Typically, what we are asked by end-users when competing against major direct manufacturers is 'How can we be sure that the quality is there?'" He continued by stating, "We've introduced a Lean Six Sigma quality program to our certified trade partner network, and we're conducting onsite visits to verify that it is being carried out. We are also in the process of implementing RFID bar code warehousing systems, and will have all of our facilities done within the year."

Technology is the third, and a very important, component to the strategic plan. "We enhanced our iGetSmart platform, which is already a strong platform, with a Web-services portal," explained Holland, "and, we've already implemented the system in two of our sales offices, as well as in four of our customer accounts."

The fourth key element entailed taking a close look at the company's internal back office to see how effectively the customer service representatives were supporting the sales people. Subsequently, WorkflowOne developed new criteria for evaluating individual job performance. "In addition, we have organized a completely new sales management team," added Holland. "While we used to have selling managers, we now have full-time sales managers who manage the sales process."

Holland described the fifth aspect of the strategic plan as a cultural revolution, which involves the rebranding of WorkflowOne. "Basically, we are now taking a service-revolution approach to business versus the old manufacturing approach, which is a 'we are going to make it, and they are going to buy it' philosophy," Holland explained. "Instead of the company pushing product on the sales people, who then push it on the customer, we start with the client's need first."

In September, WorkflowOne made the stunning announcement that it had purchased Relizon. When asked how the Relizon acquisition will impact the company's position in the independent distributor channel, as well as the Novation contract, Holland pointed out that the deal was still being finalized [at the time of the interview], and that more details would be forthcoming. "We will most certainly be taking the best practices from both companies to define our go-forward strategy," he said.

At the end of the day, Holland said that the strength of the company lies with all of its people and the clients it supports. "Our philosophy can be represented by an inverted pyramid with clients first, sales associates and customer service representatives second, and at the very bottom is the management support team that makes it all happen," he continued. "What distinguishes us is our intense focus on the customer and our reliance on our service for success and profitability."

Proforma's Award-Winning Performances

THERE IS NO END to the accolades for the Proforma team. In addition to being No. 2 in BFL&S' Top 100 Distributor ranking, Cleveland-based Proforma has been ranked No. 168 in the annual Franchise Times Top 200 List. The company was also recently honored with the Innovation in Business Visionary Award, sponsored by Smart Business and Anthem Blue Cross and Blue Shield of Ohio, and was named to the Advertising Specialty Institute's Multi-Million Dollar Round Table as a gold-level distributor.

Founded in 1978, Proforma is a group of 650 independent business owners from both inside and outside of the industry with proven, successful sales skills. They've aligned themselves in order to create a strong distributor organization with some serious purchasing clout—Proforma reported more than $300 million in system-wide sales last year. Owners also share in a multi-million dollar marketing fund, and benefit from the assistance of 100 employees in the Cleveland support center who are at their beck and call every step of the way.

"We established a unique, 14-member OAC (owners' advisory council), which is made up of geographically elected representatives who serve as the individual franchise owners' voice in the marketing team," explained Greg Muzzillo, a co-CEO with his wife Vera. "Together, the OAC and the Proforma executive committee shape the company's strategic plan, including how Proforma's marketing dollars will be spent."

Some of the money has been invested in a team that identifies new, major North American accounts—those worth a minimum of $100,000, but, preferably, more than one quarter of a million dollars in annual sales. "We're particularly interested in forms-management opportunities with either existing print management or company store programs," said Muzzillo. "Proforma's business development team can then assist franchise owners in contacting the accounts. There is even an expert on staff to help owners complete requests for proposals and quotes."

He went on to say that the owners also voted to have the OAC form a team that is dedicated to actively recruiting proven sales and customer service professionals for the owners at no cost to them—something, Muzzillo noted, that is a huge benefit for owners.

Proforma offers unique benefits to manufacturers, as well. There are currently 300 PLPs (preferred limited partners) supplying product to owners. "Suppliers pay good money to find new distributors, and at Proforma, we add more than 100 new distributors a year to our family which helps the suppliers growth," Muzzillo said. "It's also easier to do business with us. With one phone call, suppliers can handle all of their accounts-receivable needs, instead of contacting hundreds of individual distributorships."

Proforma's annual sales conventions also offer suppliers an efficient way to instantly educate a large group of distributors about their products and services. "These are the reasons why suppliers can offer us a minimum of five percent savings," said Muzzillo, "and those savings basically pay for most of the fees that franchise owners pay to Proforma."

Proforma distributors also have the advantage of exclusive products to offer to end-users, such as V-Mailcards and Proforma's Snap Quick signage program. "Instead of being a 'me too-seller,' the unique, patented products differentiate a Proforma owner from the competition, and can help him or her to get their foot in the door," Muzzillo said.

He acknowledged that some distributors take a product approach to selling. "But, I have always believed that we are relationship builders and solutions sellers, and if a distributor has a good relationship with a customer, that customer will want to buy as many products as possible from that distributor," said Muzzillo. "Businesses are trying to drive their efficiencies, and that means reducing the number of suppliers. It's great to call on marketing organizations and serve as a one-source-solution for all needs."

American Solutions for Business Stays Healthy and Wealthy

RANKED NO. 3 THIS year is employee-owned American Solutions for Business (ASB), Glenwood, Minn. Established in 1981 by Larry Zavadil, president, ASB has a national sales force of 525 and a staff of 295 individuals.

The company recently merged with Amarillo, Texas-based Health Print, which was founded in 1988 by Charlie Graham as a health-care-focused distributorship. The company reports more than $8 million in sales, and its 32 employees have seen a seamless transition into ASB over the past few months.

"We welcome the Health Print personnel to our team. This merger will continue to make American stronger and give us a more significant presence in our industry," said Zavadil. "Thus far, the integration of Health Print has gone very well. It was a win-win situation for both organizations, and ASB is actively engaged in discussions with other similar distributors."

Zavadil went on to say that he is very pleased with the progress that ASB is making with the Novation account. "As with any partnership with a large national program, we have spent a lot of time learning how Novation works and looking to see where we can add the most value to the partnership. We have added hundreds of new facilities across the nation and have seen a steady increase in sales."

When asked how he thought the WorkflowOne/Relizon merger would impact the Novation contract, Zavadil said it was too soon to venture a guess. "But, regardless of the outcome, we are excited by the opportunities and activities that are being created in the market by the announcement," he added. "Only time will tell what effect the merger is going to have on the independent supply channel overall. For years now, WorkflowOne has operated more like a major direct than as an independent distributor, so I'd be surprised if there is much of an impact as a result of the acquisition."

ABS distributors provide printing, packaging, enterprise-wide document management solutions, office furniture and equipment, janitorial supplies and e-commerce packages. Sales of promotional items are also growing.

While some traditionalists in the industry believe selling promotional products is taking the easy way out, Zavadil said that any distributor who has sold both business forms and promotional products understands that promotional products can involve as many details and intricacies as a complicated form or label application. "And, even when the customer is satisfied with a promotional products order, repeats are very seldom exact repeats," he commented.

Undoubtedly, winning a large national account such as Novation is an amazing achievement that is driving profitability for ABS, but it has also meant a whole new set of challenges. "As the market continues to change and American is recognized as a viable player in the national account arena, we have had to implement changes that help us deal with these new successes," said Zavadil. "We also continue to face the challenges of growth resulting from a steady increase in the number of sales associates who join American every year."

He went on to say that ASB's highest priority going forward into 2006 is to continue moving down the technology path toward a fully integrated system with sales associates, customers and vendors.

By Maggie DeWitt