Speed Means Stronger Bonds
To satisfy end users' get-it-here-now attitude, many printing companies find allies in each other. "Collectively, we can do so much more than we can do individually," says Paul Keith, president and CEO of International Business Solutions Alliance (IBSA), headquartered in Bowling Green, Ky. "We have a strategy to go after the kinds of accounts distributors typically don't excel in." With that in mind, he launched IBSA in 2002 so multiple firms could compete against the majors for medical buying group contracts, Fortune 500 accounts and key government business. IBSA now includes more than 200 distributorships and more than 70 suppliers.
In 2004, Novation, the largest volume group purchasing organization in the health care field, reached tentative agreements with IBSA and American Solutions for Business, headquartered in Glenwood, Minn., that took effect Jan. 1. The Relizon Company, Dayton, Ohio, was the only national direct-selling company to be awarded a contract with Novation, as Chicago-based R.R. Donnelley (which owns Moore Wallace) failed to renew its Novation contract. The news gave IBSA and American Solutions for Business a highly sought-after entrée into hospital accounts and other medical facilities. "Most end users haven't heard of us yet, but it's our job to get them educated," Keith says. "We think this is one of the best things that's ever happened to the independent channel."
Because the majors are mired in changing leadership, plant layoffs, compensation restructuring or a mix of those, many printing pros say it's prime time to compete against them. They also say it's time to toss aside former taboos. According to a recent DMIA survey, 79 percent of independent manufacturers said they make joint sales calls with distributors. Also, many firms are looking for alliances with companies on the industry's periphery, including software companies, service bureaus, database management companies, advertising agencies, local commercial printers and mail houses.
Today's competitive climate is the incentive many companies need to strengthen supply-chain bonds, says Georgianne Plumberg, product manager for forms papers at Boise Paper Solutions, a supplier based in Vancouver, Wash. "The biggest advantage for distributors and printers is to have resources who know what they don't, because none of us can be experts on everything. We need each other in the supply chain," Plumberg says. "Some companies are afraid to tip their hands and be open about who their customers are, but they should trust their suppliers enough to share information."
George Crump of FRI Resources says marketing-minded manufacturers are improving supply-chain relationships and should be commended. "Bringing new products to market, then helping distributors understand the value of them takes a lot of work," he says. Crump says team-selling, educational seminars and other joint manufacturer/distributor programs are necessary for both sides to succeed.
With a daily infusion of new technology, new competition and new ideas in the industry, printing pros are ready for an energetic new year. "It's a great time to be in this business," says Paul Keith of IBSA. "The independent channel is ripe for growth, and we all can make it happen."
Darin Painter is managing editor of Print Solutions. Email him your comments at dpainter@PSDA.org.
Get Updated DMIA Industry Reports
DMIA's new white paper, "Emerging Trends & Opportunities in Print," includes a section about the basics of RFID technology and examples of ideal applications, a section on the growth of packaging and much more. To order it or DMIA's "2003 Distributor Sales & Trends Data," call the association at (800) 336-4641 or send email to Tina Davis tdavis@PSDA.org.
