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Solutions January 2006
INDUSTRY
NEWS
Workflow:
Outsourcing Still Important After
Acquiring Relizon
Now
that it has completed the purchase
of Dayton, Ohio-based The Relizon
Company, Workflow Management Inc.,
will be a “document provider
and outsourcing powerhouse”
that will rely on independent
manufacturers as well as its own
printing facilities to produce
jobs, said Greg Mosher, chairman
and CEO of the combined firm,
during a conference call with
reporters Dec. 1.
Greenwich,
Conn.-based Workflow Management,
the parent company of WorkflowOne,
United Envelope and Freedom Graphics,
will have more than 5,000 employees,
32,000 clients and $1.2 billion
in annual revenue.
Prior
to its purchase by Workflow Management,
Relizon was privately held by
The Carlyle Group, a Washington,
D.C.-based private equity firm
that had purchased the major direct-selling
manufacturer in June 2000 for
$360 million in cash. Mosher said
that Relizon was an ideal acquisition
candidate because of its long-term
relationships with customers,
strong position in key vertical
markets (including financial services,
retail, health care, government,
non-profits and sports), and network
of manufacturing and logistics
centers.
Since
rumors of the acquisition surfaced
earlier this year, some industry
pros speculated on how much business
the combined company would drive
to Relizon’s plants, pointing
out that WorkflowOne is quick
to market itself as vendor-neutral.
Mosher said the combined firm,
which has yet to be branded with
a name, will outsource approximately
$600 million of business annually,
a figure he expects to reach $750
million by 2007. “We want
our trade network and our relationship
with independent manufacturers
to grow,” he said. “We
have no desire to keep buying
manufacturing equipment when it
could be far better to outsource.
We’re not stuck in any one
position—we don’t
have to be a manufacturer, and
we don’t have to be an outsourcer.
We’re truly nimble.”
Relizon
might be known as a major direct-seller,
but the company outsourced
45 percent of its business last
year, Mosher said. He also said
WorkflowOne manufactured 25 percent
of its business, underscoring
a truth in the printing industry:
The line between distributor and
manufacturer has blurred, and
serving clients in the best way
possible trumps traditional roles.
Mosher said the new company’s
salespeople will have the autonomy
to use whatever vendor best suits
each order, so it remains to be
seen how much those salespeople
are encouraged to use plants owned
by their employer.
A
key challenge for the combined
company is the amount of work
that lies ahead, including deciding
best options for technology and
infrastructure, marketing and
sales, vendor relationships, and
other strategies. Rodney Hedeen,
Relizon’s former president
and CEO, is leading that effort.
He and others on Relizon’s
former management team will remain
for an “extended period
of time,” Mosher said.
FedEx
Kinko’s Wins GPO Contract
to Serve Federal Agencies
The
GPO awarded a contract to Dallas-based
FedEx Kinko’sSM Office and
Print Services that allows all
federal agencies direct access
to services at FedEx Kinko’s
locations worldwide. Under the
GPOExpressSM program, the agencies
will receive significant discounts
and benefits on their printing
and finishing needs at any store
location, any time. The GPO will
test the program with several
agencies, which have agreed to
participate in the pilot program.
FedEx Kinko’s will offer:
•
Around-the-clock access to its
locations worldwide
•
Online ordering
•
High-quality printing services,
including full-color vinyl banners,
posters, back-lit and metal-yard
signage, auto magnets, business
cards, stationery, invitations,
brochures, manuals, presentations,
newsletters, flyers and more
•
Design and finishing services
for digital prints and copies
in black-and-white and color
•
Binding, mounting and other finishing
services
•
Print on-demand programs
•
Document scanning into various
formats
•
Digital oversize printing
•
Access to a wide range of FedEx
Express and FedEx Ground shipping
services
IDS
Wins Contract from Medical Facility
Integrated
Document Solutions® Inc.,
Dallas, won a 5-year, $3 million
contract from Erlanger Health
Systems, Chattanooga, Tenn., to
provide document management services.
Erlanger Health Systems has six
locations with 851 beds in the
Tennessee valley.
Weyerhaeuser
to Sell Mills, Cut Linerboard
Production
Weyerhaeuser
Company, Federal Way, Wash., is
indefinitely curtailing production
on its 350,000-ton-per-year containerboard
machine in Plymouth, N.C. The
company also will sell its composite
panels business. The 48-year-old
Plymouth No. 1 machine makes linerboard
from recycled fiber. The company
plans to offer transition benefits
to approximately 200 hourly and
salaried employees affected by
the move.
The
company’s composite panels
business consists of mills that
produce medium density fiberboard
(MDF) and particleboard, and are
located in Albany, Ore.; Bennettsville,
S.C., Eugene, Ore.; Malvern, Ark.;
Simsboro, La.; and Clonmel, Ireland.
It will continue to operate the
mills while it seeks new ownership.
The North American mills have
the capacity to produce a total
of 1.1 billion square feet, while
the Clonmel mill has a capacity
of 230 million square feet. Approximately
1,000 employees work in the mills.
