Print Solutions Magazine

Its recent short-term success notwithstanding, Indianapolis-based International Business Solutions Alliance is taking the long view when it comes to marketing, promotion and growth. The Alliance was awarded national contracts this year with health care group purchasing organizations Novation and FirstChoice Cooperative (FCC). It also announced a partnership with Xerox Corp. and Ford Motor Co.

IBSA owners communicated their strategy for maximizing potential business from these accounts at the organization’s annual meeting held July 18-20 at the Flamingo Resort in Las Vegas. The meeting also featured educational sessions, roundtable discussions, presentations by Novation representatives and an awards banquet honoring IBSA affiliates and suppliers.

Rodney White, vice president of health care sales for Indianapolis-based IBSA, updated attendees on the status of the Novation contract. He acknowledged that many affiliates experience frustration at penetrating accounts. Most hospitals that affiliates call on don’t seem to know what Novation is or that they’re part of its contract. One reason is because Novation is simply the contracting arm of VHA and University HealthSystem Consortium (UHC) and Healthcare Purchasing Partners International (HPPI), he said. Novation itself doesn’t have members, but these organizations do, he explained. To raise the alliance’s profile and educate customers about the Novation contract, IBSA will initiate a direct-mail marketing campaign this month. “The main thing we have to look at is that this is a marathon,” White says. “Nobody sees us as competition with Relizon, Moore and the majors. We will be competing with them in two years. I guarantee you. And we’ll be beating them, too.” He pointed out that IBSA affiliates have signed more than 100 accounts through the Novation contract already.

Barry Campbell, director for Novation, also addressed affiliates’ concerns that the contract wasn’t helping them instantly penetrate accounts. “We created and carved out in our bid process what we call Group 2 suppliers specifically to bring in someone to go after small to medium hospitals and non-acute accounts,” Campbell says. He challenged IBSA affiliates to continue calling on those customers and sign up more than 400 accounts by the end of the year. To emphasize the opportunity for long-term success, Campbell compared IBSA with Relizon, which first received a Novation contract in 2000. At that time, Campbell said, the company was only doing $1.6 million worth of Novation business. Last year, Relizon generated over $50 million in sales with Novation members and picked up other GPO contracts as well.

A committee responsible for developing IBSA’s long-term marketing plan shared its results. The plan emphasizes the alliance’s stated purpose—to win and maintain national accounts. IBSA will focus on Fortune 1000 accounts, said Michelene Bajakian, national account sales representative for IBSA. It will survey affiliates to determine which are currently working with national accounts, and research prospective accounts. Financial incentives are offered to affiliates who refer national accounts. Bajakian also announced that IBSA had freshened its logo and adopted a new slogan, “Local Expertise, Nationwide Strength.”

Regarding its health care contracts specifically, IBSA’s direct-mail campaign will be based on a targeted list acquired from Novation. The letters will focus on affiliates’ products and services, capabilities. “It’s designed around making sure that we correct the idea that they don’t know who we are,” White said. Mike Weinzierl, president of Professional Graphic Communications, Sewickley, Pa., coordinates the mailings. Long-term marketing efforts include training affiliates about the health care market, developing a standard IBSA PowerPoint presentation for affiliates’ use, advertising IBSA in health care journals and sending regular news releases in key markets.

At the awards banquet, IBSA honored affiliates and suppliers who had contributed to the success of the organization. DFSI, Addison, Ill., and Block Graphics, Portland, Ore., were named Suppliers of the Year. Eagle, Orange, Calif., and Data Forms, Fayetteville, Ark., were named Affiliates of the Year.

Boise Cascade announced that it has signed a letter of intent to lease a facility in Lathrop, California. The 30-acre site, which includes a 150,000-square-foot building, will be converted into a new building materials distribution center to serve the northern California and northern Nevada trade areas.

Additionally, the company announced plans for a major expansion of its engineered wood products operations in Alexandria, La., to support customers in the eastern United States. The plans are subject to regulatory approval. The project will add approximately 4 million cubic feet of laminated veneer lumber (LVL) capacity to the facility by early 2006. The company also plans to build another 4 million cubic feet of capacity at the plant.

Standard Register licensed its ExpeData® Print Solution that allows printing uniquely patterned digital paper to Baumer AG, a printer of business documents in Frauenfel, Switzerland. Baumer is a member of Standard Register’s Global Print Network program and is the second international company to license the solution since its May launch.

MeadWestvaco Corp., Stamford, Conn., posted a second-quarter loss, reversing a profit a year ago, because of one-time charges and the sale of a business. It reported a quarterly loss of $83 million compared with a profit of $47 million last year. It reported a loss from continuing operations of $13 million from a profit of $74 million. The company sold off its printing and writing papers business for $2.2 billion in cash in the latest quarter and used half the proceeds to pay down debt.

Wilmer, Dayton, Ohio, announced that it’s now an approved printer for security prescription pads for the state of California Board of Pharmacy and Florida’s Agency for Healthcare Administration (AHCA). Wilmer meets all compliance requirements, including multiple security features manufactured directly into the secure prescription pads and California’s mandatory watermark. The company prints the pads within five business days after approval. Minimum order requirement is four pads or eight books. Pads are available in sizes of 5 1/2 x 4 1/4 inches with one or two parts.

Nashua Corporation announced financial results for the second quarter ended July 1. Net sales for the second quarter of 2005 were $73.2 million, compared to $72.6 million for the second quarter of 2004. Gross margin for the second quarter of 2005 was $12.1 million compared to $13.6 million for the second quarter of 2004. EBITDA was $3.3 million for the second quarter of 2005 compared to $3.8 million for the second quarter of 2004.

Cenveo™, Englewood, Colo., said it didn’t approve of Burton Capital Management LLC’s nominees for the Sept. 14 special meeting of Cenveo shareholders.

In response to a July 18 letter from Robert G. Burton, chairman, CEO and managing member of Burton Capital Management, James R. Malone, president and CEO of Cenveo, said, “We have received your letter of July 18 in which you state your belief that the election of your nominees in a contested proxy fight may not trigger change-of-control provisions in Cenveo’s debt instruments and severance agreements, if the board takes certain actions. The simple fact is that you are wrong. Cenveo has entered into contracts with bondholders and others which have certain consequences in the event of a change in control (as defined) of Cenveo. Election of your nominees to the Cenveo board in a contested proxy fight would constitute such a change in control, and would impose upon Cenveo the contractual obligations that were bargained for at arm’s length with third parties who have relied on Cenveo’s promises in this regard. Indeed, the election of your nominees is precisely the sort of change of control against which these third parties sought and bargained for protection. The Cenveo board does not approve of your nominees. It cannot pretend otherwise for the sole purpose of depriving third-parties of their contractual rights, and will not be party to your attempts to manipulate events in an attempt to do so.”

On June 10, Cenveo, Englewood, Colo., received a letter from Burton Capital Management, Goodwood Inc., and others, calling for a special meeting of Cenveo’s shareholders. In May, Cenveo rejected a proposal from Greenwich, Conn.-based Burton Capital Management that would have resulted in the appointment of Burton as the firm’s chairman and CEO.

HP, Palo Alto, Calif., plans to simplify its structure, reduce costs and place greater focus on customers by reducing its workforce over the next six quarters by 14,500 employees, or about 10 percent of its regular full-time staff. It also plans to modify its U.S. retirement benefits programs. HP will dissolve its Customer Solutions Group—a standalone business group responsible for sales to enterprise, small- and medium-size businesses and public-sector customers. It will merge the sales function and related accountability directly into three individual business units—Technology Solutions Group, Imaging and Printing Group and Personal Systems Group. The company expects these actions to save $1.9 billion annually.

Also, Eastman Kodak Company, Rochester, N.Y., announced it will extend its restructuring activity in which the company planned to reduce employment worldwide by 15,000. The company now plans to increase the total employment reduction from 22,500 to 25,000, and to reduce its traditional manufacturing infrastructure to approximately $1 billion, compared with $2.9 billion in January 2004. The move is part of the company’s effort to accelerate its digital transformation and to respond to a faster-than-expected decline in consumer film sales. The company lost $146 million in the April-June quarter, compared with a profit of $136 million in last year’s second quarter. Sales grew 6 percent to $3.69 billion from $3.46 billion a year ago.

International Paper Co., Stamford, Conn., announced a restructuring plan that will dramatically shrink the paper company in an effort to boost profits and cut debt by focusing on core businesses. The company will sell $8 billion to $10 billion in assets, including millions of acres of forestland around the country, close mills and possibly relocate its headquarters. Substantial job cuts are expected. The move is the latest effort to cope with weak demand and higher costs in the paper industry.