Workflow: Outsourcing Still Important After Acquiring Relizon
Now that it has completed purchase of 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.

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 didn't say how much Workflow Management paid for Relizon, just that his firm and The Carlyle Group were both "pleased." He said he had been targeting Relizon for more than a year, but Relizon officials initially told him the firm wasn't for sale. "Persistence paid off," Mosher said, adding 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. "They are also looking for ways to improve all of our communication efforts and identify opportunities to grow together as a team."

Relizon recently moved into a new $26 million, 5-story facility in Dayton, and Mosher said he plans to keep the new company's headquarters there. The facility employs 450 people, and he said he hopes the firm "writes enough business to turn 450 jobs into 650 jobs."

FedEx Kinko's Wins GPO Contract to Serve Federal Agencies
The GPO has awarded a contract to FedEx Kinko's(SM) Office and Print Services that allows all federal agencies direct access to services at FedEx Kinko's locations worldwide. Under the GPOExpress(SM) 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

Weyerhaeuser to Sell Mills, Cut Linerboard Production
Weyerhaeuser Company 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. About 1,000 employees work in the mills.

Weyerhaeuser recently announced the indefinite closure of a pulp and paper facility in Saskatchewan, a box finishing operation in California, a sawmill and pulp mill in Washington, and a plywood mill in Oklahoma.

Staples CEO Exercises $11.7M in Options
Staples Inc. Chief Executive Ronald Sargent exercised options on 1 million shares of stock, receiving $11.7 million in the transactions, according to a Nov. 22 story in the Boston Business Journal. Sargent has been Staples' chief executive since 2002. Last year he received a $1 million salary, a $1.7 million bonus and restricted stock worth $3 million. He has the largest stake in Staples stock of any individual, owning 1.4 million shares.

Corporate Express Acquires Portsmouth Paper Company
Corporate Express Inc. acquired the Portsmouth Paper Company, Portsmouth, N. H. Portsmouth Paper will continue to operate as an independent business. The move enhances Corporate Express' facility supplies and packaging services, it said.

Domtar to Cut 1,800 Jobs, Close or Sell Mills
Domtar Inc. is cutting 1,800 jobs and will close or sell several mills to steer it back into profitability. Montreal-based Domtar said it expects to permanently shutter its mill in Cornwall, Ontario, and parts of its Ottawa, Ontario, mills. It also will sell its mill in Vancouver, British Columbia, and shut sawmills in Grand Remous and Malartic, Quebec. The Cornwall cuts include 390 positions already eliminated in December 2004. The Cornwall mill is the largest to be closed, with 910 workers.

Wehrli in Top 25 Pro Football Hall of Fame Semi-Finalists
Roger Wehrli, vie president of manufacturer FormStore Incorporated, was named one of the 25 semi-finalists to the 2006 Pro Football Hall of Fame. The board of selectors chose them from a list of 112 preliminary nominees, according to a Nov. 22 story in CBS SportsLine.com. A list of 15 finalists will be announced in mid-January. Wehrli was one of the 15 finalists to the 2005 Pro Football Hall of Fame. In August 2004, Wehrli was one of 13 former players enshrined into the College Football Hall of Fame in South Bend, Ind.

Obituary
Stuart N. Krouss, president of Better Business Forms Inc., Baltimore, died on Oct. 23 after a lengthy illness. He is survived by his wife, Beatrice, and daughter Cyndy Collier and other relatives. Krouss was honored at Print Solutions 2003 Conference and Expo for 50 years of membership at DMIA (formerly NBFA). Better Business Forms has merged with Flexprint Graphics, Baltimore.

Product Identification Graphics Create Opportunities
Nancy Medinger sells printing to three of the country's top 50 convenience store chains. The sales representative for Crescent Printing, Onalaska, Wis., started by providing design services, promotional materials and direct mail capabilities. Recently, she added product identification graphics to the company's repertoire, a niche that has solidified her relationship with clients and boosted profits. Full story.

Here are this week's top unusual source requests received by DMIA:

1. Expansion Envelope, 9-7/8" x 6" made of 150# paper with 1-color imprinted; QTY=1M - 2M
2. 3-part unit set with the last ply used to collect blood samples; QTY=10M
3. Rolls of white butcher paper; QTY=24 Rolls
4. Paper clips made of copper; QTY=Order Minimum
5. Different unit sets with some sets having stubs on the top and bottom, collated and bound into a book with a wrap-around cover; QTY=100 Books
6. Turnpike tickets with a magnetic stripe on the back; QTY=200M
7. Box bottom presentation folders made from vinyl or plastic with a hook and loop fastener; QTY=3,500
8. Decals made from retro-reflective material; QTY=1.5M
9. Companies that offer online proofing of business cards
10. Companies that can assist with forms design without printing

If you have a source request—for anything—call the Hotline at (800) 333-2828 between 9 a.m. and 5 p.m. Eastern Time, or use the Source Hotline Database online. For new sales ideas every day, try our 1,000 Sales Ideas Database. Manufacturers, if you produce any of these items and would like to check your listing with the Source Hotline, please email Cheryl Rush.

Excess Inventory Depot
DMIA's Excess Inventory Depot enables members to sell items such as excess inventories, blank forms and labels, pre-converted material, paper stock, converted material, new or used equipment and other business-related items. Take advantage of this introductory offer and post your items for free. Find out what's for sale. DMIA members can view postings 24/7 at no charge.

E-Weekly Instant Poll
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Online sales surged on Cyber Monday. Do you think it is okay for employees to shop online at work?
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