Strength in numbers

Business group gives small companies more power

Tuesday, August 03, 2004

Best Business Systems of Bowling Green used to distribute printed documents and promotional items to almost all the local banks and various other customers, according to Paul Keith, president and CEO of Best Business Systems.

The company had satisfied clients, he said. The computer forms, check invoices, newspaper bills, promotional pens, hats and T-shirts filled the needs of their customers.

But doing a great job wasnt enough for Keiths business.

Because of mergers and acquisitions, Best Business Systems lost some of its key contracts to larger companies that could fill the needs on a national scale.

That started eight years ago. The losses didnt come because the company did bad work, but because the it didnt have the reach of larger printed-document distributors, Keith said.

Its unfortunate when a customer tells you that you have better prices, better service, but they had to drop you because ownership changed, he said.

The problem wasnt unique to the Bowling Green company. Across the country, distributors and printers were losing their business to the national players, Keith said.

The model shifted, he said. Thats when I became determined to do something about it.

From this came Keiths brainchild International Business Solutions Alliance. Two years ago, the budding alliance had 10 charter members, including Best Business Systems.

Today, the Bowling Green-based alliance connects the distribution and manufacturing capacity of about 120 affiliate distributors and manufacturers from across the nation. Contracts are arranged through the central office in Bowling Green and other IBSA offices, and affiliates generally geographically close to the account would fill the orders of the customer.

Together, the affiliates have a goal of competing nationally with the big three companies: Moore Wallace, a division of R.R. Donnelley & Sons, Standard Register and Relizon, Keith said.

While the alliance remains in its infancy, its about to rear its head and roar. If a pending contract comes through, IBSA would win roughly 30 percent of the national hospital document market, a tasty morsel worth about $1.2 billion.

In less than 60 days, well know, Keith said.

He estimates the total national market to be $20 billion.

One of the affiliates, Cortan Industries in Redmond, Wash., could see its business increase 200 percent to 300 percent over the next five years, according to Roger Courson, president and CEO of the company, which distributes and prints documents and other items.

Im more excited now in this industry than Ive been in the last 38 years, Courson said.

He heard about IBSA two years ago through document industry news.

It appealed to Courson because they wanted to sell national accounts and would initially start in the medical field.

Because Ive been very involved in management and development of national proposals, Im extremely confident that the prototype we developed with IBSA will be extremely successful, Courson said.

Its going to change the entire philosophy of purchasing on the national account level, he said.

Courson isnt the only one excited.

We are extremely enthusiastic about the IBSA, are very pleased to be a part of it and will work very hard (for it) to be a success, said Barbara Bliley, co-owner of Business Forms Specialty of Hampton, Va., a printed document distributor.

Bliley also anticipates growth in her business from taking part in the alliance. She understands there are many national accounts that need national coverage.

They need to have folks in all the locations where they operate, Bliley said. By having a group of affiliates that geographically cover the country, we can offer that to a national account.

Two weeks ago, IBSA held a conference for its affiliates and a handful of interested companies at the Sloan Convention Center.

Those attending were versed in the logistical structure of IBSA, how contracts would be dolled out, how payments would be made, and reassured that even while a company would become an affiliate of IBSA for candidacy for nationwide accounts, each company would still be able to conduct its regional business in its own back yard independently.

Keith informed the affiliates about the uses of the organizations software, Xetex, which would take care of all billing centrally.

Each member affiliate is screened before being admitted to the organization, and some could be asked to leave if business performance doesnt meet IBSAs high standards, Keith said.

Mike Long, owner of Proforms in Knoxville, attended the IBSA conference.

It sends us out in the larger market place as a unit, Long said.

He gave the classic reasons why a printed document business owner would want to join IBSA and pursue lucrative national accounts: Its probably the Jacksons, Grants and Hamiltons.  Daily News ·813 College St. ·PO Box 90012 ·Bowling Green, KY ·42102 ·270-781-1700