Allstate All Stars
The superior capabilities, innovations and vision of the Allstate Print Communications Center make it a role model and a true Industry Leader.
If someone took all of the management tips and equipment advice ever offered in the pages of In-Plant Graphics and put them to work in a single in-plant, the resulting "super in-plant" would be equipped to handle virtually any type of print job, from design through mailing.
It would report stellar savings to its appreciative management, thrill its customers with service and be a true leader in the printing industry—a model for in-plants everywhere. But such an in-plant doesn't exist, right?
Think again.
Tucked away in the Chicago suburb of Wheeling, the Allstate Print Communications Center is exactly that: a "super in-plant." Its efforts to build itself into a thriving operation—rivaling most commercial printing firms—have earned it the respect of printers everywhere.
Because of its status as an in-plant role model, its successful management techniques and its efforts to help other in-plants through its role in the International Publishing Management Association (IPMA), the Allstate Print Communications Center has been selected as this year's IPG Industry Leader of the Year.
Though the honor has not previously been bestowed on an in-plant, Allstate is a fitting recipient. It leads the pack for, among other things, its uncommon commercial insourcing efforts, its integration with its company's data center and mailing operations, its strong advocacy of digital printing (evidenced by its purchase of an Indigo digital color press) and a relationship with its parent that is based on mutual admiration.
Plus, because of the respect it gets from commercial printers, Allstate serves to strengthen the image of in-plants everywhere. In fact, Allstate recently received its third NAPL Gold Award, an accolade usually conferred on commercial shops.
"It's not only a benchmark that we're a successful in-plant, but that we can compete on an even level with commercial plants," remarks Bob Tierney, Allstate print operations director. "That's where our vision has always been."
Plenty Of Awards
The center has also garnered other encomiums, including:
• Two second-place In-Print 98 awards for digital color and a four-color process poster.
• One first- and two second-place In-Print 97 awards.
• The IPMA 1995 Management Award, which recognizes an outstanding in-house corporate publishing department.
All of these awards reflect the center's uniquenesses in management, leadership and print quality. For example, unlike many in-plants, Allstate now insources commercial printing jobs. According to Tierney, insourcing currently accounts for 5 percent of Allstate's total output. However, he plans to increase that percentage.
"We have lofty aspirations," Tierney says. "Our Allstate printing volume is about 20 million sheets a week, and we do about 2.5 million mailings a week. Within the next five years, we'd like to insource at least half of those totals."
To increase its commercial work, the center welcomes all types of jobs.
"It makes no difference if we get a $300 carry-out menu job from Joe's Ribs or a $29,000 four-color DocuTech training manual from Sears. We don't turn anybody away because we feel motivated by the learning experience," says Tierney.
A three-person internal sales team, armed with sales kits, makes cold calls to prospects. To date, the group services the gamut of businesses and welcomes work from print brokers and its IPMA contacts.
Tierney also plans to expand the sales team with a commercial print sales representative. He has submitted the necessary paperwork to hire a salesperson on a compensation basis with an incentive commission.
"We know we need a focused marketing effort because...we have operations backgrounds; we're not sales and marketing people," he explains. "The offset sales business is relationship-oriented. If the chemistry, the delivery and the quality are good, a print buyer is less motivated by price than by how comfortable he or she is with the salesperson."
So why would a customer choose the Allstate Print Communications Center over a large commercial printer? Tierney stresses that the center leads in pricing, as well. He maintains that since Allstate has invested heavily in its printing operation, all work is already done in the most economical and efficient manner.
In addition, the center utilizes superior equipment and employee training provided by its parent—an added incentive to prospective customers.
Of course, pricing depends on all the usual factors—including the type of job, applications required and turnaround. But Tierney believes that pricing for the center's DocuTech work is especially competitive.
"We were one of the first DocuTech users in the country. We have 10 DocuTechs running at a three-shift capacity and we have a Xerox rep on board to ensure that the equipment runs properly," notes Tierney. "So there's no question that our pricing in this area is 15 to 20 percent below any other DocuTech provider," he adds.
The firm's other print jobs require moderate runs of process color, web printing in any length and digital printing. In particular, the center's Indigo E-Print 1000 and Xerox DocuColor 40 digital printers are used for short runs of four-color presentations, training manuals and covers for training guides. Allstate is one of the few in-plants that own an Indigo.
The in-plant has ordered machinery to fill additional Allstate capacity and aid its insourcing efforts. Two Komori Lithrone presses—a five-color and a two-color—as well as a two-color GSS roll-to-roll web press will expand Allstate's operations. Two Gunther 81⁄2x11˝ intelligent inserters are on order for the mail area, and six Océ PageStream 932 twin electronic printers will replace the current 744s.
"The new Komori presses and bindery equipment will arrive between July and August," says Jerry Grouzard, print operations manager. "For the most part, we have capacity filled with Allstate work. We have some DocuTechs that we brought in to increase our capacity and that's opened up the biggest part of our insourcing at this point."
True leader that he is, Tierney is eager to offer advice. Managers, he says, should cross-justify equipment purchases based only on current work.
"If we can't cost justify equipment with a 24-month ROI, we don't buy it," he declares. "Equipment depreciation is the greatest hidden expense in managing a successful print business. You cannot have an overhead of equipment depreciation anticipating work to arrive."
That said, the company is considering plans to open a 55,000-square-foot facility nearby to accommodate the in-plant's commercial volume.
"We'll use some of our print synergies in the new plant, but we won't open a full prepress area until we have all the capacity used here," notes Grouzard.
Respect From Management
Certainly, the insourcing capabilities, equipment purchases and this new facility all spring from the superior relationship that the center maintains with its senior management. This relationship is especially surprising in this decade of downsizing and operational consolidation. Tierney believes that the center's efficient procedures have convinced Allstate's senior management to not only retain the in-plant, but to let it thrive.
"We maintain our strong relationship by constantly demonstrating how cost-effective we are," Tierney says. "We have compiled financial statements to substantiate our operation's viability and why it should be the preferred provider of print for Allstate."
In fact, the center prepares a semi-annual commercial cost comparison. It also publishes a monthly profit and loss statement that finds its way to the in-box of senior management. Tierney even managed to retain Big Six accounting firm Deloitte & Touche to audit the statements.
By Tierney's calculations, the center's offset, laser printing and distribution facilities will save the parent about $50 million this year.
"Even more important is how much capital outlay Allstate would have had to pay for these services if produced outside the company. That amount would be astronomical," Tierney reports, proudly.
The in-plant has saved Allstate money in other ways, too. One of the most visible was the merger, in August 1995, of the in-plant with Allstate's data and mail (output processing) centers.
"Prior to the mergers, we were primarily an offset printing facility and a distribution center. Now we're a distribution center using air freight and truckload shipments along with offset operations," reports Tierney. "We gained laser print technology, intelligent inserting and mail fulfillment."
In the process, the center was granted a $40 million postal budget, an on-site postal inspector and PTI equipment to reduce 32-cent first-class postage to 25.6 cents by zip sorting. Contracts with UPS, Airborne and long-haul carriers round out the services.
Most importantly, the center gained the authority to determine the most efficient method of producing each job.
"Our parent has told the [Allstate] customer 'we've invested in this center for you, so let them do their thing.' "
By all accounts, the Print Communications Center will continue to do just that. Lead on!
Sidebar: Grouzard's Leading Light
One of the reasons that the Allstate Print Communications Center was chosen as this year's Industry Leader of the Year was because its managers are active leaders in the in-plant community.
Take, for example, Jerry Grouzard, print operations manager. For two years he has been elected president of the International Publishing Management Association's Chicago chapter.
"Through my activity, I can add value to the chapter's 200 members," says Grouzard, who was also named IPMA International Member of the Year in 1997.
As president, Grouzard helps to arrange technical presentations. He and Tierney recently opened up Allstate's facility for an IPMA meeting that drew 135 people. Grouzard also asks vendors to host meetings at their facilities.
"Sometimes vendors will fly speakers in to discuss topics like CTP, cost justification, or DocuTech networking," Grouzard notes.
Consequently, he sends employees to these free or reduced rate seminars for additional training.
"We want to help our workers," he attests.
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