Inside or Out, Securian Does It All

One of the country's most successful insurance company in-plants, Graphics Services at Securian Financial Group (formerly Minnesota Life) has also mastered the art of insourcing.

By Debora Toth

What printing company would not envy a shop that has a solid customer base providing it with capital for new equipment? The Graphic Services division of Securian Financial Group is one such shop.

The 43-employee in-plant—which ranked fourth among insurance company in-plants on the 2004 In-Plant Graphics Top 50—can be easily envied for its strong partnership with its parent company (formerly known as Minnesota Life) and the successful growth of its insourcing business.

"There are a number of reasons why our company continues to support and capitalize our printing services division," says Tom Neckvatal, director of Graphic Services for the past 27 years. "First of all, we offer immediate service. Secondly, we offer immediacy in office. Third, we are totally aware of all compliancy print requirements in the insurance industry. And fourth, we offer total privacy to our company."

Neckvatal explains that his department is on call 16 hours a day, seven days a week to print whatever is necessary.

"How many commercial printers can you find that provide that type of service?" he asks. "We don't negotiate. We respond to their needs."

Immersed in the Business

Based in St. Paul, Minn., Securian Financial Group is a leading provider of mortgage life insurance and serves more than seven million clients in all 50 states and Puerto Rico. Unlike commercial printers, Graphic Services is completely versed in the insurance industry's specific regulations and compliance issues, thus providing the company with a level of support not found elsewhere. Additionally, Graphic Services provides security and privacy to the firm's clients—a key component in today's problematic identification theft craze.

"We face privacy requirements dictated by the Federal Government that commercial print shops do not face," Neckvatal says. "Security for us and our industry is a major concern."

But in addition to completely servicing its own company, Graphic Services has also branched out to become a respected and profitable direct mail print shop for nationwide firms and brokers.

"For the past seven to eight years, our insourcing business has been growing steadily," says Neckvatal. "We're projecting that in 2005, we'll exceed $3.5 million in insourcing revenue."

This is a big jump from the $2.7 million in insourcing revenue the in-plant reported last year and makes up a substantial portion of the shop's total sales of $8 million.

Reputation for Speed

To win these jobs and grow the business, Neckvatal says the in-plant has built a reputation for providing fast service. One of its largest customers is a national hotel/restaurant chain that sends it $1.2 million worth of direct mail and marketing materials to be printed. Other customers include construction and real estate firms and a variety of small, local businesses. A beverage manufacturer has Graphic Services produce printing, die-cutting and point-of-purchase displays. The rest of its insourced work comes from brokers.

"Why are we so successful in our insource work?" asks Neckvatal. "We provide quick service, quality work, and at a less expensive price. Plus, we've learned to partner with our broker's customers. We're relationship-oriented. We've solved many mailing requirements for these customers and we work with them to choose the correct paper weight to save on their mailing costs."

For example, says Neckvatal, Graphic Services has developed a trust factor between the brokers and the customer. A customer that they've had for seven years through a broker has developed a deeper relationship with Graphic Services in the past two to three years.

"We provide an immediate response, and we give them personalized service in proofing and design," explains Neckvatal. "We provide free test runs for them. In the end, the relationship that we build provides us with a firm base and a lot of future work to be printed."

Strong Company Support

One of the key reasons that Graphic Services has grown and remained relevant is the strong backing it receives from Securian Financial Group and the capitalization it gets for new equipment and technology.

"Our printing services division has remained abreast of new technology and continued to purchase and install what we need," says Neckvatal. "And upper management continues to believe in us and back us. We have an $8 million operating budget. As the printing industry has changed, we have adapted. For example, we've moved from traditional offset printing to also offering laser printing. We were the first print shop in the Twin Cities to adopt an eight-up computer-to-plate device."

Nearly two years ago, the in-plant decided to install a digital, variable data press to allow it to be more efficient in printing sales and marketing jobs. After thoroughly looking over all of the presses available, the in-plant decided to install a Kodak NexPress 2100. The NexPress allows Graphic Services to print jobs in hours rather than days or weeks with data that is up-to-date and targeted to the recipient.

"When we looked around at the digital presses available, there were few that could meet our needs," says Neckvatal. "The NexPress is built like a press and gives us the flexibility to use variable data printing. Our parent company allowed us to go a step further and enhance the press. Although the press only runs at one speed, we enhanced it with more computing power."

Since its installation, the NexPress has exceeded the goals set by Securian Financial Group.

"When we proposed purchasing the press, we based the purchase price on the dollar amount of sales that we could produce on the press, not the quantity," says Neckvatal. "We knew that we would have a variety of jobs being produced on the press and we know our own costs. In 2005, the NexPress exceeded our goal by 120 percent, and in 2006 we expect it will exceed our goal by 200 percent."

Moving Offset Work to Digital

Ever since the NexPress was installed, Graphic Services has been able to convert much of its offset work to digital work for the NexPress. Its job production is divided evenly between Securian Financial and insourced work. The corporate segment has been growing as the insurance company develops new short-run marketing material. To date, the NexPress is producing 800 very specialized jobs per month in short quantities. Jobs include sell sheets with a photo of the insurance agent and short-run brochures and postcards.

On the insourcing side, the NexPress is used to print variable data communication materials that are mailed to potential customers. Almost 99.9 percent are postcards, says Neckvatal. In addition to printing, the in-plant handles list maintenance, sorting and packaging of the printed materials before mailing.

Offset Still Strong

Aside from the NexPress, the in-plant is equipped with a five-color 40˝ sheetfed press with coater; a six-color 29˝ sheetfed press with coater; a two-color 29˝ sheetfed press; a two-color duplicator press; a four-color Didde web press; and a two-color envelope press. Longer runs and large-format work are sent to the offset department.

The in-plant's prepress department is up to date with digital proofing and computer-to-plate equipment, with all file transfers from customers being sent over the Internet. The shop makes it as easy as possible for the home office to send print orders, even employing a full-time sales staff.

"What do we have planned for the future?" asks Neckvatal. "Perhaps we have the potential for a second NexPress on the horizon. But at present our NexPress is producing a shift and a quarter worth of work. We'll see how much more work we add to our existing press before we look at purchasing a second."

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Photos by Robert Corey