Surviving And Thriving

Schwab Litho

San Francisco

Schwab Litho, the printing arm of the financial firm Charles Schwab & Co., is a survivor. When recent company cutbacks brought the most layoffs in Schwab's 30-year history, the in-plant stayed intact—and with good reason.

With the third highest sales-per-employee figure of all the in-plants on this year's Top 50, Schwab has made a spot for itself on the corporate landscape at Schwab.

"Until the culture goes paper-less, I believe we have a solid future," remarks Mark Geyer, director of the in-plant.

Operating on a chargeback system, Schwab Litho doesn't "officially" have an annual budget. However, as a department of Schwab, the in-plant "is not an expense to the company" explains Geyer. "Our operating costs average about $10 million per year, but it's all recouped back into the company budget through internal chargebacks."

Sending what Geyer describes as "an incredible volume of material through the mail," Schwab is big on direct mail marketing campaigns, as well as fulfilling "lead requests" from clients wanting specific information on Schwab's many financial products.

"As with most financial institutions, our marketing people like to send small 'statement-stuffers' to customers. We print six-color brochures, booklets, pamphlets, and custom direct mail envelopes, as well as two-color letters, letterhead, account applications and regulatory materials. That's what fills our schedule."

One of the unique things about Schwab Litho, according to Geyer, is its schedule. Running three shifts (without a graveyard), the in-plant operates Monday through Thursday, 20 hours a day, with two 10-hour shifts (day and swing). Then on the weekend, Friday through Sunday, the plant runs a 12-hour shift each day.

"Because we have a lot of customer OKs, as well as a lot of other 'rush' work, to do over the weekends, this schedule really pleases our buyers," Geyer explains. "And the company gets maximum utilization out of its print facility."

Part of what Schwab Litho has going for it is its electronic communication capabilities.

"Schwab has an excellent intranet, which we call the 'Schweb.' It's used nationally to connect some 20,000 employees," Geyer explains. "Because the intranet is already in place, it's a great way for us to communicate with our buyers."

Those buyers are exclusively from Schwab, since the in-plant doesn't insource printing. Unfortunately, Geyer adds, the in-plant must compete with Schwab's commercial print vendors.

"We often have our hands tied by not being able to acquire certain equipment to stay competitive," he notes. "A capital expenditure must go through a very rigorous corporate procedure before it is even considered. Staying competitive in a dynamic industry, such as sheetfed lithography, while operating under a conservative budget can be very challenging."

Even though Schwab Litho is the company's preferred vendor, it must still win the competitive bid based on price and ability to meet deadlines.

"Schwab buyers purchase approximately $35 million in printing annually, about $20 million of which is sheetfed," he explains. "We are able to capture about half of the possible [sheetfed] work by winning the bid." That equates to about 26 percent of Schwab's total printing, which is done in-house to the tune of nearly $10 million per year.

If Geyer has his way, and Schwab Litho expands into variable data printing in the near future, that figure will likely increase.

"I think variable data printing will become a popular form of marketing," he concludes, "and would ultimately benefit the company."

by CHERYL A. ADAMS