Top 50 Report Target's Focus On Value

"Printing Services exists to save the corporation money," says Gary Hiltbrand, manager of Printing Services for Target Corp., in Minneapolis. "As soon as we stop doing that, we stop having a reason to exist."

If there is one thing that Hiltbrand's in-plant excels at, he says, it's finding ways to provide value for the parent company.

"To do that, we look at what niches of printing would save the most money," he says.

Part of providing value to the company, according to Hiltbrand, is knowing when outsourcing the work will save more money. For example, the millions of advertising circulars Target requires for its stores nationwide are better handled outside his facility. But Target's training manuals, benefits books, signs and certain advertising materials are all printed in-house.

Debuting at number 17 on this year's IPG Top 50, Target Printing Services reports annual sales of $15.2 million. The in-plant is made up of one central primary production facility about 15 miles from Target's headquarters in downtown Minneapolis, and several smaller service centers. By keeping the large central facility in the suburbs, Hiltbrand says the in-plant can take advantage of lower operating costs, thus providing the best value possible for the company. To maintain a high level of service and convenience, though, the satellite centers are located in Target's headquarters.

"The service centers serve a lot of purposes," explains Hiltbrand. "They provide a day-to-day presence, they're a conduit to the main [production] facility." And they also take in personal projects for Target employees, which the company likes to call "team members."

The main production facility, on the other hand, serves another purpose: "The main facility mimics a large commercial printing operation," he says.

Hiltbrand says the in-plant's competitive rates save Target a lot of money.

"We take in enough revenue to cover all of our costs," he says. "I pay all overhead, the electric bill, the cost of the building, everything." As a result, the corporation does not see the in-plant as a drain on expenses.

Hiltbrand says the big challenge in keeping his shop successful is to be the best choice in three areas.

"We need to be competitive," he says. "Not only in price, but in service and quality."

Hiltbrand says the best marketing for his shop is in the finished products it delivers.

When it comes to upgrading Printing Services and acquiring new gear, Hiltbrand says that's where his shop's philosophy comes into play again.

"New service and equipment purchases take a second place to 'How can we help Target Corp. best?' " he says. "We've decided to listen to what our customers say that they need." After all, he adds, meeting customers' demands is what has driven the growth and success of Printing Services.

- by MIKE LLEWELLYN