Metals USA is the second-largest metals processor and distributor in North America, with annualized revenues of $2 billion. It serves more than 60,000 customers in a broad range of industries, providing diverse products and services in the plates and shapes, flat-rolled, specialty metals and building products markets.

Among other duties, Paul Woodward orders print services for Houston based, Metals USA. Paul was kind enough to share many of his thoughts about the industry and his experiences buying print related services.

Paul, tell us about Metals USA’s overall direction related to communications and marketing.

At Metals USA, there is a clear difference between the two disciplines. Marketing is the responsibility of managers that are close to the customer on a day-to-day basis. These people are "in touch" with the customer. Our marketing strategies are driven by what the customer wants to know and what the customer needs. Communications responds to the marketing manager’s strategies by providing the tools that meet the specific need. Printed material is one of these tools. Others include web sites, audio-visual material and trade show program development to name a few.

How has the electronic age changed the way you buy print?

The electronic communication age is having a significant effect on what and where we print. As little as 5 years ago, it was necessary to use both electronic and printed media to communicate because the percentage of customers that were computer literate was insufficient to support a pure electronic strategy. Today, a majority of the public has Internet access both at home and at work. While this has not eliminated the need for printed material like (promotional printing), we use the printed medium to "point" the customer to our web site rather than to pack features and benefits into advertising space. I guess you could say that institutional advertising has now surpassed the requirement for product and service advertising. This is a 180 degree about turn from five years ago.

How is print buying structured within Metals USA?

We allow individual locations to print short run basic material locally. Large, complex material is printed by a vendor selected by corporate through the bid process. Again electronic capabilities have changed the vendor selection process. A file can be as easily sent to a direct to plate printer clear across the country as it can to a vendor a mile away. This means that bids are no longer "localized". While we are headquartered in Houston, our last complex brochure was printed in Oklahoma City. The price was a full 25 percent cheaper than the three bids we received from Houston based vendors.

Describe your relationship with your vendors. How many vendors do you use and how did they gain your trust?

We are currently doing business with three printers. One in Oklahoma City and two in Houston. Oklahoma City offers us quality and price for complex marketing material and is also within easy reach of our ad agency that is also Oklahoma based. One printer in Houston offers us superior expertise in printing financial material such as our 10K. The other offers us an e-commerce facility that allows 180 locations to order, proof and track ID material such as letterhead and business cards from a single source.

I continue to encourage vendors who impress me with their telephone skills to visit and make presentations. My first screening question is always with regard to their e-commerce capability. Any vendor that isn’t planning or doesn’t already offer on-line business is a non-starter. The personal relationship that I have with my vendor representative is also very important. It is mandatory that my representative be technically competent and posses sales skills. When I need advice, technology updates or something goes wrong, I call my rep - not the print-shop manager.

It is interesting to note that the last two telephone cold calls I received from print vendors have begun their pitch with "we would like to tell you about our new e-commerce capability." It’s surprising how many print vendors think that they are the first to offer this. A printer’s ability to offer an e-commerce solution is practically a "precondition" for doing business with us.

What features should be included in a web based print solution?

Critical to any e-commerce system offered by a vendor is that the owner should not insist that their customer modify their traditional business practices to "fit the box". The functionality of the e-commerce site should be tailored to the customer. With today’s software, it should be easy to do.

Have you examined web based auction/bid market offerings?

Auction or reverse auction sites eliminate direct contact with an account representative. I do not believe that business can be effectively conducted without the element of person to person interface between customer and vendor.

Explain your proofing process.

It depends on the product. Our ID material was master-proofed by me prior to the e-commerce order entry system being implemented. The vendor sticks rigidly to color and layout parameters so now all proofing is conducted on-line and is related to text accuracy only. In the case of complex full color work, the good old midnight press-check is still a part of life.

Thank you very much Paul.