One stop shop

Have it all done in one place. Save your time. Save your money. WS Packaging Group brings one-stop packaging solutions to a location near you. Danielle Jerschefske reports

The merger between Wisconsin Label Corporation and Superior Label Systems officially created WS Packaging Group on October 31, 2000. With combined sales of USD $130 million in 2000, the company has expanded to $430 million sales annually.   

The company’s strategic plan was to become a one-stop-shop for brand owners in the same way that today’s national supermarkets have for consumers. Terry Fulwiler, CEO, says, ‘Direct mail, folding cartons, point-of-purchase needs, and eye-catching labels, as well as the machinery to apply them; we can service multiple needs within one packaging firm. We want our customers to be able to buy much more than just labels. This is what separates us from the competition.’

WS Packaging has grown organically and through acquisitions to accomplish the geographic breadth and expanded product portfolio needed to carry out this objective. ‘We strive to be located where customers can participate in press approvals,’ Fulwiler says. ‘Our goal is to give customers proximity so that they can feasibly drive to one of our plants in a day. Such convenience not only saves time but also saves on the shipping costs of their final order.’

Small steps, big rewards

Fulwiler parallels the recent development of the label industry to that of the supermarket throughout the twentieth century. ‘Labels have evolved in the same way,’ Fulwiler says. ‘Bigger companies can achieve so much more. They’re able to deflect cost increases and take advantage of huge purchasing power; they have the capacity and speed that enables them to take care of business in the way that the large corporate purchasing groups expect. There will always be the mom-and-pop shops that survive but with a half dozen or so big companies remaining on top.’ 

The effects of this evolution are seen in the purchasing practices of the big brand owners. ‘Buyers have realized that when they buy more goods from one company, they’re able to get a better price. So they have made the move from having a slew of suppliers evaluated on price to leveraging quantity in order to meet their cost objectives.’ 

Wisconsin Label was an average-sized label converter in 1986 – $4m sales – when it took its first step outside of the Great Lakes region. It opened a green field site in Columbus, Ohio, to support the increased requests of direct mail houses and then acquired Fulwiler’s Uncle Stan’s company, Voxcom, in Peachtree City, Georgia when he retired. These steps were quickly followed by a new location in Tulsa, Oklahoma. 

In terms of portfolio expansion, important acquisitions included Victory Graphics and American Creative Packaging that now produce at a combined location in Oak Creek, Wisconsin. Victory had specialized in direct mail production with point of purchase enhancements; American Creative Packaging was an expert in overwrapping. ‘These acquisitions were our first step towards becoming the one-stop-shop for our customers,’ Fulwiler explains. ‘It was critical to winning more business from one of the largest national food companies, who began putting coded tickets in its packages. We wanted the ability to capture their entire line of business – we wanted to be noted as a full-service supplier that can perform all of the company’s needs.’

Wisconsin meets Superior

Predominantly by organic growth, sales reached near $100m by the late 1990s. ‘With such rapid growth in a short period of time, the banks wanted us to leverage out, essentially forcing us to make the decision to either put more money into the company or stop growing,’ Fulwiler explains.  

At this time a merger between Wisconsin Label and Superior Label was ideal for both parties. The opportunity traces its roots to TLMI meetings where Fulwiler mingled with other North American converters, most specifically Ken Kidd of Superior Label, based in Cincinnati, Ohio.  

Fulwiler and Kidd shared an interest in joining forces since both companies had reached similar growth limitations. But before negotiations could start, Kidd’s partners sold over half of the business to a group of private equity firms. 

Yet this equity was precisely what Wisconsin needed in order to proceed with its expansion plans. The new WS Packaging Group established ambitious goals for the future. ‘We set out to double the size of the company to $250 million in sales within five years.’

Big fish in the big sea

WS Packaging surpassed this goal to become one of the largest label companies in North America and in the global industry. About 70 percent of the company’s business is in the food & beverage and health & beauty markets. Since 2000 WS Packaging Group has acquired nine companies across the US and in Mexico that added value to its ever-strengthening product portfolio.

Fulwiler explains: ‘The main key is the synergies between the companies – the ability to offer more to the whole, broadening our platform and diversifying our capabilities to give the sales teams more to offer. Our aptitude simply cannot be matched by the local mom-and-pop shop. We can give our customers personal attention with national backing or provide national service with a local feel,’ Fulwiler says. ‘We have a solution for everyone’s needs.’  

SenecaSalem  

The conglomerate’s most recent acquisition of SenecaSalem in 2007 brought shrink sleeve production into the product mix. Randy Hicks, VP operations, says: ‘We also brought the value of 20 years’ experience in in-mold label (IML) production. Our plants have the history, knowledge base, and technology to support IML.’ 

The acquisition also brought roll-on, shrink-on (ROSO) capabilities into the mix, expanding the company further into the beverage market and adding some industrial label business. Regular investments are being made to increase the production capacity for these product lines at the main plant in Pennsylvania, which has expansion potential for another 50,000 square feet. WS Packaging uses 6-8 color Heidelberg presses and Comco/Mark Andy equipment at this location.

Clever people  

WS Packaging has 18 manufacturing locations, which are currently being linked by Radius Solutions’ Pecas Vision computer software. Four of these locations include art hubs, all with computer-to-plate (CTP) digital technology. The largest plant is 200,000 square feet and has over 360 employees. 

At all plants, WS Packaging operations management reviews shift production statistics daily: waste, on-time delivery, quality, internal savings, and safety. Lean Manufacturing is a critical part of WS Packaging’s success. Karen Naze, VP operations, says: ‘We are very metric driven. If there is a problem, then it gets solved immediately. We find the source of the issue right away – training, equipment, etc – and close the loop.’ 

Combining the rewind operator and press operator into one line is a core concept that’s been implemented in several of the production facilities. Last year the beta press room experienced a 40 percent reduction in lead times with this improved configuration. WS Packaging is in the process of systematically reformatting fourteen more finishing machines to create inline configurations on specific presses.  

‘This format opens up a culture of change that our associates have been highly accepting of,’ Brian Van de Water, general manager of the Algoma plant, says. ‘Once our operators became engaged, open communication between the rewind/shipping staff and the press operator significantly increased. The teams were pleased to have another person on press available for feedback and analysis and to keep an eye on quality, catching any defects at a much earlier stage.’  

WS Packaging management believes in empowering its employees, in giving them ownership in their work. Van de Water says: ‘The workforce that we have is phenomenal. We have a high experience rate, outstanding dedication, and a dynamite work ethic.’  

The creation of a high-performance, team-based culture has seen operators rise to the challenge of solving problems – immediately – on the floor, informing upper management after valuable, decisive action has successfully taken place. ‘This is what we’re seeing more of from our people,’ Van de Water says. ‘Action like this is becoming a deeper and deeper part of the culture.’ 

WS Packaging has a profit sharing program to reward this type of work ethic. There is also an annual recognition and awards program in place. Each department is given goals at year start. At the close of the year, the team with the lowest error rate in terms of number of jobs completed earns an extra vacation day. This system creates a team focus that holds the various shifts within each department accountable.

Capital equipment

Technology varies throughout the multiple plants and across the company. The main facility has a fleet of narrow web Mark Andy flexo presses that are UV and water-base ink capable, with one press wholly dedicated to slot machine ticket production. There are two NilpeterMO flexo/offset presses with foil stamp and embossing inline, a few Comcos, and a 26-inch Mark Andy XP5000 for printing unsupported film. 

The company has HP Indigo digital technology in Algoma, Wisconsin; Portland, Oregon; and Wilton, New Hampshire, in addition to inkjet and dry toner technologies at two other locations. The group’s sales team sells digital as part of an entire solution. ‘We feel that digital has really strengthened our position in the market,’ explains Kidd.  

WS Packaging has also made a worthwhile investment in a pull-and-pick automatic die station system that systematically tracks and traces the location of dies in storage and next to the press. Naze says: ‘This is a fantastic inventory control tool. The barcode system is so efficient, basically 100 percent. We’re never having a press down while looking for a die.’ The converter boasts 97 percent average on-time delivery.

Environmental response

WS Packaging has established a formal Environmental Management System (EMS) in compliance with, or exceeding, federal, state, and local requirements. Its goals are to provide environmentally compatible products to its customers and to support those customers in achieving their own environmental objectives. The converter can complete work on certified or recycled materials and can offer its proprietary MultiVision extended text labels, which have assisted companies like Anacin in adhering to packaging reduction and strict labeling requirements on OTC goods. 

As part of its internal sustainable packaging program, production and office processes are evaluated daily by management to reduce waste and ensure recycling. Several plants send their matrix waste to be pelletized for energy re-use. The company has also reduced VOC emissions by investing in CTP technology for its plate-making and by switching to water-based inks for the majority of print orders.  

These efforts were recognized by the Tag and Label Manufacturers Institute (TLMI) when it awarded WS Packaging the 2004 Environmental Award for Process Improvement. More recently it was awarded the 2009 Business Friend of the Environment Award for Environmental Innovation in the large company category by the Wisconsin Manufacturers & Commerce organization.

Future moves

Future capital investments will likely include additional digital presses, servo-driven technology, and updates in artwork and pre-press software. ‘We believe all of these things will allow us to stay on the cutting edge of service,’ Fulwiler says. WS Packaging will look at gaining strength in more geographic territories and market segments where there’s opportunity. Fulwiler says: ‘The customer dictates their needs and, consequently, where our company will move and how it will evolve.’ For the time being, WS Packaging is focused on expanding sales, acquiring new customers looking for a full-service solution, and enhancing customer service. 

‘There is a lot of longevity within the corporation,’ he says. ‘We have the advantages to do many different things due to size and breadth, good ideas, and talented people.’  

With the capability of marketing its strengths as local or national, WS Packaging is eager to share innovative solutions with more brand owners by providing full service, plant proximity, and environmentally conscious products. WS Packaging – one place. 

WS Packaging – a brief history

WS Packaging Group began in 1966 as Wisconsin Label Corporation in Algoma, Wisconsin, a small town east of Green Bay on Lake Michigan. In a small 20 x 20 sq ft area, the converter produced labels on a central impression Mark Andy 3-color press. By 1972 the company was on a $5,000 per week sales budget for total annual sales of $260,000.

By the mid 1980s the company grew to have about 25 employees with $4 million in annual sales. Most of the company’s business at this point was conducted in the local regions of northern and eastern Wisconsin and Chicago, Illinois. Terry Fulwiler, CEO, says: ‘At this point my father and his partner were ready to retire, and I was ready to drive continued growth. But in order to do this, geographic expansion was necessary.’

Ken Kidd is an expert on the production side of the converting business. He founded Superior Label in 1970 with three partners. Kidd has served for many years on the TLMI Environmental Committee and is the current chairman of its Recycling Solutions sub-committee. 

WS Packaging acquisitions 2000 - 2007

February 2001 – Label Art, specializing in short-run label production

February 2002 – Blake Printery, California, high-end prestige label manufacturing

July 2002 – IdentiGraphics, Oregon, digital printer for short to medium runs

June 2003 – Gorilla Label, Arizona, flexo printer with a solid regional client base

October 2003 – Concept Packaging, Nevada, manufacturer of high-speed label applicators

August 2004 – Promo Edge Company, Wisconsin, manufacturer of promotional, gaming and sweepstakes products

September 2005 – Ampersand Label, California, manufacturer of patented extended text products

December 2005 – Renaissance Mark Narrow Web Division, California and Mexico, flexographic facilities (first international venture)

October 2007 – SenecaSalem, Pennsylvania and Ohio, flexo and litho printer specializing in shrink sleeve labels

Pictured l-r: Brian Van de Water, Terry Fulwiler and Karen Naze of WS Packaging

This article was published in L&L issue 5, 2009

Click here for more stories about WS Packaging on L&L.com.