The Standard Register Company Q4 2008 Earnings Call Transcript

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2009-02-20 11:33:11.0

Tags: Call Transcript, Earnings, Sales Organization, Sales Strategy, Sales Force Management, Sales, Seeking Alpha, Standard Register Co.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Jamie Clement with Sidoti.

Jamie Clement Sidoti

Joe, can you talk a little bit more about the focus on the three verticals and what the sales force looked like before in terms of how it was structured and has there been a change in your structure of the sales force? Can you just give us a little more color on that?

Joe Morgan

Sure. Our sales organization prior to the change was what I would call more of a centralized, functional based, zip code based sales organization. Based on the zip code there was probably a concentration of customers. For example you might have a sales person that has a dominance of health care. What we’ve changed now, instead of having a centralized sales organization for the company, we’re distributed the sales organization by business unit, in the spirit of concentrating our sales team on selling within those markets. For example, in health care we’ve got a leader of health care. It is still geographic, primarily focused in the United States of course, but it’s now within one organization.

I am acting general manager of the commercial business, in this transition period. I actually have distributed the country in half. I’ve got two leaders that work for me that have reagents under them that are supporting the commercial business. We have actually carved out the financial business a little separately due to the nature of that and we’ve got a sales organization that’s solely focused on financial as part of the commercial business. Then industrial is a more technical sale, but they also have a sales organization that sits underneath, Tom Fury, who is the General Manager of the industrial business.

The key point there is instead of a centralized sales organization that has more of an ubiquitous approach, we distributed based on market expertise and then we sell within those markets.

Jamie Clement Sidoti

Okay, from a manufacturing standpoint, has work been shifted around the country to have certain plants focus on this kind of end market, or are you still producing all of the things that you used to produce at each particular plant?

Joe Morgan

What we did on the operations side is we created more of a share services. Not an organization, there’s nobody sitting on top of that, but we aggregated all of our manufacturing warehouse and distribution organization under one leadership structure. So, our traditional rotary organization, as well as our print on demand organizations facilities, as well as our warehouses across the country are now under one unit.

 

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