A New York envelope has gained a competitive edge by proving prompt service and a quality product in a time of softer markets and intense competition.
Alcor Envelope, Hamburg, NY, a subsidiary of Alling & Cory, is a medium-sized envelope converter, servicing a customer base concentrated in the Northeast. The company produces as many as 3-million envelopes in one day, including proprietary and commodity-grade envelopes in standard sizes as well as booklet, catalog and coin envelopes. Special printed envelopes make up 20% of Alcor business and are value-added, requiring nonstandard sizes or nonstick items.
“The market drives prices,” Tom Mann, vice president and general manager of operations, said. “The things we have control over are delivery, flexibility and the efficiency of our operation. By looking for ways to be more competitive, we hope to capture a greater market share.”
Until recently, Alcor Envelope relied on an outside source for sheeted stock. While this approach met the company’s needs, it limited its flexibility. “Our deliveries were dictated by the mill’s ability to sheet paper,” Mann said. “There were times when we had to wait eight weeks for sheeted stock.”
The desire to market its product more competitively was central to Alcor’s decision to consider sheeting in-house. “With a sheeter, the mill’s problems didn’t have to become our problems,” he said “Today tight market this especially important. If you can’t turn an order around in two weeks or less, your customer will go someplace else.”
Alcor selected the MSS-HS sheeter from Maxson Automatic Machinery Co., Westerly, RI. The sheeter handles four rolls of envelope stock and operates at an average of 450fpm. At Alcor, the machine sheets 21,000 lb. of white wove, brown kraft and recycled wove stock during an 8-hr shift.
The envelope converter boosted the sheeter’s efficiency by adding several options, including air shafts, a slitter rig and 61-in. pile height. Air shafts were installed on each of the shaft-type roll stands to reduce downtime during roll changes. The slitter rig slits a parent roll into two pile across. The pile-height option allows more stock to accumulate in the stacker before a pallet change is necessary.
The venture into in-house sheeting appears to be paying off. During 1991, the company realized a savings of $70,000 through the elimination of sheeting up-charges. Waste has also been reduced.
“Before the sheeter was installed, our waste on special orders could easily have been 50%,” Mann said. In addition to the saving in paper costs, the sheeter is increasing efficiency. “Our turnaround times on commodity grades are quicker. The sheeter is also helping us operate more efficiently because our other equipment isn’t idle while waiting for paper.”
In-house sheeting has helped Alcor meet its goal to market its product more competitively. “The sheeter gives us more flexibility,” Mann said. “While flexibility doesn’t have a dollar value, we can serve our customer better with it.”
Reprinted from Paper Film Foil Converter, October 1992
