Double-digit growth in the label industry spurs slitting partnership

There are many reasons for a company to outsource services.

By Sharon Spielman, Assistant Editor -- Converting Magazine, 9/1/1997

There are many reasons for a company to outsource services. Not having the in-house capability is one reason. However, if the company is a leading producer of pressure-sensitive materials, this strategy is often not necessary. For example, Avery Dennison, Fasson Roll North America (FRNA), has six remote stand-alone finishing centers, not to mention another half-dozen coating facilities. So, why use a contract slitter? According to Ed Gaio, director of distribution and logistics at FRNA, the main driver is the company's time-based service strategy.

It was roughly 10 years ago when FRNA and Dunsirn Industries, Neenah, Wis., then a start-up contract slitter, became partners. Dunsirn provided FRNA with the ability to get closer to a set of customers FRNA wanted to serve better and faster.

Not only was Dunsirn able to help FRNA gain a competitive advantage in the marketplace, but according to Gaio, "Their vision complemented ours." Because FRNA didn't have enough volume initially to support its own operation, the partnership proved cost-effective for both companies and offers unparalleled service to FRNA's customers.

Dunsirn slits Fasson-brand pressure-sensitive stock to exact-order specifications and ships it to their customers in less than 24 hrs, if necessary. The union produced the Dunsirn Industries/FRNA Next-Day Chicago Program, which allows FRNA's customers in Chicago to receive orders placed the day before.

Partners follow the converting trail out west

FRNA has partnered with Dunsirn on the opening of four regional facilities: Neenah, Wis., opened in 1987, Greensboro, N.C., in 1992, and Chicopee, Mass., in 1995. The latest venture brings the allies to Reno, Nev. With groundbreaking expected this month, the facility is scheduled to be operational in April 1998.

The facility will allow Avery Dennison to enhance its service to the entire West Coast and most of Arizona. The long distances involved in West Coast transport makes Dunsirn's next-day delivery an important service enhancement. The facility will implement Dunsirn's MFG PRO real-time inventory and order information system, which Dunsirn began rolling out to its other facilities in July 1997.

In addition to its exclusive contract with Avery Dennison, the facilities allow Dunsirn to serve paper, film, non-woven and laminate material producers across the country. In addition to its slit-and-ship service, it provides services to store producer's master rolls and to link with producers electronically for up-to-the-minute information.

The Greensboro, N.C., and Neenah, Wis., facilities each added two new custom-designed Cameron slitter/rewinders to handle film materials from 50-ga polyethylene to 10-ga polyester. These same facilities also enhanced their narrow-width equipment to function as low-tension slitters, which offer high-quality finished rolls with minimal scrap and waster by using precision tension controls and a regenerative unwind system.

Dunsirn's relationship with Avery Dennison began with the Roll Div. and Film Div. Today, it works with several other divisions of the company: Engineered Films Div. (in-mold labels), Specialty Tape Div., and Avery Dennison's converting divisions.

This year, Dunsirn invited the top executives from Avery Dennison's materials business to participate in its Advisory Board meeting. Brian Dunsirn, president, says, "Our close relationship with Avery Dennison continues to develop in new and exciting ways."

According to Gaio, its contract slitting agreement with Dunsirn is a model to be followed. "It really boils down to how well the relationship is working. [In our situation], there are good incentives on both sides. We trust each other."

More information from:

Dunsirn Industries, 920/725-3814.
Avery Dennison, FRNA Group, 216/357-4936.
Cameron Converting, Inc., 908/627-0400.