Converting Information Into Success
Information management and a customer service focus have pushed Converting Technology, Inc., past more seasoned competitors.
by David Luttenberger
Industry veterans John Norgard, Bill Crutchfield, Ken Roberts and Rick Storey knew that creating and running a successful diemaking business in the information age depended on more than just having megabytes of data at their fingertips. Before they ever shipped a die out of Converting Technology, Inc. (CTI), they developed their own software program that would enable CTI to manage information regarding every aspect of the business. From computerized order entry, to real-time scheduling, to on-time delivery and profitability reports by department, Norgard and his team could actually manage every bit of data at their disposal regarding CTI's operations.
"Establishing a sound manufacturing system and creating our own database software gave us the flexibility we needed to efficiently produce product," says Norgard, who co-founded CTI in 1993. Today, five years later, CTI has grown to become the 15th largest diemaker in North America. However, becoming a "large" dieshop is not a CTI objective.
"Our goal is to be the best, not the biggest," contends Norgard. Reaching the goal of being the best, he says, started six months before the first laser-cut flatbed die, counterplate, or stripping or blanking tool went out the door of this Elk Grove Village, IL, dieshop.
Although strapped for startup capital, Norgard and his partners were convinced that to distinguish their business from other diemakers, it would be paramount to invest in the most technologically advanced diemaking equipment.
Armed with a business plan that targeted the cosmetics, pharmaceutical and specialty carton markets, the partners agreed that CTI's greatest asset would be its ability to offer creative solutions and innovative, consistent, custom die products with reliable service.
Aside from an Elcede rule processing system purchased in 1995, the team equipped CTI with one laser (two more would follow), and one LKS and one Elcede counter cutter. They also bought Artios' CAD software—all top-of-the-line equipment.
Once CTI was set up and ready to begin manufacturing and shipping custom dies for the folding carton and micro-flute corrugated industries, special attention was paid to converters' changing needs—primarily makeready time and run speeds. With CTI's information management system in place, state-of-the-art manufacturing running and a fresh group of experienced diemakers working, the new shop was primed to provide consistently high-quality dies to customers at a level of service a notch above its competitors.
Nurturing the growth
Like most startups, CTI experienced opening-day jitters, wondering if the new venture would go boom or bust.
"Our original forecasts were aggressive," admits Norgard. "We had to ramp up fast to cover our initial capital outlay." But the partners believed in the new company, its operating philosophy and its commitment to the converting industry—hence the name Converting Technology.
Thanks to a supportive client base and by using its database to evaluate every aspect of the manufacturing process, CTI has experienced annual growth averaging better than 22 percent. "In fact," says Norgard, "in 1997 we were 60 percent ahead of our original projections," which in itself could pose serious problems if the company had not been set up to handle such growth.
While Norgard contends it was CTI's ability to manage information that got the company to where it is today, it will be the same information management acumen that will allow it to sustain such a rate of growth, while still being a customer-focused company.
