Since two heads are better than one, it would stand to reason that 800 plants would be far better than one. Such is the idea behind FirstPakSM, a new initiative introduced by the Association of Independent Corrugated Converters (AICC) at its spring meeting in Boca Raton, Florida, on April 22.

An idea that has evolved into an 18-month process-beginning at AICC's fall meeting in 1997-has finally come to fruition with a brand name for what is a joint selling program for AICC members. Basically, FirstPak provides a model with which independent companies can form alliances or joint-selling entities (JSEs) and target multi-location accounts. The program includes a series of legal and operating guidelines as defined by the AICC and approved by the U.S. Department of Justice last January.

AICC created the FirstPak program in response to its members' concerns about protecting market share in the face of single sourcing. The association had also been fielding an increasing number of calls from its members concerning the formation of partnerships to retain the business of growing customers.

However, retaining business is only half of the goal. The other half is to get new business and gain market share. Currently, reported figures suggest that independents serve about 20% of the market.

"That's a whole 80% that we don't have, and we want to grow," said Fred Edelman, president of National Packaging Companies, and the chairman of AICC's marketing committee. "I see the independents as having opportunities that they truly didn't have before." Previously, many independents walked away from customers who had multi-plant needs.

To these buyers, FirstPak now offers a single point of contact and a large network of corrugated suppliers to service needs. In fact, according to Tom Skinner, president of the AICC, it is the largest network of suppliers of corrugated products in North America. "With more than 800 plants in the United States and Canada, independent corrugated converters are uniquely positioned to serve our growing regional, national and global customer base. With FirstPak, we are recognizing just how big we actually are and what a force we represent in the marketplace," continued Skinner.

But according to Eli Kwartler, a veteran industry consultant, size is not the only benefit independents bring to the table. "There is the issue of creativity and responsiveness and, in most cases, a very flat organizational chart in the plants," Kwartler said. "They have the desire to do the job."

Edelman agreed. "When we put together a selling group, each member of that group has agreed that they want to do the job, as opposed to having to do the job," he explained.

However, Steve Young, AICC's executive vice president, stressed that while FirstPak opens doors for independents, it is not designed to be a threat to integrated facilities. In fact, according to Young, some JSEs may actually include integrated plants. "This is not an exclusionary program, from our perspective," he said. "It's a way to expand independents' opportunities, not to attack the integrated markets."

"This is not an 'us-against-them' phenomenon," Edelman added. "It's a real need on the part of the buying marketplace to fill the chain of distribution in a more cost-effective and service-effective manner."

But the alliances may cross more than independent/integrated borders. The AICC has received interest from corrugated plants in Europe to form international groups. Crossing industry borders, opportunities are also open to partner with plants who make other types of packaging, such as folding cartons or plastic returnables. The foundation of FirstPak is based on servicing needs and solving problems, regardless of location or material.

A key to forming and communicating within a JSE will be the Internet. AICC is creating a user-searchable listing on the Internet, which will provide information about each of its members' capabilities. In this way, customers can go to the site to find suppliers, and converters can use the site to link up with other converters to joint sell an account.

In addition to the site, the AICC will stress education to ensure that members are implementing FirstPak effectively. Increased use of the logo on members' letterhead and correspondence will also help to visualize the mission.

Yet despite these efforts, one main challenge remains and that is the perception of the buying public. According to Kwartler, this, too, will be conquered through education. "Independents are often not perceived as viable alternatives or viable suppliers," Kwartler said. "Take the misconception about short paper supply, for example. The reality is independents, in my experience, don't run out of paper. We are going to deal with these perceptions with a straightforward educational process."

By coming together, FirstPak hopes to be the "first choice" for corrugated buyers.