West Coast story: Allan Company has steadily worked its way up to number one in the West Coast scrap paper business - Company Profile - Cover Story

Recycling Today, Dec, 2002

Because of its role as a high-volume packer and a pioneer in single-stream processing, Allan Co. has found itself on the front lines of many paper-grading issues. "Grades are definitely an issue," says Jason. "We always seem to be the first trying something, so we often get the brunt of questions [from mills] before everyone else."

One of the company's strategies has been to offer a consistent pack, rather than trying to meet what can be minor differences between mill specifications. "If we're packing white ledger, we try to be consistent," says Rogers. "It's available to all mills; we try not to make custom packs for a given mill."

"We urge them to try a couple of containers and see if they like it," adds Jason. "We go to our customers beforehand and tell them what the grade consists of, and they can come to our plants and see the process."

Keeping up with varied mill requirements is a difficult but necessary part of the job, says Jason. "One mill can call junk mail a contaminant, or another might put magazines in that category. The next mill may want those materials."

The news grades in particular can be subject to many different interpretations, with many mills fearing that glass and plastic contaminants will slide through the single-stream process. Those hurdles are being cleared, though, says Rogers. "Basically, we're packaging our news every day domestically and overseas without a problem. We think our news is as good as what anyone is making across the country from curbside materials."

The amount that the company ships everyday is impressive, especially considering that less than four decades ago the company was just collecting punch cards.

Allan Co.'s leaders credit customer service--to both paper generators and mills--as the key to the firm's success. "We try to treat both sides of the transaction equally, so we're serving customers at both ends of the transaction," says Rogers. "We don't change our service level or grading whether the market is strong or not. We're still going to provide you with timely service, prompt remittance and correct grading," he remarks.

"When you look at the tonnage we do, it's pretty astounding," says Rogers. "But I don't think the growth has surprised us. We've always valued our customers, and we've grown with our customers for the entire 30-plus years."

AT A GLANCE: ALLAN CO.

HEADQUARTERS AND PLANT: Baldwin Park, Calif.

ADDITIONAL PLANTS: Commerce, Calif. (warehouse and roll division); Fresno, Calif.; Monrovia, Calif.; San Diego (three plants); Santa Ana, Calif.; Santa Monica, Calif.

BROKERAGE OFFICES: Naperville, Ill.; Phoenix

GROWTH LIMITS

For Allan Co.'s managers, ambition has its limits, and one of those limitations is keeping operations within one day's drive time.

"We probably could operate successfully in other states, but we have kind of a standing policy," says Jason Young. "If you can't drive to the plant in one day (from Los Angeles), then we're not interested in owning it."

There are several reasons for the unspoken rule, according to Jason and VP of marketing Don Rogers. First and foremost is quality. "We have customers where quality is on the line all the time," notes Jason, adding that it becomes more difficult for corporate officers to ensure ongoing quality at operations they are not visiting on a regular basis.