Fisher File Systems Inc.

Fisher File Systems Inc. (FFS) began operations in 1993 when it was federally incorporated by Richard Fisher and his wife Helen. Prior to 1993 Helen was a sales representative for a company that sold file cabinets and filing supplies. Richard was a sales representative for ABC Company (ABC), the largest supplier of custom-made rolling file systems. Rolling file systems consist of large file cabinets mounted on a wheel and rail system.  The cabinets are stored close together when not in use and are rolled apart when access to files is needed.

While working for ABC, Richard saw that rolling file systems provide more economical storage than regular file cabinets since substantially more file space can be obtained per square metre of office space. He also recognized that traditional rolling file systems have certain design weaknesses. Each system has to be custom designed to fit the available space, and considerable care has to be taken to ensure proper weight distribution and balancing for the rail system. As most office floors are not level, it is very difficult to attach the rails properly. Also, the rails have to be permanently attached to the floor, so the filing systems cannot readily be moved to a new location if a company moves.

Convinced that the design weaknesses in rolling file systems could be overcome, Richard incorporated FFS.  FFS began with very little capital and the sales rights to a line of fixed (or stationary) shelving.  FFS continues to act as the Canadian supplier for this line. Over time, Richard developed a line of rolling file systems based on his design modifications.

Two aspects of the FFS design make it both unique and superior. First, the FFS design includes a sub-floor system for the rails. The sub-floor rests on feet with screws that can be individually adjusted to account for unevenness in the floor. Not only is the system more economical to install but adjustments can easily be made if the building shifts or settles after installation. Second, the sizes of FFS file cabinets are standardized, making them portable. Individual cabinets can be bolted together to form modules to suit a customer’s needs (see Exhibit V for an illustration).

Once all the necessary design modifications had been made, the product possessed a distinct competitive advantage and sales began to increase.  Consequently, Richard and Helen have been able to draw salaries.

By 1996, FFS achieved sufficient sales volume to mass-produce the components for the rolling file systems. FFS entered into a contract with LMI Inc. (LMI), a manufacturer located in another city, to supply all components based on Richard’s drawings and specifications. LMI shipped all the necessary components directly to the customer location for assembly and installation by FFS. The manufacturing arrangement was intended to improve product quality, reduce production time, and permit Richard to focus more time on sales and marketing.