Business Review Europe & Middle East – April 2015

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A p r il 2015

A Healthy And Happy Executive Team Is Critical To Success Alternative Funding For Early Stage Companies

The Internet In Its Hand Schneider Electric: Turning Today’s Risk Into Tomorrow’s Opportunity

Mobile Growth That’s On Course To Connect The World

EDITOR’S COMMENT

Politics and projects in the EC I W A S A T F I R S T incredulous when I saw that the

excellent 2015 Strategic Top 100 Global Infrastructure Report found room for only two European projects. Why is Europe so poorly represented?

The report said: “It is essential to bring the energy of politics productively into the strategic infrastructure equation. Politics and the demands of politicians, the incentive structure of politics, the filtered aspirations of citizens, is both the driving force of infrastructure, and the biggest problem. How do we make the influence of politicians on infrastructure decisions more constructive, strategic, and productive?” EU governments need to ask themselves this question; the MENA region is in better health with around 19 projects in the top 100.

Meanwhile this issue concerns itself with much smaller projects. In 2014, €201 million of early-stage, growth and working capital funding was provided to European SMEs and start-ups, not by the banks but by alternative finance platforms. We examine these lifesavers for entrepreneurs in some detail.

Scott Peltin’s article on workforce issues stresses the importance of keeping executives fit and happy, while peak performance is exemplified by ten of the outstanding CEOs of the Middle East. Finally, we feature a choice selection of businesses from infrastructure stalwarts Travis Perkins and Schneider Electric to the delicious Heidi Chocolate.

John O’Hanlon Editor john.o’hanlon@wdmgroup.com 3

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CONTENTS

Features 14 LEADERSHIP

A fit, healthy and happy executive team is critical to success

8

FINANCE

Alternative funding for start-ups and early stage companies

20 TOP 10

Outstanding CEOs in the Middle East 5

CONTENTS

54 Schneider Electric

116

40

Firstan

Bakcell

Company Profiles TECHNOLOGY 30 Mobile Growth 40 Bakcell

ENERGY

76

Travis Perkins

54 Schneider Electric

SUPPLYCHAIN 70 Event: Multimodal 2015 76 Travis Perkins 90 Majaal Warehouse Co

MINING 100 Dundee Precious Metal

MANUFACTURING 116 Firstan

126

FOOD 126 Heidi Chocolate

Heidi Chocolate

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FINANCE

Alternative funding for start-ups and early stage companies Despite government protestations of support for new and growing businesses, and assurances from the banks that a new can-do age is approaching, obtaining fast, agile and accessible finance seems as remote as ever Writ ten by: JOHN O’H A NLON

NO WONDER ENTREPRENEURS are looking at alternative ways of getting their projects off the ground. If you have ideas and a business plan, but no money at all, the chances are that you are too small to interest a traditional bank or VC company. So how can you become acquainted with the sometimes confusing world of alternative finance? “We 8

April 2015

are aware of more than 10,000 early stage companies in Europe that have benefited from equity, lending, reward and donation based crowdfunding, peer-to-peer (P2P) business lending and the like,” Bryan Zhang of the newly founded Centre for Alternative Finance at Cambridge’s Judge Business School said. “These platforms are providing

a viable option for suitable companies including many start-ups and incipient not-for-profit businesses.�

Bryan Zhang is a co-author of Moving Mainstream: The European Alternative Finance Benchmarking Report recently issued by the Centre and professional services firm EY*. The report includes input from 14 key national and regional

industry associations as well as 255 leading platforms in Europe, capturing an estimated 85 to 90 percent of Europe’s online platform based alternative finance market.

While previous studies have charted alternative finance in the UK, this report is the first to cover other European countries in detail.

The European online alternative 9

FINANCE finance market grew by 144 percent last year to nearly €3 billion and could exceed €7 billion in 2015, the authors estimated. “Seen until recently as a niche activity, online alternative finance, including equity-based crowdfunding and peer-to-peer business lending, has become a vital and increasingly commonplace source of essential funding for SMEs, start-ups and many other businesses throughout Europe,” the researchers said.

Online alternative finance, comprising platform based financial transactions outside traditional banking, grew across Europe from €1.21 billion in 2013 to €2.96 billion in 2014. The overall European alternative industry is on track to grow beyond €7 billion if the market fundamentals remain sound and growth continues apace.

Last year €201 million of early stage growth and working capital funding was provided to European SMEs and start-ups by alternative finance platforms. The volume of online alternative business funding has been growing steadily at around 75 percent year on year, and the estimated number of start-ups and SMEs funded in this way has been growing at an even faster average rate; 133 percent over the last three years to around 5,801 SMEs or start-ups in 2014.

Robert Wardrop, Executive Director of the Centre for Alternative Finance at Cambridge Judge, and co-author of the new report, said: “These new forms of alternative finance are growing quickly, and this growth is beginning to attract institutional investors. Alternative finance in some European countries is on the

‘These platforms are providing a viable option for suitable companies including many start-ups and incipient not-for-profit businesses’ 10

April 2015

cusp of becoming mainstream.”

Andy Baldwin, EY’s Managing Partner of Europe, Middle East, India and Africa Financial Services, said: “To date there has been little hard data about the extent of the industry across Europe. This report shows that, while it is still considerably smaller than the industry in the UK, alternative finance on the continent cannot be ignored.

“The UK market’s success has in part been driven by investors’ search for yield after the Bank of England’s QE program, so it will be interesting to see if the EU’s recent QE program sparks increased activity in Europe.

For me some of the most interesting metrics are the rate of adoption in certain markets and models. For example peer-to-peer business lending grew at more than 270 percent in mainland Europe this year, and Estonia and Sweden have some of the highest volumes per capita. The whole financial services industry should be watching this space with growing interest and this study will provide a valuable benchmark against which to measure future developments.”

The UK is by far the largest European country for alternative finance, at €2.34 billion (£1.78 billion) in 2014, followed 11

FINANCE

by France at €154 million, Germany at €140 million, Sweden at €107 million, the Netherlands at € 78 million, and Spain at €62 million. Alternative finance in Europe excluding the UK grew from €338 million in 2013 to €620 million in 2014 and has averaged growth of 115 percent over the past three years. Peerto-peer consumer lending is the largest market segment at €275 million in 2014, followed by reward-based crowdfunding at €120 million, peer-to-peer business lending at €93 million and equitybased crowdfunding at €83 million.

Across Europe, excluding the

‘Alternative finance, at least in some European countries, is on the cusp of becoming mainstream’

A LT E R N A T I V E F I N A N C E M O D E L S I N E U R O P E ( E X C L U D I N G T H E U K ) V O L U M E I N € M A N D AV E R A G E G R O W T H R AT E 2 0 12-2 0 14

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April 2015

A L T E R N A T I V E F U N D I N G F O R S T A R T- U P S

ThinCats Team

UK, peer-to-peer business lending grew 272 percent from 2012 to 2014, followed by reward-based crowdfunding up 127 percent, equity based crowdfunding up 116 per cent and peer-to-peer consumer lending up 113 percent.

So how do you access alternative funding? The report took information from 170 platforms, however Kevin Caley, Managing Director and Co-founder of one P2P facilitator, ThinCats welcomes the renewed

focus on the UK’s performance in this sector: “What’s clear from these fascinating figures is that peer-topeer business lending is now seen as one of the most important financial innovations for several generations.

It’s a democratic response to the crisis in traditional financial institutions that has starved SMEs of the funds they desperately need and taxed savers to pay for bailing out the banks by reducing returns on their investments to virtually nothing.”

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LEADERSHIP

A fit, healthy and happy executive team is critical to success in modern business Preparing executives for peak performance is becoming a serious game changer, says ex-fire chief Scott Peltin Writ ten by: Scot t Peltin

There’s no room for brain fog in executing a multi-million dollar deal.

Diligence, focus, attention to detail, energy, resilience, mental agility and endless stamina are prerequisites.

So why are so many businesses leaving to chance the endurance of their most senior executives? With budgetary fat being trimmed ruthlessly from every corner why are so many 14

April 2015

businesses still underperforming?

A key contributor must surely be the ‘preparedness’ of top executives to cope with the relentless demands.

Some decision makers are even suggesting that investment analysts should be assessing and measuring how boards are planning for this, given the ever harsh spotlight on how the top team will deliver.

Don’t leave your executives alienated at the top; it can be a lonely place Resilience and preparedness are qualities of growing significance. The field of sustainable high performance of pressurised executives is gaining credibility as an investment, partly due to the impact of 24/7 demands in a volatile climate on mental agility and stamina, but more so because leaders are hungry to employ any competitive advantage that sets them apart.

Take the parallel of high performance training in sports; just 30 years ago it was in its infancy.

Today it is a highly specialised and scientific field where winners and losers are separated by milliseconds.

Just as in sports, top performers in business need more than the standard coaching and wellbeing programmes; they need specific 15

LEADERSHIP training and support to increase energy, mental agility, resilience and stamina if they are going to win.

According to Tignum data, 67 percent of top executives have metabolic dysfunctions or other health related risk factors that decrease performance and productivity, and an alarming 84 percent report that they don’t have sufficient energy to meet all their daily demands.

At the simple ‘functioning level’, being healthy is the obvious priority.

Paul Hemp said in the Harvard Business Review that “unlike absenteeism, presenteeism isn’t always apparent. You know when someone doesn’t show up for work, but you often can’t tell when or how much illness or a medical condition hinders someone’s performance.”

The point is that if you aren’t healthy, you aren’t performing at your best. This is one of many reasons companies are investing so much in executive physicals, company wellness and vitality programmes and health incentives.

But is being healthy enough?

No, it isn’t. Let’s look beyond ‘functioning’ at optimising human performance. At this level, a 16

April 2015

successful executive is consistently energised and bringing energy to others. They have strategies to bounce back from setbacks, to prepare for their daily events and to recover from the stresses they face. Ideally, this means having the same energy at 3pm as at 9am.

But research shows that executives who try to optimise performance by just focusing on exercise or nutrition often fall short. They may lose weight and even ‘feel better’ but they aren’t necessarily higher performers, or more sustainable. When you integrate strategies relating to mindset, nutrition, movement and recovery, you get a far more significant effect.

The Wall Street Journal recently reported that one-third of American workers aren’t sleeping enough to function at peak levels, and that chronic exhaustion is costing billions of dollars in lost productivity. Yet high-quality sleep is the foundation of recovery.

And so to peak performance.

Every day and week there are certain events that are critical. In sports or in the fire service, these events are obvious. But in business they too often are hidden in all the other noise

“In every single key meeting, presentation, or negotiation, there is a critical moment where you either win or you lose. This outcome is often due to as little as a 2 percent to 5 percent difference in human performance.

This difference comes from having more energy, having more mental clarity, and better preparation” – Bernd Wahler, SVP of Innovation at Adidas

and activity facing an executive on any given day. Here, preparation strategies should focus on mindset.

What are your intentions, what would success look like, and what emotions will best serve you in this event?

This requires an entirely different level of preparation but it pays off.

As Bernd Wahler, SVP of Innovation at Adidas, puts it: “In every single key meeting, presentation, or negotiation, there is a critical moment where you 17

LEADERSHIP either win or you lose. This outcome is often due to as little as a 2 percent to 5 percent difference in human performance. This difference comes from having more energy, having more mental clarity, and better preparation.”

Yet according to Tignum data, and despite admitting a significant lack of energy and stamina, 90 percent of top executives don’t have any measurable strategy or tools at all to prepare for their own must-win peak performances.

The ‘preparedness’ of senior executives needs the board’s attention

‘90 percent of top

executives don’t have any measurable strategy or tools at all to prepare for their own must-win peak performances.’

– According to Tignum data

Personal wellness is critical to business development and success

18 April 2015

A H E A LT H Y E X E C U T I V E T E A M I S C R I T I C A L T O S U C C E S S

Are your executive team healthy enough to make the right decisions for your business? now more than ever (John ReidDodick, AOL’s chief people officer, calls it a game-changer). Why do we pay such high salaries and blindly expect investors to support top executives who have no sustainable high performance diagnostics or improvement plans? No airline pilot or fire chief would risk leaving their daily performance to chance. As the Financial Times suggested in 2012, when chief executives are appointed, boards should provide them with a support network before the new boss has an urgent reason to ask for it.

Executive burnout and even executive suicide are on the rise, but the extent remains hidden, and often the causes (or taking steps to overcome them) remain taboo. Yet the fact is that leaders need resilience to bounce back from setbacks, they need mental agility to solve tough problems and they need stamina to see meaningful projects through.

They also have a responsibility to energise their teams. To me, focusing on this level of personal preparation is the next competitive edge in business.

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TOP 10

Outstanding CEOs in the Middle East The Middle East is home to many amazing companies, but they wouldn’t have achieved such excellence were they not let by remarkable men and women, therefore we present a selection of winners from the CEO Middle East Awards 2014 organised by Arabian Business at the Emirates Towers in Dubai Written by: John O’Hanlon

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TOP 10

9

Aziz Abdullah Al Yaqout DLA Piper

One of the most respected lawyers in the region, the Regional Managing Partner of this renowned global law firm is also an active supporter of youth development, helping to give young Arabs education and training in work readiness, financial literacy and entrepreneurship.

10

Majida Ali Rashid Dubai Land Department

Majida is a lady who has really taken the business world by storm in her role as Assistant Director General of the Dubai Land Department and Chair of the Real Estate Investment Centre. She has been instrumental in the drafting of much needed new real estate legislation in Dubai.

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April 2015

O U T S TA N D I N G C E O S I N T H E M I D D L E E A S T

8

Mohammed Abdulsalam MENA Holding

As the head of this Kuwaiti-based of company Abdulsalam has played a key role in the development of the company’s portfolio which covers leisure and tourism, real estate and construction amongst others.

He was also named Young CEO of the Year.

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TOP 10

7

Omar Farid PepsiCo

A man who has dedicated more than 30 years of his life to the same company. Taking the top job at PepsiCo last year, Omar now oversees a company with annual revues of an estimated $3 billion, and more than 15,000 direct empwloyees on its books.

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O U T S TA N D I N G C E O S I N T H E M I D D L E E A S T

6

Ahmed Mekky Gulf Bridge

Mekky is a co-founder of a company that is the region’s first privately owned submarine cable provider, doing a remarkable job of linking Gulf countries together and with the rest of the world. The company has led the way in both innovation and technology.

5

Sarah Appleton Mini Exchange

Leaving behind a successful career with Deloitte, Sarah has aspirations for her company to be seen as an eBay-Outlet Mall hybrid, known as the go-to marketplace for buying and selling kids’ clothing. Less than a year into its existence, it is becoming just that.

25

TOP 10

4

Mahesh Shahdadpuri TASC

Shahdadpuri has made a habit of getting results quickly. In six short years he has taken the company he founded from launch to one of the most lauded SMEs in the region, ranking in the Dubai SME 100 listings and becoming one of the largest providers of contract resources in the region.

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April 2015

O U T S TA N D I N G C E O S I N T H E M I D D L E E A S T

3

Ziad Makhzoumi Fakih IVF

The Healthcare CEO of the Year is well known from his glorious days as CFO of Arabtec. Since leaving that company he has taken over as CEO of the fertility clinic Fakih IVF, which was opened just three years ago. He is pioneering a range of new fertility treatments for both men and women. There is already talk of this company performing well on the stock market in the next few years.

2

Bob Hope SSH International

This is the man running a huge Kuwaiti design consultancy which is taking the MENA region by storm. Bob is spearheading a five year plan that will see the company triple in size. Its huge raft of current projects include the Kuwait Finance House Residential Tower and the Sheikh Jaber Al-Ahmad Al-Sabah Causeway.

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TOP 10

1

Anan Khalil F Fakhreddin Damas

Anan Khalil Fakhreddin joined Damas, the Middle East’s leading international jewellery and watch retailer, in March 2010 and has grown the company, founded in 1907 until today there are about 300 stores in the Middle East. He is a jewellery and retail industry veteran with more than 23 years’ experience in Middle East. He had been with De Beers for 9 years as Director, Gulf and has also served as Managing Director for Middle East and Turkey with the World Gold Council.

Fakhreddin started his career with American Express and held the position of Regional Manager in Saudi Arabia.

He has been the Chairman of Dubai Gold and Jewellery group from 2010 for two years. In addition to a wealth of experience he is a certified gemmologist.

Anan Fakhreddin graduated from Yarmouk University in Jordan and has attended the Harvard Finance for Senior Executive Programme. Fakhreddin was awarded Retail CEO of the Year.

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O U T S TA N D I N G C E O S I N T H E M I D D L E E A S T

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MOBILE AND INTER COURSE TO CONN

With today’s two billion smartphone connection by 2020, the work of associations in educating co and internet services will be vital in ensur

RNET SERVICES ON NECT THE WORLD

ns around the world set for a threefold increase ommunities and uniting the interests in telecoms ring the globe becomes truly connected

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CONNECTING THE WORLD

T

7.2b

mobile connections today, two billion of which come from smartphones

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Month 2014

he world is more connected than ever.

The internet and mobile ages have brought with it an unprecedented level of communication and contact between previously far-flung corners of the earth.

Today there are more than 7.2 billion mobile connections in an industry which turned over $1.13 trillion in 2013.

More than two billion of these connections come from smartphones, with this set to rise to six billion by 2020 according to global association the GSMA, representative of nearly 800 of the globe’s mobile operators.

Though the likes of Apple and Samsung dominate the media headlines in the mobile

TECHNOLOGY

and smartphone sphere, the low-end market is exploding with sub-$50 phones able to connect seamlessly to the internet now a reality, and driven by operators producing their own devices.

Another global association, the CTIA (Wireless Association), states that tablets account for 40 percent of all mobile broadband connections. In America, 66 percent of such connections will be made via tablets this year.

Despite the surge in connectivity since the turn of the millennium, only one third of the world’s people have access to the internet.

In a drive to connect the most isolated parts of the world to the undoubted benefits of the World Wide Web, huge companies are pouring investment into initiatives across all continents.

For instance, Facebook, Nokia, Qualcomm and Samsung are spearheading an initiative involving the development in its bid to link up the remaining two thirds of the global population.

The work of programmes like this and the collaboration of global telecoms and internet providers will be crucial in taking the next steps towards a truly connected planet.

Uniting interests Representing the interests and helping to converge the movements of key industry players are associations, both on national and global scales.

Spanning more than 220 countries and serving nearly 800 companies is the GSMA, chaired by Telenor Group’s President and CEO Jon Fredrik

‘Facebook, Nokia, Qualcomm and Samsung are spearheading an initiative involving the development in its bid to link up the remaining two thirds of the global population.’

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CONNECTING THE WORLD

“As the industry evolves, smartphones are becoming lifestyle hubs that are creating opportunities for mobile industry players in vertical markets such as financial services, healthcare, home automation and transport.”

- Hyunmi Yang, GSMA’s Chief Strategy Officer

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April 2014

Baksaas since 2002. The association carries out activities and provides expertise in an enormous variety of areas, from public policy and apps guidelines to disaster response and security.

One of its key missions is to deliver “ubiquitous mobile broadband access” across the world, and its Spectrum team is dedicated to organising key industry events to help channel the activities of operators towards this end.

The Mobile World Congress epitomises this, with “connecting the underserved” a major topic for the 2015 event to be held in Barcelona at the beginning of March, boasting some of the most important figures in the telecoms and internet space as keynote speakers.

Overall, more than 1,900 companies are expected to exhibit, including recently confirmed brands such as China Mobile, Ericsson, Fujitsu, Gemalto, General Motors, MasterCard, Mozilla, Nokia, NTT DOCOMO and Visa.

Key to empowering the unconnected will be smartphones according to the GSMA’s Chief Strategy Officer Hyunmi Yang. “As our study shows, smartphones will be the driving force of mobile industry growth over the next six years, with one billion new smartphone connections expected over the next 18 months alone,” he said.

“In the hands of consumers, these devices are improving living standards and changing lives, especially in developing markets, while contributing to growing economies by stimulating entrepreneurship.

C O M PA N Y N A M E

The Mobile World Congress 2015

“As the industry evolves, smartphones are becoming lifestyle hubs that are creating opportunities for mobile industry players in vertical markets such as financial services, healthcare, home automation and transport.”

Another major global association is the TIA (Global Telecoms Association), representing the interests of manufacturers and suppliers of high-tech communications networks and helping their products

SECTOR

Some of the keynote Speakers at GSMA’s Mobile World Congress 2015: • Jimmy Wales, Founder of Wikipedia • Mitchell Baker, Executive Chairwoman, Mozilla Foundation • Carlos Ghosn, Chairman and CEO, Renault-Nissan Alliance • Charles Scharf, CEO, Visa • Gary Kovacs, CEO, AVG Technologies

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C O M PA N Y N A M E

1,900 companies exhibited at the 2015 mobile congress

one billion

new smartphone connections are expected over the next 18 months 36

April 2014

empower communities in the healthcare, education, security, public safety, transportation, government, the military, the environment, and entertainment spaces among others.

Recently the group named Scott Belcher as CEO to bolster its leadership. Tom Stanton, Chairman of the TIA board of directors, commented: “As the ICT industry experiences the most dramatic change we’ve seen in decades, TIA is also adapting and growing to meet our

SECTOR

members’ needs.

“We are excited to expand TIA’s industry leadership by adding another highly experienced senior executive to our management team. Scott is a tremendously successful and visionary leader who will expand our capabilities and bring valuable new perspectives to our industry.”

Tom Stanton,

Local scale Global telecoms and internet providers are also

Chairman of the TIA board of directors 37

C O M PA N Y N A M E

On the road off the phone psa by CTIA

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April 2014

indebted to the work carried out at a national level by associations working closely with governments and other organisations, helping maximise the effectiveness of connectivity on more localised scales.

The UKCTA (UK Competitive Telecoms Association) is comprised of a series of committees and work streams made up of its member organisations, enabling all members to fully and equally engage in the development of policy issues in areas of economics, industry

TECHNOLOGY

regulation and government relations.

Educating the future If the globe is to become truly connected and able to responsibly exploit the benefits of mobile and internet connectivity, education of future generations is paramount, and something which the CTIA supports through a number of programmes.

GrowingWireless.com is scheme designed to provide parents with tools and information to educate themselves so they may teach their children how to use wireless technology responsibly, made extremely prevalent by the fact that on average youngsters are 12 years old when they receive their first smartphone. More than half (56 percent) of eight to 12 year olds own such devices.

Related to this is the On the Road, Off the Phone campaign, also backed by the CTIA and aimed at educating young drivers on the dangers of using mobiles on the road.

At the other end of the age spectrum, AccessWirelss.org is another CTIAbacked site which helps elderly and disabled people to discover and utilise the benefits of mobile and connectivity.

As the rise of mobile and internet continues to gather pace, industry leaders and associations continue their quest to get the world connected and up to speed to what may well already be to some a sector unfathomable just a few short years ago.

56%

of eight to 12 year olds own a smartphone or tablet ‘If the globe is to become truly connected and able to responsibly exploit the benefits of mobile and internet connectivity, education of future generations is paramount’

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Bakcell

The internet in their hand Bakcell is the leading and most innovative mobile telecoms operator in Azerbaijan, punching above its weight strategically, technologically, and in its real concern to develop the talent in Azeri youth Written by: John O’Hanlon Produced by: Kiron Chavda

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BAKCELL

W

Richard Shearer, CEO of Bakcell

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April 2015

hen it was established in 1994, three years after Azerbaijan’s independence from the Soviet Union, Bakcell quickly became known as a brand leader in the country’s telecoms space. Since then it has not ceased to evolve that brand positioning, always working towards greater customer orientation. “Today we are very much the leader in mobile internet services in this country,” said Richard Shearer.

Shearer has been CEO at Bakcell for four years, long enough to make his mark and set the strategy for the next phase of the company’s growth. And while effective connectivity and coverage remain at the core (Bakcell’s network reaches 99 percent of the population) the future belongs to the company that delivers the best user-friendly data services. “While we were last to launch 3G, we are now the number one provider of mobile internet services in the country.

More than 60 percent of our customer use data services, which is a very high proportion compared to any international benchmark.”

Bakcell is in a competitive market, with two other players snapping for business. In terms of subscribers Bakcell is still around 12 percent behind Azercell though it has been relentlessly gaining market share during Richard Shearer’s watch. “Our focus is on providing access to the mobile internet though your handset – the internet in your hand. So we have focused heavily on developing smartphone usage and ownership in the country.”

TECHNOLOGY

President Ilham Aliyev visits Bakcell’s stand at BakuTel

Bakcell is the only company that offers its own brand smartphones, and it has more smartphones on its network than either competitor. Reflecting global patterns, 85 percent of these operate on Android and 15 percent iOS, though again, more iPhone users choose Bakcell. He has a neat mantra: Smart people, Smart phones, Smart network.

During his four years he has led serious investment in networks, new technology, and has revamped all Bakcell’s customer services to improve them and bring them up to or beyond global standards. The company has more than 3,000 customers on its pre-commercial 4G network, all of them providing very valuable feedback to hone the service before its imminent launch.

‘Bakcell is the only company that offers its own brand smartphones, and it has more smartphones on its network than either competitor.’

w w w. b a k c e l l . c o m

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BAKCELL

Mobile Distribution at your fingertips

Established in 1998 as a Motorola official distributor.

Since company enlarged to the largest wholesaler & distribution company of electronic devices in Caucasus region.

+ 994 12 465 7513 info@caspianmobile.az www.caspianmobile.az

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April 2015

Ahmed Rajabli 33 str • AZ1052 • Baku • Azerbaijan

BAKCELL

TECHNOLOGY

Fast adoption of new technology is a characteristic of this youthful country, where 55 percent of the country is under 35. “Our customer base is a more concentrated version of that demographic so we do overindex on younger customers,” he admits.

Nevertheless Bakcell is keenly aware of the diversity of its customer base. As its name implies it started life as a telecoms operator in the capital Baku serving its two million or so inhabitants.

Since then he stresses that the company has done much to balance its customer base across the regions. “We have been very successful in bringing in the provinces.” Products and price plans have been developed that recognise the difference in income levels between the capital and elsewhere, though with its oil and minerals

Bakcell shows its handsets

w w w. b a k c e l l . c o m

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BAKCELL

transparent capitalized

technologically advanced

reliable

rapid

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April 2015

BAKCELL

TECHNOLOGY

income Azerbaijan is by no means a poor country.

Sport is a key component of Bakcell’s brand communications strategy, Shearer explains with enthusiasm. “The Bakcell Stars programme, which helps disadvantaged children, has evolved as we have built the partnership with Manchester United and the local football federation AFFA.” It was in 2012 that Bakcell became ManU’s first official telecommunications and broadcast partner for Azerbaijan, or indeed for any of the CIS nations. The deal gave Bakcell the rights to broadcast the club’s official TV channel MUTV in Azerbaijan, giving fans access to the latest player interviews and behind-the-scenes footage and much other valuable content to drive data usage and customer engagement in its core mobile phone customer base.

Opening of ManU Soccer School in Azerbaijan

w w w. b a k c e l l . c o m

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BAKCELL

Global L Conne eader in M obile ctivity Solutio ns With p res manag ence in mo re es end -to-en than 75 co untrie d solu s, T tio Mobile Money ns for Mobil IMWE desig e , Gove ns, de li rnmen Marketing & Ente vers and t, M2M rtainm /IoT a nd Tec e h Serv nt, ices.

our ser v ices • Mark eting

www.t imwe. com t.az@t imwe. com +994 conta c

12 541 & Ente • Tech 4711 r t ainme Servic n e t • M2 • Mob ile Mo s M/I ney • Gove oT rnmen t 48

April 2015

BAKCELL

TECHNOLOGY

But the link up with what is undoubtedly the strongest football brand in the world brought much more than just a chance to display a well-known logo. It is, he says, a much broader engagement than that. “We are the number one global mobile telecoms partner for Manchester United in terms of activation. We work with them mostly on new initiatives that often they will then roll out to other parts of the world having tested it here.” The football club, he has found, really takes pains to understand the business and its challenges and to tailor the engagement to these.

Now Bakcell, working with Man’ United and AFFA, has opened the Manchester United Soccer School in Baku, apart from one in Hong Kong the only such facility outside of Manchester. At the preliminary stage, 16 under 16s and as many seniors will be selected for training by Man’ United professionals, giving the phone company unassailable street cred.

“We are the number one global mobile telecoms partner for ManU in terms of activation. We work with them mostly on new initiatives that often they will then roll out to other parts of the world having tested it here.”

– Richard Shearer, CEO

Training session for kids with Dwight Yorke

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BAKCELL

Bakcell is proud of its sport related CSR record

Not that this is any flash in the plan. Richard Shearer is proud of his company’s sport related CSR record. The Bakcell Stadium is the largest domestic football arena in Azerbaijan, but beyond this highly visible sponsorship the company has a lot of grass roots engagement, setting up football facilities in the regions. “We provide the pitches for children in local communities staffed with full time AFFA-accredited and qualified coaches as well as the equipment, and that allows those kids to interact and learn integrity, teamwork, self-respect and all the benefits you gain from sport.� If Azerbaijan ever gets beyond the first round of the Europa

Save your time!

Hesab.az are the biggest online portal system operating in Azerbaijan.

It allows you to pay for or buy mobile, bank, utility, internet, cable TV, landline, insurance and entertainment services online through web or mobile applications.

www.hesab.az E-mail: info@hesab.az

TECHNOLOGY

League (the furthest they have got so far) it will be a Bakcell as much as a national triumph.

For those to whom football is a mystery these benefits are still available. Shearer is every bit as keen on Bakcell’s engagement with other activities such as its association with United Aid for Azerbaijan (UAFA) founded in 1998 by Gwen Burchell MBE. UAFA and Bakcell started implementing the “Art Communication for Children with Disabilities” project in February 2010. The project aims to engage children with physical and intellectual disabilities through art to develop their physical, cognitive and social skills.

Bakcell Stars is a programme started in 2009 to help children with special needs of every kind.

There is however another leg to the company’s CSR story, linked to IT and telecoms education.

The two overlap, but like every developing country Azerbaijan needs to grow its knowledge base and develop the talent that will create the networks – and the apps – of the future.

Bakcell provides children with AFFAqualified coaches

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BAKCELL

We are building a network that caters for video, so very good connectivity, and throughput speed is important to us.”

– Richard Shearer

Launch of AppLab project in cooperation with Qualcomm

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So Bakcell has partnered with local universities, and also with JAA Azerbaijan, a branch of Junior Achievement Worldwide, the world’s largest notfor-profit organisation in business education.

The programmes it promotes encourage entrepreneurship, financial literacy and IT upskilling among young people. Bakcell has also partnered with Qualcomm to open App Lab in Baku as an incubator for local entrepreneurs who are focused on developing internet and mobile apps. This first of its kind initiative in Azerbaijan has received a lot of positive publicity and is seen by many as Bakcell tangibly supporting the development of the ICT sector with Azerbaijan.

Harking back to his introductory remarks, Richard Shearer emphasises the need to build a network designed for the way people want

TECHNOLOGY

to use it. That means much more than simple internet access for information. “We see the internet more as a source of entertainment, so content is important to us. Video is rising in every network, but on ours it is rising exponentially! We are building a network that caters for that, so very good connectivity and fast throughput speed is important to us.”

That Bakcell is rising exponentially too is evidenced by the fact that the number of smartphones on the network has more than doubled in the last year. Many businesses have been enabled though smartphone use too, he points out. “They can interact and react with customers in a way that is not possible with a PC. The government has a number of initiatives in terms of secure payments, digital signatures and the like, all of which encourage evolution e-business.

This is a great opportunity for Azerbaijan!”

In a recent smart move, Bakcell teamed up with its smaller competitor Azerfon to form a joint venture to exploit economies of scale and scope in building network capacity. As a result the JV Azerconnect has given Bakcell access to an unparalleled amount of spectrum and a strategic advantage over Azercell. Bakcell will be the only operator with the spectrum to offer LTE-Advanced, the next iteration of 4G; with download speeds of around 100Mbps “Spectrum is our lifeblood, at the end of the day,” concludes Richard Shearer gnomically.

Bakcell was announced “The Mobile Internet Provider of the Year” by the The Business Year publication

President Aliyev examines a smartphone w w w. b a k c e l l . c o m

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Schneider Electric Turning today’s risk into tomorrow’s opportunity Written by: Abigail Phillips Produced by: Richard Thomas

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SCHNEIDER ELECTRIC

Providing global energy and sustainability to the world

Andy Dewis, vice president of international solutions EMEIA

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he industrial landscape today is plagued with complex energy management challenges. Businesses are under increasing pressure to meet tight production demands while delivering quality goods and services, at a lower cost, with minimum impact on the environment. Schneider Electric is a global specialist in energy management and offers its clients solutions and services from a device level all the way to an enterprise level.

The company’s suite of solutions and team of experts can provide clients with real insight into energy consumption. Armed with this knowledge, their clients can identify possible savings - and with Schneider’s help - can balance their energy costs and production goals. Not only can Schneider help reduce costs by optimising its clients’ energy needs, but it can also improve the overall efficiency of individual enterprises.

Schneider Electric is a global organisation, employing in excess of 170,000 individuals with an annual turnover of approximately €25 billion. The company is divided into five individual divisions, which are Industry, Buildings, IT, Technology and Governance. Schneider Electric’s Global Solutions department spans all five divisions to provide energy and sustainability services to its global client base. “Our mantra as an organisation is to help customers to identify processes and target strategies for addressing sustainability and energy challenges. We then help them deploy bespoke technology solutions in order to address those

ENERGY

challenges. In effect, we span the entire Schneider Group and help to deploy the resources across Schneider in the right way for the right type of company. That can be the PV division as part of a renewable energy strategy for a customer or any associated technology applications within that,” explains Andy Dewis, vice president of international solutions EMEIA. Schneider Electric as a group focuses predominantly on two business segments corporate clients and regions (governments, cities, districts and counties). In both instances the Global Solutions team helps identify energy and sustainability related challenges to deliver five to ten year plans for its clients. Alongside

“Our mantra as an organisation is to help customers to identify processes and target strategies for addressing sustainability and energy challenges” – Andy Dewis, vice president of international solutions EMEIA

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Working together to deliver tailored business solutions SSE is proud to supply a large water company operating in the East of England.

Our Customer says: The manager that secured our business is the same manager that now manages our account. This means that there is continuity and depth in understanding of us as a client from sales through to normal contract management; other suppliers fall down here. Our account manager has secured an excellent dedicated team to service the contract and we run it together in the spirit of challenge and collaboration.

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SSE supply C fully renewab the portfolio

SSE is a trading name of SSE Energy Supply Limited which is a member of the SSE Group The Registered Office of SSE Energy Supply Limited is 55 Vastern Road Reading Berkshire RG1 8BU Registered in England & Wales No. 03757502 Authorised and regulated by the Financial Conduct Authority for certain consumer credit activities.

www.sse.com

es registered to a single start date

A proven partnership which is delivering results

s novated to our Customers preferred ents

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ntract with the ability to trade throughout

ng allowing physical trades where there liquidity

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Innovation in approach and solutions

Ability to meet and enhance your green agenda

ed team significantly improved the reads ared to the previous incumbent

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Alignment with your corporate purpose

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SUPPLIER PROFILE

SSE SSE powers nearly 500,000 business accounts across the UK, offering tailored energy services and expertise to deliver innovative gas and electricity supply solutions.

Customers include SMEs, large energy users and multisite groups across the private and public sectors.

At SSE Business, our energy prices are generated against the live energy market, meaning we offer competitive prices to both existing and new customers.

Our dedicated service begins with a team of experienced sales and support staff, trained in providing fast, accurate quotes and contract services.

This is backed up by highly trained staff with expertise in high voltage engineering, LED lighting and electrical safety to heating, ventilation, energy, and facilities management.

SSE was accredited as a Living Wage employer in 2013, and in October 2014 became the first FTSE 100 company to be accredited with the Fair Tax Mark.

For more information please call us on: 0800 072 3319 or visit www.SSEBusiness.co.uk

SCHNEIDER ELECTRIC

ENERGY

this the department also tracks major trends within the industry and feeds them back into its R&D and innovation team. In 2014 alone, the business invested €7.5 billion in research and tech development – a core focus of the business and one of its key differentiators. Schneider Electric is transitioning into a formidable technology company, with strategic focus on the Internet of Things (IoT), sustainability, and the knowledge economy through the convergence of information technology (IT) and operational technology (OT).

Research, development and innovation This year, Schneider Electric is focusing on a number of major industry trends including digitisation, automation, building management and control systems. By developing state-ofthe-art software solutions the company is able to extract value and combine all the data that exists for renewable and solar installations, thus driving efficiency for its commercial and residential clients.

“We are continually investing and innovating our tech solutions to drive more competition in the renewables, automation and energy sectors,” explains Dewis. “We are always reacting to customer needs and demands, while also looking to future demands and feeding that back to the huge R&D organisation that we have. We also keep a very close rein on our service organisation so we are continually changing, adapting and evaluating the types of services we offer. We constantly evaluate the type of people and resources we

€7.5m The amount invested in research & tech development

Research into renewables

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SCHNEIDER ELECTRIC

OPEN FOR BUSINESSES Total

WITH

SCHNEIDER ELECTRIC As the UK’s number 1* business gas provider, we are proud to have worked with Schneider Electric for the last 17 years, supporting numerous organisation’s energy needs for both today and tomorrow. * by volume - Cornwall Energy - October 2014

totalgp.com 62 April 2015 Total Gas & Power limited

SCHNEIDER ELECTRIC

ENERGY

bring into the organisation for and on behalf of our customers,” he says.

Developing world-class software solutions Schneider Electric has a technology platform within its organisation called Structureware, the whole theory behind it being that it will deliver value from the shop floor to the top floor. According to Dewis, the software being developed by the firm rivals the likes of IBM and Microsoft due to its targeted nature. “For example, we are working with a large brewing company at the moment to measure resource intensity per bottle of beer produced. Through our software the company is able to manage very specific components related to energy consumption such as financial control, waste and output efficiency. “We are also working

SUPPLIER PROFILE

Managing output

TOTAL

Supplying over 100,000 sites, we are one of the leading gas and electricity suppliers to business customers within the UK. We offer a range of products that can be tailored to suit the needs of our customers, complemented by a wide range of energy services designed to help our customers monitor, manage and optimise energy usage; identify opportunities for energy efficiency and on-site generation; and implement sustainable solutions that deliver quantifiable energy and carbon savings. We’re part of the Total Group and operate in more than 130 countries, making us one of the world’s largest suppliers of energy. www.totalgp.com

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SCHNEIDER ELECTRIC

Want complete control over how you buy and use your energy?

With our flexible contracts you can get a bespoke energy contract that can be as complex or as straightforward as you need. You choose the contract length, billing period and payment terms that are best for your business, even if you’re not a major energy user.

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corporate@gazprom-energy.com

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gazprom-energy.co.uk April 2015

Part of the world’s largest gas producer

SCHNEIDER ELECTRIC

ENERGY

with a data company to develop software that will manage and operate large data centres on their behalf. Our software is helping them optimise their energy efficiency and consumption across a global portfolio of hundreds of data centres,” says Dewis.

The company even works with cities to optimise things like traffic light and security camera management through software and technology.

The software has the ability to manage key metrics within a city. This could range from resource pressures or resource availability to commuter times. “Schneider Electric operates at the frontier of intelligent energy and urban efficiency. Our goal is to be the market leader in sustainability and efficiency software by leveraging the expertise of our 170,000 employees, to develop world-leading, bespoke solutions,” says Dewis.

SUPPLIER PROFILE

Tomorrow’s opportunity

GAZPROM ENERGY

We realise energy isn’t always your first business priority and you need the little time you have to focus on the things that really matter so we provide hassle-free energy to small and medium businesses.

This means we start by making it simple to switch to Gazprom Energy.

In fact, our small and medium-sized customers are 85% satisfied with their overall switching experience. You’ll also have 24/7 access to your account online so you can view invoices, submit meter readings and view historic consumption at a time that suits you. www.gazprom-energy.co.uk

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SCHNEIDER ELECTRIC

170k

The number of employees that work for Schneider Electric

Industry expertise Schneider Electric attributes much of its success to its HR and social programs. “We have a number of initiatives relating to skills development,” he says. In the Global Solutions team alone, there are wide ranges of skills from energy consultants to risk managers, people who manage commodities and volatility, traders and market price experts, engineers and technologists, process managers, installers and more. “We believe in giving our employees the tools they need to develop both professionally and personally,” says Dewis.

Furthermore, the business is looking to emerging markets to widen its global pool of talent. “We are

Hayley Covey and Charlotte Mawson I&C Team Leaders

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elpful Make the change to Haven Power.

Our business was built around service, and this extends beyond you, the customer, to the consultants we work with on your behalf.

We go the extra mile to ensure you have the best electricity product for your needs. We thrive on feedback and develop our products and services around you and your requirements – no matter how complex.

Haven Power: The helpful approach to electricity.

British-based / Business electricity specialist / Named contact

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April 2015

Call our UK based experts on

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ENERGY

looking to our emerging markets and economies and have a program called BipBop (Business Innovation at the Bottom of the Pyramid). As an example, we are currently training around 30,000 individuals in India in a whole host of different skills. This grows the talent pool of our community, our partner community and our associated companies, but it also grows the talent pool of our future employees in our growth markets,� explains Dewis.

Pool of talent

Sustainable to its core Schneider Electric is ranked as the 9th Most Sustainable Company on the Planet, and its vision w w w. s c h n e i d e r- e l e c t r i c . c o . u k

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SCHNEIDER ELECTRIC

Quality sustained

is to create a world where we can all do more while using less of our common planet.

From a philanthropic viewpoint, the company is wholeheartedly dedicated to being sustainable in every way. It has targets surrounding gender balance, ethnical balance and charitable giving, for example it recently started a scheme to bring

“We are focused on helping organisations understand how the lack of resources can affect them and how the impact of major shifts such as climate change are going to affect their organisation” – Andy Dewis, vice president of international solutions EMEIA 68

April 2015

ENERGY

energy to the world. It also has a scheme called the energy university – an online service, which is free to organisations, regions and the general public.

Looking to the future So what does the future hold for Schneider Electric? “We are looking at future trends and how we can move forward in a more digital and resource constrained world,” explains Dewis. “We have a big focus on helping our customer be more connected through technology and through our people and the skills and services we provide.

“We then also have a challenge to try and address consumption in its most holistic form. We know that energy demand will come under constrain and we can see shifts in global population spending as middle incomes increase in the developing world – all these elements will effect where our resources go and that represents a challenges for our customers.

“We are focused on helping organisations understand how the lack of resources can affect them and how the impact of major shifts such as climate change are going to affect their organisation. We want to educate them to recognise a risk today as a potential opportunity tomorrow,” he says. “Ultimately, we’re helping our customers do more with less - harming no one and benefitting everyone. We are trying to ensure we can sustain a level of quality, stability and sustainability in people’s lives and our customers’ organisations.” Dewis concludes.

Company Information INDUSTRY

ENERGY HEADQUARTERS

France FOUNDED

1836 EMPLOYEES

170,000 REVENUE

$30 billion PRODUCTS/ SERVICES

Electricity Distribution

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Retailers share supply chain innovation at MULTIMODAL 2015

Image copyright to Rob Sturges

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M U LT I M O D A L

Green initiatives, omnichannel opportunities, and compliance will top the agenda at the UK and Ireland’s leading logistics show

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etailers including Boots, Waitrose, and Sainsbury’s will share insight on supply chain efficiencies and innovation at Multimodal 2015, from 28-30 of April.

Thought leaders from Blue Chip companies such as the Co-Operative and Lafarge will discuss modal shift, omnichannel challenges, and best practice for new legislation during workshops at the exhibition.

Robert Jervis, Multimodal Director, said: “This year, more than ever before, Multimodal is bringing logistics decision makers together with innovators and suppliers working towards more efficient, compliant supply chains.

S U P P LY C H A I N

“We are looking forward to a lively three days of networking and business opportunities for visitors and exhibitors, as well as some informative debate and useful training sessions.�

Over 250 transport and logistics exhibitors will be showcasing original solutions to an expected visitor audience of over 7500 supply chain decision makers at the free-to-attend show at the Birmingham NEC. Multimodal features three days of seminars and workshops, as well as the exhibition, and a schedule of networking opportunities including a VIP Gala Dinner and Awards ceremony.

Emma Murray, Multimodal Seminar Director,

Image Copyright Michael James Photo

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C O M PA N Y N A M E

Images above and left are copyright to Michael James Photo

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S U P P LY C H A I N

said: “We have teamed up with The Chartered Institute of Logistics and Transport (CILT), the Freight Transport Association (FTA) and others to put together a programme looking at how to run slicker, more compliant supply chains.”

Exhibitors from across the supply chain spectrum attending this year will include PLUS Logistics, DP World Southampton, Dachser Ltd, The Pallet Network, DB Schenker, and Charles Kendall Freight.

Registration is now open using an online system connected to LinkedIn profiles, which enables visitors and exhibitors to organise one-to-one meetings and easily contact suppliers and peers who are attending the event.

Multimodal is the UK and Ireland’s leading freight transport and logistics exhibition, which also features a series of topical seminars and masterclasses, and hosts a Shippers’ Village, giving freight buyers a private space to meet logistics suppliers. The supply chain show, entering its eighth year, is free-to-attend and will take place at the Birmingham NEC 28-30 April 2015. The Multimodal Awards and VIP dinner take place on Tuesday 28 April.

Multimodal 2014 was the biggest in the show’s history, with over 280 exhibitors and record breaking attendance of over 7100 supply chain executives.

For more information and to see details of the Multimodal Awards and VIP dinner, and other networking events, visit www.multimodal.org.uk w w w. m u l t i m o d a l . o r g . u k

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New Distribution Hub Strengthens Travis Perkins plc Supply Chain Written by: Matthew Staff Produced by: Craig Daniels

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TRAVIS PERKINS

The UK-based builders’ merchant is updating its physical supply chain to ensure the ‘Easy Supply of Product’ across all of its businesses

T

ravis Perkins plc has seen strong and continued growth over recent years, with £5.6 billion of revenue generated in 2014 alone. The Group has almost doubled turnover in the past five years and is forecasting a similar increase in revenue over the course of the next decade. 2015 will see Travis Perkins plc concentrate on its appeal to customers, along with expanding its branch and service network.

Built up of builders’ merchants and retail businesses, a pivotal component of the Group’s rolling three and five year targets revolves around the supply chain, and Steve Smart, the Director of

Travis Perkins plc’s new Omega Centre at Warrington

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S U P P LY C H A I N

Distribution Development, is adamant that this strategy will continue to reap rewards moving forward.

“My role is to look at what we do today and determine how to do it more efficiently along with predicting what the business will require of us in three and five years’ time and deciding what we need to put in place now to make sure we are in a position to be able to deliver that,” he said.

“In the future, I would like to report that the things we’ve mapped out on our current five year plan have been delivered and were the appropriate actions to support the needs of both our customers and our businesses.”

Easy Supply of Product Travis Perkins plc’s supply chain strategy is focused around the motto ‘Easy Supply of Product’ (ESP) and designed to improve both customer experience and the Group’s branch and service network. The Group is keenly aware of how important it is for tradesmen to get the products they want, when they want them, but recognises that this can be difficult to achieve across its fragmented market and multiple businesses. Travis Perkins plc showcases some of the most renowned players in the UK’s building merchant and retail industry, including the likes of City Plumbing Supplies (CPS), Plumbing Trade Supplies (PTS), Keyline Building Materials, CCF, Solfex

Key Personnel

Steve Smart Director of Distribution Development Steve has been Director of Distribution Development at Travis Perkins plc since 2012 and is responsible for the development and implementation of the Group Distribution Five Year Strategy. He first joined Travis Perkins plc in 2010, bringing his 20+ years of experience in supply chain management and logistics to the role of Interim Logistics Development Manager. Previously, Steve worked as a consultant supporting Spicers and Proteus PM Ltd having previously held senior positions at MFI, where he managed the Logistic operations, integrating key distribution operations without any detrimental impact on service, operation or HR performances. In his spare time, Steve enjoys playing golf, spending time with his family and working on his own DIY projects.

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C O M PA N Y N A M E

Putting you in control of your business communications

W

hen designing any new telephony solution, whether a leading edge picocell rollout, Lync integration or multi-site VoIP deployment clearly choosing the right technology is key. However, Arrow measures success by meeting the expectations of the people, from business owners and senior managers through to end users.

As a solutions integrator, we aim to deliver a seamless transition from traditional telecom services to unified communication platforms with built-in resilience. So in addition to our considerable technical expertise, we factor in wider considerations such as contract flexibility, recycling, DR, internal policy creation and training to

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ensure we meet those expectations.

If you are still developing your telecoms strategy, we would be happy to carry out a full review of your current estate and offer advice and support on the solutions which will optimise telephony and IT services for your operations today but also with an eye on the future.

enquiries@arrowcommunications.co.uk Tel: 0333 240 9880 www.arrowcommunications.co.uk

TRAVIS PERKINS

S U P P LY C H A I N

and Travis Perkins itself in the former sector, and Wickes, Toolstation and Tile Giant in the latter, and the ESP supply chain offers support to all of its businesses.

Smart explained: “Travis Perkins plc’s future plans are focused on the self-improvement of our business; aiming to encourage branch network growth, improve in-branch ranges and implement a multi-channel ordering system. Our ESP supply chain is an essential component in improving the Travis Perkins plc experience for both staff and customers, providing quick and easily access to stock for all branches” “Updates to our physical distribution sites are a key factor in the creation of our ESP supply chain and our self-improvement of the business as a whole,” Smart continued. “We have a number

SUPPLIER PROFILE

Travis Perkins showcases many well known businesses in the industry

ARROW BUSINESS COMMUNICATIONS

Arrow Business Communications has been providing innovative communication solutions to business users in the UK for over 19 years.

A strong focus on bespoke propositions means thatItaque Arrowconsed offers aquam range of products and value added services individually tailored to aspero et modite customers’ specific requirements. Our mobile, fixed and data solutions have a proven track record of reducing costs, increasing productivity and improving both communications and work flow within our customers’ organisations.

Website: www.arrowcommunications.co.uk

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TRAVIS PERKINS

Inside Travis Perkins Plc’s new Omega Centre at Warrington

‘Dedicated to CPS, Travis Perkins, PTS, Keyline, CCF and Benchmarx, Omega serves 450 branches, and stocks 19,000 SKUs.’

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of new sites that we are incorporating into our physical supply chain, which will improve all branch services in place today, as well as allowing space for future network and service growth, such as the implementation of a multichannel ordering system.”

Hub of activity Travis Perkins plc’s primary distribution hub, comprising four distribution centres, on Brackmills Industrial Estate in Northamptonshire covers a multitude of its businesses, and the introduction of a replica in Warrington – known as the Omega Centre and a hub for light side stock - along with additional Range Centres around the

S U P P LY C H A I N

Arrow Business Communications

country to supply heavy side stock, is part of the ESP ethos, enhancing the flexibility and time-tomarket of the supply chain significantly.

The new Warrington Omega Centre is a focal point of Travis Perkins plc’s current five year plan. Dedicated to CPS, Travis Perkins, PTS, Keyline, CCF and Benchmarx, Omega serves 450 branches, and stocks 19,000 SKUs. Smart explained the process behind opening Omega: “In 2010, we took a look at the business as it stood and how we could improve – with a particular focus on the ‘Easy Supply of Product’. We were still in a recessionary minded environment so to go and ask the business to invest tens of millions into the physical supply chain structure was an

Arrow specialises in providing bespoke IT and telephony services for businesses in the UK, helping organisations like Travis Perkins to shape their telecom strategies as they transition to newer technology platforms.

Arrow’s relationship with Travis Perkins spans 11 years and has developed into a close working partnership. Arrow not only supports Travis Perkins’ telephony infrastructure across all of their sites, but are currently rolling out a unique in-store headset solution which will enhance overall customer experience as well as deliver productivity savings of 13 – 14 man days in store per week.

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C O M PA N Y N A M E

Countynet ltd is a Midlands based company with a national presence.

We provide installation and support services for voice, data and security for SMEs & corporate businesses across the UK. We are a supplier with a broad range of services offered to enhance the efficiency of our clients network.

Understanding the technical effectiveness of a commercial environment is our strength.

Recognising the right IT tool for the job can be a challenge, so a brief consultation at the beginning helps aid

decision making, because one size really doesn’t fit all!

We strive to make your network an efficient machine that integrates seamlessly with your business.

We recognise that when your business grows, so will ours, a fact we never forget when it comes to customer service.

We understand our client’s network is only as good as the cable it runs on.

Therefore getting the first network element right is crucial.

Tel: 08453 900 922 info@county-net.com www.county-net.com

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TRAVIS PERKINS

S U P P LY C H A I N

ask, but it was about aligning the physical supply chain with the Group’s aim to implement ESP across all businesses and provide mulitichannel ordering options for customers. .”

In addition to Omega, Travis Perkins plc is opening four ‘Range Centres’ across the country, to ensure every branch of each of its businesses can offer a wider range of stock, along with next day delivery on all items. The Cardiff Range Centre opened in December 2014 – it covers 80,000 square feet and supplies branches across the Southwest, joining the Warrington Range Centre which opened early 2014 . Two new Range Centres are also set to open in Tilbury and Coventry, in July 2015 and 2016 respectively.

These supply chain developments will allow all Travis Perkins plc businesses to offer a

SUPPLIER PROFILE

80,000ft

2

size of the cardiff range centre

COUNTY NET

Countynet Ltd has been providing infrastructure and support service for Travis Perkins for 11 years.

As a main contractor at Travis Perkins Omega Park DC project our responsibility is to provide infrastructure for: network points, wifi access points, CCTV, and door access, all connected via fibre optic OM4 backbone. Our skill set reaches far beyond providing cabling services. We will deliver a fully connected, functioning and warranted LAN underpinned by a host of vendors.

Website: www.county-net.com

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C O M PA N Y N A M E

Team members at Travis Perkins plc’s new Omega Centre

“Omega and the new Range Centres are designed to be able to allow us to support our branches better” – Steve Smart, Director of Distribution Development, Travis Perkins plc

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April 2015

wider selection of stock and next day delivery on all items – all part of the ESP ethos. Smart explains: “Omega and the new Range Centres are designed to be able to allow us to support our branches better and ensure our customers can get the products they need easily, while they will also massively reduce our carbon footprint.”

Planning ahead The ongoing rolling five year plan of Travis Perkins plc not only aligns with strategies and resources at hand today but, more importantly, lines up with predictions of what the Group’s strategies and

SECTOR

resources will be in the intervening years.

“One aspect of our plans for the ESP supply chain involves developing a multichannel ordering system for our customers, utilising initiatives like ‘Click and Collect’” Smart explained. “We have to manage the relationships with the builders we have supplied for many years, whilst ensuring that we’re in a position to deliver to the builder who is new to the trade and may have a different view on what his or her requirements are. Our ESP supply chain is paramount to this, ensuring all of customers can access the products they want quickly and easily. ”

Worker at Travis Perkins plc Omega Centre

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C O M PA N Y N A M E

Members of Travis Perkin plc

“We have a solid plan on how we will enable the requirements of the business moving forward by investing and working closely with our internal and external IT providers.”

– Steve Smart 88

April 2015

To emphasise the company’s commitment to continuous self-improvement, Travis Perkins plc has also invested in updating its IT, introducing agile involvement methodology, as well as becoming a Google-based business and investing with JDA on a group planning and replenishment system to update its inventory systems.

Smart added: “We have a solid plan on how we will enable the requirements of the business moving forward by investing and working closely with our internal and external IT providers. Agile involvement means we are able to deliver benefits far quicker and far more aligned to the business needs than we’ve ever been able to before.”

S U P P LY C H A I N

For example, Arrow, one of Travis Perkins plc’s external providers, specialises in providing bespoke IT and telephony services for businesses in the UK, helping organisations to shape their telecom strategies as they transition to newer technology platforms. Arrow’s relationship with Travis Perkins plc spans 11 years and has developed into a close working partnership.

Arrow not only supports Travis Perkins plc’s telephony infrastructure across all of their sites, but are currently rolling out a unique instore headset solution which will enhance overall customer experience as well as deliver productivity savings of 13 – 14 man days in store per week.

Smart concludes that a successful supply chain strategy depends on “the ‘Easy Supply of Product’ and planning ahead to ensure this can be offered by all individual business units.”

He continued, “We have a general merchants division, which is different to the retail division, which is different to the plumbing and heating division for example. But ultimately, we need to ensure they all have quick and easy access to products through our supply chain and can pass the time and cost savings onto their customers.

It comes down to understanding and working with the different business units, listening to what they and their customers are asking for, having an interpretation of what that might look like in five years’ time and evaluating the investment required to enable us to deliver that.”

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Northampton FOUNDED

Founded over 200 years ago EMPLOYEES

26,000 REVENUE

£5.6 Billion PRODUCTS/ SERVICES

Building merchants

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Majaal looking to

replicate its success across the GCC Written by: Sam Jermy Produced by: Dennis Morales

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Majaal Phase 1 (building 3) at BIW, Hidd

The SME-focused warehousing and industrial company from Bahrain is now ready to extend its reach to other countries

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M

ajaal Warehouse Co. is looking forward to an exciting growth phase in its relatively short history, as the company has struck upon a business plan to expand upon its early success.

The winning formula means the organisation has been able to progress without the burden of unnecessary capital expenditure, and now the prospect of having a presence in other Gulf countries such as Saudi Arabia and Oman is a distinct possibility.

Fully owned by First Bahrain, an innovative investment company, Majaal Warehouse Co. started as an organisation less than a decade

SECTOR

Key Personnel

Amin Al Arrayed Managing Director

ago when strategic land was acquired to development a warehousing project. The intention was to plug a gap in the current market and cater towards small and medium-sized enterprises.

Amin Al Arrayed, Managing Director at Majaal, said: “We were embarking on a strategic development and the idea that came to us was to essentially focus on the industrial centres in Bahrain, and remedy a supply gap in the market. “There were two key reasons for this; firstly the government was spending a large sum to develop the Salman Industrial City in Hidd with a close proximity to all major air, sea and land transport links. But central to this was the new Khalifa Bin

Amin Al Arrayed is a co-founder of Majaal, which was his first project as the Chief Executive Officer of First Bahrain.

He is responsible for the strategic objectives of both Majaal and First Bahrain. Reporting directly to the Board of Directors, he controls the development, performance and profitability of the company, ensuring the business maintains and develops its key business partnerships.

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MAJAAL

S U P P LY C H A I N

Salman Port. The old trading port was due for closure and everything would be shifted to this new port. We pre-empted the move, secured key land and as a result our warehousing project continues to serve SMEs very well to this day.�

Situated at the Bahrain Investment Wharf (BIW), the 60,000 square metre multi-purpose facility is now at full capacity with around 30 tenants who use the warehouse for anything from storage, documentation filing and cold-store to light manufacturing, printing, and wood production.

In addition to this some tenants have packaging and distribution operations ongoing at the warehouse. There is easy access for trucks and Majaal offers a variety of service for tenants such as 24/7 security, state-of-the-art IT, Forklift, shelving and racking procurement as

SUPPLIER PROFILE

60,000m2

Size of Majaal warehousing project in Bahrain

SANAD ENGINEERING

Sanad Engineering was founded in 1991 as an engineering company providing architectural, civil and land surveying services. We have 24 years of experience of successfully delivering projects to the Commercial, Retail, Healthcare and Industrial sectors. Our class of international engineers mirror Sanad’s brand of innovation, quality and reliability. By adhering to our business model of encouraging collaborative efforts we have always found a way of nurturing a natural synergy between ourselves, our partners and clients to achieve our objectives.

www.sanadengineering.com

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MAJAAL well as an array of other business services.

Mazaya Logistics at BIW

Company evolution Recently the company came to a crossroads in its development as a result of being at full occupancy at the BIW site. It could either build more facilities or start to develop its project more as a franchise concept, and the organisation took the latter option.

Al Arrayed said: “Majaal now offers services to lease, develop and operate warehouses for third parties. We’re leveraging our experience and success in our own project and are now offering turnkey solutions for clients as a third party agent.

“We have successfully partnered with another

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April 2015

Zeenat Al Mansoori & Associates is a leading full-service law firm in the Kingdom of Bahrain. For 25 years, the firm has been delivering creative, effective and cost efficient legal solutions with sharp thinking and impeccable execution.

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5th Floor Al Matrook Building Road 1705 Diplomatic Area P.O. Box 11522 Manama 317 Kingdom of Bahrain

S U P P LY C H A I N

landowner and investment company called Al Mazaya Holdings, we are developing and operating warehouses on their behalf; adding another 22,000 square metres on our portfolio of warehouses under management. We will act as facilities and leasing managers on their recently completed $20 million industrial site.

“We’ve been able to add a new revenue stream on top of the rental income with the service income. It has allowed us to expand without the heavy capital expenditure that comes with land acquisition.

“We think it’s a very prudent way of expanding across the GCC. This is how we envision growing our brand and undertaking projects outside of Bahrain.”

Effectively growing by a third in size as a result of contracts signed is something that would not be possible at the same speed if Majaal were to acquire and build on its own land. Al Arrayed sees the firm’s chosen method as a very scalable and successful business model which he hopes will allow it to gain an international presence.

As part of the wider remit, Majaal took part in the Gulf Industrial Fair in Bahrain and this provided the opportunity to not only announce it had signed with Al Mazaya but that it is eager to take on other such mandates.

Al Arrayed added: “We have actively marketed and introduced ourselves to industrial landowners from further afield. Our business model allows us to get into other markets without significant equity

Mazaya Interior at BIW

“Majaal now offers services to lease, develop and operate warehouses for third parties. We’re leveraging our experience and success in our own project and are now offering turnkey solutions for clients” – Amin Al Arrayed Managing Director, Majaal

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MAJAAL

Mazaya at BIW, Hidd

risks and that’s always been a consideration when looking at Saudi, Oman and other countries in the GCC. We have already registered Majaal as a trademark in these territories. We are able to be more flexible going forward and can expand with ease; we are in a prime position at the moment.�

Mazaya Logistics

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Technology and future objectives Majaal has the potential to go far beyond its current value if the prospect of future contracts are taken into consideration. Technology

S U P P LY C H A I N

has become a key tool in the business and leveraging the correct systems to the company’s advantage is another standout feature.

AL Arrayed concluded: “I truly believe we can go from a $50m company to doubling size over a relatively short period of time thanks to the processes we have in place. We have invested quite heavily in IT platforms, such as customer relationship management (CRM) systems, that allow us to manage 50, 500 or even 5,000 tenants and their requirements, messages and payments.

“Having an automated system that alerts you on overdue issues is invaluable and keeps us on top of everything. Tech is a differentiator in our line of business and there’s no way we could manage tenants properly in Saudi and Oman if we didn’t have that automated system.

“Clearly management and reporting on profitability and potential savings need to be taken at a macro level and the ability to break down data will be critical as we expand across the GCC. The staff are the faces behind the success of Majaal though, and we are confident our core staff and the outsourced services will continue to be delivered to a high standard.”

Majaal hopes that within the next two years it has a presence in another country in the GCC, a landmark achievement in the company’s history, on its way to becoming a regional player.

It is clear to see from the success of the Bahrain model, Majaal will continue to be busy with savvy landowners for many years to come.

Company Information INDUSTRY

Supply chain HEADQUARTERS

Hidd, Bahrain FOUNDED

2008 EMPLOYEES

Not disclosed REVENUE

USD 3.3 million PRODUCTS/ SERVICES

Warehousing

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Dundee Precious Metals shows that

caring leads to success Written by Tom Wadlow Produced by James Pepper

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D U N D E E P R E C I O U S M E TA L S

The Canadian miner has embedded into Bulgarian and Armenian communities thanks to its environmentally and sociallyresponsible operations, bringing with it much needed economic boosts

D

undee Precious Metals is maximising productivity from its European assets in a responsible manner having boosted output fourfold at its flagship Bulgarian site while operating under the mantra ‘we succeed because we care’.

The company has four working projects and a number of exploration programmes spread across three continents, and is looking to cement itself as a global leader in sustainable mining operations, combining strong social work and provision of jobs for locals with environmental innovation in the mines themselves.

Having begun in Toronto, Canada, 30 years ago, Dundee Precious Metals began life as an investment fund in the gold mining sector, converting into an operator when its founders discovered the underground

Heat exchangers, converter, absorption towers to stack

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Strong CSR saw Dundee embed into communities

sites in Bulgaria and Armenia.

Now it is close to opening another Bulgarian mine and expanding its operations in Namibia, adding a sulphuric acid plant to convert the emissions created by its Tsumeb smelter.

Chelopech Encapsulating what Dundee Precious Metals is about is its flagship mine at Chelopech in centralwestern Bulgaria.

Bought by the business in 2003, the former Soviet-run gold, copper and silver mine has been given a complete facelift to the value of $400 million which has seen overall production quadruple, with ore output reaching 2.076 million tonnes.

“This is about earning respect as a foreign company and our stakeholder engagement and environmental work has allowed us to embed into societies� – Rick Howes, CEO

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D U N D E E P R E C I O U S M E TA L S

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D U N D E E P R E C I O U S M E TA L S

MINING

Chief Executive Officer Rick Howes believes there is even more potential to be extracted.

He said: “We are exploring the whole surrounding region and believe there is a lot more mineralisation out there. There is about 10 years of life left in its current state, but we keep adding to this all the time and it is already one of the largest gold mines in Europe.”

Dundee Precious Metals has greatly upgraded the site, replacing the 50-60-yearold systems and processes with modernised technology and solutions.

For example, a recent innovation has been the introduction of wifi to allow real time tracking of operations, crucial to monitor productivity and stay on top of potential health and safety hazards.

Partners such as HP and Cisco are helping to

SUPPLIER PROFILE

ELTRAK

ELTRAK is responsible for the full range of machinery Caterpillar , the world’s largest company of this type (earthmoving machinery, forklifts, power generators and marine engines) and has developed a network of branches throughout Greece, to provide the necessary after -sales support and to directly meet the needs that may arise in spare parts for earthmoving machines, generators (G / S), the lift machinery and shipping.

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D U N D E E P R E C I O U S M E TA L S

bring further technological upgrades to the site.

Local people from the surrounding are of the Dundee sites

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Giving Back Key to success at Chelopech, and indeed all of the company’s work, has been the careful integration into the project communities, both in a social and environmental sense, convincing the local populations that Dundee Precious Metals is a positive influence in their areas.

MINING

Key Personnel

Richard Howes President & CEO

Chelopech has seen a number of sustainable innovations implemented. This includes a new staged flotation reactor from Woodgrove Technologies, reducing power consumption of the flotation process by 50 percent. Air consumption is reduced by 80 percent and the amount of floor space required is 50-60 percent of that taken up by conventional equipment. “We have proven it is a no brainer, and are

Rick Howes is a Professional Mining Engineer with over 34 years’ experience in the mining industry.

His extensive industry experience includes progressive technical, operating, management and project roles in many of the largest Canadian underground mines and mining companies throughout Canada and most recently internationally.

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April 2015

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MINING

the first company to use this technology on a broad basis.� Howes added. “It is fully-installed at Chelopech and the big miners like Rio Tinto are now testing it. We will use it wherever we can as there are so many environmental and economic benefits to it.�

Other examples include systems which treat and recycle 100 percent of the water used at Chelopech with zero discharge, and a new conveyor to transport materials form the mine to the surface, replacing the use of trucks, leading to a 40 percent reduction in diesel use in 2013.

On the social side, building relationships with governments and local populations has been Rick Howes the most important challenge that Dundee Precious Metals has had to overcome. In 2013 the company spent $3.2 million on community investment and was recognised as the most

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D U N D E E P R E C I O U S M E TA L S generous financial donator in Bulgaria.

“This is about earning respect as a foreign company and our stakeholder engagement and environmental work has allowed us to embed into societies,” Howes said. “Convincing them that we will continue to invest was a challenge, but we have been successful and that is proven by the fact we are now working on a second project in Bulgaria.”

The company’s social responsibility is no better demonstrated than by its Chelopech English Language School, which was acquired with the mine and now attracts Bulgaria’s brightest students having seen significant investment. All teachers are Dundee Precious Metal employees.

Across all sites Dundee Precious Metals takes on local workers and provides them with training

MINING

“It was vital to take away the concerns of the local people and we are also introducing other sustainable features including new dry waste disposal methods” – Rick Howes, CEO

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D U N D E E P R E C I O U S M E TA L S in the key skills required, encouraging promotion from within and embracing six core values – dignity and respect, continuous improvement, transparency, environmental responsibility, safety and community investment. Including contractors the company employs around 4,000 people.

A worker at the mine

Kapan and Krumovgrad In the southeast of Armenia, the Kapan underground mine has been modernised like Chelopech since the company acquired it in 2006, requiring a big focus on skills training and addressing language barriers.

Last year 403,000 tons of gold, copper, silver

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Our local teams have the experience to go beyond meeting initial customer needs. Through access to Shell’s superior technology, products and related services we are able to add additional value to customers’ operations. In this way we aim to be the first and trusted choice for our customers.

NAMIBIA

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Shell trademarks used under license.

MINING

and zinc ore was produced, and although the mine is markedly smaller than its Bulgarian partner, there is excellent expansion potential.

Howes said: “We think we can double it in size, and though the decision to fully invest has not been made yet we are doing the studies and evaluations – within the next year or two we will have made a final call.”

Another exciting prospect is Dundee Precious Metals’ first open pit project, the second Bulgarian venture located just outside of Krumovgrad in the southeast of the country.

The site will be built by local contractors and a much-opposed cyanide method for extracting gold has been removed from any plans for the development, with Howes keen to showcase this as a pioneering example of an environmentallysensitive mining operation. Production should begin by late 2017 or early 2018.

“The life of the mine is about eight years and we are still exploring the area in the hope of expanding this further,” Howes added. “It was vital to take away the concerns of the local people and we are also introducing other sustainable features including new dry waste disposal methods.”

Dundee will also be starting its first open pit project in 2017 or 2018

Namibia There is also exciting work taking place in Namibia, home to Dundee Precious Metals’ specialised smelter which processes complex copper concentrates produced at Chelopech, having once served the notorious Tsumeb copper mine. w w w. d u n d e e p r e c i o u s . c o m

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“The uranium mines require the acid to leach out the uranium and the miners are keen to get their sulphuric acid locally as opposed to shipping in from other parts of the world� – Rick Howes, CEO 114

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Since buying the site in 2010 having been a customer of the previous owner, the company has invested around $350 million on modernisation, $242 million of which on a sulphuric acid plant which converts smelting emissions into product which is then sold onto Namibian clients.

Rossing Uranium Limited has already signed a five-year contract for 225,000 tons a year of sulphuric acid for use in its uranium mine, with local logistics operator TransNamib doing the transportation work by train.

Weatherly International is another customer signed up, with the total annual production of

MINING

230-280,000 tons already completely sold.

“There are about 1,200 contractors on site at the moment completing the project,” Howes said. “The uranium mines require the acid to bleach out the uranium and the miners are keen to get their sulphuric acid locally as opposed to shipping in from other parts of the world.”

The site has already seen emissions reductions of more than 44 percent over the course of 2013, with the new plant set to boost this figure even further.

Tsumeb is also improving its energy efficiency, with an 18.7 percent energy intensity decrease seen across 2013.

Chelopech saw a 10.6 reduction while Kapan achieved a 7.3 percent drop.

By continuing to pioneer greener mining techniques across all of its growing and impending production sites in Bulgaria and Armenia, Dundee Precious Metals will continue to build on its collaborative work with local communities and bring vital wealth and resources to local populations.

Such principles will not be sacrificed as the company continues to grow, with Howes determined to lead the way as a responsible miner with a worldwide presence in the future.

He concluded: “You must earn the right as foreign company to mine another country’s resource – being an investor of choice is hugely important, and people want us to stay.”

Company Information INDUSTRY

MINING HEADQUARTERS

Toronto, Canada FOUNDED

1980s EMPLOYEES

2,800 (4,000 with contractors) REVENUE

Not disclosed PRODUCTS/ SERVICES

Mining

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How packaging manufacturer Firstan stays ahead of the game What can we learn about holistic sustainability from a leading packaging producer?

Written by: Nye Longman Produced by: Marc Lewis

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F I R S TA N

Firstan’s die cutting machines are far cry from the first models used nearly 40 years ago.

F Clients always

irstan supplys elite packaging services to an impressive roster of clients from the manufacturing and pharmaceutical industries. In the run up to celebrating its 40th year of production, the company is investing in both its technology and its people power to stay ahead in a very competitive and often challenging market.

The company remit covers full packaging design and production using the latest technologies, and also extends to braille implementation and brand protection.

recognises the ingenuity of Firstan’s design team

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Operations Production Director Paul Hartwig often eschews complexity when it comes to his manufacturing methods, preferring to defer to, “common sense” as often as possible. This homespun process

M A N U FA C T U R I N G

seems to be working, he declared, “In some instances we are going from a phone call to producing 100,000 cartons in 24 hours.”

Key members of the company meet on a monthly basis to discuss key business issues.

Members of the ‘Continual Improvement Team’ discuss project progress and what the future may bring, as well as the latest developments in technology. Not only do regular meetings like this galvanise the vision of a company, but they also provide different sections of the business with a platform to communicate.

Firstan is ISO14001 Accredited, which means that it is actively reducing waste within the company, and making best use of its materials.

“In some instances we are going from a phone call to producing 100,000 cartons in 24 hours.”

– Paul Hartwig, Production Director

Left: Paul Hartwig, Production Director.

Right: Andrew Hartwig, Managing Director

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F I R S TA N

Firstan recognises that protecting the environment often

Firstan uses paper suppliers that compy with the PEFC 120

April 2015

Not only does the company ensure that the paper it uses complies with the established guidelines set by the Forestry Stewardship Council (FSC) it also uses paper suppliers that comply with the PEFC (Program for the Endorsement of Forest Certification.) This commitment to high standards in an industry as paper-hungry as print is certainly refreshing but also took on a more personal note, when Hartwig told us, “We know our suppliers aren’t ripping up trees in rainforests and kicking orang-utans out of their homes.�

Further to reaching its goal of zero carbon emissions, Firstan turned to a local source to

M A N U FA C T U R I N G

ensures long term profit

secure its haulage requirements. Aside from reducing the distance between the haulier and the Godmanchester factory, the contractor exploits its strategic position on the A1 corridor to ensure that its lorries do not return with empty containers. For a company in a sector that relies so much on distribution, this initiative represents a gold standard for transportation, one that is both “cost efficient and environmentally friendly� according to Hartwig.

Management meet

People Management Firstan recognises that sustainability is a concept

on a regular basis to strengthen their vision

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that applies as equally to its staff as it does the environment, and this paradigm has enabled the company to foster a loyal and aspirational workforce. Hartwig warmly informed us, “We have a few people that have been with us for over 20 years, some travelling probably for an hour each way… some people even drive past a competitor of ours on their way here, which tells you something!”

Alongside a happy and motivated workforce, loyalty to this degree enables a company to retain employees that are experts in the industry, and who have experienced the growth of the business first hand.

The company is keen to invest in the development of its employees, overseeing it all with an expansive computerised HR system that Hartwig and the rest of management use to, “see what skills are around us.” Furthermore, he stated, “Management are basically talent scouts. We have a low turnover of staff… if you look at employees past history, we have seen people go from shop floor to director level.”

In line with the firm’s operational goal of becoming a zero carbon company, Firstan is keen to see that best practice begins at the top, with managers becoming role models for the rest of the company; this is headed by a dedicated training initiative that helps management comply with the strict standards of the ISO14001 accreditation.

Putting the talent to work Utilising cutting edge developments in

Firstan uses the HR software to manage its talent

“Management are basically talent scouts. We have a low turnover of staff… if you look at employees past history, we have seen people go from shop floor to director level.”

Paul Hartwig, Production Director

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F I R S TA N

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manufacturing technology has not only ensured the durability of the company in the face of sometimes adverse market conditions, but has also created a system that delivers fantastic results for its customers. Perhaps the most interesting example of this is the adoption of Xrite colour management systems, which has reduced make ready times by up to 30 percent, as well as cutting waste by 50 percent. This surely represents the ‘sweet spot’ of implementing new tech – delivering returns to the business, the customer, and the environment.

Hartwig is proud of the work his design team does, he said, “We supply to a lot of major retailers, and the feedback we get is that they have not seen anything as creative as Firstan.”

M A N U FA C T U R I N G

He added, “Especially within the pharma industry we’ve got demand for packing that is tamper evident and has hidden or covert security features… Innovation is more and more being sought by our customers and our design department has focused heavily on that area so we’re ahead of the crowd.”

Alongside the methods used to successfully deliver pharmaceutical standards, the company also offers a range of overt and covert measures to ensure that its client’s brand is strongly protected from criminal counterfeiting measures.

Conclusion To sum up, Firstan is an effective, forwardthinking company, whose dedication to quality and sustainability concerns has earned it a reputation for delivering for both its clients and the environment. Hartwig summed up its ethos best when he said, “We’ve always forged good relationships” and this, in essence, is the insight that puts this company out in front. Whether it’s the employees, its materials, or the very technology that powers the business, Firstan has every detail covered. The innovation that drives its product solutions spills over into the rest of the company, investing each decision with the confidence to wander off the beaten track.

Returning to the director’s homage to common sense – it would be truly refreshing if the sense that is so engrained in Firstan were seen by every company, not just the packaging sector.

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Godmanchester FOUNDED

1976 EMPLOYEES

Not disclosed REVENUE

Not disclosed PRODUCTS/ SERVICES

Folding Carton Manufacturer

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HEIDI CHOCOLATE replicating its success to a wider audience Written by: Sam Jermy Produced by: James Pepper

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H E I D I C H O C O L AT E

The premium chocolate brand is looking to enhance its presence in all of its export countries, especially the territories where it has experienced substantial success upon recent market entry

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March 2015

H

eidi Chocolate is looking forward to the next growth phase of its history, as the brand begins to strengthen its relationships with new and existing retailers across the globe.

The company was originally set up as a non profit in 1994 by Swiss chocolatier and entrepreneur Jurg Läderach, whose family founded Confiseur Läderach, the famous producer of premium chocolate and confiserie products in Switzerland. Now the Heidi Chocolate brand is coming of age on its 21st anniversary since operations began, having a presence in nearly 50 countries across the world from Canada to China, with the bulk of business coming from within Europe.

Testament to the success of the organisation is the fact Läderach decided to sell the business in 2013 as he had decided his mission for Heidi had been accomplished. The firm was bought out and is now owned by parent company KEX Confectionary, also owner of the Kandia and Niemetz Schwedenbomben brands.

Franco Del Fabbro, Managing Director of Heidi Chocolate, said: “It has taken a lot of hard work over the years, where Heidi started out modestly with some old equipment from Switzerland. But today we have a turnover of approximately €18 million, 420 staff, and sales in nearly 50 countries with half of that turnover now coming from outside of Romania. It is

FOOD

significant progress and an achievement to be proud of. “We continue to be an end-to-end business, where we purchase ingredients, manufacture and sell directly. We have a sales force that calls on the key customers and we distribute from our own warehouses to them inside Romania. For some countries we have exclusive deals with specific customers, so we deliver and manage the relationship directly through an export group team.

Other countries we have an appointed exclusive distributor who deals with the local retail chain. “We are number two in the Romanian chocolate bar segment after Milka, which is a good position.

However, you can only grow single digits a year depending on category and market condition.

With exports, even though we are at a relatively

â‚Ź18m Turnover at Heidi chocolate

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H E I D I C H O C O L AT E early stage in our presence, we are experiencing growth in the region of 10-20 percent. So that is the driver of our overall growth and naturally impacts our strategy.”

Heidi chocolate line

Position and strategy Not satisfied with resting on its laurels, Heidi Chocolate foresees double digit growth in the next five years.

“We are not talking about 10.1 percent either.” del Fabbro said. “That growth is going to be achieved through holding and growing our position in Romania and most importantly establishing ourselves as a clearly recognised

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For 25 years now we‘re determined to realize your ideas: development, design and production of plants and machinery for the chocolate, cocoa and sweets industry.

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FOOD

international brand. The focus of the past few years was conquering new countries, now our focus is to solidify that presence to get a better foothold in order to thrive.

“Overall business is solid, go to any big retail chain in Hungary or Poland and you will see our products properly displayed on the shelf. Other countries we have just entered; for example in the UK we started doing business with Asda at Christmas.

“The cost of cocoa has sky-rocketed and with the British pound getting stronger, it compounds the problem and remains one of our challenges.

We source cocoa from the Altimarkas and Barry Callebauts of this world as we are still too small to have a direct link with the actual bean production, but we are looking to implement a more direct supply chain from Africa in the future.”

Heidi recognises that international expansion requires a more world-focused mind-set, but relationships such as the ones it has with Turkish hazelnut farmers and Moldovan walnut producers has already been in place for many years.

Investment in future The future development of the company is clearly more towards the export market. Central to this is the intention to retain a high percentage of hand craftsmanship for its chocolate product. Bespoke hollow figurines and personalised chocolate bars are tailored for retailers and consumers, and Del Fabbro claims this is something their mass producing, multinational competitors have more

“The focus of the past few years was conquering new countries, now our focus is to solidify that presence to get a better foothold in order to thrive” – Franco del Fabbro, MD

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H E I D I C H O C O L AT E

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trouble to achieve, if nothing because of the relatively small scale of each order.

But expansion has necessitated cutting edge technology too. Del Fabbro said: “I was tasked by the board with creating a 2020 vision for the

FOOD

company, outlining where we want to go in the next five years and what we need in order to get there. Part of our strategic plan was a big boost in technology and machinery investment.

“Our capital expenditure this year is equal to that over the past three years. The single biggest investment has been the conching equipment, to further improve how the chocolate is made.

The second was increasing capacity on specific product lines and the third was to upgrade certain areas and equipment facilities in order to obtain IFS certification by the middle of 2016.”

Of course, in production especially there is constant training and there will be a need for that as Heidi receives newer technology.

Many employees have served more than ten years, and retention is high. Alongside this, the company recently finalised the creation of the Heidi foundation which serves to help employees in need and offers a helping hand to worthy community projects.

Looking forward, Del Fabbro believes the last challenge he faces every day is selecting what projects to pursue. “Enforcing some basic discipline is essential; we need to say for 2016 ‘these are the ten things we will be able to deliver and will make the difference,’ let’s not get distracted by appealing side projects or we may diverge from our strategic journey.”

It is a nice situation to have, and Heidi Chocolate looks primed for more success in the years to come as it continues to grow internationally.

Company Information INDUSTRY

Food HEADQUARTERS

Romania FOUNDED

1994 EMPLOYEES

420 REVENUE

€18 million PRODUCTS/ SERVICES

Confectionery

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