Green Guide March 2012

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guide MARCH 2012

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ore and more dealers I speak to are highlighting a keen company interest in fulfilling the green agenda, and more and more end-user businesses seem to be working sustainably – or at least making some efforts to. As highlighted in our article on ‘ticking the boxes’ back in December, the government is homing in on sustainable compliance, and this is becoming more prominent all the time.

Therefore, it is important to keep your ears and eyes open to the possibilities that are available to you – whether it be a moral concern, catering for an eco-aware customer base, or trying to improve your bottom line – there are plenty of ways to engage in environmentally-friendly practices, and once you try some out you are likely to find that you won’t be looking back. Enjoy!

EDITOR

CONTENTS 56 SENDING OUT AN ECO SOS

An interview with SOS on its Green Business Expo

60 GREEN PRODUCTS

An update on everything lean and green in the OP repertoire

64 STAYING IN THE LOOP

A close look at closed loop programmes

GREEN GUIDE

GREEN PROCUREMENT SOS

Greening the community Last month, Earlsfield-based dealer SOS office solutions held its debut Green Business Expo to build awareness within the local community. Nina Rosandic spoke to MD Trish Smith to find out more

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GREEN PROCUREMENT SOS

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hen you are recognised for doing something well, it seems a natural choice to highlight that quality and expand on it, which is exactly what Trish Smith thought when SOS came runners-up at the Wandsworth Green and Heartbeat Awards in 2009. “We were thrilled to be short-listed and to have our green credentials recognised. We have implemented new initiatives into the business not only to reduce our own carbon footprint but also to improve our customers by greening their supply chain.

Ever since then I’ve said that we’re going to hold a green event,” she explains.

Proof is in the tasting Smith decided that it was time to engage the community in a local exhibition to promote the company’s green initiatives and to prove to customers that being environmentally friendly does not have to come at an extra cost. “Being green does not need to be the more expensive option – our environmentally friendly products cost no more than conventional products and can often save you money. Show me an invoice and I will prove our products will improve your bottom line. As well as helping to save the planet,” insists Smith, who regularly runs green audits for customers. “Just by running through what a customer is buying and looking to comparable sustainably sourced products, I have proved time and time again that it really doesn’t have to be costly.”

The company, owned by Smith and her husband has been running since 1994 and is a member of Integra. Smith says that she has always been interested in engaging with eco-friendly practices, however she is quick to add: “I’m no eco-warrior, and that’s not what I’m trying to achieve here. It’s just we should all be thinking about it – we’ve seen what climate change can do, it’s our world and our children that will see the impact. If we can make some changes that might make a difference then why not?”

Support network According to Smith, the event was not a difficult one to organise, down to the amount of support from

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everyone involved. Smith was able to drive the idea forward with the help of Wandsworth Council and Wandsworth Chamber of Commerce. Steve Pinto, deputy chairman of Wandsworth Chamber, said: “Trish has been a chamber member for many years and regularly supports our events, so when she asked for some support in promoting her event, it was really very easy to say yes. Greening your business is close to the hearts of our members and we all are very impressed that Trish undertook such an important initiative and is leading on the green front in Earlsfield.” Such was the support from the local chamber, that Wandsworth’s Mayor, Cllr Jane Cooper, was in attendance and took a key role in the event (pictured). Smith found that many suppliers were also more than happy to get involved, “even those who were unable to attend donated green raffle prizes and product samples”.

Smith says: “Oh I should think so, yes. It’s been a very successful event and it opened people’s eyes to the greening issues and what they can do in their own business. The busiest stands were Antalis, with the recycled paper and Beta, with the Perfect green cartridges. Quite a few people have asked me for the boxes for recycling cartridges too, which is great.

With things like this you see the positivity in people, but it may take a while for it all to filter in and for things to actually change.” DS

Show me an invoice and I will prove our products will improve your bottom line as well as help save the planet The main event The day was held as part of Go Green Week, People & Planet’s annual national week of action, this year falling on 6-10 February. The exhibition was held on Friday, 12 February at the Riverside Business Park, and over 50 people, representing dozens of businesses from a wide variety of commercial sectors across South London, were in attendance, despite the snow and ice warnings. Visitors were encouraged to explore the latest environmental solutions and sustainable technologies available now, with demonstrations, seminars and information displays on products and developments “that make both economical and environmental sense”. The trade stands covered everything from paper to cleaning products, cartridges, green machines and more.

Among the exhibitors were Brother, Antalis, Beta, Ecoforce and Integra’s Initiative brand.

The day kicked off with a ‘greening your business’ seminar, held by Helen Clark-Bell from MCC Solutions, followed by a ‘speed networking’ session – a kind of speed-dating for businesses looking to share ideas and experiences, and also to further their green agenda. Following an address by Cllr Cooper, Integra’s Rob Burgess held a seminar on ‘smart trading the green way’.

A community dealer By putting together such an event, not only has Smith managed to assist companies in their plight to ‘green’ their businesses, she has also allowed for the SOS name to be spread across local press and for the company to cement customer and supplier relations on a face-to-face basis. For all those who attended, SOS will be stand-out as a firm that is keen to encourage a low-carbon future and trades responsibly.

When asked if she will repeat the event next year,

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SOS’S GREEN BUSINESS EXPO WHAT WAS ON SHOW? n Office products, print, paper and packaging n Recycled products and solutions n Free green audits n Environmentally responsible and fairtrade food/beverage products n Chemical-free janitorial supplies n Seminars

GREEN GUIDE

GREEN PRODUCTS

The demand for eco-friendly products has never been stronger, but what is out there and how will it benefit your customers? George Carey looks at the green products in the marketplace and what the industry is doing to promote the green agenda

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ith the host of products and services on the market claiming to promote sustainability and cut down on waste, it can be difficult to know which are the best and which will prove most popular with your customers, especially with businesses more likely to respond to changes in their costs.

“Resellers need to be careful not to overdo the philanthropic messaging of ‘going green’ and should be focusing on facts around energy saving, cost- and time-saving features and innovations,” says Phil Jones, sales and marketing director of Brother UK. For example, research shows that newer printer models use around 30% less energy and are more efficient in terms of consumables. One business the firm consulted reported using 20% less toner by upgrading its three-year-old printers.

“Resellers should also highlight the significant cost savings to be made by purchasing a machine which offers green features,” he adds. For example, a duplex feature can cut paper consumption by half and using the booklet feature can use up to 75% less paper.

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GREEN GUIDE

GREEN PRODUCTS

Top of the food chain In the case of manufacturers, arguably the most important factor in remaining eco-friendly is the sourcing of raw materials. For example, in 2011, Staedtler announced that all wood-cased pencils it made in Germany would be manufactured exclusively from PEFC (Programme for the Endorsement of Forest Certification) wood. As part of the company’s on-going review of environmental policy, it has been decided that over the course of 2012 selected wood-cased pencils will be manufactured from FSC (Forest Stewardship Council) certified wood too. In addition, many of the company’s products offer ‘efficient for ecology’ features and benefits; for example, its high break-resistance leads for mechanical pencils are made from over 90% natural raw materials and are completely PVC-free.

Pulp fiction?

Never has the need for sustainable raw materials been greater than in paper manufacturing but there is some debate about which is more eco-friendly: recycled paper or virgin paper. Banner announced in January that it had produced more than one billion sheets of 100% recycled closed loop paper, with sales receiving a boost from the company’s closed loop document destruction and paper recycling service. The company is now the sole provider of closed loop services under the mandated Government Office Supplies Contract. Richard Costin, MD of Banner, said: “We are delighted that closed loop is such a success and anticipate demand for closed loop to increase significantly during 2012. As all central government departments are adopting our closed loop solution it will considerably improve environmental performance in the UK.” Championing the virtues of virgin paper is Portuguese paper manufacturer Portucel Soporcel Group, which produces popular paper brands such as Navigator and Discovery. The company sources its raw materials from purpose-planted and sustainable forests, which it argues is just as environmentally beneficial as making recycled paper.

Portucel’s leading environmental product is its lightweight paper and it has developed 75 g/m2 and 70 g/m2 paper, which it claims is comparable in quality to standard 80 g/m2 paper but requires fewer resources and creates less waste. The company has also gained the European Union Ecolabel, which requires the use of certified timber of known provenance and bans the use of substances harmful to the environment and human health.

Green vision Manufacturers can also do their bit to raise awareness as Avery has demonstrated with its Green Office Week, in conjunction with The Office Show in May, now entering its fourth year. The campaign invites office consumers to demonstrate their environmental prowess by participating in the Green League, collecting points to win prizes and encouraging them to download product and environmental tips as well as rewarding the purchase of Avery environmental products.

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Avery conducted research that found that nearly half the UK’s office workers (47%) said their offices have actively become greener as a result of the economic downturn as staff put more effort into recycling, turning off unused lights and saving on heating bills. Greg Corbett, marketing director of Avery, said: “The high importance consumers are now placing on sustainability in the workplace is key for dealers to acknowledge and is something they should be incorporating into their offering and communications with consumers.”

Another manufacturer looking into these issues is Siemens. The Siemens’ Green League report published in January this year reflects the views of 600 businesses and reveals a mismatch between the views of their board members and their energy managers, with the boardroom much more confident about its efforts in energy management than those operating ‘at the coal face’.

It seems to disagree with the findings of Avery’s research, stating that, one in three (31%) of those responsible for energy management in UK businesses say that the issue is not being taken seriously by their organisation. Juergen Maier, MD of Siemens industry sector in the UK and Ireland, commented: “These results do give cause for concern. Not only is the UK subject to strict legislative carbon reduction targets, but many businesses are neglecting the impact that effective energy management can have on the bottom line.

Nearly half of the UK’s office workers said their offices have actively become greener as a result of the economy Eco dealers In addition to offering your customers environmentally friendly products and incentives to buy them, it is also important to show that your business is being run in a responsible and sustainable manner. One measure that dealers are increasingly employing is the lowering of emissions as a result of deliveries.

Last year Imagedirect invested in a new fleet of five Renault vans that utilise the latest Euro 5 engine technology, significantly reducing emissions and improving fuel efficiency by up to 15%. MD Damien Griffin explains: “Here at Imagedirect, we are always striving to improve our delivery service whilst reducing our carbon footprint, and these vehicles offer the perfect solution.”

Customers are looking for durability and low prices as always, but with a wide range of products now offering both along with green benefits, this represents the opportunity for increased sales for your business and long term savings for consumers. DS

GREEN GUIDE

CLOSED LOOP

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any dealers offer a cartridge recycle facility, some collect packaging for reuse, and some offer a general office waste recycling service.

Meanwhile, Banner, among other dealers and manufacturers, is running a system whereby customers are offered a paper recycling service, which allows their paper waste to be used directly in the manufacture of further reams of its Closed Loop paper brand, creating a cycle that is both cost effective and positive for the environment.

What’s the deal?

Banner’s Closed Loop paper scheme, set up in coordination with HMRC, was said to play a key part in the win of its £37m government contract last year.

The stationer offers customers a paper recycling scheme, in which the used batches are micro-chipped so that the waste is used for further production of the client’s stocks of the Closed Loop paper brand – allowing a company to literally reuse its own paper supply. Along with this, the company offers clients an on or offsite secure paper destruction service, and the price of the paper is subsidised in light of the fact that the client is contributing raw material for its manufacture.

Office supplies group OfficeTeam was awarded a Green Apple Environmental Best Practice Award for its similar Close the Loop paper recycling service.

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(see IDS League interview p26) Since launching the service in 2008, OfficeTeam customers and staff have helped to divert over 853 tonnes of waste paper from going to landfill. Simon Worsfold explains: “We create a product code for the recycling bags we generate and when a bag is full a customer contacts us to order another one and then we use that as a trigger to go in, fit the new bag, and take the other bag away to a recycle plant where it is made into our EcoTeam paper range and other recycled paper products.” This in itself is an attractive proposition to clients, but the company is looking to revamp the scheme, to make the pick-up and delivery process as fuel-effective as possible and reduce the carbon footprint, in keeping with the ethos and aim of the scheme.

The recycled market The Confederation of European Paper Industries (CEPI) reported in 2009 that European paper consumption was around 80 million tonnes per year, of which 58 million tonnes was recovered and reutilised. The recycled paper mills may be struggling, however, according to Matthew Botfield, environment manager, Antalis McNaughton, variety and consumption is on the rise. “Consumption of recycled graphic paper in Europe is growing and there is now a wider range of papers available from everyday office

GREEN GUIDE

CLOSED LOOP

paper, digital, offset, pre-print, creative and coated papers,” and there is also “fresh interest from central government.” In accordance with this, Antalis has set up its own Full Cycle scheme, as the interest from both consumers and governing bodies grows. Les Fautley, category manager for business papers, Robert Horne Group says: “Procuring recycled content papers is a key part of the government’s sustainability policy and demand from purchasers within the public sector is still high. It’s a little different in the private sector; recycled papers can be perceived as more expensive and with organisations under pressure to cut costs, many are buying on price.” However, he goes on to say: “What we are seeing now is a compromise. Many of our customers opt for a lower grammage paper or one which has a lower whiteness level for example, a solution that both ticks the green procurement box and addresses financial constraints.”

Green custom There is indeed a desire for sustainably sourced products and schemes, which dealers can tap into.

Sven Schneller, HERMA MD points out that “unlike 20 years ago, consumers nowadays expect all products, not only those in niche eco-segments, to give due consideration to environmental aspects”. According to him, recent studies show that more than 70% of consumers are calling for carbon-neutral products, and 44% give preference to brands that comply with pro-environmental criteria.

Avery has run annual awareness campaign Green Office Week and its research shows that of the most common practical ways office workers were greener in the office, 69% said they recycled paper. Gregg Corbett, marketing director at Avery Office and Consumer Products, says: “It is already very clear that consumers are keen to embrace sustainability in the workplace; in today’s climate they see it as a key priority and a business objective. So pushing more sustainable lines such as recycling and recycled products is an ideal way to tap into the consumer’s agenda.” According to Shannan Hodgson, corporate affairs manager at Arjowiggins Graphic, a recent survey conducted by the company showed that 64% believe that using sustainable papers offers an effective way to portray their company in a positive light. Fifty-six per cent of the people they asked agreed that they would be increasing their use of recycled papers in the next two to three years, highlighting the importance of green stocks to CSR policy.

Virgin vs. recycled According to the CEPI, 40% of the 80 million tonnes of paper consumed in Europe is graphic paper and board products. While over 70% of the total paper consumed is utilised and recycled, the majority goes into newsprint, tissue, cardboard and carton board products, with less than one per cent recycled back into graphic papers. Botfield says: “Clearly with so much graphic paper in consumption, it is a logical step forward to recover end-of-life graphic paper and recycle it back to its original standard and by promoting the environmental virtues of recycled paper and boosting the reputations of intuitive businesses,

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we see a preference change to recycled papers in buying decisions.” However, he adds: “On the other hand, we shouldn’t ‘love the egg and hate the chicken’, so to speak and therefore we should consider both virgin and recycled papers positively as they are intrinsic to each other.” Fautley goes on to say: “Paper fibre is not infinitely recyclable and new paper made from virgin fibre has to be introduced into the cycle. Producing recycled papers consumes valuable resources and it’s a fact that recycled or not; every piece of paper consumed will eventually be disposed off.” According to him, what is more important to buyers is the reassurance that paper products have a low environmental footprint and are manufactured in an environmentally-responsible way.

“It’s no longer enough to say that the origin of fibre in products comes from either a recycled source or a well-managed forest – you need to prove it. There are a number of different labels and certificates such as FSC, PEFC and EU Flower that provide buyers with a credible guarantee,” he says.

Final thought As these schemes become more and more commonplace, it may be something customers look for in a reputable and ethically managed dealer. As Corbett sums up: “Dealers should consider that consumers are increasingly looking for peace of mind when it comes to the products they purchase. They are seeking reassurance that the everyday products they use are not harmful to the environment – this is one of the reasons recycled options are a popular choice in offices. Consumers can easily understand the process and the product’s sustainability is clearly demonstrated, making them feel that they have ‘done their bit’.” DS

Pushing more sustainable lines, such as recycling and recycled products, is an ideal way to tap into the consumer’s agenda

MANAGEMENT

MPS

Getting MPS off the ground In the second part of a Dealer Support’s two-part series on managed print service solutions, Bryony Taylor focuses on how dealers can get involved and turn MPS into a profitable business

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he shift toward managed print solutions has already happened. Major wholesalers are launching their own MPS programmes, and manufacturers are fighting to offer the best deals, quality of service and systems to dealers and their customers. Finding information and market research that says dealers should get on the MPS bandwagon isn’t hard, but the problem is, which part of the bandwagon? There are lots of offers on the table for dealers seriously thinking about setting up an MPS offering. The most important decision a prospective dealer needs to make is which one to choose, since once you’ve invested both time and money, it’s hard to get out.

There are many costs associated with setting up an MPS offering, particularly for dealers with no previous history of it. “There is the cost of conducting on-site audits, which should not be underestimated, especially when dealing with opportunities across multiple sites,” says Rob Brown, business manager for MPS at OKI. “And then there is the cost of remote device monitoring software, though this is quite a small expense when compared to revenue. The service engineers are the other significant cost which of course is an ongoing one.”

Initial implementation is best managed using proper project management skills, to mitigate any issues that crop up, and would include device testing, ensuring capability with the user’s applications and systems, Brown explains.

To make the service a success and run it efficiently, as well

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as to incorporate added value sales, dealers need to make sure appropriate and ongoing service and consumables call management and reporting is in place. Without this a dealer will face an uphill struggle to manage the service to their standards and meet customer needs proactively and in a timely way.

“Financial commitments vary from one offering to another and in this arena – unlike most – it would appear that you don’t always get what you pay for by paying out a lot to get involved in certain schemes,” explains Alex Dunn, sales director of Superstat Group. Tandem Solutions Group in Lincolnshire, which launched its MPS offering in September, has recruited Samsung UK’s head of pre-sale technical support to come onboard as the team’s MPS technical director. For MD Darren Bush, this means he will have the most reliable and trained staff ready to install his expected 1,200 machines this year alone. “We couldn’t have achieved what we have without the support of, and introductions given to me, as a member of Network Group,” he explains. “As well as being the Network Group B2B director, I am also the Samsung product champion.”

Good news stories abound. Sarah Sweet, indirect channel marketing manager for Ricoh, talks of one of their major northern IT resellers managing to rollout over 200 multifunction devices to a national retail chain. So why are businesses turning to MPS? “In the current climate, people are looking to be as efficient as possible and also

MPS

optimise their business processes,” says Phil Jones, sales and marketing director at Brother UK. “Most business owners don’t have visibility of their print costs or necessarily understand them. MPS is a great way around this – the big benefits being reduced wastage and the ability to use the most efficient device with full visibility of all printing costs.”

Jones continues explaining that for dealers looking to get into the market, the biggest opportunities are to be had in the medium-sized enterprise sector. “While the small businesses don’t necessarily generate high enough volumes of printing to make an MPS system viable, medium enterprises are where resellers can really make an impact,” he says. “These organisations are still looking for options to streamline their print processes and are most likely to welcome a printer MPS agreement for cost transparency and efficiency.”

For Dunn, the best way to implement the right system is to nominate a ‘champion’ within one’s business to own the project. “You can incentivise everyone to pass suitable leads to that person who can then convert them and share a bit of the commission between them,” he says. “You might pick someone with a technological bent and some financial awareness to manage the commercials on the contracts.”

Time is of the essence for dealers considering taking a slice of the pie. Direct MPS vendors are eyeing the

medium-sized enterprise market as their next key addressable market. At the moment, resellers have the chance to pip them to the post and put in place an MPS agreement, but this won’t last for long. Such an agreement could lead to years of future business and revenue, therefore, it is crucial to get a decent offering off the ground quickly.

Sweet says that a dealer’s best sales pitch should be that MPS equals simplicity for the customer. It controls the costs, maximizes uptime and keeps business running.

Dealers should avoid trying to get the customer to pay for anticipated usage upfront, for as she explains, “who can tell the future?”

“Dealers who are not honest about their own capabilities have run into serious trouble in the MPS arena,” says Stewart Dudding, global account manager for Kyocera Mita. “Over-promising and under-delivering, coupled with a high turnover of sales staff has led to a number of dealers getting their fingers burned. The ones that succeed are those who can make an honest appraisal of their business capabilities and fill in those gaps.”

He adds that dealers need to be consultative, learn the right questions rather than just presenting clients with their preferred answers. Dealer salespeople need to be trained to understand true MPS and be clear about what can or can’t be delivered. The rest is then down to how good they are at pitching the right product to the right

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MPS

The most important decision a prospective dealer needs to make is which MPS programme to choose client. The worst thing a salesperson could do is take a one-size-fits-all approach. Different devices and different purposes fit different customers.

The best solutions should offer a mixture of device types and services, plus recommendations on which work practices the client can adopt to streamline workflow, increase productivity, and further reduce costs. “Simple controls such as default duplex, default mono and the secure job release are all easy to implement but can have a significant effect in reducing costs,” insists Brown. MPS therefore requires a more time intensive sale, but it reaps the reward of a more secure revenue stream.

Dealers can choose to outsource, or sub-contract, an MPS offering. While this prevents the costly need to train staff, it also holds some problems. Choosing the right partner is key. Dunn recommends dealers outsource everything, unless they are already machine experts with technicians on the payroll. “The resource, experience and support that an established organisation can bring makes the whole thing almost plug-and-play for the dealer, which is usually what they want and need,” he says.

“The risk of subcontracting is in the lack of control of ‘your’ client that is maintained, but this can be easily mitigated by picking either indirect partners – not competitors or genuinely independent third parties,” argues Dudding. “The added value of this approach is firstly the lack of capital investment and secondly the kudos of working in partnership with other MPS industry players. If this is a dealer’s first foray into MPS, then being seen to partner with a major manufacturer or

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respected third party will do wonders for their client perception,” he adds.

Should a dealer choose to outsource the overall provision of the MPS, they would typically need to negotiate a ‘kick-back’ or ‘finder’s fee’, says Dave Tracey, channel MPS sales consultant of Hewlett Packard’s imaging and printing group. “This will typically be much less than the overall margin within the MPS contract, but if the dealer is seeking to gain insights into the end-toend process of an MPS sales cycle, it can be a great way to start,” he explains. “There are many dealers who can offer an MPS proposition. However the real question is what does the customer define an MPS to be? What else can you do to differentiate your proposition from that of the competition? How much business value does your customer see form what you’ve put forward? If the competing benefit is that of cost savings alone, you are unlikely to win the business.”

For the prospective MPS dealer these are crucial questions they need to ask themselves. Just like MPS solutions, each offering fits a vendor differently, if it fits a dealer’s business at all. Understanding how your business will adjust and cope with the outlay, or outsourcing, and offering the solution is obviously important. To be successful at MPS, the rule seems to be that one needs to invest properly into it – both with time and money – without this, or without being honest about your capabilities, it could be time and money wasted. Done properly, however, and MPS can result in a revenue stream akin to printing money. DS

MANAGEMENT

TOP TIPS

What should you do if you come into conflict over a contract? Commercial lawyer Stephen Sidkin gives his top tips for dealing with commercial disputes

Conflict of interest

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art of the economic cycle is that when trading conditions become difficult, the number of disputes between erstwhile trading partners increases.

A ‘who said what’ or ‘who did what’ row may seem a cheaper way out than performing a contract, whatever type of contract it is – agency, distributorship, supply, manufacturing, or just sale. But when a dispute gets serious, the first steps you take can have a profound impact on how the dispute unfolds and who will achieve the better outcome irrespective of whether they are the innocent party or the wrongdoer.

So what should you be thinking of as soon as a dispute arises?

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TOP TIPS

1. BE CLEAR ABOUT YOUR OBJECTIVE

It is important to remember that disputes are unpredictable.

But also you need to bear in mind that everyone involved will suffer some cost and most disputes end in compromise, not outright victories.

Therefore, even if you think you have a watertight case, when formulating your objectives it is better to think in terms of a range of possible outcomes rather than one fixed outcome.

Work out what your business can and cannot afford in terms of management time and money, which problems it can and cannot tolerate, and make sure they are all accommodated. If the demands of your business do not fall within the range of realistic outcomes then you should probably rethink your approach to the dispute entirely.

2. DEVELOP A STRATEGY

Take time to think about any aspects that you might be able to turn to your advantage against your adversary. For example, some opponents will be sensitive to costs, delays or reputational damage. Meanwhile others will be dependent on preserving relationships with you or your allies.

Less organised suppliers or buyers may be bad at producing reliable evidence to back up their case, possibly because they do not keep proper records or because their witnesses are unreliable. The possibilities are endless. Think about what applies to your particular case and work them into an overall strategy. But don’t forget to think about what can be used against you.

Also have regard to the post-agreement period. How will you source products? How will you get orders from the market?

The decision to involve your business in a dispute should always be commercially driven; Only get involved if you will be in a better position if you do

3. REMEMBER THE CONTRACT – AND THE LEGISLATION

Although it should be obvious, many businesses forget that the starting point is to check what the contract between you and the other party actually says. The fact that there is no written document is usually irrelevant – most contracts can be made orally or even by conduct. If it is not in writing, then working out what the contractual terms are may take a bit more work but it can be done and will be worth the effort.

Most contracts have clauses that govern duties, breaches, damages, termination, notice periods and the mechanism for resolving disputes. Also bear in mind that some clauses will survive termination of the contract, such as restrictive covenants which can prevent parties from competing or from soliciting employees.

If a particular piece of legislation (for example, the Commercial Agents Regulations) applies or might apply, be

sure to check how they will impact on you and your opponent. Beware of the legislation’s pitfalls, such as the unenforceability of certain clauses and the need to notify claims. Equally beware the situation where the laws of another country apply – such laws may provide protections of which you are unaware.

4. STRENGTHEN YOUR POSITION – YOUR INITIAL REACTIONS MATTER

The steps you take immediately after a dispute arises can influence or even determine the outcome. For example, where you and the other party simultaneously accuse each other of breaching the contract, how the parties respond and whether or not they continue to perform the contract can have dramatic legal consequences; where there is doubt about how or where a dispute should be fought, being the first to act (for example, by commencing proceedings in the courts of a preferred country) can give you a massive advantage over your opponent; how documents are managed and created once a dispute has arisen can determine whether or not they will be admissible as evidence. This can alter the course and outcome of a dispute.

Getting these matters right will also improve your negotiating position. However, bear in mind that they can be tricky to handle correctly as complex legal rules apply, so it’s best to seek professional assistance, especially when there is a lot of money at stake.

5. BE REALISTIC ABOUT THE COST

The decision to involve your business in a dispute should always be commercially driven. In other words, only get involved if the likely result is that you will be in a better position financially than if you do not do so; try to keep any personal animosities to one side.

Calculate at the outset what the full cost to your business is likely to be. That’s not always as easy as it sounds. Apart from legal costs and the risk of having to pay your opponent if you lose, there are usually other, less visible costs to consider such as lost revenue (for example, caused by employee downtime); increased future costs (for example, higher insurance premiums); and indirect losses (for example, damage to your reputation). Some of these are difficult to identify and value, so take some time to think them through.

6. DON’T MISS A GOOD SETTLEMENT

As many commercial fights have shown over the years, disputes are risky, expensive and unpredictable. They are also stressful and distract you from your proper business. In many cases, the sooner you end the dispute the better it will be for you and your business - provided of course the terms are acceptable. New possibilities for settlement tend to open up as a dispute develops. A commercially savvy litigant will always have one eye on settlement and will favour a reasonable, timely settlement over a risky day in court. DS

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FINAL WORD

Wood from the trees Dave Jones, group marketing director, Premier Paper Group

Contrary to many beliefs, the demand for paper and timber products drives the growth of forests

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JULY 2011 www.dealersupport.co.uk

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woodland walk in early spring is one of life’s simple free pleasures. It is easy to see the structure of the wood at this time of year when there are no leaves to obscure the view through the trees. But the atmosphere is one of promise; drifts of snow drops punctuate the leaf litter and a carpet of green bluebell leaves push up in preparation for the indigo spectacle to follow later in the season. A few years ago, with kids and dogs in tow, I set off for just such a walk, near to my home in Worcestershire. Before entering the wood, I stopped to read a sign that had been prominently displayed for all to see. At the very least, I expected it to be list of dos and don’ts, or even perhaps for it to contain phrases like ‘Enter at your own risk’, ‘Private property; Keep out; Trespassers will be shot, hung, drawn and quartered’ (prosecution is not an option for the civil offence of trespass) – instead the sign gave me information about the origins of the wood and in big bold letters: ‘Welcome to our woodland, please enjoy it – The Woodland Trust’. This prompted me to find out more about the organisation behind this refreshing approach.

Now as a corporate partner of the Woodland Trust, the Premier Paper Group has signed up to the newly launched UK Woodland Carbon Code, the first of its type in the UK. The Woodland Carbon Code provides a best practice guide for organisations wishing to create woodland to remove carbon dioxide from the atmosphere. Woodland carbon projects also bring many additional benefits to the local environment, people and wildlife. Over the course of the next 12 months Premier hopes to remove over 810 tonnes of CO2 from the air, locking it into the leaves, wood and roots of native British trees, creating and maintaining more than 30,000 square metres of woodland in the UK. Using guidelines and figures from The Carbon Trust and DEFRA, Premier has calculated the amount of CO2 the business emits per tonne of paper sold. Working with the Woodland Trust and its Woodland Carbon scheme will allow Premier to capture amounts of CO2 equivalent to those generated from the distribution of its MultiCopy range and the newly launched Evolution recycled range. This carbon capture programme serves to enhance the green credentials of both products.

In managed forests, for every tree harvested at least three others are planted; so it may seem counterintuitive but paper does in fact make trees. The European Environment Agency figures confirm that 33% more trees are planted each year compared to the number harvested. So contrary to many beliefs, the demand for paper and timber products drives the growth of forests. It is estimated that the amount of forested land throughout Europe has increased by 30% in the last 50 years.

Here in the UK, our forestry industry is not as extensive as many other countries and tree cover is estimated at being somewhere in the region of 12%, significantly below that of the rest of Europe. Paper is one of the most widely used woodland products in today’s modern world and paper making remains amongst the most sustainable industries in existence, so it seems logical that we should choose to work with an organisation like the Woodland Trust, as it replants and conserves UK native woodland, creating habitats for many diverse plant and animal species and providing woodlands that we can all enjoy. DS