OPI 282 Sept 2018 A

BIG INTERVIEW

Connecting the

business products world

Mike Gentile, Independent Stationers September 2018

THE FROG IS BACK… TO FIND OUT MORE, GO TO WWW.OPI.NET/FROGREVISITED

INSIDE THIS ISSUE l Staples ups the ante on Essendant l The Amazon pricing myth l Cyberattacks: it could be you l The appeal of jan/san l HP Inc buys Apogee l How to get fit for digital l Climb of Life preview

Special Issue

JAN / SAN

CONTENTS 14 Big Interview Mike Gentile talks about IS’ big-tent philosophy 20 Hot Topic Cyberattacks are on the rise and no one is safe 34 Spotlight ADVEO ready to move on 36 Advertorial A century of success for Victor Technology 39 Review: ABC All the action from Texas 40 Review: NAOPA The winners revealed 44 Preview: EPIC What’s on at the final EPIC? 46 Preview: Climb of Life The £1 million challenge

Big Interview: Mike Gentile, Independent Stationers Mike Gentile has been championing the cause of independent dealers for the past 15 years at Independent Stationers (IS), 12 of those at the helm of the dealer group.

Never shy to say it as he sees it, Gentile is acutely aware not only of the flaws of the opposition – whoever that might be these days – but also of the industry as a whole and, refreshingly, his own group and its members.

He might not have all the answers, Special but Issuehe always offers plenty of food for thought. JAN / SAN HOT TOPIC: CYBERATTACKS – IT COULD HAPPEN TO YOU

SPECIAL

Special Issue

JAN / SAN 24 Category Update The importance of technology in jan/san

Special Issue

29 Research Raising hygiene awareness

JAN / SAN

30 Case Study Dealers embrace the jan/san opportunity

49 Preview: ISSA Show North America Cleaning in a nutshell

Special Issue

BREAKROOM

SPECIAL

REGULARS 5 Comment

Special Issue

6 News

September 2018

According to cybersecurity experts, the threat from cyberattacks is growing, with hackers continually finding new and more sophisticated ways to gain access to data and/or disable a computer or network. There are generally three main types of attack: malware, phishing and Denial of Service. The way they are able to spread is becoming easier all the time, thanks to the Cloud, Bring Your Own Device and gadgets connected to the Internet of Things (IoT).

Gartner predicts that in just two years, there will be 20 billion internet-connected things. A recent survey by the research firm found that almost 20% of organisations had at least one IoT-based attack in the past three years. As if all this information wasn’t scary enough, according to Cybersecurity Special Issue Ventures, the damage from cyberattacks by 2021 will BREAKROOM cost around $6 trillion annually.

50 How to... ...get fit for digital business

BREAKROOM

52 5 minutes with...

Regina Henrich

SPECIAL

54 Final Word Debbie Nice

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COMMENT The OPI team EDITORIAL Editor Heike Dieckmann +44 (0)20 7841 2950 heike.dieckmann@opi.net Deputy Editor Michelle Sturman +44 (0)20 7841 2942 michelle.sturman@opi.net Reporter Lily Elden +44 (0)20 7841 2952 lily.elden@opi.net OPI Special Correspondent Andy Braithwaite +33 4 32 62 71 07 andy.braithwaite@opi.net Freelance Contributor David Holes david.holes@opi.net

SALES & MARKETING Chief Commercial Officer Chris Exner +44 (0)7973 186801 chris.exner@opi.net Head of Media Sales Chris Turness +44 (0)7872 684746 chris.turness@opi.net Director of Growth Services Jeremy Hughes +44 (0)7807 810617 jeremy.hughes@opi.net Digital Marketing Manager Aurora Enghis +44 (0)20 7841 2959 aurora.enghis@opi.net

EVENTS Events Manager Lisa Haywood +44 (0)20 7841 2941 events@opi.net

PRODUCTION & FINANCE Studio Joel Mitchell +44 (0)20 7841 2943 joel.mitchell@opi.net Operations & Production Eda Sismanoglu +44 (0)20 7841 2950 eda@opi.net Finance Kelly Hilleard +44 (0)20 7841 2956 kelly.hilleard@opi.net

PUBLISHERS CEO Steve Hilleard +44 (0)20 7841 2940 steve.hilleard@opi.net Director Janet Bell +44 (0)20 7841 2941 janet.bell@opi.net Executive Assistant Debbie Garrand +44 (0)7718 660249 debbie.garrand@opi.net

I

Glass half full or half empty? You decide

’m writing this column not at my usual desk in London in the UK, but in San Antonio, Texas, where SP Richards’ (SPR) 20th Advantage Business Conference (ABC) has just drawn to a close. For a review of the ABC and the North American Office Products Awards (NAOPA), see pages 39, 40 and 42.

On the NAOPA note, many congratulations to all the winners, including SPR’s very own Jim O’Brien who walked away with the Industry Achievement award to a standing ovation from over 2,000 delegates and SPR staff in the opening session on the first full day of the event.

Every ABC – every event in fact – highlights the many challenges in our industry. SPR is right in the middle of its own big challenge, of course, as President/CEO Rick Toppin wryly pointed out, although disclosure rules prevented him from saying too much about the current state of play. The goalposts are moving slowly, but they’re definitely shifting and currently Staples is the most likely to score the Essendant goal (see page 6).

The goalposts are moving slowly, but they’re definitely shifting and currently Staples is the most likely to score the Essendant goal On a broader scale, cybersecurity has become a real challenge and contrary to popular belief, it’s not just the big guns that are affected (see page 20). And talking of misconceptions, Amazon Business is not by default the best deal to be had, as Rick Marlette found out (page 9).

Cost is always a major challenge, be that cost of goods, cost to serve or just plain lack of resources. On that last point, cost is one of the reasons why this October we’ll see the final EPIC show (page 44) – vendors do not have the means to support a myriad of industry events anymore. Take a look at our Big Interview (page 14) to read Mike Gentile’s views on EPIC, a potential industry week and many of today’s challenges.

But opportunities abound too. You only have to look through this special jan/san issue of OPI to see the potential of this particular category.

Lastly, OPI welcomes Chris Exner to the team as its new Chief Commercial Officer.

Many of you will know Chris from his Esselte (now ACCO Brands) days and appreciate just how well placed he is to drive growth at OPI in the areas of membership and subscriptions, research and executive recruitment as well as in our events portfolio. Opportunities indeed.

HEIKE DIECKMANN, EDITOR Have a great month.

Twitter: @opinews Linkedin: opi.net/linkedin Facebook: facebook.com/opimagazine App: opi.net/app

Connecting the

business products world

Office Products International Ltd (OPI) 2nd Floor, 112 Clerkenwell Road London, EC1M 5SA, UK Tel: +44 (0)20 7841 2950

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5

NEWS

Analysis:

Staples ups the ante on Essendant

After several weeks of apparent inactivity, Staples has reaffirmed its interest in Essendant When Essendant reported its Q2 results at the end of July, it revealed that it had not engaged with Staples since the latter had made a proposal in mid-May to acquire the wholesaler for $11.50 per share (see Analysis, OPI June 2018, page 6). Nor had Staples signed a confidentiality agreement that would enable the two parties to engage in formal discussions.

Why was Staples playing this waiting game?

Was it vying for other major dealer acquisitions after snagging US mega-dealer HiTouch Business Services at the end of June? Was it waiting for Essendant to report its Q2 results?

Was it just that Essendant wasn’t returning its calls? Or was its original offer just one massive disruptive manoeuvre?

SIGNED, SEALED, DELIVERED Well, we can now rule out a bluff after Staples’ 31 July letter to Essendant CEO Ric Phillips which reaffirmed its previous proposal to acquire the 89% of Essendant shares that it doesn’t already own for $11.50 per share in cash. Staples even went so far as to deliver a draft merger agreement to Essendant and said that it would refund the $12 million break-up fee that Essendant would have to pay to Genuine Parts for pulling out of the SP Richards (SPR) merger.

The Staples letter – signed by Sycamore Partners co-founder Stefan Kaluzny – reiterated several points made by the reseller back in May. These included a number of assertations: The Staples offer of $11.50 per share in cash is superior to and provides more certain value to Essendant’s shareholders than the proposed merger with SPR. l After engaging in discussions with Essendant, Staples believes that it could increase its offer “significantly above $11.50 per share”. l Essendant’s proposed transaction with SPR is “fraught with substantial [...] risk that imperils

www.opi.net

l

6

shareholders’ value”, and provides no strategic rationale to arrest the downward sales pressure in core office supplies. l Regulatory approval is more likely for a Staples/ Essendant combination than it is for an Essendant/ SPR merger.

Until 31 July, Essendant’s board of directors had steadfastly continued to support the proposed merger with SP Richards, maintaining that Staples had not taken steps to sign a confidentiality agreement.

An Essendant regulatory filing on 7 August finally confirmed that both parties had entered into such an agreement as of 3 August. This has enabled Staples to engage in discussions with Essendant’s management, board, shareholders and other stakeholders as part of a due diligence process.

How long this could take is anyone’s guess. When Staples’ owner Sycamore amassed a near 10% stake in retail group Express in 2014, it took more than six months to complete due diligence before pulling out of the deal altogether. Sycamore also has a record of performing due diligence and then lowering its original offer price.

Nevertheless, at the time of writing, it seems increasingly likely that it will ultimately be left up to shareholders to decide whether to take the Staples cash or wait for gains to materialise from the SPR merger. That’s assuming the latter deal actually receives regulatory approval.

ESSENDANT ALMOST ACQUIRED IN 2017 Regulatory filings by Essendant in relation to its proposed merger with SP Richards show that the wholesaler’s board of directors was considering selling the business as far back as July 2016. It even entered into discussions with a ‘Party A’ in September 2016 which culminated in February 2017 with Party A sending Essendant a preliminary offer to acquire the wholesaler for $18 per share.

Following a due diligence period of almost two months, in April 2017 Essendant sent Party A a draft of a merger agreement. Two weeks later, Party A told Essendant it was no longer interested in acquiring it.

No explanation for this withdrawal by Party A was given, nor is it clear whether Party A was a trade or a financial buyer. Shortly after the collapse of this proposed transaction, then-CEO Bob Aiken left Essendant, something that probably wasn’t a coincidence.

HP Inc has acquired UK-based managed print services company Apogee, a profitable office equipment dealer with a proven track record of growth, which includes numerous European acquisitions of its own over the past few years.

As Europe’s largest independent provider of print, outsourced services, and document and process technology, HP said Apogee brings with it strong capabilities in contractual printing services and solutions, an experienced leadership team and access to SMB and mid-market customers. The £380 million ($367.7 million) deal is part of HP’s strategy to enhance its A3 and A4 portfolio, build differentiated solutions and tools to expand its managed print services, and invest in its direct and indirect go-to-market capabilities.

The Apogee purchase builds on the recent acquisition of Samsung’s printer business, and the launch of A3 and A4 multifunction printers based on unique IP and value-added services and solutions. Following the close of the deal – expected at the end of 2018 – Apogee will operate as an independent subsidiary of HP, with a governing board of HP executives and current Apogee joint CEOs Jason Collins and Robin Stanton-Gleaves.

HP said it expects to consolidate Apogee’s results within its Print segment and for the deal to be accretive by approximately a penny on a non-GAAP basis in the first full year after close.

Complete Business Solutions breaks £100 million barrier

Fast-growing UK independent office supplies dealer Complete Business Solutions has announced two further acquisitions, just weeks after the purchase of Office Gold in early July.

Complete has included IT and technical services company Simply Outsourced and managed services provider Anglo Office Group in its portfolio. The two companies add another £14 million to its total, taking Complete to over £100 million ($131.5 million) in annual sales and 20 locations throughout the UK. Founded by David Chicken and Clive Moseley, Simply Outsourced has a current run rate of £6 million. While Chicken will join the executive team at Complete, Moseley will retire. Anglo Office Group, meanwhile, with sales of £8 million, is the most recent acquisition. Its Group Managing Director Gary Napthali will now become Complete Business Solutions Regional Managing Director.

Complete said the conclusion of an investment from Abercross Holdings in late December 2017 is helping to expedite its strategic plan to build up the company over the next five years.

IN BRIEF Essendant transfers website software ownership Technology solutions company Enavate has announced it now has full website software ownership of Essendant’s former subsidiary MBS Dev (bought by Enavate in 2014). The completion of the deal allows Enavate to take a leadership position in providing end-to-end e-commerce solutions for customers.

NEWS

HP Inc buys Apogee

New appointments at Exertis European technology distributor Exertis has announced the appointment of Tim Griffin as Divisional Managing Director of DCC Technology and Managing Director of the Exertis Group. He will take on global responsibility for the strategic direction and performance of Exertis.

In addition, Gary Fowle will lead the next phase of Kondor’s integration as head of the company. He has been working with Kondor CEO Beatrice Lafon, who led the sale of the business and initial integration following its acquisition by Exertis in July.

Expansion for ALSO European IT and consumables distributor ALSO has acquired Slovenia-based DISS, a distributor of software and IT equipment, for an undisclosed sum. The transaction includes DISS’ two subsidiaries, VAD and Marmis.

The distributor has also appointed Philipp Koch as SVP of E-commerce. He will be responsible for the company’s e-commerce business and will also remain head of ALSO’s Berlin office.

September 2018

Mac Papers continues packaging expansion US-based paper distributor Mac Papers has strengthened its portfolio with the acquistion of packaging and facility supplies distribution business Wilkerson Packaging. Wilkerson’s facility in Atlanta (GA) will no longer be in service; instead the company will operate from Mac Papers’ branch in the city.

Wilkerson employees have joined Mac Papers, including founder Paul Wilkerson, who will help ensure a smooth transition.

7

NEWS

Analysis: Whiteway optimistic for future of SPOT Group The onboarding of the Advantia supply contract at the end of January marks a positive development in Spicers’ sales, but many challenges remain for Jeff Whiteway Following the release of the annual results of Better Capital – owner of the Spicers-OfficeTeam Group (SPOT) – which described FY2017 sales declines at Spicers as a “major issue”, OPI spoke to SPOT Group CEO Jeff Whiteway.

Whiteway said he was “surprised” to read this as the wholesaler’s sales at the start of 2018 had increased by 14% versus 2017, largely due to the award of the delivery contract for dealer group Advantia which took effect on 31 January.

SPOT’s annual sales figure of £269 million ($354 million) did not include Spicers’ sales to OfficeTeam, which amounted to £25 million in 2017. Therefore, Spicers’ 2017 sales (including its OfficeTeam business but not including Spicers Ireland) came in at £151 million, a year-on-year decline of just 2%. However, it should be noted that Spicers’ sales to OfficeTeam in 2017 rose significantly from £15 million in 2016. Excluding OfficeTeam, Spicers’ year-on-year sales fell by around 9%, with a pre-tax loss of £1.8 million compared with a loss of £3.9 million in 2016.

www.opi.net

Both Spicers and OfficeTeam appear to have steadied the ship

8

FACING CHALLENGES While the bottom line improvements are encouraging, Whiteway is under no illusions about the challenges still facing Spicers. The underlying margin trend is still downwards, with the cost base also experiencing increases.

Whiteway described the start of the Advantia business as “a cliff edge” and admitted that Spicers had to “throw the cheque book” at servicing this contract in its early stages, deploying extra delivery vehicles and staff to maintain service levels.

“Fortunately, thanks to a supportive investor and cash coming in from OfficeTeam, we were able to do that,” he explained. “We have spent the past four years honing service and the last thing I wanted was for these levels to drop; the memory of poor service remains with dealers for a long time.”

According to Whiteway, many of those extra Advantia-related costs had been reduced by the end of June and he now expects the margin run rate to be back on forecast in the second half of the year.

With profit levels not being helped by organic top line growth, the SPOT CEO said that Spicers is “nickel and diming” on every aspect of its business to see where it can maintain service levels, but at a much lower cost base.

FINE-TUNING Turning to the core OfficeTeam business, 2017 was a challenging year with sales down 1.4% versus 2016 to £138 million, and gross margin falling 30 basis points to 29%. Margins are under pressure as customers look to reduce their indirect costs, noted Whiteway.

For the OfficeTeam Group (which also includes Oyez Professional Services), full-year sales were £143 million while EBITDA fell by around 20% to £8 million – although a number of one-off costs relating to the integration of the warehouse network meant that underlying EBITDA was around £9 million.

Whiteway admitted it had been a “difficult” three years for OfficeTeam after having Spicers “thrust upon the management team”, but said that the reseller’s performance was now improving after fully integrating with the Spicers distribution network. A new three-year strategic plan has been devised for OfficeTeam which Whiteway described as “exciting”.

Presumably, that plan will include further acquisitions to strengthen adjacent categories and services, similar to the £15.2 million revenue acquisition of UK business supplies dealer ZenOffice in April. Whiteway said this transaction demonstrated the continued support of Better Capital to the SPOT business.

Both Spicers and OfficeTeam appear to have steadied the ship in the past 18 months or so.

Nevertheless, there are certainly stiff challenges ahead for SPOT to profitably grow each business in the current market environment, probably more so at the Spicers wholesaling arm which just about edged into the black in terms of EBITDA last year. It will be interesting to see whether the current merchandising and SKU overhaul, coupled with its recent supply chain improvements and future plans, will make a significant impact.

Marlette study challenges Amazon pricing myth

A recent pricing comparison carried out by OPSoftware’s Co-owner Rick Marlette in the US suggests that it may be cheaper for local governments to purchase supplies from an independent dealer rather than Amazon Business.

Marlette was asked to conduct the price comparison by the Institute for Local Self Reliance (ILSR) as part of the organisation’s report on Amazon Business’s US Communities contract. His research looked at the cost for 57 items purchased by a California county schools district from an independent dealer over a two-week period in January 2018. The findings show that the independent dealer provided the lowest overall price for these items purchased by the schools district: $1,205. For Amazon Business Marketplace, the total price was $1,282 – 6% higher – while for Amazon Business Prime, it was $1,328, which is 10% higher.

Interestingly, while the overall basket of products was cheaper via the dealer, it was Amazon that offered the lowest price on the most number of SKUs – 32 out of 57 – indicating that the dealer was more competitive on items that the schools district purchased most frequently. The analysis also found the dealer provided superior shipping terms with next-day delivery, rather than the two-day delivery on Amazon Business Prime items and up to two weeks for Amazon Business Marketplace products.

“While [these findings] may be counter to the common assumption, it’s not actually that surprising when you consider that independent office supply dealers are buying in significant volume, often via group purchasing cooperatives, and many have achieved significant efficiencies through years of operations,” Marlette wrote in his conclusion.

He added: “Amazon’s pricing is dynamic and can vary day by day.

This comparison was a snapshot taken at a single point in time. In theory, a purchaser could spend days and days on Amazon Business checking every item, waiting for a lower price, while weighing delivery times against the needs of the organisation. There is, of course, a significant cost to doing this.

“Do most independent office supply dealers generally beat Amazon Business pricing? While the dealer in this study is typical of similar dealers around the country, it’s not possible to say for sure. However, one thing should be crystal clear: the claim that Amazon Business has the lowest overall price is false, and any assertion to the contrary is not based on fact.”

Marlette’s full report can be accessed at http://www.opsoftware. com/OP/docs/AmazonPricingComparison.pdf.

Acquisition for Bluefish UK-based independent dealer Bluefish has strengthened its portfolio with the acquisition of fellow Northampton-based Halcyon Office Solutions. The deal is the fourth for Bluefish and part of a wider growth plan which has seen the group expand across the East Midlands and into East Anglia.

Halcyon said it had struggled to keep up with the change of pace in the office supplies industry and recognised the need for a wider portfolio to successfully compete. As such, it approached Bluefish about a possible acquisition.

The deal gives Bluefish new clients, staff and assets, and a route into two new markets – education and computer hardware. Details of the transaction were not disclosed.

Bluefish Managing Director Mark Heath commented: “We see Halcyon as a substantial asset purchase which has complete synergy with the Bluefish group.”

NEWS

OPI welcomes Chris Exner

WORKPLACE

EQUIPMENT CAN BE

35.2% OF JANITORS AND BUILDING CLEANERS ARE WOMEN

400

X

DIRTIER

THAN THE AVERAGE TOILET SEAT

Baccash sells Office 1 OPI has strengthened its senior management team with the appointment of a respected and highly-experienced executive from the OP industry.

The newly-created position of Chief Commercial Officer at OPI will be occupied by Chris Exner, who has spent almost his entire career in sales and market development within the OP sector, including 17 years at Esselte – now part of ACCO Brands – where his most recent position was VP Sales Asia. Prior to that, he held a number of roles with increasing responsibility at Esselte, including VP Sales Europe, VP Western Europe & Managing Director UK, and VP European Accounts.

As Chief Commercial Officer, Exner will have lead responsibility for delivering growth in several key areas of the OPI business, such as events, where the company has identified opportunities to diversify and expand its existing portfolio globally.

He will also oversee a significant drive to deliver growth in memberships and subscriptions, and in service offerings such as research and executive recruitment.

Franchise office products retailer Office 1 has announced the sale of its assets and business to Panda, a cooperative based in Sofia, Bulgaria. The sale includes trademark licences and all master franchise agreements worldwide.

Office 1 was founded in 1993 by Mark Baccash who, after 25 years at the helm of the company, is easing into retirement. He began working with Panda in 1997, when it became Office 1’s master franchisee for Bulgaria. According to Baccash, Bulgaria has always been the most successful Office 1 market, with Panda achieving a market share of 40%, sales of €35 million ($41 million), and brand awareness in the high nineties.

The company will be run under the management of Elka Kamenova, Aleksi Popov and Georgi Raitchev, all Panda shareholders who have overseen its expansion over the past two years. This has included launching a new logistics centre and growing its assortment to over 40,000 items to serve its 50,000 business customers.

ChairPro, Office 1’s online shop of ergonomic furniture solutions with websites in Bulgaria and Greece, and a showroom and headquarters in Sofia, is not part of the deal and will continue under the leadership of former Office 1 Managing Director Radostin Kirilov. Baccash said he will remain as Chairman and majority shareholder of ChairPro.

Young Stationers’ winner announced

The Stationers’ Company has announced the winner of the Young Stationers’ Awards 2018, presenting the award to Dr Shane Tilton, Assistant Professor of Multimedia Journalism at Ohio Northern University. The judges recognised his commitment to both his subject and his students, while also acknowledging the number of awards that he has received from within the industry. In a change from previous years, the judges also gave awards recognising achievements in five sectors of the communications and content industries.

The winners of the Sector Awards were: • Books and Archiving: Marie Canon, Knowledge and Information Officer, Clifford Chance • Journalism and Communications: Salma Haidrani, Freelance Journalist • Office Products and Supplies: Callum Edwards, Digital Marketing Manager at Prima Software • Print, Paper and Packaging: Julie Chen, Co-Founder and Director at The Cheeky Panda • Publishing, Digital and Design: Nina-Sophia Miralles, Co-Founder and Editor at Londnr Follow us on Twitter @opinews

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BIRD FEED

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@SM_Distribution Might #jansan distributors eventually start selling #cleaning products that can be used by #drones? One startup is using the technology to clean #windows

@janitor_mag A leading jan/san manufacturer and a champion of zero waste solutions teamed up to teach one California grade school how to better dispose of their lunchtime waste

@GetGarveys Food for thought: It costs less per unit to buy 10 boxes of paper towels, than to buy one roll at a time. #jansan #officesavings #officetips

@OPSoftwareLLC There once was a land called Britain. With Bezos its people were smitten. They bought and they bought, until they had naught, will this be their history written?

WHO’S WHO IN OP

UK trade association BOSS held the first meeting of its new Single Use Plastic Packaging special interest group at the end of July. The event was organised after BOSS was asked by members to raise awareness of the issue within the industry to encourage best practice in all areas of the supply chain.

Attendees included representatives from manufacturers, wholesalers, dealer groups and special interest groups. The agenda comprised a wide-ranging discussion on topics including recyclability, the capturing of relevant data, modern day slavery, and the impact of demand for paper products on pulp prices.

The group agreed that its terms of reference would include focus areas such as: • Defining what the industry considers single use plastic packaging to be, in transit as well as for product.

• Educating themselves and others on information and issues relating to this area of public concern.

• Standardising where possible to allow for common data gathering and reporting and liaising with the BOSS Synergy Standards committee.

• Improving by encouraging compliance with agreed best practice.

• Lobbying by using industry and government contacts to influence both legislation and the industry as a whole.

IS launches digital product marketing program US-based dealer group Independent Stationers (IS) has announced its Boost Product Marketing Program, which has been developed to replace its traditional print catalogue in 2019.

IS said it will also provide vendor partners with the opportunity to enhance the visibility of key branded products on its shareholders’ websites. In addition to working with manufacturers, IS and wholesaler SP Richards have reached an agreement whereby SP Richards will help IS shareholders to implement Boost on their websites that lead with its content.

In other news, the group has elected its board of directors and officers for the next year, including Tonya Horn – the first woman to serve as Chairman of the board.

Elected to three-year terms were: • Terry King – Office Products, Batesville (AR) • Jordan Kudler – Legacy Office Solutions, Brooklyn (NY) • Tim Triplett – Triplett Office Essential, Des Moines (IA) Officers elected by the new board for 2018-2019 were: • Chairman – Tonya Horn, Rogards, Champaign (IL) • Vice Chairman – Jordan Kudler, Legacy Office Solutions, Brooklyn (NY) • Treasurer – Tim Triplett, Triplett Office Essentials, Des Moines (IA) • Secretary – Brian Kerr, Kerr Office Group, Elizabethtown (KY)

opi.net poll What has been the biggest factor in successfully growing the jan/san category?

Hiring product experts

27%

Greater product knowledge (0%)

33%

40%

2018 has seen Jaime Alverde Losada take over from his twin brother Ángel as CEO of Office Depot de Mexico – the multichannel, multinational company owned by Mexican Holding Grupo Gigante.

The business operates in nine countries: Mexico, Guatemala, Honduras, El Salvador, Costa Rica, Panama, Dominican Republic, Colombia and Chile, and includes more than 580 outlets operating under the Office Depot, Casa Marchand and RadioShack Mexico brand names. 2018 saw the opening of an additional 15 regular and express stores.

Alverde Losada says the focus so far this year has been on its e-commerce channel and improving inventory rotation. The company has also recently implemented the Oracle Retail software solution to support its move towards to a broader omnichannel services and products company.

IN BRIEF New appointments for Highlands US sales and marketing agency Highlands has announced Kristin Stevens as VP E-Commerce and Darren Laycock as Territory Sales Manager for Western Canada.

Stevens has worked for Highlands for three years, most recently as Director of National Accounts, while Laycock has more than 30 years of sales account management experience and joins from Dynamic Marketing where he was President.

DCC continues global growth DCC, parent company of technology distributor Exertis, has announced that DCC Technology has acquired Stampede.

A leader in ProAV distribution, Stampede operates internationally, with offices in the US, Canada, Europe, Asia and Australia. It has a global network of 20,000 resellers and more than 150 vendor partners.

Kyocera America appoints new CEO Document solutions company Kyocera America has appointed Oscar Sanchez as CEO. Sanchez has worked for the company since 1996 and became General Manager for Spain in 2002 before relocating to the Netherlands to head both the Corporate Sales and Marketing Division. Kyocera Spain, meanwhile, has appointed current Director of Innovation & Technology José Luis Alonso as General Manager.

September 2018

Sourcing the right products at the right price

Customers looking for single source solutions

Top 100 new entry 2018: Jaime Alverde Losada

NEWS

BOSS tackles plastic issue

11

BIG INTERVIEW

Independent Stationers’

BIG-TENT

philosophy

The US business supplies industry is in a real state of flux – no doubt about that. Keep calm, stay focused and look at the bigger picture is Mike Gentile’s attitude, as he tells OPI’s Steve Hilleard in this free and frank interview

M

www.opi.net

ike Gentile is what you might call an outspoken proponent of the independent dealer community (IDC).

He’s been championing their cause for the past 15 years at Independent Stationers (IS), 12 of those at the helm of the dealer group.

Never shy to say it as he sees it, Gentile is acutely aware not only of the flaws of the opposition – whoever you might put in that camp in this fast-changing business environment – but also of the industry as a whole and, refreshingly, his own group and its members.

He might not have all the answers, but the following pages should certainly offer plenty of food for thought.

14

OPI: Let’s start with an overview on the group to give some background perspective on IS – it’s been eight years since we last interviewed you.

Mike Gentile: Sure. IS has experienced significant change and has had to adapt to the new realities in our market. One of the core tenets that came from much soul-searching is the need to create a ‘big-tent philosophy’. We don’t want to be a one-size-fits-all dealer group and it’s not what the market requires.

So that’s what we’ve done – created more value and expanded our dealer group to include various levels of membership to meet the needs of different types of dealers and distributors.

Right now, we have a little over 400 members consisting of shareholders that own the cooperative, as well as several affiliate types, including our Access dealers – non-shareholders, typically small to mid-sized dealers.

11 years ago Pinnacle Affiliates was formed for larger dealers and that affiliate group has been extremely successful. As a result, we’ve been able to include these very talented dealers in our programmes. They have been very collaborative with our entire membership.

We also established a relationship with AFFLINK and EdMarket and have a number of jan/san and school supply distributors as members of IS. We further created an affiliate programme for Base Supply Centers which continues to grow.

The most recent affiliate group under the IS big tent is IS Contract. We formed a separate company and developed an entire programme to attract contract

furniture dealers that were formerly part of OFUSA. We have 36 affiliates today and expect to grow that to 50 by year-end.

Overall, Independent Stationers is far from what the name implies. In fact, our board is currently undertaking a group rebranding project that will better describe what we actually do – more details on that soon.

OPI: You’ve done that before, haven’t you? You went from is.group to wanting to be known as Independent Stationers. I always found that a little strange.

MG: Yes, although our legal name has always been Independent Stationers. We had gone to market as is.group, but when we developed our national accounts programme, we had to come up with a descriptive, user-friendly go-to-market brand.

Is.group did not depict what we did and frankly, neither does Independent Stationers.

The word ‘stationers’ is a bit dated and we need to rebrand to better position ourselves in the market for what our members actually do.

OPI: You mention over 400 members right now – that’s up from about 285 when we last spoke.

Has the growth come predominantly from those AFFLINK and EdMarket members?

MG: No, not really. Dealers have also joined us from other buying groups or were previously unaffiliated.

BIG INTERVIEW Mike Gentile

IS has experienced significant change and has had to adapt to the new realities in our market Many of our Access dealers – we have nearly 90 now – were not members of other groups and they saw value in our programmes and services. Then you can add in all the other affiliate levels I’ve just referred to.

OPI: What does that number equate to in terms of combined member revenues?

MG: Combined revenues are in the region of $4.1 billion. That’s big, but is due to many of the distributors operating in multiple industries, in addition to just traditional OP.

OPI: No plans to return to operating your own warehouse then?

MG: Interesting you should say that. With all the disruption and dysfunction occurring in our industry right now, there have been whispers that, well, maybe it’s time that the IDC in the US needs to get into distribution and gain greater control of their own supply chain.

OPI: OK. We’ll get to the wholesale challenges in a moment. For now, how would you describe the current state of the IDC in the US? MG: The two are completely interlinked, of course, and everyone is very fixated on what will happen in the wholesaler community. What I would say is let’s just keep calm and remain focused on our business.

I have tried to reinforce that with our dealers because, at the end of the day, the IDC will adjust to the realities of the situation, whatever happens.

September 2018

OPI: Putting all this into context, how would you say IS is currently performing in the market?

MG: We were very pleased with our year-end results for 2017. Despite some dealer attrition due to mergers and acquisitions and a few dealers going out of business, we ended the year ahead of 2016 and we are now exceeding our 2018 budget. We attribute that success to us attracting distributors of disparate types of skill sets.

We’ve also developed a strong marketing programme called ‘Buy Direct-Sell Brands’. That, in my mind, is a core competency of a buying group – we support our direct buy suppliers and their brands.

In addition, we’ve worked successfully with our wholesalers on some of their programmes. Our RDC arrangement with Essendant continues to grow and is a more operationally-efficient and cost-effective way for dealers to buy direct.

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Mike Gentile BIG INTERVIEW My background isn’t the IDC, as you know – I worked for Boise Cascade Office Products for 18 years – and the prediction back then was that independents would not survive the changes that occurred during the early 2000s and that it was simply not a viable channel going forward.

Now we’re asking: where are BT, Corporate Express, Boise and OfficeMax? How are Staples and Office Depot really performing? Their models are desperately seeking relevancy, while the independent dealer has identified its niche. Many dealers continue to invest in their businesses, so whatever happens in the industry, they will adapt and the buying groups will continue to act as facilitators to assist them in that.

OPI: There’s so much talk about the unprecedented pace of change right now. Is that really true or has it always been like this – are we over-emphasising this whole change aspect in our industry?

MG: I would say that there’s never been a period of stagnation in my time in the industry. People get a bit apoplectic when a new player like Amazon comes along or when Staples decides it’s going from public to private. Certainly the public/private game has been played for a very long time and is no real news.

The biggest concern for the US industry currently is what will happen with our wholesale channel.

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OPI: If you were a betting man, where would you put your money?

MG: I think the outcome depends on how badly Sycamore Partners/Staples want Essendant versus how badly Sycamore really does not want SP Richards (SPR) to get Essendant. And also how serious Genuine Parts is about divesting SPR.

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OPI: We spoke to you recently about Staples’ Sandy Douglas coming out about his strategy for the company. Having had the chance to digest his comments a bit, what are your thoughts on this partnership idea with the IDC?

MG: Like I said at the time, I refer to it as a soup sandwich – you think you know what it should look like, but boy, it’s going to be really messy when you try to dig into it.

If Staples really thinks that local dealers can become nothing but a Coca-Cola bottler – the analogy I’ve heard – and that the only thing independents can do well is last mile delivery, well, I think it’s totally underestimating the role of the local independent dealer.

The notion of putting independent dealers under a Staples umbrella, to empower them and use them as a last mile delivery option or else just acquire them, is in my opinion either a classic Trojan Horse strategy or a sincere paradigm-busting attempt.

OPI: Assuming for a second that a Staples/ Sycamore/Essendant mash-up is unlikely to happen, what are your views on the alternative – SPR and Essendant merging? Would that be a good, even necessary, thing for our industry?

MG: Good question. When ActionEmco divided itself up ten years ago and was sold to both United Stationers and SPR, I was concerned with going to a duopoly. With only one potential OP wholesaler, there’s certainly a sense of a monopoly, although there are other channels and avenues for dealers to buy product.

That said, I do believe that a business combination of Essendant and SPR could be a very positive outcome for independents if the new entity recognises that the IDC is its core customer and invests in it.

But this ‘new’ wholesaler needs to really recommit itself in terms of its resources to the independent dealer and also to the manufacturers. It needs to challenge its brand versus private label strategy and try to narrow the cost of goods gap. Manufacturers also have to look at their commitment to the IDC and engage more, away from their current commitment towards Amazon.

If the manufacturers and the wholesalers continue to feed the beast of Amazon, they’re creating their

OPI: Are you saying that the wholesalers are paying mere lip service to the statement “we’re here to support the IDC”? Is the commitment not quite as ingrained as it should be?

MG: We have about 400 members and our role as a dealer group is to provide them with programmes and services that a) they cannot provide on their own or b) we can offer in a more cost-effective manner because we’re aggregating those resources. The wholesalers and manufacturers need to look at the same principal ideas.

I occasionally read that manufacturers only want to do business with 60 or 70 of the largest dealers in the country. Or that a wholesaler wants to do business with their top 150 dealers only. Well, what type of message do you think this is sending to the hundreds of other dealers in the channel?

OPI: I can gauge your broad opinion of Amazon already from what you said. But what is its impact on the IDC and the industry as a whole in your view?

MG: To start with, Amazon has become a bit of a pseudo third wholesaler. In terms of market share, I always equate it to that huge rollercoaster in a theme park that you look at and think: “Gee, I don’t know if I really want to get on that.” It goes up and down, it loops, it goes sideways… But ultimately it ends up back in the same place. My point? Unless it develops more of an enterprise-centric business model, Amazon will always be just a transactional company.

A business combination of Essendant and SPR could be a very positive outcome for independents if the new entity recognises that the IDC is its core customer and invests in it

OPI: Truthfully though, if you were in the vendors’ shoes – many of which you have great relationships with I’m sure – wouldn’t you do what they’re doing?

OPI: Can’t you tell them that?

MG: I tell them that all the time.

OPI: As you alluded to, wholesalers in some markets have been quite open about the fact that they’re only going to try and develop meaningful, lasting relationships with dealers that commit to them and are perhaps more important in terms of revenue and margin. Does that leave a gap for something else to emerge – is it time for a new model for those that don’t fit the right criteria?

MG: Absolutely. I talked about this ‘new box’ a few months ago, but it’s actually more relevant now than ever. If we ultimately end up with one wholesaler, and let’s assume that is an Essendant/SPR combination, it’s imperative for that entity to work more collaboratively and synergistically with the dealer groups. If there was only one dealer group, that would make it a lot easier too.

There needs to be something like a shared services model so that we develop a tighter relationship with the wholesaler, particularly if that wholesaler is willing to recommit itself to the IDC and not be too concerned about their big box customers, be they Staples, Office Depot or Amazon.

OPI: But it’s the Staples’ and Depots of this world that drive substantial volumes which, in turn, enables the wholesalers to buy better. That, of course, is then passed on to the dealers. You know the argument.

MG: One of the most meaningful discussions I had with an executive from a wholesaler was with Dick Gochnauer [formerly CEO of United Stationers] years ago. Dick said: “You know, I’ve come to the realisation Mike that there are certain things a wholesaler can do that a dealer group should not do.” We were talking about the RDC at the time.

“And then there are some things a dealer group should or could do that a wholesaler really couldn’t or shouldn’t.” That thought process is more relevant now than it was seven years ago and once the dust has settled we need to get some thought leaders around the table to really vet that out.

OPI: Picking up on what you’ve just said – one major US dealer group would be better than two.

With the change that’s going on, can the market continue to support the two primary dealer groups – yourself and TriMega?

MG: I knew this question would come up and I’ve said it before: it’s critical that the groups find a way to work together. It could be a true merger of equals or a structure where there’s also a shared services model between the two groups so that we eliminate redundancies, reduce operating expenses, leverage our effective and valued assets, and take advantage of the disruption and dysfunction in the industry.

But it’s a challenge. When these discussions occur, there are so many parties involved, and if there’s one wrinkle that surfaces during the talks it causes many ripples and these have always killed any deal. Yes,

September 2018

Dealers have developed some very effective competitive tools to sell against Amazon. As for the wholesalers and the manufacturers: do they want to continue to go on this ride with Amazon because they know where it’s going to take them, or are they going to reinvest and recommit themselves to the IDC? I strongly recommend the latest research report from the Institute For Local Self-Reliance on Amazon Business’ US Communities contract. Reading that report, it becomes abundantly clear what Amazon’s strategy is and how it is negatively affecting our industry, the IDC, local communities and the fabric of our society. Obviously, I’m hugely biased here.

MG: My view is that some of them are making short-term decisions that have significant long-term negative implications for their business.

BIG INTERVIEW Mike Gentile

own Frankenstein and they have to realise that.

Of course, everyone wants to run to where the volume is. But then they end up seeing their brand marginalised, not to mention their average selling price cannibalised.

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Mike Gentile BIG INTERVIEW

industry week. But every time you get one party to agree to it, the other one backs off, which is why we’ve continued with the EPIC annual meeting for our groups.

I am totally in favour of it. Give us the date and we’ll be there. But we’re only one cog in the wheel. Soon, there may be fewer cogs remaining, so trying to pull it off might become easier. I certainly hope it can be accomplished.

OPI: Under which banner should it be hosted?

MG: It could be under the BSA banner. Or, as I’ve suggested to you before, it could be OPI. But it has to be an agnostic banner, so it shouldn’t come from the wholesalers or the dealer groups.

Maybe if Staples ends up acquiring Essendant, they could run the meeting for us! it’s ok to attack ideas, but let’s not attack people.

Let’s look at what makes sense. Whatever we come up with, it has to be a model where no dealer is left behind: small or large, rural or urban, stockless or stocking – it has to include everyone.

Governance is going to be the key. The members of both groups’ boards of directors have to decide what is in the best interest of all their members.

OPI: Now there’s a thought! Talking of the big boxes, there’s been a real change in the acquisitions that we’ve seen over the past couple of years and Staples is clearly just reiterating that with its new strategy. The trend now seems to be – as opposed to the roll-up scenario of the past – to buy the business, keep the management team and leave everything to be run autonomously. What do you make of this alternative post-acquisition process?

MG: Having lived through it during my Boise days and being involved in a number of mergers during that roll-up phase, we quickly realised that the executives at the big boxes do not have the entrepreneurial skill set that the independent dealer principals have. It’s a clash and when the big guns acquire a successful independent dealer, they’ve often in the past ended up destroying it – we have many examples of that.

Whether or not a company like Office Depot – and by all accounts Staples as well now – has the self-discipline to allow dealers like Complete Office Solutions to continue to go to market with that entrepreneurial spirit, energy and skill sets, time will tell.

OPI: Given some of the initiatives that you have undertaken with TriMega, are you surprised you haven’t managed to overcome these wrinkles that become ripples?

MG: Well, I think we’ve come a long way. Our national accounts programme has proven to be relevant and sustainable. The EPIC annual meeting has had a great run and we are working together on EPIContent, our e-content initiative. Mike and Mike [Maggio] – we work well together and our staff work well together.

But the groups are owned by the dealers and it is those dealers that need to decide what their destiny should be and how best to achieve that destiny.

OPI: Let’s talk about the EPIC meeting. This event by all accounts has been quite enjoyable in the past for the people that have bothered to get on a plane and participate (see also EPIC preview, page 48). But this year is the last one. What’s the rationale behind canning it now?

MG: I think people felt there was a bit of a perfect storm brewing for 2019 because so many industry events had been announced – Essendant’s CORE in February, SPR’s ABC in July, EPIC in the autumn... All at a time when a lot is happening in our sector.

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OPI: By people, do you mean the vendors?

MG: Yes, some vendors, but TriMega also felt that way.

Call it a temporary time out until the dust settles. We’ll know in the next few months what 2019 will look like.

All that said, there’s definitely a need to get our dealers together and IS will certainly have something lined up for our members next year.

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OPI: The notion of an industry week has been bandied around from time to time over the last several years. Given the funding issues for the vendors and the broader challenges of the industry, would that make financial sense?

MG: IS and TriMega have tried to get the various parties together over the past couple of years for an

For more exclusive content from the interview, including Mike Gentile’s views on US Communities and on IS’ national accounts programme, visit the September issue in the Magazine section on opi.net.

OPI: If they can make it work, how concerned should the dealer and the wholesale channel be about that? It would arguably make selling out to the big boxes a more attractive option than it has been in the past.

MG: Good point and it’s a very valid concern.

It’s going back to finding a new model again and the relationship that the IDC can have with the wholesalers or the dealer groups. You’re going to see some different models which will surface in an attempt to diffuse the attrition that might occur.

That’s all assuming Staples and Depot have the wherewithal to continue with all these mergers and acquisitions while at the same time dealing with their considerable real estate headaches and general market headwinds.

We are a long way from throwing in the towel. And let’s not forget that there are many dealers in the US – whether they’re in IS or in other groups – that want to continue to run their own business. They have a loyalty to their customers, family, employees and their local community; selling is not the only option.

OPI: On that note, let’s wrap up. Thanks Mike – it’s always great to talk to you because your passion for the IDC and the industry at large really shines through.

HOT TOPIC

It could

HAPPEN TO YOU

The ferocity and proliferation of cyberattacks is becoming ever greater, but there are still far too many businesses that think it won’t happen to them. But it can, and does, as OPI's Michelle Sturman finds out…

W

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annaCry, Equifax, NotPetya, GitHub and BadRabbit will hopefully sound familiar to all of you. If not, suffice to say they represent some of the biggest cyberattacks in the past couple of years, costing businesses billions in lost productivity and financial losses.

Even more alarming is the increasing frequency at which cyberattacks are occurring – recent figures from the Online Trust Alliance state that 2017 was the worst year ever for data breaches and cyber incidents, with the huge leap in ransomware leading to almost double the amount of cyberattacks – 160,000 compared to 82,000 in 2016.

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A GROWING THREAT According to cybersecurity experts, the threat from cyberattacks is growing, with hackers continually finding new and more sophisticated ways to gain access to data and/or disable a computer or network. There are generally three main types of attack: malware, phishing and Denial of Service (see Definitions). The way they are able to spread is becoming easier all the time, thanks to the Cloud, Bring Your Own Device and gadgets connected to the Internet of Things (IoT).

Gartner predicts that in just two years, there will be 20 billion internet-connected things. A recent survey by the research firm found that almost 20% of organisations had at least one IoT-based attack in the past three years. As if all this information wasn't scary enough, according to Cybersecurity Ventures, the

damage from cyberattacks by 2021 will cost around $6 trillion annually.

One of the latest admissions from a large company – in this case the UK’s Dixons Carphone – has revealed that a data breach in 2017 affected the personal data records of ten million customers. In a statement, Dixons Carphone CEO Alex Baldock said: “Since our data security review uncovered last year’s breach, we’ve been working around the clock to put it right. That’s included closing off the unauthorised access, adding new security measures and launching an immediate investigation, which has allowed us to build a fuller understanding of the incident.”

Don’t be fooled into a false sense of security and believe it is only big companies that are under attack Don’t be fooled into a false sense of security and believe it is only big companies that are under attack.

An oft-heard comment from SMB owners is: "We don’t have anything worth stealing”, along with the common perception that "it’ll never happen to us".

But it does and the OP industry is no exception. As Resolve Cyber Head of Strategy Danny Steed points

Definitions

Malware: Software that is specifically designed to disrupt, damage or gain unauthorised access to a computer system.

Phishing: The fraudulent practice of sending emails purporting to be from reputable companies in order to induce individuals to reveal personal information, such as passwords and credit card numbers.

Denial of Service: An interruption in an authorised user's access to a computer network, typically caused with malicious intent.

OPI.NET POLL: DO YOU HAVE A CYBERSECURITY POLICY IN PLACE?

YES (52%)

WORKING ON IT (10%) WHAT'S CYBERSECURITY? (0%)

CASE STUDY 1: DEALING WITH RANSOMWARE

NO (38%)

The fallout from a successful cyberattack is huge and includes reputational damage, financial penalties (especially following the introduction of GDPR in the EU), loss of competitive advantage, disrupted cash flow, reduced sales and a decrease in profit. “Combatting cyber threats is an unfortunate reality and choosing to ignore them could be very costly. Regardless of the size of your business, you have to take cybersecurity seriously and invest according to your risk tolerance,” says Jason Player, CIO/CMO of US-based Innovative Office Solutions.

EMPLOYEE FOCUS The cost of implementing cybersecurity is a concern for small businesses and the Ponemon Institute's survey found that respondents had insufficient personnel, budgets and technologies to provide strong security for the business. In addition, while one third of respondents stated their companies could not determine what caused a cyberattack incident, 54% said data breaches were attributed to a careless employee or contractor, while 43% believed incidents were brought about by third-party mistakes.

The Cyber Security Breaches Survey 2017, released by the UK Department for Digital, Culture, Media & Sport, backs this up stating that the most common types of breaches are related to staff receiving fraudulent emails (72%), followed by spyware and malware (33%), people impersonating the organisation in emails or online (27%), and ransomware (17%).

Office Brands CEO Gavin Ward told OPI that the group's dealers regularly experience attacks through a member of staff inadvertently clicking on an email or link and then being infected by a virus.

Additionally, he says, there is often bad practice surrounding server backups.

“The focus should be on training and wargaming as simple solutions," says Resolve Cyber's Steed.

"Specialist training of leadership and the workforce can teach what to look for, how to spot malicious behaviour, and develop a culture that is mindful – but not obsessed – with security.”

Innovative's Player agrees, adding that with the rise in phishing, social engineering and BYOD, the

September 2018

A UK dealer that wishes to remain anonymous relates a recent ransomware attack on the business: A few days before the attack in July this year, we had received orders via email on an intermittent basis from our web store but other than this, nothing else seemed amiss. At 10 am on the day it happened, our back-office system crashed and would not open. As I was about to email our web store software developer, a message popped up on my screen: “You have been hacked. All your files have been encrypted! Follow these instructions and reply to this email address only.”

The message was accompanied by an ID number and email address, with the offer of free encryption of up to one megabyte before an unspecified payment in Bitcoin. It was then that I noticed my external backup drive had been left plugged into the server overnight.

I called our IT company which came over and discovered the server and backup drive were encrypted on a 24-hour timer, after which all data files would be wiped. I lost my web store price files and product code history for my entire customer base. In addition, all the Sage accounting data, account history and VAT information was gone. Following this, the phone system went down, so we couldn’t make any outgoing calls, as well as email and Microsoft Office 365. We had to work for three days using only our mobile phones!

Ultimately, I’ve had to purchase a new server, two new backup external devices, a new Sage accounting package, plus pay out for three days of IT costs. I am speaking to my insurance company about the attack, but it only covers loss of business, meaning the cost of hardware and charges – totalling £3,000 ($3,900) so far – is my problem.

This attack was successful because Microsoft had carried out a server backup the day before which turned off all the anti-virus protection – this had then not been reinstated. It has been a bitter experience and I almost threw in the towel, so to speak, and closed down the business due to the frustration and total loss.

However, I must say that the support from our software company was fantastic. The team worked tirelessly to install everything on the new equipment alongside my IT company, and between us working a few late nights, the business is now back to where it was before the cyberattack.

I hope these words act as a warning to all who read them.

HOT TOPIC Cybersecurity

out, small businesses are at greater risk than large corporates, for the simple reason that they do not have the scale of resources or capabilities that bigger firms have access to. “The risk is greater because larger businesses can absorb some losses caused by cyber crime, whereas for SMBs, even a single successful cyberattack could be a business killer. The sad fact is that small companies do not even consider themselves as a target, and frequently do not take the simplest measures to protect themselves against the most basic threats.”

Bob Shulman, President of US dealer Suburban Stationers, agrees: “I think the independent dealer channel suffers from a sense of complacency, a notion that it will never happen in my dealership.

The typical dealer spends a fraction of what other companies spend on IT and cybersecurity. We have this mentality that we can fly under the radar when it comes to hackers and cyberattacks because there are larger targets out there. That’s just not the case in our ever-growing digital world.”

As the two UK and US dealer case studies in the following pages reveal, cyberattacks can – and do – happen to any business. The Ponemon Institute’s 2017 State of Cybersecurity in Small and Medium-Sized Businesses report revealed that in the US and UK, a mere 21% of companies rated their ability to mitigate cyber risks, vulnerabilities and attacks as highly effective, despite 51% having experienced either a successful or failed ransomware attack.

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Cybersecurity HOT TOPIC

focus should increasingly be on the human element as well as the devices that are allowed access to a network.

“To combat the threat of phishing, we’ve invested in our ‘human firewall’ where every employee is required to go through initial security awareness training. Twice monthly we use a third-party system to send out randomised phishing attacks to employees, both to measure our performance and as an ongoing training tool.”

Player says that as a result of the security awareness programme and training, an attack was foiled when someone impersonating the CFO attempted to persuade an employee to make a large bank transfer.

To combat the threat of phishing, we have invested in our 'human firewall' RISK CHECK In the UK, dealer group Nemo has launched an added value service to its members which provides businesses with a cybersecurity check. The BOSS Federation is also adopting the platform and will be offering it to all of its members. Cyberiskchek.com offers a global question set that covers European standards and is designed to assess cyber risk preparedness. Explaining, Nemo Managing Director Tim Beaumont says: “It is an inexpensive way for businesses to gain an understanding of where they stand with regards to cyber risk. A good report can be used by underwriters to better assess the risk for any cyber policy and to reduce premiums. We found it useful at Nemo as the detailed report and risk summary provided us with priority areas to work on.”

Responsibility for cybersecurity lies with the business owner and the problem is becoming too big to simply be ignored. Preparation is key to winning this war.

“Investment in prior training, policy creation and wargaming are significantly cheaper than paying for incident response, forensic investigations and even ransoms after something has actually happened,” concludes Steed.

SMB CYBERSECURITY STATS 2017 60% of SMBs go out of business within six months of a cyberattack 43% of cyberattacks target small businesses 14% of SMBs rate their ability to mitigate cyber risks as highly effective 55-61% of SMBs have experienced a cyberattack in the past 12 months 52% of SMBs experienced a ransomware attack 54% of SMBs experienced a data breach involving sensitive customer information 54% of SMBs said negligent employees were the main cause of data breaches 58% of SMBs think ransomware is a serious financial threat Sources: Small Business Trends and the Ponemon Institute

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CASE STUDY 2: TWICE THE PAIN

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In the following account, a US dealer that also wants to remain unnamed, explains how two cyberattacks affected the business.

The first time it happened was August 2017. Around mid-morning, we noticed our DDMS server was becoming unresponsive. After contacting DDMS support, we found out that we had been attacked with a ransomware virus.

We spoke to a hardware consultant who walked us through how to stop the spread of the virus and finally found the workstation that had been infected. However, by the time we got that workstation offline, the damage had already been

done. The DDMS data had been corrupted along with about half of another file server.

To make matters worse, when we tried to restore DDMS with our Cloud backup, we found out it hadn’t run for eight days. Fortunately, the raw data uploaded to the sales-i module was uncorrupted, and we were able to use that data to manually recreate the lost sales.

We were hit by the virus on a Friday, so were only down for one business day. Over the course of that weekend, we had the entire staff working, billing out orders and dealing with other administrative functions, so on Monday morning we were able to resume normal

business operations with very little interruption.

The cyberattack cost about $12,000, primarily from the additional payroll expense. We needed to immediately begin to remediate the problem. The thought of paying the Bitcoin ‘ransom’ requested in the hope that the hackers would unlock our files was not an option.

Following this experience, we instituted new disaster recovery procedures, focusing primarily on prevention. Using Malwarebytes, all traces of the ransomware were removed, and we have upgraded to the Enterprise version of the cybersecurity software. We also learned that this virus travelled

through mapped network drives, so we now limit access to network shares.

We were hit by ransomware again about six weeks later, but this time we were prepared. We suffered no loss to business and due to our redesigned network infrastructure, our back-end system data was unaffected.

There was no common thread to these attacks, and the only conclusion we could come to was that the viruses came in through email. We now regularly communicate with our employees about cybersecurity and remind them to ask before opening any file or links in emails they are unsure of.

CATEGORY UPDATE

Specia

JAN

Special Issue

JAN / SAN

Cleaning

UP Surveys suggest that many operators in the jan/san field are not making the most of the opportunities that exist, but those getting it right are seeing significant commercial success – by David Holes

Specia

BREAK

SPE

Specia

Special Issue BREAKROOM

SPECIAL

T

he biggest change in the jan/san sector over the past year has centred around the continuing digitisation of resellers as well as distributors. Increased use of mobile-based applications and e-commerce sites are being employed to offer a more intuitive buying journey.

Ellen Heesen, European Manager Merchandising Facility at Office Depot Europe, confirms this trend: “We operate across 14 European countries and there’s been a big shift to procuring facilities and jan/san products online. Our customers increasingly order items this way and expect faster delivery times to wherever they are needed. You need excellent logistics and inventory management to ensure this happens.

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Our customers increasingly order items [online] and expect faster delivery times to wherever they are needed. You need excellent logistics and inventory management to ensure this happens

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And, she adds, it’s not just procurement where technological developments are having an impact: “Mobile apps are being used to help cleaning teams understand their jobs better, with advice about what to clean and when. Our customers are focused on reducing cost and their largest outlay is in cleaning staff, so any apps or systems that help improve their efficiency are in high demand.”

SURVEY SURPRISES However, as a recent study by US wholesaler Essendant found, a worryingly large number of jan/san resellers are refusing to embrace this technological shift and continue to rely mostly on phone or in-person sales. Some feel that their customers don’t need or want to go down the digital route, whereas others are simply not sure where to start.

The report, entitled The Future of Janitorial and Sanitation Distribution, surveyed 114 jan/san resellers and found that the industry as a whole is behind when it comes to digital transformation. Just over half (53%) reported having an e-commerce presence, but a further 28% said that although they have a website they don’t list products on it, while 11% don’t have a website at all. They said the biggest barriers to making the leap were cost and a lack of the necessary technical infrastructure.

Even those that do offer an e-commerce option often admitted they were not using it to its full potential.

Nearly three-quarters (73%) said less than half of their revenues come from online sales, showing that a combination of offline and online channels remains an important strategy for many jan/san resellers.

A separate report from Apruve, the B2B credit network, ranked Staples as the best e-commerce site for jan/san out of the top 50 sites in the US. The study focused on jan/san businesses at various stages of e-commerce adoption and looked at user experience, B2B needs and marketing strategy.

Staples was praised for being “an excellent example of how a highly functional e-commerce store should look” due to providing an unlocked and accessible website.

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A LUCRATIVE SECTOR Those that are operating in the jan/san category are reporting continued success in a sector that’s typically growing between 2-4% annually across the globe. Sofidel America states that it’s exceeding these rates while in Australia Andrew Gilbert, Merchandise Manager at Office Brands, says jan/san growth has been particularly strong over the past 12 months: “Although we started from a relatively low base, we’ve seen revenues increase by 14% year on year, with sales of toilet tissue and hand towels leading the way with 16% growth.”

Claude Corcos, US Marketing Director Commercial at Swedish hygiene and health company Essity, notes that within the overall jan/san category some verticals are moving faster than others: “We’ve noticed particularly good growth in office, healthcare, aviation maintenance, repair & overhaul and lodging, with these distribution channels deepening their position in janitorial supplies.”

CATEGORY UPDATE Jan/San

Apruve’s top suggestions for improving e-commerce sites include making product lists available to every visitor and the inclusion of product ratings and reviews. Alarmingly, however, it found that over a third (34%) of company websites were locked for non-registered users and only 23% showed customer reviews of products.

This is a familiar story for OP resellers which used to make the same errors – some still do – negatively impacting their visibility and SEO rankings. They’ve now taken huge strides with their websites to remedy this, but jan/san operators clearly still have some catching up to do.

HK Wentworth’s new Utility/AF range

Mention technology and people immediately think of electronics, IoT, AI, etc [...] but technology is being applied at many different levels in the jan/san field

TECHNOLOGY SHIFT Other scientific advances in materials and chemical formulations are further driving innovation in the sector. As Giorgia Giove, Marketing Manager at Sofidel America, explains: “Mention technology and people immediately think of electronics, IoT, AI, etc.

These areas get a lot of attention, but technology is being applied at many different levels in the jan/san field. For example, our BioTech bath tissue actually cleans plumbing systems using spores incorporated within the tissue fibre – that’s a technological application of science used to solve an everyday business challenge.”

Innovative compressed towel technology is also being used to increase capacity and save space, particularly in high traffic venues. Essity’s Tork PeakServe Continuous Hand Towel System connects the top and bottom of each compressed towel bundle, allowing them to dispense continuously without interruption or jamming. It holds up to 2,100 towels (1,500 ft/150 m of material) which Essity claims is 25% more than any other product on the market – serving up to 600 more people between refills than traditional dispensers.

Corcos says that technological developments are also behind the main trends driving product demand in 2018 – the shift towards data-driven cleaning and an increased investment in hygiene infrastructure to improve customer satisfaction.

“Digital has come to the towel, tissue and napkin marketplace with heavy investment in IoT-based products because of the opportunities they create for facility managers and building service contractors.

Data enhancements to traditional products lead to improvements in productivity, reduced labour costs and lower quantities of restroom supplies needed.

“Sensors within dispensers measure real-time demand so facility managers can minimise the amount of intervention needed to improve customer service. Our Tork EasyCube Intelligent Facility Cleaning System helps them discover traffic patterns, eliminate issues before they arise, maximise staff efficiency and improve inventory ordering.

September 2018

Julia Vorley, Group Marketing Manager at manufacturer HK Wentworth in the UK, also reports a burgeoning sector: “Jan/san has performed well for us as a category and it’s been more popular than associated areas such as PPE and safety.

As a business, we’ve run some strong marketing campaigns centred around ‘desk detoxing’ incorporating a simple five-step plan. Hand sanitising gels have also been selling well, especially the handy travel-sized versions.

“Overall, we’ve seen strong results across some very traditional lines such as surface and telephone cleaners, coupled with eager acceptance of our newer lines such as smart wipes and cloths – these have a real green ‘edge’ to them as they are both washable and reusable and come in recyclable packaging.”

This year, the company also launched a new UtilityAF range – a selection of essential economy alternatives to its premium cleaning range, with pared-back packaging and simple materials for essential tech-cleaning requirements. It includes

a selection of surface-cleaning solutions aimed at value-for-money workstation hygiene, plus flammable spraydusters for cleaning dirt and dust from hard-to-reach or inaccessible areas. These are cheaper than non-flammable HFO gas-propelled spraydusters, but extra precaution is required and they must never be used around live equipment.

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Jan/San CATEGORY UPDATE www.opi.net

“We’ve also seen our customers invest in facility upgrades in order to improve the customer experience and there’s a recognition that the restroom has an important part to play, with its location, design, décor and the need to balance the provision of consumables to meet demand all worth investing in.”

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RULES ARE CHANGING Several changes in the jan/san sector are being driven by legislative regulations affecting manufacturing processes, raw materials and finished products.

Compostable products are in high demand, with the desire to eliminate disposable plastic products causing an increase in demand for paper alternatives, according to Giove. “However, recycling facilities need to keep up with the pace,” she says. “For example, a vast establishment such as Chicago O’Hare airport enacted tough regulations demanding that compostable materials are used, but then found there wasn’t a composting facility within 1,000 miles of it!”

Essity is also having to respond to increasingly tighter green legislation. In its US market, this is most evident at a local level, with zero waste mandates now proposed or passed across many major city zones, including Washington DC; New York City; Phoenix, Arizona; and Boulder, Colorado.

Back across the Atlantic, the law banning some disposable plastic products in France by 2020 is focusing minds, according to Heesen: “Tougher rules and the need to reduce plastic waste in general are acting as a catalyst for finding eco-friendly alternatives made from biodegradable materials such as sugar cane or paper.”

HK Wentworth’s Vorley admits that changing legislation is one of the biggest challenges for her company. For chemical manufacturers, the legal requirements for labelling and classification are in constant flux and businesses have to stay on top of these changes to ensure that their products stay compliant: “The increasing amount of text and symbols now required on packaging is a real issue,” she says. “We strive to incorporate as many different languages as possible, but often – on smaller products

Essity’s Tork EasyCube Intelligent Facility Cleaning System

Sofidel America’s BioTech tissues

in particular – it’s just not possible to introduce larger labels and we are having to continually explore innovative new labelling solutions.”

Environmental concerns are now right at the top of the agenda for decision-makers, says Giove.

However, she adds a note of caution, saying the key is to ensure a product delivers on performance without any negative cost implications: “Eco-friendly products are increasing in demand, but only if the cost premium is not too high. Being able to run your business efficiently and effectively trumps environmental worries for many.”

She adds: “Within the industry, the buzz is often around using recycled fibre, but in reality the availability of recycled fibre is shrinking and it can be difficult to make an acceptable product. At Sofidel, we’ve decided to use technology to produce sustainable, high-performing products that are eco-friendly by harvesting trees from certified growers who plant 3-6 new saplings for every one used.”

For more on the jan/san – and broader – industry’s environmental efforts, look out for OPI’s Green Thinking supplement this autumn.

DIFFICULTIES REMAIN Jan/san may be a lucrative sector, but even those operating successfully in it admit that it’s not all plain sailing. Logistics and their associated costs are the most significant challenges, with driver shortages and rising fuel prices having a major impact. “Costs have increased more than 36% over the last 5-10 years,” reports Giove, “and there’s no real relief in sight.

Manufacturers, distributors and end users are all now feeling the effect of these supply chain stresses.”

It’s a similar tale in Australia where Office Brands is finding the lack of a comprehensive national supply chain problematic. According to Gilbert, many suppliers are strong in particular regions, but struggle to provide a consistent level of service across the dealer group’s geographically diverse dealer base: “We’re constantly looking for suppliers that have appropriately located regional warehouses, so we can provide the necessary short lead times,” he adds.

Despite these logistical headwinds, with the right approach, the prospects remain excellent in this growing category. But jan/san resellers must move with the times in terms of embracing e-commerce and using technological shifts to their advantage. As the Essendant report concludes, customers want a buying experience that’s quick and intuitive, and operators which make the necessary investments to offer that will be rewarded in the years ahead.

Northumbria University is located in Newcastle-upon-Tyne, a city in the north-east of the UK. It’s a research-rich, business-focused institution with a global reputation for academic excellence.

With two main campuses, over 150 cleaners and four facilities coordinators – who manage the staff and place the orders – the university was looking for a sole supplier with the necessary experience and knowledge to provide its cleaning and hygiene supplies, while reducing both its costs and carbon footprint. It also needed assurance that the chosen supplier could manage a smooth implementation process and would work with the university throughout the lifetime of the contract to provide high-quality products at competitive prices as well as ongoing training and day-to-day end-user support.

Having been awarded the Silver EcoCampus Award in 2016, it was also important to work with a partner that could help improve its sustainability as it moved towards ISO 14001 accreditation.

STEP FORWARD OFFICE DEPOT Northumbria University already had a long-standing relationship with Office Depot for the supply of all its general office stationery. This existing partnership gave the institution confidence that Depot could provide the required level of customer service and deliver goods on time and to the correct location.

As Caroline Rose, the university’s Category Manager, explains: “We were tasked with reducing costs and carbon footprint, without these factors having an adverse impact on service levels or quality. Office Depot’s tender response gave us the confidence that it would work with us to deliver on these targets successfully.”

THE SOLUTION Following the award of the contract in 2017, an operating plan was drawn up to address the product mix required and any specific training and support needs. A number of actions were identified, with product rationalisation being a top priority. The

university had very limited standardisation across its campuses and was often using multiple products for the same solution. To solve this, Depot worked with its vendor partners and identified a refined core range which would meet all of the university’s needs, using less than a third of the range of products that were historically being used – 141 products were reduced down to 30 key lines.

Office Depot’s online ordering system was also implemented which provided the facilities leadership team with greater visibility over spend, allowing them to set up ordering controls and offer soft cost savings in terms of user time spent placing orders. The system included the ability to download safety data sheets for all products used.

Additionally, where possible, all jan/san deliveries were consolidated with general office supplies, reducing the total number and lowering overall carbon footprint.

CATEGORY UPDATE Jan/San

CLEAN EDUCATION

We were tasked with reducing costs and carbon footprint without these factors having an adverse impact on service levels or quality A comprehensive training plan was produced and backed up by a series of on-site events where cleaners were shown best-practice cleaning methods and given advice on pack sizes and correct dosage levels. Plus, it was agreed that they would trial some lower-cost, concentrated products including a multi-surface cleaner for walls, floors and desktops.

The contract is still in its early stages, but a number of benefits have already been identified. All sites now have a file of safety data sheets and product charts for the cleaning chemicals used, shown as quick, pictorial reference guides. Cleaners are also more confident with the new rationalised range and cleaning efficiencies have improved. Importantly, overall cost savings of approximately 12% are already being achieved.

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Here’s to

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GOOD HEALTH In its latest report, Essity aims to raise awareness of just how integral hygiene, sanitation and health is to the well-being of individuals and their communities

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lobal hygiene company Essity has been publishing regular reports regarding worldwide health and well-being for the past ten years. Since 2014, it has partnered with the Water Supply and Sanitation Collaborative Council (WSSCC), and in 2016 jointly published the Hygiene Matters Report (see Research, OPI Dec/Jan 2016/17, page 34).

The latest edition of the Hygiene and Health Report 2018-19 once again collaborates with WSSCC as well as the United Nations Foundation and focuses on health and hygiene throughout the course of life.

As Essity CEO Magnus Groth points out, the United Nations’ Sustainable Development Goals (SDGs) provide “an excellent framework for ensuring public progress as well as individual well-being”.

The emphasis in the report is on three of the 17 SDGs: 3) good health and well-being; 5) gender equality; and 6) clean water and sanitation. It combines research findings, statistical evidence, successful cases and testimonies with insights gathered from 15,530 people across 20 countries including Australia, China, Germany, the UK and the US. Access to clean water is necessary to attain goal six, while good hygiene practices such as handwashing are fundamental to achieving number three. In terms of goal number five, Essity points out that poor hygiene can become a barrier for education and community participation, which can be particularly true for girls in environments where menstruation is regarded as ‘dirty’. As such, good menstruation hygiene is vital in achieving the required sanitation expectations and female empowerment under the gender equality umbrella.

JAN /

RESEARCH Many people, for one reason or another – age, illness or disabilities, for instance – rely on someone else to tend to their health and hygiene, either temporarily or permanently. Essity states that well-being should be for all. Offering adequate hygiene and health solutions and preventing the spread of bacteria plays an important role in achieving this aim.

In addition, Essity urges policy and decision-makers to put the topic on their agenda and for individuals to speak up on matters of hygiene.

As WSSCC Executive Director Rolf Luyendijk says: “Hygiene and health are prerequisites and enablers for fulfilling many of the United Nations Sustainable Development Goals. Putting hygiene and health at the centre of the conversation means more emphasis on forgotten and taboo topics. It also opens up possibilities for change that reaches far beyond just individuals, but to society as a whole. Hygiene is only the beginning.”

This is Essity’s checklist for promoting good hygiene and health practices:

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• listen to and learn from those whose voices are rarely heard • give everyone regardless of their physical abilities the practical means to care for their hygiene and health requirements • elevate knowledge about how hygiene can affect the well-being of ourselves and others, and how to best prevent and manage ill-health • adjust attitudes and support a more open discussion at all levels

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To read the full report, visit www.essity.com.

Essity urges policy and decision-makers to put the topic on their agenda and for individuals to speak up on matters of hygiene SUSTAINABLE DEVELOPMENT GOALS UPDATE It has been three years since the implementation of the 2030 Agenda for Sustainable Development and an update from the United Nations reveals a sense of urgency with accelerated action in order to meet the 17 Sustainable Development Goals (SDGs).

With respect to the third goal – good health and well-being, The Sustainable Development Goals Report 2018 states that drinking water, unsafe sanitation and lack of hygiene continue to be major contributors to global mortality, resulting in around 870,000 deaths in 2016.

On the point of gender equality – goal five – the report found that while some forms of discrimination against women and girls are diminishing, there continues to be a lack of basic rights and opportunities.

Access to safely-managed water supplies and sanitation facilities, as explored in goal six, is still a major concern worldwide: three in ten people lack access to safely-managed drinking water services while six in ten suffer from an absence of safely-managed sanitation facilities.

As Secretary-General of the United Nations Antonio Guterres notes in the report: “With just 12 years left to the 2030 deadline, we must inject a sense of urgency. Achieving the 2030 Agenda requires immediate and accelerated actions by countries, along with collaborative partnerships among governments and stakeholders at all levels.”

September 2018

STARTING IN CHILDHOOD Good hygiene practices start in childhood, but according to the survey, 53% of parents say their children do not use the toilet at school as they are considered to be unhygienic (55%) and lack sanitation supplies (38%).

In Essity’s home market of Sweden, hygiene nurses educate preschool teachers, inspect the facilities and monitor infection rates. Preschools that signed up to the programme showed improved absence rates between 7-13%; annual savings of $5.5 million, 10,000 fewer doctor visits and 3,000 fewer prescriptions of antibiotics.

Human dignity and empowerment are often linked to being able to control one’s physical needs, but this is not always the case for adults throughout their lifes.

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The appeal of

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Jan/san products are must-haves, not nice-to-haves, that’s just a simple fact. So it’s no surprise more and more players in our industry – channel-spanning – are taking the leap into what is often unknown territory beyond the obvious core consumables. OPI’s Heike Dieckmann charts three jan/san journeys in the following case studies

CASE STUDY 1: FROM SIMPLE PRODUCT TO FULL SOLUTION SPECIAL UK dealer Irongate falls very much in the ‘progressive’ camp and has been enjoying excellent growth in the past few years. This is due to expansive thinking and a real drive to enter and excel in adjacent categories such as workwear, facilities and promotional products. Irongate’s current run rate is above £20 million ($26 million) and jan/san is certainly a category that has contributed to the company’s growth, as Managing Director Adam Noble explains.

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OPI: When did Irongate get involved in jan/san?

Adam Noble: We have been selling these products for quite a few years. In 2015, purely by chance, we came across an individual who we felt could take on the responsibility for the category. That ultimately really helped us grow our proposition.

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OPI: Other than with this one person, how did you invest in the category, in terms of staff, training, resources, products, etc?

AN: At the beginning, we were very much focused on washroom consumables, reasoning that every company has a toilet and gets through lots of rolls, so we could engage every single customer in that conversation. This soon developed into a full range of cleaning and hygiene products, which in turn led to us offering complete washroom management solutions.

We now have two full-time sales people and internal customer service specialists. This investment in recruitment and training has resulted in not only developing the product side of the category, but also the service aspect, which enables us to deliver considerably more added value to our customers.

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OPI: What’s your target audience in jan/san terms?

Does it differ from your ‘traditional’ customer?

AN: We target all of our customers as they obviously all have toilets. That said, requirements can vary quite a lot from business to business, so it’s our job to tailor our offering according to specific needs.

OPI: VOW is your first-call wholesaler. Are you happy with the products and service you’re getting?

AN: Yes, we work with VOW and the wholesaler has worked really hard to get the selection of products right and give us access to great pricing – it has made a huge difference to our success in the category. We do use other specialist suppliers as well.

OPI: Can you give me some tangible results of your success in the category?

AN: Since we ‘properly’ started in 2015, we have doubled sales of the jan/san division and by the end of this year we expect to triple revenues to just over £1.5 million.

We have repeated this process in other areas like business gifts and workwear and have seen very similar results with 30% growth rates, which is a real positive as it offsets sluggish growth in OP and EOS.

Adam Noble, Managing Director, Irongate

It’s still difficult sourcing products in this category from a wholesaler, but we have had great flexibility and support from VOW OPI: Broadly speaking, what have been the main challenges in getting the jan/san category off the ground for you?

AN: It was mostly supply chain and procurement issues. At the beginning we were unable to source the full range of products from our preferred wholesaler VOW. This meant we had to work with other partners which not only made distribution more difficult, but it also had an impact on achieving the best buying price. As a result, we were uncompetitive at times and missed out on business.

Over time, things got better. It’s still difficult sourcing products in this category from a wholesaler, but we have had great flexibility and support from VOW and worked very closely together to get this off the drive.

CASE STUDY Jan/San

CASE STUDY 2: THE POWER OF GLUE German adhesives manufacturer tesa bought ‘nie wieder bohren’, a market leader in hole-free attachment systems – ‘never drill again’ – early in 2017. The acquisition has not only given the vendor more of an entry into the B2B space, but also into the jan/san sector specifically. Tesa now has its own range of bathroom accessories that all revert around the gluing fixation system.

Falk Butterwegge, Head of Office Supply, Food & Digital Sales, International Sales Consumer & Craftsmen, explains tesa’s intentions for this category.

OPI: This is the first time that tesa is branching into a whole product range around your core adhesives focus. What were the reasons for this move?

Falk Butterwegge: From the outset, our main intention was to open up new markets and expand our efforts in the jan/san sector. Everything we do is driven by customers’ ever-growing need for convenient solutions.

The logical step for us was to extend the application of the adhesive. But it’s important to note that tesa’s key USP is the fixation system and the fact that consumers – private and commercial – don’t want to drill holes in walls anymore for all manner of fixtures and fittings. It’s less about the washroom accessories themselves.

OPI: What is your target audience for the range and this particular gluing application?

FB: In the commercial space, we’re targeting specific customers in the fields of architecture and engineering, as well as the whole SMB segment.

OPI: What distribution channels do you use?

FB: This depends somewhat on the target group.

It’s certainly the DIY channel and we serve

independent dealers through the OP wholesale channel. We deal directly with commercial customers for large professional applications.

OPI: What has been the early reseller feedback from your foray into this specific part of the facilities sector?

FB: We’ve had great feedback from our dealer partners. They appreciate the new assortment as it really supports their efforts to grow in the jan/san category with a focus on the hygiene and washroom segments.

OPI: Is the range available internationally?

FB: Not yet, but new assortments will roll out across Europe later on this year and in 2019.

OPI: What have been the main challenges in serving the B2B market with this assortment?

FB: It’s very much a case of educating end users.

These bathroom accessories with the specific fixing technology are still niche products. Our main focus is to explain and emphasise the convenience of this patented technology. We’re also refining the range in terms of designing for specific needs – hospitals, hotels, offices, etc. It’s an ongoing process.

Falk Butterwegge, Head of Office Supply, Food & Digital Sales, International Sales Consumer & Craftsmen, tesa

[Dealers] appreciate the new assortment as it really supports their efforts to grow in the jan/san category

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Jan/San CASE STUDY

CASE STUDY 3: GROWTH BY ACQUISITION The Supply Room, based in Ashland, Virginia, has been investing in the jan/san category for over five years. At the beginning of this year, it bought Lawrence Environmental Group, a $10 million reseller dedicated to the janitorial and cleaning space.

With the acquisition came not only a considerable amount of jan/san expertise, but also several new locations. Unlike most of The Supply Room’s acquired companies which last year were brought under the company’s umbrella in a re-brand, Lawrence Environmental Group for the time being will keep its name.

In terms of customer base, there is an overlap between Lawrence and the OP side. But, as COO Yancey Jones Jr explains, even where there is some crossover, such as in the education market, in most cases the main point of contact and the purchasing decision-maker within those customers are different depending on the product category.

That said, consolidating those contacts has definitely strengthened customer relationships.

And, of course, the acquisition has added a whole new customer base, according to Jones: “Lawrence does quite a bit of business with building service contractors and various manufacturing-type companies, so not your typical office environment customers that you get from an office supplies perspective. It’s also big in the healthcare market as well as in long-term stay facilities, such as retirement homes. These are big janitorial consumers.”

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IN-DEPTH RANGE It’s the products as well that are different from an OP-focused dealer. As Jones comments: “Before we made this acquisition, we were selling what I would describe as the easy products in this category – paper towels, toilet paper, soap, etc. Lawrence has allowed us to expand our breadth of product, especially in the area of chemicals, cleaning products and equipment.

“It also has a service component to its offering, such as a break-fix for any high-end equipment that is being sold to customers and then needs to be maintained or fixed. We have a group of technicians who deal with that service element to our customer base when we’re selling equipment.

From a supply perspective, Lawrence historically procured directly from manufacturers – quite typical for dedicated jan/san operators. The Supply Room, meanwhile, had more of a hybrid model, with some direct purchases as well as going through its various distribution partners which include Bunzl and its first-call OP wholesaler Essendant.

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CHALLENGES AND OPPORTUNITIES In this procurement point also lies one of the challenges that Jones and his team are dealing with – pricing. “What we’re experiencing is completely consistent with the rest of the janitorial space. In OP, when you use an Avery or a 3M, you get a direct cost price and we know how we can go to market with that. In jan/san, you can literally have 20 or 30 different prices on the exact same item from a manufacturer. That’s a difficult concept for an office

products dealer to get its head round and deal with.”

Overall, the opportunities – and challenges – that arise as a result of delving much deeper into the jan/ san space are similarly consistent with those of the sector as a whole.

The Supply Room’s model of next-day delivery, for example, far exceeds what’s typically offered in the jan/san category. This provides the company with a huge service opportunity for its new customer base and is a real USP. Jan/san resellers are also often behind the OP channel in terms of their online and e-commerce prowess. Jones explains: “The customer experience is a different one from an ordering perspective and we have some work to do here. We are able to offer all our customers the same ‘online experience’. It’s not really needed on the jan/san side at the moment, but I believe it’s going to be big in the future, so we need to be prepared for that and work on it now.”

Yancey Jones Jr, COO, The Supply Room

[Online] is not really needed on the jan/san side at the moment, but I believe it’s going to be big in the future, so we need to be prepared for that and work on it now Jan/san currently accounts for about 10% of The Supply Room’s total business. And it’s growing and growing fast, according to Jones. “The Lawrence acquisition aside, the jan/san category has been increasing for us to the tune of 30-40% year over year. That’s fantastic growth, but this is ultimately going to slow down.

“Still, I venture to say that in five years’ time, our percentage of jan/san sales will have doubled. If you then factor in our breakroom and coffee side as well, I’d say that we’ll be looking at almost 50% of our business coming from those two categories.”

SPOTLIGHT

With its financial stability apparently assured, ADVEO is now looking to put its strategic growth plan into action – by Andy Braithwaite

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www.opi.net

hen pan-European wholesaler ADVEO invited some 140 vendor partners to a hastily-arranged meeting in Paris, France, at the end of June, eyebrows were raised as to the reason for this gathering. Was it to announce some drastic or catastrophic development? After all, the company’s financial difficulties have been well documented, recent financial results had been terrible – largely due to a lack of cash to maintain acceptable stock levels – and vendor patience was being tested by severe delays in payments.

As it turned out, the meeting had been called for more positive reasons: to confirm that ADVEO’s financial and liquidity issues had been resolved and that the company was finally ready to press on with its strategic initiatives. Another motive for bringing all the suppliers together before continental Europe closed down for the summer holidays was to send a strong message that their support would be required to help ADVEO achieve its goals.

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COMMITMENT NEEDED The day began with ADVEO CEO Jaime Carbó apologising to attendees for the “suffering” they had endured over the past 18 months and thanking them for their support during this difficult period. It ended with the company’s Procurement Director Josep Hilari calling for a new level of commitment from vendors to back the wholesaler’s projected turnaround. Hilari said ADVEO would now refuse to make pre-payments on orders and asked suppliers to “look beyond” their insured credit limits to help ADVEO get its stock levels back up.

In return, the wholesaler said it will offer a new, simplified structure, with contracts of up to three years, guaranteed payment and preferred positions for supporting vendors as the company increases its purchasing levels (for example, it referred to plans

to raise purchases by 20% year over year during the September-December 2018 period).

“Tough moments are the best to test the real level of partnership,” said Hilari, a point echoed by Carbó when he commented: “We have a good memory and you can be sure that we will remember those who supported us.”

Talking to OPI after the presentations, Carbó elaborated: “We will always pay our debts. But if vendors wait to see the cash in their account before they continue supplying us, our relationship with them will become less friendly.”

He admitted that he was asking suppliers to accept some element of risk, but the goal of the vendor meeting was to present the facts to them, so that all parties can now sit down and begin fresh negotiations.

“At the end of the day, we cannot force anyone to do something they don’t want to do,” he added.

MIXED REACTION Vendor reaction to the presentations and to the wholesaler’s call for supplier commitment was mixed. Some appreciated the level of transparency and the enthusiasm displayed by the ADVEO management team, while others felt they hadn’t really learned anything new. Further follow-ups since the event indicate that vendors have been engaging with their credit insurers to try and ease restrictions on ADVEO and underline the strategic nature of their partnership with the wholesaler. It will become clearer which vendors fall in what camp as ADVEO refines its product assortment and moves away from being a general wholesaler.

Somewhat ironically, given the fact that ADVEO was promoting an image of new-found financial stability during the vendor day, the refinancing solution that was presented, involving a €33 million ($38 million) loan from investment giant Pimco, has now been trashed. Just 24 hours before ADVEO’s shareholders were due to vote on the Pimco transaction and the

If vendors wait to see the cash in their account before they continue supplying us, our relationship with them will become less friendly To what extent the change of heart from the financial community was really due to the Tres Cantos sale or to the looming prospect of having €91 million ring-fenced for at least six years (as a result of a Pimco transaction) is not clear, but the relationship between ADVEO and its lenders certainly appears to have been tense over the past couple of years. As Carbó told OPI, at one point it had almost been a case of dangling the ‘keys of the house’ in front of the noses of the bankers and saying, “take them”.

It is also not obvious whether the latest agreement with the banks involves any changes to ADVEO’s existing debt structure.

One of the selling points of the Pimco deal, which Carbó highlighted during the vendor meeting, was that it heralded the start of a “new ADVEO” with a much more reasonable and manageable level of debt – and therefore fewer issues with the credit insurance community.

If this latest agreement with the banks does not involve any debt write-downs or restructuring, it would mean the continuation of the ‘old’ ADVEO as a highly leveraged business. Despite reduction efforts over the past three years, the company is still sitting on a debt pile of almost €200 million, of which almost €150 million is net financial debt. OPI understands that further details on this topic should emerge after this issue has gone to press.

September 2018

LONG ROAD AHEAD Assuming that there are no further twists in the ADVEO refinancing saga, there is still the small matter of winning back market share, combatting secular declines in sales and achieving sustainable, profitable growth.

According to Carbó, the past two years have been a “tsunami” of financial, business, strategic and HR issues. However, while the company has been severely constrained by these problems, plenty has happened behind the scenes. “We have changed everything, and we are now ready from a business perspective,” he affirmed.

Two key areas where Carbó believes ADVEO has the upper hand over its rivals is IT and logistics. The company’s digital transformation project began in 2017 and has involved a strategic partnership with Microsoft, a new ADVEO eShop running on the Hybris e-commerce platform (which replaces the old Oscarnet

Jaime Carbó: “Tsunami” of financial, business, strategic and HR issues

system), and a host of other initiatives such as digital content and artificial intelligence tools. “We are four steps ahead of the rest of the market,” he claimed.

On the distribution front, the goal has been to move away from a traditional B2B model to a “360° multi-logistics model that is end-user oriented”.

Changes have been completed in Spain; Germany has moved to a single distribution location; Italy is in the process of moving to a new warehouse; France will do the same in the first quarter of 2019; and there are plans afoot for Belgium.

The broad plan is to attract new resellers to the ADVEO platform with the promise that they will now be able to compete with larger and richer e-commerce players. Hand in hand with that goes a rebranding of the Calipage network to give it a fresher image as ADVEO looks to build it into a true European brand – currently, around 60% of its members are based in France. The Netherlands is being targeted after the recent acquisition of the Staples Office Centre stores

by Quantore member KantoorExpert, and the first two Calipage stores in the country have just opened.

Other growth strategies include own brands and the development of a direct model. Following the introduction of stationery brand Pergamy and jan/san brand Albiore, an EOS brand called Kineon will be launched in 2019. The idea is to replace the ‘category killer’ 5-Star private label with brands that create more value for resellers as well as ADVEO. That, of course, will take some doing.

For the direct business, there are no plans to transform ADVEO into a Lyreco or Staples Business Advantage. “If we achieve €20 million in direct sales in Spain by 2020, I will be happy with that,” admitted Carbó. “We see direct more as a way to offset some of the declines in our traditional business.”

All these initiatives look fine on a PowerPoint presentation. But now, in the words of Carbó, the wholesaler has to go out in the market and “sell, sell, sell”. That is likely to lead to some price disruption in the near term as the company tries to win back lost share. As he concluded: “Everything will start with the price. You have to be prepared to invest in that if you want to take back share.”

To paraphrase Viking Direct legend Irwin Helford, maybe ADVEO will ultimately be able to keep customers on its service levels after first winning them on price.

SPOTLIGHT ADVEO

resulting new group structure, it was announced that the wholesaler’s banks had agreed to offer €20 million in the form of a loan.

The banks committed to the extra funding after ADVEO found a buyer for its Tres Cantos warehouse near Madrid, Spain. The facility is to be sold for €22 million, with ADVEO receiving just over €8 million in cash from the sale, which is expected to be finalised no later than 2 October.

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A century

ADVERTORIAL

OF SUCCESS

It’s the 100th year in business for Victor Technology, but there’s nothing old or staid about this company that started making adding machines back in 1918

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ictor Technology is celebrating its 100th anniversary this year. Widely regarded as a leading supplier of calculator products across North America, the company sells a variety of other office products through the OP channel. OPI speaks to Victor’s President John Ringlein and CEO Jordan Feiger about the company’s history, strategy and future plans.

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OPI: Many of our readers will be familiar with the Victor brand, but may not know a great deal of detail. Could you chart your early history please?

Jordan Feiger: The Victor Adding Machine Company was founded in Chicago in 1918. At that time the very first adding machines had been invented, but they were large, expensive devices that only wealthy businesses could afford. Victor’s vision was to make them more durable, portable and affordable for small businesses – helping to free them from the time-consuming and error-prone accounting methods using handwritten maths.

Over time, Victor expanded the functionality of its devices beyond simple addition and subtraction. By 1947 it had become the world’s largest manufacturer of adding machines. In the second half of the 20th century it would play a leading role in the development of electronic displays and handheld calculators.

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Model 200 – The 1920s machine that made Victor an established brand

The DC450 Electric Dual-Monitor Standing Desk

OPI: What have been Victor’s major milestones in recent times?

JF: In 2006, the company was acquired by John Ringlein and myself. Victor then began to expand its calculator business with innovative products such as the Victor 1310 Big Print and the PL8000 Printing Calculator. It was also the first US company to launch calculators made with recycled plastic and antimicrobial protection.

In 2015, we took over the US and Latin American distribution of the Sharp brand of calculators, thereby becoming the largest business calculator company in North America.

Over the past few years, the company has entered other OP categories with the acquisition of KORR plastic desktop accessories and the introduction of our Midnight Black Collection of premium wood desktop accessories and the patented EZ-Read Ruler. In 2014, Victor expanded into the standing desk category and continues to lead the way in innovative products in that segment, with the launch this year of models such as the DC450 Electric Dual-Monitor Standing Desk and the DCX760 Height-Adjustable Standing Desk.

OPI: What makes Victor an iconic American brand that people care about?

John Ringlein: The Victor brand is the embodiment of American ingenuity, durability, quality and style.

Between 1920 and the early 1980s there were no personal computers available to crunch numbers, and companies used adding machines and printing calculators to manage their financial transactions.

Victor was the most popular brand for decades.

We’ve heard dozens of people tell stories of their grandparents’ love for Victor adding machines. And still thousands of vintage machines can be found in offices, garages, closets and museums all over the country. Victor was a big part of the growth of America – our products were workhorses for companies big and small.

OPI: Why do you think resellers and independent dealers in particular are keen to work with you?

OPI: Who do you see as your main end-user target audience and how has that changed over the past 100 years?

JR: While our products are designed and marketed to the demanding business consumer, Victor’s main target audience is quite broad. People often assume that printing calculators are targeted at accountants, but this isn’t true. Clerks, bookkeepers, cashiers, managers, purchasing agents and many other office workers all continue to use printing calculators.

We also provide scientific calculators, pocket calculators and desktop calculators – almost every person has owned one of these at some time in their life. Our desk accessories and standing desks are targeted at anyone with an office, including businesses, schools, government departments, manufacturing, healthcare, etc.

JF: While many things have changed over the past 100 years, Victor’s commitment to high standards of quality, customer support and the introduction of innovative features has been its consistent ethos.

OPI: How would you best describe your current go-to-market strategy?

JR: Victor’s primary method of selling product is through resellers. This includes our core of independent dealers as well as large contract companies – wholesalers Essendant and SP Richards do a great job of giving our products exposure through thousands of companies. In the past decade, our business has shifted to larger resellers due to consolidation, with Amazon in particular having grown quickly for us over the past five years.

The DCX760 Height-Adjustable Standing Desk

becoming an increasingly important and necessary element of our marketing strategy. Consequently, social media and online advertising have become an integral part of this.

OPI: What are the main trends you see across the product ranges the company sells?

JF: The calculator industry is strong and stable.

Business calculators continue to be in high demand as there are few alternatives which can efficiently and accurately add multiple numbers quickly, and we continue to launch new products each year.

Victor was a big part of the growth of America – our products were workhorses for companies big and small

Victor’s best-selling printing calculator, the 1240-3A

Our other business segments are experiencing rapid industry and category growth, especially our standing desk line – we’ve launched another three innovative products this year and they have all been very well received by our resellers as well as the end-user community.

OPI: As you celebrate your 100th anniversary, what’s your present focus and where are you headed in the future?

JF: The immediate focus is on developing new product categories which will provide great value and delight our business customers. Currently, that means expanding our standing desk line to better establish ourselves in this rapidly growing product category.

Looking towards the future, we are always open to new product ideas.

JR: Over the next 100 years Victor will continue to be a calculator company. This is our foundation, this is what we do and as the category slowly consolidates Victor will be the last one standing.

However, at the same time we will continue to expand into other categories through organic growth, partnerships and acquisitions. As a company we pride ourselves on having the flexibility and mindset to take advantage of any opportunities that come our way.

September 2018

OPI: Which have been the most efficient sales and marketing tools for you? And how much of a role does social media play compared to more traditional methods?

JR: The most efficient approach for marketing calculators and desktop accessories is to make sure resellers offer our full line, together with the excellent additional content, images and videos that we provide. For standing desk items, we’ve had success with YouTube videos that showcase our products and compare their features with those of our competitors.

JF: Delivering our brand message directly to end users is

ADVERTORIAL Victor Technology

JR: Victor is the only calculator company that sells directly to independent dealers. Our relationships with buying groups such as DPCG, Office Partners, TriMega and Independent Stationers go back to their founding days. Our minimum for prepaid freight is only $300 and dealers can order in any quantity they like. We also drop-ship our standing desk products for dealers.

We have an exceptional customer service team located at our offices in Bolingbrook, Illinois. Dealers really appreciate our flexibility and support, and our marketing staff works with them directly to create custom flyers, email blasts and web banners.

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EVENT

ABC REVIEW

In search of THE BLUE OCEAN

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his year’s Advantage Business Conference (ABC) in San Antonio, Texas, took place from 19-22 August against a backdrop of uncertainty in the US office products wholesaling channel. Conference host SP Richards (SPR) is obviously right in the middle of that ‘uncertainty’, providing a major talking point for the more than 2,000 delegates in attendance. But while SPR executives, including ABC emcee and SVP of Sales and Marketing Bryan Wight and President/ CEO Rick Toppin didn’t avoid the topic, disclosure rules prevented them from delving too deeply into the proposed merger with fellow wholesaler Essendant.

In his opening remarks, Wight’s message was positive if a little cautious. Small businesses are the backbone of the US economy, he said, and independent dealers in our industry are highly representative of that strong backbone. But there are plenty of challenges and whichever way the Staples/ Essendant/SPR story pans out, the independent dealer channel needs a strong wholesale component.

BLUE VERSUS RED OCEAN Blue ocean opportunities was a term much bandied about in the General Sessions, by keynote speaker Peter Sheahan and during the seminars. This essentially means an outlook that moves away from a red ocean of competition and commoditisation to a blue ocean of a new uncontested marketplace.

According to Toppin, SPR’s blue ocean potential lies in product diversification, a focus on its proprietary brands and helping dealers with their direct-buy strategy. Certainly the former two were very much in evidence during the Business Solutions Expo on the second full day of the event. Over 650 vendor representatives were in attendance from about 250 companies – 21 of them first-timers at the ABC – complemented by SPR’s booths showing its own brands and services, and stands by a variety of technology providers as well as dealer groups.

The seminar schedule also covered in some detail just how that potential could be unleashed by dealers.

Sessions ranged from the practical to the philosophical, and from the product-oriented to the sales-driven.

Delegates learned how to maximise the use of social media platform LinkedIn, for example, how to benefit from the US tax reforms and how to avoid costly and time-wasting sales blunders. Two sessions, run by the furniture and facilities, breakroom and safety teams at SPR, as well as a presentation

by Safco Products’ Josh Kerst on workplace furniture needs, illustrated how important diversification is not just to SPR, but also to dealers.

Small businesses are the backbone of the US economy [...] and independent dealers in our industry are highly representative of that strong backbone WHERE NEXT?

The next Advantage Business Conference will take place in San Diego, California, from 7-10 August 2019.

Perhaps the most popular session of the day was that by NOPA’s President Mike Tucker. Amazon and how independent dealers can fight back against this ‘invisible competitor’ was the theme, as Tucker made a memorable entrance disguised as The Invisible Man, dishing out $100 bills – not real ones, unfortunately – to members of the audience. He provided delegates with an arsenal of facts and figures about Amazon, as well as details of resources to enable them to present convincing arguments to customers as to why they should not be working with Amazon.

What all the sessions had in common was a refreshing, very high level of engagement and interactivity between presenters and delegates, with plenty of questions asked.

Indeed, given all the question marks over the future of the US OP space, this was a surprisingly upbeat ABC that gave all attendees a great opportunity to come together and talk – always a step in the right direction.

September 2018 39

EVENT NAOPA REVIEW

Winning in Texas: NAOPA 2018

A total of six trophies were handed out at the ninth North American Office Products Awards during SP Richards’ ABC event. Find out more about the winning personalities and products

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INDUSTRY ACHIEVEMENT Winner: Jim O’Brien Usually the last NAOPA to be announced, this year’s Industry Achievement trophy was the first one to be handed out during the opening General Session of the ABC. And there was a good reason for that, since it went to none other than SP Richards’ (SPR) very own Jim O’Brien who retired at the end of last year.

The award was introduced by SPR SVP of Sales Don Mikolasy, who paid tribute to O’Brien’s life-long career in the office products industry and specifically to his past 30 years at SPR, where he started in 1987 as General Manager of the company’s Hartford, Connecticut, branch.

Mikolasy began working with O’Brien in 2002 when the latter relocated to Atlanta to accept a promotion to VP of Dealer Development. In that role, said Mikolasy, he built a team that was solely focused on creating a variety of sales and marketing tools to enable independent dealer customers to effectively compete and win in the marketplace. That team was able to capitalise on O’Brien’s extensive knowledge and field experience. The results were evolutionary and included innovative new tools, such as the consumer-priced matrix catalogue for dealers.

O’Brien’s commitment to the independent dealer channel (IDC) was legendary and his passion for the IDC was never more evident than during the ABCs which he was instrumental in first launching and then spearheading for 19 years.

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YOUNG EXECUTIVE OF THE YEAR Winner: Myers Jordan, Herald Office Solutions The Young Executive of the Year award is fast becoming an established feature of the NAOPA. This year honours a person who has only been in the OP industry for five years, having first graduated from The Citadel in 2013 and then receiving an MBA from the University of South Carolina in 2015.

But in that time he has shown a huge amount of initiative, both inside and outside of the family business, as his father Thomas Jordan, President of Herald Office Solutions, pointed out. He tackles any projects put in front of him, is heavily involved with the industry’s millennial generation through SPR’s YES! as well as TriMega’s NEXT committees, and has been instrumental in moving forward Herald’s breakroom and jan/san categories. He’s a true potential leader of the future – congratulations to Herald Office Solutions’ Myers Jordan.

Indeed, as emcee of the ABCs, O’Brien further strengthened his reputation for being hugely engaged with the dealer community.

Just how much dealers appreciate that passion and engagement was evident when he walked onto the stage to accept the award to a standing ovation and rapturous applause from a packed auditorium of delegates and SPR staff.

Modest and humble, O’Brien spoke of his time at SPR and support of independents as a “labour of love”. His advice to dealers? “Stay focused and find a way to grow your business.”

NAOPA 2018 EVENT

PROFESSIONAL OF THE YEAR Winner: Yancey Jones Jr, The Supply Room The Professional of the Year award also went to a personality in a family business in our industry which, incidentally, is one of the biggest independent dealers in the US. This is a person who has become a real “go-to” executive in our sector, somebody who is engaged and progressive, who drives the business forward and thinks outside the box.

He’s also exceptional at running the company on a day-to-day basis with his brother and his father. Indeed, it was his brother Dutch Jones, who presented this award, culminating in a heartfelt and emotional embrace by the two. The Professional of the Year trophy went to Yancey Jones Jr, COO of acquisitive independent, The Supply Room in Virginia, US. “Shocked and honoured” to be receiving the award and in typical positive fashion, Yancey Jr acknowledged all the challenges of the industry – much talked about over the course of the ABC – but prefers to adopt a resilient attitude, instead viewing them as opportunities. Very warm congratulations and a hearty well done go to this year’s Professional of the Year.

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INNOVATION OF THE YEAR Winner: 3M – Post-it Extreme Notes Nothing determines the success of an industry more than innovation. This particular award seeks to discover truly groundbreaking products and ensure they receive the recognition they deserve. Functionality, design, originality, potential to generate revenue, and excellent supporting marketing material and content, especially video, are core criteria that have to be met.

The winner was an undisputed frontrunner – 3M Post-it Extreme Notes. These notes are designed to facilitate communication in tough conditions. Made with ultra-strong Dura-Hold paper and adhesive, they stick securely to a range of textured surfaces, including raw wood, bricks, cement, tiles, steel and more. Post-it Extreme Notes are durable and water-resistant, so they can withstand extreme conditions both indoors and outdoors.

Receiving the award, Vonnie Provinzino, Shopper Marketing Manager of 3M’s Stationery & Office Supplies Division, said: “3M is incredibly honoured to receive the Innovation of the Year award from OPI. At 3M, our team is committed to bringing new technologies to new consumers to help improve productivity and communication in their everyday lives.

“Post-it️ Extreme Notes were developed for consumers working outside of traditional office spaces and we’ve been amazed at the positive response we’ve received on the product’s performance. We’ve heard from workers across a wide array of verticals including manufacturing, restaurant/food service and healthcare.”

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BUSINESS PRODUCT OF THE YEAR Winner: MMF Industries –TruVue Verification System This vendor award recognises simply the best product in any vertical. The judges were looking for a number of criteria to be met: product innovation, design and functionality; if it is an existing product, how has the product improved upon previous incarnations; benefits for the reseller and the consumer; and the level of marketing support, innovation and initiatives in promoting the product to the end-user.

The winner of this category is a company that has become very familiar to the judges, having also been a NAOPA recipient both in 2016 and 2017.

It is MMF Industries and the product is the TruVue Verification System.

A delighted Ivelisse Gomez, Senior Manager of New Product Development and Marketing at MMF, told OPI: “The TruVue Verification System is a space-saving, multi-purpose product that helps users minimise loss by identifying counterfeit bills, fake identification cards and cloned credit cards. TruVue helps businesses realise measurable improvements by streamlining verification processes.

The great feedback we’ve received from distributors and dealers in the retail and hospitality industries are testament to the early success of TruVue and the continued evolution and growth of our brand.”

PEOPLE’S CHOICE Winner: ACCO Brands – Swingline Stack-and-Shred Auto Feed Shredder, SmarTech-enabled 750X, 600X, 300X The final vendor award announced at the ABC was the People’s Choice. This is the product that is picked by OPI readers and ABC delegates. And it’s those delegates that tipped the balance in favour of ACCO Brands’ shredder with a SmarTech-enabled app as voting went right down to the wire on the last day of the ABC. This Swingline shredder takes the Stack-and-Shred’s time-saving and productivity-enriching feature to the next level by sending notifications to the SmarTech app on a user’s phone or tablet, communicating the status of the shred job.

According to Cory Jones, Associate Product Manager at ACCO Brands, initial feedback to the app, which was launched in January, has been overwhelmingly positive, particularly from its existing customer base that is already familiar with the Stack-and-Shred Auto Feed shredders. He said: “This is the world’s first shredder with a mobile app and we’re incredibly proud of this achievement and of winning the award.”

His colleague, National Account Manager Terri Freeman, added: “The app is particularly attractive to facilities managers who take care of a whole range of shredders in a building. It tells them when a job is done or when there’s something wrong, saving them a lot of time and making them much more efficient.”

Congratulations to ACCO Brands for reinvigorating an established category with a brand new contemporary concept.

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EVENT

Go EPIC in THE BIG EASY EPIC PREVIEW

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www.opi.net

he thinking behind the first EPIC show back in 2013, when it was introduced

by US dealer groups TriMega and Independent Stationers, was to “respond to supplier requests to reduce cost from the channel and address annual meeting redundancies in our OP world”. After this year’s outing, however, there will be one fewer trade show to attend.

Despite a positive spin being placed on former events, statements released by the organisers suggest dealer attendance at the show was falling. That fact, combined with the previously announced plans by both SP Richards and Essendant to host shows in 2019 (although there are some question marks hanging over this at the moment for obvious reasons) and the concern among manufacturers about the expense of supporting multiple conferences, led to the decision by the TriMega board in April this year to pull the plug on any further incarnations of EPIC. But there’s still one show to go which, both TriMega and IS say, they’re very much looking forward to.

Taking place in New Orleans, Louisiana, from 15-17 October – the city that is affectionately known as The Big Easy – the word ‘BIG’ has incidentally been dropped from the event branding this year, in favour of a tagline of ‘Disrupt Ordinary’. A fitting choice perhaps, given the state of flux the independent dealer channel finds itself in at the moment.

44

FAMILIAR FORMAT The format for the show is similar to previous years, with the opening day consisting of a sales boot camp and a number of optional sightseeing activities.

The afternoon ends with a new charity event, the Southern Bayou Scavenger Hunt, which will see individuals or teams of up to four people searching the nooks and crannies of the Hyatt Regency New

Orleans in search of clues. All monies raised go to City of Hope. Following the hunt, there will be the traditional Welcome Reception for all attendees.

EPIC gets going in earnest the following morning, with a welcome address followed by member meetings for each of the buying groups. Immediately after lunch, there will be seminars for IS members, while TriMega members will be invited to attend a Town Hall-style meeting with the board. These events will be followed by an afternoon of education forums.

The forums this year will be hosted by a number of guest moderators, such as Jennifer Schulman of Fortune Web Marketing, Rick Marlette of OPSoftware and NOPA’s Mike Tucker. Topics covered range from training tips to ways to compete against the threat of Amazon. There will also be sessions on national contracts led by the EPIC Business Essentials team.

NETWORKING EXPO After what will undoubtedly be a memorable evening of networking and entertainment with a cocktail reception and then dinner at the Grand Oaks Mansion, the final day of EPIC is, as last year, dedicated to the exhibition.

2018 sees the introduction of a new show floor incentive called Tickets To Treasure. Attendees must collect tickets from as many different participating exhibitors as possible to increase their chances to win $5,000. The tickets are earned by having ‘meaningful conversations’ with those exhibitors however, so there can be no shirking on the networking! The winner of that competition will be decided at the ‘Let The Good Times Roll’ prize drawing reception, which closes official business for the day.

With all the hard work done, EPIC wraps up with a trip to the city’s famous French Quarter and Frenchman Street.

EPIC 2018 takes place from 15-17 October at the Hyatt Regency in New Orleans, US.

EVENT

RISING to the CHALLENGE CLIMB OF LIFE PREVIEW

As the 12th Climb of Life campaign for the ICR is ramping up, that money is organisers and fundraisers alike are hoping to reach another milestone

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verything to do with the Climb of Life (COL) presents a challenge – the organisation of the event, the climb itself, of course, but also the fundraising.

This year, the stakes are even higher. As the 2018 theme of ‘THE £1 MILLION MOUNTAIN CHALLENGE 4 ICR’ implies, the goal is to reach a total of £1 million ($1.3 million) in support of the Institute of Cancer Research (ICR) over the past 12 years. As COL founder, industry veteran and Chairman of the BOSS Business Supplies Charity Graeme Chapman MBE explains: “To reach the magical £1 million for the

ICR, we have to hit a fundraising total of £100,000 this year. If we achieve this, it would also mean we’ve raised £100,000 for the fourth year in a row which would be phenomenal.”

On 2nd November 2018, from the Swan Hotel in beautiful Grasmere, about 120 volunteers from the UK’s business supplies industry will be setting out in their walking boots, ski jackets, gloves and woolly hats to scale some of the toughest peaks in England’s Lake District. As the apparel suggests, conditions are typically wintery and very breezy, adding to the challenge. Once again, two of the

WHY SUPPORT COL and the ICR?

www.opi.net

Three of the main fundraisers of COL are VOW/EVO Group, Hamelin Brands UK and OPI. Here’s why they choose to take part in this important UK industry initiative and continue to be at the forefront of COL’s fundraising activities

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PHILIP BEER, MANAGING DIRECTOR, HAMELIN BRANDS UK

Hamelin Brands became a standalone fundraiser for COL in 2014. We had participated via VOW for several years beforehand, but decided to organise our own fundraising activities instead of just giving an annual donation. We also saw it as a great way to spend some time out of negotiations with some of our major customers!

Fundraising is always a chore as you go back every year to the same group of individuals and companies. This is why getting new people involved really helps as it widens the net. Hamelin’s customers, suppliers and staff and even employees’ families have all been very supportive. If any of them are reading this now – thank you again!

Over the course of the year, we raise money for COL within Hamelin with initiatives like ‘bring a cake to work’, auctioning gifts and fancy dress days. All the proceeds go to the ICR. In terms of my own personal begging emails and requests for donations, any activities usually involve me making a fool of myself in order to get a laugh and hopefully some money! This year I

have gone early with my fundraising as my brother and I took part in Ventouxman, a Half Ironman, with the bike leg of it going up 2,000 metres to the top of Mont Ventoux – that’s the iconic Tour de France bike climb. Again, all the monies are going to COL and the ICR. This month, Hamelin and I personally are supporting the new spin-off event, the Ride of Life. This is part of our current wave of fundraising efforts to push up the total before the final leg that concludes with the actual Climb of Life in early November. And then we will stop until next year.

Originally, we started COL to support VOW as an important customer. We continue because we have seen the incredible effort Graeme Chapman and his team put into it. And we know how important the money is to the ICR – the organisation itself has people climbing the mountains of the Lake District every year.

Importantly, they also explain what the monies are being used for and the progress that’s being made with cancer research from year to year.

My team and I have made new friends in the whole process and have enjoyed that part of the experience immensely. And having done a half reasonable job fundraising over the past few years, I can’t imagine why we would want to stop!

This year, COL for the first time has added a spin-off sister event to its mountain climbing challenge. Coordinated by Durable UK Managing Director Sean Starkey, the inaugural Ride of Life (ROL) will take place on 7 September, starting from the ICR campus in Sutton, Surrey.

ROL will consist of two routes: The longer 100 km (65 miles) course takes in the iconic climbs of Leith Hill and Box Hill while a shorter, but still challenging 67 km (37 miles) ride also includes Box Hill, where much of the action of the 2012 London Olympics road race took place. All proceeds from ROL will also go to the ICR. (To find out more about ROL, email sean.starkey@durable-uk.com).

We need your help! To sponsor OPI, please visit www.opi.net/ COL2018. Thank you!

EVENT Climb of Life

trekkers will be ICR CEO Professor Paul Workman and his wife Liz. They will spend the day climbing mountains and in the evening talk in more depth about the ICR’s work and the progress that’s been made with cancer prevention as well as treatment.

Professor Workman says: “My wife and I always really enjoy the Climb of Life. It is a fantastic event and I am so proud to be involved. The huge efforts of everybody participating really inspire me and all my ICR colleagues to go the extra mile in our research.

“But even though great progress is being made, there is still much more work to be done. All the monies raised from COL go towards vital research at the ICR, so we can study how cancer evolves and becomes drug-resistant, and find better ways of treating the disease.”

To reach the magical £1 million for the ICR, we have to hit a fundraising total of £100,000 this year Raising that money is done in a number of ways. From braving those mountains and getting involved in a whole host of other activities such as auctions, cake sales, car washes and a wide array of sporting challenges, all sponsorship money and proceeds contribute to making the goal of finding cures and prolonging lives, and ultimately preventing cancer, a reality one day.

STEVE HAWORTH, CEO, EVO GROUP OF COMPANIES

OPI has been involved with COL for nine years now. If those years have shown us anything, it’s that the battle against cancer never stops. Yes, there are many success stories where so much progress has been made in the fight against the disease. But how often do we still see heartbreak when lives, families and friendships are shattered because of yet another devastating diagnosis or, worse, loss of life?

We got involved because we as an organisation and all the individuals in it wanted to play a tiny part in reducing the heartache that’s being caused around the globe.

True, COL is a UK initiative, but its impact is felt way beyond just our little country. The ICR works closely with cancer research organisations around the world – knowledge is shared and applied for the benefit of patients everywhere.

I am always humbled when our annual COL campaign kicks off and we get incredible feedback and sponsorship from as far-flung places as Australia, Asia and, of course, North America and the US specifically. Like the City of Hope institute in California that OPI also passionately supports, the research that our fundraising finances – in some small measure – is for the greater good of all. I am grateful that so many executives and companies realise that and dig deep in whatever measure they can. Thank you!

Last year, Michael Morris, formerly with TriMega, walked with the OPI team in the mountains of the Lake District, testifying to the international appeal of the event. This year, another well-known industry executive is coming with us – Chris Exner, who has recently joined OPI as Chief Commercial Officer (see also News, page 10). Many of the 120 trekkers will know Chris and what better way to welcome him back to our industry than while raising money at the same time.

Chris, incidentally, will also be taking part in COL’s sister event, the Ride of Life, in early September. It’s another fundraising opportunity, thanks to COL organiser Graeme Chapman and Durable UK’s Sean Starkey.

I would urge anyone to get involved with COL – the blisters and sores will heal very quickly. The pride in having contributed just that little bit will remain for much longer.

September 2018

We’ve been involved with COL since the very beginning, given the obvious connection with Graeme Chapman as a long-standing Kingfield Heath employee.

I think many people perceive COL as a VOW or EVO-linked event. I see it very simply as a group of ‘connected’ individuals, whether by profession, family or friendship, who want to take the opportunity to give something back to an incredibly worthwhile cause.

In terms of organisation, the initiative is very ably led by Graeme and a small group of volunteers who support all aspects of what is in fact a very complex undertaking. I would recommend anybody wanting to get involved in supporting this year’s £1 million mountain challenge for the ICR to get in touch with Graeme.

In the meantime, my colleagues and I will contribute by getting wet and cold in early November. But there’s no doubt that we’ll have a huge sense of achievement and satisfaction as we trek the fells of the Lake District on behalf of those who really need our help!

STEVE HILLEARD, CEO, OPI

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9 ENTRIES CALL FOR

DO YOUR ACHIEVEMENTS DESERVE TO BE RECOGNISED

BY OUR INDUSTRY? If you’re doing something great, make sure you enter the 18th annual European Office Products Awards (EOPA).

You could be one of the winners in 2019!

CATEGORIES

Entries and nominations are now being accepted in the following categories:

WINNING AN AWARD CAN MAKE A REAL DIFFERENCE TO YOUR BUSINESS AND IT COULDN’T BE EASIER TO TAKE PART HOW TO ENTER Simply download the Call for Entries brochure on www.opi.net/EOPA2019 or email awards@opi.net for more information. You can enter as many categories as you wish and/or make a nomination for a product, company or individual – it’s free to take part

l Product of the Year l Reseller of the Year l

revenues under €100 million

revenues over €100 million l Vendor of the Year l Wholesaler of the Year l

l Marketing Campaign of the Year l Video of the Year l Initiative of the Year l Young Executive of the Year l Professional of the Year l Industry Achievement

The closing date for entries is 23 October 2018.

For more information visit www.opi.net/EOPA2019 or email awards@opi.net

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DON’T MISS 29 October Team ISSA Welcome Reception – an excellent networking opportunity that gives delegates the chance to meet or get re-acquainted with colleagues and industry peers. l 30 October A series of evening roundtable events where attendees can quiz the experts and get answers to their questions. l 31 October The first-ever ISSA Backlot Bash event – live entertainment, free food and drinks, plus special celebrity appearances, including from the Dallas Cowboys cheerleaders. l 1 November This day includes an AT&T stadium tour, the home of American football team, the Dallas Cowboys, where delegates can find out about the venue’s cleaning strategies and techniques as well as enjoy some rare stadium views. l

CLEANING in ISSA SHOW NORTH AMERICA 2018 PREVIEW

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his year’s ISSA Show North America is returning to Dallas, Texas, for the first time since 1997. And as much as the city has changed and evolved over the past 21 year, so has this event for the global cleaning industry, billed as ‘The One Show for Facility Solutions’. The show, held from 29 October to 1 November at the Kay Bailey Hutchison Convention Center, brings together executives and leaders from all segments of the cleaning industry. It offers a platform for manufacturers, distributors and facility service providers to connect, do business and share information.

More than 750 exhibitors from 24 countries will showcase their latest innovations during the exhibition, which typically attracts over 16,000 cleaning and facilities supplies professionals. But delegates don’t just come for the expo and the myriad of new products on the market. They also want to learn about the large and small issues in the industry, take that knowledge back to their companies and apply it. And they’ve come to the right place at the ISSA Show. In over 90 in-depth seminars and hands-on workshops, a wide array of experts will focus on the industry’s biggest topics – from career growth and employee management to budgetary challenges, compliance and industry benchmarking.

Next year’s ISSA Show North America will be held from 18-21 November 2019 in Las Vegas, US.

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September 2018

STAR-STUDDED SPEAKER LINE-UP The keynote speakers have been carefully selected to make this year’s show something special. The first of these is David Goggins who will kick-start the event week with his ‘Complacency kills’ talk. A retired Navy SEAL and Guinness World Record holder, Goggins uses his real-life experiences to reveal what it takes to ensure a successful mission, and how banishing negative thoughts and cultivating the right mindset are key to maximising your potential.

Another keynote is best-selling author and former publisher of SUCCESS magazine Darren Hardy.

He will speak about ‘Igniting the compound effect: how to jump-start your income, your life and your success’. Hardy will relate his own extraordinary journey to success and the knowledge he has gathered from interviewing the most successful people of our time, distilling it into the core principles needed to obtain high levels of achievement.

The final speaker will be former US President, and born and bred Texan, George W Bush. He will discuss world events, politics and the need for strong leadership in today’s business environment. Plus, he will talk about his life lessons and offer thoughts on how America can move towards more unity.

Commenting on the speaker line-up, ISSA Sales, Trade Shows and Publications VP Kim Althoff says: “We’ve chosen the first two of our speakers because of their ability to overcome adversity – they will help attendees do the same. And because the show is in Dallas this year, we wanted the speaker roster to crescendo with a fascinating American figure and a true Texan.” A fitting finale it certainly will be.

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HOW TO...

GET

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digital business

Progressive business leaders know that in order to survive, they have to embrace technology and all things digital. But how? Here’s part one of our digital transformation guide

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t’s not exactly breaking news that new invasive entrants are disrupting established office products ecosystems with their digital-first business operating models. So how can leaders ensure their organisations stay off the list of endangered businesses in a disrupted world? ‘Digital transformation’ is the mantra, but what does that actually entail and how do you prepare your organisation for it?

It’s certainly survival of the fittest out there and it makes sense to get fit. In fact, there is a close analogy between digital transformation and the process of getting physically fit. You start with a commitment to change, usually inspired by a moment of truth. Then you assess where you’re starting from and identify the areas you need to work on. Next you create a vivid mental model of what you’re aiming to become, before creating an integrated programme to make it happen. In essence, it’s as simple as that. But let’s take a look at the process in a little more detail:

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Step 1: Owning the moment of truth There’s no secret sauce to get fit for digital business. Just like getting into great physical shape, it boils down to good planning coupled with motivation and commitment. All personal trainers will tell you that you need clear targets and a well-balanced workout programme to get fit. They will also tell you that there’s no silver bullet – no magic technology or tool that will effortlessly transform the weak into the strong and the slow into the fast. It’s the same in business.

Ultimately, it’s about the will of a company’s leadership team to affect deep and meaningful change because they have understood that there is no alternative. They have reached a moment of truth (MoT) and collectively decided to own it.

For some, it’s the simple realisation that they need to go deeper with their digital strategy to fuel faster growth. For these business leaders, it’s a proactive, offensive change.

These are typically companies that are already keeping up, but want to accelerate growth by making better use of digital channels and technology.

For others, it’s more defensive and reactive, a response to a business platform that is already on fire due to new customer demands, new digitally-focused market entrants or established competitors that have got their digital business act together already.

In my experience, every transformation starts from this moment of truth, which in turn leads to an honest assessment of the gap between where you are now and where you need to be. Only then are leaders aligned and emotionally ready to commit to making meaningful change happen.

Moment of truth Tracking progress

Define your fitness programme

Fitness Assessment THE GET FIT FOR DIGITAL BUSINESS PROCESS

Visualisation

Warm-up

Step 3: Visualisation An important tool to get yourself physically fit is visualisation, motivating yourself by imagining how you will look and feel when you’ve got into shape.

In the same way, digital technology provides the opportunity to create a renewed vision for your business. You have to be clear about where you are leading your team, so it’s important to vividly paint the big picture of the organisation – culturally and operationally – as it would look in a future successful state. A good vision is the answer to the question: “If the organisation were to achieve all of its strategic goals to thrive within a digital marketplace, what would it look like five years from now?”

The process of renewing your vision, mission and values provides the context to review your business model, question the way you market and position yourself, re-examine your target market and your customers’ journey and the experience they have interacting with you across touchpoints.

In a digital world where it’s essential to provide consistent, contextual messaging and an integrated experience across a myriad of channels, a compelling vision is more important than ever. It’s part of the foundation for change; if you skimp on it you’re going to get subsidence and that’s expensive to put right.

Rob Laurens, founder and Principal Consultant at Kaisen Digital, has spent the past 20 years helping organisations harness digital ways of working to accelerate growth, minimise waste and deliver bigger profits.

Working with SMEs as well as FTSE100 companies, he guides and coaches business leaders through the process of change, identifying and closing the capability gaps of their people, processes and platforms.

There’s no secret sauce to get fit for digital business. [...] it boils down to good planning coupled with motivation and commitment Step 6: Tracking progress There are plenty of metrics you can use to track your journey to digital business fitness. Which ones you choose will be dependent on your industry, whether you are a B2B or B2C organisation, the digital transformation focus areas you have selected and your current level of digital maturity. The important thing is to define the KPIs, ensure you can track them effectively and review them regularly to ensure the programme remains on course.

So this is the ‘get fit for digital’ process. Next month, we’ll look at the six areas that every leader needs to focus on in order to compete more effectively in a digital world. I call it the ‘six pack’ – the source of modern business strength, speed and agility.

September 2018

Step 4: Warm up Before you start your get-fit workout programme, it’s sensible to warm up, getting the organisation ready for action and reducing the chance of the stresses and strains that often impede progress. Think of your team as muscles that need stretching to increase their flexibility, heighten blood flow and reduce resistance.

Warming up in the digital fitness context is less about preparing physiologically. An organisation needs to be readied for change psychologically.

Getting fit here relies on the actions of multiple employees working together in a coordinated manner. Each one of them must alter their existing habits and collaborate more effectively to support the organisation’s digital business goals.

Simply demanding change just doesn’t work.

People rarely change their thinking and behaviours just because they are told to do so. Time and effort spent in preparation will be the difference between success and failure, because the real challenge of change is human rather than technological. The team must understand the reason their culture and way of working needs to change, what that change will actually look like and their individual role in making it happen.

Step 5: Implementation roadmap As a business leader, you will need to be clear on the sort of transformation you want so that the wider team buys in and stays on side. It shouldn’t be assumed that everybody thinks of digital transformation in the same way. For instance, one person in the leadership team may define it as a complete re-engineering of your business model based on digital technology.

Others may be more focused on the operating model. Some leaders might be thinking in terms of a digital upgrade rather than a transformation. Quite frankly, most companies aim for digital transformation and end up with mere upgrades, using technology to increase efficiency or effectiveness at something they are already doing. Increasing your marketing spend for digital channels or upgrading internal communication systems are examples of this.

It is only transformation when you use digital technology to change the way you operate, particularly around customer interactions and the way that value is created. If you discover that you are actually embarking on an upgrade instead of a transformation, ask yourself if that will get you sufficiently fit to maintain competitiveness.

HOW TO... Transform to Digital

Step 2: Fitness assessment The objective of a fitness assessment is to get a shared understanding of the current digital capability of your people, processes and platforms. This is one part of the journey which requires some outside help to check your digital vital signs and assess the shape you are in, benchmarked against the leaders and new entrants in your market.

The deliverable must be the identification of capability gaps within the organisation, together with a clear set of recommendations on areas of focus, priorities and the direction of travel. Think of it as the foundation for the creation of your digital business vision.

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5 MINUTES WITH...

Regina Henrich

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Describe yourself in one sentence?

I´m confident, ambitious, assertive, passionate and brave when investigating purposeful subjects; I can also be a little impatient at times.

What are you most proud of?

Having a family and friends who are there for me whenever I need them – together we make an exceptional team.

Favourite authors?

William McDonough and Michael Braungart.

They have a different philosophy and outlook on manufacturing and the environment. I also really enjoy the books of the Dalai Lama.

Your favourite gadget?

My smartphone. I can contact people in various ways, find directions, take pictures, play music and keep track of appointments and contacts.

The list of possible benefits increases through the use of apps.

What special skill do you possess?

I’m quite a creative person and love thinking outside the box.

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What’s your favourite cuisine?

Italian and Mexican food.

If the world had a President, who would you vote for?

I would vote for the most honest, focused, respectful, brave and passionate person who can see the bigger picture and fights for the right things in life.

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What kind of music do you like?

I really enjoy jazz music and my favourite singers are Al Jarreau, Randy Crawford and Barbra Streisand.

Where would you most like to visit?

I would love to visit the Galápagos Islands as they have the most beautiful landscapes and diverse and unique wildlife.

If you could have the answer to any question, what would you ask?

How can we transform any business strategy to ensure sustainable development in its three directions: economic, social and environmental?

What was your last online search?

I was looking for authentic, exciting and passionate speakers to enrich certain business events.

www.opi.net

What’s your guilty pleasure?

Wholegrain oats for breakfast. Before eating, I add a tablespoon of nougat cream to it.

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CAREER Q&A

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Describe your current job.

European Manager for worldwide cleaning association ISSA. It provides me with a unique opportunity to be part of a global community that makes such a valuable contribution to the business success of its members, particularly through high-level information, training and networking events.

Best compliment you’ve ever received?

Thank you for being there.

What do you do in your spare time?

I focus on my ten-year-old daughter, the rest of my family, friends, my cats and nature.

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The biggest challenges you’ve faced in your career?

Business success isn’t based on its ability to simply change. The key is to change faster than your competition and customers. I’ve been through this experience and it can be challenging in long-established and very bureaucratic company structures.

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Highlight of your career?

I’ve really appreciated being able to work with inspiring visionaries like Werner & Mertz CEO Reinhard Schneider and EPEA Switzerland CEO Albin Kälin. They both live sustainability with their heart and soul.

Your best piece of advice to someone who has just joined the OP industry?

Differentiate yourself from the competition. Business is all about the client – connect with your customers’ emotions to create trust, paving the way for loyalty as well as success.

If you could change one thing about the industry, what would it be?

Digital transformation has become important for all companies. It is all about using new technologies to find opportunities to enhance the customer experience and create revenue streams. Businesses need to realise this and find sustainable ways to adapt their approaches accordingly.

What personal item do you have on your desk?

My mobile phone which contains pictures of some of the greatest moments of my career and personal life.

FINAL WORD

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Get involved in jan/san –

IT’S WORTH IT

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’ve been involved with the office supplies community for 30 years and I’ve spent the past ten of those focused on some of the developing categories such as health and safety, cleaning and catering. It’s been really refreshing to see the enthusiasm in the reseller community in terms of selling more products to their existing customers. Everyone likes to talk about something new.

I am very passionate about the opportunity within our market to sell more cleaning supplies to these existing customers. In my experience, dealers that have external account managers visiting their customers are having huge success selling this category, especially if they appoint a jan/san category champion to offer support with the large number of enquiries.

Successful dealers don’t worry too much about what they don’t know and what they can’t do.

Instead, they focus on leading with their range of stock and creating new opportunities with their client base. It’s impossible for a sales force to have an in-depth understanding of all 20,000 products in the VOW portfolio. Having said that, there is a benefit to having some product champions within the team who can help with more difficult questions, particularly cleaning chemicals that have all manner of health and safety requirements and implications.

product is very bulky and often low value which can cause difficulties with space and logistics.

APPEAL TO MANUFACTURERS All the wholesalers and resellers in our market have had to prove themselves to the big manufacturers, as we were originally seen as small fry in a comparatively huge worldwide janitorial market. In the early days when we were talking to very large global suppliers including Georgia-Pacific, SCA (now Essity), Kimberly-Clark, Deb, GOJO and Procter &

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Debbie Nice, Facilities Supplies Category Director, VOW

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THE RIGHT PRICE Profitability is key to all companies and it’s been difficult to help resellers find the correct price level on some low-value, fast-moving products like bleach and toilet rolls. There’s now increasing confidence in selling products as part of a workplace basket and focusing on solutions and benefits rather than just price – that certainly helps.

Cost-in-use is a big factor in the janitorial sell and a lot of the focus in the VOW 2Work range of cleaning chemicals is on offering both the convenient ready-to-use spray bottle as well as the more environmentally-friendly 5-litre concentrate.

The important thing for resellers in this space is to keep up the momentum. As the range grows and business customers continue to see the office supplies channel as a place to procure cleaning supplies as well, this will be a good long-term adjacent product segment for dealers.

VOW has had to overcome many challenges in the cleaning category: with chemicals it’s mainly storage and delivery differences, while with paper disposables – our biggest sub-category – the

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All the wholesalers and resellers in our market have had to prove themselves to the big manufacturers, as we were originally seen as small fry in a comparatively huge worldwide janitorial market

Gamble, they needed to be convinced that we were a credible alternative to their existing supply chain partners.

There’s no doubt that our early relationships with new suppliers were helped by the success of other wholesalers such as SP Richards in the US, for example, where these manufacturers had already seen some success.

As far as product offering is concerned, I believe it’s critical to have a range that comprises the key domestic brands like Flash, Fairy, Andrex and Triple Velvet in the UK as well stock from global names like GOJO and Deb. And you need to have some exclusive products too – our 2Work range fits that bill.

FACE-TO-FACE SELL Overall, jan/san manufacturers have seen a real benefit in working with the dealer community. Cleaning supplies are one of the essential products in the workplace that benefit from a face-to-face sell, rather than the more impersonal internet quick fix which is much more price-driven.

There’s so much opportunity in this category and I would urge anybody to jump on board.

NEXT ISSUE Big Interview Robert Brech, Group Managing Director, Kaut-Bullinger Top 100 Who’s who in the business supplies industry in 2018?

How To... ...get fit for digital, part 2 Category Update l Mailing & packaging l Stamping Research Boiling the Frog: Revisited