OPI APP JULY/AUGUST 2022 A

BIG INTERVIEW

Elina Pienimäki, Wulff Group July/August 2022

INSIDE THIS ISSUE l ODP: going it alone l Avery diversifies again l Denmaur acquires l Bureau Vallée’s CSR action l B2B live commerce – the future? l All change in the breakroom l Furniture sector boost l Diversity, equity, inclusion: good for business l Offshore productivity gains

CONTENTS 18 Big Interview An expert in finance, Elina Pienimäki heads up a solid M&A strategy at Nordics reseller Wulff Group 24 Focus The recent OPI Global Forum put the spotlight on our industry’s most pressing pain points – and offered valuable debate and some tangible solutions 28 Opinion Is live commerce a feasible selling platform in our B2B world? It’s certainly worth investigating, says Highlands’ Stu Conroy

Big Interview: Elina Pienimäki, Wulff Group

Wulff Group is a publicly listed company – the only one in our industry in the Nordics. As such, it’s not difficult to get a broad overview of this Finlandbased reseller that has been around for over 130 years. What’s much harder to find is a real insight into this B2B player which, since 2019, has been woman-led and in May 2021 caused a stir when it bought Staples Solutions’ Finnish operations for what seemed like a bargain price.

Recently, OPI had a rare – and very welcome – opportunity to get that insight. And found a lean and streamlined but highly diversified organisation with a strong M&A focus.

FOCUS: PAIN POINTS – AND HOW TO FIX THEM

35 Category Update Topsy-turvy is an apt description for the breakroom category as we enter a post-COVID era 38 Category Update Furniture for the workplace is back in demand as employers seek to tempt staff back to the office 44 Research Diversity, equity and inclusion not only add to a company’s culture, they also make good business sense 50 Review: NeoCon The workplace of the future?

Look no further than NeoCon to find out more

REGULARS 5 Comment 6 News 14 Green Thinking News 30 OPI Small Talk 52 5 minutes with...

Chris Finn 54 Final Word Rosemary Czopek

July/August 2022

Judging by comments from panellists as well as conference attendees, it wouldn’t be an exaggeration to suggest our industry is going through a serious identity crisis.

That being said, does any of it even matter to the end user? Would consumers care whether they order a pencil from an office products company, cleaning materials from a business supplies firm or a laptop riser from a workplace solutions provider? Highly doubtful, but the need for (re)definition appears to become ever greater. As one panellist said: “Hang on to the good bits, but get rid of the bad ones.”

32 Interview Toni D’Andrea talks about the ambitious plans the ISSA Pulire Network has for the EMEA region and beyond

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COMMENT The OPI team EDITORIAL Editor Heike Dieckmann +44 1462 422 143 heike.dieckmann@opi.net Deputy Editor Michelle Sturman michelle.sturman@opi.net News Editor 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 7973 186801 chris.exner@opi.net Head of Media Sales Chris Turness +44 7872 684746 chris.turness@opi.net Digital Marketing Manager Aurora Enghis aurora.enghis@opi.net

EVENTS Events Manager Lisa Haywood events@opi.net Event Programmer Sophie Carus sophie.carus@opi.net

PRODUCTION & FINANCE Studio Joel Mitchell joel.mitchell@opi.net Finance & Operations Kelly Hilleard kelly.hilleard@opi.net

PUBLISHERS CEO Steve Hilleard +44 7799 891000 steve.hilleard@opi.net Director Janet Bell +44 7771 658130 janet.bell@opi.net Executive Assistant Debbie Garrand +44 7718 660249 debbie.garrand@opi.net

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If it’s broke, fix it!

ince the last issue of OPI, we’ve had the Global Forum (page 24), we’ve had NeoCon (page 50) – both held in Chicago – and we've had the rather uninspiring news that, after all, nothing is really going to change at The ODP Corporation. Business as usual, no big deal announcement (page 6).

You can’t help but think this will not be the end, however. ODP might not be broken (up), but all the ongoing “reorganisation” and “realignment” doesn't inspire too much confidence, it has to be said.

In the wider industry, there are many other issues which need to be addressed, of course – some more worrying than others. Several were highlighted at the aforementioned OPI Global Forum which took place in late May. From serious identity concerns and seemingly crippling macroeconomic challenges to dealing both with changing customer and evolving employee expectations – it’s a veritable melting pot of topics today’s leaders are facing. And I’m not even talking about the underlying niggles and quibbles smouldering under the surface, many of which came to the fore at the conference.

Product availability, data, content, pricing and rebates are just some words thrown in the mix that are seriously rattling cages in the vendor, dealer and tech communities.

It appears the time to rightsize and get rid of some legacy procedures has well and truly come OPI is planning to address all of them with in-depth coverage over the coming months – starting with our Technology Solutions Special Issue in September. It appears the time to rightsize and get rid of some legacy procedures has well and truly come and judging by the feedback from OPI Global Forum delegates, there’s a huge amount of goodwill and collaborative spirit to make it happen.

Back to this issue of OPI, I’d like to finish on a really positive note.

As you’ll see, our Big Interview this time is with Elina Pienimäki, CEO of Nordics reseller Wulff (page 18). Not only was it fantastic to chat with Elina and get a real insight into this operator, but I also want to highlight the fact it’s the first time ever in OPI’s history we've had two female leaders back to back as our Big Interview – and I’m extremely happy about that.

As Michelle Sturman explains through many research studies, diversity, equity and inclusion make not only societal, but also HEIKE DIECKMANN, EDITOR business sense (page 44). Enough said.

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No part of this magazine may be reproduced, copied, stored in an electronic retrieval system or transmitted save with written permission or in accordance with provision of the copyright designs and patents act of 1988. Stringent efforts have been made by Office Products International to ensure accuracy. However, due principally to the fact that data cannot always be verified, it is possible that some errors or omissions may occur. Office Products International cannot accept responsibility for such errors or omissions. Office Products International accepts no responsibility for comments made by contributing authors or interviewees that may offend.

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NEWS

Analysis: Going it alone

After months of speculation, The ODP Corporation has rejected buyout offers for its consumer business and abandoned plans to split into two companies Could it be described as ‘much ado about nothing’? It’s been 18 months of offers, rejections, counter offers, negotiations and a proposed spin-off – all of which cost tens of millions of dollars in consultancy and legal fees.

And now North American business products reseller The ODP Corporation (ODP) has decided that its best strategic option at the moment is the status quo.

On 21 June, ODP announced it had decided not to divest its retail operations and consumer-facing website officedepot.com.

The group said its board had “unanimously determined it is in the best interests of the company and its shareholders not to divest the consumer business at this time”.

In addition, ODP stated: “In reaching its conclusion, the board was assisted by its financial and legal advisors, and its process included further discussions of the non-binding proposals with the potential buyers to ascertain additional details about the proposed terms and conditions.”

Office Depot, ODP Business Solutions, Veyer and Varis are better together as a value-creating enterprise at this time

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Sycamore-backed Staples made a $1 billion offer to acquire ODP’s consumer business in June 2021. This came several months after it had made a $2 billion bid to buy the whole company. In January 2022, a new party entered the fray when ODP said it had received a competing offer for the consumer business.

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STAYING TOGETHER In addition to keeping its stores, ODP confirmed it would not resume its previously announced split into two publicly listed entities – a process that had been put on hold while the two offers for the consumer business were on the table.

Citing “current market conditions” and the “benefits of maintaining purchasing and supply chain synergies”, ODP said it would maintain all its businesses under common ownership.

It looks to stay this way – for the time being at least. Company Chairman Joe Vassalluzzo said: “The completion of our internal reorganisation will make such a potential separation substantially simpler should the company determine to resume the process following a change of market conditions in the future.”

In the meantime, ODP will therefore comprise the following four divisions: • Office Depot: the retail operations, with approximately 1,000 Office Depot and OfficeMax locations, and the officedepot.com e-commerce presence.

• ODP Business Solutions, the B2B arm serving small, medium and enterprise-level companies.

It includes: the contract sales channel of ODP’s prior Office Depot Business Solutions Division; Grand & Toy in Canada; and ODP’s Federation Entities, comprising more than a dozen regional office supplies distribution businesses acquired

by ODP, which continue to operate under their own brand names.

• Veyer: ODP’s supply chain, distribution, procurement and global sourcing operation.

This procures and distributes products for both Office Depot and ODP Business Solutions as well as third-party customers.

• Varis: ODP’s new B2B digital platform technology business focused on “transforming digital commerce between buying organisations and suppliers”.

GREATER VISIBILITY ODP CEO Gerry Smith commented: “By the end of the year, [our realignment] will enable us to provide greater visibility to our investors about these operating businesses’ performance on a go-forward basis.

Moreover, because of the current scaling benefits derived from operating under the [ODP] holding company structure, Office Depot, ODP Business Solutions, Veyer and Varis are better together as a value-creating enterprise at this time.”

The stock market reacted negatively to the announcement. When the news broke, ODP’s share price fell by more than 15% to under $30 – and has been bumping along at about the same level since. This, remember, is 25% less than Sycamore’s original offer back in January 2021.

ODP declined to comment further on its decision to OPI. Sources in the US, meanwhile, suggested that there was no appetite in the capital markets for the split into two entities. They also questioned the validity of the unnamed second offer to buy the reseller’s consumer business, speculating that ODP and Sycamore were “just not on the same page” when it came to their negotiations.

It had been hoped that, by now, there would be some clarity about the future of the North American big boxes. On the contrary. ODP’s decision just raises more questions about its strategy going forward, while there still seems to be no obvious exit solution for Sycamore for its US retail, US B2B and Canadian operations.

NEWS

Essendant CEO plays down Amazon Business case study

Harry Dochelli

CPO Commerce, a subsidiary of US business products wholesaler Essendant, has been featured in a recent case study from Amazon Business – and the numbers are eye-opening.

Essendant acquired tools and equipment e-tailer CPO for $30 million in 2014 – when the wholesaler was still

known as United Stationers. Initially running a B2C model, the case study describes how CPO decided to branch out into the office and jan/san supplies categories as well as targeting business customers, with the latter proving to be challenging in terms of systems.

That’s when CPO made the “strategic decision” to shift its focus to Amazon Business to grow B2B sales, “recognising that Amazon Business had the infrastructure in place to support B2B transactions at scale”.

Since 2020, CPO has reported an average of 147% year-over-year growth in its Amazon Business sales in the office products and janitorial supplies categories, representing roughly 30% of its overall Amazon.com sales.

In the first three months of 2022, revenue from these same categories rose 90% year over year, accounting for 36% of total Amazon.com sales. It has also reported order sizes being 37% larger on Amazon Business compared with sales to individual customers.

OPI contacted Essendant’s CEO Harry Dochelli for comment on the story, which will surely have raised a few

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Private equity firm offloads imaging supplies assets

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Blackford Capital has sold off its imaging supplies portfolio, which includes Cartridge World USA and aftermarket distributor Supplies Wholesalers (SW).

The US private equity firm’s Imaging Group – which also includes International Toner Company – has been acquired by CWG International.

CWG is a subsidiary of Arlington, the imaging products group that was created in 2018 following the merger of Carolina Wholesale Group, Digitek and Arlington Industries.

Blackford re-entered the print segment in early 2018 when it acquired SW. It had previously been active in the category in the early 2000s, purchasing a number of companies before selling to private equity firm Richmont Holdings.

Instrumental in that process was Rob Leonard, an imaging supplies and office products industry veteran who is currently an Operating Partner at Blackford and CEO at Cartridge World USA. The brand licensing rights to Cartridge World USA were bought by Blackford at the end of 2019. At the time, the chain had around 230 franchised stores throughout the country. Arlington CEO Larry Huneycutt described the acquired businesses as a “natural fit” for his group, adding: “Our combined strengths and resources will be able to satisfy greater demand for a wide range of imaging supplies and solutions.”

eyebrows at the wholesaler’s reseller customer base.

He confirmed that Essendant primarily used CPO as a resource to help it learn about selling on the marketplace and dealing with Amazon. He added that tools remained very much the primary category it sells on both Amazon and Amazon Business.

Dochelli admitted that the growth percentages quoted in the case study were accurate, but highlighted that the article failed to mention the base figure for these, which was essentially zero.

“The percentages look huge,” he stated, “but in total dollars, the numbers are actually very small.”

Elaborating on the case study, Dochelli said the background to this specific piece was for Essendant to learn how to manage and put controls around the content and shopping experience for its private label brands on Amazon as well as address “misuse” of its Amazon Standard Identification Numbers.

“We also learned what we needed to improve from a content perspective, which we are in the process of implementing for all our resellers,” he concluded.

Avery continues diversification

Following on from the purchase of US gardening labels brand MasterTag at the beginning of 2022, Avery’s has now bought Netherlands-based Floramedia Group – a leader in the horticulture media market – for around $40 million. With sales offices in seven countries, its 2021 revenue was about $50 million and it achieved adjusted EBITDA of around $6 million.

This latest member of its portfolio takes Avery’s spending in the past 12 months to more than $230 million. In addition to the expansion into the horticultural vertical, Avery has acquired RFID Hotel and Plum Paper in the US, and Adelbras, Brazil’s second-largest producer of adhesive tapes.

UK paper merchant Denmaur Independent Papers has made its first acquisition since industry legend Harry Gould took a major stake in the company in 2019.

The distributor has agreed to acquire the business and assets of the Fine Paper and Conversion division (incorporating the Vision Paper and Board merchanting unit) from Middleton Paper Company, which is based in the West Midlands region of England. Middleton made its name largely through its conversion services in the graphic paper and board market, complemented by the introduction of Vision in more recent years.

The aggregate revenue of both companies is set to be more than £140 million ($170 million) and the employee headcount will be 128 once the purchase has been finalised. Middleton’s staff will continue to operate from their location in Walsall and the company’s brands will also remain under the new ownership.

In its most recent publicly available annual accounts (for the 12 months to 31 October 2020), Middleton Paper – part of the £70 million Middleton Group – generated full-year revenue of £35 million. However, it reported a pre-tax loss of almost £380,000 as sales and margins both fell due to the pandemic.

Nevertheless, Gould – who is Denmaur’s Chairman – said his company was acquiring “an ongoing and profitable operation” in Middleton. “Although a slightly different business model, the combined strengths and differences of the two companies will generate added value and a unique opportunity for the UK paper and board market going forward,” he stated.

OptiGroup buys leading Norwegian reseller

Staples Canada has purchased two of the country’s leading independent resellers, Denis Office Supplies and Furniture and its sister company Supreme Basics.

Founded in 1972, Denis describes itself as “the largest independent office supplies dealer in the east of Canada”. It serves business customers throughout Quebec, Ontario and Atlantic Canada through its network of stores/showrooms and fulfilment centres.

Supreme, meanwhile, services clients in the Prairies and Ontario regions, with a focus on office supplies and educational products.

Sycamore Partners-owned Staples Canada said it would be able to expand its product and service offerings in print, marketing, technology, facilities and commercial furniture to Denis and Supreme customers. In addition, its Staples Professional customers will benefit from a larger assortment of education and legal products from the two dealers.

In a letter to its customers, Denis said it would be “business as usual”, with the same delivery driver, account manager and customer service contact. Over the coming months, ranges will be expanded and include thousands of Staples own brand products.

Corwell joins BPGI Hungary’s largest office products wholesaler Corwell is now a member of buying consortium BPGI. Corwell – which has subsidiaries in Slovakia, the Czech Republic and Croatia – described the move as “an excellent opportunity to share ideas, knowledge and best practices among the well-respected and recognised members of the group”.

Corwell CEO László Fehér has taken up the role of representative on the BPGI Board of Managers.

IWS acquires storage supplier

Warehouse and facilities products specialist IWS Group has acquired Anco, a leading UK B2B supplier of storage solutions.

Sussex-based Anco was established in 1991 and offers more than 7,000 SKUs, covering ranges that comprise industrial racking, multi-tier projects and mezzanine flooring as well as office archive storage and modular shelving.

In addition to Anco, IWS also includes the Beaverswood, Brandsafe and Rack Group brands.

July/August 2022

Northern European packaging and facilities supplies wholesaler OptiGroup has agreed to acquire 100% of the shares of MaskeGruppen for an undisclosed sum. Maske – which generated revenue in 2021 of NOK1.2 billion ($120 million) – is a leading full-service reseller of facility and office supplies, healthcare products and industrial packaging to the private and public sector in Norway.

OptiGroup said the transaction was in line with its strategy to develop the business portfolio towards leading positions in attractive market segments. It stated that Maske will complement and further strengthen its service offering for B2B customers active in the cleaning and facility management, hotel and restaurant, healthcare and manufacturing sectors in the Nordics region.

Maske will continue to operate under its own brand name as part of OptiGroup’s Facility, Safety & Foodservice business area. OptiGroup CEO Sören Gaardboe said the deal demonstrates the company’s ability to conduct larger and strategic add-on acquisitions under the majority ownership of FSN Capital.

Staples Canada swoops for dealers

NEWS

Denmaur acquires

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NEWS

ON THE MOVE

Christophe Chambre

Karlheinz Schmidt

Bernd Zilligen

Leanne Gregg

Philip Wesolowski

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Mathieu Verstichelen

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Kati ter Horst

Chambre leaves Lyreco Long-serving Lyreco exec Christophe Chambre left the reseller at the end of June to start a new life in Sri Lanka.

Chambre joined the company as an SMB rep in 1994. He worked his way quickly up the ranks and became Managing Director of Lyreco France in 2008. Four years later, Chambre took on a group role when he was appointed Managing Director Europe.

In 2016, he was named COO and since mid-2020, has been Managing Director for the reporting zone that includes the French, Benelux, Scandinavian and German markets.

Büroring board members resign German dealer group Büroring has had to elect two supervisory board members following the surprise resignations of its Chairman Karlheinz Schmidt and Vice Chairman Bernd Zilligen.

At the group’s AGM on 24 June, the two men announced they would not stand for re-election, citing “pressure” and “unbearable tension” that had built up recently at the cooperative.

Following a process that saw two more candidates withdraw, Frank Mecklenbrauck, Managing Partner at reseller H Brottenberg, and Thomas Grzanna, Managing Director of Grzanna Büro-Service, were elected to the board.

Two new trustees at BOSS charity The BOSS Business Supplies Charity has announced the appointment of two new Trustees to its team. Leanne Gregg, Group People Director at EVO Group, is adding her HR expertise to the charity’s board. She is joined by Philip Wesolowski, Managing Director of Staedtler UK. Senior appointment at Fiducial Mathieu Verstichelen has taken on the role of Regional Director at Fiducial Office Solutions’ operations in Belgium and Luxembourg. Verstichelen joined the France-based group in 2004 as an Account Executive in the Flanders region of Belgium.

Leader departs Stora Enso Paper Kati ter Horst, the long-standing head of Stora Enso’s Paper unit, left the company at the end of June. Ter Horst had been with the manufacturer since 1996 and led the Paper division for the past eight years.

In addition to his other duties, Stora Enso CFO Seppo Parvi will assume acting responsibility for the division.

Craig Bowman

Amy Lang

Ayala Domani & Paul Munkley

Raimey Whittle

Katie Nybo

Neil Jolley

Bowman in charge at KCP UK & Ireland Kimberly-Clark Professional (KCP) has appointed Craig Bowman as General Manager for the UK & Ireland – 14 years after he started at the global giant as an intern on an industrial placement from university. Since then, the 34-year-old has held roles in sales and marketing for KCP in the UK, Dubai, Bahrain and Saudi Arabia, plus two years as General Manager in Israel.

Lang leaves Staples Amy Lang, SVP of Marketing and Strategy at Staples Stores in the US, has left the company after 16 years. The former Bain consultant has held a number of executive roles during her Staples tenure, mostly on the retail side of the business.

Officeworks announces B2B hires To support the growth of its B2B offering, Officeworks recently made two additions to its team. Ayala Domani has been named as General Manager B2B Growth, while former Winc exec Paul Munkley has joined the Australian reseller as Head of Sales – Business.

Domani has a background in technology and telecoms, including two spells at Telstra. Munkley is another former Telstra exec and also spent eight years in senior roles at OfficeMax and Winc.

Promotion for SPR’s Whittle Raimey Whittle has been named as Director of Sales – Jan/San at US wholesaler S.P. Richards (SPR). Whittle joined SPR nine years ago from Diversey and has held a variety of roles of increasing responsibility – all jan/san related – since then.

New Business Development Manager at Highlands Katie Nybo has joined Highlands as a Business Development Manager for the north-west of the US. She will be responsible for strengthening customer relationships with key accounts in the states of Washington, Oregon, Idaho, Montana, Wyoming and Alaska.

Data Direct hires Jolley UK printer and copier supplies distributor Data Direct has recruited well-known industry exec Neil Jolley.

Jolley – who has been in the copier and printer industry for more than 30 years – has been appointed to the newly created role of Purchasing and Product Support.

His responsibilities will include facilitating the flow of in-demand products between suppliers and customers, and managing redundant stock.

Xerox CEO John Visentin sadly passed away on 28 June due to complications from an ongoing illness.

Visentin – who was just 59 – joined Xerox as CEO and Vice Chairman in 2018 after activist shareholder Carl Icahn became a major shareholder in the print and technology company. Prior to that, he had managed multibillion dollar businesses in the IT services sector, including IBM Canada, IBM and Hewlett Packard Enterprise.

In his four years at Xerox, he oversaw the failed attempt to acquire HP Inc and led the OEM through COVID, a period during which demand for Xerox’s core office print and document services offerings plummeted. More recently, Visentin had been crafting a strategy to diversify Xerox, creating a separate financial arm and spinning out technology-oriented businesses from the company’s PARC innovation centre.

“John was a visionary leader who navigated the company through unprecedented times and challenges,”

said Xerox in a statement. “Well known and respected throughout the industry, his strategy ensured Xerox’s leadership position in office and production print technology and expanded the company into helping solve secular challenges with innovative solutions.

“John was passionate about his workforce and an inclusive leader known for his ‘One Boat, One Team’ call to action and mentality.”

Xerox Chairman Jim Nelson commented: “Since joining the company in May 2018, John drove Xerox forward.

As a champion for innovation, he embraced and enhanced Xerox’s legacy as a print and services provider and embarked on a transformative journey that broadened the company’s expertise and offerings to digital and IT services, financial services and disruptive technologies.

“John’s drive, energy and commitment to the business and its customers, partners and employees will be greatly missed.”

NEWS

Xerox CEO passes away Steve Bandrowczak, who has been company COO since 2018, has been named as interim CEO. He currently develops and executes the global operations strategy for Xerox and its business support functions.

OPI extends its deepest sympathies to John’s wife, five daughters and his entire family.

John Visentin

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NEWS

IN BRIEF

The future of the workplace remains a top priority for our contract customers around the world. Even amidst broader economic uncertainty, employers recognise they must develop and implement workplace strategies to support new ways of working and shifting employee preferences Andi Owen, CEO, MillerKnoll

£16,000 ($20,000 ) Raised at th Business Su e BOSS pplies Day held in Charity June

NPD launches Canada service Market research firm The NPD Group has launched its Office Supplies Retail Tracking Service in Canada. It will provide point-of-sale data for the country’s office supplies channel, including information on market size, product share and consumption

9,000+ Officeworks own brand products

Poly shareholders approve transaction The shareholders of Poly, which includes Plantronics, have given the green light to the company’s acquisition by HP Inc in a $3.3 billion deal opi.net poll

Apart from the supply chain and inflation, which is your biggest concern?

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n Softening demand n Labour shortages/ recruitment n Work-from-home trends n Cybersecurity n Sustainability/environment

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PICTURE OF THE MONTH Eight and a half years after establishing Prime Air, Amazon has said it plans to begin drone deliveries in California in the coming months. Since 2013, the e-commerce giant has created more than two dozen drone prototypes as it looks to refine their safety aspects.

The latest version – the MK27-2 (pictured) – has a hexagonal shape for greater stability and propellers which have been specifically designed to minimise high-frequency sound waves.

Provided that all the required clearances are given, drone deliveries should start in the town of Lockeford later this year. However, some residents of the rural community have threatened to shoot down the delivery vehicles, reportedly describing them as “target practice”.

8% 3%

36%

24%

29%

3,500

SKUs in Interaction’s Q-Connect portfolio

Fujitsu and Ricoh delay scanner sale The sale of the majority of Fujitsu’s scanner business to Ricoh did not go through as originally scheduled on 1 July after a Japan Fair Trade Commission investigation took longer than anticipated. No revised date has been given for the closing of the deal.

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GREEN THINKING

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Banner publishes green catalogue

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UK business supplies reseller Banner – part of the EVO Group – has launched its first B Green catalogue, aimed at helping companies and public sector organisations across the country meet their sustainability targets.

The new publication includes a wide range of sustainable products in categories from cleaning and catering to office supplies and printers.

Banner says a “critical” component of the catalogue is a guide which helps users understand the different product sustainability accreditations.

Those covered include Blue Angel, Carbon Neutral, Energy Star, Fairtrade, EU Ecolabel, Nordic Swan and the Rainforest Alliance.

Banner CSR and Social Values Manager Julie Hadley said: “Everyone knows the supply chain plays a huge role in an organisation’s sustainability.

In drawing together products with sustainable credentials and putting them side by side, we hope customers can make easier comparisons and better choices. However, we are fully aware that the burning question of ‘which is better?’ remains unanswered.”

‘Be Green’ is a tagline that has long been associated with Office Depot; its contract business in the UK is now owned by Banner rival OT Group.

It’s probably not a coincidence that Banner – which bought the Staples UK book of business last year – has come up with something that sounds identical, although the word ‘Be’ has been replaced with the letter B in a style that matches its logo.

Integra launches environmental portal

UK dealer group Integra Business Solutions has launched a carbon footprint calculation portal to help its members measure and report on their carbon emissions.

The Green Initiative portal has been set up in partnership with Compare Your Footprint. It provides dealers with a dashboard, together with scope guidance and support, to take them through the process – from collating and recording data to calculation and benchmarking.

According to the group, the portal, once populated with the relevant data, will provide all the information members need to analyse areas for improvement and reduction. It can also act as a data repository for companies working towards certifications such as B-Corp and ISO. Integra’s reasoning behind the initiative is the UK’s target of achieving net zero by 2050 and the increasing pressure on businesses to reduce their carbon footprints – with the ability to measure emissions being regarded as an important first step

Sustainability focus for Interaction

European purchasing group Interaction is raising its game on environmental and social matters, Managing Director Jan Van Belleghem has told OPI. Van Belleghem highlighted recent acquisitions by three Interaction members: PBS Holding (buying Staples Solutions’ global accounts business), EVO (the Staples UK contract book of business) and Wulff (Staples Finland). He said these deals had greatly increased the Q-Connect brand owner’s exposure to large, multinational clients across Europe. Sustainability is a top priority for them and a key component of tenders.

This has led to Interaction expanding the sustainability initiatives it already had in place, such as reducing the amount of plastics used in products and packaging.

At the start of 2022, the group became Jan Van a member of environmental and social Belleghem monitoring NGO Amfori. This has so far resulted in 40 Q-Connect suppliers undergoing audits under Amfori’s Business Social Compliance Initiative platform. It includes areas such as factory working conditions, fair remuneration and child labour.

Interaction is also monitoring environmental aspects of its supply chain via Amfori’s Business Environmental Performance Initiative self-assessment tool. This takes a holistic view of carbon footprints through a life cycle analysis methodology that supports outcomes from the Paris Agreement and the United Nations Sustainable Development Goals.

Another area Van Belleghem wants to develop is Interaction’s charitable support.

From 2023, the group will be involved in World Bicycle Relief. This is a charity that helps girls and women in low-income rural areas around the globe to become more mobile, enabling them to go to school and work. Van Belleghem himself is a keen cyclist and mountain biker, so the choice of charity seems a natural one.

Interaction has brought all its efforts together in a new social and environmental responsibility charter which has already been approved by the organisation’s board. It is now being distributed to other Interaction stakeholders and should be made public shortly.

Bureau Vallée is engaging its entire network of around 350 stores on CSR issues. After a two-month pilot in its home country of France, the reseller is implementing a CSR action plan in partnership with sustainability services provider Lakaa.

The first step has been to create a group of internal ambassadors – known as Colibris – who will act as liaisons between the head office and the stores. They will help franchisees develop their own CSR initiatives at a local level in line with the group’s wider sustainability and social goals.

The Lakaa platform will enable Bureau Vallée to bring everything together in a single online portal. It includes a catalogue of actions that can be carried out, the ability to share ideas across the network, and a reporting tool for each store.

During the pilot stage, the 50 outlets that took part shared almost 700 environmental and social initiatives between them. The goal is now to build on this to increase the group’s positive impact across all its regions.

OT Group makes ESG appointment

Essity’s B2B cleaning and hygiene brand Tork recently questioned workers in seven European countries to gauge their expectations on the topic of sustainability as they return to the office. The Tork Eco Office Survey – conducted by OnePoll – interviewed 12,000 people from the UK, Germany, France, the Netherlands, Sweden, Denmark and Poland.

One key finding was that 84% of employees want to see a more environmentally friendly office. Essity said there has been a “clear shift” in expectations, with 43% of those surveyed feeling their offices are actually “shamefully” eco-unfriendly. Moreover, almost half are disappointed their employers did not make improvements during the pandemic. Other responses included: • Seven out of ten employees feel they are left to take the lead, and many have already considered implementing eco-friendly practices themselves.

• One in three say their bosses don’t appear to care for the planet at all.

• 68% responded that they select companies based on their sustainability reputation and actions when looking for a new job.

• Topics such as recycling and reducing waste, energy use and better internal communications around sustainability should be top priorities for employers to address.

Commenting on the research, Reneé Remijnse, Sustainability Director at Essity Professional Hygiene, said: “There has been a definite shift over the past 18 months in our general attitudes as workers take the issue of sustainability more seriously than ever before.”

“There is a clear expectation and request for an eco-friendly office, something not all employers are taking seriously. Simple steps, such as improving recycling practices and reducing energy use can already make a difference – but only if you include, and communicate with, your employees to get the best impact.”

Officeworks participating in wind farm project Australian office products reseller Officeworks recently took part in a ceremony to mark the start of construction of the MacIntyre Wind Farm Precinct in Queensland.

Expected to be operating by 2024, the precinct will be the largest in Australia and one of the biggest wind farms in the southern hemisphere, with a combined capacity of 1,026 MW. It will generate more than 3,000 GWh of renewable energy annually, the equivalent of powering 700,000 homes.

Officeworks Operations Manager Tracey Warren (photo, centre) joined other Wesfarmers Group retailers as well as partner CleanCo Queensland for the event. The project forms part of Officeworks’ commitment to use 100% renewable energy by 2025.

July/August 2022

UK and Ireland business products organisation OT Group has appointed Debbie Wall to lead its environmental and societal strategy.

Wall is a seasoned sustainability and CSR professional, with more than 20 years’ industry experience. This includes over five years at business software firm Sage, where she set up the Sage Foundation. More recently, she has been working with the Aston Martin F1 racing team and UK charity Best Beginnings.

Her immediate priorities at OT Group will include setting a carbon baseline and establishing achievable targets to “significantly” reduce the company’s environmental footprint by 2030.

Debbie Wall

Tork survey highlights office sustainability frustrations

GREEN THINKING NEWS

Bureau Vallée takes CSR action

15

BIG INTERVIEW ‘Buy and build’ has been Wulff’s mantra for decades. Doubling its sales with the addition of Staples Finland last year was just the beginning of a concerted M&A strategy, says CEO Elina Pienimäki

FLYING THE

Nordic flag W

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ulff Group is a publicly listed company – the only one in our industry in the Nordics. As such, it’s not difficult to get a broad overview of this Finland-based reseller that has been in existence for over 130 years. What’s much harder to find is a real insight into this B2B player which, since 2019, has been woman-led and in May 2021 caused a stir when it bought Staples Solutions’ Finnish operations for what seemed like a bargain price.

OPI’s Heike Dieckmann had a rare – and very welcome – opportunity to speak to Wulff CEO Elina Pienimäki and get that insight.

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OPI: Some of our readers may recognise you from a previous stint at Wulff a few years ago. Tell me a bit about your background before you rejoined as CEO in September 2019?

Elina Pienimäki: Sure. Before I took over as Wulff Group CEO, I was leading a company called Aallon Group which is a financial services provider in Finland. My CEO role there was focused on building a new group of companies in that industry, mainly through M&A. While I was there, we also took the group through an IPO. The firm has been growing very nicely ever since.

Prior to this, I worked as CFO for an organisation called Ahlsell Finland. The parent company is Swedish and a distributor of technical tools and supplies for the construction space. It’s quite well known in the Nordics.

As you mentioned, I was at Wulff in the past – from 2014 to 2017 as CFO – so I knew the firm, many of its people and its culture well when I rejoined. It was an easy decision to go back. Although it’s a public company, it’s a very family-orientated enterprise – it’s also agile and M&A focused, both factors that really appealed to me.

OPI: What did you find when you joined, just a few months before COVID hit?

EP: Wulff is hugely sales driven and had put considerable efforts into expanding its product and service range in the prior years through a strategic project called the Wulff Lab. Everything the company did had to contribute directly to sales growth and profitability.

Cleaning and healthcare products were a big part of that category expansion – as were, on a side note, sustainability items. With the former in mind, we were incredibly well placed when in 2020 the pandemic really kicked off. We had the products, relationships with the channels to buy from and the organisational capabilities to make it all work – quickly.

OPI: Did that category include PPE? EP: Yes, we were pretty well equipped in this area too. Of course, there were challenges and we had to adapt, finding even more new channels of buying and sourcing these products.

But it benefitted us that we had a strategy as regards category expansion well before COVID. We’d been building our assortment outside the office supplies segment for some time, so we were in a good place. In fact, rather than limiting ourselves in any way, we refer to Wulff as a Nordic multichannel sales company for a wide

BIG INTERVIEW Elina Pienimäki

We refer to Wulff as a Nordic multichannel sales company for a wide range of workplace products and services range of workplace products and services. Our goal is simple: to enable customers to have the perfect work day.

OPI: I’ll definitely come back to that. But just going back in time a bit further for a couple of questions… The Staples acquisition brought your 2021 revenues to a total of €90 million I think. Had Staples been factored in for the whole year, the figure would have been well over €100 million, effectively doubling sales.

We had a Big Interview with then CEO Heikki Vienola in 2011 and at that time he said sales were €93 million. How come, over the course of ten years up to May 2021, Wulff’s revenues went down by €40 million – I believe you were trading at €52 million pre-Staples? Were there major divestments?

EP: Yes, there were some divestments. For example, in 2015 Wulff sold the business gifts side of the company – that was one thing. The market has changed considerably too and we are a much

July/August 2022

OPI: You are one of the founding members of Interaction, the alliance of European resellers and distributors founded in 1997.

How important is that collaboration for you still, after 25 years, particularly from its private label, Q-Connect point of view?

EP: It’s important. Interaction has a purchasing power of €2 billion ($2.1 billion) and Q-Connect represents a considerable share of our sales in the divisions where it’s relevant. And we aim to make that percentage larger.

Sustainability is playing an increasingly vital role for us and more Q-Connect products are currently being developed under this umbrella (see also Green Thinking News, page 14).

We want to grow the share of our sales in this particular category.

OPI: What was your remit in 2019?

EP: M&A was high on the agenda and while COVID impacted our plans a little and some scheduled activities didn’t come to fruition, you know we bought Staples’ Finnish operations in May 2021. It was a logical and obvious purchase, but I’m sure we’ll talk about this later.

Since then, it’s been about integrating the company, creating synergies and making our joint organisation stronger.

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Elina Pienimäki BIG INTERVIEW

more profitability focused operation now. Still sales driven – very much so – but it’s not just the top line that matters. In order to be a responsible company doing good things, you have to make a profit.

OPI: Another question about the past is Wulff’s history. I actually thought the company was still relatively young – going back no more than 40 years. Preparing for our chat, that’s clearly not remotely true. Can you tell me a bit more?

EP: I’m very happy to, as I think it’s really interesting and quite intriguing. Wulff was founded in 1890 by Thomas Fredrik Wulff. It was a small paper shop in the heart of the capital Helsinki.

Curiously, another company – Oy Lindell – was founded by Hermann Lindell in the same year.

That firm was acquired by Staples in 2010.

Thomas and Hermann were apparently rivals as well as good friends in those early days (see picture, page 23). With Wulff buying Staples Finland last year, it almost feels like going full circle with, after 131 years, both organisations’ histories coming together.

Going back to your question though about the overall history and what happened, Wulff remained a family-run business for many years. In fact, the company became one of the few enterprises in Finland to pass from generation to generation.

This ended in the 1980s, probably the time you were referring to. In 1987, a firm called Sponsor bought Wulff, followed in 1992 by the Helvar Merca Group. In 2002, Wulff was acquired by Beltton Group, which was a company established by Heikki Vienola. The Beltton brand was changed to Wulff Group in 2008.

Heikki still has the biggest stake in the company – he owns about 36% of all shares. I’m also a shareholder and I own 40,000 shares which equates to an ownership of 0.6%.

OPI: Since 2008, it appears then, Wulff has typically been the acquirer rather than the entity being bought.

EP: Correct. We have a history of growing through M&A, for instance with Strålfors Supplies in 2009.

This is now called Wulff Supplies and is our contract sales business in Sweden, Norway and Denmark. It’s growing and performing well and we are very happy with it.

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OPI: So your current footprint is Finland, Sweden, Norway and Denmark. How is that split in terms of sales percentages?

EP: 71% of sales come from Finland, 23% from Sweden, 12% from Norway and 1% from Denmark.

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OPI: I seem to remember you had a presence in Estonia at some stage too, is that right?

EP: We did, but gave it up a few years ago. To give you a few more facts, we have approximately 280 staff right now – 76% of them work in Finland, 19% in Sweden and 5% in Norway. We’re based in Espoo which is part of greater Helsinki where a sizeable percentage of the entire population lives – over 25%. The population of the whole of Finland is only about 5.5 million people.

OPI: You briefly referred to your customer base when mentioning Wulff Supplies and the Swedish contract business. How would you summarise your target audience?

EP: We have what we call a Contract Customers and an Expertise Sales division. Contract is all about delivering a wide range of workplace products to customers.

Was [Staples Finland] a bargain? It was the price we were willing to pay for that company and the price Cerberus Capital was willing to sell it for The focus here – though not exclusively – is the larger customer where we have annual contracts and deliver to multiple locations. Large corporate customers, government and public sector companies – those kinds of operators.

Expertise Sales, on the other hand, is more about our active and strong sales force and a sales channel that operates locally. Typically, the products are higher quality and the service is increasingly bespoke. Customer size is not as specific in this division either – it goes all the way from SMBs to very large organisations.

The big distinction – as the name suggests – is that further expertise is needed in servicing these customers. In addition, they are slightly less transactional and instead more service and solutions orientated.

These two divisions complement each other very well, with product portfolios being different as a general rule too.

OPI: Which is the bigger part?

EP: Contract by far – it’s about 80/20. But both divisions, if you look at our 2021 financial results, have been performing very well from a profitability point of view.

Another component of the organisation is our trade fair business which we refer to as Wulff Entre. From a reporting point of view, Wulff Entre feeds into the Contract Customers division.

It’s been part of the group for approximately 15 years. We have extensive knowledge of international, big trade fairs and help our customers attend these shows, sell their products, launch new ones, etc.

OPI: That business must have taken a real knock over the past couple of years.

EP: Well, yes, from early 2020 when COVID hit, we couldn’t get our customers to events anymore because none were happening. It’s when we started developing a new service named My Remote Studio.

What this is and involves is that we essentially built a very high-quality visual as well as sound studio. From this, our customers can effortlessly and conveniently demonstrate their products and services to their clientele.

OPI: I can see the benefit of some bolt-on selling here too, as regards viscom and all manner of tech accessory products.

EP: Absolutely.

OPI: Is this something you offer only in the Finnish market?

EP: No, we’re selling Wulff Entre in all our locations and, in fact, have some far flung customers in Central Europe and Ireland.

We’re becoming more international all the time with it and although – as we started from zero – it’s not a huge part of the business yet, it’s been growing really nicely. And it’s very much part of our strategy going forward.

We have fantastic knowledge in this area and also some great customer relations, and we are finally very busy with physical trade fairs again as people are travelling once more.

Elina Pienimäki with Wulff Group CFO Atte Ailio

OPI: On this M&A note, let’s talk about the big acquisition you made last year – Staples Finland. Only it wasn’t such a massive purchase in financial terms, one might argue, as you bought Staples for a mere €6 million.

Would you agree that was a bargain price?

EP: It was €6 million, including €1 million in cash.

Was it a bargain? It was the price we were willing to pay for that company and the price Cerberus Capital was willing to sell it for.

Naturally, with all the disclosure we have to give as a public entity, it attracted a lot of press attention as we paid considerably less than the value of the company’s net assets, in other words negative goodwill, which is really rare with M&A.

BIG INTERVIEW Elina Pienimäki

OPI: Another ‘adjacency’ you’re in I believe is financial services since you bought Carpentum earlier this year?

EP: That’s correct. It also goes back to our strategic decision to grow the business services part of the company, in this case financial services. Carpentum is a profitable entity which operates in Espoo and Tampere with 15 to 20 highly professional people who have outstanding customer relationships – the same customers we deal with.

Yes, it’s different from workplace products and services, but it’s complementary to our services component and it aligned well with our M&A plans.

OPI: And this is hosted at Wulff?

EP: No, we physically go into customers’ premises where everything is set up for them and where they can use that facility for whatever purpose they want. It’s a completely different experience from having a desktop-based Zoom or Teams meeting because it is such high quality.

During the pandemic in particular, we at Wulff used it for the same type of service – to get access to our clients.

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Elina Pienimäki BIG INTERVIEW

Staples Solutions clearly wanted to exit Europe, divesting the various operations piece by piece.

Wulff, with its M&A strategy and core capabilities in this area, was the right partner. And the two companies are an excellent fit and I’m really happy that we came together.

OPI: How is it a good fit? Geographically, from a customer point of view, culturally? And how is the integration going?

EP: When we bought Staples, we gave ourselves a target of being fully completed, with integration at all levels, within 1,000 days, which is the end of 2023. We are well on track for that and are currently working ahead of schedule.

We started immediately, of course, and the first thing to do was to get rid of Staples Solutions’ IT infrastructure. We integrated our CRM in six months and since then have been following this up solution by solution, system by system. We are not done yet, because there’s a lot to do and we want to do it carefully and well.

Product assortment is another component where we had a lot of similarities and we’re pretty much done with that part too.

In terms of geography, since you asked, Staples was based very close to us so it’s been easy, albeit with sadly some inevitable redundancies.

As regards customer bases, all of Staples’ customers fall under our Contract Customers umbrella, but there was no overlap – we simply didn’t have the same clients – so that’s a true one plus one makes two rather than 1.5.

OPI: I can only assume the culture bit is a work in progress?

EP: It’s clear our two companies have very different cultural backgrounds. Our Staples employees for a long time were part of this American-owned or certainly international background, with distinct milestones as to how the operation was led. Different leadership teams, different priorities and so many organisational layers. Wulff, by contrast, is very lean and efficient with hardly any layers.

We, from the word ‘go’, decided that these two companies need to be led as one, so everything was joined up. Work in progress, as you put it, is a good description.

OPI: You talked about M&A as being a big part of Wulff’s strategy. How much of that strategy relates to Finland rather than the other markets you’re in?

EP: It relates to all the countries we are currently in which presents us with some great opportunities.

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OPI: Can you say anything more specific?

EP: Let’s just say you need to have a strong pipeline, be alert and active, and know what to do when and for what price. We tick all those boxes.

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OPI: You stated in one of your financial releases that you aim to reach €200 million in sales by 2026. This is more than doubling your current sales and seems highly ambitious.

Will it mostly be achieved through M&A as opposed to organic growth?

EP: Of course we are developing our existing businesses by adding new products and we have a strong drive to acquire new customers, but yes, M&A will be a core part. To reach our goal equates to an annual growth rate of 15-20%. I believe we can do it.

Even before the pandemic, these [logistics] partners delivered to wherever products were needed, not just company premises OPI: With Staples out of the equation, what does the reseller landscape look like in your markets – who do you compete with?

EP: Lyreco is in all the countries we operate in. It’s also a very substantial player in Finland. Here, we are roughly the same size.

Aside from Lyreco and us, the next biggest operator is RCK Finland which has revenues of approximately €30-€40 million, so considerably smaller but still sizeable.

OPI: You used to have a strategic partnership with Office Depot in Finland that, I believe, came to an end when you bought Strålfors in Sweden and became rivals. Office Depot Nordics was bought by its CEO Frank Egholm in an MBO a couple of years ago. How is that operator doing now in your opinion?

EP: We don’t see much of it these days.

OPI: The mighty Amazon only has a direct presence in Sweden to my knowledge, but services Norway and Finland from there. How big a deal is this player to you?

EP: Amazon is B2C and we are B2B – we are in a different business. That said, Amazon is an opportunity for us as well.

OPI: Residential deliveries have often been a real challenge for resellers during the COVID period when we had the mass exodus to the home office?

EP: As an omnichannel sales company, we delivered to homes well before COVID through our open online store – wulffinkulma.fi – which is hugely important to us. We had strong growth through that channel during COVID and this remains the case to this day.

We have very strong logistics partners in all the countries where we have a presence and even before the pandemic, these partners delivered to wherever products were needed, not just company premises.

This being said, home deliveries aren’t a substantial part of what we do. Yes, there is remote and hybrid working, but we also have many customers, manufacturers for instance, where everyone is on site.

Aside from this, we’ve found that, when people do work from multiple locations, they buy more because they are quite simply doubling up their workplace supplies in many cases. As such, the fact there are more workplaces now has been a growth factor for us. And companies which take care of their employees typically provide the tools for working from home.

OPI: We typically finish these interviews with a question about the future direction of the company. We’ve talked a fair bit about your plans and particularly M&A. What is the feedback you’re getting from your board – and your biggest shareholder Heikki Vienola? I believe his children are on the board too.

EP: Heikki is a senior advisor to us and, yes, two of his children have seats on the board as well and have had them for several years now. Kristina and Jussi both have interesting careers outside Wulff; as such, it’s always good to get their fresh and from-the-outside-looking-in views.

Heikki and his family are completely aligned with our strategy. They also make sure that the rest of the board has the relevant knowledge and expertise Wulff can benefit from. I believe the board is very satisfied with the work we do and the results we produce.

Importantly, we get great support from all the individuals we work with. I am 100% happy to have their continuous, refreshing perspectives as well as their commitment to a long-standing family business that is over 130 years old and has truly stood the test of time.

From left: Thomas Fredrik Wulff and Hermann Lindell – picture dating back to 1895-1898

July/August 2022

OPI: One of my final questions is more macro-related than specifically about the business supplies industry. Finland is geographically very close to Russia. Does that – and Russia’s war with Ukraine – have a perceptible impact on the country?

EP: Based on the statistics we see here, consumer confidence has dropped since the war started and that clearly has had an effect on businesses in Finland. From a Wulff point of view, we haven’t noticed a direct impact – we don’t buy from Russia or sell to Russia, Belarus or Ukraine.

At a broader level, of course this war impacts a whole range of things, from supply concerns and inflation to price rises and this, in turn, comes

back to our business. All we can do is stick to our strategy, be as agile as possible and focus on growth and profitability.

One thing I am very proud of is that I know many ‘Wulffians’ value our concrete engagement to bring back peace. We have acted and I think we can have a good corporate conscience.

BIG INTERVIEW Elina Pienimäki

OPI: Lyreco bought Staples’ businesses in Norway, Sweden and Denmark, so is a mighty player all over the Nordics I guess.

EP: It’s a significant competitor, no doubt.

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FOCUS

‘Stronger together’ is an overused and rather clichéd saying. But sometimes it just fits the (non-political) bill perfectly – as it did coming away from the 10th OPI Global Forum held in Chicago at the end of May – by Heike Dieckmann

A

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fter a COVID-enforced two-and-a-half-year break, the OPI Global Forum finally returned to Chicago in May. And the world is certainly a different place today compared with November 2019, hence the tagline of ‘Making Sense of Chaotic Times’.

The opening session saw a high-level panel of senior executives setting the scene with their views on the business and workplace products sector as they see it in 2022. They included – in person – Essendant’s Harry Dochelli, Warehouse Direct’s Kevin Johnson and ACCO Brands’ Boris Elisman.

Remotely tuned in were Steve Haworth from EVO Group and Harbinger National’s Mike Rowsey.

Between them, these leaders highlighted the titular pain points our industry is facing right now.

One of them might seem somewhat peculiar but also strangely familiar: it’s, in fact, our ‘industry’ and how it’s defined. What is our ‘sector’, what products and services does it – or should it – comprise, and how is it organised? Importantly, what needs to change?

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IDENTITY CRISIS Judging by comments from panellists as well as conference attendees, it wouldn’t be an exaggeration to suggest our industry is going through a serious identity crisis.

That being said, does any of it even matter to the end user? Would consumers care whether they order a pencil from an office products company, cleaning materials from a business supplies firm or a laptop riser from a workplace solutions provider?

Highly doubtful, but the need for (re)definition appears ever greater. As one panellist said: “Hang on to the good bits, but get rid of the bad ones.”

What consumers most certainly will care about is how and when they get their products and herein lies an issue which has been hugely exacerbated by COVID-19 – transportation and

the last mile. Both have become major headaches given supply chain delays, extortionate global transportation costs and the reality of costly residential deliveries. But, the panel concluded, there’s also considerable potential here for the independent dealer community from a last mile perspective if it managed to work together in a cohesive and cooperative way.

Said residential deliveries and the whole topic of remote and hybrid working highlighted another big issue that is undoubtedly giving business leaders across the globe sleepless nights: company culture.

How do you create and foster that culture in an increasingly dispersed work environment?

How do you maintain a sense of togetherness when the entire workforce operates on a semi-remote basis? Or, perhaps even worse, when a component of that workforce is on site due to the nature of the job – in a warehouse, factory or construction facility, for instance – while the remainder works from a home office?

As McKinsey’s Neel Gandhi pointed out in ‘The Future of Work and the Workplace’ presentation that followed, it’s a problem which is not going

Global Forum 22-24 MAY 2022

CHICAGO

THE BIGGER PICTURE The afternoon was nothing if not diverse and got delegates involved in and thinking about many of the challenges – and opportunities – that bedraggle our industry. The biggest elephant in the room is arguably also the hardest one to tackle because it is often out of the control of the individual, organisation or even the entire sector – it’s macroeconomics.

In a ‘fireside chat’ with OPI’s Steve Hilleard, Edgewater Research’s Eamon Kelly referred to some of the ‘bigger picture’ themes, predominantly from a B2C point of view. These include the impact of government aid on consumer spending during COVID, the recent softening in sales trends at major retailers, and the current and ongoing ‘rightsizing’ of customer behaviour and demand.

Kelly further touched on several of the worrying issues which ran like a red thread through the OPI Global Forum – inflation, supply chain pressures and deglobalisation.

WHAT THE DELEGATES SAID...

The OPI Global Forum was a great opportunity to have all levels of the IDC together in one room sharing our successes, concerns and visions for the future. I am thankful I attended.

– Charlie Kennedy, Kennedy Office The event offered a broad spectrum of interesting topics with many new impulses. I am looking forward to 2023.

– Franz Ratzenberger, COLOP I thoroughly enjoyed the [event]. There is no substitute for spending two days with your peers in a thought-provoking and confidential environment. – Jordan Feigler, Victor Technology I have been attending the OPI Global Forum for many years and always look forward to spending time with our industry’s leaders. The event is engaging, well organised and addresses current topics affecting our space across the globe.

– Peter Tilearcio, Central National Gottesman

FOCUS OPI Global Forum 2022

to go away and will need to be addressed with great competence and thought. The absolute crucial thing to bear in mind – and this is something touched on in a number of forum sessions, including HON’s Kyle Marks’ pre-lunch assessment of ‘Emerging Workspace Dynamics’, is to convince employees that the destination is worth the journey.

In among several stark statistics which encouragingly also reflect the heightened emphasis on diversity, equity and inclusion (DEI) in the workplace (for more on DEI, see Research, page 44), Gandhi referred to 75% of employees – on a global basis – preferring some form of hybrid work. A similarly high percentage (71%) of this demographic will likely look for other jobs if a hybrid environment is not supported.

Workers have new expectations in terms of convenience, comfort and social interaction, said Marks, and these require a new approach.

“Aspects such as worker mobility, daily workplace migration practices and café amenities which aim to entice workers to return to the office are all changing. This new environment creates significant opportunity for our dealers, but the right solutions are vital in order for these operators to win and prosper.”

I’ve yet to come across another industry that has a shared brotherhood like ours. It’s always enjoyable to be around this experienced group. – Terry Vigh, Avery Products Excellent event with top-notch topics and presenters.

– Tim Triplett, Triplett Office Solutions All these were naturally also big talking points in the vendor panel that followed. Sentiments ranged from “we simply can’t push any more price increases through to customers – they won’t accept them” and “make yourself as efficient as you possibly can – it’s the only way to survive” to “last year took everyone by surprise; now there’s no excuse for not fixing supply chain issues”.

Distorted demand and customer behaviour will level off again – ride it out

July/August 2022

Another theme dictating discussions was the willingness to and the importance of working together. As Kelly, positioned on the periphery of our sector looking in, said: “There is a real endeavour to work together and find solutions – I’ve never known that from any other industry we track. My advice, from a macroeconomic standpoint, would be: distorted demand and customer behaviour will level off again – ride it out.

The same, he added, applies to the much talked about concept of onshoring or nearshoring: “Don’t succumb to knee-jerk reactions which might not actually address the issue. Instead, have a long-term plan.”

Two digitally focused presentations rounded off day one of the forum. Website expert Andy Crestodina gave a critique of the industry’s online presence (see ‘Be your own customer’, page 26) while Highlands’ Stu Conroy outlined the potential of live shopping (see Opinion, page 28).

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OPI Global Forum 2022 FOCUS

Day two got delegates out of their slumber nice and early. Back by popular demand – from the OPI European Forum at the end of 2021 – was Brother UK’s charismatic Phil Jones with his take on ‘The Age of Entropy’.

It’s no mean feat to really engage an audience through a video recording. But Jones did exactly that – effortlessly (for more on his presentation, see Focus, OPI January/February 2022, page 26).

And attendees soon forgot about the excesses of the night before and perhaps a slight lack of sleep when he appeared on screen after the recording, inviting comments and giving practical advice to a wide range of questions.

Before the culminating takeaway session, delegates were in for a treat with two panel discussions. To say they were highlights of the event would certainly do all other speakers a disservice. But it’s fair to say that these debates raised combined blood pressure levels and upped the tension in the room.

The first, ‘Changing Customer Behaviour and the Evolution of Sales’, inevitably referred to the pandemic period. But, judging by a hugely experienced panel which comprised the vendor, reseller and technology channels, most changes that occurred over the past couple of years were already bubbling away under the surface pre-COVID, seemingly just waiting to erupt. A few nuggets of advice by panellists were: l

l

l

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You need a frictionless experience, otherwise you’ll lose customers.

Relationships with channel partners are more important than ever in a service, rather than purely transaction-based selling model.

Sales people will be driven by technology, but tech is merely a facilitator. Think more chatbots and live chat and less email, for example.

Focus on speed. As the customer demographic is changing to include higher numbers of millennials, their demands have become different. Speed and can-do is more important than ‘mere’ sales chat.

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HEALTHY DEBATE Rosemary Czopek from Gorilla Stationers was one of the panellists in this debate. She had some very interesting views on not only changing customer priorities, but also – somewhat controversially – on how to address them in terms of staffing (see Final Word, page 54).

The final session of the 2022 OPI Global Forum covered a topic that’s been rumbling on for years – the future of the independent dealer channel.

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BE YOUR OWN CUSTOMER Orbit Media’s Andy Crestodina, in his presentation ‘The Good, the Bad and the Ugly’, gave a 100-miles-an-hour critique of our industry’s internet presence. The most important thing, he said, is empathy. Is any part of the experience a visitor to your site is having frustrating? If so, why?

Taking a close look at the websites of some of the operators in our sector – from vendors such as ACCO Brands, 3M and Pukka Pads to resellers WB Mason, Shoplet and EO Group – Crestodina referred to some core fundamentals to get right. “Check with your reps what buyers are asking about” is top of the list, he advised. Then take a look at your site to see if the answers are there, clearly visible.

The best websites emulate a sales conversation, he added. Those in the e-commerce business should try and buy something from their own web shop. Pretend to be your audience for ten minutes a week.

For a more in-depth look at the anatomy of the “perfect” B2B website, look out for the September issue of OPI, where Crestodina will highlight ten checkpoints that any B2B brand or reseller should pay close attention to.

Another very knowledgeable group of people highlighted the need to evolve the sales approach, the absolute necessity to deep-dive into adjacent categories – often requiring M&A – and the imperative to provide a top-notch e-commerce experience. And it is these last two points that brought up the temperature in the room by a few more degrees, prompted by the reference to a recent letter by ISG’s Chairman Jordan Kudler to the group’s membership (see ‘ISG Chairman urges dealers to take control’ on opi.net).

Details of the debate cannot be revealed here, but there was a broad and amiable consensus that it’s high time the various parties got together and talked about the complexities of some of the current, often legacy, structures in place. Pricing, rebates, data, content and product availability should all be part of those discussions – all of which OPI will delve into over the coming months.

And so, with just the wrap-up to go, the 10th OPI Global Forum concluded. We had fruitful debates, core takeaways and a warm feeling that it was just excellent to get together again in person. It was also a good reminder of what a special industry we all work in – whatever we call ourselves.

The author would like to reiterate that all OPI forums operate under strict Chatham House rules in order to foster and encourage open and frank discussion.

As such, we have expressly sought permission for all comments attributed to specific speakers or delegates and for any other – current or future – features relating to Global Forum content.

YOU ARE INVITED TO ENTER THE

EUROPEAN OFFICE PRODUCTS AWARDS 2023 Now in their 22nd year, the European Office Products Awards continue to recognise the most exceptional products, companies and people in the business and workplace supplies industry.

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CALL FOR ENTRIES

ENTRIES ARE NOW BEING ACCEPTED IN THE FOLLOWING CATEGORIES: BUSINESS PRODUCT OF THE YEAR l SUSTAINABILITY EXCELLENCE – VENDOR AND RESELLER l MARKETING CAMPAIGN OF THE YEAR l INITIATIVE OF THE YEAR l MARKETPLACE/PLATFORM OF THE YEAR – NEW l

VENDOR OF THE YEAR l RESELLER OF THE YEAR l WHOLESALER OF THE YEAR l YOUNG EXECUTIVE OF THE YEAR l PROFESSIONAL OF THE YEAR l INDUSTRY ACHIEVEMENT l

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HOW TO ENTER Winning an award can make a real difference to your business, so be sure to get involved.

Simply complete an entry form online at www.opi.net/EOPA2023 or email your nominations to awards@opi.net The closing date for entries is 11 November 2022

AWARDS PRESENTATION – MARK YOUR DIARY! WINNERS WILL BE ANNOUNCED AT THE ANNUAL EOPA DINNER 13 MARCH 2023, HOTEL OKURA, AMSTERDAM

OPINION

B2B live commerce –

IT COULD BE FOR YOU

Live commerce sits on the very edge of our sector right now. But, as Highlands’ Stu Conroy says, the B2B space is certainly not exempt from the benefits of this next wave in the e-commerce revolution

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t feels like we’re back to normal. As we emerge from the pandemic period, physical events are taking place again and traditional business conversations are happening once more. But some things will never be the same.

The past two years have seen incredible changes in terms of how many of us conduct business: we use video calls for sales and all manner of other communication; the physical retail landscape has changed and we all got used to buying more online. Factor in the shipping crisis and current inflationary pressures and it’s easy to work out that it has been difficult for brands to get – and stay – in front of the customer.

Often, it takes a crisis to alter our working practices. At Highlands, for instance, with our UK office empty as staff had gone home to work, we took the opportunity to turn the place into a live shopping studio. In a nutshell, we worked with our brands and manufacturers, and helped them talk directly to their audience.

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RESPONSIVE ELEMENT But what is live shopping or live commerce and how does it fit into our predominantly B2B world? The concept of live shopping is not new, of course – we all know about the QVC channel which recently celebrated its 36th birthday. There are many others – Alibaba’s Taobao is the world’s biggest player on this particular stage.

The difference now is that technology has rapidly moved forward meaning brands increasingly have the ability to easily link their

products to a live stream feed and talk about them directly to end users, distributors or retailers.

The responsive element of a live stream is far more engaging than a pre-recorded video production. You can answer the questions your audience has there and then to help influence purchasing. In addition, frictionless technology allows brands to take orders straightaway from their B2B or B2C audiences.

Compared to a trade event, live commerce is extremely cheap to set up. [...] The largest cost component is usually driving traffic to your live stream It is estimated by Forbes that live commerce by the end of this year will be worth $480 billion and $1.25 trillion in 2025. Much of this current total is derived from sales in Asia and comes from the fashion and beauty sector. On Singles’ Day in China in 2021, for instance – a major shopping event – one influencer sold $1.7 billion worth of beauty products in 12 hours.

Of course, these figures and predictions need to be digested with a pinch of salt as they will never apply to all companies, manufacturers or sectors.

When I spoke at the recent OPI Global Forum in Chicago (see also Focus, page 24), there was also a perceptible question mark in the room as to whether live shopping was indeed relevant to the

B2B RELEVANCE So you can buy log cabins in Canada, second-hand Mercedes cars in Germany and property in China through live stream. But do you need to facilitate instant purchasing during a meeting with your B2B customer? You could just have a video call, take the order and process it – all while still on the call.

Live commerce gives options. You can tailor appointments to your audience, for example, making sure customers are seeing the products you believe they will be particularly interested in.

Rather than a full catalogue, really focus on what you think they need.

If you are selling printers for warehouses, say, you may have a video showing these in action.

How do you best answer the questions buyers might have though? Setting up a live stream from a warehouse cuts costs, allows you to show the product in reality and answer the queries pertinent to buyers. Once they see how the concept can work, they will no longer want to sit through a 30-minute demo which doesn’t actually address their concerns.

THE COST FACTOR Cost is always an issue. Compared to a trade event, live commerce is extremely cheap to set up.

Maybe not as much fun, but definitely cheaper.

The evolution of the necessary technology over the past couple of years has put further downward pressure on expenditure. And it is possible to integrate with most systems seamlessly.

Indeed, the largest cost component is usually driving traffic to your live stream. The more of a

It’s often hard to know how to approach a brand new route to market. Here are some tips on how to get started with live commerce and what factors to bear in mind.

• Strategy: decide where you want to go live and how often. This will determine initial budgets and whether you outsource the work or look to produce the shows in house.

• Location/studio set-up: establish whether your team or creators will be producing the shows.

Will you go live on websites or social media? If you are using streaming technology, you will be able to give more of a branded feel.

• Campaign goals: are you looking to sell more products, gain more followers, build email lists or close deals? The format of your show, product and pricing strategy will be influenced by these elements.

• Audience: how will you reach your audience?

And who is that audience – existing customers or potential new buyers? database you have, the better. Then there’s the different conversation of reaching out to new audiences. Not all brands are ready to embrace TikTok, but recently we saw a fulfilment company get one million views on a video of their warehouse in operation. It’s surprising what people are interested in – they often want to see behind the scenes of companies, manufacturers and brands.

CONTENT FOCUS The digital world in many ways is like the physical one – it’s not remote and abstract. If you’re solving a problem in a live demonstration, you are emotionally convincing buyers that they could sell the product in question to their customers too.

If you sell high end office furniture, on the other hand, you’ll want to show a more aspirational space and the emotive setting customers would aspire to be in. This can be created in a manufacturer’s existing showroom or office – it also saves people from having to get to the showroom.

When I travelled around China and the Far East, I found that, as a culture, people are far more likely to use technology in the selling process. If stores or showrooms are empty, for instance, staff actively have video calls with consumers and buyers who aren’t able to get over to their location.

Many of us like forging friendships and the engagement that in-person events and sales meetings bring, especially as we emerge from enforced stay-at-home and non-event periods. But it absolutely doesn’t have to be one or the other.

Blending live and on-site demonstrations provides the best of both worlds and enables organisations to optimise their workforce.

Finally, it’s about leveraging all of the knowledge the sales team has – whether it’s internal or external sales – in a more visibly friendly way to buyers and end users.

My advice? Don’t rule live commerce out, it might not be as obscure as you think.

July/August 2022

Stu Conroy

Stu Conroy is Innovation & E-commerce Director at Highlands Digital. Having sold over 15 million phone cases online since 2000, Conroy turned his business Activ8 into an agency in 2019.

The goal was to create a company he would have wanted to aid him in his journey. Activ8 was acquired

by Highlands in 2021 as part of the sales and marketing agency’s development plan.

Conroy now leads the strategic growth for a wide variety of brands to leverage multichannel opportunities and in particular utilising live and social commerce.

FIRST STEPS

OPINION Stu Conroy

business supplies industry – or any B2B setting for that matter. I would argue it’s most definitely worth looking at the technology and this exciting pathway of reaching existing and new audiences.

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SMALL TALK

SAY IT as it is...

OPI takes a look at some highlights – and soundbites – from recent podcast episodes

Hire people you don’t understand.

Get talent that is talking about stuff you have no clue about LISTEN AND LEARN Lyreco Germany’s Falko Köhler is one of the rising stars of the European business products industry. In fact, the 31-year-old won the Young Professional of the Year prize at this year’s European Office Products Awards (EOPA) celebration which took place in March. At the time, Köhler said that “we need to push a dusty industry into the digital era”. It was a sentiment very much echoed in an OPI Talk podcast where he also urged employers to take risks in their recruitment processes.

“Between 2017 and now, the price of petrol has gone from the equivalent of $0.83 to $1.51. That may not sound a lot, but for South Africa, it is huge.

Added to that, we had severe floods [earlier this year] and the Mondi paper factory was put out of action. Waltons issued a force majeure because supply has almost come to a standstill.”

“[At Lyreco], I was given the chance to point out the things that were not going well, and people listened to my ideas of how to solve them. For me, that was absolutely the right thing to do, because I was looking for challenges – exactly what I got. This approach is something you can transfer to every employment situation – there are a lot of young people looking for this kind of opportunity.”

TACKLING DEALER CHALLENGES IN ITALY Adriano Alessio has been a key figure in the Italian office products market for the past 25 years, both as Managing Director of dealer group In Ufficio and as President of the now-defunct trade association AIFU.

“My recommendation for resellers is to never have a product standalone because, for most customers, it is just a commodity. It’s all about offering solutions in tandem with a range of products.”

“Hire people you don’t understand. Get talent that is talking about stuff you have no clue about. If you are brave enough to listen and give them clear goals and objectives, it will help your company enormously.”

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“There is no real culture of partnerships in our industry – where people and companies are working together, going for the same goals and delivering towards a target.”

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DIFFICULT MARKET Hans Servas has been part of the South African business products sector longer than he probably cares to remember. After retiring from his role at Bidvest-owned vendor SSC in 2012, Servas served as Chairman of local trade association shop-sa for ten years – finally stepping down at the end of June 2022.

“From a reseller perspective, it is a death sentence to call ourselves the business products industry. I have never come across customers who say, ‘I need to go to a business products specialist’. They don’t see it like this.”

“One thing is clear: we cannot copy the Amazon model – ever.”

“New market entrants are now changing their structure, after experiencing that Italy has its own dynamics, and realising sometimes they cannot copy and paste what is happening in other parts of Europe. The Italian market is not easy.”

“My number one priority for our dealers is digitalisation. We need to simplify the flow of information among the membership and […] take advantage of new ways of communicating.”

For more details on OPI Talk, visit www.opi.net/podcast

INTERVIEW

programmes that fully comply with ISSA standards and content.

OPI: Your roots are in Italy – is this still your most important market?

TDA: Without doubt, our ancestral roots are in Italy. It’s a country that has, along with Germany and the US, been one of the top manufacturers of machinery, products and equipment for the global cleaning market for many years. However, our expertise is international.

GOING

global The ISSA Pulire Network has big plans to develop the cleaning industry throughout the EMEA region and beyond

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n May 2018, ISSA – the trade association for the global cleaning industry – expanded its footprint by creating a jointly owned platform with Italian cleaning sector manufacturers association Afidamp, owner of the Pulire trade show (‘pulire’ meaning ‘clean’ in Italian).

12 months later, their collaboration was formalised with the establishment of the ISSA Pulire Network, headed by former Afidamp Executive Director Toni D’Andrea. In August 2021, D’Andrea’s responsibilities were extended when he was named as Director of ISSA EMEA after Dianna Steinbach – who had been responsible for all ISSA’s regions outside the Americas – moved back to the US. OPI caught up with D’Andrea to find out more about the workings of the ISSA Pulire Network and how he is looking to develop it.

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OPI: Toni, can you start by telling us about the goals of the ISSA Pulire Network?

Toni D’Andrea: Our goals are to pursue the business of holding trade shows around the world, something Afidamp has successfully done for over 20 years now. These include a dozen international projects in Asia, Australia, Africa, Europe, the Middle East and South America.

ISSA has done the same in various regions, as well as developing training and certification

OPI: What is the size of your team?

TDA: We are actually two separate teams working in perfect harmony. An integrated, eight-person group handles exhibition-related activities, such as organisation, sales, promotion and communications, social market interface management and administration.

The second, five-person team has an international slant (Africa and the Middle East).

Speaking nine different languages – Italian, Serbian, German, Latvian, English, Spanish, Portuguese, Arabic and Swahili – this group looks after institutional issues, training and certification activities throughout the EMEA region.

OPI: What synergies have arisen out of the relationship with ISSA? TDA: ISSA has boundless experience in terms of training and certification issues, knowledge we draw on regularly. When it comes to trade shows, we each have the tools and content that, while acknowledging our differences, perfectly complement one another.

OPI: How many members do you have and what is your strategy to grow the membership?

TDA: Currently, in Europe, the Middle East and Africa, we have 680, 88 and 1,151 associates respectively, making a total of 1,919. The goal is, of course, to increase numbers and expand the range of services on offer, which in itself attracts new members. It’s something we are actively working on. In fact, we’re about to unveil compelling new reasons to be an ISSA member.

OPI: What certification programmes do you run, and what further plans do you have?

TDA: ISSA has contributed a host of programmes to the ISSA Pulire Network for the EMEA market.

These include the Cleaning Industry Management Standard, which we’ve begun translating into Italian and Spanish, and Custodial Technician Training at basic and advanced levels.

OPI: Tell me about the GBAC Star initiative – what kind of traction have you had with this?

TDA: GBAC is revolutionary. ISSA’s strategy was to have a top-level research organisation folded in as one of its own divisions, working in both preventive and routine management on variables related to biohazard threats. That move turned out to be both ingenious and innovative.

GBAC Star certification adds value to every action and activity in the cleaning world. It is

OPI: The timing of the GBAC acquisition prior to COVID was certainly fortuitous. How has the pandemic changed people’s attitudes towards cleaning and hygiene?

TDA: COVID has revolutionised our perception of many values, particularly collective hygiene.

The world has finally realised that cleanliness is not just a private need; rather, it’s a right worth vigorously claiming.

Before vaccines became available, cleanliness was the only tool for breaking the chain of infection, putting handwashing firmly in the spotlight. Shifts in cleaning and sanitation services have also intensified, ensuring safer workplaces, hospitals, public transportation and restaurants.

One may say that social distancing, masks, space cleansing and handwashing produced effective results. My fear is that, as we return to normalcy, we may forget what COVID actually was for us all. As infection rates rise again, it is important we do not lower our guard and maintain the level of discipline still required.

OPI: You are moving the ISSA Pulire trade show to Milan next year as well, aren’t you?

TDA: Yes. After being a ‘travelling’ fair across Italy for years, then from 1992 more stable in Verona, in 2023 ISSA Pulire will finally get a permanent home at Italy’s foremost exhibition centre.

OPI: What is the potential for sustainable cleaning solutions across EMEA? TDA: Being ‘green’ is a necessity. Machines, products and equipment are already required to meet progressively stricter compliance demands.

Some companies in our sector – true champions of sustainability and zero impact pioneers – have made sustainability their core business.

This is a major opportunity for us in the future, and one that has been increasingly opened up by research and innovation.

OPI: You have your ISSA Pulire Forum event in Milan this October. Tell me more about that.

TDA: The Forum originated in 2012 as a platform for in-depth discussions on topical issues and a meeting place for the entire supply chain, both in Italy and internationally.

Held over one and a half days, the 2022 themes are: the value of memory and building a civil conscience; designing for occupational health and safety; and the future of integrated services management under the new normal.

Before vaccines became available, cleanliness was the only tool for breaking the chain of infection

Toni D’Andrea

Our end goal is to be part of a scenario where the common facets of different experiences and professionalism inspire us to design new approaches and activities.

INTERVIEW

a guarantee of quality for service enterprises, managers of hospitality venues, and especially for service end-users who are able to count on certified hygienic quality standards.

The aim is to grow in terms of visitors and exhibitors through a strategic repositioning which acknowledges geographic centrality, easier access for attendees from abroad, and co-location with other events that have compatible content.

Above all, it is an opportunity to expand without space limitations, thereby making it possible to add new players from the integrated services sector which fit in with our current offerings.

OPI: Good luck with all of your initiatives Toni.

July/August 2022

OPI: You will be holding your first show in Nigeria in November 2022. What are the opportunities for you in Africa?

TDA: For a long time, I’ve believed that the African continent presents the greatest growth opportunity out there for us all. Even more so for countries bordering the Mediterranean and sharing a common sea with Europe. Over the next two decades, Africa will double in population from one to two billion, while Nigeria will grow from a current 210 million people to approximately 450 million.

Alongside this explosion, demand for services will increase exponentially. Qualified personnel will be needed to deliver these services in cities, hotels and hospitals. Hence, the need to plan training activities at all levels, from top management to operators, and to build the next generation of service world practitioners.

With the exception of South Africa and some small tourist areas in North African countries, the cleaning industry is still in an almost primitive state in this region. And even new hospitality structures, hotels and healthcare facilities age quickly due to a lack of maintenance and cleanliness. I recently visited a fair in Cameroon, for example, and noticed almost all new buildings there were suffering from premature deterioration.

As is true of many other nations, Cameroon’s population has an average age of around 25.

These are very young countries looking toward a better future. We want to stake our claim in building that future.

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T OPSYTURVY

CATEGORY UPDATE

“In a state of flux” possibly best describes the current situation in the breakroom space, as OPI’s Michelle Sturman finds out…

T

he breakroom was a category full of promise and endless potential as room designs and food and beverage habits waxed and waned. COVID put the skids on breakroom sales as buildings emptied during the pandemic and, in many cases, are yet to return to pre-2020 capacity as hybrid working persists. For employees that do work in an office, there is a lingering wariness over shared facilities, equipment and utensils.

It’s not all doom and gloom, however. Because of all of the above – coupled with the after-effects of coronavirus in terms of trends such as a renewed interest in sustainability – the breakroom environment is currently being reinvented.

The emphasis is on cleanliness, higher-quality products/equipment, and careful consideration of space utilisation.

Importantly, the breakroom is being used to entice staff back to the office. As Emerald Brand Managing Director Ralph Bianculli Jr remarks: “As corporations are pushing for employees to return to the office, they are incentivising them with major investments in pantries, corporate dining facilities and catering.”

The breakroom is part of the back-to-office strategy while OP is not Inflation is already having an effect which, says Office Snax CEO Todd Elmers, has caused significant price increases for commodities and by-products such as sugar and corn starch. This has resulted in steeper prices across the snack and candy product categories. “Shrinkflation will occur following the trends detected in the grocery and big box channels, with items shrinking in size to make up the inflation-related cost increases.”

Leazer agrees, adding that inflation is impacting other breakroom supplies, especially cups, utensils, stirrers and equipment, but is also a factor in coffee and water services.

At Dutch wholesaler/dealer group Quantore, Head of Purchasing and Category Management Dennis Albers predicts breakroom sales will continue to grow through a clear surge in demand

July/August 2022

ON THE AGENDA Mark Leazer, Executive Director of US national accounts organisation AOPD, and Craig Church, VP of Sales at dealer Miller’s Supplies at Work, both believe that customers are now far more willing to engage in conversations about the breakroom – including jan/san and facilities supplies – than office products. They agree that the breakroom is part of the back-to-office strategy while OP is not.

According to the Retail Tracking Service from market research firm The NPD Group, the US

janitorial and breakroom categories grew 1% in retail dollar sales for the 12 months ended April 2022 versus the prior year. The key drivers of the retail dollar volume growth include paper towels, napkins and dispensers, and tissue and dispensers – mostly thanks to a rise in average selling prices (ASPs) of 8% and 7%, respectively.

Based on NPD’s latest Future of Office Supplies report, the retail outlook for janitorial and breakroom supplies shows dollar sales will be up 10% year on year in 2022, down 2% in 2023 and flat in 2024. Again, the principal growth driver is ASPs within the paper-based categories.

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Breakroom CATEGORY UPDATE

for food, drinks and cleaning products. “2022 growth is logical considering the past two years, but even compared to 2019, it is massive. Being able to supply everything for the workplace – at home or in an office – is proving valuable when selling non-traditional categories,” he states.

SMELLING THE COFFEE Although the consensus is that the breakroom category is on a growth trajectory, certain areas such as coffee consumption are generally trending downward. As David Henchel, CEO of US-based dealer Corporate Coffee Systems, remarks: “With customers abandoning some commercial office space, we’re having to take back or downsize coffee equipment. Some of it can be repurposed, but not all. This also means consumption is down.”

On the positive side, he says customers wanting enhanced options and upgrades to breakroom/coffee offerings have led to more profitable sales. “They are also increasingly open to bean to cup rather than just single cup convenience and want further flavour options.”

Global coffee firm Lavazza knows only too well that quality coffee brands and fresh formats are more in demand than ever following recent surveys with office managers and workers.

Across the board, staff revealed that better office coffee makes them feel valued.

Kiosks with self-pay options are becoming more popular Crucially, they seek additional variety and a higher calibre of beverage offerings, but this frequently means heading offsite to purchase drinks unavailable in the breakroom. However, Lavazza points to research which shows it can be up to four times quicker for employees to get their drinks in their workplace than go out to buy them.

Miller’s Church notes customers are willing to spend on superior items with less shopping around as they look to update equipment and products. He also believes that, unlike diverse OP dealers, traditional OCS firms were hit harder by

COVID. As a result, their service has dropped off dramatically, making them even more vulnerable.

Warehouse Direct CEO Kevin Johnson expresses the same view: “OCS/breakroom-only distributors are struggling to hire experienced staff to service their customers following significant layoffs in 2020. The experience loss and labour shortages at these operators have presented a very large opportunity for share shift. It has led to diversified distributors like Warehouse Direct gaining many now underserved customers.”

MARKET TRENDS According to Johnson, there is unquestionably a greater interest in improving the look and function of shared spaces. On the flip side, he points out that full-service cafeterias are less likely to be sustainable in the long run due to fewer employees occupying the office on a daily basis. “This is a factor driving the already unmistakable trend in micro markets,” he says.

On the topic of these micro markets, he believes their impact is the same as MPS had on toner.

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STATE OF THE WORKPLACE IN NEW ZEALAND

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Research undertaken by New Zealand-based reseller OfficeMax has revealed what it will take to lure staff back to the office.

The OfficeMax State of the Workplace survey of more than 1,000 office workers found that salary still tops the list. However, ‘softer’ attributes such as purpose, culture, leadership and business integrity are also critically important to employee engagement, alongside a raft of must-haves with clear ties to pandemic work/life.

According to the study, respondents aged 55 and over put a higher

significance on having clean spaces (58%) and lunchrooms (51%).

Respondents in the younger age group (under 34) placed value on a modern office (22%) and break-out areas away from desks (14%).

More than half of those surveyed (53%) said what’s important to them in an employer has changed over the past couple of years – from personal values to the workplace. For example, 67% stated they would only work for a business that delivers a positive impact on society, while 35% sought out companies providing goods or services that benefit

society and do work which serves a local or global need (22%). An ethical supply chain was equally important.

Kevin Obern, Managing Director at OfficeMax, says: “We’ve seen a huge focus on areas like soundproofing, introducing quiet booths, and significant investments in technology and cafeteria enhancements.

“Businesses seem to understand that after spending the better part of a year working from home, employees now expect some of those comforts – like high-quality coffee and ultra-clean workspaces – in the office.”

Customers are starting to prefer packed food instead of open, deli and buffet-style servings

From more from OPI’s interviews on the topic of the breakroom segment, see our Xtra content in the July/August issue on opi.net

Meanwhile, Quantore has added its own brand to the disposables and coffee categories and now offers a one-stop service with machines for its members. “We have also extended our ranges of healthier food options,” says Albers.

Sticking with food, Office Snax’s Elmers believes sustainability will accelerate growth in the snack and candy sector in the coming years as we move through the generations. “While salty, meat and nostalgic snacks and brands continue to grow, millennials are focused on organic, non-GMO, etc snacks and treats.”

Healthier options are gaining momentum across the entire supply chain. AOPD’s Leazer, for example, has been engaged with US wholesaler Essendant about its new food and healthy snack offerings for the breakroom. He says dealers need to be tapping into these customer demands – or someone else will.

July/August 2022

BETTER OPTIONS A more environmentally friendly breakroom is high on the agenda in the post-COVID workplace.

The pandemic, says Anil Abrol, President of Canada-based compostable breakroom and foodservice products firm Eco Guardian, brought about a demand for disposables. “Unfortunately, many of them were single-use plastic,” he laments.

Clearly, while this situation was undesirable, the sheer amount of plastic waste created during the pandemic also served to highlight the issue.

“Many of our existing and new customers are seeking sustainable/compostable products for the breakroom, which means the industry is advancing faster because of the increased demand. It’s great news for everyone,” notes Abrol.

Indeed, sustainability often encompasses the entire category, as Henchel attests: “More clients are seeking eco-friendly solutions – everything from product sourcing and packaging to better waste management.”

Emerald’s Bianculli agrees: “Our category is exploding due to demand for more sanitary, one-time-use products. Sustainability maintains

CATEGORY UPDATE Breakroom

“The larger the breakroom customer, the more likely they will be interested in a micro market.

If you don’t offer this, the breakroom will mostly be lost to the distributor providing this option. A facility will typically need 100-150+ employees to support a micro market. However, as technology and equipment costs are coming down, so the headcount requirement will fall.”

Taking a similar standpoint, S.P. Richards SVP of Sales, Jan/San and New Business Development Nick Lomax states that, while vending is still around, there is a definite shift towards the marketplace format of micro markets. “Kiosks with self-pay options are becoming more popular and potentially offer a larger footprint with an accompanying broader offering,” he says.

a strong ‘pull’ from users, and ESG continues to grow. This has all played in Emerald’s favour.

“Additionally, we see more demand for cleaning products, towels and tissue, etc, as protocols have become increasingly stringent within the office environment.”

This is backed up by NPD research: an area within the breakroom category that is driving US retail growth in both dollars (13%) and units (2%) are disposable plates and bowls with a shift towards eco-friendly alternative materials.

In terms of unit sales of disposable plates and bowls by type, sugarcane was up by 136% and paper by 30%, while foam (polystyrene) and plastic fell by 27% and 3%, respectively.

Says Lomax: “Recycled, biodegradable and compostable products are more popular than ever due to the turn away from foam. Furthermore, foam products continue to be some of the most high-profile items constrained by global supply chain issues, which has opened up opportunities for sustainable alternatives.

He continues: “One issue has always been the trade-off between environmentally friendly products which have been around for years against the historic premium pricing to access those items. Fortunately, today several sustainable choices meet various price points, offering operators the chance to provide a strong, sustainable selection at competitive prices.”

And there’s plenty of innovation happening across all aspects of the breakroom too. For example, Eco Guardian has launched wood and fibre cutlery to complement its paper and bagasse range. “We’ve also released new takeout containers with clear lids as more customers are starting to prefer packed food instead of open, deli and buffet-style servings,” adds Abrol.

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CATEGORY UPDATE

Back on TRACK

The furniture sector is in a prime position to grab the opportunities presented by workspace revamps as companies try to entice employees back to the office

W

– by Michelle Sturman

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hat a lovely surprise – to speak to industry members where the overwhelming sentiment is positive. The office furniture category in 2021 was still so-so as many companies postponed – sometimes multiple times – return-to-office policies, trying to figure out remote working demands.

This year, as they have begun to rethink, finalise and implement plans to accommodate contemporary ways of working, it has resulted in more robust furniture sales due to workplace environments being revamped. Pretty much all operators OPI spoke to that deal with the segment had a strong start to 2022. Encouragingly, they expect this to continue for the rest of this year.

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POSITIVE BEGINNINGS David Guernsey, CEO of US independent dealer Guernsey, for example, reveals that the category actually performed very well for the company in 2021 too, and the same appears to be true for this year. “Guernsey has always maintained a significant position with public sector entities which is where both stability and growth is coming from.

There was little activity in 2021 in the private sector, but at the beginning of Q2 2022, we started seeing an uptick with these customers,” he says.

Cody Durbin, Sales and Business Development Manager at fellow US dealer GBP Direct also feels the private sector is ramping up again following

the “temporary blip” when work-from-home (WFH) negatively impacted the furniture business due to paused or cancelled projects.

It’s the same story from Fellowes Brands.

Talking to OPI, Chief Market Officer Monica Lopez says the sales climate so far this year has been strong compared to H1 2021, as a broader return-to-office movement has accelerated throughout the US. “We expect this trend to continue, with only a slight slowdown from the current pace in the last months of the year.”

S.P. Richards (SPR) SVP of Sales, Furniture and Corporate Accounts Eddie Baird further adds that the wholesaler got off to a great start in January and sales have been maintained. “We are witnessing robust activity for transactional and project business and feel confident this will continue into Q3 and hopefully Q4.”

During difficult times is when new ideas and businesses bloom Baird says SPR’s strength lies in the commitment it made to a strong inventory position, which has paid off this year. “We want to provide customers with next-day delivery as well as special options in this category and currently have a deep inventory in our distribution centres of Lorell and branded products. We have even more Lorell in our redistribution centre which supports our Global Sourcing and Lorell Quick Ship Direct Programs.”

Where SPR did encounter some problems has been with products in such high demand that they have outpaced even its large commitment to excessive inventory.

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UNCERTAIN TIMES AHEAD According to Simon Howorth, Marketing and Design Manager of UK manufacturer Dams, “the UK office furniture industry is buoyant at the moment and showing no signs of slowing down”.

Ergochair CEO Robert Lunga, meanwhile, refers to significant year-over-year growth of around 35%, with the past six months being exceptionally busy. That said, Lunga assumes “some reversion as recession fears start to solidify”.

Despite a somewhat shaky start to 2022, there has been a reduction in supply chain disturbances and supplier lead times have stopped expanding.

This easing up has clearly aided the furniture market recovery in the UK. “We anticipate this to remain the case until a macro-slowdown creates excess capacity in supply chains and shipping routes,” remarks Lunga.

Back in the US, Baird notes that with the surge in fuel prices – on top of freight costs – excessive price increases are impacting consumer spending the most. “It’s much easier for people to understand delays because of labour shortages and port hold-ups than massive price gains due to fuel costs. It will impact sales, more so with project decision setbacks and customers unwilling to pay fuel surcharges.”

However, he goes on to say: “The education and healthcare segments continue to be strong. These are two areas where we will see further increased needs and available funding because they are essential to society. The commercial segment will be consistent until companies determine their office space needs with a hybrid workforce.”

But, he adds: “Let’s not forget, during difficult times is when new ideas and businesses bloom. There will be small project and growth opportunities for sales people focusing on SMBs.” ALL CHANGE The rapid onset of hybrid and remote working has created somewhat of a conundrum for the office furniture segment and caused a mixed bag of opportunities. In terms of homeworking, VOW’s Warne refers to sales of home office desking now giving way to seating, with purchases on better products such as posture seating, for example, seeing a growth of over 50%.

SPR is experiencing strong demand for seating within the office environment too, including the replacement and upgrading of old chairs. “Seating is a low-cost investment and adds comfort and style. One specific sub-segment is soft seating designed for collaboration areas as well as for employees who work outside their designated workspace, but are still in the building,” says Baird.

Hybrid working is leading to companies evolving the way the workspace is utilised. As Chief Wellness Officer at Yo-Yo DESK Gavin Bradley explains: “Customers inform us that, in many cases, mass deployment of WFH/hybrid working has resulted in revolutionary thinking about the role of the workplace. As a result, offices everywhere are having their purpose, layout and equipment requirements re-evaluated.

“In addition, space allocation for desking has reduced drastically, in some cases by 50%.

However, there is a much greater appetite for investment in sit-stand desks.”

Kelly Link Eisenberg, Insights Specialist at Innovative Office Solutions in the US, sums up the refreshed work environment. It includes flexible, moveable and adjustable furniture, a focus on employee well-being, technology integration, and collaborative spaces.

July/August 2022

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CATEGORY UPDATE Furniture

Guernsey, for one, expects the residual supply chain kinks to slowly continue to iron themselves out, with the situation improving over the course of this year and a return to normalcy in Q1 2023.

Across the pond, the UK market sector is doing well too. From a wholesaler perspective, VOW Wholesale Furniture Category Director Vanessa Warne notes that, coming out of the pandemic, the category was the first to recover and has performed at pre-COVID levels for the past year.

In addition, she says, there has been a “very positive” response to enhancements to VOW’s Interiors workplace furniture service for dealers – especially the carriage-inclusive pricing, with free-of-charge end-user deliveries.

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Furniture CATEGORY UPDATE

offers employees the tools they need to feel safe, supported to be productive and fulfilled in what they do,” Lopez comments.

Guernsey states breakroom equipment and furnishings are “front and centre”, with customers requesting colours and textures to make the space lively, comfortable, cleanable and sustainable.

Expounding on this point, he says his dealership has developed the resources to entirely build out a breakroom: “From design and space-planning to installing furnishings and brewing, water and refrigeration equipment, we have trained technicians with skills ranging from plumbing to electrical and customised carpentry.”

Warne adds that the current penchant for dining upgrades extends to the outside – even in the UK – with bistro, alfresco and outdoor furniture becoming increasingly popular. She says it’s an area where VOW is looking to expand its range to offer more choice (for more on the breakroom sector, see Category Update, page 35).

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Explaining further, she adds: “Sit-stand desks are almost not even a question anymore and integrating power and technology throughout the workplace is no longer just an add-on option.

Meeting spaces now must have the ability to include remote employees, and the importance of areas for people to come together to collaborate and innovate has increased.”

But, she warns, customers are struggling with what to do and are trying to understand what their personnel need. “We offer enhanced services to support the design process and currently have a programme called ‘Insights with Innovative’. It includes interactive workshops to help companies gain awareness and deep understanding of a project or team to make sure it’s successful.”

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THE WELL-BEING FACTOR Everyone OPI spoke to agreed that of paramount concern for companies updating any workspace is employee well-being. “When people first returned to the workplace last year, the attention was on providing a safe environment to stop the spread of germs, with protective screens and social distancing measures in place,” observes Dams’ Howorth.

“Now the focus is more on creating the buzz people can get from being in the office, with new ideas for high-energy collaboration and furniture for social spaces.”

Fellowes’ Lopez agrees, reiterating the current sentiment for encouraging staff back to the office: “More people are returning in a full-time or modified hybrid format, compared to the previous two years. We are working with many businesses which want to reconfigure and reimagine their spaces to be inviting, collaborative workspaces that produce a positive state of mind, body and soul for their workforce.”

Fellowes is investing in product development following some of the leading COVID-19 workspace trends, including air purification, mobile and adaptable furniture for hybrid work and various types of dividers and accessories for ‘hoteling’. “We see these trends as interrelated and connected to our belief that a healthy workplace

Sit-stand desks are almost not even a question anymore

For more industry feedback on the office furniture sector, see Xtra content in the July/August issue on opi.net

A few years ago, ergonomics was one of the dominant trends. And so it remains as WFH has continued to highlight postural problems. In fact, it has turned ergonomics from a nice-to-have to a must-have, driving sales for both the home and office environment.

“We have seen a shift in thinking over the past 12 months towards looking for the best long-term solutions for WFH. Clients have decided that, since they spend at least part of their working life at home, they should invest in their equipment. For many, this means duplicating the specialist chair they have in the office,” says Lunga.

Link Eisenberg mentions workstation height adjustability as desirable among most, if not all, employees. Other notable trends include solutions such as monitor arms and highly adjustable task chairs and, of course, sit-stand desks. As she remarks: “Ergonomics and well-being is the trend.”

Furniture CATEGORY UPDATE

SUSTAINABLE REQUIREMENTS One can’t talk about well-being without incorporating sustainability, and the office furniture category is no exception. In continental Europe and the UK at least, it has shifted from a trend to a baseline requirement across the board.

“Companies’ ESG policies are demanding their suppliers consider sustainability and show they are working towards a zero-carbon operating model with sustainable disposal options,” explains Lunga. “How strict those stipulations are varies by customer at the moment. However, very few disregard it entirely, which is why Ergochair has a plan for green growth.”

While Yo-Yo DESK already has 100% eco-packaging, Bradley says the company is looking to upgrade components to contain 50% recycled materials. He notes that sustainable manufacturing and packaging practices have become essential.

Also delving into these two areas over the past couple of years, VOW has proactively sought to reduce plastic and polystyrene in its packaging.

The wholesaler has further sourced and resourced goods closer to home, including those manufactured in the UK. Talking about other progress, Warne says: “Due to the negative environmental impact of the manufacturing process, we intend to eradicate chrome in all products and components over the next couple of years. Customers are also asking for more recycled and recyclable products.”

DESIGN TIME At the end of May, Clerkenwell Design Week (CDW) returned for its eleventh edition, taking over London’s most creative district with the infamous pink trail. Since its debut in 2009, CDW has grown to become one of the UK’s leading independent design festivals, providing a platform for brands to showcase their products and for the 150+ resident showrooms to open their doors.

More than 30,000 visitors were treated to the latest in furniture designs, innovations and creative ideas, plus installations celebrating the fascinating history of Clerkenwell. Two in particular caught the eye. The first was Plant.Nurture.Bloom curated by Plant Designs, which highlighted the importance of planting within urban working environments.

The second was The Office Group’s Beautifully Sustainable – a vision of the future of work, challenging the industry to reassess and adapt its physical spaces for the future and to a more sustainable way of life.

As usual, CDW featured design-led fringe events, pop-ups, workshops, talks by leading designers and architects, and showroom presentations.

There were ten exhibition venues, each with a different curatorial focus, ranging from cutting-edge international design to emerging talent, lighting, luxury interiors and the best of British design.

Plant.Nurture.Bloom

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[Sustainability] has shifted from a trend to a baseline requirement

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Lopez explains sustainability is one of the top corporate drives at Fellowes, with the vendor pursuing a three-year roadmap specifically focused on advancing product, organisational and facility sustainability initiatives. “Sustainability has been a focus for years, driving us to excel in codes, standards and certifications like BIFMA Level and Indoor Air Quality for low VOC emissions for our furniture. We know it matters to dealers as well as their customers.”

The circular economy is something everyone should pay attention to, and dealers are embracing initiatives to handle this. GBP’s Durbin told OPI that the company tries to donate used furniture where it can to help keep it out of landfill and prolong its usable life.

Innovative also supports its clients by specifying products with recycled content and/or those that can be recycled after use. As Link Eisenberg elaborates: “We have access to a great decommissioning service that provides expertise to assist our customers in diverting furniture they no longer need from landfill by allowing them to donate, recycle and/or sell those items.”

Beautifully Sustainable

RESEARCH

Do the RIGHT THING Diversity, equity and inclusion can create a better workplace culture for all employees. They also make business sense – by Michelle Sturman

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G

44

eorge Bernard Shaw supposedly once noted: “Progress is impossible without change, and those who cannot change their minds cannot change anything.” This observation may easily apply to the world of work which has undergone a gradual transformation over centuries as we have become further enlightened.

At least this was the case until 2020 when, in a matter of weeks if not days, the global pandemic altered our working life. Against this backdrop has arisen a more vigorous assessment of what people want and how they wish to be treated as individuals through the lens of their employer. It has, in part, contributed to the Great Resignation.

With companies fighting to hire the best talent, Glassdoor’s Diversity Hiring Survey found that over three-quarters (76%) of job seekers and employees in the US are looking for an inclusive workplace when thinking about a career move.

Meanwhile, almost a third (32%) would not apply for a position where there is a lack of diversity.

For many, the pandemic has clearly brought to the fore issues of work inequality, a battle people have been fighting for years, with varying degrees of success.

Inequality is far-reaching, encompassing everything from bullying and harassment to the glass ceiling and social exclusion. It stretches across all forms of diversity including (but not limited to) sexual orientation, sex, gender identity, age, race and ethnicity, religion and beliefs, disability, neurodiversity and social class.

In this world of rapidly changing minds about what employees want from their employers, one acronym is taking centre stage, encapsulating the movement toward equality in the workforce: DEI (diversity, equity and inclusion) – sometimes also referred to as D&I (see ‘What does it all mean’ on page 46 for definitions).

INCREASING AWARENESS The International Labour Organization (ILO), in its Transforming Enterprises Through Diversity and Inclusion study released earlier this year, draws on a global survey with over 12,000 employees in 75 countries. One eye-catching statistic is that two-thirds of respondents say the coronavirus crisis brought about a heightened awareness of societal inequalities and has contributed to extra focus and action on D&I where they work.

D&I, health and well-being as well as flexibility have become top employee concerns. Comments related to D&I, for example, increased by 19% compared with 2019. Significantly, two-thirds of participants agree or strongly agree the pandemic experience increased expectations of their employer to promote diversity and inclusion.

While most business leaders recognise the urgency and importance of DEI, it is complex, can be notoriously difficult to implement successfully, and there’s no one-size-fits-all strategy. This is evidenced in the Future of Diversity, Equity and Inclusion 2022 survey from the HR Research

Percentage of job seekers and employees who would not apply for a position where there is a lack of diversity Source: Glassdoor

Diversity, Equity and Inclusion RESEARCH

WHAT DOES IT ALL MEAN?

Percentage of respondents who say their company offers DEI learning and development to all employees Source: HR Research Institute

Institute which reveals that most organisations still lack “mature and effective DEI programmes”.

The results are pretty stark. Only a paltry 22% indicate their firm’s DEI initiatives have reached expert or advanced stages, and a scant 9% rate them highly effective. On a more positive note, over 44% of those surveyed say they play a role in strategic planning.

Among those companies deploying metrics to measure the current state of DEI, the majority use basic compliance-orientated workforce data (56%), while fewer than half (42%) evaluate diversity within leadership ranks, recruiting outcomes (38%), diversity goals related to succession planning (23%) and equal job titles (20%).

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Focusing on diversity alone could even be counterproductive

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TRAINING GROUND As regards coaching and guidance, the HR Research Institute found just 40% of respondents saying their company offers DEI learning and development to all employees, with 69% citing unconscious bias training (UBT) as the most common programme. Nearly a quarter (24%) don’t offer any DEI-related training.

According to the Chartered Institute of Personnel and Development (CIPD), in its Diversity Management That Works report, the basic premise behind UBT is to educate people about prejudice and bias, and the techniques that can be deployed to reduce them.

However, CIPD warns that concerns suggest such workshops may “backfire”, inasmuch as those undertaking this training could subsequently feel “virtuous” and stop making an effort to rein in any prejudice and bias.

Indeed, inadequate training was one of the three most commonly cited barriers to DEI effectiveness by respondents (41%) in the HR Research Institute survey. The others were a failure to prioritise at top leadership levels (43%) and a lack of metrics to identify insufficient diversity (41%).

• Diversity: the real or perceived differences attributed to people and the representation of these differences within an organisation.

Diversity references are protected by law in certain countries: age, disability, marriage and civil partnership, race and religion, gender and gender reassignment, sex and sexual orientation.

• Equity: refers to fairness in terms of opportunity and outcome, and treating people according to their own needs. It recognises that treating everyone equally has shortcomings if it’s not a level playing field.

• Inclusion: the extent to which a culture is fostered and where everyone can thrive, feel valued, accepted and supported in the workplace, regardless of background, identity or circumstance.

• Equality: means equal rights and opportunities for all.

Sources: CIPD – Building Inclusive Workplaces; Journal of Consumer Research, Volume 48, Issue 5, February 2022 – Diversity, Equity and Inclusion

THE FULL PACKAGE A central component of any DEI strategy is inclusion. In CIPD’s Building Inclusive Workplaces report, its importance as a fundamental building block in any DEI initiative is summed up nicely: “Focusing on diversity alone could even be counterproductive as it doesn’t address the systemic challenges to workplace equality and inclusion, such as workplace culture.

“It instead puts underrepresented, or less ‘powerful’ groups in harm’s way, potentially doing more harm than good. Inclusion, then, might be a better starting point for organisations wanting to increase diversity.”

In other words, “an employee’s perception of inclusion relates to having a voice, being treated fairly and a sense of belonging [...] True inclusion arises where individuals feel they will be valued for their own unique views and skills, not when ‘different’ people are accepted into an organisation as long as they comply”.

As the Deloitte Review Diversity and Inclusion Revolution notes, the behaviour of leaders is vital in promoting inclusion, especially middle managers.

Diversity, Equity and Inclusion RESEARCH

It further reveals that an individual’s feelings of inclusion result in an increase in perceived team performance (+17%), decision-making quality (+20%) and collaboration (+29%).

However, ILO’s study also notes a disconnect as regards the feeling of inclusion within the work environment, with senior executives much more likely to report positive experiences compared to staff and managers. For example, 92% of executive-level respondents report feeling included at work compared with 76% of other staff.

There’s also a significant difference between enjoying respect and belonging at work – 86% of senior executives report positively compared with only 62% of other employees.

The results from PwC’s Global Diversity & Inclusion survey from 2021 tell the same story.

While just 15% of leaders believe they are not communicating to their organisation frequently about D&I, only 25% of HR professionals and 30% of employees consider this to be true. In addition, 74% of leaders compared to 54% of staff think their company regularly makes information available on the diversity of personnel and leadership teams.

ONWARDS AND UPWARDS According to the Future of Diversity, Equity and Inclusion 2022 survey from the HR Research Institute, organisations that perform better in DEI practices are more likely than others to: • Have support from the top to close pay gaps and an associated budget for it; • Include a wide range of characteristics in their definition of DEI; • Integrate DEI frameworks into their business strategies; • Make DEI quite visible to the workforce; • Emphasise DEI in succession planning and talent acquisition processes; • Deploy more advanced metrics, set additional goals related to DEI, and use added incentives to encourage it; • Provide training for pay equity, communication practices, anti-racism, inclusion awareness and inclusive recruitment policies; • Have programmes to improve diversity in the leadership ranks; • Offer more inclusive and family-friendly benefits.

Diversity + inclusion = better business outcomes

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CREATING VALUE According to the ILO report, there are several advantages of full inclusion: increased workforce commitment, productivity, collaboration and innovation, as well as improved levels of employee well-being.

It tallies with Deloitte’s research, which arrived at this conclusion: Diversity + inclusion = better business outcomes. The Review further reveals that firms with inclusive cultures are twice as likely to meet or exceed financial targets; three times as likely to be high performing; six times more likely to be innovative and agile; and eight times more likely to achieve better business outcomes.

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McKinsey also underscores the commercial value of DEI. Diversity Wins is the third in a series of reports that investigate the subject and offers a few eye-catching statistics.

The management consultancy firm found companies with over 30% women on the senior management team were significantly more likely to outperform those with between 10-30%.

These were, in turn, more likely to outperform organisations with fewer or no female executives.

The final result, says McKinsey, is a substantial performance differential of 48% between the most and least gender-diverse businesses.

The research, involving over 1,000 companies in 15 countries, suggests that “at the current rate of progress, it will take 29 years and 25 years, respectively, for the average US and UK organisation to reach gender parity on its executive team, and 18 and 13 years on boards”.

Turning to ethnic and cultural diversity, McKinsey notes there is an even higher likelihood of outperformance difference with ethnicity than with gender. By way of example, companies in the top quartile outperformed those in the fourth by 36% in terms of profitability.

EVENT

Shashi Caan

NEOCON 2022 REVIEW

HOTELIFICATION OF THE OFFICE

Q: What is hotelification?

A: Think of office interiors based on high-end hotels – a warm, inviting ambience and design which promotes collaboration and stylish coworking spaces with plenty of amenities.

Furniture that is highly functional and flexible.

Integra Seating and its Pax Poufs range

The Spino sofa from Scandinavian Spaces

PHYGITAL WORKPLACE DESIGN

Q: What does phygital mean?

A: The blending of the digital and physical realms fast-tracked by hybrid working. Phygital environments seamlessly sync remote and in-person workflows.

MAKING a STATEMENT

This year’s NeoCon exhibition proved once again why it is still the leading North American commercial interiors show – by Michelle Sturman

H

eld at The Merchandise Mart in Chicago over three days (13-15 June) and now in its 53rd year, NeoCon 2022 retains its place as the hub for connecting and sharing the latest innovations in commercial design. The show is an absolute must if you want to know where the workplace of the future is heading.

This year’s theme ‘Design Makes a Statement’ did exactly that, with over 400 brands showcasing thousands of new products. There was a wealth of engaging installations, renovated showrooms, as well as on-site activations, events and a jam-packed educational programme.

Overall, 47 virtual CEU-accredited seminars were on offer from leading industry experts spanning eight tracks: Workplace, Healthcare, Education, Facilities, Wellness, Sustainability, Design Skills, and Industry Direction.

Bruce Mau

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Hollman’s Amani Collection Acoustic Locker

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Ember table by KFI Studios

EVENT NeoCon 2022 Nick Cave (l) and Bob Faust

NeoCon Director of Programming Allison Kearns commented: “From examining how to make spaces more accessible to implementing biophilic design practices and exploring how non-fungible tokens and the metaverse will shape the future of design, we curated our 2022 CEU lineup to centre around themes that are rapidly growing in importance for our industry.”

The three keynote speakers were renowned artist Nick Cave alongside Bob Faust, founder of art and design studio Faust, designer and educator Bruce Mau, and design futurist and author Shashi Caan. Other presentations included talks by industry experts from entities such as Gensler, Mohawk Group, CBRE Design Collective and the Design Museum of Chicago, to name but a few.

The Best of NeoCon programme saw 99 awards handed out in 52 categories, with HALCON Furniture’s HELM table crowned the Best in Competition 2022 winner. It was also awarded Gold in two other categories.

The jury noted: “This groundbreaking table has a professional and high-end feel, while also meeting current user demands and expectations for wellness.

It is seamless and well-executed in all ways.”

The future of the office is always a hot topic.

This year, the shift in workplace needs has given rise to the major new trends of ‘hotelification’ and ‘phygital’ (page 50) as well as the increasing movement towards privacy and adaptability, and biophilia and well-being in the work environment.

BIOPHILIA AND WELL-BEING

Not a new trend in the workplace, but one that is receiving plenty of attention as employees return to the office.

Lichen Community by Mohawk Group

PRIVACY AND ADAPTABILITY

A burgeoning trend before the pandemic, providing private spaces is a must in today’s work environment.

HALCON Furniture’s HELM table The HON Company’s Astir Lounge

July/August 2022

BuzziHub from BuzziSpace

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5 MINUTES WITH...

Chris Finn

CAREER Q&A Describe your current job.

I’m VP at Schoen & Associates, the best manufacturers’ rep firm in the Midwest! I celebrated my 15-year anniversary in June – time flies when you’re having fun.

What’s your life philosophy?

Stay positive and never give up. You can do anything if you put your mind to it.

Best way to spend the weekend?

Adventures with my wife, Kristin, and our dog, Mochi. Walks in the park or on the dog beach, a beer garden – just relaxing and enjoying life.

What subject should be taught in school?

Entrepreneurship. The fundamentals of operating a business can be applied to all aspects of life.

Favourite time of the year?

Summer in Chicago. There is no better place to be from June to August.

What do you do in your spare time?

I love to travel, golf and ski, and spend time with friends and family.

What is humankind’s greatest invention?

Air travel. It has connected the world in ways never before possible and has had a major impact on almost every part of our lives.

What is on your bucket list?

Travel to all seven continents.

What’s your guilty pleasure?

Trainers. I love collecting limited edition shoes, specifically adidas YEEZY trainers (and slides). As Forrest Gump said: “There’s an awful lot you can tell about a person by their shoes...”

www.opi.net

Best compliment that you have ever received?

That my Dad would be proud of the person I have become.

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Chris Finn

Favourite office product?

My Supreme Kaweco Al Sport ballpoint pen.

What’s your worst character trait?

My wife would say that I talk a lot – all the time, to anyone and everyone.

Your favourite artist?

I have two – Takashi Murakami and Banksy.

If you could trade places with someone for a day, who would it be?

My dog. Mochi’s got it made and I would love to know what goes on in his head all day.

What would you serve at a dinner party?

A nice steak, grilled vegetables and quite a few bottles of wine.

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

Stick with it. It’s a great industry filled with great people. There is a ton of opportunity for the younger generation to get involved and make a lasting impact.

Your worst ever job?

The summer before starting college, I worked in a dry cement factory cleaning up around the machines.

It was hot, dusty and reminded me never to skip class.

Best moment in your career so far?

Being featured on this page in OPI! If you could change one thing about the industry, what would it be?

More positivity around its current state and future. We should focus more on the opportunities generated by change rather than the challenges it inevitably creates.

FINAL WORD

New way of working, NEW WAY OF STAFFING

L

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ife as an office supplies dealer has changed. Gone are the days of going to in-office appointments and sales calls, of everyone working in the office five days a week, of a work-from-home day being a special event requiring management approval. And gone are the days of providing the best work/life office environment by offering an amazing on-site workout gym, fully stocked snack bar, and open common spaces where staff could expand their creativity and happiness.

Businesses started competing to attract entry and mid-level staff with additional sign-on bonuses, higher salaries and more perks and benefits, often just to recruit mediocre staff to fill the position with a warm body. These employees were less than self-motivated and really weren’t looking at how they could help their company succeed with better customer service, higher revenue and more profitable deals.

If asked to work on an occasional Saturday morning for four hours, they would baulk and say they had other obligations and were not available even when I tried to plan weeks in advance. In essence, they were only interested in collecting a pay cheque and that’s about it. You might say it became an attitude problem.

At the same time – starting during the COVID-19 era – our customers had new demands and some old ones were forgotten. In particular, PPE became a big thing. Every public building, office and mode of transportation would be required to provide an endless supply of hand sanitiser, masks and, in some cases, gloves to anyone entering or using a service.

And all of a sudden, many of our customers’ staff were either lucky to still be employed and working from home, furloughed and collecting unemployment money, or completely let go (and collecting unemployment and monthly federal stimulus payments).

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STAFFING CHALLENGES In the case of my company, Gorilla Stationers, staff worked from home which, in the beginning, created minor new challenges – hearing the baby cry or the dog barking in the background during a conference call. Then I began to wonder if some of my employees were even working. I tried to empower them to make good decisions, but while before COVID it was always really easy to say “let’s have a meeting in the conference room at 10 am”, some people just weren’t available for a Zoom call at that time.

I implemented Time Doctor which is an employee time-tracking software, but staff were

offended by this ‘privacy’ invasion.

Slowly, people either embraced the new ways of operating from home or they left by attrition.

I decided to hire an offshore employee and teach him how to be a buyer. Wow! This was an eye-opener as he kept asking if there was anything else he could do to work more hours (he started at $2.50 per hour for all hours worked). I told him that he could work as many hours as he wished as long as they were productive and made sense. He would work on Saturdays and sometimes even a little on Sundays.

He became very proficient at his job and I asked him if he knew anyone else who would work as he did. To cut a long story short, my buying department is now six staff members strong and works completely offshore from the Philippines.

Rosemary Czopek, CEO, Gorilla Stationers

My buying department is now six staff members strong and works completely offshore CHANGING CUSTOMER BEHAVIOUR Many of the changes that have happened at Gorilla are a result of different customer behaviour.

The sales process takes longer, but the orders overall are larger. We’ve gone from a minimum of $75 for free shipping to $250.

Supply chain issues have required three additional staff members to just source and find products whereas, before the pandemic, something was ordered from A today and delivered to B tomorrow. Things are back-ordered for three months at times, or the manufacturer has placed an allocation on an item so there aren’t enough to fulfil one order.

Instead of 35% of our calls being answered by a real person, they now move in the 5% range with lots of voicemails and emails. Many of our customer-facing activities are outsourced – it helps us to rightsize Gorilla promptly and efficiently.

Sales have increased 400% and profits are up tenfold compared to pre-COVID years. I expect even more growth in 2022 and beyond – much of it generated online, of course.

The company is the same, but we manage staff and customers very differently today – for all of the above reasons. My team is more productive than ever before – and with lower costs. It may not work for everyone, but it certainly works for me.

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