Opi app july august 281 b

BIG INTERVIEW

Connecting the

business products world

Dominique Lyone, Complete Office Supplies July/August 2018

INSIDE THIS ISSUE

Special Issue

No mega acquisitions expected at HP l Staples Inc’s dealer strategy l NAOPA shortlist out l Tech providers have their say l Rick Toppin on City of Hope l Furniture: creating opportunities

SOLUTIONS

l

TECHNOLOGY

Special Issue

CONTENTS 16 Big Interview All the Antipodean action up close with Dominique Lyone 25 Hot Topic Could Staples become the IDC’s new best friend?

51 Category Update Furniture: buoyant and full of potential 58 Advertorial Fellowes: a brand in motion 61 Review: Clerkenwell Design Week Innovation at London’s CDW 64 Preview: NAOPA 2018 NAOPA shortlist revealed 70 Review: European Forum 2018 OPI’s event in a nutshell

Special Issue Big Interview: Dominique Lyone, Complete Office Supplies

As the OP marketplace in Australia goes through a major transformation, independent dealer Complete Office Supplies (COS) scales up to face the competition headon. Heike Dieckmann caughtSpecial up with company founder Issue and CEO Dominique Lyone at OPI’s recent European TECHNOLOGY SOLUTIONS Forum in London to discuss COS’ acquisition of Lyreco’s Australian business, his plans for COS going forward as well as the country’s fast-evolving OP landscape.

HOT TOPIC: STAPLES – THE IDC’S NEW BEST FRIEND?

SOLUTIONS 30 Feature Tech solutions providers have their say

Special Issue

TECHNOLOGY

40 Spotlight What e-commerce software are dealers using and why?

SOLUTIONS

44 Opinion Rick Marlette on dealers’ “failure to appear”

Special Issue

46 Feature An update on EPIContent

VENDOR SPECIAL

48 Advertorial Who is ES Tech Group?

REGULARS

Special Issue

VENDOR SPECIAL

5 Comment

Issue

VENDOR SPECIAL

6 News

72 5 minutes with...

Mike Tucker 74 Final Word Rick Toppin

July/August 2018

For most dealers within the IDC, Staples defies almost all of what the IDC stands for. There is a completely different value proposition that the IDC promotes and delivers. In my opinion, if I, as an independent dealer that has spent decades messaging how we differentiate ourselves from Staples, Depot and the big boxes in general, were to now align myself with any of them, it would signal to my customers that I was hypocritical as well as disingenuous.

Utilising Staples’ technology and marketing, as Special well as sourcing through them, would most likely be a one-way path to full acquisition. All in all, it appears to me that Staples has come to the realisation that it really doesn’t have the capacity to provide the high-touch service that end users truly value.

After all, if it did, why would the IDC still exist?

TECHNOLOGY

3

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

SALES & MARKETING VP – Continental Europe, Middle East and Africa Ewan Dickson +44 (0)20 7841 2954 ewan.dickson@opi.net VP – North America and UK Chris Turness +44 (0)20 7841 2953 chris.turness@opi.net Director of Growth Services Jeremy Hughes +44 (0)7807 810617 jeremy.hughes@opi.net Digital Marketing Manager Aurora Enghis +44 (0)20 7841 2959 aurora.enghis@opi.net

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

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

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

S

Unlikely bedfellows, but so it starts...

taples Inc certainly didn’t hang around following its recent admission to OPI that more extensive partnerships with dealers are very much part of its current strategy. While the exclusive interview with CEO Sandy Douglas was published on opi.net on 12 June 2018, the more digested version with industry commentary appears in this very issue of OPI (see page 25).

“So much for partnering,” was my first reaction to the HiTouch acquisition (see page 7). Buying the second-biggest independent in the US and folding it into Staples Business Advantage appears to be a rather one-sided transaction, although no doubt it coincided very nicely with HiTouch’s plans. It is hardly indicative of Staples’ intention to truly partner with dealers on a non-acquisition basis, however. Nor does the potential takeover of Essendant seem to play a pivotal role here.

Buying the second-biggest independent in the US and folding it into Staples Business Advantage appears to be a rather one-sided transaction One point that Douglas alluded to when talking to OPI was the access to scale and technology that dealers partnering with Staples – in whatever shape or form – would benefit from. There’s no arguing with that, if all other obstacles can be overcome. And both aspects are extremely important and much needed in today’s ultra-competitive business environment. The technology topic in particular is covered in some detail in this issue of OPI – look out for the purple Technology Solutions sticker to navigate around your copy.

The next issue of OPI will pick up on one of the hugely successful presentations at our recent European Forum in London, UK (see page 70 for a review) – how to digitally transform your business. Don’t miss it!

But back to this issue. I was intrigued to read Mike Tucker’s answer in our 5 minutes with... (page 72) to the question: If you could change one thing about the industry, what would it be? He replied: “Make the large national chains disappear. Their tactics have taken a lot of integrity out of the industry.”

Maybe so, but surely those same chains have also vastly contributed to making the IDC what it is – in large part – today: utterly resilient, more tech-savvy and with a customer service record that remains unrivalled. I’m sure Sandy Douglas would agree.

HEIKE DIECKMANN, EDITOR Have a great summer.

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

Connecting the

business products world

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

CBP0009242909111341

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.

OPI is printed in the UK by

July/August 2018

Follow us online

The carrier sheet is printed on Satimat Silk paper, which is produced on pulp manufactured wood obtained from recognised responsible forests and at an FSC® certified mill. It is polywrapped in recycleable plastic that will biodegrade within six months.

5

NEWS

Analysis:

No mega acquisitions for HP Inc HP Inc CEO Dion Weisler has said not to expect his company to be involved in $10 billion-plus acquisition deals for the foreseeable future Interviewed at a recent AllianceBernstein Strategic Decisions Conference in New York, HP Inc CEO Dion Weisler said he expected to see continued merging in the print space, but that HP wouldn’t “surprise the market” by jumping in and making an acquisition in excess of $10 billion. That would appear to rule out a move for Xerox following its failed merger attempt with Fuji – according to investor Carl Icahn, Xerox has been valued in the region of $15 billion.

With more than ten major players in the flat and mature laser print segment, Weisler commented that he expected consolidation to occur both organically and inorganically. This might not be unlike what happened in the PC market when the likes of Samsung, Toshiba and Sony exited the space altogether.

www.opi.net

STRATEGY FOR GROWTH Weisler did concede that M&A activity remains a key component of HP’s growth strategy, but added that it wouldn’t be a question of buying market share just for the sake of it. He pointed to

6

last year’s acquisition of the Samsung print business (known as S Print) as a technology and strategic move into the $55 billion A3 category.

Samsung also has a sizeable presence in the A4 market, and HP’s acquisition was seen at the time as a possible competitive move against long-time partner Canon. Weisler, though, said he had just returned from meeting with Canon’s leadership in Japan and that the 35-year joint venture relationship between the two firms had “never been stronger”. Even though HP probably now has the technology to go it alone in the A4 category, Weisler pointed out it did not make commercial sense to do so and that the relationship with Canon would continue.

HP doesn’t have its head in the sand regarding the future of printing The two companies will also “aggressively” defend their intellectual property, commented Weisler, in response to a question about China-made clones. He said he did not have a problem with legal aftermarket products, but added that it was “disturbing” when customers are tricked into purchasing what they believed to be genuine HP supplies.

DEALING WITH DECLINE AllianceBernstein research analyst Toni Sacconaghi provided some interesting anecdotal evidence about how companies are cutting down on their print output. He spoke about a company initiative called AB Paperless where employees are given $400 if they swap their desktop printer for an iPad. This is being done in order to reduce the perceived environmental impact of consuming paper as well as trying to reduce the $2 million a year the company spends in toner outside of its managed print programme.

Weisler responded by saying that HP doesn’t have its head in the sand regarding the future of printing and especially with home-based printing. However, he pointed to the “incredible success” of products such as the Sprocket mini wireless printer which is driving demand for print among younger consumers, and to HP’s strategic roadmap which will consider megatrends to fuel print demand.

In the commercial space – which Weisler described as flat – HP has a runway for growth in the A3 category as it integrates the S Print business. The target is to achieve market share of 12% – around $6 billion in annual sales – by the end of the 2020 financial year.

Staples Inc has acquired Tennessee-based progressive dealer HiTouch Business Services for an undisclosed sum. Following the recent revelation by Staples’ new CEO Sandy Douglas that the reseller wants to partner with – or buy – US independent dealers, we are now seeing that strategy in action (see Hot Topic, page 25, for more information).

HiTouch – its largest entity is MyOfficeProducts (MYOP) – is the second-largest independent dealer in the US behind WB Mason. It was founded in 2010 by Howard Brown and his son Michael, four years after they had sold their previous dealership Allied to Office Depot and then promptly went out and acquired MYOP after their restrictive covenants related to the Allied sale had expired.

HiTouch expanded fast, acquiring dealers and folding them into the MYOP organisation as well as developing other value-added business services such as IT services and workplace design. Nevertheless, it is an open secret that it had experienced some financial issues in 2016/2017, resulting in a $13 million charge on receivables at its first call wholesaler Essendant in the fourth quarter of 2016.

It subsequently got its house in order, something that included the sale of its Rentacrate business in a management buyout in 2017, but it is no great surprise that the company has been sold.

Staples said that HiTouch will now be a part of the Staples Business Advantage delivery organisation. “Its customers will have access to a greatly expanded assortment of products, the latest e-commerce tools and a world-class supply chain, while still receiving the same level of dedicated one-on-one service they’ve always seen from HiTouch’s local sales teams,” the big box operator said in a press release.

Staples confirmed that HiTouch’s marketplace website will continue to serve as an independent platform run by the HiTouch management team, and that this would help Staples’ growth into alternative distribution channels.

To what extent Staples’ acquisition of HiTouch impacts its quest to acquire wholesaler Essendant is not clear, but the deal shows that Staples is not hanging around to wait for that situation to pan out, nor is it reliant on acquiring Essendant to pursue its dealer partnership strategy. In fact, the acquisition is consistent with comments made recently to OPI by Douglas.

ACCO grows in Mexico

ACCO Brands has significantly expanded its footprint in Mexico with the acquisition of education and craft products supplier GOBA Internacional for around $31 million.

The transaction enables ACCO to strengthen its presence in Mexico’s fast-growing consumer and education segments with the addition of GOBA’s well-known brand partners in the region such as school supplies label Barrilto, as well as improving ties with COLOP, Delta, Sizzix and Acme.

ACCO estimates a full-year incremental sales contribution from the deal of approximately $41 million, while total annual sales in Mexico are expected to rise to $90 million. The deal is expected to close in August.

IN BRIEF IS announces first annual Connexions event US-based dealer group Independent Stationers has revealed that its Connexions powered by IS Contract furniture solution programme will host its first yearly meeting.

The Race to Success event will consist of vendor/dealer meetings, educational opportunities, team building and networking, and will take place 7-10 September 2018.

NEWS

Staples Inc buys US mega dealer HiTouch

Xerox names new President/COO Xerox has announced the appointment of Steve Bandrowczak as President/COO, effective 25 June 2018. He joined Xerox from Alight Solutions, where he was COO and CIO. Prior to that, he was President of Telecommunication Media and Technology at Sutherland Global Services.

Despec Nordic acquired by Systeam The Nordics division of IT and office supplies wholesaler Despec has been bought

by IT distributor Systeam. The German company, which also operates in Austria and Switzerland, will now expand its existing sales territory into Denmark, Finland, Iceland, Norway and Sweden.

Georgia-Pacific sells nonwovens business Georgia-Pacific has sold its European nonwovens business to specialty papers and engineered products manufacturer Glatfelter for $85 million. This includes Georgia-Pacific’s operations located in Steinfurt, Germany, along with sales offices in France and Italy.

Bruneau expands services offering French OP reseller Bruneau has signed a strategic partnership with local telecoms operator Keyyo Communications. Keyyo’s entire telecoms and IT platform will be made available to Bruneau, which will then sell a suite of services under the Bruneau brand.

OptiGroup acquires again European print and facilities supplies distributor OptiGroup is acquiring 100% of the shares of Netherlands-based packaging distributor Packagegroup Moonen. The purchase price was not disclosed.

BJ’s sets IPO share price BJ’s Wholesale Club expects its IPO to be priced between $15-$17 per share, giving the company a market capitalisation of up to $2.15 billion. The club chain is offering 37.5 million shares, which could raise around $638 million.

July/August 2018

New concept Sam’s Club opens Walmart subsidiary and bulk retailer Sam’s Club has opened its first e-commerce store.

The new store in Memphis (TN) is the first in a planned series of fulfilment centres, which will be adapted from former club locations.

7

NEWS

9 EOPA 2019 open for entries

OPI is accepting entries for the prestigious European Office Products Awards (EOPA) from any business supplies organisation in Europe.

The awards are now in their 18th year, and recognise commercial performance, innovation and professionalism.

The winners will be selected by a judging panel of top industry executives and presented on 5 March 2019 at an awards ceremony in Amsterdam, the Netherlands. The closing date for entries is 23 October 2018 and submissions can be made online at www.opi.net/EOPA2019.

Entries and nominations are now being accepted in the following categories: Product of the Year l Marketing Campaign of the Year l Initiative of the Year l Video of the Year l Reseller of the Year (over €100 million) l Reseller of the Year (under €100 million) l Vendor of the Year l Wholesaler of the Year l Young Executive of the Year l Professional of the Year l Industry Achievement

l

Further information about the EOPA and the specific categories is also available online, or email awards@opi.net.

WHO’S WHO IN OP

Top 100 new entry 2018: Jean-Yves Sebaoun Jean-Yves Sebaoun is a brand new entry to the OPI Top 100, having recently been named as Managing Director of France-based B2B reseller Fiducial Office Solutions and succeeding Laurent Bertrand in that position.

By way of explaining the change in leadership, Fiducial Group said the office supplies market was undergoing profound changes and that its Fiducial Office Solutions subsidiary needed to implement a new and ambitious development strategy.

And the former head of ADVEO’s French operations is the man to drive that transformation. Sebaoun is certainly an experienced and seasoned OP executive. He joined Spicers France in 1997 as COO before becoming its Managing Director in 2001. After a period as interim CEO of Spicers Europe when DS Smith said it would sell the wholesaler, Sebaoun became CEO of ADVEO France, a position he occupied for several years until his departure in early 2017.

Last year, Fiducial Office Solutions had sales of around €180 million ($225 million). The majority of its business is derived from the French market, but it also has operations in Belgium and Luxembourg. Sebaoun is now tasked with helping the company achieve its growth and profitability objectives.

Deflecto 2018 Ride for Hope

Workspace products manufacturer Deflecto is fundraising for 2018 Ride for Hope to raise money for the City of Hope.

The ride is a three-day Harley-Davidson motorcycle trip that takes participants 650 miles through four states in the US. It begins in Indianapolis (IN), and makes scheduled stops in Elizabethtown (KY), Nashville (TN), Chattanooga (TN) and Atlanta (GA), before arriving at the Lake Oconee Resort in Greensboro (GA).

Ride for Hope is part of City of Hope’s 2018 Generation of Hope campaign, led by this year’s honouree SP Richards President/CEO Rick Toppin.

The event takes place on 29-31 July 2018. To ride, sponsor a rider or donate, visit https://ourhope.cityofhope.org/campaign/ ride-for-hope-2018/c176582.

www.opi.net

Stationery Show Manchester 2018 cancelled

8

Organisers of the Stationery Show Manchester 2018 have cancelled the event just a year after its inaugural launch. Ocean Media Group cited a tough retail market, cautious buyers and uncertain suppliers as reasons for the cancellation. Instead, the organising team will focus its efforts on the rebranded Stationery Show London 2019.

A new buyer programme for northern and Midlands-based retailers will be introduced for London 2019 in place of the Manchester show. The Stationery Show London will take place at the Business Design Centre on 30 April and 1 May 2019.

Codex acquires Staples Advantage Ireland Independent office products dealer Codex has acquired the office supplies business of Staples Advantage Ireland. The integration of the two companies will take place over the coming months, and Codex will begin servicing the additional account base from the beginning of July.

All five members of staff at Staples will move to Codex, with the rebranding process to start immediately. Further details of the transaction were not disclosed.

Staples sells Dutch stores

Staples Solutions has sold its 39 stores in the Netherlands to KantoorExpert, a Dutch supplier of office products. The company, which has four stores and sales of €13.5 million ($15.6 million), has reached an agreement to take over the much larger Staples Office Centre – which has annual revenues of €80 million – for a purchase price of €40 million.

The deal comes after Office Centre – which was acquired by Staples Inc in 1999 during the height of its European expansion period – was put on the market by Staples Solutions’ private equity owner Cerberus after it decided that retail operations in the Netherlands did not fit in with the new Staples philosophy.

Following the acquisition, the Staples name will be dropped, and the stores will revert to their previous Office Centre branding. Staples Solutions also has retail operations in Germany, Portugal and Norway, and the sale of Office Centre may just be the first in a number of such deals.

Inaugural iOPA meeting takes place in London The inaugural meeting of the International Office Products Alliance (iOPA) took place in conjunction with the recent OPI European Forum in London (see page 70 for a full review of the event).

Senior executives from the five member companies – Office Choice (Australia), TriMega Purchasing Association (US), Novexco (Canada), Office Friendly (UK) and Inovocom (South Africa) – were all in attendance.

The meeting was held over one and a half days and set the framework for increased collaboration between the companies. iOPA was formed in early 2018 to share knowledge, experience and intellect of globally recognised companies within the office products market. During the meeting, the group locked down several key opportunities, including global private label branding, best practice in traditional and digital marketing, and shared IT platforms and tools.

Each initiative will be led by individual businesses capitalising on the strength of each organisation.

As well as a schedule of online meetings, the group said it is looking to reconvene over the coming 12 months to continue the collaboration and to extract value from the alliance for each of the member companies.

NEWS

New MD for ADVEO Benelux GNS moves Officesmart to Office Choice Australia-based Office Choice and GNS Wholesale Stationers have announced a new partnership to provide management and marketing support services to Officesmart dealers.

As part of the agreement, GNS-affiliated Officesmart dealers will be able to access the full range of Office Choice’s membership packages, including marketing tool kits and business development tools as well as a customised e-commerce web platform.

Office Choice and GNS first collaborated five years ago when the dealer group put into place a national preferred wholesaler programme.

In a letter to Officesmart members, GNS CEO Paul Yardley said that member feedback suggested current Officesmart catalogues, brochures and websites were unlikely to be able to fulfil members’ requirements. In addition, members have evolved to the point where GNS would not be able to manage a cost-effective programme that would meet all the needs of its dealers.

He added: “Both GNS and Office Choice are confident that the partnership will greatly assist active Officesmart members to accelerate their office supplies objectives within their businesses.”

Hauck leaves Essendant

Essendant VP Marketing & Digital Michael Hauck has parted ways with the US-based wholesaler and moved to digital content management platform firm Salsify.

Hauck joined Essendant in 2013 as Senior Digital Marketing Director of Product Content after working in various digital roles, including stints at Manifest Digital and Lyons Consulting Group.

He was active in the business supplies industry and was elected as one of the first members of the BSA’s Standards Council, for example.

Director of Digital Services Toni Green and Marketing Director Kevin Casey have taken charge of marketing and digital at the wholesaler in the meantime.

European wholesaler ADVEO has announced the appointment of Roland Laschet as Managing Director for its Benelux subsidiary.

Laschet has more than 15 years’ experience in the business supplies industry. Prior to joining ADVEO, he was Commercial Director Benelux at SSI Schäfer Shop. Before that he held various managerial roles at Staples including Managing Director Retail & Online Benelux, Managing Director Office Centre Belgium and General Manager Office Centre.

Effective 1 July, Laschet takes over the role from Ronny Van Rossem, who left the company after joining in May last year.

Facilities Show 2018 looks to the future

The 2018 Facilities Show in London, UK, looked at what lies ahead in terms of office spaces and sustainability. The three-day event took place from 19-21 June at the ExCeL venue in the capital, running alongside the Health and Safety Expo, Field Service Management Expo and the Professional Clothing Show.

Sustainability was a main theme of the show, with a particular emphasis this year on reducing the amount of plastic in the workplace, rediscovering old technology and improving it to be eco-friendlier. Seminars focused on how the facilities management (FM) sector has developed with increased regulation and social pressures on environmental issues, and how it can respond moving forward to benefit from greater sustainability.

Another big theme at the event was the cultural shift in workplaces to accommodate more flexible working and adapt to changing employee needs.

There were sessions on how smart buildings will develop and affect the industry, as well as a debate on what staff will expect from future workplaces and how the FM sector will manage them.

The Facilities Show this year launched a new zone dedicated to health and well-being and held a comprehensive programme of seminars on all three days. These focused on a range of issues relating to employee well-being and how staff experiences in the office can be improved. They also included practical tips for employers on how to implement changes.

Keynote speeches came from Ruby Wax, who addressed the importance of communication within businesses and organisations; Nicky Moffat CBE, who spoke about career development for women in leadership roles; and Sir Clive Woodward, who gave a speech on how back-room expertise can be applied to businesses in preparation for challenging situations.

The Facilities Show will return to the ExCeL centre on 18-20 June 2019.

Follow us on Twitter @opinews

www.opi.net

BIRD FEED

10

@anadams When the boss says he wants a door added to the #FAC18 stand design at the last minute. Don’t argue just sort it...

@EliteGuernsey Koda’s been working hard selling Cool Earth paper and is now going out on deliveries with his Dad in the electric van. #TakeYourDogToWorkDay

@Bradbeer257 More preparations for tonight’s #awards #clothingawards #professionalclothingawards @ Pcdirectore @PCIAWOfficial @ badgemasterltd well underway

@officeworx The #OfficeworxTeam completed the 90km @RideForRyderLCH Well done!! #MakingADifference

IN BRIEF ADVEO agrees additional financing European wholesaler ADVEO has said it has signed an exclusivity agreement with a new funding partner that will lead to €33 million ($39 million) in additional funding. It has not, however, named the funding partner.

Nominations have opened for this year’s BOSS Awards. The categories, unchanged from last year, are: • Brand Manufacturer of the Year • Dealer Excellence • eBusiness • Initiative of the Year • New Products of the Year • Outstanding Achievement • Professional of the Year • Publication of the Year • Service Provider of the Year • Sustainable Business • Unsung Hero

The awards ceremony will be on 29 November 2018 at the Tower Guoman Hotel in London, UK. There will also be an industry technology showcase event on the day of the awards, with further details being released nearer the time.

The deadline for entries is 20 July 2018. Visit https://bossawards.co.uk for more information and to enter.

New management for Lamy

Writing instruments brand Lamy has announced a change in leadership. Managing Director Bernhard Rösner stepped down after almost 12 years in the role due to an internal disagreement on the strategic orientation of the Germany-based company.

The firm has decided to replace Rösner with a three-person team of experienced long-term employees. Beate Oblau now leads the marketing, PR and product development side, while Thomas Trapp has been put in charge of worldwide sales. Peter Utsch, previously Head of Commercial Management, assumes responsibility for production and logistics operations.

Left to right: Thomas Trapp, Beate Oblau and Peter Utsch

Sad news from Garvey’s Office Products

New appointments for Office Depot Europe Office Depot Europe has made two senior management appointments as part of its renewed business strategy. Patrick Dittli will join Office Depot Europe as COO, while Udo Heskamp has been appointed as CFO. Both bring with them strong international experience from a wide variety of industries.

President of Cintas to retire J Phillip Holloman has announced his retirement as Cintas President/COO effective 31 July 2018. He has been with Cintas for 22 years and is a founding member of Cintas’ Diversity Committee.

RJ Schinner announces expansion plans Redistributor of non-food disposables RJ Schinner is expanding with a new location and increasing the size of its five warehouses. The additional location, combined with the planned growth on existing sites, will bring the total size of operations to 1.5 million sq ft (150,000 sq m).

HP names new Personal Systems President HP Inc has named Alex Cho as its new President of Personal Systems business, effective immediately. Cho succeeds Ron Coughlin who is leaving HP to pursue an opportunity outside the technology sector.

Cho most recently served as VP and GM of the company’s Commercial PC business group.

New marketing head for Office Brands Australian dealer group Office Brands has appointed a new Head of Marketing.

Phyabae Leong has taken the position, joining the Office Brands’ management team.

Leong is a Certified Practicing Marketer with more than 13 years’ experience in both B2B and B2C marketing.

IP drops bid for Smurfit Kappa US-based International Paper (IP) has announced it will not pursue the acquisition of Ireland-based Smurfit Kappa. IP cited lack of engagement by Smurfit Kappa’s board of directors and management as the reason for the withdrawal.

Cenveo gains stakeholder support on reorganisation plan Envelope and print firm Cenveo has reached an agreement on its reorganisation plan with its major stakeholders. The terms of the ‘Plan of Reorganization’ will enable Cenveo to exit Chapter 11 – which it filed for back in February.

July/August 2018

OPI is saddened to learn of the passing of Bernard Garvey Sr, founder of what is now Garvey’s Office Products. Bernard Garvey Sr joined the OP industry in 1955 working as a sales rep for Schiller & Schmidt in Chicago (IL) until purchasing the business in 1968.

Through hard work and application of his good nature, Bernard Sr built a solid business that employed dozens and supported his large family of eight children.

Renowned for his sense of humour, he made many good friends in the industry from the ranks of customers, vendors and competitors.

In 1979, his son Bernard Garvey Jr joined him in the business, followed by other children over the course of the next several years. After a career spanning 37 years, he sold the company to his family who changed its name to Garvey’s Office Products.

Along with Loretta, his wife of 61 years, Bernard Sr then began a career in residential real estate. Together, they made a great team passing on their knowledge of the community.

Bernard Sr is survived by his eight children: Michael (who also works in the business), Bernard Jr, Mary, Kenneth, Catherine, Kevin, Sheila and Daniel, their spouses, 26 grandchildren and one great-grandchild.

NEWS

Entries for 2018 BOSS Awards now accepted

11

OBITUARY

Jim Hebert, founder/CEO, Office Partners US office products industry legend Jim Hebert sadly passed away on 19 June 2018 at the age of 70. Not that Jim would want us to refer to him as a ‘legend’, ‘icon’ or anything else along those lines. He spent the past 20 years trying to avoid the limelight and not trying to impress anyone, instead just getting on with the job he loved doing, surrounded by the people that meant the most to him – his family and ‘extended family’ of dealers and suppliers at Office Partners.

“I didn’t want anyone to know what we were doing and how we were doing it,” he said after collecting the Industry Achievement accolade at the North American Office Products Awards at the SP Richards ABC show in Las Vegas, Nevada, in 2015. In fact, that was his second such award in a matter of months after being honoured by the Business Solutions Association at the end of 2014, industry recognition that he described as a “humbling” experience.

After doing two tours of duty in Vietnam in the US Marine Corps, Jim’s career in the office products industry began at Office Outfitters in Kenosha, Wisconsin, driving the delivery truck. In the early 1980s, he moved to BAT in Zion, Illinois, rising up through the ranks to become Head of Purchasing. That purchasing role and a growing reputation helped Jim get a job at the National Purchasing Association (NPA) in Jackson, Mississippi, and then at National Office Buyers (NOB) in Alabama.

When NPA and NOB decided to merge, staying in the new organisation would have meant moving back to Mississippi. It was then that Jim and his wife Diane took a life-changing decision: they would stay in Alabama and start their own dealer group from scratch. Office Partners was created in 1998. “We had no dealers, no vendors and no money,” recalled Jim, but he was able to negotiate good terms with vendors, giving him something to go out with and sell to dealers.

Office Partners now represents around 600 dealer locations, but has always remained what Jim called a ‘little old country store’ – a tight-knit, family-owned and run business much like most of the dealers in the group, where business is done on one’s word and a handshake, and you always know where you stand.

If there was ever a person in the office products industry who was known for his high integrity, it was Jim, and the plaque in his office that says ‘Friend of the Vendor’ was not there by accident.

OPI extends its deepest condolences to Jim’s wife Diane, their children Matthew and Lisa, family members and all the Office Partners family.

Chris Milliken, former CEO, Boise Office Solutions & OfficeMax It is with great sadness that we learned of the passing of Chris Milliken, also on 19 June 2018. Chris was the former CEO of Boise Office Solutions and, later, OfficeMax after the two companies merged in 2003.

Chris graduated from Clemson University, South Carolina, in the mid-1970s. His first taste of the office products industry was as a buyer for department store Marshall Fields in Chicago, Illinois. However, it was at Boise Cascade where he made his mark on the industry, joining the forestry and office products firm in 1977.

Rising to SVP of the group’s office products division, Chris was appointed CEO of Boise Cascade Office Products (later Boise Office Solutions) in 1998. Under his leadership, there was a laser focus on providing the best customer experience – Boise was an early adopter of technology such as e-commerce that we take for granted today.

On Milliken’s watch, Boise acquired big box operator OfficeMax for $1.2 billion at the end of 2003. He oversaw the integration of the two companies before retiring in February 2005 following an accounting scandal.

In retirement, his favourite pastimes included sailing, golf and cards. Chris is survived by his wife of 49 years, Nancy, their two children Kate and Christopher Jr, and four grandchildren.

A memorial service for Chris is planned for later this year in Lake Forest, Illinois.

www.opi.net

These pictures of Chris Milliken were published in OPI in 1998/1999 in his Boise Cascade heyday

12

BIG INTERVIEW

Antipodean

ACTION As the OP marketplace in Australia goes through a major transformation, independent dealer Complete Office Supplies scales up to face the competition head-on

A

ustralia has rarely been out of office products news over the past 18 months or so, but the biggest stories have revolved around the big box operators in the country. Three of them have in fact been up for sale in this period – OfficeMax (as part of US-based Office Depot), Winc (formerly Staples Australia and New Zealand) and Officeworks.

Unbeknown to many, a fourth one was evidently up for sale too – Lyreco Australia – and it was fellow independent Complete Office Supplies (COS) that snapped up the struggling player in that market in May. COS itself has always had a firm ‘not for sale’ sign on its door, but founder and CEO Dominique Lyone realised the urgency for more scale when ‘Max and Winc went on the market (and made a bid for the former). This became even more important when the two eventually combined under the Platinum Equity umbrella.

At OPI’s recent European Forum in London, UK, Heike Dieckmann caught up with Lyone to discuss the acquisition of Lyreco’s Australian business, his plans for COS going forward as well as the fast-evolving Australian marketplace as a whole.

OPI: You’ve been featured in these pages before when we went into some depth about your background and that of the company. In a nutshell, how would you describe COS now?

Dominique Lyone: I would call COS a typical contract channel player today. All our customers are B2B. About 50% of our business is from government, another 30-35% enterprise and then we’ve got a very long tail.

www.opi.net

OPI: You had retail at some stage too, didn’t you?

DL: Yes, a long time ago. The reality is I know nothing about retail and for us it was a total failure.

I’ve never attempted to go back there – it’s not me and it’s not what I do.

16

OPI: The most recent news coming from COS is of course the acquisition of Lyreco in Australia. Let’s start with the numbers. What does COS look like now as a result of adding Lyreco to the picture?

DL: Our combined revenues today are A$215 million (US$160 million). We have about 500 staff. In terms of logistics, Lyreco has five distribution centres (DCs).

COS has seven. All of these are being consolidated so we’ll end up with seven again ultimately.

OPI: Are you closing all the Lyreco ones and keeping yours?

DL: No, in one instance we’re keeping Lyreco’s DC and closing ours. The Lyreco one is a better fit for what we need.

OPI: That implies a huge amount of previous overcapacity if you’re still working with seven DCs in total.

DL: That’s one of the core issues of the industry, isn’t it – we all have overcapacity in our infrastructure; it’s part of the reason we’re seeing so much consolidation.

OPI: What about staff – there must have been overcapacity there too?

DL: There was. On the day of the acquisition, we had 600 people – 350 from COS and 250 from Lyreco.

We’ve rightsized that down to 500 already. The 100-staff adjustment has come from both sides – some from Lyreco and some from us. Our endeavour has been to keep the best of both and to reduce the pain of redundancies as much as possible. Sadly, it’s a reality of business.

BIG INTERVIEW Dominique Lyone

OPI: Will this number go down further?

DL: No, it won’t. We’re in the middle of integration now and all personnel-related decisions have been made and are completed. COS going forward will have 500 employees.

On the positive side, bringing all the Lyreco people on board has been fantastic for us. To employ such a large number of knowledgeable staff would have taken me years to do otherwise.

OPI: Is attracting talent difficult in Australia or indeed in the industry?

DL: Recruiting the best people is always difficult in any market or geography, but talent within this industry is particularly hard to get, almost impossible in fact, because of all the non-competes between the various operators. With the Lyreco deal, we got access to a very large team of people who really know the business. That’s a significant bonus.

OPI: What other synergies are there as a result of the Lyreco acquisition? You mentioned your target audience before which so far has been

government and big enterprises. That’s quite different from Lyreco’s, isn’t it?

DL: There are several pluses that come from the Lyreco acquisition. As you’ve just alluded to, one is that Lyreco did a better job than we did in Australia’s mid-market. We’ve now really immersed ourselves in that specific customer sector and are learning a lot about it in order to keep the momentum going.

We, for example, went to Lyreco’s headquarters in France on this trip to Europe to talk to the executive team and try and learn as much as possible.

Another thing we gained with Lyreco was international customers. This wasn’t initially our intent, but part of the deal with Lyreco is a strategic agreement whereby we’re partnering with them in Australia and service all their international accounts in the country.

My understanding is that about 30% of the total Lyreco business is international. I don’t know how big a part of that percentage Australia is, but it certainly gives us a point of difference.

July/August 2018

OPI: That means the 100 people you’ve just lost aren’t going to turn up at the doorstep of your competitors either...

DL: Some of them might eventually, once the non-competes have expired, but not imminently.

Lyreco did a better job than we did in Australia’s mid-market

17

OPI: You mention that you’re already right in the middle of integration and I think you’re trying to complete that by the end of August, to coincide with what Platinum Equity is doing with OfficeMax and Winc Australia. That’s quite ambitious considering the deal only happened at the beginning of May. DL: Yes, that’s the idea and I believe that this target is achievable. As you say, a big part of our fast pace on this is to make sure that we’re ready to compete when our main opposition has also gone through their integration period.

OfficeMax leads the education sector in Australia and that would have been a completely new sector for us to dominate in OPI: Let’s talk about that opposition. For a start, how do you think a merger with OfficeMax Australia would have played out had you been successful in your bid to acquire the company? Where would the synergies have been given that scenario?

DL: There are two aspects to the OfficeMax business in Australia. One part would have been quite similar to what we now have with Lyreco which is its government and enterprise business. The big difference – as opposed to Lyreco’s mid-market strength that I referred to – would have been a whole new business in education. OfficeMax leads the education sector in Australia and that would have been a completely new sector for us to dominate in.

I believe almost 50% of OfficeMax’s business in the country is in education – that’s huge. The rest is in government and large corporates.

OPI: Not the mid-market then…

DL: No, not the mid-market – that’s something we gained with Lyreco that we would never have gained with OfficeMax.

compared to our more traditional competitor, which has been a global operator with a branch in Australia that has been focused predominantly on growing the top line rather than profit. I see a shift that’s going to occur, away from a focus on growth, growth, growth, to a greater emphasis on returns.

The rivalry in the Australian marketplace between the previous four players – Staples, OfficeMax, Lyreco and COS – has significantly reduced our margins until almost everyone became unviable in their own right. What’s happening now is a complete restructure of the market.

OPI: Down from four to two – surely that means consolidation at the top end of the market is done?

DL: At the top end it is I agree, but I still foresee smaller dealers consolidating and buying each other out.

OPI: The ones organised in the buying groups?

DL: Yes, and there are a couple of things driving that, predominately succession issues and the fact that some people just want to get out of the business and do something else. There have been several instances of small dealers consolidating over the past 12 months.

OPI: What about COS – are you still looking for smaller acquisitions? You bought Office Organisation at the beginning of last year I believe.

DL: I’m always on the lookout for opportunities, particularly in segments outside of the core categories, such as jan/san or furniture. Office Organisation is a great example where we expanded our scope in furniture.

OPI: So you’re looking at it from a breadth of product point of view.

DL: Adjacent categories, yes. I think the core is pretty well done from a consolidation standpoint in Australia.

OPI: What about COS in New Zealand? From what I last heard you were still interested in buying Winc New Zealand off Platinum – which it has to get rid of under an agreement with competition authority, the New Zealand Commerce Commission. Is Platinum even talking to you given the situation you had in Australia where you opposed the ‘Max/Winc deal?

July/August 2018

OPI: The combined OfficeMax/Winc in Australia is your biggest competitor in the market I guess?

DL: Not only is it the number one competitor in the market, it’s also a new style of competitor because it’s owned by a private equity firm. We hope Platinum will focus on generating a swift return on its investment

BIG INTERVIEW Dominique Lyone

OPI: How much more are you now competing with Officeworks as a result of the get-together with Lyreco and its strong mid-market focus?

DL: Officeworks has always been a mighty competitor. It doesn’t compete with us that much in the top end of our business, but in the mid-market and in the SME segment there is significant competition.

Officeworks has a different model to us, of course, in that it’s bricks-and-mortar and also has a very strong online model. And it’s a very big organisation with revenues of A$2 billion. As such we’re probably better at the customer relationship. It’s certainly a big competitor, but we’re not as focused on Officeworks as we are on, say, Winc in Australia.

19

Dominique Lyone BIG INTERVIEW

DL: I can tell you that, when the future of the business supplies industry in New Zealand is discussed, there is a general consensus among all experienced OP leaders that Winc NZ is simply not viable as a standalone business. Without an experienced operator like COS with a trans-Tasman approach, buying power and systems in place, Winc NZ will fail and the country’s commercial OP market will quickly transition to a monopoly.

Of course, that’s very desirable to Platinum, but the regulator will have made a significant error of judgement for the second time with this deal. How it allowed the situation to get to this is unbelievable.

I welcome discussions with Platinum to buy Winc NZ and I remain hopeful that the firm will engage with us soon. Surely the regulator must have set a deadline.

OPI: Let’s go back to Australia where OfficeMax and Winc have permanently come together – or as permanently as private equity allows. Both companies needed to do something to revive their ailing fortunes. If I remember correctly and going back almost 20 years, Corporate Express Australia (CEA) in particular was a huge success in the country for a long time. What changed so drastically that revenues have fallen by about 30% since Staples took control of CEA in 2010?

DL: You’re right, CEA was a mighty competitor. I believe a big part of its success back then was that it had a local board, local management – an overall local outlook, despite the fact that it wasn’t really local and 50% owned by a Dutch company. The minute it became part of a much bigger entity – Staples – it kind of assumed branch status of a very far away parent company and started failing.

www.opi.net

OPI: But now you have to contend with both Winc and ‘Max as a daunting A$1 billion entity. What’s your trump card and the core differentiator at COS? DL: We’ve always been focused on the customer experience and we have strong family values in terms of service. It’s a completely different outlook.

A family-owned and operated business is more than likely going to deliver better customer service than a company that ultimately is just in it for the ROI.

20

We live and breathe what we do and we’ve got next-generation succession plans in place, so we’re making decisions now that will impact the business in ten or 20 years’ time. Private equity firms talk about their exit before they’ve even bought a company.

OPI: Talking of succession, your two daughters are here at the forum with you. What’s your plan?

DL: My daughters have been in the business now for over 12 years, so they certainly are fully immersed in the company. We haven’t called a day for the changeover, but there will come a time in the not-too-distant future when I’ll probably become the chairman or take a different role in the business.

We haven’t called a day for the changeover, but there will come a time in the not-too-distant future where I’ll probably become the Chairman or take a different role in the business OPI: You alluded to family succession in the past, but without specifics. What has changed?

DL: My age for a start! My daughters have always been in the picture, but COS has been my dream and it’s something that I created, and I have never wanted to push that down the throat of my daughters, so it’s been a case of “do they actually want to succeed me?”. The past couple of years have left me with in no doubt of their desire to continue and take the company to the next generation.

OPI: What will their roles be – will one take the top job, with the other in a supporting role?

DL: No. They have very complementary skills – Belinda is very much about marketing and strategic procurement whereas Amie is more involved in logistics and customer service. At this stage their thinking will be along the lines of co-managing directors or co-CEOs.

Dominique Lyone and his daughters Amie (left) and Belinda (right) at the OPI European Forum in London in June

OPI: Including you?

DL: Including us. We’d like to think we could, but there’s a scale that you reach where that really local customer service is just not possible anymore. We talked about the acquisition of Office Organisation earlier. That was a A$2 million business when we bought it. The level of service that the people there delivered was phenomenal and something that we’ve not been able to keep up with, it’s as simple as that.

We learned a lot about the independent dealer community when we bought that business actually.

And one thing was most definitely that the level of service some of the independents deliver could never be matched by any of the contract players or

by Officeworks.

OPI: Why did you buy that company – what was the draw?

DL: It was mainly a category purchase. Like I said earlier, Office Organisation was very big on furniture and COS wasn’t. So again, it’s an adjacent product thing. But what I said about service also refers to its office supplies business – it was outstanding and very hard to compete with. And now to maintain.

OPI: On a broader topic, what does the Australian landscape looks like now from an independent point of view – what are Belinda and Amie facing?

DL: Independent dealers are under pressure, no question. Smaller operators are being pushed from Officeworks on the one side and from companies like us – that want to get into the mid-market – on the other.

There’s a number of really good independents that deliver great service, have a plan and are working on as well as in the business. And I think they will continue to do well.

I still see significant room for the independent.

I’ve been in this industry for over 40 years and the conversation we’re having now about Amazon is almost the same conversation we had 25 years ago about the big boxes entering our space.

OPI: Most smaller operators are organised in the two main buying groups in Australia I believe.

Is there a case to be made for these two groups to merge and become stronger as a result? It’s always something that’s being talked about in the US – never more so than now with the current Essendant/Sycamore/SP Richards situation.

What’s your view?

DL: It’s always a point of discussion here too. Is there a need for two? No, in my opinion. Would they be stronger as one? Yes, from a cost and overheads point of view. But both dealer groups have very specific identities and are increasingly finding their points of difference. I can’t see a change on the horizon as regards a possible coming together.

COS FAST FACTS Founded: 1976 Ownder/CEO: Dominique Lyone Headquarters: Sydney, NSW, Australia Staff: 500 Sales: A$215 million (US$160 million) Business model: 100% B2B Distribution centres: 7

OPI: Finally, we talked about your expansion into new product categories, like jan/san and furniture.

What about services – contractual solutions as opposed to transactional business, like managed print services or breakroom maintenance and service contracts – where do you stand on that?

DL: We’re not involved in any of it. I hear a lot about it, but I haven’t really figured out what services are viable in our segment.

OPI: That’s one for Belinda and Amie to work out perhaps! Thanks for fitting in this chat Dominique, in among all the discussions at the forum – it’s much appreciated.

July/August 2018

OPI: Amazon! I don’t think we’ve had a Big Interview in the past couple of years where Amazon wasn’t on the agenda. It’s still new to Australia, of course. How big a deal is it for you?

DL: We haven’t seen Amazon in our space yet in Australia. We hear plenty about it from other countries, but for the moment I believe there are lower hanging fruit for Amazon in Australia with electronics and other categories. But I have no doubt that the company will duplicate what it’s done in other geographies and do very well in our sector as well. As such, there’s certainly a risk and we take that risk very seriously.

For now, we have reasonable protection from Amazon with our top end of the business in the contract channel. But the potential threat is clearly there. The contract channel has always been made up of a basket of goods that is aggressively priced and you even out your margin with the non-basket.

Amazon is likely to go for that non-basket. That could

BIG INTERVIEW Dominique Lyone

become problematic to the whole model of contract.

It’s interesting that this topic has also come up here at your forum, so it’s certainly up for discussion how we deal with this challenge.

Broadly speaking, it’s about being aware of what’s going on in the industry and changing accordingly.

As a general comment and to answer your question about independents, I firmly believe that small dealers bring a level of relationship to the market that the bigger guys just cannot compete with.

23

HOT TOPIC

Staples Inc CEO Sandy Douglas reveals his strategy to partner with independent dealers in the US – by Andy Braithwaite

W

hen private equity firm Sycamore Partners announced in May 2018 that it had made an offer for Essendant and intended to merge the wholesaler with Staples Inc, it raised questions about the motives behind this combination vis-à-vis the independent dealer channel (IDC). Was it a strategy based on growth potential or more of a disruptive move designed to divide and weaken the IDC? It appears the answer lies in the former. According to Staples Inc CEO Sandy Douglas, a pillar of the company’s strategic focus is profitable and accelerated growth that revolves around providing an improved customer experience. And a big part of this apparently involves working in partnership with independent dealers.

We are beginning to see significant opportunity in the marketplace to augment our go-to-market strategy with support for dealers He continues: “The industry, particularly on the smaller side of the dealer channel, has been stressed due to a number of factors such as a lack of products, a lack of scale and a lack of innovation. We have found that the dealers we have spoken to – admittedly a small group at this stage – all want those capabilities.

“While they think that, at first, partnering with us is inconsistent with their business ethos, the more we talk about it the more interested they get. We believe this has a lot of opportunity to build out once we can win everybody’s trust.”

While Douglas declined to refer specifically to the Essendant situation, he adds: “You can look at all of our actions and come up with the same conclusion: we are very interested in taking the steps that will allow us to talk with, partner with and ultimately profitably grow with a wide range of locally-focused dealers in this business.

“We have studied the marketplace and listened to our customers and different experts, and we honestly believe that the scale of Staples, multiplied with local

July/August 2018

DEALER PARTNERSHIPS “We are beginning to see significant opportunity in the marketplace to augment our go-to-market strategy with support for dealers,” reveals Douglas.

“We believe that the capabilities we are building at Staples – good procurement, low costs, great products, technology and services – can be used to significantly empower dealers towards a more innovative business model. Therefore, we are working on a strategy – you might call it ‘Powered by Staples’ – where we want to build partnerships with local dealers. We think that our scale, together with the intimate relationships and the local touch that dealers have, make for a combination that will enable us to be even more important to customers as we go forward.”

Quite what shape these ‘partnerships’ will take, it is too early to tell, but Douglas explains they could take “multiple forms”, possibly meaning things such as acquisitions, franchising, strategic partnerships, etc, with different models co-existing within a Staples-run dealer ecosystem that would sit side by side with Staples’ own national programme.

“What I would say is that dealers' capital structure is their decision,” adds Douglas. “If they then wanted to sell to us, that is something we would work out; if dealers wanted to be independent and successful and growing, that would also work. But having dealers’ energy, their innovation and their

relationships is the key part of the strategy – it is not purely an effort to try and acquire them.”

Douglas is well aware that after more than 30 years of fierce competition between Staples and the IDC, many dealers will be extremely wary of partnering with Staples.

“This general opportunity is something we are excited about, but we recognise that in the history of the competitive environment in this industry, some dealers early on might have a bit of low trust in Staples.

Therefore, our energies are now spent on having them understand what we are committed to doing and to give us a try. Obviously, over time, results speak for themselves and trust builds up – or doesn’t – based on your actions and the value you can create.”

25

I do believe that some independent dealers would be willing to partner with Staples so long as it was profitable

Sitting pretty? Staples Inc CEO Sandy Douglas

CONCERNS FOR THE IDC From a dealer viewpoint, however, Tucker says there is much to be concerned about. “Staples has shown little love for its own sales force as evidenced by continual reductions in numbers and adjustments to compensation plans. How do a dealer’s customer service, warehouse, drivers, etc, fit into the Staples-run dealer ecosystem? I don’t think they do.

What does ‘being more successful’ look like after six months, two years or five years?”

He continues: “Once Staples has your customer information it can use it to compete against you. It’s no different from selling on the Amazon platform. The IDC needs to be wary of any impending mergers that don’t have its best interests at heart, long term.”

Industry veteran and current VP of Sales at ChargeTech Mike Netter, meanwhile, believes Staples’ strategy could be “very good for the industry if approached correctly” and that it would “bring more

July/August 2018

SHOCK REACTION One of the first dealers to react to Douglas’ comments after OPI initially broke the story on opi.net was Justin Miller, CEO of Tennessee-based dealer Highbar Trading. Miller admits to being “shocked” that partnering with dealers formed part of Staples’ plan.

In a lengthy post on LinkedIn, Miller lays out what he sees as the pros and cons of Staples’ strategy. Two of the areas where he believes dealers might benefit from partnering with Staples are national accounts and cooperative contracts.

Gaining access to Staples’ national accounts delivery platform – in terms of technology and/ or delivery – would help some dealers, he argues.

“Dealers that are versed in corporate account needs and have invested in the proper technology tools to do so are having success today, but those that haven't would certainly benefit from those tools,” he notes.

It's a point echoed by another independent dealer that told OPI: “On the surface, a dealer partnering with Staples to provide local customer service to national accounts would appear to be a win-win situation. When I’ve talked with other dealers, they’ve expressed their concern regarding losing business due to the big boxes having a national accounts programme. While I don’t have any detailed facts to support my opinion, I do believe that some independent dealers would be willing to partner with Staples so long as it was profitable.”

Miller adds that Staples would be “crazy” not to open up access to cooperative contracts such as the National Joint Powers Alliance to dealers. “Typically, municipalities and governments want to work with local dealers, but they are too afraid to partner with them because no one ever gets fired or in trouble for using Staples,” he says.

“When a local dealer is chosen for a contract [...], these contracts typically end up back in the hands of a chain player, either [Office] Depot or Staples with their lead cooperative contract. It's not to say that there aren't markets where the IDC is winning and has continued to win city contracts, but the chain stores own most of that market share.”

On the flip side, according to Miller, two major drawbacks are dealer trust and what happens to dealer data. “I don't know whether to think that Staples has a distorted view of the IDC, but it's called ‘independent’ for a reason. There are some dealers out there that are ready to move on and sell, or maybe they are struggling a little bit from an identity or financial crisis [point of view] where they are ready to partner with Staples on a deeper level, [but] there will have to be different levels of wholesale partnership.”

Miller describes the dealer data issue as “a whopper”. He says: “Essendant has an enormous amount of end-user wrap-and-label data which is attached to its dealer customers. I can't even begin to touch on how valuable that information is. Dealers will

still be going after Staples' business and it's not like Staples is going to stop going after the IDC mid-market business either. How is this going to work?”

Mike Tucker, President/CEO of US trade association NOPA, sees the logic of the move from a Staples perspective, describing it as “the perfect strategy”.

“There is no downside, and independent dealers would certainly improve the [Staples] customer experience,” he told OPI. “Staples would have access to billions of dollars in profitable mid-market sales facilitated by local dealer relationships.”

HOT TOPIC Staples' Dealer Strategy

connections and the relationships the dealers have with their communities and the innovative approaches that we see from them, will make us a more competitive and successful business. And it will also help dealers be more successful because of the way we would lend our scale to them. All our actions flow from this central idea.”

27

Staples' Dealer Strategy HOT TOPIC www.opi.net 28

‘balance’ to the marketplace with less disruption than another dealer buying spree”.

“The reality is, this will make the industry stronger,” he argues, pointing to factors such as making SP Richards more powerful because “smarter, larger independents” have the ability and the capital to be able to switch wholesalers and “flock” to Essendant’s direct rival. He also believes that smaller dealers, especially in harder-to-reach, non-metro areas, will become part of a network where they can co-market with Staples.

“Staples, in effect, picks up cross-dock and deeply penetrated sales forces in areas it has trouble getting to for little capital expenditure – this is easier to manage and integrate [via owning Essendant],” he says.

However, a couple of resellers that would fall into the category of ‘smaller’ dealers were not enthusiastic about Staples’ strategy. Says one of them: “I feel once Staples' hooks get set into the local dealer, profitability will be the focus, killing the flexible, entrepreneurial spirit of the IDC and ultimately negatively affecting the customer.”

Another adds: “I find it hard to believe that a large corporation which is used to eliminating the competition would want to partner with [smaller dealers]. Is it because it is starting to realise that the independent dealer knows more about customer service then it does?”

QUANDARY FOR LARGER DEALERS What about the other end of the spectrum? One dealership that definitely falls into the larger category is Guernsey. CEO Dave Guernsey told OPI that there was not enough information yet available to make informed decisions, but he raises an important question. “Is the idea to use independents in a way that they would be restricted to the SMB space and leave regional and national accounts to Staples reps? If that's the case, in my view, this would not appeal to larger dealers. We actively seek out opportunities with accounts that spend over $150,000 annually and need specialised services that answer their overall requirements.

“Very small accounts today are fixated on Amazon... they don't need services. Medium-size accounts are viable targets and larger ones are very services-oriented. Guernsey would not accept being ruled out of pursuing larger accounts. If I understand the strategy correctly, I'm not a fan of Staples as my wholesaler partner.”

Jordan Kudler, President of New York-based dealer Crest Office Products and a board member of dealer group Independent Stationers (IS), is more forthright in his comments. “For most dealers within the IDC, Staples defies almost all of what the IDC stands for,” he states. “There is a completely different value proposition that the IDC promotes and delivers.

In my opinion, if I, as an independent dealer that has spent decades messaging how we differentiate ourselves from Staples, Depot and the big boxes in general, were to now align myself with any of them, it would signal to my customers that I was hypocritical as well as disingenuous.”

He continues: “Utilising Staples' technology and marketing, as well as sourcing through them, would most likely be a one-way path to full acquisition. All in all,

For most dealers within the IDC, Staples defies almost all of what the IDC stands for it appears to me that Staples has come to the realisation that it really doesn’t have the capacity to provide the high-touch service that end users truly value. After all, if it did, why would the IDC still exist?”

IS CEO Mike Gentile will no doubt have more to say on this topic in September’s OPI Big Interview. For the time being, he calls Staples’ strategy to partner with dealers “a soup sandwich”.

DISRUPTIVE – AND CLEVER – MOVE Commenting on the broader Sycamore/Staples move for Essendant, Ian Wist, Chairman of fellow dealer group TriMega, says that he wasn’t surprised by the development. “It is something that has been discussed and, although it is not something that we [the IDC] are looking forward to, we’ll make our plans accordingly if things go that way.”

Wist adds that, strategically, it would be a “very disruptive” move by Staples which could potentially “capsize” players in the mega-independent and independent channel. “It would be a clever move by Staples and perhaps a wise investment,” he says.

There is still a high degree of ‘if’ in this Staples strategy, of course. At the time of writing, Sycamore still hadn’t engaged with the Essendant board since 17 May and, to the best of our knowledge, had not signed a confidentiality agreement that would allow it to start due diligence on Essendant. Surely, if this strategy is to be taken at face value, then Sycamore should be moving post-haste to engage with Essendant and put in a formal bid?

As it stands, the Essendant board is still backing the proposed merger with SP Richards and this transaction is moving ahead as planned in terms of the US government’s antitrust process and pre-acquisition planning teams.

The ball is very much in Sycamore’s court at the moment. Why it is still hanging onto this ball remains something of a mystery for now.

FEATURE

Special Issue

TECHNOLOGY

SOLUTIONS

The Perfect

(digital) STORM…

Special Issue

TECHNOLOGY

SOLUTIONS

Special Issue

VENDOR SPECIAL

Special Issue

VENDOR and how TO AVOID IT SPECIAL Special Issue

VENDOR What are the main technology issues confronting dealers today?

SPECIAL And are independents meeting the challenges, even rising to the occasion? David Holes speaks to those in the know…

A

ccording to some of the prominent software providers to the OP industry, many dealers aren’t heeding their warnings about the digital commerce challenges that lie ahead.

Mobile, use of data and Amazon are just some of the issues, with some independents dragging their heels and refusing to invest in the necessary technology that will help them compete. Those dealers that fail to face up to the harsh e-commerce realities are, they say, endangering the future of their businesses.

CRAIG GREITZER

www.opi.net

The core issues haven’t changed over the past few years – Amazon is more prevalent than ever and resellers need to make sure they can compete by providing the best possible e-commerce customer experience. Sadly, many are using websites that operate using old technology and have a dated appearance which will put off many consumers, especially the millennial generation. The same holds true for their mobile e-commerce sites.

Unfortunately, most dealers today aren’t best placed to compete in the digital commerce age – many have fallen behind and are either being acquired or going out of business. This sounds harsh, but you only have to look at the dwindling number of independent dealers to know there is some truth here. Because the industry is hurting, operators are reluctant to invest in technology at

30

exactly the time when they should be doing so.

Amazon represents an existential threat to independent dealers and technology is the only way to level the playing field, using it to ramp up efficiency across their entire operation – in the warehouse, customer service, purchasing and accounting. There’s little they can do about competitive pricing pressures from Amazon, but dealers can improve profitability by being more efficient and doing more with fewer internal resources.

We repeatedly see companies using full-time employees to handle processes that should be automated. BMI can help with the technology and

Most dealers today aren’t best placed to compete in the digital commerce age – many have fallen behind and are either being acquired or going out of business

VP Sales, Business Management International (BMI)

Technology Providers FEATURE

functionality that will do this, eliminating manual workarounds, stopping duplication of data entry and providing timely reporting so they know the current financial status of their operations. Crucially, we can also provide resellers with a modern-looking, highly functional e-commerce site.

Security breaches are another obvious and very serious threat to any business. BMI Software can be deployed on Microsoft Azure which provides a high level of data security.

Moving away from the basic requirements, mobile e-commerce adoption is still too slow among our existing resellers. A few are using our mobile solution, but most haven’t implemented it yet citing a lack of demand from their customers. Yet an increasing number of consumers only want to shop using their mobile devices. It’s an undeniable trend and we are ready to help our resellers

when they realise this. We also see weakness in their approach to social media, with most of them needing to up their game in this area.

Across the industry, data isn’t being mined and used as well as it could be. There are some good solutions available from third-party providers and independents need to think more about ways in which they would like to ‘slice and dice’ their data in support of a business strategy. Only then can they mine their data in an effective way.

We have been working on our cloud implementation methodology for SMBs. We recognise the need to bring down the cost of providing services for resellers that don’t require specific customisations and don’t need to implement our full suite of functionality. The end goal is to give smaller-sized dealers big-dealer technology power.

JENNIFER SCHULMAN

www.opi.net

One of the issues that I see hampering progress for independent dealers is mobile. Many e-commerce systems are still trying to adapt to become truly responsive platforms. This is crucial from an SEO perspective as Google has moved to its mobile-first index. We’ve seen what this change can mean for a site that is not properly optimised for mobile – essentially it becomes almost impossible for it to appear in search listings.

The second issue is the use of big data and personalisation. I think that dealers and tech providers need to be looking at the data they have collected on buying habits, patterns, spend, etc, and using this to completely personalise a shopping experience. The OP industry is way behind the curve here and buyers expect this type of experience nowadays.

The percentage of dealers that are now setting themselves up properly to compete in the digital commerce age is increasing every month. However, there are still those lagging behind and they are truly missing out. Firstly, as I mentioned, you need a stable, solid platform that takes mobile friendliness, big data and personalisation seriously. Secondly, you

32

The threat from Amazon is huge.

We can’t help dealers compete unless they are willing to adopt the relevant technology and create a strong digital presence

need to get people looking at it, browsing, shopping and coming to your site to learn something new.

That’s where a strong digital strategy comes into play, incorporating SEO, social media and basic email marketing as a minimum. With the industry consolidating and major shifts taking place, you have big players stepping up that already understand this approach and have been working on it for some time.

On that consolidation note, what’s happening in the wholesale space with Essendant, SP Richards and, of course, Sycamore Partners, is interesting.

There are a lot of factors that need to shake out here before we can see what possible outcomes or ramifications there will be. But what I believe is going to lead the way is technology, through things like Essendant’s digital service programme and the use of big data. Like I said before, we need to use that information more so that dealers can offer a better experience when their customers are shopping online. Both wholesalers can help with this, especially the more technology-minded Essendant.

If we, as a marketing agency, and dealers in general can harness and leverage the technology the wholesalers can bring to the table, it could all work out well for dealers and ultimately position them to compete much more effectively.

I hope we will see a bit more product diversification too. While product innovation has been on the rise in the OP industry, there are items the wholesalers can add that would make the overall catalogue much more marketable.

Finally, of course, the threat from Amazon is huge.

We can’t help dealers compete unless they are willing to adopt the relevant technology and create a strong digital presence. Couple that with smart, competitive pricing, ease of ordering, excellent customer service and the ability to handle the needs of the local community, and then we have a plan we can work with and one that can be successful.

President, Fortune Web Marketing

Technology Providers FEATURE

DONNA SNYDER The main challenge for dealers is identifying and then meeting their customers’ changing preferences for how they shop and order online. Knowing your customers and focusing on their needs and habits is still the key to success. The one-size-fits-all approach does not work, with more and more people demanding a personalised experience online.

The main challenge for dealers is identifying and then meeting their customers’ changing preferences for how they shop and order online Typical buyers today are no longer merely sitting in an office working on a desktop PC, open to a phone call or visit – they are more mobile and need information quickly wherever they are at that time. Consequently, dealers must be able to sell to customers 24/7 using multiple types of devices, with the flexibility to move from one device to another at a moment’s notice.

In addition, marketing must appeal to different types of buyer through the use of smart and competitive pricing.

It’s more important than ever that dealers know and understand the technology available to them and many are now thriving in the B2B arena. They’ve done this by adding new tools and using the systems of software providers to grow their business. By broadening their sales reach, adding new marketing tools like coupons and loyalty points, and using pricing tools smartly, they are finding new opportunities.

One of GOPD’s key focus areas revolves around helping dealers to sell more through multiple shopping carts and to add new products in order to attract new buyers. With our system, dealers can have multiple ‘guest user’ shopping carts with different marketing strategies that will allow them to go out to multiple markets and support different customer needs.

In this way, independents can become a source for more than just basic office products, considerably expanding their reach while minimising the impact on their business.

The key is always to try new things and keep everything appropriately fresh. Mobile is obviously huge, so having a mobile offering that’s compatible with the other tools the dealer offers is vital.

Often buyers start their product research on a mobile device and then move over to a tablet or PC. They must all work seamlessly together and provide buyers with the tools and information they need.

President & Co-owner, GOPD

ALEX NICOLAIDES

www.opi.net

To be quite blunt about it, many resellers are failing to deliver the internet presence and enriched content that consumers are accustomed to.

Mobile-ready, customisable, rich product content with fast, flexible searching and 100%-secure pages are must-haves today.

Starting with mobile, dealers are way behind the times with regards to their capabilities. A single site, single experience on any device is the only way to go and with Google now ranking sites based on their mobile-readiness, no other approach will tick all the boxes.

Next, there are products on the market that can analyse consumer data in almost real time, render dynamic content and trigger actions such as emails, based on the customer’s past behaviour or other algorithmic data. Dealers aren’t taking nearly

34

enough advantage of the predictive behavioural data available to them.

Most independents do actually realise these issues and know the options that they have, but they are dragging their feet and complain. Change isn’t fun, it hurts, but it’s absolutely necessary in order to survive. Failure to change will be devastating.

The challenges are exacerbated by the failure of some software providers to provide options which would allow independent dealers to keep pace with these fast-changing requirements. The depth and breadth of business-ending security flaws within many industry software solutions is particularly concerning

Mobile-ready, customisable, rich product content with fast, flexible searching and 100%-secure pages are must-haves today

President, Logicblock

Technology Providers FEATURE

– the continued failure to address these issues will lead to more data breaches, more fines and more business closures.

However, there is hope as more and more progressive independents are moving away from outdated solutions and seeking a technology partner that understands what they need and how to take them to the next level.

EXTERNAL THREATS There are several external threats too. Amazon and other large retailers certainly represent one. That’s why we offer a competitive pricing rules engine to help dealers compete. Both Amazon and Amazon Business sell many common office supply items, but at premium prices. We offer independents the ability to highlight this inflated pricing to their prospective customers, thus empowering them to make more informed decisions.

The other major issue facing dealers is that Amazon is highly recognisable, whereas many

independents are completely invisible on the internet. This is mostly due to unfriendly URLs that are not indexed by Google. We often hear dealers claim they are ‘B2B only’ and that they don’t want to attract random internet shoppers. What they don’t seem to realise is just how many local businesses perform a search for ‘office supplies’ on their phone and then only see Amazon and other big players appear in the listings.

This combination of invisibility, mobile and search engine incompatibility is the perfect storm, but one a provider like Logicblock can fix.

As I’ve already alluded to, the threat of a data breach is huge. In most migrations we’ve done from other systems we’ve uncovered an alarming amount of sensitive data unencrypted and poorly hidden.

Dealers have two choices – compliance with best security practices or culpability for neglect. They have to be able to rely on their software providers to do this for them. At the end of the day, security breaches will, at best, badly affect their reputation.

CHARLES RUSSELL, CO-OWNER, SSI In general, dealers do not focus on e-commerce as much as they need to. They have to be well-versed in digital marketing and SEO, looking at factors such as abandoned carts, and ranking and marketing the products that they prefer to sell. The problem is that, at most dealerships, no one owns these tasks and that’s where a provider such as SSI can help.

The importance of mobile is still not getting through to some dealers. What many don’t understand is that even if customers are still placing orders from their desktops, a lot of them are trying to research those orders on their phones first. And if dealers’ current sites are not suited to this, they are getting a poor experience. Our e-commerce products mean end users can place orders from any device, without the

Regardless of who ultimately acquires Essendant, all dealers need to be looking at how they buy product – not just what items they stock, but how they distribute them. If the merger with SP Richards does go ahead, dealers will be left with one national wholesaler. As a result, they will find themselves having to stock more products and changing their distribution processes.

No one really knows Sycamore Partners’ plans at this point. If the private equity firm, which already owns Staples, buys Essendant, will it fold the two together? Or will it try to operate the two separately?

How many independent dealers are going to want to buy from the wholesaler and, when it comes to things like wrap-and-label, share their customer

www.opi.net

Dealers that tie their software too closely to a single wholesaler’s model may be at a disadvantage

36

need to download an app, something customers may not be willing to do, especially if they are just browsing a dealer’s offerings.

Amazon, of course, has the marketing resources and technology that gives it an advantage over independent dealers. But its pricing is often high compared to most dealers due to shipping costs.

Independents should be showing Amazon’s prices on their websites and highlighting that they will beat those prices. They also need to focus on marketing those items that make them the most margin and ensuring these items attain high rankings in customer searches.

This last point has been one of our key areas of focus over the past year. Our web store is now fully customisable, so that dealers can control the look and feel of their sites. In addition, we’ve made it easier for them to push the items that are most profitable for them through search ranking and merchandising tools.

information with an operator that’s tied to Staples (see also Hot Topic, page 25)?

The bottom line is that dealers have to focus more on technology and create more efficient purchasing, inventory management and distribution today, so they can be ready for tomorrow.

FLEXIBILITY IS KEY From a technology perspective, the more flexible the software, the better positioned independents are.

Dealers that tie their software too closely to a single wholesaler’s model may be at a disadvantage.

But, that aside, every dealer has some important questions to answer. Will they be able to do business with the new entity – whatever it may look like? Will pricing changes make them less competitive?

For now certainly, there are more questions than answers. Being prepared for all eventualities is key.

While the perfect storm might be brewing for many independent dealers, there are also plenty that have not been sitting idly waiting for it to pass, but instead tackle the issues they’re facing. See our case studies on page 40 for more information.

Technology Providers FEATURE

Software OPTIONS Technology solutions and software programs vary from provider to provider. Here’s a small selection of what’s on offer GOPD GOPD’s OP-24/7 Shopping Cart system was designed specifically for office products dealers. The company has been working closely with dealers and wholesalers since 2005 to develop a user-friendly cart, designed to provide shoppers with the tools they need to research, browse and buy products quickly and easily. The system also helps dealers automate their business with extensive back-office functions tailored to fit their specific requirements.

GOPD continuously adds new functionality to the system, and flexibility in the program means dealers can pick and choose what works best for their business. Recent features include the ability to fully customise the shopping cart, EPIC interface for national accounts, customer PunchOut capability and a mobile-friendly cart version. In addition, the system offers an interface to accounting systems such as QuickBooks or NetSuite.

Find out more: www.gopd.com

BMI SOFTWARE BMI Software is designed for progressive independent dealers seeking to provide their customers with a superior online shopping experience. It offers a modern back-office business management system aimed at increasing productivity and efficiency in customer service, purchasing, warehouse management, accounting and financial reporting.

The package was first launched in 2006 and underwent a significant update to both the e-commerce site and back-office software in 2016. Features include a Microsoft-based user interface, extensive access to system data, and integration with other Microsoft products such as Outlook and Excel.

Users are able to create e-commerce marketing pages and links, without code. All marketing page data is controlled through the back-office software. The system’s fully-integrated accounting functionality means that no third-party software, such as Quickbooks, is required. Real-time financial statements are available on demand.

Find out more: www.bmiusa.com

Special Issue

TECHNOLOGY

SOLUTIONS

SSI SSI has two software packages aimed at the North American office products industry – SSIop and SSIweb. Both programs have been on the market for about eight years, but have been continuously updated to provide the features required to keep dealers competitive.

SSIop is a dealer business system – a complete solution for managing the back office efficiently. This graphical software package provides OP dealers with an efficient business flow and runs on a modern, open-source platform. It interfaces with marketing and business analysis tools such as Remarkety, ZOHO reports, Zapier, Sugar CRM and BPM Online.

SSIweb is a B2B web store that dealers can use independently or alongside the business system. It is SEO-optimised and has the features to help dealers compete with the big e-commerce sites, together with the tools to help them sell the products that make them the most profit. It also has a responsive design so it’s compatible with mobile devices.

Find out more: www.ssiop.com

Special Issue

VENDOR SPECIAL

LOGICBLOCK The Logicblock eCommerce platform was first launched in 2007, but has undergone significant updates since then. The software aims to remove the restrictions that prevent online dealers from growing in a rapidly-changing technological landscape. It provides a full website and e-commerce cloud-based solution that integrates with the largest wholesale distributors over a range of different sectors, including the OP, industrial, educational and safety categories.

Logicblock’s user interface incorporates an SEO-friendly, mobile-ready storefront that is considered to be a B2X (ie B2B and B2C) solution since it can be tailored to work with any type of online shopper.

The back-end solution transmits orders electronically using two-way communication paths for processing orders, shipping and product inventory, and has the flexibility to integrate with other software solutions.

Find out more: www.logicblock.com

www.opi.net

FORTUNE WEB MARKETING

38

Fortune Web Marketing is an online marketing services agency that works closely with many software providers in the office products industry. Founded in 2008, its areas of expertise include search engine marketing, web design, social media, email marketing, content marketing and strategic consulting.

The company’s strategies constantly adapt to the changing OP industry landscape and the ever-evolving world of online marketing.

They are driven by the latest trends in SEO and social media, together with the continuing technological shifts by giants such as Google and Facebook.

Fortune Web Marketing’s core aim is to drive brand awareness, leads and online sales, but it also covers everything from print to web design and branding. The company primarily caters for small to medium-sized businesses, in the traditional OP as well as the office furniture and jan/san sectors.

Find out more: www.fortunewebmarketing.com

SPOTLIGHT Special Issue

TECHNOLOGY

SOLUTIONS

Special Issue

TECHNOLOGY

SOLUTIONS

Special Issue All independent dealers know by now that they need to embrace

VENDOR technology in order to stay in the game, but the options available can be bewildering. David Holes caught up with three OP dealers SPECIAL

to find out what software platforms they’re using, why they chose them andIssue what they’re bringing to their businesses Special

www.opi.net

CASE STUDY 1: CLARK OFFICE PRODUCTS VENDOR SPECIAL

40

Clark Office Products was founded in 1972 in Mountain Home, Arkansas, with a branch in Harrison opening in 1988. The company currently services a region covering ten counties in the north of the state, running right up to the Missouri border. It offers a full range of OP supplies, as well as furniture, facilities and breakroom products; it’s also a Canon-authorised dealer. The current owners, Rick and Lorna Dixon, bought the business ten years ago.

Rick gives his thoughts on their decision to adopt SSI’s software package.

“SSI came to our attention when we were on the lookout for a new software provider. After lengthy conversations and demonstrations, we found its suite to be the best fit for our company. We believed the point of sale, purchasing, accounts receivable and web store had the power and flexibility that we were looking for at a price we could afford. Changing software is no easy task, but with the training and support we were given we have never looked back.

“In current times where most dealers are seeing sales declines, we have seen growth across all aspects of our business. We attribute much of that to SSI and the recommendations made by them to help us compete with the big-box stores. We also use ‘jobtrack’ for the machine side of our business and like how it and the web store flow seamlessly into the SSI package.

“Support is always there for us by email or phone when needed. However, we’ve found that after

the initial learning curve we’ve become more confident and knowledgeable and don’t need as much hand-holding. The system is so powerful – I know we do not use all of the features provided, but I’m continually learning and it makes our jobs easier.

“As a result of all this, our e-commerce platform is doing well and the numbers are growing. We know that without it our business would not be where it is. To be considered a legitimate player in today’s world, you must have a good e-commerce presence. We are in the early stages of developing our m-commerce platform and realise that this will play an important part in our continued growth.

“Social media is another important aspect of our business today – we use Facebook to make

Rick & Lorna Dixon, Owners, Clark Office Products

Our e-commerce platform is doing well and the numbers are growing. We know that without it our business would not be where it is

grow our business. We are what you would call ‘old school’ when it comes to customer service.

“In fact, one of the main reasons we went with SSI in 2015 for our software was because the team there gave me this feeling of personal service. I know I can speak to Terry, Charles or John – the owners – if I need to. They are in a business where the latest technology is a top priority, but they still have an outstanding customer service ethic.”

SPOTLIGHT Dealer Case Studies

customers aware of news and the latest promotions and products – and this is proving a considerable success. Additionally, the last three employees we’ve recruited were hired using Facebook to place the job adverts.

“Having said all that, after 40 years in this business I still find myself wanting a personal relationship with all the customers we deal with, and I think this is actually one of the most important reasons that we continue to

CASE STUDY 2: PERIMETER OFFICE PRODUCTS Perimeter Office Products operates out of Lawrenceville, a suburb of Atlanta in the US state of Georgia. The company has 30 employees, reported sales of over $15 million in 2017 and is on track to raise this to $16.5 million this year. 70% of its trade is SMBs, with the remaining 30% coming from its larger customer accounts.

Perimeter prides itself on its commitment to exceptional customer service. OPI speaks to President Mike Evert about Perimeter’s decision to go with ECI’s software package and the effect this has had on the business.

OPI: Why did you choose ECI’s software solution and why is it particularly suited to your business?

Mike Evert: We took a serious look at three other packages. The first didn’t offer the full suite of capabilities we needed while the other two were comprehensive, but very expensive. The ECI offering includes ECinteractivePlus, Website Customisation Services (WCS) and Acsellerate – a very robust software package at an affordable cost.

This suite of solutions has integrated extremely well into our business and has helped us grow by taking on more complex customers and allowing us to become far more automated in our processes.

can create customer-facing reports that suggest item substitutions that will both save the customer money and enhance our profitability.

OPI: Can you point to any tangible results that you’ve seen?

ME: We have taken on some customers that we wouldn’t have been able to add without this software suite. Our growth figures speak for themselves – revenues are up by over $4.5 million since we converted to this software in 2015. That’s not all down to this package, of course, but having the right technology helps and it has allowed us to grow without any limitations.

Mike Evert, President, Perimeter Office Products

OPI: How much support do you get from ECI? ME: We had multiple training sessions leading up to the conversion time, both on-site and via webinars, and we have complete access to ECI’s customer support team. Their people are extremely knowledgeable and helpful.

Furthermore, for a reasonable cost, ECI also handles our item file updates and year-end procedure for us.

I use the analytics features to come up with at least one actionable lead for my sales force each day OPI: How is the e-commerce platform performing for Perimeter? What features would you highlight in particular?

ME: The platform is performing very well for us. I’m a bit of a novice, but I use the analytics features to come up with at least one actionable lead for my sales force each day, mainly looking at items abandoned in cart.

There is, however, a lot more I could be using the analytics for and I intend to use this aspect of the suite increasingly in the future. For example, I haven’t tied the analytics into our email marketing strategy yet and need to spend more time implementing this.

The adoption of technology by independent dealers is extremely important. Technology doesn’t create growth by itself, but the correct mix can help accelerate it, and I will continue to invest in it to ensure our business is able to expand unencumbered.

July/August 2018

OPI: Where specifically are the benefits?

ME: Purchasing is one of them – we have multiple accounts with our first call wholesaler Essendant, and the package has allowed us to fully automate the auto-short buy process.

Our website, with ECI’s WCS team’s help, has become very competitive from a content point of view. Additionally, ECinteractive now allows us to remain competitive with the big boxes by, for example, letting our customers have multiple levels of approvers. It’s also mobile friendly which is a huge plus and our mobile offering is becoming increasingly popular.

The Acsellerate software is useful in term of giving our sales representatives the information they need to gauge opportunities for category penetration within their accounts. It also helps to identify accounts that have fallen off and need to be revived. In addition, we use Acsellerate’s ‘Profitability Report’ module, which

41

Dealer Case Studies SPOTLIGHT www.opi.net 42

CASE STUDY 3: OFFICE SOLUTIONS As one of the largest independent OP dealers in the US, Office Solutions says it offers the benefits of national purchasing power coupled with a customer-centric philosophy and local, personalised service. The company was founded in 1984 and is headquartered in Yorba Linda, California. It supplies a comprehensive range of office and business products, including furniture, facilities and breakroom supplies as well as printing and other technology equipment.

According to President Bob Mairena, his management team periodically evaluates its technology with the view to delivering the best experience for customers. It is always looking for ways to make it easier for customers to select, buy and receive what they need, where and when they need it.

“The decision to look for a new software solution several years back was driven by growth,” he explains. “We had outgrown our previous system and found that we were not offering the cutting-edge technology that customers needed. The lifeblood of successful distribution, e-commerce needed to be fully integrated with robust back-end functionality if we were going to compete with the big-box distributors.”

In keeping with the culture of the company, analytics played a big part in searching for a new solution. The Office Solutions team investigated how the various software packages would handle real-life issues for distributors, including how they would transmit orders, deal with back orders, and what the end-to-end e-commerce experience was like. This disciplined approach meant that the team could narrow down which solution would work best for the company.

“I led a whole evaluation process for 50-60 dealers that were part of a user group to look at what options were out there,” says Mairena. “Having gone through that process, all the dog-and-pony shows, all the meetings – and there were many – I felt that BMI was by far the best option for us.

“The rest of the team was equally diligent about ‘kicking the tyres’, talking to other users, as well as interviewing Microsoft about its commitment to the platform. After that, they too were confident with BMI as their choice.”

The staff at Office Solutions worked hard to ensure the conversion process did not interrupt business. In fact, implementation happened over a single weekend and there were no real issues. As Mairena states: “It was incredibly smooth. We had heard about nightmare scenarios (with other implementations) where orders got lost, people had to shut down and manually enter orders, and I was committed that we were not going to be one of those victims.”

Following successful installation, the new software suite meant that the business ran more efficiently, and instead of management having to spend time dealing with technology problems, it now has more freedom to think about innovative go-to-market ideas.

Mairena concludes: “I’m not having to do those dumb workarounds anymore. The integrated BMI system ensures that the information is accurate, with fewer errors. The biggest benefit is the fact that I don’t think about it – it just runs, day in and day out.

Bob Mairena, President, Office Solutions

The integrated BMI system ensures that the information is accurate, with fewer errors. The biggest benefit is the fact that I don’t think about it – it just runs, day in and day out “We as a company are larger and more complicated now from when we first installed the software, but BMI continues to evolve and work effectively for – and with – us. The team there has been very supportive, responsive and accessible to me. I have never had any service issues, and because of our relationship we get attention and we get responses.”

OPINION

Failure TO APPEAR T

www.opi.net 44

CLOSED DOOR ATTITUDE Many independents that do get found on the internet immediately throw up ‘stay away’ signs to internet-savvy enquiries. ‘Click here to shop’ is the internet equivalent of that room in the back of the store with the curtains and the ‘Adults Only’ sign. I’m not going in there. No telling what nasty virus you’ll catch. This is painfully obvious to anyone who is security conscious. Your link takes me to a different site that might not be secure, or worse, has someone else’s name on the SSL security certificate, and wants me to enter my credit card. That’s just not happening.

These shared sites – sites that all have the same base URL such as shop.xxx.com – and the ‘click here to shop’ sites have another major issue: they are not search engine friendly. None of the content on these shopping sites is searchable. In fact, most of them must intentionally block search engines in the robots.txt file. If you are on a shared or click here shopping site, then check your own robots.txt file for statements like “Disallow: /”. What this means is: “Search engines – stay away – I want to hide!”

When potential buyers do get to your site, find the item they are looking for, and then do not see any pricing, don’t expect to get their business. If a petrol station displayed outside “Come inside for gas prices”, would you stop and go in? And even if you did, would you be willing to give them all your personal information and fill out a credit application, just to find out the price?

Not likely. Yet this absurdity is exactly the same on many ‘login for price’ and ‘no price’ independent websites.

I’ve heard all the excuses for why you can’t show the price on your site and they are all as bad as “the dog

TECHN

Special Issue

SOLU

TECHNOLOGY

SOLUTIONS

Specia

Rick Marlette stresses the importance of independent dealers getting a grip on website technology and pricing he biggest issue facing most independents today is failure to appear in internet searches.

I know, I know, many will say they are B2B only and don’t want random internet shoppers. However, these independents will never know how many local businesses searched for goods and services in their hometown only to find the competition.

The argument from many dealers continues to be that “we’re a relationship company and we build lifelong relationships with our customers”. That’s great, until Doris and Otis retire and Jaden and Maddox take over the purchasing. You won’t be getting a phone call or face-to-face meeting from a generation that grew up with the internet. That generation, like it or not, is getting close to pretty much everybody.

Specia

ate my homework”. The glaring contradiction here is that all the national players do show the price on their sites without requiring a login.

The most common excuse is “I’m afraid my biggest customer will visit my site and see a lower price than I am charging them”. If that’s the problem, your pricing is out of control. Chances are you started your current pricing strategy before the capability to show internet prices existed. This is really easy to fix from a technical standpoint, but seems practically impossible for some operators because for that to happen they need to change their way of doing things.

Rick Marlette, Co-owner, OPSoftware

Special Issue

VENDOR SPECIAL

I’ve heard all the excuses for why you can’t show the price on your site and they are all as bad as ‘the dog ate my homework’ The second most common excuse for not showing prices on a website – and I hear this from a lot of the traditional jan/san resellers – is “it’s impossible because all of my customers get a different price”. This is just a variation of the first one, except instead of out of control pricing it’s just total chaos. Again, this is easy to fix, but the resistance to change is debilitating.

When confronted with clear evidence that the competition is running circles around them when it comes to pricing strategies, many independents retreat to their safe space: “Well, it’s more than price because we’re the experts when it comes to what polish to use on that gym floor.” Meanwhile, Amazon is ravaging your top line paper and commodity business, solely on price, while dealers are left on their hands and knees polishing that gym floor.

It doesn’t have to be this way, but independents have to change. Start with a modern internet presence and then switch to market-based pricing across the board. You really don’t have a choice.

Rick Marlette is the designer and creator of OPSoftware. He has worked independently for many years in various facets of the office products industry developing specialised programs and databases for independent OP dealers.

VEN SPE

Speci

VEN SPE

FEATURE

I

WHERE IS EPICONTENT TODAY? The project has been slow in gaining traction and there are still some issues that our aggregator is having with regards to getting content structured correctly to syndicate with Essendant. We hope to have these issues resolved soon.

EPIContent is currently available for six manufacturers (Smead, Eurotech, HSM, PM Company, HON and Fellowes) with SPR. We hope to have two manufacturers – HON and HSM – available as of 1 July with Essendant. A further 20 manufacturers are engaged at various stages in aggregating their content for syndication.

www.opi.net

With the significant changes in our industry and the challenges we’ve had with our syndication processes, we’re exploring options on how EPIContent should look in the future

46

It is important to note that with the significant changes in our industry and the challenges we’ve had with our syndication processes, we’re exploring options on how EPIContent should look in the future.

One example would be to expand and include all SKUs from our supplier partners, wholesale-supported or not. This approach, while still in the discussion phase, would enable independents to support all manufacturers while focusing on the key SKUs customers are asking for. It would also allow us to quickly expand into new SKUs and adjacent categories as customers’ needs increase and diversify, ultimately putting weight behind our positioning as a local source for all products a modern office utilises.

S

TECHNOLOGY

SOLUTIONS

TJ Crayne provides an update on digital content initiative EPIContent – and where to go from here for dealers n June 2016, US dealer groups TriMega and Independent Stationers (IS), along with industry associations IOPFDA/NOPA, joined forces for the EPIContent initiative, to provide a database of non-wholesaler supported products that dealers can use within their own e-commerce platforms.

During the past two years, the consortium has reached agreement with wholesalers Essendant and SP Richards (SPR) to provide the ‘unique’ content through their respective SmartSearch and Etilize content syndication process.

TE

Special Issue

forward MOVING

S

S TJ Crayne, President, PTC Associates

USING EPICONTENT If your company is interested in access to this content, what’s next? This depends on who your first call wholesaler is (we still have a choice at the moment), as well as your software provider.

In most cases, you need to call your software provider (3PV) and request that the catalogue be made available to you. Once it is ready for use, the content will be accessible to your system. When that is complete, getting the system to recognise it may require some extra steps.

For ECI’s ECinteractive users, the SKUs that you want to show up on the system must be added to the various Catalog Combination Indexes (CCI) assortments and catalogues that will be accessible to your target customers. EPIContent will ensure the SKU list is available to make the CCI process as easy as possible.

For most systems, if you do not have pricing information for a SKU, the content will not display. The exception to this is ECinteractive where the content will display but will not show pricing, with a message to call you to order the item.

When you’re ready to start engaging with EPIContent, make sure you have addressed the operational side of the price update process for these items. Access pricing information from your buying group or the manufacturer – my suggestion is to work with your buying group to get proper aggregate and normalised pricing information.

Once you have access to the EPIContent catalogue, the next task is to load the pricing for the items and manufacturers that you want to sell – be sure to have the items priced correctly so that you’re competitive.

Rick Marlette at OPSoftware (see also Opinion, page 44) has agreed to make his pricing matrix available to buying group members at no charge for one month, so your company can leverage this capability to explore how competitive pricing can be used to your advantage to create street-smart pricing.

Generally-speaking, follow your 3PV’s recommended steps to make the items available to your e-commerce system. And finally, do some spot checking to verify the items are showing up the way you’d expect them to.

Special Issue

VENDOR SPECIAL

TJ Crayne is President of PTC Associates, a consulting practice that helps companies create and execute strategic initiatives with an emphasis on leveraging technology.

V S

S

ADVERTORIAL

Special Issue

TECHNOLOGY

SOLUTIONS

Content. Commerce. Connected.

Special Issue

Who is ES Tech Group?

VENDOR SPECIAL

The best online customer experience requires a world class web store that features the richest product content. Presenting one without the other only provides half the solution, says ES Tech Group

E

S Tech Group is the parent company of EvolutionX and FusionPlus. Its mission?

To deliver powerfully differentiated B2B e-commerce capabilities for manufacturers, wholesalers and dealers/distributors.

The company’s new web store, EvolutionX, launched one year ago. OPI’s Heike Dieckmann speaks to Dave Bent, President of the company’s US operations, about the progress that’s been made and why there’s so much potential for dealers/distributors that adopt the software program in the UK, the US and – ultimately – beyond.

www.opi.net

OPI: Let’s start by learning a little more about ES Tech Group.

Dave Bent: Sure. ES Tech Group umbrellas both our commerce and content capabilities. EvolutionX, our new, leading-edge B2B commerce solution, is currently being rolled out to over 350 existing customers in the office, jan/san and industrial supplies distribution sectors throughout the US, UK and Ireland.

FusionPlus Data normalises and enriches wholesaler and manufacturer product content and syndicates to distributors and software vendors.

For example, over 1,000 OP dealers in the UK and Ireland use FusionPlus content within various ERP and e-commerce solutions – including EvolutionX – and we are already experiencing rapid growth since our launch in the US late last year.

48

OPI: How did you get involved in ES Tech Group?

DB: I spent ten years as the CIO of Essendant, then moved to Phoenix, Arizona, to work for Avnet, a $17 billion global electronic components distributor. My

background includes nearly 15 years in distribution which gave me great insight as to what dealers need to remain competitive from a technological standpoint. For example, I was very involved in the work we did at Essendant for online product content, search and e-commerce. I met Paddy [Donnelly – one of the original co-founders and CEO of the company] when we worked together while I was at Essendant.

OPI: And you joined the group about a year ago?

DB: Yes. Paddy and I reconnected at SP Richards’ ABC event in Orlando, Florida, last July. I was introduced to ES Tech Group and was exposed to the brand new web store, EvolutionX, for the first time. I saw what it’s capable of and became a partner in the business shortly thereafter.

I joined because I truly believe the new web store is a differentiator in the B2B commerce space – it blew me away in terms of its features, functionality, capabilities and scalability.

OPI: What does EvolutionX set out to do?

DB: It’s all about providing a differentiated end-customer experience. How do you make it as easy as possible to buy a product online in the B2B space? How do you offer a highly personalised experience with rich content? How can you be as convenient as possible? Most importantly, how do you position dealers to be truly competitive with Amazon?

OPI: I’m guessing EvolutionX offers solutions to those questions?

DB: Very much so. The company’s tagline is ‘Content. Commerce. Connected’. Through our

Dave Bent, President of ES Tech Group’s US operations

You need rich content for the website – that could be FusionPlus; you need a great web store platform – EvolutionX; and you also need the people and the talent to drive and manage both in an efficient way OPI: Is EvolutionX particularly suited to the larger customer?

DB: EvolutionX scales from the smallest company to multibillion-dollar entities. In terms of B2B functionality, it outperforms any of the well-known e-commerce solutions like Magento, Shopify, BigCommerce, etc.

Most of our customers in the UK are in the less than $10 million bracket and a considerable number are under $5 million. The deciding criteria is less about size and more about readiness to engage in the experience, however. In my mind, three things must be in place to make a dealer/ distributor successful nowadays in digital terms: you need rich content for the website – that could be FusionPlus; you need a great web store platform – EvolutionX; and you also need the people and the talent to drive and manage both in an efficient way.

In terms of our target audience, like I mentioned, most OP dealers have a front-facing web store of some kind. In industrial, many have a website, but no commerce capabilities. Jan/san sits somewhere in between.

OPI: Have all your customers transitioned to EvolutionX now?

DB: After we launched the new version last year, we went into beta testing and took some UK and US customers live on the web store. We’re envisaging complete migration to EvolutionX by the end of the year – that’s about 350 dealers/distributors.

Parallel to that, of course, we’re canvassing for new prospects. In the US, where we’re growing the fastest, we’re looking to expand our customer base by about 50% in the next 12 months.

OPI: You’ve already mentioned broadly who you’re working with. Do you have a sweet spot in terms of your target audience?

DB: No, it’s a real mix. In the UK, OP dealers/ distributors are still our core, without a doubt.

We’re also really engaged – both in the US and the UK – with the jan/san sector and various industrial verticals, partially through our work with FusionPlus whereby we’re helping wholesalers, distributors and manufacturers with their catalogue content.

The office products portion is very advanced in terms of its adoption of the digital paradigm.

Many other industries – though massively diverse – haven’t been challenged from a digital perspective, so OP is definitely ahead. This was initially driven by companies like Staples, Office Depot and OfficeMax, which built out their B2B platforms and did excellent jobs from a digital perspective.

Now Amazon Business is pushing these efforts even further, so it’s vital that dealers/ distributors – in all verticals – take steps to remain digitally competitive. That next step is to offer much richer content, a more customer-oriented web experience, personalisation with truly integrated logistics and tracking and, of course, mobile.

ADVERTORIAL ES Tech Group

FusionPlus catalogue, we can bring rich content to a website. With EvolutionX, we have a web store platform which integrates that content to a dealer’s/ distributor’s back-end ERP platform.

We invested about $3 million into completely redesigning our platform and delivering what is now EvolutionX. One of the thought processes behind the redesign was that we wanted to create something whereby our customers – dealers/distributors – don’t need IT resources or developers to manage the look and feel of the site, change prices, add products, update the marketing and merchandising, etc.

We wanted to put all the content and functionality at our customers’ fingertips and ensure they had full control of their web stores. The platform is now ‘feature complete’ for the most sophisticated B2B processes and scenarios that support Fortune 100 end customers without additional consulting and software development.

Personalisation was the next piece of the puzzle.

Say the customer of an office products dealer is exclusively a buyer of school supplies. With EvolutionX, the dealer can segment this buyer and create a completely unique experience when he/she logs in, so that the buyer sees content specifically focused on school supplies.

It goes without saying that everything we build is mobile-enabled which is critical in today’s world.

Overall, it’s a 100% secure, stable platform that’s cloud-hosted. We have dealers/distributors which service government contracts and those that supply Fortune 100 companies. If necessary, EvolutionX can be scaled to very large multibillion dollar enterprise customers too. We’ve built all the functionalities that end-customers need – such as managing budgets and workflows, for instance – into the program.

Learn more about how ES Tech Group can improve your B2B e-commerce processes at www.estechgroup.io

OPI: Let’s conclude with ES Tech Group’s expansion plans.

DB: We’re definitely planning to expand. Canada and Australia are real opportunities. Canada specifically might be on the horizon later this year or next. The system is architected for multilingual application but, to be honest, there’s plenty of scope left in the US and the UK.

July/August 2018 49

CATEGORY UPDATE

TIME to collaborate & listen The chameleon nature of the workplace is fuelling a buoyant office furniture market as the integration of ergonomics, technology and design becomes even more tightly-knit – by Michelle Sturman

T

We have seen significant success working with furniture resellers by encouraging add-ons WORKPLACE CHALLENGES The big trends pushing furniture sales are health and wellness, including ergonomics, the shift away from the grey cubicle into collaborative workspaces, and the move towards the ‘office as a home’. “Consumers have veered to more of a residential feel; the office today is more like a home office, with cool fabrics, modern designs and comfort above all,” explains Moore.

Wilkhahn Head of International Communications Burkhard Remmers explains that customers are facing three core challenges: how to attract talent, how to support collaboration, and how to make sure employees stay healthy. “Our answer is excellent and unique design quality, and dynamic,

July/August 2018

he role the workplace plays in the emergence of health and well-being trends continues to grow unabated, and office furniture is an essential part of this. The move to open plan, collaborative workspaces is driving the necessity for more innovative ergonomic designs that not only encourage movement, but improve overall levels of employee fitness and health.

As a result, the office furniture sector globally is generally reporting sales growth, as companies take advantage of changing office requirements.

UK-based office furniture manufacturer Bisley, for example, reports year-on-year growth of over 10% in the UK and more than 7.5% in its international business. Meanwhile, for large manufacturers such as Steelcase, Herman Miller and Knoll, healthy financial results are leading to increased investment in product development and marketing as well as acquisitions.

In the past few months, Herman Miller and Steelcase have been on a spending spree, with the former expanding in Europe with stakes in Maars Living Walls and HAY, and the latter broadening its portfolio in the education sector with the acquisition of Texas-based Smith System Manufacturing Company. Steelcase has also entered into a partnership with furniture lifestyle brand West Elm to create workplace solutions.

Additionally, Fellowes Brands – a relative newcomer to the world of furniture – bought workplace wellness

solutions company ESI, and last year entered into a joint venture with furniture specialist Posturite (see page 54 for an interview with Fellowes’ James Webb).

So there’s clearly plenty of action in the industry.

However, it’s not been plain sailing for everyone.

MooreCo Director of Marketing Paola Moore told OPI that US transactional office furniture sales have declined, citing reasons such as the uncertainty surrounding US wholesalers Essendant and SP Richards, as well as Amazon and overseas manufacturers selling directly into the market. In the UK, Floortex Europe Marketing Manager John Barker says the OP channel had been challenging, but is now picking up again after a slight dip in 2017.

51

Furniture CATEGORY UPDATE

participation-oriented settings for innovation processes with furniture as a tool to increase physical activity,” he comments.

A visit to any furniture show such as NeoCon in the US (see page 57) or Clerkenwell Design Week in the UK (see page 61) reveals these trends are in full swing. They are also creating some interesting office furniture adaptations. As Bisley Director of Sales – Key Account Division Geoff Lea remarks: “Agile working entails workers carrying laptops/tablets in their bags, and these high-value items need to be stored in a safe and secure way. The use of a locker or pedestal keeps an employee connected to the workplace, creating an essential ‘sense of belonging’.”

Bisley recognises that while it currently maintains its high market share, it operates in a declining sector and therefore innovation is vital. As Lea explains, storage products can provide perch-points for impromptu meetings, as well as doubling up as space dividers in an open plan environment. They can even provide acoustic qualities if constructed in the right fabric.

“For Bisley, the key change is the increased need for personal storage and we are seeing a shift in buying priorities – storage is now considered a key element of office design. We are moving from supplying only the storage element in an office to providing a complete interiors solution for customers,” adds Lea. This fits with changes recognised by Steelcase, which sees less desire for personal pedestals; large fixed storage areas are also less prevalent. Indeed, the swing towards the gig economy and hot-desking has meant employees have become more agile. Now they require mobile technologies that they carry with them and an office that offers an ecosystem of spaces to support different types of work.

www.opi.net

TECH FOCUS The demand for different ways of working is giving rise to the integration of technology in all aspects of the workplace. Ergonomic furniture vendor Humanscale believes furniture which is interconnected with IT solves many problems that users face with agile working, and that this is an area that will develop further. “Technology and connectivity are key areas for us. Moving forward, products such as M-Connect will increase in popularity due to their unique nature. We need to integrate furniture with tech, which enables us to engage with IT departments too,” says the company’s Senior Account Manager Alex Corbitt.

The amalgamation of mobile working, ergonomics, furniture and technology is also providing inspiration for traditional OP companies. Germany’s Durable, for instance, has released a new tablet holder that is ergonomically designed, with adjustable screen angles and built-in security measures.

52

STAYING ACTIVE The rise of the ‘active office’ is also aiding sales of products such as anti-fatigue mats, and of course, sit-stand desks and ergonomic furniture. As Floortex’s Barker notes, the US is well ahead of much of Europe in these practices, although the Scandinavians have been working this way for decades.

Floortex is set to launch its second-generation range of anti-fatigue standing surfaces specifically focused

Bisley’s LateralFile storage systems are ideal for a mobile workforce

for use with standing and height-adjustable desks.

According to the company, the AFS-TEX 5000 offers the “ultimate ergonomic standing surface to promote comfort, reduce fatigue and increase productivity”.

Products such as these mats are also helping to push the ‘solution’ idea mentioned by Lea. “By offering greatly beneficial accessories in a high-growth category, we are providing added value link-sell opportunities. We have seen significant success working with furniture resellers by encouraging add-ons,” says Barker.

Moore agrees, adding: “Resellers should sell solutions and applications of furniture, not just the product itself. Both MooreCo contract and Vanerum North America strive to ‘design with purpose’ to create solutions that are personal and significant to the implementation that they are needed for.”

For workplaces that have not yet evolved into fully collaborative spaces, there is still plenty of scope to provide a solution in the form of breakout areas incorporating modular furniture, for example.

Resellers should sell solutions and applications of furniture, not just the product itself UK-based office furniture manufacturer Dams says that the concept of the breakout area has evolved to become much more than just some soft seating hidden away in the corner of an office. A well-designed space can provide an informal meeting space, double up as a breakroom or, importantly, as a place for employees to relax away from their desk.

To this end, Dams has introduced Social Spaces – contemporary, design-led products for corporate breakout spaces, reception areas, meeting rooms and dining areas. The range comprises soft seating, multifunctional modular seating, table and bench combinations, and bistro-style chairs.

For more exclusive content on the topics of sustainability, research and trends, visit the July/ August issue in the Magazine section on opi.net.

39

Furniture CATEGORY UPDATE

All WELL & GOOD

O

ver the past few years, Fellowes Brands has taken the bold step to broaden its product range and make the leap into the growing area of ergonomics. OPI speaks to European Marketing and International Key Account Director James Webb to find out more.

OPI: How has the office furniture category performed for Fellowes over the past year or so?

James Webb: The [European] office furniture market is worth €8.4 billion ($9.7 billion) and projections are that it will continue to grow. While this growth is very fragmented, depending on the market, the trends are broadly the same.

We have seen the development of innovative products that complement newer ways of working gaining momentum. In comparison to some of the other players, Fellowes is relatively new to the category. Despite this, we are seeing high levels of growth that we attribute to our approach of helping customers be the best they can be – whether at work or at home. For us, this is not just a brand positioning statement. It’s something we all believe in and actively promote.

In general, the office furniture sector itself is seeing more businesses implement ergonomics and well-being solutions proactively to retain and attract talent. It is a positive cultural shift and we believe this is set to continue.

OPI: What are the major trends in the workplace furniture space?

JW: There are numerous trends dominating the workplace furniture space, but in particular they revolve around those product designs that contribute to productivity, collaborative workspaces and agile working. Products such as sit-stand workstations and desks are performing well as they address the growing need for healthier work environments.

The popularity of monitor arms is also on the increase because more people realise how dual screens can increase productivity by up to 42%.

Hardware such as monitors have reduced in cost and this is facilitating new ways of working among end users as companies look to drive efficiency.

www.opi.net

OPI: Conversely, are there any furniture trends which are falling out of favour with customers?

JW: Trends such as open plan offices are proving challenging for companies due to the acoustics issues these types of spaces generate. There is a requirement for employees to balance light and airy environments with privacy and collaborative working.

Office furniture solutions will need to consider this and deliver accordingly.

54

OPI: Is Fellowes moving into any other new product categories?

JW: Yes. Following the growing popularity of the Fellowes Lotus range of sit-stand workstations that include the Lotus DX and Lotus VE, we will be building

on our ergonomics focus and expertise. 2018 will see us expand the range with new products – the Lotus RT sit-stand workstation; Levado, which is a height-adjustable desk; and Penguin, an ambidextrous vertical mouse.

OPI: Are there specific verticals that stand out for you in terms of growth?

JW: We believe that growth will be driven by sectors employing knowledge-based and high-value workers, including verticals such as finance and IT. Although it is early days for us, we have created a significant number of tools that allow people to understand the benefits of implementing workplace health and well-being solutions, one of them being an ROI calculator available on the Fellowes website.

We are actively working with our resellers to offer consumers a free trial of our sit-stand workstations so that they can see the benefits for themselves. We are also having great success with running ‘working well’ days within large blue-chip companies in conjunction with our dealers, where we can share the benefits of employing a healthy workplace strategy with end users.

OPI: How is Fellowes incorporating technology into its office furniture designs?

JW: Consumers and businesses are always looking for office furniture that optimises existing space and allows workers to practise intuitive hot-desking.

Some of the technological integrations in the market include wireless charging and the futuristic ability of furniture to monitor inactivity and prompt movement, like fitness watches.

We know that when it comes to their work desks, consumers are looking for sharp structures with clean, crisp lines. They don’t want to see unsightly wires and clutter. We’re mindful of these requirements and our sit-stand workstations have built-in wireless charging and USB connectivity to offer a streamlined solution.

OPI: Fellowes recently acquired ESI and has partnered with Posturite. Can you provide an update on these deals?

JW: ESI serves the furniture dealer market, a different channel to Fellowes. While ESI sells specific Fellowes products to its clients, there is little overlap in our customer base and therefore the company will continue to do what it does best. Of course, we will pursue any efficiencies that may exist between us.

Fellowes is also working with the ESI teams on several exciting product-related projects, which will be coming to market during 2019.

Posturite is a great business that has been very successful in its own right with a unique range of products and a highly-skilled team of ergonomic experts. We have a close relationship with them and are exploring ways in which we can benefit from each other’s innovation and knowledge. As both companies continue to grow, we will also be looking to see how we can all operate more efficiently.

James Webb

NeoCon CELEBRATIONS

N

eoCon, the furniture show for design professionals, celebrated its 50th year in style with cutting-edge displays and installations, events, expanded exhibition space, and parties galore, including ‘The Future is PARTY’, celebrating ‘50 years of tomorrow’s design’.

This year saw more than 50,000 visitors stream through the doors of The Mart in Chicago, Illinois, exploring the wares of 550 exhibitors across almost one million sq ft (100,00 sq m).

SETTING THE TRENDS The move to open plan offices and the ‘living office’ shows no signs of slowing, with furniture on display that wouldn’t look out of place in a lounge, reception area or bar. Safco Products, for example, launched its MYAH Collection at the expo which is a range created to “Make Yourself At Home” – comfortable and versatile with a “home-style appeal to encourage collaborative environments for people to gather and work”.

NeoCon brought together the brightest and the best in the industry for its world-class educational programme

Curved module furniture in all colours and fabrics was everywhere at NeoCon, with the latest models offering acoustic properties specifically aimed at collaborative spaces. In fact, acoustic offerings were widespread and included everything from a large variety of breakout spaces designed with privacy in mind, to living walls created to absorb sound.

Meanwhile, Herman Miller’s acquisition, Maars Living Walls, unveiled AXES – steel-finish doors that pivot on axis points to become an acoustic wall system. Other notable trends that were very much in evidence were mid-century furniture designs and the incorporation of wood.

Health and well-being still dominates the commercial furniture scene, with ergonomic furniture and accessories in abundance – all with the aim of aiding a healthy workplace. This year saw desk chairs in particular moving towards intuitive movement. Steelcase, for example, touted its new SILQ chair designed to respond to the unique movement of the body, while Herman Miller launched the COSM chair.

MARK THE DATE The next NeoCon will take place at The Mart in Chicago, US, from 10-12 June 2019.

July/August 2018

THE BEST IN EDUCATION As usual, NeoCon brought together the brightest and the best in the industry for its world-class educational programme which comprised four marquee presentations and more than 100 seminars.

Standout seminars included a case study of the world’s first WELL building; how to create a cult-like following through branding; moving beyond the open plan office; the gig economy; and using design psychology.

The keynote sessions featured a stellar line-up from influential names in design and elsewhere: Gensler founder Art Gensler in conversation with Cheryl Durst of the International Interior Design Association; Interior Design Editor-in-Chief Cindy Allen moderating a panel honouring all women in design; Wired Editor-in-Chief Nick Thompson on how technology and science will change our lives; and Ross Barney Architects founder Carol Ross Barney on creating liveable cities.

For half a century, NeoCon has served up the latest innovations and forward-thinking designs in the commercial interiors industry. Launched in 1969, the show arrived at a time when industry standards became a necessity, and helped with the creation of bodies such as the Business and Institutional Furniture Manufacturers Association.

In the 1970s, the global energy crisis led to discussions about the importance of conservation in design while the launch of computers in the 1980s saw a shift to better ergonomics. The following decades focused on versatility, inclusivity and corporate responsibility.

The financial crisis in 2008 signalled the start of a change in the workplace that saw non-traditional office culture take precedent and instigated the search for a better work/life balance.

CATEGORY UPDATE Furniture

CELEBRATING 50 YEARS OF NEOCON

57

ADVERTORIAL

Fellowes:

a brand ON THE MOVE A real entrepreneurial drive remains at the heart of Fellowes as it continues to evolve and innovate to meet the demands of today’s customers

S

www.opi.net

tarting with the humble Bankers Box in 1917, then evolving into the shredder category and now also comprising a wide range of wellness products, Fellowes Brands is a company that is defying the challenges in our industry and facing them head-on.

Fourth generation CEO John Fellowes speaks to OPI’s Heike Dieckmann about what makes this ever-evolving vendor tick.

58

OPI: You’re in your 101st year now – that’s a long time in business. Please describe Fellowes as a company.

John Fellowes: Fellowes fosters a culture which embraces the strong principles and values that were established by my great-grandfather in 1917, but is also evolving to ensure that we are offering relevant solutions to those we serve.

Over the past five years, we have gone through an accelerated transformation in view of the significant impact of how technology and social trends have reshaped the professional society and behaviour.

We have taken a fresh look at our organisation, our products, our brand and many of our approaches and processes – making meaningful adjustments where it has made sense.

Today, we are experiencing building momentum from many of these changes. Fellowes is both growing and investing in its future, and the energy that this has created inside and outside of our organisation has been palpable.

OPI: We talked about your ‘expansive initiatives’ in the past. Which of these have grown into fully-fledged categories for you?

JF: Our expansion initiatives continue to focus on workplace well-being. Fellowes has always strived to help professionals obtain the optimal state of mind through the benefits of organisation, productivity and peace of mind. As we move forward, we are extending this commitment to helping professionals with their state of physical health and well-being in the workplace.

Our goal is to transform the primary workspace experience and the perception of it being ‘the enemy’ to a place that invigorates and embraces motion. Many people have heard that “sitting is the new smoking”. Based on tangible evidence, eliminating stagnancy in our working day helps promote a positive state of body and mind.

In 2017, we started to launch our wellness strategy, debuting the Lotus Sit-Stand Workstation Series. We also acquired ergonomics operator ESI, which represents a new capability to serve the contract furniture channel in the US. Later this year we will be rolling out new and distinctive sit-stand desks and an active seating chair. This will debut our new proprietary Omni-Kinetic Suspension Technology – an innovation that we have been working on for almost five years.

OPI: Talking of consumer needs, how are you responding to the trends that affect your target audience – which presumably now is wider and more comprehensive than ever? And what does that mean for your route to market and your marketing initiatives?

JF: We’re passionate about designing products that are inspired by our target audience’s desire to feel and work better. We’re offering a healthier way to work – which brings movement, activity and alertness into their day.

Above from left: A Fellowes billboard as part of its most recent advertising campaign; the Atrium in Fellowes’ renovated HQ; and the Fellowes Horizons team

From a marketing perspective, as consumers increasingly turn to digital means and learn about well-being, we are engaging them in a conversation – whether that’s on social media or through other digital channels. We strive to provide valuable content and information for consumers seeking to learn about holistic workplace well-being.

We’re also excited to have recently launched our largest single advertising campaign in the US. It encompasses broadcast, outdoor and digital, and communicates our core values as a family business.

ADVERTORIAL Fellowes Brands

OPI: How does Fellowes manage to remain innovative at a time when traditional office products are in decline and there are so many challenges to contend with in the industry?

JF: We recognise that innovation and product solutions are at the heart of our value proposition to the marketplace. As such, this area of our business is one of our most important investment zones.

We have also made meaningful changes to our organisation over the past 4-5 years which have brought new capabilities and experience to our product development team. For example, our in-house design centre of excellence is comprised of various disciplines from research and design to engineering, and unifies key factors in the product development process. As a result, we are nimbler to develop new-to-world innovation that delivers on consumer needs.

Our company purpose is to help people be their best. This comes to life in our product solutions, but also through our commitment to our people and culture

Below from left: John and his father James Fellowes

OPI: Fellowes is perennially in lists of ‘best companies to work for’. Tell me a bit about the culture at Fellowes.

JF: Our company purpose is to help people be their best. This comes to life in our product solutions, but also through our commitment to our people and culture.

We understand the role of the workplace, enabling productivity as well as creating a sense of purpose.

As such, we recently invested in the renovation of our Itasca, Illinois, headquarters. The new environment has a modern feel and a more open format to enable collaboration. We have also paid close attention to all of our peoples’ new workspaces, equipping them with furniture and tools that promote wellness.

July/August 2018

OPI: What’s next for Fellowes?

JF: Well, we have covered all the major business themes of our future I believe. What I would like to add is that we continue to bring greater purpose to our organisation through prioritising our GIVE programme.

This autumn, we will sponsor our third annual GIVE impact trip to one of Fellowes’ supported charities working against global poverty. This year’s trip is to Maria’s House of Hope in China which cares for orphan children who are suffering from life-threatening illnesses.

Last year, Fellowes outfitted Maria’s facilities with 70 commercial air purifiers and the impact on the recovering children has been tangible. This year ten Fellowes employees from around the world will visit this project and offer their services for a week to support this important cause.

59

EVENT

T

CLERKENWELL DESIGN WEEK REVIEW

he best in office furniture businesses, designers, architects, students and buyers, once again descended onto London’s creative hub for the ninth Clerkenwell Design Week (CDW).

From 22-24 May, the Clerkenwell area in the UK capital was awash with CDW’s distinct pink colour scheme as it played host to a packed programme, including fringe events, showroom presentations, workshops, talks and public-oriented exhibitions.

As usual, commissioned installations were located at high profile spaces throughout Clerkenwell featuring leading names in design, engineering and architecture. The key theme this year was sustainability. On offer was an eclectic bunch which included a new lease of life for old tote bags with free customised printing; a kaleidoscopic oculus designed by school students inviting visitors to gaze upwards and become more aware of the natural elements surrounding them; polystyrene ‘beacons’ created to highlight its 100% recyclability benefits; Pipe

July/August 2018 61

Clerkenwell Design Week EVENT Line pieces offering a new and colourful approach to street furniture such as bike racks and benches by design graduate Lou Corio Randall; and finally, in celebration of the recent royal wedding, start-up Kinetech Design created a foldable structure inspired

by Shakespeare’s plays and Elizabethan ruffs.

www.opi.net

KEEPING WELL Well-being and a healthy workplace were once again at the fore of CDW as offices continue to transform into open plan spaces. Living walls were popular, featuring different types of moss and foliage. Cornwall-based office furniture brand MARK, in collaboration with Oasis Interior Landscaping, offered an interesting addition: it demonstrated its new range which features living plants incorporated directly into the furniture.

Soundproofing and quiet areas were all the rage, with CDW visitors making use of both The Meeting Pod’s and Nook Pod’s meeting spaces.

There was also plenty of innovation in terms of office wall coverings – 3D woven acoustic panels

62

from Casalis, for example – and general office furniture. Tacchini wowed with its quirky lighting designs and sumptuous furniture, while The Collective Agency’s modular furniture stood out from the crowd.

Well-being and a healthy workplace were once again at the fore of CDW as offices continue to transform into open plan spaces British office furniture firm Dams displayed its latest collections covering breakout areas and agile working, along with its new modern looking Kastaway range. Meanwhile, Bisley opened the doors to its new showroom in Clerkenwell, showcasing its flexible workspace solutions and ready-to-go storage range.

EVENT

NAOPA PREVIEW

Texas-bound: NAOPA 2018

T

he ninth North American Office Products Awards (NAOPA) are firmly underway.

Organised by OPI in association with US wholesaler SP Richards (SPR) as part of its annual Advantage Business Conference (ABC) which this year takes place in San Antonio, Texas, from 19-22 August, the finalists for the vendor awards have been decided. (For a preview of the ABC, see OPI June 2018, page 51).

The categories for these product-related awards have been trimmed down this year, taking into consideration that segment boundaries are blurring and products being increasingly eligible for several of the former categories. Particularly so-called ‘core office products’ in today’s world find applications in many non-core environments while, by the same token, a wide variety of ‘technology’ products are now very much at home in traditional settings.

The shortlist in the two vendor categories that reward overall business product as well as innovation of the year is as follows:

www.opi.net

BUSINESS PRODUCT OF THE YEAR • Acme United – First Aid Only SafetyHub Requisition App • Kensington – SD5200T Thunderbolt 3 Docking Station • MMF Industries – TruVue Verification Station • Newline Interactive – TRUTOUCH VN Series • Safco Products – Focal Twister Active Stool

64

INNOVATION OF THE YEAR 2018 • 3M – Post-it Extreme Notes • AmpliVox – Classroom Audio System with Wireless Microphone • GOJO Industries – PURELL ES8 Dispensing System • MMF Industries – TruVue Verification Station • Safco Products – Focal Fidget Active Stool

In addition to the finalists in these categories there’s one further product award that has become one of the highlights of the NAOPA – the People’s Choice. The number of overall entries received this year was yet again overwhelming, testifying to the continuous innovation in our sector. As such, the judging panel had a tough time whittling down the nominations and deciding which ones should make it into the People’s Choice shortlist.

The winners of these [dealer] awards are not just coping with the many challenges this changing industry is throwing at them, they thrive on them In the pages that follow you will find all the finalists – including those in the two aforementioned categories – that are eligible for the People’s Choice award. As you can see, the entries are wide and varied, illustrating just how all-encompassing our industry is becoming.

Voting for the People’s Choice, which is open to OPI’s US readers and delegates of the ABC, began on 20 June – via opi.net – and will culminate at the Expo day of the ABC on 21 August.

ALL ABOUT THE PEOPLE Another integral – and always highly anticipated – part of the NAOPA are the dealer awards. These accolades – comprising the Professional and Executive of the Year as well as the Industry Achievement awards, highlight determination, progress and – frequently – resilience in the face of adversity. The winners of these awards are not just coping with the many challenges this changing industry is throwing at them, they thrive on them, embracing the good and tackling the bad.

There’s no shortlist for the dealer awards and all three winners will be announced during the ABC, with a full review published in the September issue of OPI.

NAOPA 2018 EVENT

Which is your FAVOURITE? Select your winner of this year’s People’s Choice award Pick your favourite and text the unique code – on pages 48-51 – to 650 600 9016. For more details on all shortlisted products, including video links, as well as voting information, visit www.opi.net/naopa2018 3M – POST-IT EXTREME NOTES Post-it Extreme Notes are designed to facilitate communication in tough conditions. Made with ultra-strong Dura-Hold paper and adhesive, they stick securely to a range of textured surfaces, including raw wood, brick, cement, tile, steel and more. Post-it Extreme Notes are durable and water-resistant, so they can withstand extreme conditions both indoors and outdoors.

CODE:

www.opi.net

165924

66

CODE:

165923

ACCO BRANDS – SWINGLINE STACK-AND-SHRED AUTO FEED SHREDDERS, SMARTECH-ENABLED 750X, 600X, 300X Swingline SmarTech Stack-and-Shred shredders take the Stack-and-Shred’s time-saving and productivity-enriching feature to the next level by sending notifications to the SmarTech app on a user’s phone or tablet, communicating the status of the shred job. The app notifies users when the shredding job is completed or if anything else needs attention, such as a full bin, a door open, oil required or a shredder jam that needs to be cleared.

CODE:

165925 ACME UNITED – FIRST AID ONLY SAFETYHUB REQUISITION APP The First Aid Only SafetyHub Requisition App simplifies supply requisitioning and keeps first aid cabinet details at users’ fingertips, so they can stay organised and in compliance. Including several innovative features, the app has a central management portal where managers can clearly see the status of all safety items within their organisation.

AMPLIVOX – ADA-COMPLIANT SIT TO STAND LECTERN AmpliVox’s ADA-Compliant Sit to Stand Lectern accommodates individuals who use wheelchairs as well as those who stand.

A powered lift adjusts the lectern’s height anywhere from seated (31”) to standing (41”). The height adjustability also allows the lectern to be used as a desk with a wide configuration that CODE: provides a spacious 165926 table work surface.

Text the unique code to 650 600 9016

165927

AMPLIVOX – CLASSROOM AUDIO SYSTEM WITH WIRELESS MICROPHONE AmpliVox’s Classroom Audio System delivers crystal clear sound amplification for conference rooms, training rooms and similar spaces. The wireless system includes a ceiling tile four-speaker unit, delivering room-filling 360° sound from a single unobtrusive source. The speaker pairs with AmpliVox’s 2.4 GHz Universal Digital Wireless Headset/Handheld Microphone, plugged into a seven-channel mixer/amplifier for simple volume, treble and bass control.

DEFLECTO – ERGONOMIC SIT STAND CHAIR MAT This dual-purpose Ergonomic Sit Stand Chair Mat combines the comfort and ergonomic benefit of CODE: anti-fatigue support 165928 foam with the smooth rolling surface of a full-size traditional chair mat.

Designed specifically for use with adjustable height workstations, this anti-fatigue mat allows users to transition seamlessly from sitting to standing, while promoting better ergonomics, healthier employees and increased productivity.

GOJO INDUSTRIES – PURELL ES8 DISPENSING SYSTEM The PURELL ES8 is a touch-free hand soap dispenser with ‘energy-on-the-refill technology’. Each new refill comes with its own energy source – a coin cell battery integrated into the refill. Optional SMARTLINK modules add capability for service alerts, compliance monitoring and other upgrades as technology evolves. AT-A-GLANCE refills provide the easiest way to see when they need to be changed.

KENSINGTON – ELECTRONIC LAPTOP LOCKING STATION WITH K-FOB Incorporating Kensington’s K-Fob digital key technology, and engineered to be the most secure and convenient laptop lock available, the Kensington Electronic Laptop Locking Station with K-Fob is a professional locking solution for today’s thin and light laptops. Designed to reduce theft and improve compliance with corporate security protocols, the station secures MacBook and most Dell, HP and Lenovo models.

CODE:

165930

KENSINGTON – SD4700P UNIVERSAL USB-C AND USB 3.0 DOCKING STATION Supporting the latest technology while extending the life of your docking solution investments, Kensington has engineered the SD4700P Universal USB-C and USB 3.0 Docking Station using the most stable and trusted technology.

Accommodating the newest computers with USB-C ports, while also being suitable for legacy devices with USB 3.0 ports, this is an ideal docking solution for computing environments that are transitioning to USB-C.

CODE:

165929

EVENT NAOPA 2018

CODE:

CODE:

165941

July/August 2018 67

NAOPA 2018 EVENT

KENSINGTON – SD5200T THUNDERBOLT 3 DOCKING STATION Kensington has engineered the SD5200T Thunderbolt 3 Docking Station for both Windows PCs and Mac. Accommodating a single Thunderbolt 3 cable carrying up to 40Gbps of data, which is enough bandwidth to simultaneously run two 4K monitors at 60fps, while also providing up to 85-Watt of laptop charging, the SD5200T Thunderbolt 3 Docking Station is a power user’s solution for hyperproductivity.

CODE: 165937 KENSINGTON – ULTIMATE PRESENTER The Kensington Ultimate Presenter is a presentation tool that works for a variety of environments and screens. Overcoming the shortcomings associated with traditional laser pointers, such as bright LED screens or safety restrictions, the Ultimate Presenter is optimised for use in conference rooms with TV displays, online meetings with remote participants, and large auditoriums with multiple presentation screens.

CODE: 165940

www.opi.net

METROVAC – DATAVAC ELECTRIC DUSTER MetroVac’s DataVac Electric Duster is positioned as a greener, more effective and cost-efficient alternative to ‘canned air’ products. With no ozone-depleting propellants, the electric duster is a compact yet powerful computer and equipment duster, designed to blast dust, dirt and debris off expensive tech equipment. The multi-purpose product features a 500-Watt motor that is ideal for keeping keyboards, computers and other technological equipment clean.

68

CODE:

165932

CODE:

165939

MMF INDUSTRIES – TRUVUE VERIFICATION STATION According to the US Department of the Treasury, there are $70 million of counterfeit notes circulating in the US. The TruVue Verification Station is a multi-purpose counterfeit detection solution that verifies payments and identification. It minimises loss from receiving counterfeit currency at the POS station; eliminates liability from accepting fake identification; and improves efficiency by streamlining the validation process without increasing checkout times.

NEWLINE INTERACTIVE – TRUTOUCH VN SERIES The TRUTOUCH VN Series is the latest model of CODE: 165938 next-generation collaboration non-proprietary interactive displays from Newline Interactive. It has an optically-bonded screen to provide a more accurate touch response and a wider viewing angle. Each display comes in 4K ultra-high definition, easy-access I/O ports, and a customisable user interface to make everything simple and easy to use.

Text the unique code to 650 600 9016

SAFCO PRODUCTS – FOCAL TWISTER ACTIVE STOOL Twist into a more active day with the Safco Focal Twister Active Stool. It has a curved base that allows users to rock, twist and fidget to help keep the body active and the mind engaged all day. The Twister Active Stool responds to customers’ demands for seating options that answer the body’s desire CODE: to move, while 165935 honouring the brain’s desire to stay focused on the job.

SAFCO PRODUCTS – FOCAL FIDGET ACTIVE STOOL The Focal Fidget Active Stool gives way to a new type of ‘staying busy’ at work. With the ability to twist, rock and fidget, this active option keeps you moving, engages muscles and can help to maintain focus. The stool is available in three different heights to suit a variety of users and includes a foam, pan-style seat to keep the body in a neutral, open-hip position for optimal comfort.

CODE:

165931

CODE:

EVENT NAOPA 2018

SAFCO PRODUCTS – FOCAL COLLISION TABLE Safco’s Focal CODE: Collision Table is 165934 perfect for quick meetings, informal gatherings, collaboration, lunches or breaks. The standing-height table allows for the option to stand during use for a more active work option. It includes discreet steel hooks under the tabletop for holding up to five Mogo Seats.

165933

TEACHER CREATED RESOURCES – BETTER THAN PAPER Better Than Paper is a non-woven fabric that makes creating beautiful bulletin board backdrops quick and easy. The lightweight material is simple to hang with no more struggling with paper that wrinkles and tears. Users can attach border trim, posters and student work with staples or tape and remove without ripping or leaving conspicuous holes. The durable write-on/wipe-off surface can be used again and again.

VICTOR TECHNOLOGY – THE EDGE DESK The Edge Desk system offers the ideal integration of personal comfort and office space efficiency by combining a portable, folding desk with a kneeling chair that expands and collapses. Designed to accommodate a variety of users, the Edge Desk’s height, angle and tilt adjust to individual body sizes and desk preferences, making it a customisable and comfortable work experience.

CODE:

165936

July/August 2018 69

EVENT EUROPEAN

Forum 2018

‘digital’

OPI EUROPEAN FORUM REVIEW

The LONG ROAD TO

As the recent OPI European Forum in London showed, ‘going digital’ is a long, evolving and often challenging process.

But not embarking on that journey will inevitably result in a dead end

T

www.opi.net

he seventh OPI European Forum, which took place at the beautiful and historic Royal Horseguards Hotel in London, UK, from 5-7 June 2018, turned out to be a thought-provoking and highly informative gathering, all basked in early-summer British sunshine.

The networking at the event, which pulled together about 100 senior executives from the European business supplies industry and beyond, was described as “not to be missed” and “excellent”, while the quality of the conference programme was rated as “outstanding”, “first class” and “engaging and relevant”. Indeed, on the networking front, a record 100% of delegates described this aspect as “vital” or “important” in their decision-making to attend the invitation-only event.

From the welcome barbecue, networking breaks during the conference sessions to the fabulous group dinner at the Skylon restaurant on London’s Southbank at the end of the first day, attendees had plenty of opportunities to talk to their peers in a confidential, Chatham House-rule dictated environment.

In fact, Chatham House rules prohibit the OPI team from divulging too much detail with regards to what was said at the forum – and by whom – but the core takeaways were many and varied.

70

EVENT European Forum 2018

l’ Conference chair Gordon Christiansen, COO and SVP of Marketing at sales and marketing agency Highlands, opened the European Forum and took delegates through a packed programme of keynotes, presentations, panel discussions and roundtables.

He did so with great aplomb, not only guiding proceedings and imparting his extensive knowledge of the industry along the way, but also dealing exceedingly well with a couple of technology hitches.

The irony of these hitches – the event fell under a broad umbrella of ‘Going Digital’ – wasn’t lost on forum delegates. Nobody said it was going to be easy though, and the fact that the digital journey is a marathon rather than a sprint was aptly illustrated by many speakers, perhaps most notably keynote speaker Rob Laurens in the opening session of the conference. Laurens outlined the various phases of digital engagement and urged delegates to become ‘bionic’ businesss.

DIGITAL OBSTACLES There are many hurdles along the way. Companies need to seriously think about their presence on social media, for example, when things go wrong, and protect their corporate reputation. Cybersecurity is another hot topic that needs addressing. And pricing

has become so transparent on the internet that it’s no longer a real differentiator.

At the heart of it all are the customers, and the experience they’re having. OPI’s CEO Steve Hilleard led a panel discussion to conclude the first conference day that included some high-profile senior executives. One of them put it quite succinctly. “You

Investigate your company’s pain points, challenge them, invest in them and then fix them can’t be all things to all people, but investigate your company’s pain points, challenge them, invest in them and then fix them.”

Customers – as well as a company’s employees, importantly – can be influenced, of course, and the beginning of day two saw a highly interactive talk on applying ‘nudge theory’ to change behaviour and mindsets.

The next OPI European Forum will take place at the Westin Grand Berlin, Germany, from 5-7 June 2019.

EF 2018 takeawa ys 1. Inves tigate cy b ersecurit procedu y res 2. Be un predicta ble in pricing s trategy 3. Imple ment ‘E AST’ nudge th eory 4. Discu ss better brand protectio n

July/August 2018 71

5 MINUTES WITH...

Mike Tucker

CAREER Q&A

What’s your life philosophy?

I try to live by this golden rule: treat others the way you want to be treated.

What special skill do you possess?

Not sure that I have one. Jack of all trades, master of none!

What makes you happy?

Other people’s happiness, especially that of my wife, children, grandchildren and the people I work with.

What do you do in your spare time?

I like to exercise, play golf and spend time with my family (five children, ten grandchildren and two more on the way).

What is the hardest thing you have ever had to do?

The eulogy at my mother’s funeral. I’m the oldest of five children and she was relatively young when she died.

Best way to spend the weekend?

Being at the ocean with family and friends.

Golf, swimming, boating and extended happy hours.

Your favourite gadget?

My zero-turn lawn tractor. It’s fun to drive and gets the yard done in a hurry.

If you were President, what would be the first law you would pass?

Term limits: many country leaders have been in office too long for the wrong reasons.

What words do you use the most?

Best regards… So many emails.

What would be a good theme song for you and your life?

Amazing Grace!

Where would you like to travel in the US? I would like to visit the national parks, particularly in Utah. I love nature and being outdoors and hope to hike, bike or use an all-terrain vehicle through parts of this beautiful country while I’m still physically able.

Childhood ambitions?

I’m totally addicted to sports and always wanted to play professional baseball.

What would you cook for a dinner party?

I’m not a great cook, but I am pretty good on the grill. Appetiser would be shrimp and avocado with a Caesar salad. Main course New York strip with sautéed mushrooms, Lyonnaise potatoes and brussels sprouts for sides.

Followed by French apple pie with ice cream for dessert, and finish up with a good cigar and a glass of bourbon.

If you could trade places with anyone for a day, who would it be and why?

Michael Jordan. I would like to experience being able to jump from the foul line and dunk a basketball.

Describe your current job.

President/CEO of the Independent Office Products and Furniture Dealers Association and the National Office Products Alliance (known as IOPFDA and NOPA respectively). These associations represent dealers, wholesalers and manufacturers, providing them with the information and tools they need to help them succeed in today’s changing business environment.

Worst ever job?

Cutting tobacco on farms in southern Maryland in the US. Hard, dirty work done in the hottest part of the summer for $2 an hour.

Best moment in your career so far?

Buying George W Allen in 1996 and being awarded an exclusive contract to sell Sanford products to the federal government.

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

You need a strategy to differentiate yourself. OP is a declining category and the internet generates a lot of noise that confuses customers and makes it difficult for companies to distinguish themselves in the marketplace. Assess your strengths and value proposition and then aim to implement a realistic plan to obtain success.

www.opi.net

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

Make the large national chains disappear. Their tactics have taken a lot of integrity out of the industry.

72

What personal item do you have on your desk?

A brass letter opener my mother brought me back from Greece in the 1970s.

FINAL WORD

TAKEAWAYS FROM A

Spirit of Life Honouree

O

PI asked me an interesting question during a recent conversation: “What’s it like being a Spirit of Life Honouree for City of Hope?” I’m sure all past honourees would have a slightly different spin on the experience they’ve had, but here are some of the things that I’ve learned from this year’s Generations for Hope campaign.

FICTION AND FACT Perception 1: It must be great to be the Spirit of Life Honouree and get to play golf every week.

Reality: I wish! Unfortunately, my day job gets in the way of attending all but a handful of events. But the City of Hope team are true professionals and work very closely with every sponsor to ensure a successful event.

www.opi.net

Perception 2: Aren’t these City of Hope campaigns primarily about golf?

Reality: Absolutely not. Our fundraising campaigns have broadened significantly in recent years to provide greater appeal to non-golfers. We have walking, hiking, running, skiing and biking events, as well as curling, fishing and charity softball initiatives. We’re even going to have a Harley motorcycle event this year.

The bottom line is: no matter what your interests, there is an event and an opportunity to get involved in the campaign. Everyone can make a difference and help us fight these life-threatening diseases!

74

Perception 3: I work in the industry, but my company is not one of the Fortune 500 companies with deep pockets. Is there really a role for my small business or for me as an individual?

Reality: Most definitely yes. One of the newer ways for small businesses to become involved in the campaign is our Cross-Country Cookout. Many small businesses host an annual summer picnic or BBQ for their employees. If you contact Andy Ishii at aishii@coh.org, City of Hope will provide you with a complete kit and containers for employees to make a free will donation in return for the cookout. We raised over $50,000 in our first year of sponsoring these cookouts. Just as importantly, it was a fun event for these businesses and their staff.

From an individual perspective, I would encourage you to go to the https://ourhope. cityofhope.org/familiesforhope website. This is a site designed for you to make a personal donation in support of a loved one who may be currently battling cancer or diabetes, or in memory of someone who may have lost their battle to these diseases. No donation is too small and there is a match to every dollar that you give.

ENJOY THE EXPERIENCE Jamie Fellowes – a previous honouree – sent me a nice note a few months ago encouraging me to make sure to have some fun and enjoy the campaign. I absolutely have. If you’re following our industry here in the US, you will be well aware of the structural events and degree of change underway. In hindsight, this may not have been my preferred year to be the honouree!

That said, I’ve found that working on the City of Hope campaign helps keep me grounded to what is most important – my family, my friends and the

Rick Toppin, President/CEO, SP Richards

The campaign is not about the honouree. It’s about the many thousands of wonderful people working in our industry who come together for one purpose – to help City of Hope find a cure to these life-threatening diseases people that I work with. Cancer and diabetes are striking far too many of these people in my life and the dollars that we raise through our campaign provides new hope to these individuals.

But maybe the greatest blessing of being an honouree has been that it’s provided me with a unique view into the “best” of our industry. Nearly every day, someone or some company does something truly remarkable and without any expectation of getting something in return. An independent dealer recently handed me a cheque for $20,000 solely because he wanted to help City of Hope. A small supplier pledged $1,000 simply because he was moved by our Generations for Hope theme of fighting these diseases for our kids and grandkids. Individuals who I don’t even know have contributed to theIssue Families for Hope site.

Special These are just JAN a few of the many amazing stories / SAN of hope from our campaign.

Every Spirit of Life Honouree will tell you that the campaign is not about the honouree. It’s about the many thousands of wonderful people working in our industry who come together for one purpose – to help City of Hope find a cure to these life-threatening diseases. I have been truly humbled by all the support that this year’s campaign has generated. My sincere “thank you” and let’s all keep working together until we have a cure.

Special Issue BREAKROOM

SPECIAL

NEXT ISSUE

Special Issue

JAN / SAN l l l

Category update Dealer spotlight ISSA Show North America 2018

Special Issue

JAN / SAN

Big Interview Mike Gentile, CEO, Independent Stationers

How To... ...get fit for digital business

Special Issue

BREAKROOM

SPECIAL

Events l EPIC preview l Climb of Life preview l ABC/NAOPA review

Special Issue

BREAKROOM

SPECIAL