Opi september 272 app (a)

BIG INTERVIEW

Connecting the

business products world

Raj Advani, Exertis Supplies September 2017

INSIDE THIS ISSUE Office Depot’s growth strategy l Staples bought and split l Where next for the OP sector? l Spotlight on Afflink/IS partnership l NAOPA winners revealed l Jan/san category update

Special Issue

FACILITIES SUPPLIES Special Issue

CONTENTS 16 Big Interview Keeping it simple – that’s Exertis Supplies’ philosophy 24 Hot Topic Dealer collaboration – easier said than done 42 How to... ...execute a succession plan 44 Review: ABC SP Richards urges dealers to reach their full potential 46 Review: NAOPA All the NAOPA winners up close and personal 53 Preview: Climb of Life Fundraising gets underway 55 Preview: Big Buyer Focus on Italy’s premier event for the OP industry

Special Issue

FACILITIES SUPPLIES Special Issue Big Interview: Raj Advani, Exertis Supplies

FACILITIES At a time when the industry’s wholesalers are increasingly becoming SUPPLIES

all things to all people (including end users), Exertis Supplies is doing the opposite by making a point of being a low-cost, no frills wholesale distributor. It’s a concept that appears to be working

HOT TOPIC: WHERE NEXT FOR THE OP INDUSTRY?

Special Issue

FACILITIES SUPPLIES

32 Spotlight The rise and rise of Bunzl 35 Feature ISSA’s strategic goals

37 Category Update The jan/san sector represents lucrative business, so jump on board

Special Issue

VENDOR SPECIAL

51 Review: Facilities Show Exploring the world of FM

Special Issue

VENDOR SPECIAL

REGULARS Special Issue

VENDOR SPECIAL

5 Comment 6 News

56 5 minutes with...

Keeley Shepherd 58 Final Word Renée Remijnse

September 2017

[Dealers adoption and use of technology] is not bad, but nowhere near world class. Frankly, we have not made the kind of incremental investments necessary over the years, so we find we are continually playing catch-up in an arena that changes at light speed and is critical to our future.

When I have system discussions with dealers, I try to point out that world-class ERP and e-commerce platforms are available today right off the shelf; the challenge is to adapt their business practices so they are able to take full advantage of current and future technology.

29 Spotlight A look at the renewed Afflink/IS partnership

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 Joshua Allsopp +44 (0)20 7841 2952 joshua.allsopp@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

I

New world order

recently attended SP Richards’ Advantage Business Conference in Orlando, Florida (see ABC review, page 44). The takeaways were many and varied, but two things in particular lodged in my mind – the need for collaboration (also the theme of the ABC incidentally) and the importance of the facilities supplies sector in our industry.

That’s hardly new nor is it rocket science you might argue. And you wouldn’t be wrong. But there appears to be a current urgency about both topics, brought on no doubt by the growing threat of Amazon (Business) in many markets as well as changing customer expectations in terms of how they buy, what they buy and where they buy products. Are there any resellers still out there – in the more mature markets at least – that only sell traditional office supplies now? If so, chances are they’re missing a trick.

Are there any resellers still out there [...] that only sell traditional office supplies now? If so, chances are they’re missing a trick

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

Flicking through this issue of OPI, you’ll see a range of articles covering both topics. As a Facilities Supplies issue, look out for the special sticker demarcating relevant features. One of these is about the recent Afflink/Independent Stationers partnership (page 29), another a short feature on ISSA and the cleaning assocation’s strategies and goals (page 35). Both pieces highlight my earlier point – the need for collaboration – as does indeed this month’s Hot Topic (page 24), which discusses better cooperation among all channel players to give independent dealers specifically better efficiencies of scale.

That scale is very much required in the face of the changing competition. I’ve already mentioned Amazon, of course, which sets the bar high for both price and convenience (although both, in fact, are actually often based on mere perception). UK EOS and OP wholesale distributor Exertis Supplies taps into both of these needs, while offering an alternative/ addition to its long-established, more broadline competitors (see page 16).

And talking of the competition, who would have thought that 16 months after the failed acquisition of Office Depot by Staples, the former might now after all be buying Staples’ US retail stores (see page 8)? A new world order indeed that would be.

Have a good month.

HEIKE DIECKMANN, EDITOR

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

Connecting the

business products world

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

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

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September 2017

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5

NEWS

Analysis: Staples to be carved up by new owners

Company to operate as a pure B2B delivery player as retail divisions go their own way

One rationale for Staples Inc going private was that this would allow for an acceleration of structural reforms, and this is certainly the case: documents filed with the US Securities and Exchange Commission (SEC) in August confirm that the company will be split into three independently-run businesses after it has been acquired by private equity (PE) firm Sycamore Partners.

The 10 August SEC filing states: “At closing of the merger, Staples expects to separate its United States retail business [..] and its Canadian retail business, including the staples.ca business, [...] into two separate Sycamore-affiliated entities. [...] Each will be independently managed and capitalised following the closing of the merger [...] and will be operated as independent businesses. The remaining business within Staples will consist solely of the NAD [North American Delivery] business.”

This confirmation adds weight to the theory that Office Depot will move to acquire Staples’ 1,200 US stores when the Sycamore transaction closes.

Paperwork filed with the SEC at the end of July revealed that a potential strategic buyer known as

‘Party A’ – but widely believed to be Office Depot – had been in talks with Staples from September 2016 and in June 2017 had made an offer of up to $700 million for its US retail network.

While the Staples board eventually opted for a company-wide sale, the spin-off of the US and Canadian retail divisions into separate companies appears to pave the way for Office Depot to begin talks with Sycamore once the PE firm has acquired the whole of Staples. Whether it will get the stores for $700 million is another matter: documents show that Staples was looking for up to $1 billion if it sold the US network to Party A. The longer-term future of the approximately 300 Canadian stores is less clear. Party A had initially expressed an interest in the whole of the North American retail division, later stating that it was no longer interested in the Canadian part. The only direct local competitor that has the scale to acquire this business would appear to be multichannel operator Novexco, although it might not have the necessary resources: Staples’ Canadian stores are more profitable than their US counterparts and OPI estimates an asking price of up to $1.8 billion.

There is a caveat to all of this: Staples’ shareholders still have to approve the Sycamore transaction at a special meeting taking place on 6 September 2017.

Four separate class-action lawsuits are already challenging the deal and a major shareholder reportedly told the US financial press that it would not vote in favour of the acquisition.

This [...] adds weight to the theory that Office Depot will move to acquire Staples’ 1,200 US stores Shareholders will no doubt be disgruntled at revelations in a SEC filing that the Staples board had rejected an offer from a financial buyer (‘Party B’) of $10.50 per share for the company, only to be forced to accept the $10.25 offer from Sycamore once Party B had withdrawn its interest and Sycamore was the only buyer left in the race. Therefore, shareholder approval on 6 September should not be viewed as a given.

www.opi.net

Potier talks Bruneau expansion

6

Nicolas Potier, Managing Director of French reseller JM Bruneau, has told OPI he is looking forward to growing the business under new private equity owners Equistone Partners Europe.

Equistone has entered into exclusive negotiations with Bruneau’s current owner Weinberg Capital

Partners to acquire the thriving B2B reseller.

Speaking to OPI, Potier confirmed that Bruneau’s senior management team would remain in place and continue to have a stake in the business – although he declined to say what that stake is.

It doesn’t appear that Equistone will rock the boat too much

once the transaction is finalised, and it is set to back Potier and his team in their strategic expansion plans, especially given their strong track record of growing profits over the past few years.

Potier said Bruneau would be open to all growth opportunities, including entering new markets via acquisition.

4 Nicolas Potier

Enter EOPA and give your team the recognition it deserves It’s that time of year again when we call upon the industry to enter the 2018 European Office Products Awards (EOPA). OPI will be accepting entries for the prestigious EOPA 2018 from any business supplies organisation operating in Europe.

Being shortlisted for an award – or winning it, of course – is a great way to gain the recognition your company and your team deserves.

But don’t just take our word for it. Christa Furter, CEO of last year’s Reseller of the Year award (under €100 million) winner iba, said that receiving the prize gave her team a real boost of motivation.

She added: “On the sourcing side of our company, it increased awareness and helped business relations with new and existing suppliers. Personally, it really motivated me to put a lot of energy into the future of the company.”

Meanwhile, Brother UK said that winning the EOPA Innovation of the Year award for its QL-800 two-colour label printer series confirmed it was achieving its goals. “We are extremely proud to have received recognition at a pan-European level and to share the news with our sales offices in 29 countries across Europe, as well as with our customers and channel partners.

“It has helped reinforce our brand profile with channel partners and reach an audience of nearly 600,000 through media coverage,” Brother told OPI. Eva Baumann, International Sales Manager at tesa International, which won the Product Development of the Year award for its ecoLogo Glue Stamp, said the trophy was a real honour for tesa and all its staff. She added: “We used the awards logo in our sales and communications material and have received very positive feedback from our stationery customers across Europe.”

James Webb, European Marketing Director for Fellowes (a repeated EOPA winner) said that winning these type of awards is a great way to publicise a company’s achievements. He commented: “Yes, we can measure our success by sales and profit, but the opportunity to benchmark performance against peers in the industry is almost as important.”

The next EOPA will be presented in Amsterdam, Netherlands, on 6 March 2018 as part of the OPI Partnership event.

The winners will be selected by a judging panel of top industry executives.

Entries and nominations can be made online at www.opi.net/EOPA2018 up until 26 October 2017.

THE FULL LIST OF EOPA CATEGORIES • • • • •

Product of the Year Marketing Initiative of the Year Video of the Year Reseller of the Year (over €100 million) Reseller of the Year (under €100 million)

• • • • •

Vendor of the Year Wholesaler of the Year Young Executive of the Year Professional of the Year Industry Achievement

How much the office coffee service market will grow in the US by 2020

259,000 2 59 9,,0 000

$

How much

Amazon makes in one minute

COL sells Thai B2C business COL, owner of OfficeMate in Thailand, is selling its online B2C business Cenergy Innovation to retail store owner Harng Central Department Store. The total value of the transaction is approximately THB22.72 million ($680,000).

Amazon Business US hits one million There are now over one million customers signed up to Amazon Business in the US. Having launched in April 2015, it currently boasts more than 85,000 business sellers and has expanded its customer base across healthcare, education, government and commercial organisations.

Office Depot buys Florida HQ Office Depot seems to have allayed fears that it would be abandoning its Florida headquarters after buying the building for around $132 million. The 625,000 sq ft (62,500 sq m) building in Boca Raton houses 2,000 Office Depot employees.

ADVEO signs new debt agreement European wholesaler ADVEO has signed a new debt structure with its banks. The agreement represents 97% of its debt and aims to consolidate all of its financing credit operations, short term and long term, into a single contract.

It has also concluded its workforce restructuring process in Spain, with around 90 employees remaining.

Exertis buys tech repairs group European IT wholesaler Exertis has acquired technology repairs company MTR Group to strengthen its ties with electronics giant Samsung.

Fellowes appoints European head Office supplies vendor Fellowes has appointed former Lyreco Group Marketing Director John Watson as Director of European Countries.

Kaut-Bullinger sheds more stores Germany-based office products reseller Kaut-Bullinger has closed three more of its retail locations. Part of an ongoing restructuring process, the group has shut down stores in Nuremberg, Mühldorf and Deggendorf.

September 2017

4.5%

WB Mason clashes with Dairy Queen US-based mega dealer WB Mason has caused a storm over its spring water label. Ice cream and fast food chain Dairy Queen has filed an opposition with the US Trademark Trial and Appeal Board over the use of the brand name ‘Blizzard’.

NEWS

IN BRIEF

7

NEWS

for long-tail, non-core items with these customers could have a profound impact on the office supplies contract model. This is leading to further uncertainty about the competitive position of the traditional office resellers.

Depot has also been slower than some in seriously expanding into adjacent product categories such as breakroom and facilities supplies. That said, in a regulatory US Securities and Exchange Commission (SEC) filing, the company confirmed that it has just acquired a “small” US firm that will improve its platform in the cleaning and breakroom market. Office Depot declined to reveal the identity of the acquired company to OPI, citing “competitive reasons”.

Analysis: Office Depot CEO promises aggressive growth strategy

With disappointing results in the delivery business, the focus at Depot is on retail Office Depot CEO Gerry Smith has said the reseller will be aggressive in taking both organic and inorganic steps to grow. His comments came at the end of its second quarter earnings conference call that took place as Depot missed market expectations, although Smith and his CFO Steve Hare both insisted that the company was on track to meet its full-year targets.

It reported disappointing sales performance at Depot’s Business Solutions Division (BSD), where the top line was down by 6% (about $82 million) in the quarter year on year. This was despite expectations that sales trends at the unit would begin to improve following the disruptions that occurred when Staples was trying to acquire it in 2015/2016.

Smith and Hare confirmed that the customer pipeline was, in fact, stronger than it had been before Staples announced its intention to acquire Depot, but that lower sales from existing customers in some core categories, increased competition from online players such as Amazon Business, and new customers taking longer to ramp up than previously expected had all hurt the top line. Hare referred to the declines as largely being a timing issue, so let’s see if the numbers pick up in the third quarter.

There is certainly the spectre of Amazon Business hanging over the contract arm at the moment. The extent to which Amazon Business can pick up orders

www.opi.net

OFFICE DEPOT TO ROLL OUT SAME-DAY DELIVERY

8

In a bid to compete with its online rivals, Office Depot is launching a same-day delivery service in partnership with last-mile logistics group Deliv. The service will initially be rolled out to three key locations across the US, with more added by the end of the year.

RETAIL FOCUS Since Smith came in as CEO, the signs suggest that Office Depot will commit to an omnichannel business model, with the retail stores playing a key role. This is a different strategy from Staples which is taking steps to reduce its exposure to retail and become predominantly a B2B delivery company.

There has been strong speculation recently that Office Depot will move to acquire Staples’ 1,200-strong US store network after Staples is taken over by private equity firm Sycamore Partners. Smith dodged an analyst’s question on the matter with a general comment about exploring opportunities, etc. However, his use of the word “aggressive” at the end of the call when referring to growth will do little to dispel the theory that Depot will try to acquire those 1,200 or so stores.

There are question marks over the wisdom of an aggressive retail-driven strategy, but Depot did report some positive numbers from its ‘store of the future’ (SOF) pilot stores, with improved sales versus its traditional group of stores and an “attractive” sales lift in areas such as copy and print, and tech services.

There are now 46 SOF stores in 22 US states. This number is expected to grow to 75 by the end of 2017 – although that will still only represent about 5% of the total network. One interesting development is that all of Depot’s 14 stores in Austin, Texas, will be converted to the SOF format, allowing for a full market pilot.

Other retail-focused initiatives include ship-to-store for contract customers before the end of the year and wide-format printing available in all stores during Q4.

Further growth is also expected in ‘buy online, pick up in-store’, where sales were up 30% in the second quarter versus the same quarter last year.

Still, comparable retail sales fell 6% in Q2 and the channel remains under great pressure. One cannot help feeling that betting the future of the firm on retail success is a risky strategy. Sure, acquiring the Staples network would mean another period of synergies and savings that would probably keep investors happy for three years or so, but longer term…?

ECi appoints new Distribution head ECi Software Solutions has made Brian Bowerfind President of its Distribution Division. He replaces Andrew Morgan, who announced his departure in October last year.

ACCO ready for retail consolidation Boris Elisman

Young Stationers’ winner Prima Software Managing Director Ian Buckley was awarded the Young Stationers’ Prize for the launch of the software company’s cloud-based platform, presented at the Young Stationers Annual Dinner in London, UK, in July.

Warehouse Group to focus on retail New Zealand-based Warehouse Group is to sell its financial services business to a subsidiary of SBS bank – Finance Now – for NZ$18 million (US$13.4 million).

Fellowes partners with ergonomic specialist Office supplies vendor Fellowes has taken a stake in an established UK-based ergonomics business.

The joint venture with furniture specialist Posturite will enable Fellowes to drive its offering in the well-being market. Both companies will continue to operate as separate entities.

Amazon accused of breaching Iran sanctions Amazon is under US federal investigation for possibly violating the country’s sanctions against Iran by selling goods to entities listed in the government’s terrorism list. Around $24,700 worth of goods were sold to an Iranian embassy between 2012 and June this year.

closures following the news that Staples was to go private. ACCO had been preparing for that eventuality, he added, presumably by making adjustments in various areas related to the supply and management of the office superstore (OSS) channel.

OSS store closures in the US were, in fact, one of the reasons for ACCO’s 6% comparable year-on-year sales decline in North America in the second quarter, the others being fewer sales of some commodity back-to-school (BTS) products and timing shifts in some BTS ordering which will move into the third quarter.

As expected, the acquisition of Esselte in Europe is proving to be a good move for ACCO and has helped grow both the top and bottom lines on the continent. While Esselte’s pro forma sales in Europe were flat in the second quarter, legacy ACCO sales were down significantly, mainly due to softness in the UK. Elisman said these declines were a combination of Brexit and office products industry-related issues as well as ACCO’s own execution. He added that a priority for the new leadership team in Europe was to stabilise the situation in the UK. One area it will be looking at is the independent dealer channel (IDC), and this will include a more “collaborative” approach to drive sell-through in the IDC.

Staples ANZ to rebrand Staples Australia and New Zealand (ANZ) is to rebrand following its takeover by private investment firm Platinum Equity.

The business, which was acquired from Staples Inc earlier this year, will be renamed Winc – which stands for ‘work incorporated’.

The new branding is intended to break away from traditional competitors and represent its focus beyond office products.

85

%

of microbes are transmitted by moist hands, compared with 0.06% by dry hands

68 %

of UK men do not wash theirsize hands Estimated of the US cleaning after using market* the toilet

September 2017

Independent Stationers turns 40 US dealer group Independent Stationers (IS) is celebrating its 40th anniversary.

Starting life in 1977 as Hoosier Independent Stationers, it was the first group of its kind. Today, it comprises over 400 dealers, generating around $4 billion a year in end-user sales.

ACCO Brands CEO Boris Elisman said his company is prepared for any further consolidation in the US office supplies retail channel.

Although Elisman didn’t comment specifically during its Q2 earnings conference call on the speculation that Office Depot might acquire Staples’ retail operations – which would normally lead to a massive downsizing in the number of stores – he did say that ACCO had already been expecting accelerated store

NEWS

IN BRIEF

9

NEWS

BOSS gathers Leaders of the Future

ECi snapped up by private equity firm

Rising talent from across the business supplies sector came together at the BOSS/BPIF offices in London, UK, for the first formal meeting of the Leaders of the Future Committee.

Up-and-coming industry figures gathered to decide on a list of priority areas to focus on. The aim of the committee is to help guide future events and tackle key issues important to the younger generation. These fall into four categories: networking, training and skills development, dealer engagement, and communication.

The group’s formation follows a series of well-attended BOSS events, all aimed at engaging the sector’s youngest members.

BOSS CEO Philip Lawson was also in attendance during the meeting to guide discussions and represent the pre-internet generation.

Technology provider ECi Software Solutions has been acquired by private equity firm Apax Partners. Following the transaction, ECi will be combined with the Macola, JobBOSS and MAX businesses of Exact Software, which is part of the Apax portfolio.

The current ECi senior management team, including CEO Ron Books, will continue to lead the combined company, which will remain as ECi Software Solutions, operating from its current headquarters in Fort Worth, Texas.

The transaction – for which financial details were not disclosed – is expected to be completed by the end of Q3 2017.

What has been the biggest factor in successfully growing the jan/san category?

2017

2016

14% 33%

31%

38%

24% 8%

29%

23%

Hiring product experts Sourcing the right products at the right price Greater product knowledge Customers looking for single source solutions

Resellers... what is your biggest challenge selling jan/san products?

2017

2016

5%

14.3% 14.3%

14% 45%

www.opi.net

36%

10

14.3% 57.1%

Having sufficient product knowledge Sourcing the right products at the right price Connecting with the customer’s jan/san buyer Training reps to sell jan/san

Navigator reviews Portuguese wildfire impact Widespread forest fires in June hit around 800 hectares of land controlled

by Portugal-based pulp and paper group The Navigator Company.

Although the direct impact was not significant, some of its Portuguese suppliers had been affected. However, the group said it was still too early to evaluate the long-term damage.

Following the fires, the Portuguese parliament approved a new draft legislation to prohibit new eucalyptus plantations and restrict renewal of existing ones. Navigator vehemently opposes the proposed regulation and said the new measures were devoid of any scientific, economic or environmental grounds, and could lead to an increase in the abandonment of rural properties in Portugal.

In Navigator’s managed forests, the parts burned amounted to less than 1% of the total area under its management. The group argued that this proved an organised and well-managed forest was less vulnerable to fire risk.

It added that the legislation would ultimately hit pulp manufacturers in the region which are less able to compete internationally, as they would face higher import costs for raw eucalyptus material.

Navigator was involved from the outset in fighting the fires, deploying specialist fire-fighting teams. The company and fellow forestry firm Altri have contributed €1 million ($1.2 million) to help with the recovery and are investing in the restoration of the affected areas.

Bilal Farooqui‫@ ‏‬bilalfarooqui Our D.C. office building got a security robot. It drowned itself. We were promised flying cars, instead we got suicidal robots.

Viking‫@ ‏‬viking_chat There’s been no breakdown of imagination for our creative team this month… #stationery #doodles #art #creativity Liberty Office‫@ ‏‬Liberty_OP #FlashbackFriday to Liberty Office Team & family at @SPRichards #ABC2017 Conference! Had a fun time meeting vendors & talking 2 old friends.

Follow us on Twitter @opinews

Tragic passing of Mike Ayckbourn

Amazon’s pricing practices are coming under scrutiny from the US Federal Trade Commission (FTC).

The FTC is reviewing a report by US advocacy group Consumer Watchdog as part of its wider look at the e-commerce titan’s acquisition of Whole Foods.

In a survey of 1,000 products, the watchdog found that Amazon had put its own reference prices on 46% of them. But on 61% of these, the price was higher than what it had been 90 days earlier.

The Consumer Watchdog claims that this was a misrepresentation of its pricing strategy and breached FTC regulations. Amazon has publicly denounced the report, calling it “deeply flawed”.

It is unclear whether it will lead to a formal probe by the FTC, but it could impact similar investigations by the Australian Competition and Consumer Commission (ACCC) ahead of Amazon’s direct-to-business launch in the region.

Deceptive pricing allegations certainly won’t work in Amazon’s favour with the ACCC when it starts looking into how the B2B debut would affect competition in an already heavily-consolidated market.

Meanwhile, if Amazon is found by the FTC to have breached consumer protection regulations, it could face a hefty fine akin to the €2.4 billion ($2.8 billion) penalty slapped on Google by the European Commission in June.

The study is another thorn in Amazon’s side following its proposed deal to buy Whole Foods back in June. Since the $13.7 billion offer was announced, a group of US Congressmen have called on the Department of Justice to carry out an in-depth review. The representatives highlighted the knock-on effects for low-income communities that would arise from competition pressures.

2 billion

$

589

AD

The year of the first documented use of toilet paper

Size of the disposable glove market in the US by 2022

CORRECTION

In the last issue of OPI (Spotlight, OPI July/August 2017, page 33), we wrote that Peck’s Office Plus had acquired a number of firms. Peck’s did buy AGM Office Products and Weiss Stationery, but merged with Crest Office Products/Classic Legal Supply/Skill Graphics. We apologise for any confusion caused.

September 2017

OPI was shocked and saddened to hear of the unexpected passing of Mike Ayckbourn at the age of 45. He was appointed EMEA Category Director of Staples in January 2017, after 15 years with Newell Brands.

Mike was a familiar face at OPI events and will be sorely missed. Our thoughts go out to his wife Sian and their three children, Conor, Alex and Jackson.

NEWS

FTC investigation could spell trouble for Amazon

BIRD FEED

13

BIG INTERVIEW

Keeping it

SIMPLE At a time when the industry’s wholesalers are increasingly becoming all things to all people (including end users), Exertis Supplies is doing the opposite by making a point of being a low-cost, no frills wholesale distributor. It’s a concept that appears to be working…

I

www.opi.net

t comes up at every industry event, every conference, every brainstorming and best practice session: the need to be less transactional and more service-oriented, to stand out from the crowd with a host of value-adds in order to beat – or at least keep up with – the mighty competition, most notably perhaps Amazon (Business).

UK-based Exertis Supplies, part of multibillion pound Irish sales, marketing and support services group DCC, has a very different approach. From origins as a pure EOS operator, its focus is now on shifting an ever-growing range of printer supplies, data storage media and office supplies from A to B. It does this cost-effectively and fast, but without the sales and marketing aids that the broadline wholesalers are typically offering – with all the challenges and added costs that these bring.

Six months after winning the Wholesaler of the Year accolade as part of the European Office Products Awards, OPI’s Steve Hilleard speaks to Raj Advani, Managing Director of Exertis Supplies, about the company’s business model and why it makes sense, especially given the competitive landscape in the UK market.

16

OPI: Raj, let’s kick off with a bit of career history – what’s been your chosen path in this industry and indeed beforehand?

Raj Advani: Sure. After school I did various things. To start with, I went on a computer programming course.

I passed with distinction and went for lots of interviews.

Everybody said you needed two years’ experience, but I couldn’t get the experience to get a job and I couldn’t get a job to get the experience – vicious circle.

Eventually, I decided to opt for a career in sales instead. I joined what was then consumables

wholesaler ISA – now part of VOW – in 1983 as a trainee telesales person selling Verbatim discs to the trade. I was ambitious and worked my way around various departments. When I left in 1990, I was doing all the grey sourcing for ISA and was travelling around the world looking to buy products cheaply. I felt I had progressed as far as I could in that organisation, so it was an easy decision to leave and set up Advent Data.

I started off using my contacts abroad and began with importing goods. We soon got noticed by various major print manufacturers and gained distribution agreements with many of them. Over time, we built up a good reputation and moved away from being merely importers to working as an authorised distributor in the UK. In 2010, we were approached by what was then Micro-P [part of DCC] as an acquisition target. My philosophy has always been that if I’m going to sell the business, sell it when it’s going well, don’t wait until you have tough times or health problems and you’re desperate to sell. You’re going to get a much better deal when you’re doing well.

BIG INTERVIEW Raj Advani

[DCC] don’t come in and try to asset-strip or tell you what to do. We’re doing well and they just leave us to carry on doing well and that’s good OPI: How did Advent Data/Micro-P become Exertis?

RA: We had grown rapidly both organically and as a result of strategic acquisitions across Europe over the years. But we were quite fragmented in our branding – Sharptext in Ireland; Advent Data, Tekdata and Micro-P in the UK; Comtrade and Banque Magnetique in France; Captech in the Nordics; and so on.

Vendors and customers knew all the various entities, but they didn’t know we all fell under one overall company umbrella. We thought it was important to leverage the strength of the group with the vast amount of technology that we sell into one single brand. (See ‘DCC Fast Facts’ for more details on DDC and Exertis).

September 2017

I liked the Micro-P people and the management team, and it was a very good time for us, so it was an easy decision to sell. The business turned over about £120 million ($156 million) back then, all pure EOS wholesaling. I sold Advent Data in 2011 and carried on working here.

OPI: That’s quite a long time after a buyout to be hanging in there. You’re not tempted to go and put your feet up on a beach somewhere?

RA: No. I still enjoy it. I had the option to leave after initially being tied into a three-year contract. The good thing about the parent company DCC is that they invest in you. If you’re a successful business, they don’t come in and try to asset-strip or tell you what to do. We’re doing well and they just leave us to carry on doing well and that’s good.

From my perspective, nothing has really changed.

I don’t feel any different about working for somebody now as opposed to it being my own business. And as long as I’m motivated and healthy, I’ll continue because I really do get a buzz from this industry.

17

Raj Advani BIG INTERVIEW

OPI: Advent Data was initially a pure EOS distributor. What motivated you to step out of this category and expand into office products?

RA: Well, it sort of fell into our laps because another part of DCC which at the time was called Gem Distribution – the Xbox and gaming distributors – employed a former director of Spicers.

He brought his office products experience with him and Gem’s Managing Director clearly thought the industry sounded tempting and believed there was a gap for a third wholesaler. The result was the creation of an office products division. It wasn’t why he was recruited, but it was what he ended up doing. As it turned out, they were sitting on a lot of stock and were trying to sell to our customers.

It’s important to bring in some experience and be willing to learn, but perhaps the even bigger part is to have – and spend – the cash to do it properly We already had these customers’ credit accounts open and we had the relationships, so the decision was made to move that part of the business to us.

We recruited Tim Holmes as an experienced person from the industry to head it up for us and it’s grown ever since.

OPI: I know you can’t give me headline numbers, but can you share what percentage of Exertis Supplies’ overall annual revenue now comes from traditional office supplies?

RA: It’s about 12% of Exertis Supplies sales.

www.opi.net

OPI: Is that growing at a greater rate than your EOS business?

RA: Yes, absolutely. It’s gaining a lot of traction and completely justifies the decision to integrate it into the Supplies business.

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OPI: For as long as I have been in this industry there has been talk of a convergence of the office products and the IT channels, particularly from a wholesale distribution perspective. No one has ever managed to pull that off successfully. What are you doing differently to think you will crack that nut?

RA: You’re right, many people have tried and failed.

Office products are different to EOS. The category is very SKU-intensive for a start and OP dealers are used to working in a different way to EOS dealers.

It’s the acceptance of some fundamental differences as well as a question of commitment.

That’s why we took on Tim to head up the OP division.

There are things about office products that are totally alien to us as an EOS distributor. It’s important to bring in some experience and be willing to learn, but perhaps the even bigger part is to have – and spend – the cash to do it properly. In our case it meant building a two-tier mezzanine floor to house the thousands of additional SKUs and recently extending our warehousing to cope with the growth.

OPI: What is the extent of your OP range now?

RA: Over 6,500 and growing.

OPI: Do you envisage a time when you’ll have the 20,000-30,000 SKU count of your more established competitors?

RA: If you talk purely about traditional office products – rather than facilities and other peripheral categories that we don’t stock – our range is actually fairly comparable. We probably have about 70-80% of the coverage that VOW and Spicers have and we are adding to it daily. If you just look at branded products – excluding private label – our ranges are comparable and in some cases more extensive.

OPI: You keep the same number of ‘me too’ products? That’s always been a strength as well as a weakness of the traditional wholesalers – 17 different varieties of a lever arch file.

RA: We’re a bit more selective, but we work with the vendors to choose the range rather than dictate to them. If they have a good customer base for their

OPI: You’ve just mentioned private label. We’ve seen wholesalers – in several parts of the world – increasing their private label coverage. What’s your view on that aspect of running a wholesale distribution business?

RA: We have no aspirations to become a major player in this area. If we started to get much bigger in private label I think we’d struggle to get the right amount of vendor support. Yes, we need a value option, but not at the expense of competing with our vendor partners in an aggressive manner.

OPI: Should dealers commit themselves to one main or preferred wholesaler?

RA: Preferred supplier status is interesting. If I look at the EOS business, the idea of a dealer committing to one supplier is unheard of – people switch business for a few pennies’ better margin. OP is different I realise, as the margin opportunity is bigger for the dealer, but my concern is the cost of managing such a programme. To me, this is taking the focus from growth and is an unneccesary cost.

Why, as a dealer, would I tie my hands behind my back for three years and commit to one wholesaler that, incidentally, also owns one of my biggest competitors? This is only good for the wholesaler as it restricts the dealer’s ability to negotiate terms and allows the wholesaler to dictate the margins.

OPI: Are you surprised that the two main wholesalers left the door wide open for you?

RA: I suppose not. They’ve had a kind of duopoly.

Yes, there are other niche players like Antalis selling into the trade, but there have only been two broadline wholesalers and that can breed a bit of complacency.

That said, I don’t believe they were complacent, but maybe quite inwardly-focused at the time, both with a number of challenges to deal with. It was an opportune time for us to make a move.

OPI: What’s your view on the future of independent OP resellers, particularly given the ever-growing importance of e-commerce and Amazon Business?

RA: These are challenging times and I believe there’ll be some consolidation, with unfortunately some of the smaller dealers that can’t keep up not making it. But we’re here to help them, which is why we’re coming in as a low-cost, no frills distributor.

Amazon Business, as an example, I don’t believe is going to offer the high-value, at-desk services that some customers are used to. It’s a low-cost solution.

End users might get two or three parcels for the same order because they’ll be coming from different Amazon warehouses, so they won’t be receiving the white glove treatment that some dealers are used to giving.

Perhaps dealers need to embrace a new way of working. Some will continue to offer the white glove, high level of service where they’ve got a good local

September 2017

OPI: What’s your pitch when your sales team is out there talking to prospective reseller customers?

What’s your strength versus the more traditional VOW and Spicers set-ups?

RA: We like to keep it simple. We’re not offering the extra value-add services that Spicers and VOW are.

We know many dealers want them and for those that do, they go to Spicers and VOW and use us as a second source when their main wholesaler hasn’t got the stock or if they need a better price.

But there are also many dealers now that don’t necessarily need all the extra services as they have their own offering – they just want reliable service and a fair price. And because of that lack of additional offerings, our prices are much more competitive than those of Spicers and VOW. This is especially important right now, with companies like Amazon Business, the larger resellers and even the end-user arms of the wholesalers getting so aggressive in some of the larger contracts.

Many dealers just need to obtain a better unit cost to give them a chance to compete and survive – we’re definitely getting more and more customers that are happy to take the price knowing we have good stock levels and they can rely on our great reputation for accurate and timely deliveries.

BIG INTERVIEW Raj Advani

products, we’ll take some items, try them and see if they work. If they don’t, we’ll discuss how we liquidate the stock we’ve got.

I learned a long time ago to listen to manufacturers and not prejudge a market or its preferences. The best example of this are Quadrille pads. I didn’t think they would ever sell in the UK, but they do and I’m glad we trusted the manufacturer that told us to take them on board as it’s a growing range for us.

OPI: Is there a danger in your model in that you might be picking up low-quality business? Some dealers haven’t embraced e-commerce yet, are financially struggling and are on credit hold with one of the other two wholesalers, for example.

RA: Of course, there’s always a danger we’ll get some of that but no, a lot of our customers are giving us regular repeat orders and we’re seeing some good traction. I don’t believe we’re just picking up the dregs.

The original philosophy for Gem was that we didn’t want to be anyone’s main wholesaler because we know we can’t be that – we wanted to be the back-up, like VOW would be for a Spicers dealer and vice versa.

That’s how we started when we took over the business from Gem, but we’re actually seeing that we are becoming the main supplier for some dealers because, as I said, they don’t need the extra value and outsourced services that the main wholesalers offer.

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Raj Advani BIG INTERVIEW

RA: I can’t tell you the details, but we know that another wholesaler uses MDL for a lot of deliveries in the south-east of the UK – the same region they delivered to for us. I had a phone call and some emails from the owner who was telling me he was being put under a lot of pressure by another customer to deal exclusively with them.

I’ve always had a great relationship with him and like him a lot. Although we had a contract, there were always going to be some challenges for us to increase our spend with him due to warehouse locations, etc.

I could really feel the stress, so we agreed that, with three months’ notice, we’d find an alternative solution to get products into this part of the country.

OPI: To wrap up, what does the future hold for your business and for you personally? Will you still be around in five years’ time?

RA: I hope so. The day I stop enjoying what I do will probably be the day I go. But right now there’re lots of challenges and I like those challenges. I’ve got a team of people who have been here for 20 or even 25 years, many since we started Advent Data, and it still feels very much like a family business, although we’re part of a multinational organisation.

I think Exertis and Exertis Supplies will keep growing, because we are an ambitious company and we have the backing of a parent that supports us financially, is always open to new ideas and business models, and leaves us to get on with our job – as long as we do it well!

customer base but others, if they want to compete, will opt to change their model to be a lower-cost organisation. Exertis Supplies can help by offering a fair price and allowing dealers to choose how they invest the savings. We want dealers of all sizes to survive and help them compete.

www.opi.net

OPI: But there’s so much talk about resellers needing to transition from being transactionallyoriented businesses to ones that are more service or solutions driven. How does Exertis Supplies fit into that concept?

RA: Well, it obviously costs dealers money to develop those relationships and that consultational approach.

It depends how they want to spend that money. We’re offering a low-cost product option whereby dealers can invest in their own value-added services and their own approach to the marketplace, rather than paying somebody else to provide these services for them.

It’s just a choice and what works best for each individual dealer. We do not provide those services.

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OPI: There were some rumours several months ago about Exertis Supplies buying one of the two members of the duopoly that you refer to. This was firmly dismissed, but do you foresee a need for consolidation in the wholesale community as well?

RA: Wherever those rumours started, there was certainly no truth in them. But it did raise our profile a bit, so I’m not complaining. And no, I don’t think there is a need for consolidation in the wholesaler distribution channel specifically in the UK where we’re selling OP at the moment.

Dealers have two large broadline wholesalers, us as a low-cost distributor, and some niche players.

That combination offers some good and healthy choices I believe.

OPI: On the topic of rumours: did one of your competitors cause you to lose your contract with distribution company MDL?

DCC FAST FACTS

For more exclusive content from the interview, including Raj Advani’s views on Brexit and the uncertainty it brings, visit the September issue in the Magazine section on opi.net.

Exertis Supplies is part of a considerably larger entity, namely Irish-based sales, marketing and support services group DCC. This London Stock Exchange-listed, multinational FTSE organisation finished the last financial year with sales of £12.3 billion ($15.8), up 17% from a year earlier, and operating profit of £345 million.

DCC has four main divisions: DCC LPG, DCC Retail & Oil, DCC Healthcare and DCC Technology.

Exertis is the name of DCC’s technology arm and is one of Europe’s largest and fastest growing technology distribution and specialist service providers. It ended FY2017 with revenues of £2.69 billion, which was a 10% increase on the previous year, with operating profit up 17% to £41.1 million.

Exertis can be broken down into three parts.

One is set apart somewhat from the other and is called Exertis Supply Chain Services. With facilities in Poland, China and the US, it is a leader in professional materials supply chain design and operation. The other two are Exertis Continental Europe and Exertis UK & Ireland. The latter is the biggest entity and comprises five divisions: IT (selling components, computing, print, networking servers and security products); Mobile (phones, tablets, wearable technology); Exertis Unlimited (audio products, gadgets, emerging market and creative items); Gaming (gaming, software, media, peripherals and any leisure technology); and lastly Exertis Supplies (EOS and, over the past few years, office products).

HOT TOPIC There have been calls for stakeholders to collaborate more effectively to support the independent dealer channel. Is this realistic or just wishful thinking?

– by Andy Braithwaite

www.opi.net

I

24

n the Final Word in the February 2017 edition of OPI, Mike Gentile, CEO of US dealer group Independent Stationers (IS), called for the independent dealer community (IDC) to find “a new box”, arguing that stakeholders in the channel were “competing against each other” and that meaningful progress was being hampered by an unwillingness by some to make changes as they tried to protect their own pieces of a shrinking pie.

The piece provoked quite a bit of discussion in US office product circles as the IDC continues to face structural industry challenges and formidable competitive forces. While the consensus of opinion is that the IDC does indeed need to transform, pinning people down as to what specific courses of action are required is often another matter, especially when it comes to going public for a magazine article; it’s a sensitive issue, after all, and one that involves multiple stakeholders.

One subject that regularly comes up is whether IS and fellow dealer group TriMega should merge in order to create efficiencies of scale within the IDC. “A big challenge we have is to find ways to push cost out of the industry so everyone can become more efficient,” notes TriMega President Mike Maggio.

“I think we have made great strides recently with some major initiatives which we continue to leverage: the annual EPIC conference, the EPIC Business Essentials national accounts platform and the EPIContent [product content] project.”

He continues: “The real benefit – and our biggest challenge – would be to combine the organisations to such a level that we get waste and duplication

out of the channel. Ultimately, the answer is to find a way to combine enough of our overheads so that it’s seamless to the manufacturers. That is something the manufacturers want, and the groups’ boards of directors realise that it makes sense. The challenge is taking the next step.”

CREATING SCALE This notion of coming together to create scale within the IDC is something that Barry Lane, VP of Commercial Sales at Avery in North America and the current President of the Business Solutions Association (BSA), feels is important.

“I would love to get to a place one day where independent dealers weren’t at loggerheads with each other and where collective priorities were focused on competing with the big boxes and Amazon,” he says. I’d like to take all the constituent parts [of the IDC] and put them together so it looks like a single enterprise – scale would give efficiency and allow the IDC to compete more favourably.”

Lane points to the model of hardware retail cooperative Ace Hardware as potentially a way forward for the IDC. “A branding programme that is similar to Ace could be the building block for a whole new level of success,” he suggests. “Owner operators would be the local face, but on the economics side there are efficiencies and, in addition, the consumer recognises and trusts the name.”

This idea of a national brand for independents is nothing new; there have been a few attempts over the years, most recently with the Your Business Source initiative, that have not achieved the required traction,

I would love to get to a place one day where independent dealers weren’t at loggerheads with each other CONTENT IS KING From a manufacturer’s perspective, Bob Ouellette, President of HSM America, doesn’t mince his words.

“The independent channel is in some serious trouble, there is no question about it,” he states. “The biggest problem is that the model has not evolved from tactical to strategic, and with new and emerging competitors coming in that are strategic and relying on analytics, consumer insights and market data to make decisions, the IDC continues to fall further and further behind.”

An area where Ouellette would like to see change is product assortments that are based on data which shows what the market wants and needs, but not to the extent that it handicaps the IDC. “A lot of dealers rely on wholesalers for content and this puts them at a competitive disadvantage because they don’t necessarily have the entire assortment,” he states.

HSM of America is one of the vendors piloting the EPIContent initiative and Ouellette says he is “cautiously optimistic” that this will be one of the Dave Guernsey

September 2017

DIVERSIFICATION CHALLENGES You could argue that the office products industry is already in a new box – that of wider business products distribution. Indeed, diversification into new categories and services has been a recurring theme over the past few years.

Dave Guernsey, industry visionary and CEO of his eponymous dealership, applauds the wholesalers and dealer groups for their efforts in helping dealers move into new product areas, although he questions whether they are doing – or even can do – enough.

“Don’t get me wrong, the groups are working hard,” he says. “I just don’t believe their programmes are where they need to be yet, especially in urban markets.”

Guernsey’s dealership has been offering breakroom solutions for a number of years, but is now preparing to take its offering up another notch. “The breakroom and jan/san categories have evolved far beyond the obvious offerings, and market penetration requires much more than providing a coffee service and cosmetic janitorial products,” he notes.

“This means that if dealers don’t have the balance sheet to make what amounts to a significant investment, it can be difficult for them to enter these adjacencies effectively.”

Even for larger dealers, transitioning into new categories can be a challenging process. John Givens, CEO at Colorado-based dealer Source Office & Technology, oversaw what he calls a “channel migration”, moving from the traditional office products space into commercial contract furniture, copier and printer solutions, commercial print, office coffee services and technology products.

“It was an honest-to-God struggle and required a lot of investment dollars,” he admits, after coming through a downward trend last year and back to double-digit growth in 2017.

Givens doesn’t share Gentile’s scepticism about some of the issues in the IDC. “I don’t think it’s a matter of a lack of trust,” he says, referring to Gentile’s Final Word article. “For me, it’s basic Business 101 – ‘to thine own self be true’ – everyone is scrambling to address changing customer preferences happening now and in the future. We must adapt or become extinct.”

Both Guernsey and Source have moved away from a transactional model to one based on providing solutions. “I don’t think dealers should go into an adjacency when all they are doing is shipping another box,” states Dave Guernsey. “If you are just shipping a box, you’re really in the crosshairs of Amazon; you’ve got to be doing something that has some kind of value-add for the customer.”

HOT TOPIC Where next for OP?

but dealer network AOPD’s Executive Director Mark Leazer still believes it is an idea that is worth exploring.

“The whole issue of brand awareness is something we see when bidding on accounts,” he explains, “and independents need to figure out how to make themselves better known – we have always had an issue of explaining who we are.”

Leazer says AOPD has been working on some of its own initiatives, but admits that brand building is a costly exercise. Nevertheless, he believes that coalescing around a nationally recognised brand would be beneficial to the IDC and – like Lane – refers to the success that Ace has had in the hardware category.

While dealer group consolidation may appear to be a bold move, Gentile himself does not regard it as one of his ‘new boxes’ (although he supports the idea).

“All that would mean is staying within an existing, shrinking box,” he says. “Would it help in the short term? Of course. But it is what I call MOTS – more of the same – and that is not a strategy.”

The IS CEO says real examples of new boxes for the IDC would include strategic partnerships with organisations outside the OP industry (see page 29 for details of IS’s alliance with facilities group Afflink, for example), stronger alliances with manufacturers and closer alignment with the wholesalers.

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Where next for OP? HOT TOPIC

changes that is needed. “It’s an initiative that makes a lot of sense,” he adds.

Smead is another manufacturer on the initiative.

The firm’s President Casey Avent sees it as a “first step” to overcoming the challenges of delivering the full breadth of content to the IDC and improving the whole speed to market of products, although he recognises that there are still a lot of complexities which come into play. “It can take weeks or even months before the content for a new product launch is through the dealers’ systems and available to the consumers,” he says. “There are other channels that process this [content] much faster.”

Content and data both fall into the bucket of how dealers adopt and use technology, and TriMega’s Maggio believes that “significant progress” needs to be made in this respect. “It’s not bad, but nowhere near world class,” he says. “Frankly, we have not made the kind of incremental investments necessary over the years, so we find we are continually playing catch-up in an arena that changes at light speed and is critical to our future.

“When I have system discussions with dealers, I try to point out that world-class ERP and e-commerce platforms are available today right off the shelf; the challenge is to adapt their business practices so they are able to take full advantage of current and future technology. When you consider the fact that dealers have always demanded customisation to standard ERP packages, it becomes very difficult for the software provider to keep the system up to date. The result is technology that is not adaptable enough to take advantage of advances in system design and flexibility.”

Mike Maggio “I believe the structural change that we are experiencing now is a perfect opportunity, and I feel there is renewed energy and a new level of willingness [to act] to ensure the independent dealer continues to be a viable option for the commercial office products consumer.

We are continually playing catch-up in an arena that changes at light speed and is critical to our future

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LESSONS FROM MANUFACTURERS Avery’s Lane believes independent dealers could take a leaf out the manufacturers’ recent playbooks when it comes to implementing change. “A lot of manufacturers have gone through a consolidation process and radical restructuring,” he notes. “We have challenged legacy programmes, G&A [expenses], our physical footprint and the way of doing things so that we continue to be relevant.”

Lane is also hoping that BSA – with its diversified membership – will be able to play a meaningful role in bringing about change in the industry. “Over the years, we have paid lip service to the word ‘collaboration’ and been stuck in our silos,” he states.

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Barry Lane

However, Lane and many others recognise that implementing coordinated change is a challenge and that there is no ‘silver bullet’. As AOPD’s Leazer notes: “Collaboration is very difficult. I’ve been involved in [unspecified] projects with very smart people, and those things are not active today.”

Parallels are being drawn between the situation today and the rise of the big boxes in the mid-1990s. “[Talk of] unifying the supply chain in concert with the dealers and dealer groups is not unlike what happened with BPGI,” says the organisation’s founder Dave Guernsey. However, he adds: “The IDC reacts best when the pressure is turned up, and it’s just not turned up enough at this point.”

But to use a Game of Thrones analogy, there is a sense that ‘winter is coming’ for the IDC, or at least for parts of it. The question is what shape or form will the White Walkers take? Strategic changes at one or both of the major US wholesalers, big-box retail consolidation, accelerated inroads by Amazon Business, or all three? And what will be the IDC’s dragonglass?

In the numerous interviews conducted for this article, the conversations invariably turned to the role of the wholesalers in the business products industry. And with good reason; the OP wholesalers have been key partners for the IDC down the years.

However, many of them – not just in the US, but globally – have been facing their own challenges recently, raising questions about their business models and strategic direction.

OPI will be taking a closer look at what the future might hold for the wholesale channel in our industry in one of the forthcoming issues of the magazine.

Special Issue

FACILITIES SPOTLIGHT SUPPLIES

Special Issue

FACILITIES SUPPLIES

A MEETING Special Issue

of minds

VENDOR SPECIAL Forging partnerships is increasingly the way forward in today’s expanding business supplies sector. OPI talks to two organisations – Independent Stationers and Afflink – that have done exactly that

Special Issue

U

VENDOR SPECIAL

Special Issue

VENDOR SPECIAL

S dealer group Independent Stationers (IS) has recently announced a partnership with facilities and supply chain management association Afflink.

OPI speaks to IS CEO Mike Gentile and Afflink CEO Dennis Riffer about the deal and the challenges as well as opportunities that independent dealers face in the facilities supplies and jan/san sectors.

OPI: Dennis, first up, please tell me a bit about Afflink, what it is and how it operates.

Dennis Riffer: Afflink is more than a buying group – it’s a sales and marketing organisation that focuses on ways to provide differentiation through tools and technologies which allow our stakeholders to compete in today’s competitive marketplace. It also invests in sales resources out in the field.

Our primary function is to land new end-user business for our members to grow their top line. It’s here that we have a distinct advantage and where we live out our vision of being the best in supply chain management.

We are able to offer our national accounts a comprehensive bundle of indirect supply solutions in the facilities maintenance, packaging, safety and MRO sectors, plus now – through the alliance formed with IS – OP too. We quantify the value of driving supply chain efficiencies through our consultative selling process Elevate and our distribution experts.

This gives our customers the best of both worlds – the speed and efficiencies of online ordering, single-source invoicing and one point of contact, together with the intimacy, flexibility and responsibility of local distribution on a national scale.

IS and Afflink are very likeminded organisations and we gel. We have taken our previous relationship and put it on steroids DR: As Mike says, Afflink and IS are two like-minded groups, with innovation a part of our cultures. Our shared philosophy of keeping the independent relevant has always aligned and was the impetus behind the

Mike Gentile: Creating value for both IS dealers and Afflink distributors

September 2017

OPI: What was the rationale behind this new partnership between Afflink and IS? And how does it compare to the previous alliance you had in 2009?

Mike Gentile: Market pressure and continued consolidation both in the jan/san and OP channels have created tremendous opportunities. IS and Afflink are very like-minded organisations and we gel.

We have taken our previous relationship and put it on steroids. Both organisations have come a long way since our original 2009 alliance and it made sense to create a stronger bond together and become very serious about creating indisputable value for IS dealers and Afflink distributors.

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Afflink/IS Partnership SPOTLIGHT

venture back in 2009. We understood then that the channels were blurring and that we couldn’t just sit on the sidelines and watch our fate being handed to us. We want to be the groups that lead change in our industry and our new alliance does just that.

Distributors in both organisations can now access the programmes and services each has individually developed in order to better satisfy the end customers’ needs. In the end, that’s what it boils down to – how do we keep pace with the changing buying patterns of B2B shoppers?

Dennis Riffer: Shared philosophy of keeping independent dealers relevant

OPI: In your partnership announcement, you referred to providing supply chain solutions to dealers. What are these Dennis, and how do they differ from what IS dealers are currently benefitting from?

DR: The decision-making process of today’s buyer is happening further upstream, often online and nearly always before a sales person enters the equation. In order to reach this changing mindset of the millennial buyer, we have to meet them where they are (online), provide them with relevant, non-sales content that applies to their business and consolidate purchasing across categories to drive efficiencies.

In the end, that’s what it boils down to – how do we keep pace with the changing buying patterns of B2B shoppers?

We have used this as the foundation for developing the programmes and services that we believe will be of great benefit to OP dealers looking to insulate existing business and prospect for new opportunities in the future.

It is our belief that consolidation, e-commerce and supply chain efficiencies can all be maximised with the new IS/Afflink Affiliate Membership.

www.opi.net

OPI: What are the greatest opportunities as well as challenges that independent dealers currently face specifically in the facilities and jan/san sector?

DR: Access to new lines with a better cost of goods is critical to getting into any new channel. With our alliance we have worked together to tear down – or at least lower – some of these traditional barriers of entry.

Negotiating less-than-load (LTL) options and small order quantities for jan/san, packaging, breakroom and foodservice disposables in our 19 different categories of AFFEX private label programmes will be attractive to those wanting to explore ways to enhance their bundle and increase margins. New training and education courses will also be available through our new Affiliate Membership programme.

30

OPI: Where else does the potential lie for IS dealers working with Afflink?

MG: For IS dealers it’s taking full advantage of Afflink’s sales training and certification programmes, utilising its IT solutions and creative marketing services.

DR: Our goal at Afflink is to surround the end user with the best set of solutions to run their businesses more efficiently. And any IS dealers joining our organisation don’t have to stop with jan/san, of course. They can access any of our programmes and services as they relate to other channels as well – packaging, safety, even MRO. OPI: Mike, what do you believe your members and the OP industry as a whole can learn from Afflink?

MG: The independent dealer has always been more flexible and willing to meet and exceed their customers’ changing needs.

Our mutual alliance will provide each organisation with the people, programmes and processes that will help to achieve our mission of becoming the leading industry advocate and developer of progressive buying and marketing programess for members in the workforce products market.

OPI: Afflink operates across a number on industries: how do these verticals differ and how do you adapt your offering for each of them Dennis?

DR: The OP industry, as a whole, is further down the technological road than the traditional jan/san sector. Around 88% of orders that come through the OP channel are done via e-commerce compared to only about 18% in the facilities channel. Our existing members could learn a lot from how IS dealers have had to adapt to compete with the online retailers, the challenges they faced and how they overcame them to survive and remain relevant.

As to our vertical strategy, we believe that all companies – no matter what the end-user – share a universal set of business needs: controlling costs, improving productivity, promoting a healthy workplace, maintaining a strong image, and satisfying sustainability objectives.

The difference in how we approach each vertical segment depends on how individual businesses prioritise these needs. Understanding this is paramount to developing solutions for our customers, and was truly the genesis of the Elevate process that identifies these requirements, offers solutions that parallel them, and uncovers ways to drive out costs, regardless of the vertical a business plays in.

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Special Issue Bunzl is a multibillion dollar business and, VENDOR like many firms involved in the facilities management sector, works quietly in the background SPECIAL ensuring everything from hygiene, cleaning, safety and foodservice runs smoothly for the B2B environments it serves – by Michelle Sturman

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unzl’s origins date back to 1854 when Mortiz Bunzl registered a haberdashery in Slovakia’s capital Bratislava under the name Emanuel Biach’s Ediam. Over the years it has dabbled in various industries before becoming a full-blown distribution and outsourcing business in 2005.

Today, working with a mix of own and manufacturer labels, the company brands itself as “a one-stop-shop distribution and outsourcing service across 30 countries, supplying a broad range of internationally sourced, non-food products to a variety of market sectors.”

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ACQUISITION TRAIL In 2016, Bunzl topped sales of £7.4 billion ($9.6 billion). Its acquisitive nature has played a huge part in its success which has seen the company spend over £2.5 billion on more than 135 businesses since 2004.

Last year, Bunzl paid £184 million for 12 acquisitions, with an agreement to buy two other businesses during the 2016 financial year. In 2015, the total acquisition spend was just under £390 million and so far in 2017, Bunzl has bought, or agreed to buy, ten businesses for a total of £530 million, including companies in Canada, Spain, Italy, the UK and the US. Although a Bunzl veteran, relatively new CEO Frank van Zanten says he is committed to continuing the firm’s ongoing acquisition strategy, explaining that due to its strong financial position, it’s able to act quickly when opportunities arise.

The pace of investment has intensified in recent years as Bunzl focuses on its strategy of growth through both organic means and acquisitions. It was only in 2008, for example, that the company made its first foray into Latin America with the acquisition of

Prot Cap in Brazil. A mere four years later, Bunzl had expanded its operations across the region to Chile, Peru, Argentina and Colombia.

Latin America falls under Bunzl’s ‘Rest of the World’ umbrella – which also includes China, Israel and Australia among others – where recent results have been less encouraging. However, thanks to Bunzl’s decentralised operational structure and experienced management teams, despite its colossal overall size, the group is nimble enough to shift focus quickly. This has enabled it to combat declines in Brazil due to the loss of several key contract cleaning customers, for example, by moving its São Paulo headquarters to a lower-cost location as well as reduce operating costs.

TAKING CHARGE Bunzl’s largest market is North America with almost 60% of total sales (£4.4 billion in FY2016). With over 160 locations, this market also covers Canada, Mexico and Puerto Rico. Last year, Bunzl focused on expanding its jan/san sales in the region, boosted with the opening of a warehouse in the north-east of the US for distributing the products, along with the enhancement of its central warehouse infrastructure.

In March 2017, Bunzl beefed up its outsourcing operations substantially with the purchase of Minnesota-based Diversified Distribution Systems.

The $300 million+ company is a distributor of goods (not-for-resale) and value-added services to retailers and other general distribution customers, predominantly in North America, but also Europe, the Middle East and Asia.

A quick scan over the past few years of Bunzl acquisitions reveals that jan/san purchases were particularly prolific in the Canadian market. In August last year, for example, the firm acquired Plus

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The pace of investment has intensified in recent years as Bunzl focuses on its strategy of growth through both organic means and acquisitions Across the channel in the UK & Ireland, which constitutes 15% of total Bunzl sales (£1.1 billion), the jan/san business continues to perform well in a competitive market.

Overall, the cleaning and hygiene category represents 12% of Bunzl’s business and looks poised for further growth due to a rising trend towards outsourcing, an increase in health and safety legislation, and underlying growth in the away-from-home sector.

COMING SOON...

FEATURE Meeting Of Minds

II Sanitation Supplies and Apex Sanitation Products, both of which operate in the jan/san, foodservice and industrial sectors in the country. These acquisitions and others have enabled significant category development over the past few years.

Meanwhile, Bunzl’s Continental Europe business – a region that increased 10% in constant currency in 2016 to £1.36 billion – is clearly being strengthened by sustained investment in the jan/san market. Last year’s highlights for the cleaning and hygiene sector include France where investment in e-commerce and telesales capabilities saw the category return to growth. The Belgium market grew as a result of increased business from larger customers, while in Spain the sector gained customers and benefitted from a product range extension.

...OPI’s annual Green Thinking supplement which will be published this autumn.

Featuring: - Vendor and reseller interviews - Legislative news - Supply chain best practice - CSR initiatives - Sustainable product category updates

A DIGITAL FUTURE Van Zanten is passionate about investing in the future, in particular new technology, evidenced by the continued roll-out of its state-of-the-art digital platforms across numerous markets. He is also looking to broaden a global forum initiative that enhances collaboration across the group. Established initially for its safety business, the forum brings together industry knowledge of Bunzl’s management to increase best practice across the entire organisation.

Clearly, Bunzl is not resting on its laurels and is continuously looking to expand all its business sectors as well as territories. The recent addition of Singapore-based safety products distributor LSH to the company’s portfolio, for example, will provide a base that Bunzl will use to develop its Asia operations. Indeed, both the safety and jan/san sectors have plenty of scope for further growth as not all the countries that Bunzl currently operates in carry these categories.

Foodservice 30% Grocery 26%

Cleaning & hygiene 12% Safety 11% Retail 10%

Healthcare 7% Other 4%

GREEN THINKING 2017

CONTACT

September 2017

Bunzl m ar

es) enu rev

sectors (% of 20 t 16 ke

For all editorial enquiries contact: heike.dieckmann@opi.net For all advertising enquiries contact: 33 ewan.dickson@opi.net or chris.turness@opi.net

Mission

CRITICAL C leaning industry professionals can’t fail to have noticed a constant stream of news emanating from worldwide cleaning industry association ISSA over recent months. Partnerships, mergers and new global events (see ‘Timeline of events’ below) indicate that big changes are afoot at the organisation.

OPI talks to Executive Director John Barrett about the key strategies behind the deals, the remit of ISSA today and his vision for its future.

OPI: ISSA has seen quite a rapid period of change since you joined in 2015. What have been your key areas of focus?

John Barrett: When I came on board the association was just completing an in-depth strategic planning process.

This included end-user focus groups that helped us learn exactly what our members most needed from us. It was quite revealing and made clear that ISSA needed to continually anticipate the direction of the industry, while proactively providing solutions that effectively address upcoming changes for our members.

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FEATURE

FACILITIES SUPPLIES

OPI: How do you see ISSA’s role within the industry and what benefits does it bring to your membership?

JB: As a non-profit organisation we exist solely for our members. We must be the leading resource for information, education, networking and commercial opportunities, as well as a prominent voice in government and the community for all firms within the cleaning industry worldwide.

As such, it’s vital we continue to innovate and provide services and information which create real value for cleaning professionals that members can actually use in furthering their businesses.

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VENDOR SPECIAL

OPI: 2017 seems to be a pivotal year for ISSA. What have been the main drivers behind the recent news you have announced?

JB: The work of ISSA is mission critical for human health and wellness. Our association understands the true value of cleaning and its importance to economic and social advancement – worldwide. That worldwide focus is key to the announcements we’ve made.

There is strength in numbers and ISSA is the logical organisation to unify the global cleaning industry. We will continue to do that by forming similar strategic alliances and partnerships domestically and all over the world.

TIMELINE OF EVENTS January 2017: ARCSI merges with ISSA The Association of Residential Cleaning Services International (ARCSI) in the US merges with ISSA to become its residential cleaning arm, bringing over 600 cleaning companies into its membership.

May 2017: First ISSA Expo in Australia The inaugural ISSA Cleaning & Hygiene Expo 2017 is held in Melbourne, Australia.

It is the country’s only dedicated cleaning industry event. “[This Expo] was a turning point for

Australia’s cleaning industry,” said Kim Taranto, ISSA Oceania Manager. “It was fantastic to see the industry unite again after being fragmented for so long. This is the driving force we needed to enforce change and raise the profile of what we do and stand for.”

June 2017: ISSA ups the ante in Africa and Australia The biennial CleantexPulire exhibition, organised

by ISSA, is held in Johannesburg, South Africa. This tradeshow is regarded as Africa’s

foremost event for the professional cleaning and hygiene sectors.

ISSA also announces a joint ownership agreement with e-squared Publications, producers of the African Cleaning Review, to collaboratively promote future events and expand the association’s local member benefits.

“We see this as the first of many investments we hope to make in the African cleaning industry as part of our mission to raise professionalism, increase business success, and change

the way the world views cleaning,” ISSA Executive Director John Barrett commented.

Elsewhere in the world, ISSA partners with Australia-based Specialized Cleaning and Restoration Industry Association (SCRIA).

July 2017: ISSA merges with IEHA ISSA merges with the International Executive Housekeepers Association (IEHA), a non-profit organisation devoted to helping facility managers maintain cleaner, safer and healthier buildings.

September 2017

April 2017: ISSA and CSSA join forces ISSA and the Canadian Sanitation Supply Association (CSSA) combine to form ISSA Canada, with the aim to better serve the Canadian cleaning and janitorial community.

Said Mike Nosko, ISSA Canada’s Executive Director: “ISSA Canada will invest heavily in its operations and infrastructure and we are now in a much better position to provide a broader range of benefits and services to our members.”

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The jan/san sector represents lucrative business for those that have taken the plunge, but some independent dealers are still reticent about getting involved – by David Holes

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very workplace needs to be kept clean, hygienic and safe for the sake of the employees who work there. Supplying the jan/san products needed to achieve this represents a burgeoning marketplace for companies operating in this sector. Indeed, many of the suppliers that OPI spoke to report that it’s one of their fastest-growing areas and one in which they still see plenty of scope. Those prepared to talk numbers candidly report 10-20% annual sales upswings, with a few mentioning even higher figures.

HOT-DESKING HYGIENE The prevalence of hot-desking in many companies has opened up an interesting sanitation issue that some suppliers have been quick to spot and exploit.

With employees being asked to share desk space, some are becoming concerned when their less hygiene-conscious colleagues leave workstations in a messy and potentially germ-riddled state.

“We actually picked up on this through social media chat where topics around the cleanliness and hygiene of shared desks have been generating a lot of conversations,” says Debbie Nice, Facilities

September 2017

PSYCHOLOGICAL HURDLES Yet, some independent dealers remain unwilling or unable to jump on board the jan/san train, intimidated by a sector they don’t understand.

A belief that the independent dealer community (IDC) is somehow disadvantaged is a real barrier to entry, according to Nick Lomax, VP Emerging Products & Services at US wholesaler SP Richards: “One of the most common objections you hear from IDC sales reps is that they just can’t compete against the established jan/san distributors. This belief has perpetuated for years and continues to be a psychological block to a category

Nick Lomax

that can potentially provide dealers with exponential growth. But the tools, training and guidance are all available for those that can overcome this hurdle.

“Essentially, it’s a matter of fully committing to growth, with our experience showing us that the most successful dealers are the ones that have a strong commitment to this category at the most senior levels.”

Swedish workplace supply reseller Wulff Beltton is a classic example of a business that has been getting increasingly involved in the jan/san sector and is now reaping the rewards. Managing Director Veijo Ågerfalk explains its approach: “With traditional office products declining, we have moved away from this side of the business and are concentrating more on cleaning products – a new category that has provided us with excellent growth. We now supply both office and industrial cleaning products.

“Looking to the future, we see ‘clean air’ in offices as the next important category area to concentrate on and have begun a good cooperation with Fellowes in this segment. First aid products are also a rapidly-expanding area where we have seen growth increasing by more than 10% over the past year.”

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Jan/san CATEGORY UPDATE

Supplies Category Director at UK wholesaler VOW. “This issue is now driving the use of wipes and computer cleaning products.

Cleaning and hygiene continues to be our fastest-growing category within facilities supplies and one where we’ve seen double-digit growth for the past five years.”

Julia Vorley, Group Marketing Manager at manufacturer HK Wentworth in the UK, picks up on the same theme. She comments: “On the back of the rise of the shared workspace culture, we have launched our AF hot-desk cleaning kits that contain all the desktop essentials packed into a velvet blue bag. These brand new products have hit the ground running.

“Mobile technology cleaning in general is a rapidly-expanding area as more people require simple cleaning solutions that can be trusted to work on many different surfaces. We’ve tapped into this area with our reusable and washable smart wipes and cloths – highly effective products that don’t require the addition of a cleaning solution.”

Julia Vorley

www.opi.net

When it comes to the facilities category, the IDC already has the edge with next-day delivery, advanced websites and breadth of product

38

CLEAN TRAINING Supplying potent cleaning products is one side of the coin, but educating customers in how to use them effectively is the other, according to Joe Davis, Senior Account Executive at P&G Professional: “It’s important to provide training regarding proper cleaning and disinfecting processes and procedures. The P&G Professional University is a free online industry training platform that allows anyone in the commercial cleaning industry access to training modules about products and techniques.

“For our customers turnover and retention of staff involved with jan/san is often a big topic, and this can lead to issues with the quality of workplace cleanliness. The customisable training programmes provide simplified materials in multiple languages and can help combat these potential gaps. They also offer opportunities for employees to obtain continuing education units – so-called CEUs – and we believe they are changing the way people in the industry think about training their staff.”

SP Richards has also invested in jan/san training initiatives and technology to assist its dealer reps in understanding where sales opportunities exist.

It introduced its PinPoint Facility Opportunity Finder at training roadshows this year. This is an interactive web tool that simulates a walkthrough or site survey situation in various vertical markets. It can be used either as a training programme or as a virtual presentation to customers to show where jan/ san products could be used. It suggests suitable products, backed up with descriptions, photos, training videos and safety data sheets. It also includes quote-building capabilities.

“When it comes to the facilities category, the IDC already has the edge with next-day delivery,

CHANGING TIMES As with so many other industry segments the pace of technological change has not left the jan/san sector unaffected and it’s not all good news. “It can make some products obsolete practically overnight,” says Vorley. “For example, we used to market cleaning solutions for plasma screen televisions, but they hardly exist anymore. You have to be fully aware of that within your marketing descriptions and product text – nothing dates a product more than reference to a passé technology.

“Our products must be relevant to the current market and in line with demand; anything else would be detrimental to our brand image and position.”

Nothing dates a product more than reference to a passé technology There’s also a trend towards more customised and specialty items which give dealers the opportunity to present unique items to their customers. Lomax mentioned chemical dilution control, but safety vests with personalised logos and automated external defibrillators – portable devices that try to restore a normal heart rhythm after cardiac arrest – are also in demand. These more unusual items provide opportunities to secure high-margin new business.

Subtle social shifts can be another factor. For example, sales of cleaning products are being influenced by an increasing number of millennials employing household cleaners. Recent research has revealed that four in ten individuals aged 25-34 years have now either hired, or are looking to hire, a cleaner, which is up from one third two years ago. This social change is affecting product sales.

AIR DRYERS OR HAND TOWELS? THE DEBATE GOES ON...

What’s the most hygienic way to dry your hands? Are traditional hand towels less likely to spread germs than an air dryer? It’s an argument that’s been going on for many years, but a recent study has stirred up a considerable amount of controversy and set opposing parties at each other’s throats.

The findings were published in the Journal of Applied Microbiology. Test subjects dipped their hands into a solution of bacteria and then used a variety of different hand-drying methods. The research suggested that jet air dryers, such as the Dyson Airblade, dispersed 60 times more bacteria into the air than standard warm-air dryers, and a colossal 1,300 times more than a traditional paper towel.

As you’d expect, manufacturers of hot-air dryers have come out fighting, suggesting that the test was unrealistic as the subjects wore gloves which made it easier to blow bacteria off with the air, and that the bacterial solution used was hopelessly unrepresentative of a real-life situation – teeming with around 10 million pathogens per millilitre.

However, the study’s authors stand by its findings. While admitting contamination levels were high, they say they’re entirely possible to achieve in real life if people don’t wash their hands properly. Gloves, they say, were used to minimise the risk to the test subjects and that – as they were used in all the different drying methods – the results are completely comparable showing jet dryers eject more germs into the air than using a paper towel.

But perhaps both sides are missing the point somewhat. Bacteria can only be ejected into the air if they remain on the hands after washing. So it’s ensuring thorough washing, rather than drying, that is the most important factor if you want to avoid spreading germs. Worryingly, a UK study showed that although 99% of people visiting a public toilet said they had washed their hands, recording devices revealed that only 32% of men and 64% of women actually had.

But even if you give your hands a thorough wash, wet skin is a magnet for microbes as it gives them a moist home in which to breed. As such drying is still important. Any method that does this properly is likely to be effective and it’s here where the rival supporters of paper towels and jet air dryers actually come together, collectively pointing an accusatory finger at older, warm-air dryers and singling them out as the biggest threat to hygiene. They say that because these are so inefficient, most users get bored with using them before their hands are thoroughly dry, resulting in damp hands or even a casual wipe on bacteria-riddled clothing to complete the drying process. Does that sound a familiar scenario to anybody?

September 2017

GREEN CLEANING Legislative changes are also driving the market.

With health and safety as well as environmental laws being increasingly tightened, this can have a huge influence of the demand for particular types of product. In the US, the state of California continues to lead in this area and the need for compliance with its

CATEGORY UPDATE Jan/san

advanced websites and breadth of product,” says Lomax. “PinPoint is just one more new technology that advances them to the next level.”

He adds: “The IDC is quickly getting on board with the latest technological shifts. Advances in microfibre tools, chemical dilution control, and improved towel, tissue and soap dispensing systems that are easier to use and combine higher yields with longer battery life are all now occurring.”

Additionally, feedback indicates that cleaning staff are now increasingly making use of technological developments, with scanning applications on smartphones used to help them access relevant classification, labelling and packaging safety data sheets and training documents on site.

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Jan/san CATEGORY UPDATE

ever-tougher stance here is a considerable influence on manufacturing, production, and product research and development.

Jan/san suppliers and dealers are still reporting an increase in demand for environmentally-responsible products in terms of both packaging as well as the items themselves. However, interestingly, it’s not the ‘hot topic’ it once was, with green considerations now seen more as the ‘new normal’ rather than something oddball.

“Most organisations and buyers have instigated some level of environmentally-sound practice,” says Lomax. “It’s now the standard way of doing business, but the category is very specific to an individual company. One person’s idea of being green could be to abandon the use of styrofoam cups, whereas

Green considerations [are] now seen more as the ‘new normal’ rather than something oddball

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another wants to implement a full composting programme – both environmentally-conscious choices, yet ones requiring vastly different solutions.

In the US we also see different states and regional communities taking the topic more or less seriously.

As a reseller you need to be versatile to cover all these bases.” (For more on the environmental aspects of the jan/san and breakroom category, look out for OPI’s Green Thinking supplement later this year)..

For dealers willing to track the shifting sands of social, technological and legislative change in this sector, there’s significant growth potential to be had from the facilities category at large and the jan/san segment specifically. Companies already in this business are reporting ongoing success, whereas those still sitting on the sidelines could well be missing out.

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FACILITIES SUPPLIES IN THE NEWS VOW mops up UK wholesaler VOW saw its facilities supplies (FS) sales soar 10% after investing £500,000 ($657,000) in that part of the Adrian business so far this year 2017, with the most Butler popular lines coming from the cleaning and catering categories. The money was used to recruit specialist personnel, improve marketing support for resellers, broaden its offering, and educate staff in the category.

Explaining the reasons for this new investment, VOW Managing Director Adrian Butler said: “We knew that our resellers were making purchases of FS products from providers other than us. We also realised we could help them increase revenue by supplying an enhanced level of expertise in areas such as sales and merchandising, and improve efficiency by enabling them to make multiple purchases on single orders. I’m pleased to say this decision is proving successful.”

VOW now offers over 5,000 FS products, in areas such as catering, janitorial supplies, premises management, and health and safety compliance.

Bunzl bundle In July, distribution and outsourcing group Bunzl has made a binding offer for a trio of France-based facilities businesses as part of the group’s expansion plans in a fragmented French market.

The first business, Hedis, distributes cleaning and hygiene products principally in the public, healthcare, foodservice and cleaning sectors. The other companies, Comptoir de Bretagne and Générale Collectivités, distribute light catering equipment and tableware to a similar customer base in France. In 2016, aggregate sales for the businesses was reported at €155 million ($178 million), with €131 million of that related to Hedis.

Bunzl CEO Frank van Zanten said: “The proposed purchase is an important acquisition for Bunzl, as together they will further expand our existing cleaning and hygiene operations in France and extend our business there into the catering equipment sector for the first time.” (For more information about Bunzl’s jan/san activities, see page 32).

Nordic manoeuvres European office supplies distributor OptiGroup has acquired Stadsing – a Denmark-based jan/san reseller – in July, reportedly in order to strengthen its Nordic position in the facilities management sector. Stadsing reported gross profit of approximately €12 million last year and will continue to be led by co-founders Karsten and Henrik Stadsing as joint CEOs. Spicers extends facilities supplies range Spicers has launched an extended FS range that includes 1,700 new lines and spans breakroom, jan/san and workwear products. In addition, the UK wholesaler has introduced support services to help dealers grow their FS sales, with emphasis on training to boost product knowledge and market insight.

The new range has been introduced in response to market demand, driven by new health and safety guidelines and growing demand for personal protective equipment.

HOW TO...

TAKING UP THE mantle

The third part of our How to... guide to succession planning takes a look at one US dealer that – with research, foresight and a lot of hard work – has made a success of passing the baton to the next generation

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ffice Express has been serving the business community since 1986 when the company was founded by Mike Carr. Based in the US state of Michigan, it today has a workforce of 35 staff and annual revenues of $11 million.

When Carr decided to sell the business in 2016, he had already explored a number of options, but ultimately found the perfect solution right at the heart of Office Express’ existing operation. OPI talks to Office Express’ new CEO Anna Sinagra about the succession process and some of the challenges incurred.

www.opi.net

We stayed on top of it all by being very organised and talking – a lot.

It was important – and still is – that all [...] of us were on the same page about everything

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OPI: Could you please give me an overview of the Office Express succession process? And where are you now – what has and has not changed?

Anna Sinagra: Well, on one level we just continued right where Mike left off. I’ve been working in this company for almost 15 years and with Jeff Eusebio, now co-owner and President, for nearly four. We’ve both been on the leadership team, helping to set the direction of the company and making it happen, so in the end it was really just handing over the keys.

On another level, however, different people have different personalities, priorities and ways of leading and operating, and that will necessarily change the culture and focus of a business over time.

Mike’s passion had always been sales and he

Anna Sinagra with business partner Jeff Eusebio

has stayed on with us in that role as well as remaining a key member of the leadership team.

That said, as new owners we do have a different style and new priorities. We’re much more process, efficiency and IT-focused and this has already played out in new systems we’ve rolled out in areas such as expense, project/task and customer relationship management.

The other thing that happened almost immediately when we bought Office Express in January this year, is that we pulled the trigger on a major renovation of the building which has just finished. We are very excited by this and see it as one of many keys to success in our hyper-competitive market.

OPI: Broadly speaking, what was the succession plan and process and how did you and Jeff, and indeed Mike, go about planning and executing it?

AS: SP Richards (SPR) was instrumental in our succession planning process and execution. The wholesaler came to the table in May 2016 with a valuation for the business and a plan for transition within its Guided Acquisition Program (GAP).

But in addition to working with SPR, we also needed other resources and worked with an accountant as well as an attorney to help with the process.

OPI: Were there any particular challenges and pain points?

AS: Well, there was a lot that we didn’t know. Mike Carr had been thinking about the sale for years, but for us it was all very new. There were so many areas to consider and so many details to work through, all the while doing our day-to-day jobs, and trying to keep this off the radar from everyone else.

We stayed on top of it all by being very organised and talking – a lot. It was important – and still is – that all three of us were on the same page about everything.

OPI: At what point did you tell other staff about your plans?

AS: We were working to wrap up loose ends in the closing paperwork right up until the very end, so we weren’t able to tell our staff until a few days prior to the effective date. The reaction to the announcement was very positive, which we were obviously very pleased about.

Out of all the possible outcomes for an independent dealer – being acquired by a big box, merging with another independent, simply shutting the doors, etc – our succession plan provided by far the best solution for staff. It was also interesting to hear how many people said they had already figured it out. This is partly because our leadership/management style is very open and the number of closed-door discussions we had to have over a period of six months was simply too much to go unnoticed.

OPI: How is the company positioned now and where do you wish to take it?

AS: We’re looking at new avenues of business and of course want to grow. We’re hiring new people with fresh perspectives and are super-excited about the future and the opportunities available to us.

We place a large emphasis on training and continuous improvement. This has resulted in training plans for everyone and a new sales process for our newest sales people. In addition, we expanded our furniture lines by adding new vendors, upgraded and updated our customer-facing websites, and have dramatically expanded our marketing.

Sales and margins are both up, and although neither are where we want them to be yet, we’re just getting started!

OPI: What is your view on succession planning in the dealer community in general? What would be your advice to anyone going down that route?

AS: Initiatives like SPR’s GAP open up opportunities for the independent dealer community that may not be possible otherwise. It’s a win-win-win for all parties – the wholesaler, the seller and the buyer in my opinion.

But even with a programme like SPR’s, there are still challenges in how to structure the deal, and naturally a wholesaler can only help so far because each situation is unique. What I would say is that you really have to do your homework and seek out competent advice from industry consultants and experienced advisors.

EVENT

Set YOUR ABC REVIEW

SIGHTS HIGH

T

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he message from CEO Rick Toppin in the opening General Session of SP Richards’ (SPR) Advantage Business Conference (ABC), which was held in Orlando, Florida, in mid-July, was clear: “None of us can reach the full potential of our business by working alone.”

That short statement, which is very much in tune with this month’s Hot Topic (see page 24), summed up this year’s ABC theme – collaboration.

The sentiment was also echoed by SPR’s EVP of Operations Jim O’Brien who called for better collaboration between the generations, between companies and between channel partners.

And while everybody always seems to talk about Amazon as the biggest elephant in the room, that threat shouldn’t be seen in isolation, added O’Brien. He touched on a number of issues in his opening remarks, including creating a higher value proposition with more services and expanded product ranges, and better margin management through proprietary brands and more efficiently using transactional data. “Something in our model has to change for all parts of the channel because the current model is not sustainable.”

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GREATER EXPECTATIONS Changing consumer expectations are partly to blame for that broken model and this was evident throughout the event. Referring to the disruption that is happening as a result of these changing customer expectations, Ryan Estis, the keynote speaker on the second day of the ABC, said: “Don’t just survive, but thrive,” urging the dealers to set their sights high.

His tips to reach breakthrough performance were: 1. Initiate continuous reinvention: get out of your comfort zone; offer compelling insight to your customers; customise and personalise.

2. Brand the client experience: customers do not buy on price, but if there’s no differentiation, they will default to price. Deliver a bit more than the customer expects every time. This will not just lead to satisfied but to loyal customers or, at best, brand evangelists.

3. Prepare to win: don’t just work in your business, work on your business.

4. Take action now: pick three ideas and aim to make a difference in 30 days.

Several of the themes in Estis’ high-powered address were picked up in other presentations over the course of the day. From the ‘rebirth of the sales professional’ and ‘creating a strong value proposition’, to ‘prospecting at the C-Level’, the evolving role and remit of sales people were ever present during many of the seminar sessions. So was the need to work better together generationally – millennials were a key talking point – if for no other reason than to secure the future of small businesses and the independent community.

Being tech-savvy is another ‘must’ in today’s business environment. As one of the speakers said: “Stop fighting the internet and accept that this is where your customers are.”

BROAD PRODUCT FOCUS From a product point of view, several of the growth areas were evident during the Business Solutions Expo on the first day of the event – there was a real focus on furniture as well as on the fast-growing facilities, breakroom and safety (FBS) category.

Further details of the opportunities in both these segments were given in a range of seminar sessions that were part of the FBS and Furniture tracks organised – and mostly hosted – by SPR. Many independents are just beginning to dip their toe in some of the adjacent segments, but both the Expo and the North American Office Products Awards (NAOPA) showed that innovation is rife and that plenty of revenue streams can be opened up in existing as well as new categories.

(For more information on the NAOPA winners, see page 46).

This was an ABC that acknowledged the challenges while also highlighting the opportunities. Being indispensable to your customer – whoever that may be – was the clear thread that ran through the event. Instead of merely trying to sell a product, the message was to really speak your customer’s language and become a digitally-competent trusted advisor and strategic partner.

NEXT ABC? The next Advantage Business Conference will be held in San Antonio, Texas, from 19-22 August 2018.

EVENT

NAOPA REVIEW

This year’s NAOPA winners perfectly reflect today’s business supplies industry – a fast-changing sector that is capable of reinventing the old while also having the innovative spirit to embrace the new

Best Product – Core Business Product WINNER: MMF INDUSTRIES – WHEELCHAIR ACCESSIBLE PAYMENT TERMINAL MOUNT This was a popular category with many fantastic entries for the judges to choose from. Selecting a shortlist was hard enough, picking a winner even tougher.

The Core Business Product award went to a company OPI readers are already familiar with, as it won last year’s People’s Choice award. It’s MMF Industries with its Wheelchair Accessible Payment Terminal Mount.

This product for payment terminals has an adaptable arm that can extend to a height below the counter to allow easy payment options for wheelchair users. Presented with the award, Ivelisse Gomez, Senior Product Development and Marketing Manager at MMF Industries (pictured middle), explained: “This product is addressing a problem that is constantly growing – 3.3 million Americans now use a wheelchair and the lack of accessibility at checkouts is the third highest ADA lawsuit trigger. Winning this award is fantastic for us because we want to increase awareness of these issues and avoid the amount of litigation in this area.”

www.opi.net

Best Product – Technology WINNER: BROTHER INTERNATIONAL CORPORATION – BROTHER QL-820NWB LABEL PRINTER Technology is a category that is fast-changing and wide-spanning, and this was amply reflected in a shortlist that included everything from a shredder and a calculator to a Bluetooth headset.

But the winner of this NAOPA comes from a sub-category – label printers – that is well-established already, but has the scope to reach new audiences and markets.

The award for the best technology product went to Brother International Corporation for the Brother QL-820NWB Label Printer. The judges thought this was an ultra-flexible printing solution for businesses which would offer an excellent revenue stream for resellers and become a great seller. The printer offers colour printing over the entire label and has multiple connectivity options such as Bluetooth wireless technology, Ethernet and wireless interfaces.

Rob Currie, Distribution Sales Manager of the Business Machine Group at Brother International (pictured right), commented: “We were up against some really tough competition this year which makes winning this award even more special. There are several big features in this label writer, but probably the most important one is that it can now print in red and black. This means it can be used in a more diverse range of applications.

“We’re seeing great potential for the facilities, breakroom and safety category, for example.”

46

Best Product – Facilities, Breakroom and Safety WINNER: HSM OF AMERICA – HSM PROFIPACK 425 MULTI-LAYER CARDBOARD CONVERTER/PERFORATOR As the fastest-growing product segment for many progressive dealers in our industry, it’s no surprise that the entries for the Facilities, Breakroom and Safety award category were numerous as well as hugely varied.

The winning product is in fact not a new product at all, but perhaps one that is entering the mainstream a lot more, thanks to a more focused approach.

The ProfiPack 425 Multi-Layer Cardboard Converter/ Perforator by HSM of America is a powerful device that perforates and bolsters up several layers of used cardboard into packaging material.

While it is particularly useful in all shipping and warehousing environments, this is a product that most businesses have a need for and that resellers have the opportunity to sell to their customers, according to Todd Lipson, the company’s VP of Sales & Marketing (pictured left): “The product has been around for some years, but our focus most recently has been to get it out in the wider marketplace and have more visibility in the office products industry and among the dealer community.

Winning this award is telling us that we’re heading in the right direction which is fantastic news.”

People’s Choice WINNER: ACCO BRANDS – QUARTET GLASS DRY-ERASE DESKTOP COMPUTER PAD This year’s People’s Choice award went to a company which is showing time and

really new to the market. It helps people maximise their productivity and importantly does not use too much desk space. Our intention was to solve a problem and it seems to have resonated with people which gives us great confidence.”

September 2017

again that it is eminently possible to continue to innovate in a commoditised market.

ACCO Brands’ Quartet Glass Dry-Erase Desktop Computer Pad clearly struck a chord and was the runaway winner of the award that is voted for by OPI’s North American readers and delegates at SP Richards’ ABC event. The computer pad is ideal for quickly capturing ideas and jotting down daily tasks.

Having had the chance to see and try out the product during the ABC Business Solutions Expo, dealers could clearly see its potential revenue opportunities. Receiving the award, Quartet’s Associate Product Manager Damon Holst (pictured right) said: “This is a product that we believe is

EVENT NAOPA 2017

Best Product – Furniture WINNER: SAFCO PRODUCTS – ADAPT CONFIGURABLE SPACE DIVIDERS Many entries in the Furniture category cater to the evolving workplace and the winner of this award fits right into this theme. This company is also no newcomer to the NAOPA, having won a number of times before, last with the Twixt chair in 2016.

Safco Products has done it again, convincing the NAOPA judges with another great solution to workplace challenges. The Adapt Configurable Space Dividers allow users to create endless possibilities in any space.

Lightweight and easily movable, these panels are a cost-efficient alternative to permanent walls or panel systems.

Feedback so far has been excellent, said Carrie Eidem, Senior Marketing Manager at Safco Products, when receiving the award (pictured third from left): “We’ve had some amazing interest since the product was officially launched in February of this year. Dealers see this as a very high-value solution to a problem that many employers are facing.

“In today’s open plan offices creating specific spaces, often with more privacy, is a challenge and these dividers address that very well. They can be easily set up, customised and configured, are moveable, and can also be packed away very quickly. To have that combination is quite unique and sets us apart from the competition.”

Product Innovation of the Year WINNER: KENSINGTON – VERIMARK FINGERPRINT KEY The winner of the Product Innovation of the Year award is another familiar company to OPI readers.

From a shortlist that spans a number of categories including Core Business Product, Furniture and FBS, Kensington came away as the clear winner and that is testament to its continuing innovation in a segment that is requiring ever-more sophisticated products.

Engineered to provide simple, biometric authentication, the VeriMark Fingerprint Key protects against unauthorised access to devices while offering best-in-class cyber security in a cloud-based world.

Given the importance of security in today’s connected world, the judges felt this product would be a great addition to any dealer’s range.

Says Director of Sales at Kensington, Kathrin Esposito (pictured second from left): “We’ve had great feedback to this product so far.

Protecting all the passwords that you have is a challenge for everyone and the target audience is all-encompassing. It’s early days yet, so to get that recognition from the NAOPA judges is fantastic and a real endorsement for us.”

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NAOPA 2017 EVENT www.opi.net 48

Young Executive of the Year – RYAN BOYINGTON For only the second time, a Young Executive of the Year was crowned as part of this year’s NAOPA, recognising outstanding young talent in the business supplies industry. The winner of this award was Ryan Boyington, VP Office Products Division at Storey Kenworthy.

According to CEO Dave Kenworthy who introduced the winner, Boyington is one of the best examples of young up-and-coming leaders in the company which, for the past ten years, has been working on its succession plan and nurtured talented young individuals who can lead it into a successful future.

After several years of working in a number of logistics and distribution positions, Boyington joined Storey Kenworthy about four years ago and since that time has distinguished himself

in both a sales and leadership role.

In 2015 he earned ‘sales champion’ honours while in 2016, he led the team in new business acquisition followed by an uptick in overall profit margins and new business in the first half of this year.

Outside of Storey Kenworthy, Boyington supports the industry and the community through his involvement in a number of associations and committees, several of them to do with enhancing the prospects of young professionals and helping them explore, collaborate and broaden their skill sets.

Congratulations to an individual who is already a leader in the industry and who is going to keep rising to the top!

Professional of the Year – SKIP IRELAND Steve Lynn, SP Richards’ EVP of Global Procurement, presented the second dealer award during the ABC’s Gala Evening. More than a leader in the making, the Professional of the Year award recognises a person who has already made a big impact on his/ her company and has the potential to influence the future of the channel and the industry as a whole.

Skip Ireland from Chattanooga, Tennessee-based COS Business Products and Interiors fits the bill perfectly. He became CEO and owner of the region’s largest independent OP dealer at a young age, taking over from his father Hudson. Since that time – in the mid 1980s – Ireland and his management team have navigated COS through several major business transformations and dramatically-changing times, evolving from a stocking to a nearly stockless dealer, and from one of the region’s largest Steelcase dealerships to focusing on (more profitable) mid-market furniture.

In recent years, the company embraced managed print services by buying a local copier machine and repair centre. It was also one of the first dealers to venture into the facilities category and hire a jan/san specialist.

Paying tribute to his friend and business associate, Lynn welcomed Ireland onto the stage with the following words: “For a lifetime of good decisions, business planning, teambuilding, risk-taking, commitment to community, hard knocks and leadership, Skip Ireland is a most-deserving recipient of the Professional of the Year award.” Enough said.

Industry Achievement – AL LYNDEN The final award, presented at the end of another ABC event, went to someone who embodies the very best of what makes the business supplies industry special. Introduced by Jon Rossman, President of Tacoma, Washington-based Chuckals, the winner of the Industry Achievement award was Al Lynden.

Lynden, who founded Chuckals in 1994 with his partner Chuck Hellar, has a business record that anyone would be proud of, said Rossman. He took the dealership and grew it into a thriving business with a loyal customer base, a fabulous team of hard-working industry professionals, and a record of giving back to the community and supporting worthy causes.

In addition to highlighting Lynden’s many achievements at Chuckals, Rossman paid special tribute to his high standards of business ethics and his commitment to not just growing his own business, but the independent dealer channel as a whole.

With Lynden – who recently retired – the industry is losing someone who has truly made a difference to our sector, not just through what he has done but how he has done it. Look out for the next issue of OPI for Lynden’s Final Word!

Special Issue

To FACILITIES

FACILITIES SUPPLIES

EVENT

FACILITIES SHOW REVIEW

and BEYOND O

PI took a trip down to the Facilities Show at London’s ExCel centre in June.

Running alongside a number of other management, safety and security expos, the show stretched across the vast exhibition centre with much to see.

Inventive displays and an intriguing line-up of speakers attracted over 11,000 attendees across the three days (19-21 June). According to the post-event report, 61% of these were senior or board level representatives from more than 40 countries around the world, coming to see over 300 exhibitors.

Facilities management (FM) is clearly broadening its scope and it’s no longer just about toilet rolls and tea bags. Instead, the category encompasses a vast array of needs and comforts for the modern employee. A theme which ran through the entire event was that of well-being as workplaces begin to be more centred around the health of their workforce. Products on display included office plants, sit-stand desks, healthy snacks and air purification services.

FAMILIAR FACES Alongside some lesser-known companies keen to make a splash with their innovations were some familiar OP faces that drew in the crowds. Brother UK was busy demonstrating its latest print solutions, while the Lyreco team stood out in orange hi-vis jackets as it showcased the group’s distribution network.

Amazon also had a noticeable presence, having recently launched its B2B platform Amazon Business in the UK, and with representatives looking to engage potential sellers and customers.

An integral part of this year’s event, the so-called 1-2-1 meetings, meant delegates had the chance to speak directly to some of the industry’s leading figures, while the seminars allowed for more sharing of ideas and discussions. Indeed, there was a very open atmosphere in the interactive events, with attendees and executives alike candidly voicing their thoughts on key topics such as robotics, digital disruption, productivity and new skills.

Every year, one of the most popular aspects of the show is the daily keynote address. Dame Kelly Holmes was the first to take to the main stage as part of the roster of inspirational speakers. The retired Olympic gold medallist engaged the audience with stories of her triumphs and setbacks. Immediately after, she took part in a panel debate to discuss mental well-being in the workplace. International rugby union referee Nigel Owens and Falklands War veteran Simon Weston both gave moving talks about overcoming adversity.

TV’s favourite physicist Professor Brian Cox was the keynote on the last day of the event. He seemed a little out of place as he lectured about the universe to a spellbound crowd of FM delegates. His explanation of Albert Einstein’s Theory of General Relativity echoed somewhat strangely across the hall as exhibition stands showcased protective clothing, rat poison and ergonomic desks. But while it was a bit surreal, it seemed perfectly normal for the enthralled audience.

Other highlights included a scale model office made entirely out of Lego – complete with Minifigures in various workplace calamities – and a tank of live cockroaches. The weird world of FM!

Special Issue

VENDOR THINGS WE LEARNED FROM SPECIAL THE FACILITIES SHOW

• By 2021, the FM market will be worth more than $56 billion • 55% of offices are enclosed spaces • 52% of employees believe their workspace allows them to work effectively • 70-85% of today’s office buildings will still exist in 2050 • 38% of UK workers would consider commuting by bike • There were 137 work-related fatalities in 2016 – the second-lowest on record • 50% of waste in an average rubbish bin could be composted • There are 100 billion galaxies in the observable universe

The Facilities Show will return to ExCel London from 19-21 June 2018.

September 2017

NEXT YEAR

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EVENT

Charting NEW frontiers CLIMB OF LIFE PREVIEW

I

n a couple of months, over 100 members from the UK office products industry will take on 30 of the toughest mountains in England’s Lake District as part of the 2017 Climb of Life (COL).

Why do they do that, not in glorious summer sunshine, but on 3 November and most likely in freezing cold and inhospitable wintery conditions if past years are anything to go by?

The answer is simple – to raise funds for the Institute of Cancer Research (ICR) which, in partnership with The Royal Marsden hospital, forms the largest comprehensive cancer centre in Europe. With the 2017 theme of ‘30 YEARS, 30 MOUNTAINS 4 ICR’, the figure 30 is significant in that it represents the number of years that COL has been working for charitable causes. And it was 11 years ago that COL founder, industry veteran and Chairman of the BOSS Business Supplies Charity Graeme Chapman MBE decided to donate the raised monies to the ICR.

Please sponsor OPI – more infor mation can be found at www.opi.net/ COL2017

need to raise our game even higher and focus on anticipating, outpacing and overcoming cancer evolution and treatment resistance. Our previous treatment advances have commonly delivered extra months of valuable life. Now we want to turn months into years and years into cures. But we won’t be able to achieve our goals without you, our supporters, who make possible everything we do.”

Among these supporters are once again team OPI and team EVO Group, two of the long-standing and biggest fundraisers for COL and both eager to surpass their past fundraising goals.

Chapman says: “30 years ago little acorns were planted and I had no idea back in 1987 that this event would become so big and so popular. It has evolved beyond my wildest expectations and raising money now for the ICR and its excellent work has been a real privilege. In each of the past three years, we raised over £100,000 [$129,000] which is mind-blowing.

If we manage to raise another £100,000, the total amount of donations received over the past 30 years will be £1.5 million.

“None of this could have been achieved without a fantastic team of support around me and of course the people from the industry who brave the weather every year and play a vital part in the amazing, family-friendly electric atmosphere in England’s highest mountains.”

September 2017

THE THREAT CONTINUES It’s clear to see why the ICR has become the charity of choice for COL. Chapman personally, the industry as a whole and virtually everyone you ever talk to has been affected by this cruel disease, with many lives having been irrevocably affected or indeed taken away.

The statistics continue to be sobering: in 2012, there were 14.1 million new cancer cases and 8.2 million cancer deaths worldwide. And while a huge amount of progress is being made, by 2030 the global burden is expected to grow to 21.7 million new cancer cases and 13 million cancer deaths, simply due to the growth and aging of the population.

The ICR’s current research vision is to full-on address the single biggest problem in treating cancer patients – cancer’s ability to adapt and evolve. It’s this adaptability that allows cancers to become drug resistant and stop responding to treatment.

Professor Paul Workman, the ICR’s CEO and one of the 100+ volunteers who will be guided through England’s toughest mountain terrain by ten experienced leaders, says of the ICR’s work: “We

WE NEED YOUR HELP!

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Italian JOB

EVENT

BIG BUYER PREVIEW

The

O

PI speaks to Big Buyer organisers, Epieffe President Mariella Nasi Pfeiffer and Sales Director Simonette Foini, about this year’s show.

As always, the show will also feature the ‘Made in Italy’ space, where top Italian manufacturers exhibit their stylish and high-quality school, stationery and office products.

The number of foreign buyers visiting Big Buyer is growing. About 30% of all attendees come from abroad, specifically from across continental Europe, and increasingly from the UK. MNP: And of course Big Buyer is held in Bologna, which is an opportunity to visit one of the most beautiful cities in Italy, rich in history and famous for its architecture. Show delegates also benefit from special hotel rates and low-fare rail tickets for the high-speed Frecciarossa and Italo trains.

OPI: What makes Big Buyer a must-attend event?

Mariella Nasi Pfeiffer: Big Buyer is now in its 22nd year and is among the best B2B fairs for the stationery, office, festivity and creativity sector. It combines exposure, networking and know-how, and the ability to get in touch with operators from the entire supply chain. Big Buyer features the key Italian and international companies from their respective industries, all previewing their latest products. It attracts wholesalers, manufacturers, office supplies resellers, large distribution buyers and retailers.

OPI: What is different from previous years in 2017?

Simonette Foini: The main draw is the product range. Categories such as IT, promotional goods and festive products will have an increased presence at this year’s show in response to consumer trends in the growing digital, personalisation and anniversary sectors.

These will be joined by all the usual stationery and office supplies segments that are well established at Big Buyer, such as writing instruments, paper products, archiving equipment, school supplies, and wrapping and creative items.

During the three days of the trade fair, buyers can start their preparations for the upcoming year by meeting with top-level suppliers and taking advantage of manufacturer and distributor multisectoral catalogues for planning product integration.

They can also begin scheduling orders.

Big Buyer 2017 will once again see an increase in the number of foreign companies represented – around 50% of exhibitors are now international players.

OPI: Why should foreign buyers visit Big Buyer?

SF: Big Buyer prides itself on showcasing the latest market trends which enables industry professionals to build their development strategies.

OPI: Aside from the exhibition, what other events are taking place at Big Buyer?

MNP: As in previous years, one of the most prominent events at the show will be hosted by the AIFU (the Italian association of office suppliers) and takes place on 23 November. This session will focus on e-commerce and how it is pushing businesses to evaluate alternative sales practices and generate new customer relationships.

There are a number of companies celebrating their anniversaries this year at Big Buyer, including Fellowes which will mark its centenary. In addition, the first day of the show will feature the awards ceremony for the 11th edition of the Top Design Award, showcasing the best in OP aesthetics and functionality.

MARK THE DATE Big Buyer 2017 takes place from 22-24 November in Bologna, Italy. Visit: www.bigbuyer.info

OPI: How would you describe the Italian business supplies industry?

MNP: The sector is experiencing a significant evolution. In a world where the distinction between work and leisure is becoming less pronounced, professionals – thanks to mobile devices – can work anywhere and anytime.

Even in Italy, smart working is no longer regarded as utopia, but a reality that is involving more and more employees. However, the office still retains its role as a central place for conducting business.

September 2017

OPI: What are the benefits for exhibitors?

SF: Exhibitors have the opportunity to increase their customer base and distribution channels by meeting with a wide range of qualified buyers. Big Buyer is also an unmissable event for all Italian buyers keen to find new global partners.

(l-r) Simonette Foini and Mariella Nasi Pfeiffer

OPI: How are you addressing the needs of the various distribution/reseller channels?

SF: We are creating specific marketing initiatives to involve emerging market operators, including those in the promotional, e-commerce and toy sectors, as well as non-food retailers, large specialised retailers, concept stores and bookshops.

Buyers’ feedback to date has been great and confirms how the industry is constantly looking for new opportunities to branch out.

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5 MINUTES WITH...

Keeley Shepherd CAREER Q&A

Best way to spend the weekend?

With my children, watching Sheffield United football team win, a lovely ice-cold glass of fizz in my hand and a bar of Galaxy chocolate.

Describe your current job.

As Sales Director at UK dealer group Office Friendly, my role is primarily providing sales and marketing support to our dealers to grow their business. The marketplace is changing very rapidly and it’s so important that we help our customers while developing their team members to achieve their own career goals.

Early bird or night owl?

Sometimes both, but mainly early bird.

What kind of music do you like?

Most music really. Everything from Drake and Coldplay to The Killers and Kings of Leon.

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

How can we stop world poverty?

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

British entrepreneur Sir Richard Branson.

He’s so inspiring and charismatic, and always looking for his next adventure. He also has a passion to help others.

What is the hardest thing you’ve ever had to do?

The Tough Mudder mud run and obstacle course that I undertook in 2016 with my team mate Katy Granter.

It was definitely hard, but we had such a laugh and the teamwork from beginning to end with total strangers was amazing.

www.opi.net

Your favourite place to visit in the UK and why?

Cornwall. The beaches, Kelly’s of Cornwall ice cream, Cornish cream teas, coastal walks, surfing and spending hours in the rock pools with my kids and their fishing nets.

Oh, and of course Sheffield United’s Bramall Lane football ground, the home of my favourite football team.

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What’s your most prized possession?

My children – Thomas (11) and Isabelle (7).

Your favourite gadget?

Apple TV.

The industry figure you most admire?

Brother UK Managing Director Phil Jones. I love his passion for the industry, the company and his team.

Your pet hate?

People sending an email when they can get something resolved more quickly and effectively by just picking up the phone. It’s always good to talk.

What words do you use the most?

How and why.

What’s your favourite cuisine?

Probably Italian. I’m a vegetarian with a very sweet tooth, so I always select my dessert first!

What’s your life philosophy?

Live, love and laugh. Have no regrets as life is too short.

What would you be the patron saint of?

Friendship.

What’s your ‘specialist’ subject?

Sales & marketing. In other words, getting people to spend more money!

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

Utilise the knowledge and expertise from others around you, push the boundaries and don’t just look at what’s happening in this marketplace. Change is happening all the time and everywhere – always try and maximise any opportunities to their full potential.

What do you like best about the OP industry?

The people, whether it’s suppliers, customers or colleagues. They all play a part in moving this industry forward.

At the same time you create some great relationships and gain so much knowledge that helps to achieve your own personal goals.

FINAL WORD

Special Issue

FACILITIES SUPPLIES

NEW office designs, NEW hygiene needs

A

s we see office design shifting from one-size-fits-all to solutions accommodating different needs and activities, we also need to consider how this influences employees.

Ask yourself how the office workspace has been altered over the past five years. Chances are there have been changes in layout, design, desk arrangements, meeting rooms, etc. These adjustments are affecting work routines, hygiene demands and how comfortable people feel in the office.

PEACEFUL OFFICE WITH SOCIAL INTERACTION There has been a lot of discussion about how to optimise office space, design and flexible working and I want to share some insights into how employees feel about this. Recent research undertaken by Essity’s hygiene brand Tork has uncovered some interesting findings for everyone working in the office products and facilities management industries, and even architects.

A survey of 8,000 office employees in 17 international cities showed that 65% of staff feel office space design has an impact on the atmosphere in the working environment. But what kind of office do they want? Demands seem somewhat contradictory.

Although 47% of employees say they prefer an office that encourages more social interaction, at the same time, 65% want a quieter and more peaceful working environment. So it’s wise not to go ‘overboard’ with a new layout, keep some closed offices and create ‘hidden spaces’ or silence booths. A gradual change, where employees can have some input, is likely to result in the most support.

www.opi.net

ESCAPE TO THE TOILET Open workspaces and social interactions are also creating new demands for hygiene in the office. It’s not surprising that people spend more time in the

58

office ‘rest’ areas to take a break, rehearse presentations, and talk and text on their phones – all clear signs they need some privacy. The washroom can in fact become one of these escape places from noise, colleagues and stressful situations.

Working in a flexible office myself, I’ve also noticed other hygiene issues popping up. Finding someone else’s coffee mug on ‘my’ desk makes me wonder immediately: who was it, did he/she also eat at the desk and was it cleaned afterwards?

Today’s work environment leaves people with new hygiene needs and personal hygiene standards. Essity research shows a number of examples of hygiene frustrations in the office:

Special Issue

VENDOR SPECIAL

Renée Remijnse, Communications Director, Essity Professional Hygiene

• Finding hairs from colleagues in sinks and on floors (64%) • Colleagues’ dirty or smelly clothes (63%) • Desk crumbs and stains from food (62%) • People coughing and sneezing openly (57%) • Using the same toilet as strangers (42%) CREATE AN OPEN DIALOGUE As we spend so much time in the office, an open dialogue between staff, office managers and facility managers would benefit everyone.

Cleaning routines might need to be altered to go hand in hand with office design in a much more efficient way. A first step could be a survey about cleaning routines, which would give answers to questions such as whether employees would prefer to clean their own desks, would like better washroom facilities or are even aware there is a clean desk policy.

As we shift towards sharing a more open office space, adopting solutions that enable employees to be more proactive in ensuring better office hygiene are likely to increase in demand. So take a look around your office, talk to people about their hygiene and cleaning needs, check the washrooms – and wash your hands afterwards!

Essity is a global hygiene and health company that develops, produces and sells personal care, consumer tissue and professional hygiene products and solutions. Headquartered in Stockholm, Sweden, Essity was part of SCA Group until April 2017 when it became a separately-listed company.

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