NO. 16 SUMMER 2013
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STARK BRANCHES
to get prestigious certificate
Cheapy
20
Beijer
24
is the copy-paste champion in DT Group
10
shows how to make a private brand – a preferred brand
FELIX
AWARD C A N D I D AT E
WE’RE MAKING INNOVATION A HABIT 8 HARD TALK 14 STARK DELIVERS MORE THAN SUPPLIES 26 THIS IS HOW CUSTOMERS LIKE TO SHOP
Win an
iPhone
5
e m e e k m a o T h
Inside
Trine Baadsgaard Chief Editor for DT Magazine
Ready for the Fehmarnbelt Tunnel
4 8 13
HardTalk
14
STARK delivers more than supplies only
Their commitment burned all night
STARK’s distribution service
16 20
Private Label
Our brands and new products
Cheapy is the copy-paste champion in DT Group
Putting big brothers’ muscles to good use
23 24
Cheapy is growing
26
This is how customers like to shop
How to make a private brand a preferred brand
10
Silvan takes the temperature in Næstved with a pop up shop
USEFUL NUMBERS DT Group +45 39559700 Wolseley +44 118 929 8700 Starkki +358 93 541 3000 STARK +45 89343434
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We want to be different MISSION FELIX, our new strategy, is the biggest transformation our company has ever undergone. Up until now, we have been a bit like our competitors – similar, but a little better at everything. That is no longer our aim. From this point on, we want to be different. We are moving away from a system in which each branch must be responsible for every single task. As we continue to evolve, we will benefit more and more from being part of a larger group. This is what makes our situation so unique. And thanks to all the time we save, we’ll be able to spend time where it counts: on our customers, our most important asset. These changes will demand a lot of all of us. Now is the time to think about everything we do
every day and see how these actions relate to time spent with customers. We must be more proactive in our approach, get new ideas on how to sell, follow up on existing sales, and connect with new customers. We already know our customers are very satisfied with our service and think we are doing an extraordinarily good job. This is a wonderful basis on which to build as we change and grow in years to come. Happy reading
You can write to Mads at editor@dtmagazine.dk Feel free to share your ideas and comments – both positive and critical.
COLOPHON Beijer Neumann Silvan Cheapy
+46 752411000 +47 55549800 +45 87308730 +46 431 417400
Editorial responsibility: DT Group/Mads Brejnholt Madsen Journalistic production and project management: Radical Communications/Patrick May Design and layout: Appetizer/Simon Johnsen Photography: Das Buro, Per Lundgren Print: Coolgray
DT Magazine // Strategy@work
GREEN TRUCKS are the future
STARK raised the environmental bar when presenting four hydrogen powered trucks earlier this year in its branch in Sydhaven, Copenhagen. The trucks replace the electrical powered trucks. Hydrogen is the simplest and most abundant element in the universe. What makes a hydrogen vehicle possible is a device called a fuel cell, which converts hydrogen to electricity, giving off only heat and water as byproducts. Because it’s non-polluting, hydrogen seems like the ideal fuel for the 21st century. The trucks, STILL RX 60-25 Hydrogen forklift, are popular among the drivers. The problem with the electrical powered trucks was that the drivers were uncertain about the range of their truck, especially after a new shift. The hydrogen trucks are filled up within three minutes whereas the electrical trucks had to recharge for eight hours.
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Ready for the
Fehmarnbelt
TUNNEL 4 STARK branches to get prestigious certificate
Anything worth doing, is worth doing right. This is what four STARK branches on Lolland Falster must have thought when management in Fehmarnbelt Development told them that safety is a top priority. Also when choosing suppliers. STARK reacted promptly and initiated certification within safety management. And STARK would not be STARK, if they would not target for the industries absolutely most prestigious certificate available: the OHSAS 18001.
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DT Magazine // Safety
“THE FEHMARNBELT TUNNEL, connecting Germany (Fehmarn) with Denmark (Lolland), is the largest construction project of its kind in Denmark”, Anders Østergaard, Branch manager in STARK Nykøbning Falster, explains. “With four branches on Lolland Falster, we are well positioned to supply to the construction site. To find out what requirements the development consortium overlooking the construction defined for suppliers, we contacted the management of Fehmarnbelt Development. They told us they prioritize ‘just in time delivery’, language and ... safety.” Denmark has a tedious statistic when it comes to safety in relation to large construction projects. 7 people died while working
on the Storebælts bridge (connecting Fyn and Jylland) and there were 3 casualties during the construction of the Øresunds bridge (connecting Denmark and Sweden). The ambition for the Fehmarnbelt tunnel is zero casualties. “Safety is a major priority”, says Anders. “If we want to be considered as a supplier, we have to document that we comply to strict safety standards. You need a certificate to do so. We decided that if we were to put energy in this, we might as well go for the best standard there is.”
Taking safety to a new level
According to Laila Therkildsen, Health & Safety manager in DT Group, it can’t possibly get any better than the OHSAS 18001. “It’s an inter-
Henrik Staffe
Anders Østergaar d
We decided that if we were to put energy in this, we might as well go for the best standard there is
OHSAS: what is? OHSAS stands for Occupational Health and Safety Auditing System. The OHSAS 18001 standard is internationally accepted as a method of assessing and auditing occupational health and safety management systems. Developed by leading trade and international standards bodies, it provides a framework for organizations to instigate proper and effective management of health & safety in the workplace.
nationally accepted standard, referred to as the smiley with the crown on top”, she says. “STARK, to my knowledge, is the first Danish retailer who managed to get the certificate.” Also within DT Group, the four STARK branches are first movers. “STARK has its own internal safety program, but the branches on Lolland Falster are the first ones to actually obtain an officially approved certificate”, says Laila. “They are the pilot to set the example on how to do this. We are planning to get all branches to an equal level – ready to be certified, within the next five years.” Jesper Jensen is responsible for safety in STARK Nakskov. He warns branches that will go through
the same process to get prepared for some hard work. “It took us over a year of massive planning, describing what we want to achieve, formulate objectives and policies, identify strengths, weaknesses and improvement points, act upon the weaknesses and improvements and, finally, reach the OHSAS standard.” The branches in Nakskov, Nykøbning, Maribo and Nysted share ONE certificate. “All four have to live up to the requirements to get and keep the certificate”, says Henrik Staffe from STARK Nykøbning.
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Continued “We didn’t start at the same level so some branches had to work harder to make the safety adjustments. Here in Nykøbning according to STARK’s own system, we were a level 4 branch. We had to resolve quite some issues to qualify for the certificate. We for example had to replace a significant part of our furniture because it did not live up to safety standards. STARK Maribo on the other hand, is a relatively new branch with a level 1 status. The changes they had to make to comply to the OHSAS standard were limited.”
A safe working environment is in everyones interest
“It’s important to have support from staff from the very beginning”, says An-
Meet your local safety representatives Norway, covering the Bergen area
Bente Fjeld, HR manager, responsible for national Norwegian HS legislation
Northern Norway and Southern Sweden, except Skåne
Mats Jonasson, HS BP, responsible for national Swedish HS legislation
Mid Sweden
Pierre Lawestig, HS BP
Finland
Helena Näykki, HSE BP, responsible for national Finish HS legislation
Denmark, mainly Copenhagen area
Isabel Kouyoumdjian, HSE BP, responsible for national Danish HS legislation
Denmark, eastern Denmark and Skåne Knud Jensen (KV), HSE BP
Denmark, western Denmark and South of Norway Harry Jensen (HJ), HSE BP
According to Jesper, safety is a life style
ders. “You can replace furniture, relocate heavy products, mark up outside areas but at the end of the day, the real changes have to
come from within the organization, from staff.” According to Jesper, safety is a life style. “It is important that everybody has the same
perspective. To accomplish this, everyone had a two days safety training, some colleagues even got a five days edition. Working intensively with safety, the way we have done in the past year, changes perspectives. Safety has become a habit, for all of us.” The motive to work towards the OHSAS safety standard is the Fehmarnbelt connection. “It’s too early to tell whether this plan worked”, says Anders. “But we can see so many benefits already. In the beginning, when we were introduced to the requirements we had to live up to, we had a hard time imagining that we would ever reach our goal. But we did. We got our certification
Shave your travel time with 35 minutes Today, if you want to travel from Sjælland to Germany, you need a ferry. The sailing time from Rødby (DK) to Puttgarden (GE) is 45 minutes (the distance is 18,9 km). A tunnel for cars and trains will reduce travel time for passengers by car with 35 minutes, and with 38 minutes for travelers by train. If you add waiting time (there’s a ferry leaving every 30 minutes) you could even end up saving more than an hour! In spite of the reduction in traveling and waiting time, ferry operator Scandic Lines remains optimistic about the future of the sea passage. Truck drivers, they expect, will continue to use the ferry, as it allows them to take their obligatory break during their tour.
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DT Magazine // Safety
Key areas
that will be assessed by OHSAS certification: Management systems in place Planning and risk assessment Staff training and awareness Communication of safety management systems
Jesper Jensen
in January this year. We of course invited the decision makers from Fehmarnbelt Development. I was a very proud man that day. I still am.” “The certification makes a difference”, says Henrik. “It forces us to manage a tight, clean and save branch. We have a so called KPI board (see picture) that we use to monitor safety in the branch. Once a week, the entire place is inspected - based upon a 40 points checklist. Safety issues, are being reported on the KPI board. The responsibility for the inspection and the board shifts every week. Safety is everyones responsibility.”
Customers notice it too
Like Anders said, the benefits are manyfold. “We are more
effective”, Henrik explains: “Everything is systemized and we no longer use a lot of time to relocate stuff. There are no loose cables on the floor, there are no heavy pallets in the middle of the drive way, stuff is being put where it belongs. The outside area is safety marked and staff wears reflective vests when going outside. Our everyday has become easier and safer. It’s a real bliss to come to work and witness everything is neat and tidy.”
Response to emergency situations Monitoring and continual improvement
Customers notice it too. “Several customers have come up to me and asked me about the vests”, says Henrik. “I happily explain. I am feeling proud that STARK is doing this.” “It’s an investment”, says Anders. “But when I look at the branch here, and listen to staff and customers, I think it has been worth it. I am sure that it will also have an effect on the bottom line. Not only because there’s focus on lean, systems and the effi-
Several customers have come up to me and asked me about the vests
Est.
Fehmarnbelt tunnel: world’s longest
5,4 €
billion
With a length of 17.6 km the Fehmarnbelt Tunnel will be the longest combined rail and road tunnel. It will be five times the length of the Øresund tunnel and three times the length of the Trans-Bay Tube Bart Tunnel in San Francisco, which is currently the world’s longest immersed tunnel.
ciency improvement saves money, but also because I believe that we will be able to use it as a competitive advantage and win business. Safety increasingly is an issue. For projects initiated by the government. But also for our professional customers, the larger as well as the smaller ones. It is said that for every Euro you invest in safety, you get two Euros in return.” “It’s a tool for continuous improvement and effectivity”, says Henrik. “We’re getting busy now and when things go fast, well, you prioritize helping customers instead of putting stuff back where it belongs. That’s why it’s crucial that we keep a tight focus on our KPI board and the other tools we got to manage safety.”
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Hard
Talk with
Ole Mikael Jensen
In an enterprise with more than 6,300 employees and 260 branches, the top management may seem very distant. With HardTalk, you get close to top management, because here we put you in contact with DT Group’s most senior manager. Ole Mikael answers you and your colleagues questions, however searching they are.
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What is Mission Felix?
Mission Felix is a brand new strategic plan based on everything we have accomplished over the last 10 years of consistent work; this includes establishing chains, reaping synergies, and, most recently, establishing regions in all Business Units. Our old plan has been fully executed and the market and technology has changed. Therefore, it is time to take the next step in our progress.
Mission Felix is a sales project. We are in a fantastic situation in that our business model is different from our competitors’; though on a branch level, we still look a lot like our competitors. Our aim is to change that and simplify our process. Mission Felix allows us do things that our competitors can’t—namely, minimize all procedures that do not directly relate to sales. It has become obvious to us that not all of our 260 branches should be
DT Magazine // HardTalk
answering phones, bookkeeping, drawing up offers, and making deliveries. Our business has the size and the muscle to consolidate tasks that are not directly related to sales in a specialized way.
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Why is it called Mission Felix?
The name refers to Felix Baumgartner who last year jumped 39 kilometers from the stratosphere in a free fall. What was interesting to us is that Felix Baumgartner teamed up with Joe Kittinger, who held the 1960 record of 31 kilometers. Their teamwork is a symbol of the fact that the future must build on the past. Felix Baumgartner set the record, but he couldn’t have done it without Joe Kittinger, his experience and, not least, a ground crew of specialists who knew what they were doing. Old knowledge, new technology and a team of specialists are also our recipe for success.
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How will Mission Felix affect my work?
Mission Felix will af-
fect every single one of us in the years to come. In everything we do, we have to constantly ask ourselves how our actions will affect sales. Take me for example: When I write an email to 7.000 employees, I must be absolutely sure of its importance, because time spent reading it is time spent away from the customer. Over the next three years, we will gradually reduce the number of simple activities taking place at the branches and create new procedures to increase time with customers. The biggest challenge is to convert time saved into time spent on sales. Today, about 40% of employees’ time in the branches is spent on customers. We will increase this number by 50% over the next three years, to 60%. In our new plan, we refer to this initiative as F60.
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What will change?
We already know that our customers are very satisfied with us and we are exceptionally good at what we do. But we have to make efforts
to make more proactive sales, get new ideas and follow up on past sales and existing customers in a structured way. We are also going to enrich our existing workforce with new types of employees. Moving forward, we will make every effort to recruit people who really enjoy and are good at sales—personally, I know that I am not that good at this. Each of us must take a realistic look at ourselves. If you are not comfortable with sales there are many other functions to fill on a more specialized level. No matter what, sales will be a very important aspect for most employees, including our leaders. We will of course provide relevant education and training.
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Why will we be better than our competitors?
First, we benefit from having a big group, Wolseley, behind us. We don’t have to do everything at each branch; instead, tasks can be solved on the optimal level. In example, strategically, we have made the smart move to keep
servers in Cincinnati, thus cutting costs and raising efficiency. We should be proud that we have business units that deliver complete marketing materials, proud that many administrative duties are handled by others, and proud that we can buy big in bulk on a Nordic level and get the lowest price.
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Do you think this plan will succeed?
The fantastic thing about Mission Felix is that it frees us to spend more time with our customers. That’s the fun part and, ultimately, why we are here. We are moving away from the old way of thinking that each branch must do everything independently, and have realized it is advantageous to streamline and centralise these tasks. And of course we will succeed—we have every advantage because we are part of something bigger. With the increases sales focus, we will grow by gaining significant market share.
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h Asger Buecn s Søren
FELIX
AWARD C A N D I D AT E
Silvan takes the temperature in NĂŚstved with a
When management in February this year presented the new strategy, Felix, they also introduced the Felix competition and the Felix award. The competition is meant to stimulate, identify and execute innovative ideas. In all, there have been 50 exciting entries from all divisions - competing for the award. The jury has chosen 16 ideas that currently are being executed. Silvan Garden, is one of these ideas. 10
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POP UP SHOP
APPROVED
SPIRIT
DT Magazine // Mission Felix
EARLIER this year (in May), Silvan tried something new, something bold. They opened not a regular Silvan, but a so called ‘Silvan Garden’: a short term store, selling ‘everything garden’ - from furniture and fertilizer to plants and grills. In Næstved, at a 45 km distance from the nearest Silvan store. But more or less in the backyard of three of Silvan’s fiercest competitors. The shop
just appeared all of the sudden - giving the competition no chance to react. But they all visited the store to see with their own eyes what Denmark’s leading DIY retailer is up to. Considering the positive reactions from customers, Silvan Garden could be a serious contender to win the Felix Award competition. The concept of pop-up shops, or flash retail as it also is called, is not new. It’s popular in countries like the US and the UK, where retailers use temporary sales spaces to sell a narrow selection of their assortment. Normally, these shops take time planning. However, if you in April get the idea to sell garden products, you’re in a hurry to make the season.
Up and running within three weeks
thing that kept René and his colleagues awake at night though. “This was a fantastic challenge. When we open a regular Silvan, we have about a year to plan. This deadline forced both me but also the colleagues from logistics and in-store, to seriously think differently. Where available, we set up outlet material from our suppliers, the rest we solved with pallets and the like - to make the deadline but also to stay within budget.” “An element that made it even more exciting is the fact that we use the Silvan brand for the pop up shop”, says René. “If we put our logo on top of something, customers have certain expectations towards
If we put our logo on top of something, customers have certain expectations towards the look and feel, quality, service and products
the look and feel, quality, service and products.” And customers there have been from day one, from the very opening in May this year. “Customer reactions are immensely positive”, says Asger Buch Sørensen, the shop manager. “The nearest by Silvan is in Slagelse, 45 km away. The rumor that Silvan had come to Næstved, spread fast. Not necessarily with the garden addition though, so we also welcomed customers who actually were disappointed to find out that we focused on garden products and did not have our regular assortment. We solved this by ordering what they needed from Silvan Slagelse, so they could pick it up here later. But the
More on next page
“We had three, maybe three and a half, weeks to get the shop up and running”, says René Hald Kristensen, project leader interior design. “On top of that, we had a limited budget and, don’t forget, we have never tried anything the like”. Not someDT MAGAZINE
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Continued majority of the visitors is very happy with our presence here.”
Locals love our service
What impresses customers most is the service level. “It’s obvious that we in Silvan have a different approach towards service and that our competitors have difficulties following”, says Asger. “We help customers to find what they need, we help them lifting heavy stuff in their cars and trailers, we take our time to make sure the customer leaves with everything that he or she needs to turn their garden project into a success. A lot of this of course comes through training and focusing on customer service. But it also requires that the staff working here, has the right attitude.” Just like René, Asger was under time pressure to get everything ready for the shop to open too. For example finding staff. “We’re five, including myself. Two full timers, three part timers”, Asger says. “Varying in age, the youngest is 19 and the eldest is 58, but all with a positive and extrovert attitude. Custom12
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But it also requires that the staff working here, has the right attitude
ers that come get a royal treat - they can’t get that anywhere else. According to plans, we’re closing the shop in September. But not a day goes by without customers asking us whether we will open a regular Silvan in Næstved anytime soon.” “This”, Silvan’s managing director Freddy Lauridsen says, “is one of the main objec-
tives of our pop up shop . We learn a lot about the local market in Næstved. We might very well end up opening a regular Silvan here. What is equally important is that we steal business away from our competitors. We have more locations on our list and we’re also analyzing the possibility for a winter pop up concept. What makes me extreme proud is that we got this up and running in no time.
This shows our competitors what we’re made of in Silvan.” “Being a part of this, has been quite hard on family and friends”, says Asger. “Especially because we got a little one, in November last year. However, I wouldn’t wanna miss this opportunity for the world. We got back up and support from the entire organization. We’re doing stuff nobody else is doing. This is what makes my job exciting”.
In the spirit of Felix
O
rdinary people have an ability to do extra ordinary things. Austrian Felix Baumgartner (44) proved this when he last year October set the world record for sky diving: 36,4 km. Baumgartner took a leap into the stratosphere and reached an estimated speed of 1.357 km/h. He’s the first person EVER to break the sound barrier (without the protection of a vessel), opening up for entire new possibilities for the aerospace industry. With his jump, the real jump took 9 minutes and 18 seconds only, he blew eight official world records to smithereens. Dare devil Baumgarten isn’t a complete stranger in the Nordics either: in 2006 he jumped with a parachute from Turning Torso in Malmø. Turning Torso, with its 190 meters, is Europes’ second highest apartment building! Baumgartner does things which other people believe are impossible. His passion to push the envelope, inspired DT Groups’ management to name the innovation award after him: the Felix award. This of course, with the expectation that the spirit of Felix Baumgartner will rub of on our ability to create extra ordinary service for our customers. If you would like to see the jaw dropping jump, go to: www.redbullstratos.com
New building APPROVED
After the fire
SPIRIT
THEIR COMMITMENT burned all night
About a year ago, a fire erupted in Beijer Örnsköldsvik in Sweden. Not for a single moment did regional manager Franz Öberg consider closing down the store. He and his team worked through the night, while the firemen put out the fire. WE’RE HERE to ensure that our costumers can get what they need for their projects. The fact that we can deliver gives us trust and credibility. Few take this mission as literally as Franz Öberg and his staff. It was late in the afternoon in June 2012 when Öberg got a call that “Beijer is on fire”. “When I saw the dense black smoke, I realized, ‘This is serious,’” Franz Öberg recalls.
The fire department was called and soon after that, Franz Öberg and his colleagues began concentrating on getting the store open in time for the next morning. “I know we have customers arriving at seven in the morning and I also know that, if they cannot get what they need, we let them down,” he says.
The hardest part was that staff had to shift their attitudes from complete resignation to “full speed ahead” in order to get things ready for the next day. With help from nearby sawmill Höglandssågen—which stayed open all night—and from people at the local contractor Bredbyschakt, Bei-
Limiting the damage The insurance company praised Beijers pro active approach. “What makes the Örnsköldsvik case different, was the way the business responded”, says Alistair Whiteside, director of the loss adjuster firm Vericlaim. “Local management adopted a positive attitude to putting in place the essential ingredients to minimise the impact of the fire to the business and to customers.”
Franz Öberg
jer succeeded in getting timber and machines to replace what was lost in the fire. “As soon as the firemen told us there was no risk of the fire spreading, we just worked and worked, made phone calls, solved problems, found solutions,” he says. “The people who work here were absolutely fantastic. They’re the main reason this was solved,” Öberg says. The next morning Beijer had a full inventory and was fully operative. Beijer did not close down the branch for a single day, and what happened afterwards Öberg calls nearly impossible. ”Our goal had been to build a new branch in a record five months. And we kept to it with the exception of a a few days.” DT MAGAZINE
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STARK delivers
more than supplies only What you don’t measure, you don’t manage. But to be able to measure, you need data. This is what STARK’s new service is all about: providing customers with relevant and reliable data about deliveries. This makes STARK’s distribution service as transparent as water, while at the same time allowing customers to identify potential issues to improve their workflow. This, especially for large and medium sized customers, is a huge step forward. It puts STARK, once again, in a league of their own. 14
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“THE ESSENCE is simple”, says Henrik Lindstrøm, STARK’s logistics director. “We give our customers on line access to what we delivered, where, and at what time. We can for example tell them what sites get a lot of deliveries - which might indicate that there’s a potential for working more efficient. We can also tell them exactly what products we have delivered, and how large a percentage we might have missed. This is a major step forward in our service to customers.”
DT Magazine // Logistics
We are their warehouse
The fundament enabling this service, has been available for some time. The big challenge has been, to get the various systems to ‘talk together’ and get the data in a format so it can be used across multiple platforms. “We use our ordering system, our GPS system and PDA’s, where we register the status of deliveries”, says Lars Bo Christensen, logistic manager in STARK Odense. “When I started at STARK 25 years ago, we used hand written notes. Now everything is electronic.” There’s another significant difference. “Our customers do no longer order large volumes. They rely on our stock and delivery service. This
When you order something on line, they are able to tell you exactly when your goods arrive
of course, requires that we manage our logistics to perfection.” “In Odense we have been using this system for internal purposes over the past two years”, says Lars. “It helps us planning deliveries more accurately. Every step of the process, from the moment we get the order in until the goods are delivered, is registered and accounted for. When a customer calls, we can provide an accurate status of his order. On top of that, our GPS system is linked to the drivers PDA. This enables the system to send an SMS to the customer once the truck is within ten minutes from its final desti-
nation. This allows them to prepare for the arrival of their supplies.”
This will be a game changer
Drivers take pictures of the delivery - to avoid potential disputes later for example about the quality of the delivery. “If a customer reports damaged goods, we enter the system and we can check on the pictures how the driver left the goods at the time of delivery”, says Lars. “Our customers work with deadlines and we’re here to help them keeping their deadline where we can. For example by making sure we deliver exactly where they want us to deliver.” “I’m happy the value of this system is self explaining”, says Henrik. “That makes
it easier to ‘sell’ it to the branches. As said, now we make the data we collect available on a website. Here customers can get all information they want about our deliveries to them. We started testing this with Huskompagniet one of our largest customers. This has resulted in a better flow and increased efficiency to large satisfaction for both parties.” For Henrik this, without a shadow of doubt, will become the new standard. “We get a deeper understanding of the individual working processes of our customers, which makes us better sparring partners. When you order something on line, they are able to tell you exactly when your goods arrive or you get access to a site where you can track and trace your delivery. Now this is a reality for our customer as well. And since none of our competitors is able to do this, we have a huge advantage here.” And the next step? “Hand scanners”, says Lars. “Making it even easier for us to register all deliveries and where in the process they are.” DT MAGAZINE
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TE A V I PR EL
LAB
E T A V I R P EL
B A L
rt an important pa Private Label is d these pages an of our strategy w insight into ne will give you an you inspiration ve gi d an ns tio addi owledge about and in-depth kn products we sell l be La te the Priva
e continuing in our stores. Th ese products th of t en m lop deve lps ensure a and brands he y in the group. healthy econom d brands may an es ng Product ra ion to division. vary from divis
Stuart
Brand Man Kilpatrick ager, DT Gro up
to n o i t c e Corr
BRAND STRATEGY
ONE OF THE reasons for concentrating on only our 12 Private Label brands is that it is easier to build customer recog-
nition into fewer brands. Also, as an example, if a customer has a good experience with one RAW product, they may be more open to buying a
different RAW product next time the need arises – this is helped by having a large range of products in each brand. This way the brand adds value to
Brand change in STARK Existing Brand:
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Change to Brand:
the products we sell as Private Label. Needless to say, we have to protect our PL brands so the quality is consistent but our competent Product Managers have been good at doing this. The result is that our Private Label brands are becoming well known and accepted by our customers and staff, who also come to expect a certain quality from PL banded products. Until now, Stark has used 3 PL brands that were not a part of our overall strategy. These brands are Flooring, Fjordal and Next Step, mostly used for wooden flooring. In order to align their brands to the rest of DT Group and also to gain
DT Magazine // Private Label
volume and synergies, Stark is now converting these brands to Center and RAW, with Next Step being elevated to a DT Group brand for very high quality hardwood flooring, decking and other hardwood products aimed at tradesmen and professional customers. This means that in the future, the PL brands in Stark will
change as shown on the diagram. The conversion will take place as new orders are placed. This also means, with the addition of Next Step to our brand strategy, that we now have 13 PL brands – let’s all work to prove that it is not an unlucky number! Here you can see a list of all our PL brands, including the new Next Step.
PRODUCTS
DT Group bel Private La: Brands
RAW Composite decking at index 212!
SOLID GREAT NEWS: Product Manager Kristian Fribo at Stark reports that our RAW composite decking is selling at index 212 compared to last year! Next year the plan is to expand this success to other business units in the Nordic region.
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TE A V I PR EL
LAB
T A V I R P
E B LA
RAW wooden ceilings
STARK has recently introduced RAW wooden ceilings from Norrlands Tr채 in Sweden. The ceilings come in 3 qualities: Premium (8% moisture), Select (12% moisture) and Classic (16% moisture). The ceilings are all treated with paint or lacquer and are ready to install. Indoor moisture or humidity in the Nordic re-
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gion is about 8% and any wood installed indoors will naturally through time also achieve 8% moisture content. So needless to say, you get the best result if you use our Premium ceilings which are kiln-dried to 8%. Our Classic ceilings (16%) are presently the most sold quality in Denmark but the higher moisture content will re-
sult in the wood shrinking and moving a little after it is installed. To help avoid this and still have an affordable product, we have the Select ceilings (12%) which are a really good cost / quality solution. To help sales, we have produced a brochure as well as a display for all Stark stores. BeijerBygg in Sweden has similar products which will be relaunched as RAW Premium, Select and Classic this autumn,
along with a Swedish brochure and updated display.
TE
EL
DT Magazine // Private Label
RAW table tops THIS AUTUMN, Stark is introducing a range of RAW table tops which will be displayed in the stores as you can see in the photo. Among the many types and qualities available will be 2 exclusive tabletops made with full-length strips of wood. One of which can be seen here on the photo of a kitchen. Very beautiful!
RAPTOR paint – now with flowers
NOT ONLY has the paint quality been improved, our RAPTOR professional paint now also bears the EU Eco-label flower. The EU Eco flower can be used by products that have a reduced environmental impact through-
out their life cycle, from the extraction of raw material through to production, use and disposal. Recognised throughout Europe, the EU Ecolabel is a voluntary label promoting environmental excellence which can be trusted. To mark this upgrade and to make the paint more visible in the stores, we have also changed the paint bucket from white to black, with a RAPTOR-yellow lid.
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APPROVED
SPIRIT
When you’re not tall, and you get into a fight with a bully at the playground, it helps to have a big brother with muscles. Cheapy boldly applies this principle in a business context, using SILVAN’s tested ideas in the battle for marketshare in the Swedish DIY segment.
Jessica Nyström
Puttinger’s h big broltes to musc use good
Cheapy is the
COPY PASTE champion in DT Group
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The chain has made it a virtue to implement new, but tested initiatives at light speed. This helps them to accelerate their learning curve, leaving behind their competition. The KPI portal and measuring customer hit rates with camera’s, are the latest ideas adopted and implemented by Cheapy. Their approach shows that copying fantastic ideas, in itself is a brilliant idea.
IN THEIR brand new office on Energigatan1 in Ängelholm, we meet with Pär Rampe, Cheapy’s smiling Business
DT Magazine // Mission Felix
Unit Director. He’s got every reason to smile: Cheapy has just delivered its best month ever. Part of the success is the steep development curve the business unit, thanks to a tight partnership with SILVAN, is going through. “When you want to have success in the retail business”, Pär says, “you need to have an open mind and you need to be able to adapt to new situations fast. We constantly look for inspiration to develop, become better, more efficient. We work closely together with our colleagues from
SILVAN in Denmark. We use their marketing agency, staff planning system, time planning, and now we have also replicated their KPI portal.”
Up & flying in a jiffy
The KPI portal is a vital new tool for Cheapy’s 22 branch managers. It aids them to monitor and improve the performance of their branches. “The portal provides a quick, consolidated overview of all our key objectives”, says Mattias Kovacs, Cheapy’s freshly appointed business controller. “The portal is updat-
ed daily with the latest sales figures, the development of the gross margin, inventory figures, hit rate, the average purchase per customer - basically everything you need to know about your business. Our ability to react upon real time data and develop our business, has taken a major leap.” The user surface includes visual indicators for all key business objectives. A green, yellow or red colored smiley lets the user know whether performance is below, on, or over target. “Branches now have
You need to be able to adapt to new situations fast
real time data on all performance indicators available in an easy to understand, visual format”, says Mattias. “It supports understanding of the current business situation and makes it easier for branch managers to discuss performance and the goals for the day with their teams.” “It took us less then three months, from the moment that we saw the dashboard, until we had our own version up and running”,
More on next page
IMPROVE YOUR HIT RATE with these five tips: 1 2
Dedicate one or two colleagues to take care of customers entering the branch
3
Discuss the hit rates on a daily basis with all colleagues - ask yourself what you can do to improve
4
Prioritize the customer entering the store, everything else can wait - the customer can’t
5
Think like your customer, and adept the branch accordingly - i.o.w. make sure the prices are visible and customers understand what they can use the various products for
Greet each customer entering the branch and ask “how can I help you?”
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Continued says Pär proudly. “We changed a few colors, the language, of course but replicated everything else. The result might not be a 100% fit for our current business needs, but it works. When you have a good idea, it’s important to move fast.” An improved version of the portal will include indicators for staff efficiency and cost control, utilizing the new staff planning and the salary system.
If you are serious about beating your competition, you cannot afford to tweak and test forever
Camera’s reveal potential
copy-pasted, is using infrared camera’s to count the number of visitors entering the branches. “Just like in SILVAN, we’re now able to calculate exactly how many people leave our stores without purchasing anything”, Pär explains. Cheapy installed the camera’s in March this year. “The first month we registered a hit rate of around 50%, well below SILVANs‘ (65% measured in March). Below our own expectations”, says Mattias. “What you have to keep in mind is that, before the camera’s were intro-
Another SILVAN idea, Cheapy gratefully
68% Time spend on non-customer related tasks by staff in the branches, shows a recent Cheapy study
30 million
is the additional revenue Cheapy can achieve by equaling Silvan’s hit rate
F60
Focus 60% of all your time in the branches on customers, and 40% on non-customer related tasks 22
DT MAGAZINE
duced, the results were probably not any better. Now at least we have the facts and it allows us to act upon it. The people leaving our branches today empty handed, represent our potential. And with the hit rate being an integrated part of the KPI dashboard, our branch managers now have all the available data to react adequately.” What surprised both Pär and Mattias is how much the hit rate varies. “The difference is 20+%”, says Mattias. Cheapy Motala is one of the branches with a hight hit rate: 63% in May. “We managed to hit 70% last saturday”, says Jessica Nyström, the proud branch manager. “It’s hard work. Every day. The customer is in our minds with everything we do. Even when we’re doing routine work like filling up shelves with products. Can the customer easily reach the products, does the product need more explanation, is the price visible? How does the customer think? Adept to their line of thinking. When a
customer enters the store, they’re the number one priority. The shelves can wait. The customer can’t”. For Jessica the camera’s, the focus on the hit rate and F60 are very welcome changes. “F60 is all about spending more time with the customer and that will benefit sales. The camera’s help us understanding where we can improve. Usually we’re three people on a Saturday. Thanks to the camera’s, I know exactly when most customers visit us. Last Saturday I made sure we were four int he time frame where it was busiest. That worked - our hit rate went all the way up to 70%. I love it.” “We want to improve the hit rate in all branches and the average must go up. The first milestone is 55%”, Mattias says. “If we reach that, Pär promised champagne for the entire lot. If we manage to equal SILVAN’s hit rate, we would increase our revenue with SEK 30 million. Imagine.”
DT Magazine // News
Cheapy is growing
NEW STORE CONCEPT
CHEAPY has found the right formula for their branches and is taking the South Swedish market by storm. The four main success parameters are: Larger yards with a drive in Great availability and convenient and fast shopping experience Well known quality products to the best price in the market Effective and polite staff with product and DIY project knowledge as well as sales technique
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Stefan Kembe
Beijer focuses on private label doors
How to make a private brand
A PREFERRED BRAND The sales figures for doors are up in Beijer, in spite of the fact that the market is decreasing. That is great news. But it gets better. The big success is due to sales of private label doors - sales has increased with 56% compared to last year. A coincidence? Hardly! A well designed strategy including training and dialogue and a lot of hard work from all parties involved, are the secret of Beijers’ private label success.
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DT MAGAZINE
Carina Manns
“INTRODUCING a new brand, is not easy”, says Carina Manns, product manager for doors, windows and kitchens - and - responsible for PL doors in Beijer. “You’re up against established brands that have been on the market for a long time. Customers know these brands and they will ask for them. To convince them to try another brand, takes a lot of confidence”, says Stefan Kembe, Beijer’s sales manager for private label. “The seller has to be able to look the customer in the eyes and tell them that they can trust their recommendation”, says Stefan. “That would not have been possible seven years ago
DT Magazine // Private Label doors
- when we started with private label in Beijer.”
Win a door
The secret according to Carina is commitment and focus. “We looked each other in the eyes, it must have been around two years ago, and we agreed that we really want this. We have two private brands in our door assortment, RAW and Center. Both brands have interior as well as exterior doors. We made sure that every store had the assortment in their exhibition as well as the products in their stock and in our central ware house in Norrköping. We actually sell PL doors to projects with direct deliveries from the central ware house.” “We arranged product and sales training for staff in the stores”, says Stefan. “So far we educated 400 people, which is a third of our entire staff. We have a great dialogue with our supplier and they were represented during the training. We initiated some small but smart in store campaigns where people could win a private label door. Of course there’s only one winner but all the others got an offer to pur-
chase the door at a special price.”
Quality and product availability are winning arguments
“We made sure product availability is top notch”, says Carina. “We got the doors on stock and even if there’s a customer buying a large quantity, delivery time is reduced to an absolute minimum.” The quality of the doors is excellent, a factor that makes a huge difference. “When we started with private label products, we introduced rather simple but cheap products”, says Stefan. Today, most of our PL products are top quality. Our doors for example, they are made in Sweden. Being able to point this out in a sales talk is a huge advantage for Nordic customers.” “Our private label
products are a success”, says Stefan proud. “Today nine percent of what we sell is private label. That’s four time as much as seven years ago.” “For doors the statistics are even better”, says Carina. “Raw is one of our strongest brands today. People entering our stores specifically ask for RAW. Which gives us a huge advantage compared to our competitors: they don’t have the brand and can’t get it either.”
We control our doors
The next step, both Carina and Stefan agree upon, is to expand the product assortment. “Both Raw and Center are available only in white”, says Stefan. “And even though this is the most sold colour, we do have a wish to both offer our customers alternative colours as well
Our people trust our brands, so do the customers. I am proud of how far we have come.
as additional sizes.” “These wishes come directly from the organization”, says Carina. “We discuss this with a supplier and see whether it is feasible and whether we can make it into an interesting business.” Where manufacturers a few years ago were reluctant to produce private label products, the situation today is totally different. “Suppliers are very interested to produce for us”, says Stefan. “And for good reasons, we sell the doors. “We have total control over our doors”, says Carina. We own the brand and can replace supplier tomorrow if we want without jeopardizing our assortment. Our people trust our brands, so do the customers. I am proud of how far we have come. But we have to continue with product development, marketing and education.” Doors, according to Carina, are ready for e-commerce. “We only just started. But it makes sense. Doors are, unlike windows who come in a lot of different shapes and sizes, a commodity product. You can easily order them over the net. Why not?”
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STAR Kotka KKI secon is the d to intr branch new c oduce oncep t
This is how
CUSTOMERS LIKE TO SHOP
In June this summer, Starkki Kotka opened its doors for customers. The new branch was build close to the existing one and feels nothing like any traditional building store. It’s modern, sleek and crisp. Most of all: it’s build with the customer in mind. 26
DT MAGAZINE
“CUSTOMERS are truly surprised”, says Kari Salo, the proud branch manager of Starkki Kotka. “We’re able to give them a more customized experience. B-C customers who need help with a building project, or to find products, are greeted at the entrance by staff at a sales desk. This is new. Before, each product section had it’s own small service desk. Customers had to find out themselves where they had to go. Now we can guide and serve them far better.”
DT Magazine // New concept
Clear navigation in the branch
“For our self service customers, we made it even easier to find what they need”, Kari explains. “Products are grouped in a more logic way. If you need tiles or flooring for a bathroom, you find the matching colour schemes at one place. Another huge difference is the entire way of displaying products. We have clear and visible signage of all product groups, making it easy for customers to navigate. It doesn’t only look very good, it is functional and it works. Customers tell us they are very happy. Also with the yard, where there’s more space for customers who pick up supplies.” The core of the new concept is the inspirational area, strategically placed in the middle of the
We’re listening very carefully to what customers tell us
store. Displaying a large assortment, this area has the function of a showroom, mainly for professional customers. There is also campaign and seasonal areas - including a video wall. “The videowall and smaller screens enable us to do more effective in-store marketing and inform our
customers of services and seasonal product offers”, says Anne Koskinen, Starkki’s DIY Sales Director. “There’s a B-B sales section as well as a builder service for B-C customers who need help with larger construction projects. Kotka is the second shop with the new concept. Last August we introduced the concept in Turku, opening a second branch in the city. The plan is to refurbish the twenty remaining branches. It takes a lot or planning. We can’t just close a branch for a few months to rebuild it. We need to do it while we’re open for business.”
It works
The new concept is a result of Starkki’s experiences over the years, combined with ideas from different functions in the or-
ganization and wishes from customers. “We’re listening very carefully to what customers tell us”, says Anne. “They know what works for them and what not. They tell us in the customer surveys that we conduct.” Staff in Kotka are happy for the changes. “It’s a good experience to stand in the new branch.”, says Kari. “The product displays help customers making decisions. The way the products are grouped in the inspirational area, makes it easier for our customers to shop and for us to sell. Our sales people do require some additional product training though. Before they were responsible for sales within a specific product category. Now they need to be knowledgeable about our entire assortment.”
STAFF GETS GOOD FEEDBACK EVERY DAY Customers have been really satisfied with new branch and yard Products are displayed in logical order and inspirational area (inside the store) has got special thanks from customers Wonderful clear store DT MAGAZINE
27
The winner of the iPad mini is Liselotte Jensen, STARK Grønland. Congratulations.
Win an
iPhone
1
2
What are the by products of hydrogen powered vehicles? A Water B Heat and water C Batteries and water
5
How well are you informed about what is going on in the DT Group?
Answer the questions below and win a brand new iPhone 5 with 16 GB memory (without subscription).
3
In which city did Silvan open its bold pop-up shop: Silvan garden
How many branches will Cheapy have at the end of this year?
A Odense B Aabenrå C Næstved
A 29 B 12 C 15
4
5
What are the names of the two private label branded doors Beijer sold by Beijer?
After whom is our new strategy, mission Felix, named?
A Svedoor and RAW
A Felix da housecat
B Center and Basic
B Pope Felix
C Center and Raw
C Felix Baumgartner
SEND YOUR ANSWERS NO LATER THAN 15-10-2013 Use the coupon below or send your answers by e-mail to: quiz@dtmagazine.dk
1: 2: 3: 4: 5:
A
B
C
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The winner