Fittings No. 1 · Spring 2011
30 min. update
The Logistic Mercenaries make deliveries go smooth
Help! The vikings have arrived 22
13
Win an
iPad Quiz on back page
We are
CEE 4
What you didn’t know about us
10
The
Honey moon is over
2 the Facebook effect 3 On the shoulders of Titans 20 Turning paper boxes into money
Take m home e
Inside 16
Charlotte Gullach Büttrich Chief responsible editor for Fittings editor@fittings.nu
Our sun is our natural resource
The story of: solar power
4
We are CEE – What you didn’t know about us In spite of our differences, we cater to the same customer: the professional. And professionals like to deal with professionals.
8 10
Ask Ole – Anything you like
13
The Logistic Mercenaries
The Honeymoon is over It’s been 15 months since DT Group took over the financial responsibility for CEE.
make deliveries go smooth
20
Ideas@work
24
Win an iPad
Fittings’ non exclusive white board where we share ideas from all the divisions - also the Nordics.
18
Help! The Vikings have arrived
USEFUL NUMBERS Tobler CFM Wasco
The Facebook effect
+41 44 735 50 00 +352 4995-1 +31 88 099 5000
OÄG +43 50406 0 DT Group +45 39559700 Wolseley +44 118 929 8700
Everyone on Facebook risks to, sooner or later, get a social poke from an old friend or a long lost family member. Sometimes you even find friends, family or colleagues you didn’t even know you had. That is in a way what Fittings will do for you: connect you to colleagues in Austria, Switzerland, Luxembourg, Holland and beyond. People you didn’t even know were your colleagues - until now. People serving the same customers, in the same industry - doing the same job. There’s something else Fittings and Facebook have in common. Scientists are convinced that we have the cure for cancer, the answer on how to solve world poverty, pollution, illiteracy, famine and at least a dozen other serious issues - if only we would
be able to connect what we know on a global level. A promise that thanks to social media initiatives like Facebook starts getting realistic. Even though our challenges are more business related, the principle of people sharing insights, ideas and solutions to resolve issues and problems remain. Fittings wants to provide you with a platform where insights, backgrounds, ideas and input that helps you understanding the bigger picture while supporting your job can be shared. I hope you like this first issue and that we can inspire you to contribute in the future. Let us know what you think.
Happy reading You can write to Charlotte at editor@fittings.nu. Feel free to share your ideas, comments both positive and critics.
Colophon Fittings issue 1, distributed April 2011 Fittings is the employee magazine for Wolseley CEE staff in Austria, Switzerland, The Netherlands and Luxembourg. Publication by Wolseley CEE. Circulation: 2300. Available languages: English, German, Dutch and French.
Editorial responsibility: Wolseley CEE/ Charlotte Gullach Büttrich. Journalistic production and project management: Radical Communications/Patrick May. Design and layout: Appetizer/ Simon Johnsen. Photography: Das Buro/Emil Lyders, Peter Lous. Print: Trykcentret.
Editorial committee: Wasco/Sacha Büchele, s.buchele@wasco.nl; ÖAG/Julia Willrodt, julia.willrodt@oeag-ag.at; Tobler/Jacqueline Made, jacqueline.made@toblerag.ch; CFM/Peter Broecker, peter. broecker@cfm.lu; Wolseley CEE/Tobias Roser, tobias.roser@wolseley.com
Congratulations
On the shoulders of
Titans ÖAG is celebrating its 140th. anniversary. The company was established in 1871 under the name ‘Armaturen- und Maschinenfabrik’ in Vienna. This makes the company the eldest sprout in the CEE family and a part of a very exclusive club of 50 or so companies that managed to get 100 years or older
in Austria. The company had to wait another 76 years for its current name: Österreichischen Armaturen Ges.m.b.H. (in 1947) - abbreviated simply to ÖAG in 1989 when the company went public. The organization has planned a number of events to celebrate this anniversary with customers, suppliers and staff.
ÖAG eldest ÖAG Wolseley DT Group CFM Tobler Wasco
Founded Founded Founded Founded Founded Founded
in in in in in in
1871 1887 1896 1920 1957 1970
ller Stiftske eter St. P
Austrian History Maybe it’s not a coincidence that ÖAG is the eldest sprout in the CEE Family. The oldest (registered) company in Europe you find in ... exactly Austria, in Salzburg
to be exact. Stiftskeller St. Peter, a restaurant within the monastery walls of St. Peter’s Arch abbey, was founded more than 1200! years ago in 803 AD. You have
to go back another 100 years (705 AD) and take a trip to Japan to witness the founding of the oldest company in the world: Keiunkan.
Fittings 1 · 2011
3
We differ in size, we operate in different geographies, our stores look different and we differ in the stuff we sell. While Tobler, ÖAG, Wasco and CFM focus on heating and plumbing, DT Group and Woodcote are big in timber - the so called heavy side of the business.
We are
CEE
Yet at the end of the day, in spite of our differences, we cater to the same customer: the professional. And professionals like to deal with professionals.
What you didn’t know about us
2
Where does Tobler differentiate from its competitors?
Distribution brings Tobler ahead of the game
1
What is Tobler’s biggest asset?
Tobler has a logistic setup to distribute its more than 60.000 products that is second to
4
Fittings 1 · 2011
none, guaranteeing customers 24 hours delivery - no matter where in the country they are. Also, Tobler has 720 dedicated employees that are inter-
ested in advancing and developing Tobler. They know the heating business and more than 5000 professional customers rely on their know how.
It’s 40 stores, called Tobler marchés, makes for a fine mazed network that is hard for competitors to copy. Another winning proposition is Tobler’s Ecommerce platform creating loyal customers (read more on page 21). Last but not least the wide assortment of products and the advanced product management keeping the inventory in top shape.
Spotlight has still strong cards though like its 47 branches, 14 showrooms and 4 distribution centers the best network in Austria. At the moment ÖAG is optimizing it’s logistic network to stay ahead. Another winning differentiator is the international network ÖAG is a part of. Thanks to Wolseley, ÖAG has muscles that helps negotiating better deals
Loyal staff makes the difference for Austrian ÖAG
1
What is ÖAG’s biggest asset?
The most precious assets within ÖAG are definitely its experienced and very loyal people. To an extend where competitors that are eager to copy ÖAG’s success actually try to steal staff away. A lot of people have been with the company for 20 - 25 years -
3
What is the biggest challenge Tobler faces?
The weak Euro makes it more lucrative then ever for especially German competitors to challenge Tobler for market share.
4
How is Tobler going to deal with this challenge?
Tobler uses its network of marchés to strike back as it is the fundament for excellent relations with customers.
with suppliers, something none of its close competitors have access to.
3
The market in Austria suffers from a low activity level. Competition in recent years has invested in new branches and showrooms - increasing the pressure.
More on next page
they know the business, they know the customers. That is impossible to replace.
2
tors?
Where does ÖAG differentiate from its competi-
ÖAG has been the market leader for many years but competition has increased recently. ÖAG
5
How is Tobler positioned in terms of marketshare?
Tobler is active in four areas. They are the number one distributor of heating products - in fact, the Swiss scion of CEE is twice as big as the number two. In heat generation, Tobler is leading, as well as in servicing heat generation installations (with app. 40.000 contracts). In plumbing, where Tobler sells behind the wall items only, the
What is the biggest challenge ÖAG faces?
Established: in 1871 Country: Austria Headquarters in : Vienna Branches: 47
Staff: 820 Main customer segment: Installers MD: Helmut Di et
er
Kus
Marketshare:
between 25 and 30% (from larges t category)
division is among the biggest three.
6
What is Tobler’s opportunity to increase marketshare?
There’s opportunities in the heat generation market where Tobler is well positioned to increase market share. The complexity of heat generation installations requires professional consultancy - in which Tobler is investing at the moment.
Established: in 1957 Country: Switzerlan d Headquarters in: Ur dorf Branches: 40 (called
Tobler marchés)
Staff: 720 Main customer segm ent:
Installers
MD: Heinz Wiedme r Marketshare: 30% Revenue: CHF 370
million
Fittings 1 · 2011
5
Wolseley reorganized in 2010 and as a result the company now is divided into four geographical business units: USA & Canada, UK, France and ... the rest of Europe. The latter cluster of countries includes CEE (Central and Eastern Europe), DT Group and Woodcote.
Continued
4
How is ÖAG going to deal with this challenge?
ÖAG will initiate a training institute and staff will be offered professional sales training to increase sales skills - a welcome addition to their profound knowledge of the industry and products. There’s also plans to both update the branches, starting this year, and update the on-line presence.
5
1
What is CFM’s biggest asset?
CFM has a long history in Luxembourg (more than ninety years) and has enjoyed somewhat of a monopolistic status. As a result the company reaps the benefits of long relationships, both to suppliers and custom-
ers. That means good deals and service from suppliers and loyal customers.
2
Where does CFM differentiate from its competitors?
CFM’s assortment is, thanks to the large pool of suppliers, unrivaled in Luxembourg
and together with the fact that CFM has the largest showroom, the company offers a unique proposition to its customers.
3
What is the biggest challenge CFM is facing? German competition. German competitors
How is ÖAG positioned in terms of market share?
The market share varies from region to region but in average it is around 22%. It’s slightly higher in the Vienna region.
6
What is ÖAG’s opportunity to increase marketshare?
ÖAG is developing a series of initiatives like increasing the service level, focus on exclusive products, push the private label range (now exceeding 10% of the total worths of sales), and, using the Wolseley network to get better conditions and better prices from our European suppliers.
6
Excellent relations means loyal customers and suppliers for CFM
Fittings 1 · 2011
Wasco is the unrivaled leader within spare parts in The Netherlands
1
What is Wasco’s biggest asset?
Wasco puts the customer first and considers therefore the customer to be its single most important asset. However, since this is a people business, staff plays a key role in the relation with customers and therefore they should share first place. Wasco started 40 years ago as a family business and still has some of that spirit.
Staff has a heart for the company and staff as well as customers are very loyal.
2
Where does Wasco differentiate from its competitors?
Wasco is the unrivaled market leader when it comes to spare parts and their service is absolutely top. They deliver the kind of service that any customer can only dream of and no competitor can
match.
3
What is the biggest challenge Wasco is facing? In a way you could argue that Wasco’s strongest asset is also the company’s achilles heel since customers, especially the larger accounts, have grown used to excellent service without paying for the extra service given. The challenge is to balance the mix of
Spotlight Branches: 2 Staff: 114 (and 11 different
nationalities!!)
Main customer segment:
Established: in 1920 Country: Luxembourg Headquarters in: Luxem-
bourg city
typically are organized in larger chains including sixty or more branches putting prices under pressure.
4
How is CFM going to deal with this challenge?
Become better at using the synergies from being a part of Wolseley.
customers and products while managing margins tightly. This requires a different mindset, also from the sales people.
4
How is Wasco going to deal with this challenge?
5
How is CFM positioned in terms of marketshare?
CFM has five product categories it focuses on. Overall the marketshare is calculated to be 30%. The company is the market leader when it comes to sanitary ware, tubes (heating) and PVF (pipes, valves and fittings that go in the ground).
Wasco is realizing that small and medium sized customers have the largest value perception of the service provided by Wasco and therefore these segments are extremely important to increase the focus upon. Wasco is reviving its
installers
MD: Peter Broecker Marketshare: 30% and 30%
(from largest category)
Revenue: €40 million
6
What is CFM’s opportunity to increase marketshare?
CFM focuses on heating as this is a growing market in Luxembourg. CFM on the one hand side wants to use the network to be able to get more competitive prices but realizes at the same time that they because of their
academy and has plans to expand training to its staff.
5
How is Wasco positioned in terms of marketshare?
Established: in 1970 Country: The Nether-
lands
Headquarters in:
Twello
Branches: 26 Staff: 357
Main customer segment: installers MD: Herold van den
Belt
Marketshare: 10 - 15% Revenue: €210 mil-
lion
Wasco is by far the market leader in spare parts (15.000 SKU’s on stock), within the top 4 in heating and has a smaller marketshare in plumbing (four showrooms for professional customers).
relative small size can not be the price leader. Therefore the companies’ strategy is build around being the service leader. One initiative that has started already is that all sales people get intensive sales training.
6
What is Wasco’s opportunity to increase marketshare?
Sanitary is definitely an area that Wasco is planning to expand. Recently they added a new series of tiles to the assortment to position themselves as a one stop, all included shopping facility for customers. Another growth area is under floor heating, which is a growing market in The Netherlands. Fittings 1 · 2011
7
k s A le O
... Anything you like In an organization with more than 2.000 people, the distance to the top management may seem long. Ask Ole is an initiative to decrease that distance considerably. You now have the opportunity to ask CEE’s most senior manager, Ole Mikael, a burning question. Don’t let this chance pass you.
Will we see you walking around in the DC’s a lot? As much as I can but probably not as much as I would like. I am a firm believer to leave making decisions up to the people that have to live with the decisions
8
Fittings 1 · 2011
they make every day. Locally people know what is best as they know the market and the customer best. I on the other hand, will ensure the operative framework that
makes this possible. To gain the best foundation for doing so, I of course have to visit all companies frequently so I know the businesses inside out.
What has been your most difficult decision for CEE so far? Closing down the Romagna region in Italy and later on selling the rest of Manzardo, both on a personal and professional level has been a hard decision. Manzardo is a company at the very core of Wolseley’s business, plumbing and heating, with a fantastic history and competent staff. We started a number of urgent restructuring initiatives which actually took the company to break even and I am convinced that we could have developed the company into a profitable business in due time. Personally I would have liked to witness this and have a professional part in that success.
What
Why did we have to sell Manzardo in Italy? Manzardo has definitely potential but considering the attention, care and time required to develop and grow that potential, we could not guarantee the company to succeed within the Wolseley framework. Given its low market share, expensive infrastructure with high costs and very high working capital, we concluded that in the long run we would be better off to invest resources in other, more attractive markets. For CEE the disposal means that we lost a geographical market but in return we freed significant resources, both time and money, to invest in ÖAG. Tobler, Wasco and CFM. And that is good news for everyone.
would you like to ask Ole?
Will we experience long term strategic planning with DT Group managing CEE? Yes. We have established a professional and competent management team. Together we developed a robust strategy encompassing both short and long term. We needed to move fast as our earnings were close to zero. Compared to other Wolseley companies most of the CEE companies underperformed on gross margin. Our first priority was to fix this - by focusing on products and services that are in demand of customers. We have seen very good improvements the last year, and today we have most of the ingredients - the right products, suppliers, customers, and not the least people - to build future profits. The
fact that we are profitable, puts us in a better position in Wolseley. The status of Tobler, ÖAG and Wasco within Wolseley has been upgraded which gives us new possibilities to develop the businesses. As a result we can start the next phase of our journey, which will be a far more positive one. The focus will be on profitability i.e. optimize operations, service and identify areas that can improve the bottom line and money tied up running the business. We will invest in the people and we will initiate development in all divisions and will try new things. Thanks to all staff, we are now on right track, but we need to keep pace!
Can we expect the introduction of additional product categories? There’s no yes or no in this matter. Our first priority is to get the most out of what we already have. Sell more of the products we have in our assortment, create better margins, get more out of our existing customers with a strong focus on creating loyalty and added value. Therefore it is so important that we develop the small and medium sized customer segment as they perceive most value from us. That however doesn’t exclude the possibility of new product categories as long as it makes sense and it fits in our focus on profitability.
Send your question to editor@fittings.dk and we make sure your questions gets answered. Don’t mince your words – you will remain totally anonymous. Fittings 1 · 2011
9
The Honey
moon is over
It’s been 15 months since DT Group took over the financial responsibility for CEE.
ÖAG
Gross Margin Sales
In ÖAG we changed the pricing methodology and renegotiated terms with suppliers.
CFM
In CFM we for example closed the steel department. Gross Margin Sales
All graphs: Development last 3½ years, with rebound the last year
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Fittings 1 · 2011
As always in a new relation, you have to get used to a new partner. She might talk a little bit too much. She might make you take your socks to the laundry bin. But the pink glasses are on and we happily accept our partners oddities. As in all healthy relations, at some point the honey moon is over, the pink glasses are off and the balance is made up. In this case, the balance is impressive!
Thermometer Profitability has increased with 300% (from GBP 4 million to GBP 16 million) in first half of current financial year. We did this thanks to an extreme focus on value creation where we evaluated the profitability of both customers, products, suppliers and regions/branches. With customers that were unprofitable, we renegotiated contracts.
Where we could not get a better deal, we decided to exit the customer. The same principle we applied for products, suppliers and regions/ branches. This resulted in a decline in sales but a steep increase of the gross margin. We eliminated operations that are not profitable which allow us to focus on initiatives that create value.
Serious about margins We’re taking profit margins dead serious. In fact, so serious that management installed a monthly award for the CEE division who’s able
to increase its gross margin most compared to the same period last year. Below you find the winners since August 2010.
Aug
CFM
Sep
Wasco
2.0%
Oct
Wasco
1.9%
Nov
CFM
Dec Jan
5.2%
4.1%
Tobler
3.7%
Manzardo
Feb
Wasco
Mar
Tobler
3.6% 2.7% 4.5%
More on next page Fittings 1 · 2011
11
Thermometer Tobler Continued
Gross Margin Sales
In Tobler the consequence of the big bang approach has been that product categories like air conditioning were sold.
Wasco
When service costs dearly Customers do not always appreciate the service we actually give them. A good example we got from Wasco. They sold 242.472 standard screws to a single customer at € 0,03 per screw. They were sold (and picked) per single unit and packed in bags with an average of 17 screws. In all 16.500 picks accounting to €0,44 per pick. FOR FREE. The
reaction of the customer? They weren’t aware! The solution for this case was rather simple. Wasco agreed with the customer to deliver the screws in standard quantities e.g. in boxes of 200 pieces each. At the same time, the overall contract has been renegotiated and Wasco gets a better margin from this particular customer now.
Gross Margin Sales
Manzardo
Gross Margin Sales
CEE
Fittings 1 · 2011
The exercise also lead to the closing of the Romagna region in Italy and we sold the rest of the company, Manzardo.
(incl. Manzardo)
Gross Margin Sales
12
In Wasco we revised terms for several large accounts and made them more profitable.
Resume
The
Logistic
Mercenaries make deliveries go smooth Name
Michael Schaffner Age Division Where
How many years Function
42 Tobler Haustechnik AG Baselland 10 years Truck driver
I am the face customers see “My day starts in the distribution center in Däniken at 04.00 in the morning”, says Michael Schaffner. “As soon as I check in, I start loading my truck. Half an hour later, I am on the road. From there on it it is me, my truck and my list. This gives me an undefinable feeling of freedom. This job is my dream job. Or rather, was. The increasing stress on the roads have taken a toll on my enthusiasm. I experience people on the road to be in a hurry and not very tolerant. I haven’t had
one single accident in my ten years driving for Tobler. An accomplishment, considering the situation on the roads.” Last year Tobler optimized its distribution network and as a result, the distributer now has one main DC, Däniken, where most truck drivers, including Michael, pick up their deliveries. “For me it is perfect: both the area I cater as well as my home are nearby” Michael says. “Another advantage is the sheer size of the new DC. We now drive our trucks into the building, all the
way to the loading platform. Keeping our cargo dry.” It’s not all good yet. “When introducing our new distribution network we promised customers that ‘part deliveries’ would be history. Meaning that when a customer orders ten radiators, we deliver them in one delivery. Not two on Monday, three on Tuesday and so on. It still happens and it frustrates the customer”. With an average of 30 deliveries a day, Michael is talking to a wide variety of cus-
tomers. “A lot of them I have known for ten years. I feel I am an important ambassador for Tobler. Customers call in their orders by phone or send them by fax. They don’t see my colleagues in Sales. In many cases I am the face they see when dealing with Tobler.” “We have a for Switzerland absolutely unique delivery promise - order before six and get your delivery the next day. None of our competitors has the network to do so. Customers love us for it.”
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13
The
Logistic
Mercenaries make deliveries go smooth Name
Berry Goossen Age Division Where
How many years Function
41 Wasco Twello 3 Yrs Planner transportation
Getting the pieces to fit Wasco has outsourced all transportation hiring a professional company to increase efficiency and manage costs. When doing so, Wasco agreed that the distribution company takes over the employment of all truck drivers. Planning however, is in full control of two transportation planners in Twello working in shifts. “This week I start at 1 PM and work until 10 PM”, Berry Goossen says. “Next week I swap with my colleague and work from 6 AM until 3 PM. Together we ensure that both our own distribution hubs and our customers are efficiently catered.” “We plan 40 routes - every day - including internal deliver-
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Fittings 1 · 2011
ies where we use big trucks with a trailer. Including night deliveries to our 26 branches and 700 stops daily”, Berry says. “Most of the routes we plan, are trucks delivering to
ordinary traffic situations, we can intervene in a route and save a lot of km’s as well as time.” “Transportation is a significant cost. Balancing the customers’
Transportation is a significant cost. Balancing the customers’ interest with planning cost efficient routes, is like fitting a giant jigsaw puzzle. customers. These take a lot of plotting. Especially in the larger cities as traffic here can be dense and unpredictable. We have a system that allows us to track trucks driving for us. If we are aware of extra
interest with planning cost efficient routes, is like fitting a giant jigsaw puzzle. Driving 30 additional kilometers to deliver a €8 item, is not exactly cost efficient”, Berry says. “But what do I do if the cus-
tomer needs the item today and I don’t have other errands in the area? I think we sometimes promise a lot to not loose the sale without considering the costs involved to fulfill the order.” In spite of the fact that the truck drivers are not employed by Wasco, there’s a strong feeling of joint effort to deliver excellent customer service. The drivers have their own cantina in the DC in Twello - on walking distance from where planning is done. “I am a regular visitor here”, Berry smiles. “Discussing issues over a cup of coffee is always better than having to talk in the phone. It promotes mutual understanding and team spirit.”
Resume
Name
Antonio Bregge Age Division Where
How many years Function
42 CFM Luxembourg city 8 years Chief Operations Officer
Better than yesterday, better than our competitors Antonio started in 2003, being responsible for logistics in CFM. Today he is responsible for operations, including IT and inventory. “I consider it a gift to work here. If you count the amount of people (120), CFM is the smallest unit in CEE but that doesn’t make our challenges smaller.” With one DC and two stores where customers order and pick up materials, smooth deliveries are paramount for CFM. “Due to fierce competition prices are low. The battle is won by offering better service. Making sure our customers get the material they need when they need it where they need it - is a decisive parameter”,
says Antonio. “We acknowledge that we are not transportation experts and in 2008 we outsourced the delivery of small and medium sized items, which accounts for 70% of our distribution. That gave us a lot of flexibility and improved our ability to deliver upon our customer promise: ordered before five - delivered the next day”, Antonio says. “It has an additional advantage. We can scale up if necessary without making large investments.” The DC in Luxembourg operates five trucks for large and heavy items. “But all the other trucks carry our CFM logo as well”, says Antonio. He adds:
“It is important to customers that it is a CFM truck that delivers on site. The same goes for the drivers. When we sealed the deal with
in a competitive environment, small things make a difference. We for example introduced a text messaging service so the customer is
Due to fierce competition prices are low. The battle is won by offering better service. Making sure our customers get the material they need is a decisive parameter. the transportation company, one of the demands was that they would re hire our truck drivers. That way our customers still see the same people wearing perfect CFM uniforms.” “If you’re working
notified on his mobile phone if he wants to know when he can expect his delivery. Not rocket science but important in the service perception of our customers.”
Fittings 1 · 2011
15
Our
sun
is our natural resource
How to...
Using sunbeams to heat up water:
1
Energy collection:
A solar collector is mounted typically on your roof. As the sunlight passes through the collector’s plastic or glass, it strikes a metal or rubber absorbing material. This material converts the sunlight into long wave heat, and the glazing prevents the heat from escaping like a greenhouse. It is like leaving a car parked in the sun with its windows rolled up. The temperature inside a glazed solar collector on your roof can easily reach 150°C when there is no heat transfer fluid flowing through it.
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Fittings 1 · 2011
2
Energy transfer:
Heat energy is transferred from the collector to the water storage tank. In some water heaters, hot fluid is pumped from the collector to the storage tank.
3
Energy storage:
Solar-heated water is stored in an insulated tank until you need it. Hot water is drawn off the tank when tap water is used, and cold makeup water enters at the bottom of the tank.
The problem with solar power always was that it is an intermittent energy source. In other words, solar energy can be used but not stored. Once the sun goes down, its warmth and light goes with it. So we started using fossil alternatives like oil. But thanks to technological advancement, we’re getting better at exploiting sunbeams. In fact, scientists are convinced that it is possible to meet all our energy needs with this simple, renewable resource. Today less than 1% of our heating, transportation and power energy comes from direct sunlight. There’s a long way still to go.
The story of: solar power
How to... Using sunbeams to create electricity Converting solar power into electricity is somewhat more complicated. It can be done in two ways: 1) directly - using ‘photovoltaics’ (PV), or 2) indirectly - using ‘concentrated solar power’ (CSP).
Scientists are convinced it is possible to meet all that energy needs with this our renewable resource simple,
Photovoltaics (PV) is the process of converting light into electric current using the so called photoelectric effect. PV is mainly used by large power plants like in Montalto di Castro (Italy), Europe’s largest power station with 80.000 solar panels.
CSP systems use lenses and/or mirrors and tracking systems to focus a large area of sunlight into a small beam. Electrical power is produced when the concentrated light is converted to heat which drives a heat engine (usually a steam turbine) connected to an electrical power generator.
Solar power in Switzerland With an average amount of 1700 sun hours a year, Switzerland at first glance might not be the obvious choice to invest in solar energy. The truth is, that also with limited sun hours, exploit-
ing sun beams is a good idea. Tobler has two solar collectors in their assortment: the Malaga 3.0 and the MalagaStar 1.0. Both will do an excellent job providing warm water and heating when and where needed but
Continued on page 23
the MalagaStar 1.0 uses a different methodology (serpentine) to drive the water through the collector. This makes the 1.0 more powerful and as a result the water can be heated to a higher temperature. Fittings 1 · 2011
17
Division Founded Country Branches Employees Main focus
Help!
Neumann Bygg 1859 Norway 15 286 Professional builders, contractors and small industrial enterprises
Norway
The
Vikings have arrived Historically Northern Europeans, called Nord boerne (people from the north), were a mix of peasants, explorers, merchants and warriors with expansion ambitions. The violent warriors you probably know from history books but what is less well known is that Nord boerne, or vikings if you like, were cunning merchants. They were good to exploit their trade competencies and make a profit. This tradition still lives in DT Group - and caught the attention of Wolseley management making DT Group, Wolseley’s Nordic division, responsible for the management of CEE. Time for a short introduction. 18
Fittings 1 · 2011
Division Founded Country Branches Employees Main focus
Stark 1896 Denmark 91 2,374 Professional contractors and DIY builders
Division Founded Country Branches Employees Main focus
Silvan 1968 Denmark 40 899 Do-It-Yourself customers
DT Group DT Group is the largest retailer and distributor of building materials in the Nordic region. The Group includes seven business units they call divisions, stretching over ten different countries (including Greenland). Each division is decentralized and has independent local management, administration and marketing. DT group employs 7700 people catering to a customer base ranging from major contractors, builders and consumers to distributors.
Denmark
y
k
We are family
Finland
Division Beijer Byggmaterial Founded 1866 Country Sweden Branches 64 Employees 1,267 Main focus Professional builders, contractors, small industrial enterprises as well as private consumers
Sweden
Division Founded Country Branches Employees Main focus
Division Founded Country Branches Employees Main focus
Starkki 1868 Finland 22 1,053 Professional builders, contractors and construction companies, as well as private customers and DIY builders
Cheapy 2002 Sweden 20 139 Do-It-Yourself customers
Vikings
Division Woodcote* Founded 1992 Country Poland, Check Republic, Slovakia, Rumania and Hungary Branches 35 Employees 368 Main focus Professionals, mainly interior specialists and installation contractors
The name Viking (from the Nordic v铆kingr) refers to the Scandinavian explorers, warriors, merchants, and pirates who raided, traded, explored and settled in wide areas of Europe (and the North Atlantic islands) from the late 8th to the mid-11th century.
Poland Check Republic
*DT Group took over the responsibility for Woodcote in 2009, putting its experience to make companies in smaller countries profitable to use.
Slovakia Hungary
Romania
Fittings 1 路 2011
19
ork board where weTshhearqeuality w @ s a e Id non exclusive wh-itealso the Nordicusr. office is the
ns r yo gs’ ea is Fittin m all the divisio ent on whethe er does the id e h d w o ideas fr a is not depen of a truck. Neit n the contrary, e y O id of the he cabin nce potential. an be copied b om or t c board ro ave rocket scie as that easily e h id o t cable have ky, appli love stic others. Project file:
Operation b
Recycling boxes to save money and environment
Division: Idea: Result:
low the box
Wasco Recycle pape r boxes Yearly estimat ed savings: €3 5.000, contribution to the enviro nment
Eindhoven based sales person Kim van Kemenade was fed up with disposing perfectly functioning paper boxes. “In Eindhoven, which is a relatively small unit, we throw out hundreds of boxes every month. Boxes with no flaws whatsoever as they are used only once.”
ES
T IDE
2010
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Fittings 1 · 2011
A
B
Three months of spare time research lead to a range of stunning findings. Not all boxes, Kim found, are fit for reusing. “But 95% are. Only few boxes are damaged because of handling and those we of course throw out. I calculated that reusing the good boxes would save Wasco €35.000 a year. That is the equivalent of 25% of what we spend on packaging.”
In some cases, the box even eliminated a significant part of earnings. “If you need to transport a bracket for a radiator, you need to put it in a big box - costs €0,85. The retail price for this bracket is €8, our margin is around €1,50. Reusing the packaging, increases the margin for what we earn.” Returning the boxes where needed, is a cost neutral activity. “Wheth-
er our trucks return with empty containers in Rotterdam and Twello, or with containers filled with boxes, makes no difference”, Kim explains. “And it’s no extra work for us either. We remove the content labels from the box so they are clean and neutral. Instead of putting them in a waste bin, we put the empty boxes in trolley that we have to fit into the empty containers
any way.” “We’ve been doing this in Eindhoven since August 2010 and now other units are considering it as well. For me this is a question of using your common sense. Throwing out material that still functions is throwing out money of the window. On top of that, we’re contributing to the environment by recycling our own paper boxes.”
Best idea 2010 Kim’s idea was awarded best idea in the ‘Wasco’s best idea’ competition 2010. In all 25 ideas entered the competition but Kim’s idea won because of it’s simplicity and feasibility. Except for a Wasco’s best idea trophy, Kim was handed a cheque of €500.
Ideas @ work
Project fi le:
Operatio
Educating the customer is key
Division : Idea: Result:
n foot in
the door
Tobler Ha ustechnik AG Install E-c ommerce solution fo customers r On-line pu rchasing sky rocke ts
Tobler Haustechnik AG has a successful e-commerce setup. The company started putting their inventory on the digital highway in 2001. Customers increasingly visit the on line shop and they are getting used to swipe their credit cards here. E-commerce today contributes with 24% in the total sales of Tobler Haustechnik AG. To grow this number even more, Stephan Stöckli, regional manager in Oberentfelden, visits customers and get them up and running using the on line shop. “As a part of our E-shop, we have a program that allows our customers to scan the barcodes on the products they want to order. My people visit them and help them setting up the solution for them. Not because it is complicated. But you know how it is, you get these installation packages and they can clutter your desk for weeks, even months until you pull yourself togeth-
er. When we install the package for them, they are up and running right away and start ordering.” “That in itself of course is an important reason for doing this”, Stephan explains. “But there’s more to it. Tobler is not the only retailer offering an E-commerce
solution. Our competitors have similar solutions. I have this theory that once our customers have installed our solution, they will be less open to do an extra effort to also install and learn another solution as well.” The results? A stunning 32% of the entire sales in this region is
coming from on-line purchases. “It doesn’t mean that customers no longer come to our marchés (as the stores in Switzerland are called). In fact, we have a great two hour delivery service for customers who order on-line but want to pick up the goods in our marché. Besides, the marché is where they get professional advice and a personal service”, says Stephan. “It replaces phone calls from customers who call in their orders.” The phone can now be used in alternative ways: an application that allows 7/24 mobile ordering is on its way.
Fittings 1 · 2011
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Ideas @ work
Starkki Starkki is the second largest distributor of building materials in Finland - catering to both professional builders, contractors and construction companies, as well as private customers and DIY builders. Starkki has 22 stores and 1053 employees.
Project fi le:
Operatio n blazing Division : Idea:
€1,48 makes all the difference
Result:
Starkki Add €1,48 to each
guns
sale
30% sales increase
Store manager Minna Tilles responsible for the DIY section in Kuopio, together with her team faced a tough challenge in the beginning of 2010. “The amount of customers due to the results of the financial crisis was decreasing - as did our sales. Since this ultimately could have consequences for our staff, we asked them to come up with ideas on how to turn this crisis.” The highly motivated team came up with loads of ideas. One idea though, was so simple and appealing, that it had to be tried out. “The average sale per customer was € 37. We calculated that we actually only had to add €1,48 to each sale to achieve the same result as the year before”, Minna tells. “From there on, we developed ideas to support up- and cross sales. A good way to sell
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Fittings 1 · 2011
more to existing customers is to get insights in the projects that they are working on. By increasing the sale, you are actually doing them a favor as they leave the store with all the supplies they need to finish their project.”
It took the team in Kuopio less then five months to show results. “And what results”, Minna says proudly. “We managed to increase the average sale per custom-
er from €37 to €48, a 30% increase. Actually six times what we set out to do which was increase the value with €1,48.”
idea? t n a t u go idea? Tip usuraidea up s. o y e Hav ow of a greantu and getoyuor colleaguideeas ith y u kn ings. ublish Do yo zine@fitt to share wwe only p king. r maga hite board onditions: nd 2) wo a c w d o e e t th are tw lemen There re 1) imp that a
The story of: solar power Continued from page 17
Total heat generation as percentage of the entire product mix
Solar power in Austria ÖAG has nine Heating Competence Centers, spread over the country, where customers can get help choosing the right products, drawing up complete plans of heating and cooling systems based on traditional or alternative energy sources for their project. Additionally, since these centers are placed locally, they can advise on financial funding in the spe-
cific area. As each area has their own financial support schemes for certain types of solar panels, photovoltaic, heat pumps etc. customers appreciate ÖAG’s expertise here. As a result, ÖAG has outperformed the market over the last year – by 10%. ÖAG has its own brand of solar & photovoltaic panels. This ensures better margins.
ÖAG Tobler Wasco CFM
10% 10% 35% 2%
Half of everything we sell in CEE (€450 million), is heat related. Heat generation accounts for one third (€150 million) of this. Most of what we sell today is still related to traditional boilers. Renewable energy though, is a growing area.
Wasco Energy Center in Twello Wasco in 2000 established a spectacular showroom for sustainable energy where suppliers demonstrate their lat-
est and newest available products within sustainable energy. WEC is the perfect place for installers to get the ins and outs on
the latest products within sustainable energy - both to get inspired by and trained in the latest technology but certainly also
to get hands on support with existing projects regarding heating.
Wasco Energy Center Fittings 1 · 2011
23
Win an
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Some say it’s a small computer. Others refer to it as the big phone (even though you cannot use the device to call anyone unless you use Skype). Truth is, users have not quite nailed yet in what category the iPad actually belongs. That however, has not stopped this gadget from growing tremendously popular - as it is probably the most wanted gadget of the moment. Answer a few questions and get a shot at winning this fantastic gadget.
Send your answers at the latest
Friday June 10th 2011 Use the coupon below or send your answers by e-mail to: magazine@fittings.nu
What percent-
age of Toblers’ customers purchases on-line?
A 15% B 19% C 24%
1: 2: 3: 4: 5:
A
B
2
How many
A 91 B 116 C 143
C
3
branches do Tobler, OÄG, Wasco and CFM have together?
Name: Address: Zip and City: Country: Phone: E-mail: Employed at:
In what year
was Wasco founded and what anniversary does OÄG celebrate this year? A 1980, 100 B 1970, 100 C 1970, 140
4
What was the
original name ÖAG had when it got established in 1871?
A Armaturen- und Maschinenfabrik
B Österreichischen Armaturen Ges.m.b.H.
C VAMAG - Vereinigte Armaturenund Maschinenfabriken AG
5
How much
money (est.) can Wasco save by recycling paper boxes?
A €10.000 B €25.000 C €35.000
Send this coupon to: DT Group Att.: Charlotte Gullach Büttrich Gladsaxe Møllevej 5 2860 Søborg (Denmark)
you must pay tax on the prize
1