OPI APP JUNE 2022 B by OPI

BIG INTERVIEW

Jeanette Bresitz, Office Friendly June 2022

Special Issue FACILITIES / SAFETY / PPE Special Issue

FACILITIES / SAFETY / PPE

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INSIDE THIS ISSUE l ODP – the final countdown l End of the road for Office Centre l Sylvamo to exit Russia l Shifting strategies l OPI CSR mission

l On the map: facilities/safety/PPE l State of the Industry report findings l Wearable technology l AFFLINK launches marketplace

CONTENTS 18 Big Interview Going beyond the core – Jeanette Bresitz’s route to business longevity 26 Hot Topic As much as this industry is broadening its horizons, plenty of outsiders are also checking into ‘our’ space 40 Spotlight A look at Portuguese player Firmo – a year after buying Staples’ local operations 42 Research The State of the OP Industry – a year of transition

Big Interview: Jeanette Bresitz, Office Friendly

With 25 years of industry experience under her belt, Jeanette Bresitz joined the UK dealer group fraternity in June 2021. As one of the many buying and marketing groups in the country, Office Friendly has continuously evolved, with all of its previous leaders putting their unique stamp on the cooperative. Bresitz is no different. Coming on board in the Special Issue middle of the coronavirus pandemic, she quickly FACILITIES / SAFETY / PPE urged dealers to learn all they can about product adjacencies and then diversify with a consultative approach. All the while managing inflationary pressures and maintaining profitability in a very challenging macroeconomic environment.

Special Issue FACILITIES / SAFETY / PPE 30 Opinion ISG’s Frank Hoard makes a case for independents homing in on the facilities supplies channel

Special Issue FACILITIES / SAFETY / PPE

32 Category Update With the panic stage of COVID over, where now for operators in the facilities, safety and PPE space?

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38 Case Studies IQ Total Source & Lyreco Italy: best practice examples in an ever-growing category

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HOT TOPIC: ON THE OUTSIDE LOOKING IN

44 Research Wearable technology – the smart way to stay safe and healthy

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REGULARS 5 Comment 6 News

16 Green Thinking News 48 5 minutes with... Jean-Pierre Maternowski 50 Final Word Dennis Riffer

June 2022

Independent dealers and resellers have been lauded for their product category expansion during the pandemic, encroaching on the territories of jan/san, packaging, MRO and safety distributors, for instance. But the same has happened in reverse. Large resellers from outside our industry are more than just dabbling in office products – Conrad Electronic and RS Components in Europe and US-based Uline, Grainger, Imperial Dade and MSC Industrial spring to mind. It’s all about the single-source approach.

46 Preview: Big Buyer Not just an Italian job

COMMENT The OPI team EDITORIAL Editor Heike Dieckmann +44 1462 422 143 heike.dieckmann@opi.net Deputy Editor Michelle Sturman michelle.sturman@opi.net News Editor Andy Braithwaite +33 4 32 62 71 07 andy.braithwaite@opi.net Freelance Contributor David Holes david.holes@opi.net

SALES & MARKETING Chief Commercial Officer Chris Exner +44 7973 186801 chris.exner@opi.net Head of Media Sales Chris Turness +44 7872 684746 chris.turness@opi.net Digital Marketing Manager Aurora Enghis aurora.enghis@opi.net

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

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

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

What’s in the (brand) name?

ooking through this issue of OPI, you’ll notice a theme – facilities, safety and PPE to the fore. The importance of the category to resellers, distributors and vendors cannot be overstated. Even features that don’t overtly cover this specific segment more than just allude to it – the Big Interview with Office Friendly’s Jeanette Bresitz is a good example (page 18). Jeanette made it blatantly clear how important diversification is. Then why are we so stuck on the terms ‘office products’ or the slightly grander ‘business products’? Habit, I guess, and perhaps a sense of (false) security and community. In OPI’s case, there’s something else which the entire team discussed at a recent brainstorming staff day. Who thinks of OPI as Office Products International these days? Few I would think. But OPI is a long-established, well-recognised brand – wouldn’t we be foolish to throw that brand away lightly in order to tick some arbitrary consultant-generated box?

There’s no getting away from the fact our industry is changing – massively My colleague Michelle Sturman makes the same point in our brand new Green Thinking news section – the topics we cover in here are much more than just ‘green’, but the name is a brand, so for now at least, we’re sticking with it. Hear more about our plans under the broad CSR umbrella directly from Michelle (page 16). There’s no getting away from the fact our industry is changing – massively. As much as I was talking about vendors exploring different routes to market in the last issue of OPI, to some extent even bypassing the traditional reseller channel, so Michelle this month investigates operators from typically outside our space taking a good look in (page 26). Think RS Components or Conrad Electronic. Their core offering might be elsewhere, but everyone needs office products (here’s that term again) – and the one-stop-shop, especially if combined with superlative e-commerce credentials, cannot be highlighted enough today. Does this give the traditional community the heebie-jeebies? It probably should. As soon as this issue is sent to press, I’ll be heading to the airport for the OPI Global Forum in Chicago – and I’m very much looking forward to answers to the above questions, intense debate and some real takeaways. I’ll report back in the next issue (as much as I’m allowed, given it’ll be HEIKE DIECKMANN, EDITOR Chatham House rules as usual)... The carrier sheet is printed on Satimat Silk paper, which is produced on pulpmanufactured wood obtained from recognised responsible forests and at an FSC® certified mill. It is polywrapped in recyclable plastic that will biodegrade within six months.

Office Products International Ltd (OPI) Focus7 House, Fairclough Hall, Halls Green, Hertfordshire SG4 7DP, UK Tel: +44 20 7841 2950

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

June 2022

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NEWS

Analysis: ODP – the final countdown

A decision on the fate of the Office Depot retail network in the US looks to be imminent There is finally a light at the end of the tunnel in the protracted process to determine the future of the Office Depot retail business in the US. It’s been about 18 months since Sycamore Partners-owned Staples US Retail first tabled a proposal to acquire the whole of ODP. After a knock-back from ODP and potential antitrust concerns about such a deal, in June 2021, Sycamore came back with a $1 billion offer for the consumer-facing business. This comprises around 1,000 Office Depot and OfficeMax stores in the US, as well as officedepot.com.

There is still no word as to the identity of the third party which is competing with Sycamore for ODP’s retail operations

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Over the following six months, there was little communication about the situation, but the message was that both parties were still talking. At the same time, ODP was proceeding with plans to split into two publicly traded entities.

TWIST IN THE TALE In January 2022, ODP – in a dramatic twist – announced that a third party had put forward a competing non-binding proposal, the terms of which were confidential. This caused ODP to delay its spin-off, which had been set to come into effect by the end of the second quarter this year. In the background however, the company proceeded with separating the internal components of its consumer and B2B operations.

David Centrella

In its Q1 2022 earnings release in early May, there appeared to be little in the way of concrete developments. “The board of directors continues to carefully review the proposals with the assistance of its financial and legal advisors to determine the course of action that it believes is in the best interests of the company and its shareholders,” ODP wrote. During the subsequent analyst conference call, ODP CEO Gerry Smith revealed that the expectation was “to bring the process to a conclusion in the near term”. Clarifying what “near term” meant following an analyst’s question, CFO Anthony Scaglione said the company expected to provide an update before the end of the second quarter, ie by the end of June. As such, within the next few weeks, it seems likely that it will agree a sale to one of the parties, or reject the offers and resume its plan to spin off the consumer business. There is still no word as to the identity of the third party which is competing with Sycamore for ODP’s retail operations. Indeed, OPI sources have expressed a degree of scepticism about the seriousness of this offer. Nevertheless, it certainly ups the ante for Sycamore, with the combination of its own Staples network and the Office Depot stores looking its best – and possibly only – exit option. Another way of looking at it could be that the third party in question intends to engineer a merger of the two retail chains, something which would point to a financial buyer. But this is purely speculation. Assuming we get a decision on the consumer business soon, it still leaves question marks over how ODP intends to develop its B2B platform: the buyer/seller marketplace Varis; its distribution and sourcing operations Veyer; the Business Solutions Division (BSD) contract arm; the acquired Federation dealers; and Grand & Toy in Canada. SALE OR SPIN? Hopefully, things will become clear once the retail “sale or spin” situation is resolved. ODP has promised to hold a full-blown investor day, during which it intends to provide an in-depth presentation about the company’s B2B strategy. Meanwhile, BSD – which has been struggling with profitability – has a new leader. 20-year ODP veteran David Centrella was recruited in May to succeed Stephen Mohan. Smith said this decision was taken “after reviewing several aspects of our business and the current and future opportunities to pursue profitable growth”. He referred to Centrella’s “financial discipline” and to several “deep dives” made into contracts, possibly suggesting margins are not quite what they should be. Whether margin improvement is what Smith meant by the “accelerated profitable growth” at BSD that he said Centrella’s appointment would bring remains to be seen. If it becomes separate from retail, it will presumably lose scale and purchasing power. Consequently, if growth is to accelerate meaningfully, then something more strategic than tinkering with contract pricing might be required.

NEWS

ISG rebates top $10 million Jordan Kudler

Mike Gentile

US dealer organisation ISG announced that, as of 22 April, it had distributed Q4 2021 rebates of more than $10.2 million to its dealers. The amount includes annual year-end rebates, with ISG Chairman Jordan Kudler calling the figure “strong”, in spite of the challenges the group’s members faced during the COVID-19 pandemic. Kudler also commented on the recent decision by wholesaler S.P. Richards (SPR) to end its contract with ISG for the group’s RDC buy direct initiative (see Big Interview, OPI April/May 2022, page 14). “As most ISG members know, I have been a strong proponent and user of ISG’s long-storied RDC programme which initially launched in 2004,” said Kudler. “While [it] was a great way to buy direct, SPR announced in February that it will not be renewing the contract to provide RDC support. Therefore, ISG has relaunched the Buy Direct Sell Brands campaign. [This] aligns with the group’s fundamental purpose and encourages our membership to promote and buy directly from the suppliers that support [us] with rebates and other programmes.” Speaking to OPI in a follow-up call, ISG CEO Mike Gentile was clearly disappointed the RDC programme had come to an end, but recognised that the market needs evolve. In any case, the group has carton programmes with both leading business products wholesalers in the US which count towards its buy direct volumes. Gentile also provided an update on ISG’s national accounts unit EPIC Business Essentials (EBE) following the sudden departure of its Managing Director Scott Zintz earlier this year. He is currently overseeing EBE himself and said he was enjoying getting out and meeting customers face to face. He added that his job was made easier by the “outstanding” team he has at EBE. The hunt for a permanent Managing Director is ongoing, but there does not appear to be any rush into making an appointment.

Paper Excellence sells mill

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New Domtar owner Paper Excellence has confirmed the sale of its Kamloops mill in Canada. It has entered into an agreement with Kruger Specialty Paper Holding to sell the Kamloops pulp facility in British Columbia for an undisclosed amount. The divestment was a condition imposed by the Canadian competition authority for enabling Paper Excellence to acquire Domtar. The transaction is expected to close by the end of June.

End of the road for Office Centre

There was a double whammy of bad news in April and May for troubled European office supplies retailer Office Centre. As previously reported, the company’s entities in Germany and the Netherlands – comprising more than 80 stores – had been placed into administration. The locations were still operating while administrators in each country attempted to find a buyer.

However, despite interested parties in both countries, no offers were forthcoming and, at the time of writing, the businesses were being wound down. The 34 stores in the Netherlands closed in mid-April, with 50 Staples branded outlets in Germany following suit a few weeks later after their inventory was sold off. In all, the closures resulted in more than 1,100 staff losing their jobs. Office Centre Managing Director Oliver Lux said the outcome was “extremely painful for all employees”, particularly as the business had been “healthy and profitable” before the pandemic. The liquidation of Office Centre brings to a sad end the short-lived ownership of Standard Investment, which acquired the entity in 2021. Its other business products investment, Staples Benelux, has not been affected by the issues at Office Centre.

New public sector framework for Amazon Business Amazon Business in the UK has been awarded a framework agreement with the North Eastern Universities Purchasing Consortium (NEUPC). It is the second public sector contract for Amazon Business in the UK, following the 2019 award by YPO. The three-year, tail-spend contract with NEUPC officially came into effect on 10 January 2022, following what was called a “detailed compliant process” under public contract regulations. In addition to the awarding body, four other higher education consortia will be able to ‘piggyback’ onto the framework, meaning it will be available to around 300 organisations.

NEWS

Sylvamo to exit Russia Paper giant Sylvamo has confirmed it is undergoing the process of selling its operations in Russia. In March, the manufacturer said it was evaluating its future in the country after suspending operations there. A few months later – in mid-May – as it reported its first quarter earnings, Sylvamo said it plans to exit the market altogether. Calling the move “the right thing to do”, CEO Jean-Michel Ribiéras asserted that there had already been a significant number of non-binding agreements for Sylvamo’s Russia operations. A sale agreement is expected to be reached quite promptly, but closing a deal – which will need to be ratified by the Russian authorities – is set to be more complex and time consuming. Russia is (or was) an important market for Sylvamo, accounting for 15% of total revenue in 2021, or approximately $525 million. Its assets include the highly efficient and profitable Svetogorsk mill, while its local brand SvetoCopy is the market leader in Russia and, together with sister brand Ballet, has a supply position of around 45%. Sylvamo said it will service its European customers from its Saillat facility in France and from Brazil. It added that the economic impact of leaving Russia would be negligible given the strong recent performance from its other markets. Meanwhile, Sylvamo has implemented a ‘poison pill’ shareholder rights agreement to fend off a potentially hostile takeover move from private equity firm Atlas Holdings, the owner of the TOPS office products business. After Atlas revealed it had accumulated nearly 14% of Sylvamo’s common stock, the manufacturer adopted the rights agreement, which effectively prevents the investment firm from acquiring any more shares or entering into a pact with other leading investors. Nevertheless, Sylvamo confirmed it would still consider offers that are “in the best interests” of its shareholders.

Steelcase to acquire US furniture firm

Steelcase has agreed to acquire HALCON, a Minnesota-based designer and manufacturer of wood furniture for the workplace. HALCON was founded in 1977 by Peter Conway and specialises in custom wood and executive-level tables, credenzas and desks. In the 12 months to the end of April 2022, it posted revenue of around $70 million and had a backlog of customer orders of approximately $56 million. The acquisition – which is expected to close during Steelcase’s June-August quarter – involves acquiring HALCON’s equity for $127.5 million. In addition, there is a potential further consideration of up to $9.5 million payable over three years, dependent on the achievement of certain performance targets and the continued employment of Conway. Steelcase intends to fund the deal using cash on hand and availability under its credit facility.

ON THE MOVE

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Kapelusz takes over at RAJA France Brice Kapelusz – the eldest son of RAJA Group CEO Danièle Kapel-Marcovici – has been named as Managing Director, Operations at RAJA France. He will be in charge of the €260 million ($275 million) subsidiary and will also sit on the group’s executive committee and strategy board.

Brice Kapelusz

Weedall to join OT Group There has been an interesting job move in the UK business products space, with long-standing EVO Martin Weedall Group exec Martin Weedall leaving to join rival organisation OT Group. Weedall had been with EVO in its various iterations for 31 years. Much of that time was spent in the wholesale channel, first with Kingfield Heath and then at VOW. Most recently, he was Group Operations Director at Banner. After a short period of gardening leave, Weedall will join OT Group – which includes OT Wholesale and OfficeTeam – as Operations Director. The organisation recently moved its main distribution centre to the former Office Depot UK contract facility near Manchester following last year’s acquisition of this business.

Senior appointments at Fellowes Fellowes Brands has promoted Beth Wright to the role of Chief Commercial Officer. Her expanded responsibilities now incorporate the market-facing aspects of all channels, including the Fellowes Contract Interiors business. Wright’s immediate focus is on North America and also supporting the company’s international subsidiaries. She continues to report to CEO John Fellowes. Meanwhile, the vendor has also created a new executive role – Chief Market Officer. The need for this, Fellowes said, is the result of doubling sales in the past five years through organic growth and acquisitions. Taking on the position is Monica Lopez, who has joined from Stanley Black & Decker, where she was most recently VP of Global Brand Marketing.

Beth Wright

Monica Lopez

There have been a couple of interesting recent developments in the European ink and toner reselling space. Firstly, private equity-backed online retailer TonerPartner completed the acquisition of German rival Druckerpatronen.de for an undisclosed sum. Druckerpatronen.de is a specialist in the B2C segment, with what is described as “a highly visible domain and a differentiated strategy”, and “a comprehensive offering of predominantly high-quality compatible products”. TonerPartner said the transaction is the next milestone in its buy-and-build strategy under the ownership of Rivean Capital. Rivean – formerly Gilde Buy Out Partners – acquired the business from its founding family and investment firm Invision at the beginning of 2021. Later in the year, TonerPartner bought French online reseller Rousselle as part of its expansion strategy “to build a European market leader”. Could those plans include Netherlands-based ink and toner e-commerce powerhouse 123inkt? Reports in the Dutch financial press suggest 123inkt is on the market, as owner Gerben Kreuning looks to cash in on the success of the company he set up in 2000. The business could be worth €500 million ($525 million) after experiencing strong growth during the pandemic and branching out into other categories such as office supplies, cables and LED lights. 123inkt’s last published accounts were for 2019 when it generated revenue of around €163 million. The top line is thought to have grown considerably since then and OPI sources put its operating profit at €50-€60 million.

Promotions at Zebra Pen Zebra Pen President Clem Restaino has been named as an Executive Officer of the manufacturer’s global organisation. It is the first time an employee from a subsidiary outside Japan has been given such a position. In addition to his responsibilities for the US and Canada, Restaino will provide strategic direction to Zebra’s businesses in Mexico and Europe. The company has further promoted Jason Levin to become National Sales Manager Retail in the US as it looks to expand its omnichannel offering.

Jason Levin

European reseller Viking has brought back its annual general catalogue. After being axed in 2021 – when the company was still owned by private equity – the publication has been given a new lease of life under RAJA, which acquired Viking last year. The 400-page publication was released to customers at the end of April and is available in German, English and Dutch. Viking highlighted the catalogue’s redesign, including a more personal touch that not only features products, but also benefits and services for SMBs. It was also keen to point out the CSR focus of Viking and its parent company RAJA. The return of a printed catalogue for Viking follows a similar pattern to other businesses in RAJA’s Office group – JPG, Mondoffice and Kalamazoo – after they were acquired from Staples Solutions in 2019.

Shahbaz Khan

Stabilo names UK & Ireland chief Stationery brand Stabilo has appointed Shahbaz Khan as its new Market Director for the UK & Ireland. He joins the vendor from toy manufacturer Clementoni, where he spent almost nine years, becoming its UK & Ireland Country Manager in 2016. Before that, Khan was a toy buyer for retailer Argos. Stabilo said Khan would bring fresh energy to the brand, while his experience would help it grow in new markets and demographics.

Key hire at AFFLINK US jan/san and facilities group AFFLINK has appointed industry veteran Todd Gatzulis as SVP of Business Development. In this role – in which he reports to AFFLINK CEO Dennis Riffer (see Final Word, page 50) – he will oversee the organisation’s corporate sales and supply chain functions.

Todd Gatzulis

Glenn Bowen

ExaClair adds to sales team ExaClair, the UK subsidiary of Exacompta Clairefontaine, has appointed Glenn Bowen as National Account Manager. Bowen is a well-known personality in the UK stationery and office products circle, having spent the past 11 years at Pukka Pads.

June 2022

Clem Restaino

Viking resurrects annual catalogue

NEWS

M&A moves in European print consumables channel

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BOSS Leaders of the Future hold motivational conference UK office products trade association BOSS hosted a sell-out Leaders of the Future (LOTF) conference at the end of March in London, during which two new co-Chairs were announced. The theme of the day was sustainable leadership, with three speakers relating their own unique perspectives on the topic. Drawing on her experience as an Olympian and world champion, keynote speaker Anna Hemmings discussed how to build resilience, exploring aspects such as creating a culture of trust, openness and honesty, and embracing healthy conflict. Richard Boon, Managing Director of sustainable integrated marketing agency Webmart, shared his journey of aligning people, profit and planet to look to the future. Managing Director of Commercial Simone Hindmarch then joined BOSS CEO Amy Hutchinson in conversation to explain how she leads a £70 million ($87 million) business services company, constantly ensuring that sustainability is at the heart of how it operates.   Eight roundtables were hosted by some of the UK business supplies industry’s most notable leaders and led to interesting conversations around self-awareness, personal branding, trust and well-being. The final session was a lively discussion which, among other issues, dealt with women and diversity in the workplace. In accordance with the LOTF by-laws, Chair Scott Castle from Staples UK stepped down after two years of service but will remain on the committee. Taking over as co-Chairs are Alex Stone, Head of Sales at Office Friendly, and Rachael Lewis, Sales Operations Director at OT Group. Commenting on the change, BOSS CEO Amy Hutchinson remarked: “The whole LOTF committee and I congratulate Scott for his exemplary leadership over a very challenging two years. I am absolutely delighted to welcome both Rachael and Alex to their co-Chair positions. Each has unique strengths which I believe will be invaluable to the LOTF committee moving forward.”

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UPM strike ends

The European paper channel breathed a collective sigh of relief at the end of April when UPM announced it had reached an agreement with a union to end their long-running industrial dispute. UPM’s Finnish production sites had been idle since the start of this year, causing shortages across many product sectors, including labels and office paper. They are now operating again after the manufacturer and the Paperworkers’ Union negotiated business-specific collective bargaining agreements for the five UPM units affected by the strike. UPM said it will prioritise existing customer orders and restart deliveries “as soon as possible”. However, it is expected to take several weeks – or even months – for the situation to return to normal. The squeeze on supply has been one of the factors behind steep price increases for paper and paper-based products in Europe recently – average selling prices have gone up by more than 50% in the past 12 months.

Comercial del Sur expands franchise brand

Spain-based office products group Comercial del Sur is expanding the Rouge Papier banner into its home market. Comercial acquired French wholesaler and franchise operator RP Diffusion in May 2015, shortly after the business had gone into administration, renaming it Comlandi. Its assets included 300+ franchised Rouge Papier outlets. Following its annual convention in Malaga, the group confirmed it will launch Rouge Papier in Spain. The aim is to create a network of outlets ranging from 30-250 sq m (300-2,500 sq ft) in size, backed by an e-commerce site. Comercial del Sur is targeting current operators in the sector as well as new entrepreneurs. It said negotiations with “numerous potential partners” are ongoing and that it shortly expects to announce the first Rouge Papier points of sale in Spain.

Management handover at COLOP COLOP CEO Ernst Faber has retired after a career at the stamp manufacturer that spanned almost 40 years. 30 of those were in charge of the business, first in tandem with his cousin and COLOP founder Karl Skopek, and then as sole CEO. Last year, Skopek’s son Christoph was appointed as a Managing Director at the firm, sharing management duties with Faber. Following Faber’s retirement, he has now taken over the former CEO’s responsibilities. He has been joined on the leadership team by Franz Ratzenberger. The long-serving COLOP executive has assumed the position of fellow Managing Director and will focus on the vendor’s sales and marketing areas in this role. Faber will remain a partner in the business and be available for support if required.

L-R: Franz Ratzenberger, Ernst Faber, Christoph Skopek

NEWS

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IN BRIEF

FACILITIES / SAFETY / PPE

We are seeing drastic changes in our customers’ working environments […] This requires us to come up with innovative new products and services, and enter into new partnerships with suppliers across the globe

$50 million

Decline in 3 M disposab le mask sales, Q1 2 022 vs Q1 2021

Maria Zesch, CEO, Takkt

$150 million

Impairment charge recorded by Essity in relation to its exit from the Russian market

n Significantly n Somewhat n Not at all

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Resellers, how has the mix of facilities/PPE/ safety items grown in your portfolio since 2020?

Europe-based safety and PPE supplier Delta Plus reported Q1 2022 revenue of €99.2 million ($105 million), 21.8% higher than in the first three months of 2021.

14%

opi.net poll

43% 43%

19.1% Daily sales growth at Grainger’s Zoro e-commerce business, Q1 2022

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US jan/san distributor Envoy Solutions has bought Arkansas-based reseller Sigma Supply – its 12th acquisition since August 2021.

Kimberly-Clark Professional’s scholarship programme, in collaboration with ISSA, will fund training for cleaning professionals on the theme of ‘Infectious Disease Awareness in the Workplace’.

Spec FAC SAF

PICTURE OF THE MONTH Private equity firm Advent International has bought a “significant stake” in North American jan/san and facilities products distributor Imperial Dade, although Bain Capital has not exited altogether. The deal came as Imperial Dade entered the Canadian market with the $190 million acquisition of Veritiv Canada – which took its annual sales to $5 billion.

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GREEN THINKING On a mission

You may have noticed that we have included a Green Thinking section in the regular OPI newsletter emails over the past few weeks. We also published a podcast where I chatted to our News Editor Andy Braithwaite about OPI’s increasing coverage of all things sustainability and CSR (see OPI’s ‘CSR mission statement’ below and check out www.opi.net/podcast). While OPI has focused on these topics for a long time, we feel it is time to seriously ramp up coverage, over and above our annual Green Thinking special issue at the end of the year. If you’re wondering why we have kept the title ‘Green Thinking’ when environmental, social and governance (ESG) is so much more than just sustainability, the answer is simple. It is a well-known OPI brand. But rest assured, we will be covering all aspects of ESG, including diversity, equity and inclusion (DEI). You’ll see a lot more of both these acronyms in the future. As a trusted source of information, we are in a position to help the industry become more sustainable – in all its guises. Moving forward, you’ll find plenty of news, thought leadership and opinion articles, features and case studies, not only in these pages but across various OPI platforms. To achieve this, I’d like to call upon our readers to get in touch with Andy for any news-related stories or feel free to email me if you’d like to contribute in any way. I look forward to hearing from you.

Sustainability project tops Lyreco innovation search European reseller Lyreco recently held its first Demo Day event as teams from across the group pitched new ideas as part of the company’s intrapreneur programme, Lyreco Pioneers. In the inaugural year of the initiative, the first round of Lyreco Pioneers had attracted 261 entries. The brief called for concepts that could either help simplify the way in which Lyreco manages internal or customer processes or further the work already being undertaken by the company as a leader in the sustainability space. After the initial selection process, six ideas were taken into the ‘incubation phase’. This provided the selected teams with an opportunity to be coached on what it takes to develop a business concept by external partner Schoolab, an innovation studio that specialises in training clients in responsible innovation. At the Demo Day in the Belgian capital Brussels, the six teams presented their projects to a panel of internal and external judges in front of an in-person and online audience. They had just six minutes to convince the judges why their idea should progress to what is known as the ‘acceleration phase’. The winning entry was from Jaroslaw Chwastowicz and Krzysztof Szewczyk from Lyreco Poland. They pitched a Sustainability Dashboard concept, and now have four months to turn their prototype into a live service that can be tested with customers. “The launch of Lyreco Pioneers provides our teams with an opportunity to release their pioneering spirit,” said CEO Greg Liénard. “To be a pioneer, you need to push the barriers, to look at the impossible and go further to challenge the status quo. Sometimes it is difficult and sometimes we fail, but we consistently try to get better – particularly when it comes to sustainable practices.” Programme leader Marc Curtis added: “Through the incubation period, the teams had an opportunity to learn so many new skills partnering with Schoolab. From design thinking to running customer research, they were exposed to the methodologies required to take an idea to the next stage. This valuable experience will make them great innovation ambassadors within our organisation.” The reseller will begin the search for its next group of Pioneers in September.

Best Buy launches home pick-up recycling

MICHELLE STURMAN, DEPUTY EDITOR

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CSR MISSION STATEMENT

OPI aims to be a driving force behind the business supplies industry’s move towards more effective environmental, social and economic governance. Our goal is to facilitate meaningful conversations that help keep sustainable development at the forefront of every business action.

US-based retailer Best Buy is launching a service to collect old tech from customers’ homes and then recycle it. Anyone in the country can now go online and request pick-up and recycling for old and unwanted electronics through Best Buy’s Standalone Haul-Away service. For $199.99 (or $160 for Best Buy Totaltech members), it includes two large products (such as TVs, major appliances, monitors and all-in-one computers) and an unlimited number of select smaller items (including laptops, cameras, phones, etc). This new offering is in addition to the current Haul-Away service offered by Best Buy when customers order a new appliance or TV. Consumers can also continue to drop off for free up to three electronics items per household per day at Best Buy stores. Tim Dunn, Best Buy’s Head of Environmental Sustainability, pointed to the company’s role in being there for the entire life cycle of a product, from the time a buyer starts shopping until the item is responsibly recycled.

Dr Luiz Fernando do Amaral

Microsoft has published findings from a third-party study – Summary of Sustainability Benefits of Microsoft Device Repair – that evaluated the benefits of the company improving the repairability of its devices. It was conducted in response to a shareholder resolution filed by advocacy group As You Sow, which was withdrawn after Microsoft agreed to increase consumers’ options to repair their devices by the end of 2022. The report recommends several actions Microsoft can take to improve the repairability of its devices and concludes that doing so would significantly reduce waste generation and greenhouse gas (GHG) emissions. Key findings include: • For the seven devices evaluated, the study showed that repairing the product instead of device replacement can yield up to a 92% reduction in potential waste generation and GHG emissions. • Greater than 20% of the net sustainability benefits of repair are determined by the transportation method and logistics for delivering devices to repair facilities. • ‘Mail-to’ repair services offer the lowest GHG emissions, even over long distances, compared with other transportation methods, such as consumers driving their own vehicles to repair facilities. “Microsoft has communicated that these findings have been embraced throughout the company, which is laudable and signifies that successful implementation is more likely. Just one year ago, we were hearing a different message on device repair and now, with the release and adoption of these study findings, the company is demonstrating important action to leverage device repair as a significant mechanism for meeting its climate goals,” said Kelly McBee, Waste Programme Coordinator at As You Sow. To fulfil the remainder of its commitments to As You Sow, Microsoft will continue to use these findings to expand the availability of certain parts and repair documentation beyond its Authorized Service Provider network – which has recently begun. It will also initiate new mechanisms to enable and facilitate local repair options for consumers.

Bureau Vallée opens eco-designed store

French office supplies retailer Bureau Vallée recently opened its first outlet specifically designed with the environment in mind. The idea was the brainchild of Olivier Lepelleux, a Bureau Vallée franchisee in the Loire Valley region of France. His store was initially due to have refurbishing work done on it in 2020, but this was delayed due to the pandemic. In the meantime, Lepelleux completely rethought the project and developed a store concept based on carbon-positive building principles and low emissions. 18 months later – six to find contractors capable of doing the job and another 12 for the building work itself – and the 509 sq m (5,090 sq ft) shop opened this February. It includes: • A double-insulated timber frame of almost 930 sq m. • A roof that is entirely covered with solar panels – this meets the store’s needs, with excess sold to energy providers (resulting in savings of €17,000/$20,000 a year). • A natural ventilation system that reduces the need for air conditioning. • Two large skydomes providing natural light throughout the day, complemented with an LED lighting system. Lepelleux is now looking forward to developing the concept on a larger scale within the Bureau Vallée network.

June 2022

A record number of companies are setting science-based climate targets, according to new research by the Science Based Targets initiative (SBTi), the global body enabling businesses to set emission reduction targets in line with science. The SBTi has published its third annual assessment of the initiative’s impact since its launch in 2015. The 2021 progress report, titled Scaling Urgent Corporate Climate Action Worldwide, revealed that the SBTi has entered a period of exponential growth, with SBTi companies now representing over 33% of the global stock market capitalisation of $94 trillion – up from 20% in 2020. Dr Luiz Fernando do Amaral, CEO of the SBTi, said: “The world today is faced with many challenges. There’s the devastating Russian war in Ukraine, the ongoing pandemic and the increasingly urgent climate crisis. “At this critical time, we cannot let ourselves be divided. In the face of these existential crises, the SBTi will continue to work with governments, companies and NGOs through strong collaboration, healthy debate and scientific research to reinforce 1.5°C corporate climate action as the new normal.” He continued: “The science is clear – we are already experiencing the impacts of climate change, and continuing on the current trajectory equals catastrophe. This report shows that the value the SBTi brings to society is more needed now than ever before – we must continue to drive the exponential growth of science-based targets and make them ‘business as usual’ for companies and financial institutions worldwide.”

Microsoft report confirms benefits of right to repair

GREEN THINKING NEWS

More firms adopting science-based climate targets

BIG INTERVIEW When Jeanette Bresitz joined Office Friendly a year ago, she quickly addressed some simple necessities for the UK group’s dealer members. Throwing off the shackles of a restricted core offering was just one of them

BROADENING

horizons

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ith 25 years of industry experience under her belt – in a variety of reseller and wholesaler environments – Jeanette Bresitz joined the UK dealer group fraternity in June 2021 when she became Managing Director of Office Friendly. Founded in 1994, Office Friendly was born out of wholesale operator Kingfield, with long-standing and close ties to what eventually became the EVO Group of Companies and VOW Wholesale within that entity. One of many – although slowly depleting and/ or consolidating – dealer groups in the UK, Office Friendly has continuously evolved and moved with the times, with all of its previous leaders putting their unique stamp on the cooperative. Bresitz is no different. Coming on board when the country was still in the midst of battling the coronavirus pandemic, she urged dealers to learn all they can about product adjacencies and then diversify with a consultative approach. All the while managing inflationary pressures and maintaining profitability in a challenging macroeconomic environment. Easy? No. Doable? Very. OPI’s Heike Dieckmann caught up with Bresitz for a glimpse at the current workings of Office Friendly and the UK business supplies space at large.

I left to go travelling – one of my big passions in life – and 18 months later joined Spicers where I stayed, in various roles including merchandising and marketing, for 12 years. I was Director of Marketing when Spicers merged with OfficeTeam to become SPOT Group and moved into a sales operations and communications-led position when that happened. I caught the travel bug again and spent another 12 months travelling before doing some consultancy work. Prior to starting my current role at Office Friendly in June last year, I worked for Staples Solutions as a member of the UK management team for about three years, part of which now falls under the Banner umbrella, of course, one of the components of EVO Group.

OPI: Most people in the UK will know you pretty well from your various positions in this industry over the years, but we’ve never actually had an interview with you before in OPI. So Jeanette, could you give a summary of your career for our international readers? Jeanette Bresitz: Sure. As you say, I’ve been around this industry for some time, actually all of my professional career since I left education. I started at Viking in the late 1990s and then, within that organisation, worked for both Viking and Office Depot for about seven years as part of the category team.

OPI: It must have been quite a year, with all the ups and downs COVID still had in store for us. JB: Yes, it’s been a whirlwind, especially coming back into the dealer side of the community in the UK again. I’ve spent the past 12 months trying to develop and focus the team, understanding our membership and fostering supplier relationships. Coming from what can perhaps be described as the ‘enemy camp’ that was Spicers, it’s the first time in my career I’ve worked alongside VOW, and I’ve spent a lot of time building relationships with the teams there.

BIG INTERVIEW Jeanette Bresitz

Some members turn over very little in the core office supplies segment because their focus isn’t on our industry

JB: The membership tally is slightly smaller with about 130 dealers, but their combined sales are in the region of £500 million. Most of our members are UK based, but we do have a couple of Irish dealers as well.

OPI: We interviewed then Managing Director Steve Harrop in 2015 when, I believe, Office Friendly had approximately 160 members with combined revenues of £465 million ($573 million). How does that compare to today?

OPI: Is it still a cooperative? JB: Yes, we are a member-owned cooperative, with each dealer having an equal vote and share in the business. We’re a not-for-profit organisation, so any monies we generate go back into developing

June 2022

OPI: What did you find at Office Friendly when you joined? Has the group changed fundamentally as a result of what’s happened over the past couple of years? JB: It’s probably changed the type of support we give to our membership and also the collaboration between individual members. We’ve seen so much community spirit come into play as businesses – and people individually – have struggled during the pandemic. There’s been a lot of care and support for each other, irrespective of competitive concerns. And our members have been looking to Office Friendly for guidance and leadership during what have been difficult but also opportunistic times.

OPI: Do you have a dealer sweet spot? I know Commercial is a member, but that’s not necessarily typical in terms of the type and size of company you attract, is it? JB: Commercial is our biggest member. As regards anything ‘typical’, it’s hard to say. It’s more about mindset rather than size. We tend to attract a membership of £1 million upwards and many of our solutions are probably a better fit for larger organisations, but they are very diverse companies, all aiming to grow. That said, some members turn over very little in the core office supplies space because their focus isn’t on our industry; they come from outside our space, but want to be part of an organisation with solutions or connections to help them do more in it.

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the group. Annually, based on profitability, we also try to pay a member dividend. Thanks to Julie Hawley who was in this post before me, Office Friendly is in a good, profitable place right now. Our financial year ends in June, and we’re well on track to hit and exceed the targets set.

As a consequence, quite a lot of them actually brought some of their team members back from furlough long before it ended, so I don’t think too many were still reliant on it at this point. There has been a certain amount of downsizing too, of course, whereby organisations have looked really hard at the staffing resources they need.

OPI: For the size of the market, the UK still has an extraordinarily large number of dealer groups. Firstly, what is Office Friendly’s specific USP and, secondly, do we need so many groups? JB: Our biggest USP in my mind is the team which has a great relationship with and understanding of our membership. Other than that, there are three key things I would highlight that we heavily invest in and which add value to our members. The first is Kascaid, our bespoke marketing solution, which has a dedicated marketing team that reports into our Marketing Director Katie Metcalfe-Roberts. They provide a wide range of services, from web development and digital content to branding and traditional print marketing. The second is our Weaver programme, a social sustainability initiative and accreditation scheme whereby we partner with independent sustainability consultancy Avieco. Our members can participate in this programme and achieve accreditation for their business from a sustainability perspective. It’s also a long-term initiative inasmuch as businesses need to continually demonstrate a plan of improvement across five key areas of sustainability – accreditation occurs every two years to monitor progress against set targets. Over the past couple of years, we’ve seen the number of members participating in the Weaver programme grow considerably. Finally, we have our Pioneer learning and development programme. This is probably the one which will see the most new investment in the short term. In fact, we’ve just recruited a new Learning and Development Officer, James Barras. We spend a lot of time and energy on training within our member organisations to help develop and grow their teams and give them the right skill set to become – or stay – successful.

OPI: Have your membership numbers been affected at all? JB: It’s been pretty static over the past 12 months since I’ve been there. We have seen some consolidation with members looking to exit the business. We, as a group, try and help with this from within the membership, as we have some

OPI: There were concerns that, at the height of the pandemic, many companies were being carried by government financial support schemes. These have long expired now. How have your dealers been faring since this support was withdrawn – has there been a massive fallout? JB: Certainly not since the withdrawal of the scheme, definitely not. Throughout COVID, we saw a number of members close their doors, but not as many as people had predicted in the early days. In many cases, it’s the entrepreneurial spirit – so typical of independent operators like our members – that has kicked in. Dealers have found different ways of supporting their existing customers and finding new customers and markets they can sell their goods and services to.

New working patterns represent great opportunities laced with considerable threats. [...] The profitability side of the equation clearly needs to change great dealers that want to continue their growth through acquisition. Occasionally, we also see a member leave and choose either to go to another group or become completely independent. I never actually answered your earlier question about whether we still need all these different groups. What I’ve just said is probably the answer – all the groups represent and do something very slightly different, not to mention the fact that membership structures, number of dealers, services offered, etc, are quite varied. It depends on what, as a dealer, you’re after and what kind of service you seek from your group. None of us are one-size-fits-all. OPI: Regardless of these disparate focus areas, do you think there’ll be more consolidation among the groups? JB: There will be, yes, because as the UK dealer market consolidates, the groups will follow – they have to, and hopefully it will be to the benefit of the dealers and the organisations we all trade with. OPI: Let’s move to a topic that has affected all of us in some way – hybrid working. How difficult is this for a dealer to address, particularly from a profitability point of view? JB: New working patterns represent great opportunities laced with considerable threats. Different – and more varied – products are needed to cater for the homeworking, mobile and office demographics. But how can dealers deliver cost-effectively to both an office block and a residential address? The answer lies somewhere between what the wholesalers can do and dealers’ own last mile delivery. The profitability side of the equation clearly needs to change, as you rightly say, as average order values are lower. That said, when people are working from home, for example, they don’t necessarily buy a value product, but instead

Most dealer systems can provide a slick experience online – it’s a must and non-negotiable now. Customers expect to be able to find what they want, know it’s in stock, that it’s going to arrive tomorrow or, if it’s not, when it is going to be there. Fundamentals. The component we potentially lack in the independent dealer channel right now is the last mile status and the visibility of it. If your order comes from Amazon or is delivered via an operator like Evri (formerly Hermes), you know exactly where your parcel is, when it’s going to arrive, and that Ian or Frank are going to deliver it. That’s the piece we need to work on, because it’s become an expectation today.

OPI: Referring to the front rather than the back-end, to what extent are dealers providing the digital experience people want? That’s long been a major criticism directed at the dealer community – and one or two other players – the reluctance to really embrace online. JB: There are some great industry systems out there. Whether they can provide a singularly unique experience to an end user, comparable to that of a large organisation, I guess is debatable. However, there are two kinds of consumers we’re talking about here. The first group are those who just want to go and buy what they know they need online, without ever transacting with an individual. But there are many – the second cohort – who really value that consultative sell and the support of a reseller, whether it be a dealer or a contract stationer.

OPI: You mention the consultative role which brings me to the sales rep function and the notion of the personal touch that for so long was hailed as the USP of local independent dealers. How important is this now? JB: It’s changing and COVID has probably just accelerated what was inevitable anyhow. Many administrative roles are disappearing. Who still has a purchasing manager? Ordering what you need to ‘run’ a workplace – office or otherwise – isn’t the job anymore, it’s an add-on and a distraction. As such, a dealer’s role is to make this distraction go away as quickly and conveniently as possible. Part of doing this well is for a sales person to know and understand enough about their customers and their pain points to then be able to give them an experience which takes these pain points away.

BIG INTERVIEW Jeanette Bresitz

something they feel comfortable putting into their own space. So product aesthetics, quality and longevity matter a lot more in this setting. Logistics are less of an issue, as the UK is pretty well set up with end-user carrier partners used to delivering into this environment. Again, the ‘but’ is that products need to be well priced to allow everybody in the supply chain to be profitable. The IT side from a consolidated ordering and invoicing point of view and how a dealer can really facilitate and manage it is another factor. It’s not insurmountable, although I can certainly see a bit of leakage whereby customers order more than they have historically done outside of specific contracts which are in place.

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Jeanette Bresitz BIG INTERVIEW

can offer differentiation in terms of brands or products. Again, this is particularly true for the furniture sector. These resellers offer something that currently isn’t available through the normal channels or certainly not in a differentiated form. OPI: This brings me to the wholesalers. VOW has been very close to Office Friendly for many years, so much so that you even shared the same building. JB: We did, but not anymore. We moved into our own premises in September 2021. VOW relocated first because of issues with the building we were both in (Kaye House) and for a short while it housed Office Friendly in the new facility too. But as a growing organisation, it just wasn’t right for us so I took the decision in the early part of my tenure at Office Friendly to move to a separate building which gives us space to develop and be our own organisation. So, while VOW continues as our wholesale partner, we’re not intrinsically linked anymore, through a joint building, from an IT perspective or in any other way. OPI: But is the relationship still good? JB: It is. And it goes back 28 years – Office Friendly’s entire existence, so there’s a lot of history between us. Yes, there are challenges, and it wouldn’t be right for us not to challenge VOW on price, service, assortment and all of the things that are really important to our members. But we work together to hopefully become better.

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OPI: Specifically with products in mind, do you think dealers have done a good job at diversifying into adjacent categories? JB: In the main, dealers have been really creative in terms of adding value to their customers and identifying where they can sell a product or service into their customer base which may not necessarily come from mainstream wholesale. COVID has accelerated this mindset of, “What else should we be doing for our customers and how do we do it well?” Because the more they can do well, the closer it keeps that end user customer. PPE obviously carried many operators in our industry for a while, but there was also a fairly quick realisation that this bubble wasn’t going to last forever and they needed to think beyond it. Prior to COVID, dealers had already embraced the jan/san and the breakroom side of things. I see many now becoming end-to-end interiors specialists in the wider furniture category as opposed to just supplying desks and chairs. They are providing workwear and embroidery, consultation and fulfilment services. Some have even seen a gap in the market and started to resell into the dealer community.

OPI: You mean a wholesale component? JB: Exactly. A couple of organisations immediately spring to mind that have created a wholesale niche to their business where they

OPI: So what would happen if VOW got sold to another entity? What, if any, impact would it have on you and your dealers? JB: It would depend on the new owners of that VOW organisation and what their plans were to grow and develop their newly acquired business. I guess it would be an opportunity for us to show those new owners the value Office Friendly brings. It would also potentially come with more investment into an organisation which can then bring better things to the dealer community.

Our membership has become incredibly diverse in terms of what really drives their organisations It’s not something that keeps me awake at night, to be honest. While our core has always been about having a wholesale partner and a wholesale commitment, our membership has become incredibly diverse in terms of what really drives their organisations and also with regards to what they sell. Traditional office products constitute a far smaller portion of the basket than ever before, but for some members it still allows them to get their foot in the door. As I said before, that might be the reason why dealers which are very much on the fringes of our industry are joining us.

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Jeanette Bresitz BIG INTERVIEW

OPI: How much of your dealers’ spend is with VOW currently? JB: It’s gone down quite a bit. If you look at 100% of a dealer’s basket, what might have been 50% four years ago going through VOW is probably 30% today. It’s because they have diversified into other things and other specialisms. The average cost of a ream of paper or a stapler is very different to that of a bespoke, embroidered t-shirt they might be selling to their end users. It has moved the balance of the split of spend. OPI: Are you saying VOW is still stuck on office products and not diversifying enough? JB: I’m saying that the wholesalers – all of them in our sector – cannot diversify as quickly as a dealer can. I know it’s part of VOW’s strategy, but like many large organisations, the speed to market is lacking. Until now, it has developed aligned bolt-on categories rather than a massive swing to something that’s really differentiated and allows dealers to take something completely different to market. I talked earlier about the entrepreneurial spirit of independents. Their size and that spirit mean they are nimble; they can make a decision to do something today and it can happen tomorrow. This is not possible in a large wholesale organisation. There are processes and systems and all sorts of things which get in the way of doing anything fast. There’s obviously been a considerable change in the wholesale marketplace over the past three years with the demise of Spicers. It has meant the remaining wholesalers – not just VOW – have had to concentrate on supporting dealers and getting them back to a point of stability which may or may not have held up some of this diversification. With an organisation on the scale of Spicers out of the picture overnight, the likes of VOW and Exertis had to quickly bring on board customers they weren’t trading with before, ensuring their core range was still right and relevant to what Spicers may have been servicing previously. It’s all too easy to criticise, not so easy to really fix the problems, I’m fully aware of that.

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OPI: What’s your view on the current state of M&A activity in the UK – and what’s to come? JB: There will undoubtedly be more consolidation and the core of our industry is getting smaller. There’s a benefit in scale for businesses; as a result, you see lots of them – not just in the dealer

For more from the interview with Jeanette Bresitz, such as vendor relationships, global alliances and thoughts on OT Group, see our Xtra content in the June issue on opi.net

channel – on the acquisition trail. We’ve seen plenty of it happening in the UK and continental Europe over the past couple of years and it will definitely continue. OPI: This brings me nearly to the end. What are the biggest challenges right now? JB: Inflation. Irrespective of the channel you are in, it’s probably the biggest challenge today; how you manage some of those inflationary cost changes in your business and still keep yourself in a good, profitable space to develop and grow. Sustainability is another challenge and I think we have a responsibility as an industry here. How do we get to a position whereby we have a good blend of products that drive sales to the end user, while at the same thinking about what happens to those products some way down the line? COVID seems almost gone now, but we’re not there yet and the ramifications will be with us for a long time – we talked about changing work patterns earlier. And, of course, the tragic events happening in Russia and Ukraine are putting further pressure on already stretched global supply chains and markets. These will undoubtedly rumble on for some time, although I sincerely hope that the situation somewhat resolves itself for the poor people of Ukraine soon. Overall, there’s a broad array of challenges, but there are masses of opportunities too, with people starting to see good business growth again. OPI: Finally, in preparation for our chat, I re-read the Big Interview with Steve Harrop and came across his comment that Office Friendly might not be called Office Friendly in a few years’ time. Any comment on this about seven years on? JB: We as an organisation have changed and diversified hugely as the needs of our members have evolved. But we will continue to be called Office Friendly for the foreseeable future, and while we are embarking on a complete rebrand as we speak, it won’t involve us changing our name. OPI: Any specific dates for the rebrand? JB: Our next conference planned for October this year is the big launch date, but we’ll have a soft launch prior to then – you’ll be the first to know! OPI: Looking forward to it. Many thanks for your time Jeanette and your frank insights.

HOT TOPIC

On the outside LOOKING IN

There’s serious intent to delve deeper into the business supplies industry from a broad variety of resellers sitting somewhat on the periphery. They’ve been revealing some interesting strategies to OPI’s Michelle Sturman too...

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he changing world of work has reinvigorated and ramped up interest in our industry from outsiders, including online marketplaces. It has also shone a spotlight on resellers that play by their own rules. OPI spoke to several of these operators to find out what makes them tick, the strategies for success and their thoughts on our sector. Accelerated by lockdowns and the onset of remote, home and hybrid working, e-commerce has become an indispensable portal for end-users. It has modified behaviour, resulting in unique purchasing patterns, with people buying different products from different channels at different times.

THE COMPLETE PACKAGE One company at the forefront of the digital evolution since 2000 is European B2B e-procurement platform Mercateo. Well-known in the office supplies world, it has undergone a recent rebranding, with Mercateo slowly transitioning to its new name Unite. Meanwhile, Unite – launched in 2017 and operating under the same broad umbrella – also comprises a B2B networking solution that directly connects suppliers with buyers. Unite’s Head of International Supplier Management Steffen Hammerla believes the

two operational sides cover all bases – from spot buying, volume purchasing and framework agreements using Mercateo, to creating robust relationships and the ability to negotiate on pricing and services on the Unite networking platform. “We support an entire infrastructure to handle all buying and selling options digitally and this is becoming increasingly crucial in today’s business world,” he adds. Hammerla points out that while online marketplaces are used by customers in place of traditional resellers for tail spend, some categories still necessitate personal relationships. For this reason, Unite is focusing on strengthening its networking platform. “Our goal is to make the network more productive in fostering active relationships. We measure connections, not revenue. The greater the connections, the stronger and increasingly relevant the network becomes. Unite comes full circle as companies involved on the networking platform use Mercateo for spot buying and vice versa,” he explains. Hammerla believes it is no longer enough to simply deliver products from A to B – it’s about differentiation, additional customer benefits and product services. With sustainability, new office concepts and home offices playing an increasingly important role in our sector, ‘traditional’ suppliers

Large resellers from outside our industry are more than just dabbling in office products [...] It’s all about the single-source approach Ruck, meanwhile, agrees with Hammerla’s assessment that there is no way of avoiding getting involved in e-commerce – especially online marketplaces – if a company wishes to be and stay successful in the long term.

RENEWED FOCUS Industrial and electronic solutions provider RS Components has also only relatively recently dipped its toes into our industry. Over the years, the company has morphed from a traditional catalogue firm into a global omnichannel operator of product and service solutions. Describing its go-to-market strategy, Christian Horn, SVP of Product & Supplier Management, says the focus is almost exclusively on B2B, combining a “very strong digital capability” with a 1,500-strong sales force concentrating on key and corporate clients. “While our target customers are engineers, many are based in an office environment, so offering OP and facilities supplies represents a natural extension to consolidate their spend. 25% of our revenues come from categories outside the industrial space, and we have had a modest offering in the OP sector for some time. “However,” he adds, “the recent shift in customer demands around work-from-home, hybrid working and the smart office has generated the need for a renewed focus on the range. So, while we aren’t necessarily a destination supplier for business products, significant growth in this space which complements our broad industrial offering has been noted.” The intention, according to Horn, is to put RS on the map as a trusted and valued partner for OP for both customers and suppliers. The reseller offers a global footprint with over 700,000 products, strong brand equity and digital strength. On that latter note, 4% of revenues are also invested every year into digital capabilities and activities.

June 2022

IDENTIFYING SOLUTIONS Independent dealers and resellers have been lauded for their product category expansion during the pandemic, encroaching on the territories of jan/ san, packaging, MRO and safety distributors, for instance. But the same has happened in reverse. Large resellers from outside our industry are more than just dabbling in office products – Conrad Electronic and RS Components in Europe, and US-based Uline, Grainger, Imperial Dade and MSC Industrial spring to mind. It’s all about the single-source approach. Take Conrad Electronic, which has a direct presence in 16 EU markets as well as in the UK.

B2B constitutes most of its business and five years ago, the company launched a B2B-only marketplace. Talking about its move into our industry, Rado Svec, VP Platform at Conrad, says: “Over time, the needs of our customers expanded as many of them were looking for a one-stop-shop solution. As a result, we extended our category coverage into the office supplies segment. “This has been boosted further by the launch of our marketplace in 2017, enabling us to increase our catalogue from roughly 800,000 SKUs to over seven million items. The office products category is now a sizable part of our business.” According to Svec, a particular strength lies in ad hoc spend, servicing clients that buy across categories where Conrad’s broad product range offers a distinct advantage. “This is supported by our single creditor solution, relevant especially for big companies, with Conrad thus being the preferred party they transact with. “All the while, users enjoy access to pretty much all the currently established transactional channels – from simple website shopping to integration into ERP purchasing systems, PunchOut solutions, private e-catalogues, etc. While customers are moving naturally to digital channels, they can equally use RFQs, email or telephone orders.”

HOT TOPIC Reseller Strategies

have a real opportunity to reinvent themselves – if they don't, they will be squeezed out by marketplaces. “Those that remain will need to figure out their core competencies, logistics, services and especially e-commerce,” he asserts. Utilising an online marketplace may represent the way forward for many resellers, and one familiar name – though perhaps not strongly associated with the B2B space – is eBay. The company is keen to point out, however, that the platform has long evolved from the C2C “buy-and-sell-what-you-find-at-home” place to a modern marketplace with the majority of inventory sold by B2C sellers. “The main reason brands and manufacturers may not currently be working with us is simply because they still hold this outdated image,” remarks Category Manager Business & Industrial Melina Ruck. “This might lead to eBay not being top of mind when thinking about how to enhance their online sales strategy.” While the office supplies category has always existed on eBay, it was only in 2018 that the company started to focus more intensely on this segment. Says Head of Parts & Accessories and Business & Industrial Karin Weissenberger: “We invested in a team in Germany and believe there is lots of potential to be unlocked. It’s why we started participating in OPI conferences and reaching out to brands, manufacturers and dealers within the industry to collaborate and optimise what is offered to buyers on the platform.” Elaborating further, she adds everyone benefits from eBay’s pure marketplace model, giving sellers the opportunity to make use of the operator’s reach and technology platform, and broaden their multichannel strategies.

Reseller Strategies HOT TOPIC

On a smaller scale, Germany’s Schäfer Shop has also transitioned from a traditional mail order firm into an omnichannel and customer-centric market protagonist. “We retain a firm belief that understanding customers will be more successful in the long run than trying to push products or solutions into their shopping basket. As traditional business products resellers claim to be customer-focused, we differentiate by being customer-centric instead,” comments VP Operations Christian Langvad. Explaining the ‘customer-centric’ approach, Langvad says talking about office supplies revolves around convenience and transactional ease; discussing industrial equipment requires a mandatory high level of technical expertise; if a customer is renewing a workspace, it’s about providing a full-service solution. “In the past, there was a marked tendency among OP players to invest their efforts into trying to sell more paper, files or pens. Often, the answer was either attempts to compete on price or to acquire other market players. As this formula turned out to be less effective in achieving

For more comments from OPI’s reseller interviews, see our Xtra content in the June issue on opi.net

business goals, the next ‘big step’ was to extend product ranges into other sectors, hoping to gain share of wallet. Were these initiatives sufficient? I’m not sure.” Forgoing the drop-shipping route is also a key differentiator, he says. Contrary to most other resellers, Schäfer Shop serves its customers with complicated and bulky orders such as furniture or industrial equipment from stock in its warehouse. And it does so largely with its own delivery trucks. Notes Langvad: “The customer is served end-to-end without involving external resources. Our principle and focus are to deliver the best experience in the segments we supply, instead of trying to offer any product imaginable with varying levels of service quality.” LEADING THE WAY Horn believes that changes in buying behaviour and the many category headwinds the OP industry has faced have brought about a lot of consolidation – both among suppliers and resellers. But they have also led our space to always be at the forefront of business model innovation and “running a tight ship”, be that in terms of sales, pricing, distribution and warehouse management or in optimising working capital. On the other hand, he acknowledges that the challenges around growth and profitability have made investments into capabilities in areas such as digital innovation or services more difficult. Conrad’s Svec agrees in principle with Horn, seeing higher dynamism, openness to change and a willingness to transform compared to some other industries. Moreover, he adds that plenty of manufacturers and brands are also reviewing their traditional distribution, in an effort to be closer to the end customer. “They are jumping on the digitisation train with verve and giving up on old dogmas. It is very encouraging.”

CRYSTAL BALL GAZING OPI asked those interviewed for this article for their thoughts on how they see the business supplies landscape evolving over the next few years.

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Christian Langvad, VP Operations, Schäfer Shop We’ve probably never experienced so much substantial change in such a short period of time. The consequences of the pandemic and the tragic Ukraine war are complex, non-transparent and of a long-term nature. I guess companies are focusing on becoming more resilient and stable. On the one hand, this is a wise move, but on the other, I am convinced these events will force many operators in the office supplies space to rethink vital parts of their business model.

Christian Horn, SVP of Product & Supplier Management, RS Components The move away from traditional office working will continue to shift and shape demand, as will the ever-increasing relevance of technology in the workspace and the trend towards smart offices.

Karin Weissenberger, Head of Parts & Accessories and Business & Industrial, eBay The office supplies industry is evolving and in the past few years, we’ve seen a shift from offline to online. It will be exciting to see what happens next and especially long-term in a post-pandemic world. Rado Svec, VP Platform, Conrad Electronics Digitalisation, e-commercialisation and channel disruptions – perhaps more positively labelled as the variation and expansion of traditional distribution models – will be even more palpable in the future. On the customer side, further supply consolidation, removing purchasing complexities and sustainability will continue to be big themes going forward. Steffen Hammerla, Head of International Supplier Management, Unite I think the key to future success is to be creative, especially for more traditional resellers of office products. It needs a good mix of repositioning the existing stationery business and a wide-ranging e-commerce strategy, with partners that support these resellers in creating the necessary distribution tools and selecting the appropriate distribution channels.

OPINION

Special Issue

FACILITIES / SAFETY / PPE

WELL PLACED TO SUCCEED?

Absolutely

Special Issue BREAKROOM

SPECIAL

Most independent dealers have dabbled in the broad category of facilities supplies and all it entails. But there’s every reason for them to lean forward and make the most of the opportunities in today’s market, says ISG’s Frank Hoard

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n a recent conversation, OPI Editor Heike Dieckmann asked me whether ISG dealers have really been embracing the facilities, safety and PPE segment, particularly compared to pre-COVID times. The short answer: absolutely, they have. There are still many OP channel dealers that are new to this segment, but their enthusiasm is unparalleled. It’s been about three and a half years since ISG’s CEO Mike Gentile brought me on board to fill the newly created position of Director of the Facility Supply Channel (FSC). This forward-thinking position was originally developed to assist ISG members in the category. The real question was: what does it take to get them really involved in a channel versus just dabbling in it? The answer is education; our members needed to understand that the category produces plenty of dollars and big margins. Many simply did not know how to effectively move within the spaces of PPE, jan/san, safety as well as breakroom supplies. My role is to help them develop strategies and learn where the pitfalls are.

COVID WAKE-UP CALL I had been working at ISG for about 15 months when COVID-19 hit. Even for those independents already experienced in selling in FSC, it was a massive wake-up call; it forced all members to think differently about the category. Obviously, pandemic-related items were instant movers, with waves of varying demand. But for more than 18 months, our members battled larger companies, established relationships and misconceptions that “my local office supplies guy doesn’t have access to those products”.

ISG members were smart enough to capitalise on the opportunity of disruption, and many of those that had dipped their toes prior to the pandemic are now full-fledged jan/san houses. I would go as far as to say our dealers have grown stronger amid the supply chain disruption and a new landscape of customers. Thus far in 2022, now pandemic products have fallen off sharply again, we’re seeing our membership selling twice as much in FSC compared to 2019.

Many of those that had dipped their toes [into facilities supplies] prior to the pandemic are now full-fledged jan/san houses Most of the US – from retail to commercial distributors – are now sitting on a mountain of wipes, masks, disinfectants and maybe even a few COVID tests. Although the disposable glove supply chain has normalised and prices have fallen off their peak, the freight aspect has continued to keep costs high compared to pre-COVID levels. Nitrile gloves sales have levelled off, but are still well above those of 2019, and there is an expectation that demand will continue in an upward growth pattern of about 7-10% for the next ten years. Current conversations with dealers suggest foodservice and MRO products are in high demand. The ISG team is constantly talking to manufacturers, suppliers and rep groups within all channels to make sure we have solutions in place prior to potential disruptions.

That same model of hiring customer-facing consultants, selecting vendors, developing an execution plan, setting pricing strategies and really promoting a category needs to be replicated in FSC for dealers to be truly successful.

June 2022

THE VALUE OF BUY DIRECT SELL BRANDS Independent dealers are always stronger together, and that is most evident in the area of merchandising. Going back to my point about buying direct, recently, under the guidance of our CEO, ISG kicked off its Buy Direct Sell Brands initiative. It aligns with our fundamental purpose and encourages our membership to promote and buy direct from the suppliers that support the group with rebates and other programmes. The vendor community has recognised the strength of ISG and directed their customers to become members of ISG over the past year to join us and take full advantage of these direct buy initiatives. In FSC specifically, where the average product case is physically bigger and has a higher average dollar price, dealers that succeed are usually the ones to have taken control of their inventory through direct purchasing. The road to becoming better at selling this category starts with inventory prioritisation, standardisation and rationalising of their offering. It takes some time, but a little effort upfront can mean immediate margin dollars in their pockets. As much as 30% margin gains can be had in products bought direct versus wholesale in FSC. The wholesalers, of course, are in a tough position. Trying to run an inventory of just-in-time products while attempting to predict the future in uncertain market conditions is difficult. The objective behind Buy Direct Sell Brands is to give members greater control over their own destiny. There is this belief in business whereby “I buy wholesale to keep from sitting on product because, if I buy direct, I must tie up my money with large amounts of inventory”. It’s a myth. The adoption of a just-in-time inventory programme at dealer level must be holistic and include leadership, purchasing, inventory and, yes, even sales. Leadership has to be involved to determine what initiatives allow for back-end profitability. Purchasing will need to show trends on product movements, while inventory personnel must add input on how to keep and move the products. Finally, sales is often the most overlooked part of an inventory strategy. This component needs to liaise with the end user to properly set expectations. Communication is key and it must travel both ways. Customers’ ability to receive inventory in a different manner may be a solution if there are reasons to do so. These reasons for end users could be a better price, guaranteed products or simply peace of mind.

OPINION Frank Hoard

EXCELLENT POTENTIAL Independent dealers are very well placed to succeed in FSC and there are a few specific factors which have opened up opportunities for them. The consolidation happening within the jan/ san distributor market mirrors what we saw in the OP channel in the 1990s. After layoffs of national sales forces by major OP jan/san commercial suppliers, customers have started turning to local operators – they respond quickly and offer a customer service that is geographically close. All of the above have led customers back to the ‘traditional’ independent dealer community. During the pandemic, ISG members were recognised as essential businesses and were allowed to stay open when others had to shut down. Historically, these types of small operators weren’t on the radar for products like PPE and safety items, but once they were able to supply their customers with hard-to-find COVID SKUs, it opened up a completely new supply category in those customers’ eyes. Having elaborate ordering websites which work well in this age of ‘click and buy’ is very important and, unlike the jan/san channel, our OP members continually present ordering site technology that end users demand now. They also have the ability to adjust to how a customer wants to do business. Let’s face it, when end users have a real need and don’t know what will get the job done best, a website will only take them so far. This consultative component of the ordering process is where independent dealers will continue to see growth within any category as long as they are proactive. However, being proactive is more than just developing a strategy of talking – virtually or in person – to your customer base. For dealers to expand their offering, they must understand that, to be more profitable within FSC, means buying direct from manufacturers. It provides many obvious advantages, including better competitiveness against traditional FSC suppliers; increased margins; control over the supply chain; the ability to set better expectations for themselves and customers; and to develop a true programme. Let’s focus on this last point. Years ago, Frank Hoard many of our members developed furniture or printing programmes.

CATEGORY UPDATE

Special Issue

FACILITIES / SAFETY / PPE

At last:

ON THE MAP

Special Issue BREAKROOM

SPECIAL

The broad facilities, safety and PPE category is top of mind like it’s never been before for operators serving our industry. And with the panic stage of COVID over, it’s time to talk about the long term – by Heike Dieckmann

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f the vibes from Interclean Amsterdam – which took place just before this issue of OPI went to press – are anything to go by, the importance of cleaning received a resounding nod from all who attended the event. From the robotic cleaning revolution and automated room disinfection to sustainable waste management and the role of indoor air quality – this international trade show quite simply covered everything there is to know about the topic of hygiene and cleaning. It also put paid to the notion that because the pandemic is now slowly becoming endemic, it’s fine to take the foot off the pedal. Quite the opposite. The big elephant in the room is ‘work’, specifically where and how it takes place. Work-from-home (WFH), hybrid working, on-site working – there’s a real mix, but certainly no state of ‘normal’ can be seen across the board yet.

WHAT’S THE MESSAGE? The messaging from the business products community as to what is important and uppermost in their minds varies and is inevitably linked to the specific niche of the operator. UK print consumables distributor Data Direct’s approach is to “create the best possible experience and environment in the workplace to beat COVID, CO2 issues, flu and more”. It aims to do so with its SafeSuite of tools and services. As Sales Director Marianne Chamberlain says: “It’s all about the engagement and return-to-office realities that are currently happening. SafeSuite

takes a holistic approach as it’s vital to get the core message across to create a healthier working environment and improve business life. “It’s not a one-product method or a set of random products all designed to fend off something. We’re returning to work in vast numbers and are finally collaborating closely again with colleagues.

At last, high levels of hygiene are becoming the norm. I would go as far as to say that we’re in the decade of the cleaner right now

Johan Tops

“It’s not merely about COVID, but also viruses like the flu and norovirus, for example. CO2 in the workplace is another huge problem. We’re typically quite oblivious to this and the harm it does to our health and our performance. SafeSuite addresses all of these issues in a smart way so that everyone can take control of CO2, sanitisation, productivity, etc.” Health and hygiene is just one part of the category equation, of course. Peter Clayton, Head of Sales at UK vendor Spectrum Industrial, comes from another sub-segment – safety. He says: “Our communication is around the ‘Think Safe, Act Safe, Be Safe’ concept and the importance of safety signs. COVID has actually slowed down what should be done in this area.

GREEN HEALTH & SAFETY In terms of messaging and current hot topics, one that is definitely moving up the agenda is sustainability, something Clayton is acutely aware of and which needs to be well-managed. “We manufacture safety signage,” he asserts. “This is often produced from plastics, so we face a balancing act between having a product which matches customers’ expectations for longevity but also has green credentials. In many cases, a fire exit sign, for example, will be in situ for more than ten years – it’s very different to a single-use plastic bottle of cleaning liquid, so lifespan is an important aspect to consider. “We are gradually shifting to a material we have sourced which offers similar quality to RPVC, but is recyclable and, crucially, shouldn’t cost the customer more. Aside from the products themselves, packaging of course is in the spotlight, especially with the plastic packaging tax having come into play in the UK in April.” Johan Tops, Commercial Director at Dutch vendor Greenspeed, addresses the topic within the specific sub-segment of cleaning. He comments: “At last, high levels of hygiene are becoming the norm. I would go as far as to say that we’re in the decade of the cleaner right now. But cleaning solutions should be healthier, both for the environment and the user. And they should be more ergonomic too.” On this last note and with Clayton’s comment on the use of single-use plastic in mind, Tops sees great potential for plastic-free and waterless concentrates in the form of tablets. At Interclean, the vendor introduced the Greenspeed PROBIO Tabs. These little tablets make the equivalent of a 300 ml spray bottle – users simply add water to the reusable bottle. Compared to ready-to

and single-use products, PROBIO Tabs offer up to a 99% reduction in both space and CO2 during transportation because they reduce the unnecessary transport of water. According to Tops, the concept is a “game changer”, adding that “Greenspeed as a company aims for circular, healthier and effective cleaning products”. Even in low-budget, B2B environments, the company is noticing increased demand for sustainable solutions now, he says. Fellow vendor Essity is very much on the same page as regards the need to up the cleaning space’s sustainability credentials. And it’s leading by example. In the 2022 EcoVadis CSR Ratings, which cover a broad range of non-financial management systems including environmental, labour & human rights, ethics and sustainable procurement impacts, Essity was awarded the Platinum Medal. This result places it among the top 1% of the companies assessed by EcoVadis. On a related note, based on its outstanding comprehensive life cycle assessment approach, Essity won the overall Innovation Award at Interclean (see ‘Essity: Best in Class’, page 36).

CATEGORY UPDATE Facilities/Safety/PPE

“Safety and safety signs are the law, regulated by government agency, the Health and Safety Executive. But when everyone previously based in an office was working from home all of a sudden, we temporarily changed our focus to ‘social safety’. However, we don’t just supply into office environments – there are many areas which ‘safety’ has to cover, including construction and building work. “The lack of focus on care and safety products and procedures during the pandemic is now being rectified, with many businesses evaluating essential requirements and reviewing their existing precautions. We offer them bespoke and tailored solutions and give them access to products that adhere to safety standards.”

USER FEEDBACK To move the category forward and address customer demands in a post-COVID world, it’s imperative to gauge what perceptions and needs really are. Essity regularly surveys its target market to understand the requirements of both facilities managers as well as end users. According to Anna Königson Koopmans, Marketing Director – Commercial at Essity Professional Hygiene, over the past couple of years, particular areas of concern have been increased hygiene and resource pressures amplified by the pandemic, as have a consistent prioritisation of sustainable solutions. Responses from a range of studies conducted in several European geographies reveal: • 71% of employees expect their employer to provide extra cleaning rounds; • 89% of office decision-makers believe cleaning and hygiene has become more important since the outbreak of COVID-19; • Workplaces in the UK are still shamefully eco-unfriendly, according to 45% of staff; • Nearly 7 in 10 users surveyed wish more facilities offered paper hand towels as an alternative to air dryers.

June 2022

‘Different’, as opposed to ‘extra’, cleaning is perhaps the core takeaway of such studies. It’s also the overall feedback OPI received when canvassing opinions for this feature. As AF International Brand Manager Margaux Lefaucheux says: “Working patterns have changed from the full-time office days to a hybrid working scenario. As hot desking is now so prevalent, businesses are much more aware of the importance of cleaning shared spaces. For example, cleaning wipes are positioned to encourage the cleaning of desks, mice and keyboard areas.

Facilities/Safety/PPE CATEGORY UPDATE

“Hand sanitising, meanwhile, has become part of everyday life and is often the first thing you see when entering a building, including shops, offices, schools and any hospitality setting. This has given AF huge opportunities for our Anti-bac+ hand sanitiser. The pandemic has ingrained facts on bacteria and viruses over the past two years and, through education, has highlighted how easily they can spread.” New working patterns are making cleaning procedures more challenging, no doubt. It’s not that flexible working didn’t exist pre-pandemic – across various European countries, ‘desk usage’ was estimated to be around 60% at any given time, according to Essity’s Königson Koopmans. But the nice-to-have perk from yesteryear has become a non-negotiable part of employment in work settings where on-site presence isn’t a core component of the job. As such, and with hybrid working very much here to stay, varied and unpredictable office occupancy leads to more complexity in terms of cleaning regimes.

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MONITORING CLEANLINESS Sensor technology, tracking how frequently washrooms, desks and meeting rooms are used to help determine when cleaning is needed, has become part and parcel of how organisations and their facilities managers address these challenges. One component under the broad ‘sensor technology’ umbrella term is indoor air quality, now a huge piece of any health and hygiene conversation. It’s a conversation that ACCO Brands actually started in the home rather than the commercial environment – pre-COVID. Shane Smith, VP of Sales, Office Superstores and Commercial at ACCO Brands, says: “We launched TruSens Wellness in 2019, right before COVID hit. Our focus was on air purification in homes to help reduce airborne allergies and odours, while also capturing airborne viruses, bacteria and VOCs. Our core line-up of products concentrates on the home consumer with three primary models – Z-1000, Z-2000 and Z-3000 – and a range of speciality filters. “Globally, demand for these products increased significantly during the past couple

Hand sanitising […] has become part of everyday life and is often the first thing you see when entering a building, including shops, offices, schools and any hospitality setting of years as consumers looked for ways to assist in the purification of air inside their homes. Most recently, however, we have seen demand pick up in commercial and educational environments, particularly with our biggest model, the Z-3000. As density in these settings grows, we anticipate that leaders in facilities management will seek more options to ensure the safest workspaces possible which, nowadays, includes a desire to improve overall indoor air quality. “To that end, we are launching two new models, the Performance Series Air Purifiers Z-7000 and Z-6000, to better meet the needs of this demographic. These models are designed for use in large spaces with a focus on clean air delivery rate and advantaged total cost of ownership.” Germany’s RENZ is another operator which reacted to COVID realities quickly, adding a range of PPE items including face shields, face masks, hands-free door openers, multi-hygiene hooks and disinfectant dispensers in the early days of the pandemic. Its most notable and recent innovation, however, was the Air2Color air quality meter which addresses the topic of indoor air quality with its CO2 traffic light system. Thomas Reinhard, Business Unit Leader Office Systems, says: “Since the start of the pandemic, we have all started to realise that indoor air has an important effect on our health. Our metabolism only works well with good-quality air and people are now much more aware of their well-being wherever they are, be that at work, in restaurants or at home, for example. Better air quality results in better concentration and higher productivity.

Facilities/Safety/PPE CATEGORY UPDATE

The challenge now is to keep this awareness at the forefront of consumers’ minds. Air quality meters like the Air2Color can make people feel safe and looked after – and better at what they happen to do in any indoor location.” CATEGORY LEADER It would be fair to say that the undisputed leader in our space as regards the topic of air quality is Fellowes Brands. The US vendor has been in the localised air treatment segment for about ten years now, with a particular focus on the commercial space. As such, it was more than ready with products and all the necessary collateral when this sub-category started to really take off. Says Global General Manager of Air Treatment, Arti Lyde: “We have built our entire product and marketing story around health in the commercial workplace, closely aligned with our core reseller customers. With the onset of the pandemic, broad awareness and urgency developed around the science of aerosolised viral transmission, seemingly overnight. “But our partners already knew from us that the facts behind the aerosolised transmission of viruses and germs were real and how they could be managed. Their sales forces were trained and ready, and our marketing materials and sales approach were positioned within their team’s toolkits,” she adds. “That said, while COVID no doubt shone the spotlight on indoor air quality in a good way, it also prompted a surge of new products and technologies, some promising results with minimal evidence supporting their safety and efficacy. This, in turn, can make it difficult for consumers and businesses to feel confident they are spending their money wisely.” Lyde further explains that Fellowes’ traditional OP partners have become the go-to consultants for everything their customers need. “Their greatest asset is the trust and relationships they’ve built through years of doing business the ‘right way’. In addition to meeting rigorous

From more from OPI’s interviews on topics including legislation, customer expectations and routes to market, see our Xtra content in the June issue on opi.net

Arti Lyde

compliance standards and third-party testing, Fellowes has done countless training sessions, created a whole library of content-rich assets, and produced hours of digital content to help demystify this category.” But perhaps the best support the vendor has been able to offer its partners, she concludes, is to simply be there, whether on a customer call or the road, with their representatives to help deliver the message or provide product demonstrations. “At the end of the day, people buy from people. Our independent dealers exemplify this principle, and we strive to be right there beside them every step of the way.” Indeed, there was broad consensus among everyone OPI spoke to for the purpose of this article – and several other features in this issue which explore the facilities, PPE and safety segment. A consultative, solutions-based approach, strong customer partnerships and real product expertise lie at the heart of being successful in this category. As Data Direct’s Chamberlain says, it’s a holistic approach to category building that’s needed, with messaging which pervades the entire supply chain, not just a small part of it.

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ESSITY: BEST IN CLASS

On the first day of Interclean Amsterdam, the winners of the Innovation Awards 2022 were revealed. Categories included Hygiene & Health, Smart Technologies & Digitalisation, Workforce & Ergonomics, and Sustainability & Environment. Essity was the overall winner, picking up the innovation prize for its Tork bio-based heavy duty cleaning cloth, which aims to reduce consumption, waste, pollution and emissions. According to the judging panel, the award was given not just for product development, but for the implementation of Essity’s core values. As Chair of the jury, Michelle Marshall, said: “This company takes a life cycle assessment approach in the development of new products and also seeks to reduce carbon footprint. Crucially, it aims to help its customers reduce their carbon footprint too.” “Essity can back up all its claims through independent certification – it is recognised and acknowledged by many organisations. The technology that is being used with this bio-based cloth can now be deployed to expand the range and offer products in different formats in order to

give greater flexibility. The compressed packaging makes for easier handling – important for cleaning staff. And the environmental impact of the packaging has not been forgotten either. It’s made from fibres that are 100% recycled and plastics which are at least 30% recycled.”

Essity’s Jos Zimmerman and Reneé Remijnse

CASE STUDY

Special Issue

FACILITIES / SAFETY / PPE

Wind back just a decade and for most resellers rooted in the OP space, the facilities category – typically basic jan/san and breakroom products – was at best a token gesture add-on. How things have changed...

Special Issue

IQ TOTAL SOURCE – CHANGING PRIORITIES

n the first of two reseller case studies, OPI speaks to Ryan Puccinelli, Chief Culture Officer at IQ Total Source. It’s a $12 million dealership that was founded in 2007 by Puccinelli and his business partner and Chief Finance and Operations Officer Bryan Freund. IQ Total Source is based in Tempe, Arizona, with offices in Houston, Texas, and San Diego, California and several franchise operations in California, Kansas and Florida.

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OPI: Can you give me a brief overview of your move into the facilities channel? Ryan Puccinelli: We first got involved in 2014/2015. Having started as a non-stocking dealer, we followed the lead of S.P. Richards. The wholesaler – as well as its competitor Essendant, of course – had begun to embark on these categories in a really meaningful way and encouraged us to do the same. Consumption of traditional OP was declining and we had to do something. We decided jan/ san was our future and began to learn about the category. As of today, it’s over 50% of our sales, up from around 10% before the pandemic hit.

BREAKROOM

SPECIAL

and outside – and lots of cold calls. It was both a grind and an exhilarating hustle. One challenge was to determine whether products were legitimate, particularly masks and nitrile gloves. There was an incredible amount of fraud going on in the early stages and we worked hard to ensure we were gaining the proper certificates and buying from reliable sources.

Consumption of traditional OP was declining and we had to do something Pricing was another story because it was changing on a daily basis. 2020 was tough, but we actually increased our staff numbers that year – we now have 29 employees between three offices – and did well. From mid-2021 until now, we have been a bit more confident as businesses have slowly gone back to the office. OPI: But supply constraints and cost increases haven’t gone away, have they? RP: Sadly not, no. We’ve entered a new era in this industry, that’s for sure. There is quite simply not a business that has been immune from the various current realities. But I foresee a strong future for those who pivot, evolve, increase technology and muscle through the uncharted waters ahead.

OPI: When it did, ‘jan/san’ became a lot broader I suspect, and your learning curve quite steep. RP: Definitely. Initially, we were in survival mode. We were fortunate to have had a loyal customer group of essential businesses to keep us afloat. And our entrepreneurial instincts kicked in. We took some considerable PPE risks to support our customer base – and our company. Bulk mask purchases from Asia and truckloads of liquid sanitiser from a distillery in Kansas City are just two examples. While many of the big national suppliers were struggling to keep up, we were able to support our largest relationships quite well which has generated incredible loyalty. OPI: How did you do it when others couldn’t? RP: We had to be very creative. Through LinkedIn groups finding connections – within the industry

Ryan Puccinelli

OPI: Where are you hoping to take IQ Total Source, in terms of the broad facilities and PPE component of your offering? RP: We are focused heavily on the jan/san space now and continue to learn and grow. Selling washroom consumables was the first step. Then came chemicals, which we’ve been doing a great job with through our consultative sales approach. The next evolution is machines – think floor care – we’re doing it a bit today, but will dive deeper as this category evolves for us.

Lyreco started its PPE journey in about 2010, initially by just adding some products to its catalogue. This was followed by hiring a number of category experts to speed up the process of getting customers engaged. As CEO Greg Liénard said, the reseller had some success with both initiatives and increased its market share in the segment (see Big Interview, OPI January/February 2021, page 16). But progress was still comparatively slow and, at the end of 2018, Lyreco bought B2B PPE distributor Intersafe to comprehensively put its stamp on the PPE and safety sector. Since then, a great deal of work has been done in terms of shaping Intersafe’s role and strategy as part of the French reseller’s broad umbrella. Lyreco Italy is the latest country to announce an Intersafe Safety Business Line, joining the Netherlands, France and Belgium as of 28 April 2022. Michela Malnati, Safety Business Line Director for Lyreco Italy, explains how – thanks to this new entity – existing and new customers as well as suppliers and partners will be able to count on its deep knowledge and expertise in PPE and safety at work. The Safety Business Line has provided the Italian market with reliable products and support for some years now and is recognised as a valuable operator and member of Assosistema Safety – an association representing the safety and PPE sector. This responsible and careful approach was particularly evident during COVID-19 which hit the country very hard and led to a wide distortion in the PPE/safety market. In the first weeks of the pandemic, the challenge was the sudden huge demand for PPE and the need to enable our people to work remotely. This was managed in a very short time, and we implemented an efficient home delivery service to serve both our staff and customers. From a supply chain point of view, with the help of A-brand partners and new tactical suppliers, provisions were increased and allocated to our customers. In fact, the crisis has led us to greater and better collaboration across the supply chain, and our

sales and marketing departments in terms of finding agile customer solutions. This speed and alignment remain today. Our industry is facing a wide range of sector-specific, but also macroeconomic, battles. In this complex setting, the synergies of Lyreco and Intersafe represent a reliable set of solutions to enable business continuity for our customers. We are convinced that the specialised support of a solid and efficient partner such as the Intersafe Safety Business Line will be a key asset in the Italian market.

CASE STUDY Embracing Facilities/Safety/PPE

LYRECO AND INTERSAFE – COMBINED STRENGTH

SERIOUS RESPONSIBILITY As a PPE distributor, we take our responsibility to ensure regulatory compliance very seriously, and we have invested in a dedicated team which strives to check all aspects related to safety laws, standards and regulations. This is especially important as the range of products and services is spread from low to high risk and encompasses head-to-toe protection, including environmental and workplace safety. Customers can choose from over 36,000 products in the current assortment, all selected from brand specialists in the safety field from both local and international markets. There is also a new space on the Lyreco web store dedicated to promoting the safety selection, and our various digital activities help attract new customers. All this drives better visibility for workplace safety and enriches brand awareness. We cover all safety requirements for industries such as manufacturing, oil and gas, pharmaceutical, food processing and construction, with customers ranging from SMBs to large national and global companies.

As a PPE distributor, we take our responsibility to ensure regulatory compliance very seriously

June 2022

Michela Malnati, Safety Business Line Director, Lyreco Italy

By combining Lyreco’s consolidated experience in handling international agreements and Intersafe’s established safety expertise, the Italian Safety Business Line offers an innovative approach to serving the market. Our ambition is to continuously improve our customer experience and we are investing heavily in new features for the web store, in line with our ‘A safe day at work. Delivered’ mantra.

SPOTLIGHT

A GOOD fit OPI’s Spotlight heads to Portugal, a year after stationery company Firmo acquired the local Staples operations – by Andy Braithwaite

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ust over 12 months ago, Firmo was a relatively unknown name in the European and international business products world. That all changed in May 2021 when the Portugal-based group closed the acquisition of the country’s retail-orientated Staples business. Overnight, Firmo was transformed from a €20 million ($25 million) manufacturing and distribution company with around 150 employees into an omnichannel entity with annual revenue of about €110 million and more than 750 staff members. The history of Firmo dates back to 1951 when it was founded by three brothers, one of whom was the grandfather of Rui and Miguel Carvalho, the respective President and VP of the group today. By the 1990s, the company – under the leadership of Rui and Miguel’s father – consisted of three main divisions: the manufacturing and converting of paper and stationery products; a wholesaling and distribution arm; and a merchanting business for the graphic paper industry. It had also opened two cash-and-carry stores, one in its home city of Porto and the other in the country’s capital Lisbon.

CHANGE OF OWNERSHIP The operator was doing so well that it attracted interest from abroad. In 1998, it was acquired by manufacturing and distribution giant Arjo Wiggins Appleton, with Firmo being rebranded to Antalis in the early 2000s. The sale signalled the exit of the Carvalho family. Rui and Miguel pursued careers outside the industry, the former in telecoms and his younger brother in finance. In 2011, with Antalis looking to offload non-core assets, they saw an opportunity to reclaim the family business, buying back the manufacturing and wholesaling activities and re-establishing the Firmo name. Fast-forward almost ten more years, and another opportunity presented itself. This time, it was in the retail channel as Staples Solutions looked to divest the various components of its

Rui (l) & Miguel Carvalho

business throughout Europe. One of the last pieces of the puzzle was in Portugal, where the 34-store retail chain – which began life in 1996 – was clearly not a B2B business that would interest the likes of Bruneau, Lyreco or RAJA. However, retail was not a core competency at Firmo either. Nevertheless, Rui Carvalho believes the acquisition – for which the financial details were not published – made good sense strategically. “There is a strong, positive awareness of the Staples name in Portugal,” he says, adding that Firmo has a perpetual licence for the brand in the country. “The acquisition was very good news for our own production – both for supplying private label and our branded products – meaning there are industrial and commercial synergies for us.” The purchase also led to opportunities in the B2B space. In 2016, Firmo had set up its own direct operations, selling envelopes and other stationery products to corporations and public sector clients. Around 10% of Staples Portugal’s revenue came from B2B, and these activities have now been merged into one unit, called Staples Corporate. “This is an area of the business we are really looking to develop,” states Carvalho. “It was a segment facing many challenges during the

There may be some trading down, but we are not forecasting much of a change.” One concern Carvalho does have at the moment is the price and availability of paper, a key product for the group across all its divisions. “I have been in the paper business for 24 years and have seen many pricing cycles, but the current situation is unprecedented,” he comments. “In general, the market is accepting the increases; buyers see what is going on. What they really need is availability; our orders [in the Firmo manufacturing unit] are higher than ever, but we have a large backlog.”

I have been in the paper business for 24 years and have seen many pricing cycles, but the current situation is unprecedented Carvalho says he was saddened to learn about the failure of Office Centre in the Netherlands and Germany – retail cousins that were also part of the Staples Solutions divestment programme. But the Portuguese market is different, he asserts. “We know retail is facing a lot of challenges, but like-for-like sales are growing. Online sales, while increasing, are relatively low here and consumers are still attached to the physical aspect of visiting stores. At the same time, we are investing in an omnichannel future, with a new website, services such as click-and-collect and our B2B business.” Another area Staples is looking at is the expansion of the retail network via smaller-format, local stores in high-traffic areas. A pilot is being conducted at the Faculty of Science at Lisbon University. If successful, the plan is to develop this concept at other higher education and business locations. The Carvalho brothers have a busy agenda for the rest of 2022. Work on group integration is going well, but is expected to take another 12 months to complete. They are also putting together a longer-term strategic plan. This includes the international development of MakeNotes, the trendy, eco-friendly stationery brand acquired by Firmo in 2019 – another part of its diversified model.

June 2022

NEW INVESTOR Funding for the Staples transaction led to a change in the ownership structure of Firmo. The Carvalho family still holds the majority of equity, but private equity firm ActiveCap is now also on board as a minority partner. “I have known [ActiveCap founder] Pedro da Silva for several years and we have a very good relationship,” says Carvalho. “He and his team have been actively helping us for the past year. They are hands on, but everything is very open and it would be difficult to imagine a better partner.” Retail, in general, has been tough over the past couple of years, but the stores in Portugal have actually been performing well. Not having to close them during the pandemic was certainly a factor, as was the high demand for items in the technology and furniture categories. In 2021, Staples ran a very successful back-to-school (BTS) campaign centred around the theme of bullying in schools. It was something that gained a lot of traction with the local press and the company is preparing another big marketing push for the 2022 season. As for all office supplies retailers, BTS is a key time for Staples Portugal, and also for Firmo, the season accounting for approximately 30-35% of annual sales. “It’s our Christmas,” states Carvalho. The Firmo President is not expecting the 2022 BTS period to be radically different from 2021, despite the current inflationary environment which is hitting consumers’ spending power. The average BTS basket in Portugal is €50-€60 and is predicted to be stable this year. “In terms of the overall family budget, it is not a huge amount,” he notes. “Parents like to treat their children well, even if other things are increasing.

SPOTLIGHT Firmo

pandemic, but the situation is now improving and our revenues in the first part of 2022 are up 30% on last year.” He continues: “The government recently stopped making masks mandatory in offices and schools, and this has been a boost for us. The B2B sector in Portugal is still highly fragmented, so we believe we will be able to take share on the back of the Staples brand reputation and our levels of service. With this in mind, we are currently expanding our sales team.” In terms of the Staples management, there has been little change since the Firmo takeover. Long-time company exec – and Managing Director since 2014 – João Peixoto is still in charge and responsible for the day-to-day activities and strategic direction of the business. The Carvalho brothers are non-executive directors on the board. “We are very pleased with the team we have inherited at Staples,” notes Rui Carvalho. “We, of course, performed due diligence on the business and I’m happy to say we have not found any ‘skeletons in the cupboard’. One thing you don’t see in the financials is the quality of the people and the team spirit – I must say that has been a nice surprise. They are competent, dedicated and want to ‘wear the shirt’. So why change something that is working?”

RESEARCH the state of the industry report

A market in TRANSITION

After the utter turmoil of 2020 and constantly changing goal posts in 2021, what’s the state of our industry this year? OPI and Martin Wilde Associates provide some answers

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ollowing on from a hugely disruptive initial COVID period that was marked by lockdowns in many parts of the world, 2021 was very much a year of transition for the business products market. Office workers were trying to get back to the office, continuing to work from home (WFH) or embracing a bit of both – hybrid working. In terms of products, there was a deceleration in some of the pandemic growth around PPE and WFH items that had been seen in the previous 12 months. This was accompanied by something of a resumption of office-related product consumption, but still against a backdrop of workplace digitisation and secular declines in several ‘traditional’ categories, plus the ongoing shift towards e-commerce. This dizzying concoction of product trends has been further complicated by significant price increases and – in many cases – severe supply chain shortages, as well as changes in some key distributor ownerships. As such, now more than ever, business products leaders need to have a clear and informed perspective on what is happening – and will continue to happen – in the market.

WHAT’S NEXT? Where is our market going in terms of products and distribution? What are the underlying trends at work in the industry and which new factors are coming into play? Most of all, where is our sector going in the future as we emerge from COVID-19 and some type of ‘normal’ life slowly returns?

It is these kinds of questions that The View From The Top: The State Of The OP Industry 2021-22 seeks to answer, providing, as it does, unique insights into the state of the industry in North America, Europe and Australia. From offering data and observations of the industry today to forecasting which products and distribution channels will grow in 2022 and beyond, this ninth annual market research study by OPI and Martin Wilde Associates (MWA) serves as the authoritative sourcebook for the global OP industry. It is based on the results of 55 in-depth interviews with senior executives across various channels in Australia, Benelux, Canada, France, Germany, the UK and the US (see Fig 1 and Fig 2).

Fig 1: Respondents by region Source: MWA (percentages rounded)

Australia: 7% Benelux: 9% US: 18% Canada: 9%

France: 16% UK: 29% Germany: 11%

Fig 2: Respondents by activity Source: MWA (percentages rounded) Product Manufacturer/ Vendor/Paper Mill/ OEM: 38%

Other: 5% Distributor/ Reseller: 56%

GROWTH IN COVID PRODUCTS The product categories that were most widely reported to be growing in 2021 were PPE/ workwear/signage products, cleaning/janitorial supplies and office furniture. The most declining segments, meanwhile, continue to be traditional stationery products and cut-size office paper.

expected to decrease going forward, with some distributors shifting to smaller, midi publications and/or shortening the quantity produced. With consolidation in mind, around half of all interviewed organisations are looking to acquire another business in 2022.

The channels most widely reported to be losing share in 2021 [...] were the national contract stationers, OP superstores and small independent OP dealers As regards supply channels, Amazon/Amazon Business and other internet-only OP resellers took the most share in 2021. According to the report, the pandemic and WFH have shifted demand further towards online channels, with mass market retailers benefiting from the lockdowns to a lesser extent in 2021 than in 2020. The average share of reseller sales taken online, meanwhile, also continues to increase slowly. The channels most widely reported to be losing share in 2021, on the other hand, were the national contract stationers, OP superstores and small independent OP dealers, with COVID and new working arrangements vastly contributing to the decline. The full report forecasts the key growth channels for each country in 2022.

The State Of The OP Industry 2021-22 is now available – visit www.opi.net/ SOTI2022 to order your copy

PROVIDING ANSWERS This year’s industry report also provides answers to a wide range of key topics on the current and future state of the market. These include: • What was the value of the core OP market in 2021 and what will it be worth in 2022? • Which product categories were seen as opportunities by respondents in 2021 and what are they actively planning to develop in 2022? • What share of the core OP market does Amazon/Amazon Business now have in each country and what actions will resellers be taking to combat this operator in 2022? • Which ‘new’ channels or distributors emerged in 2021 and what kind of impact are they having? • How important are online marketplaces in the business products space and who are the key players involved at present? • What effect did the change of ownership of some of the ‘big box’ distributors have on our market in Europe in 2021? • After the large decline in volumes from the corporate sector due to lockdowns and WFH in 2020/1, is it still financially viable to sell business products to the corporate end-user market and who – if anyone – is taking share from the contract stationers in this sector? • What will be the effect on our industry in 2022, following the ending of government support for businesses during the pandemic? • Which cost factors will be creating an inflationary economic environment in 2022? What kind of percentage increases are respondents expecting and what do they propose to do to adapt to these?

June 2022

MORE REPORT SNIPPETS Other highlights from The View From The Top: The State Of The OP Industry 2021-22 reveal that the average share of distributors’ sales accounted for by janitorial/cleaning supplies, breakroom/catering products and MPS is projected to increase in 2022. The share of revenues in PPE/workwear/ signage products, however, is expected to fall back after the boom experienced in 2021. Answering a perennial question among industry peers, the share of respondents producing a full range of paper catalogues is

RESEARCH State of the OP Industry Report

RESEARCH FINDINGS Once again, the research has unearthed some fascinating findings across these seven geographies. The historic rate of decline in core OP demand rapidly shallowed in 2021, for instance, with a gradual return to the workplace slowly coming into play. Only 57% of all respondents reported a core OP market decline in 2021, with only 18% believing that the value decrease in the year was more than 10%. After seeing a dip in 2020, most survey participants’ overall sales grew in 2021. Overall, as many as 77% reported an increase in their revenues in 2021, compared to only 42% in 2020. Indeed, on average, respondents’ sales in 2021 were 5% above what they had achieved in 2019. Distributor interviewees were more likely to report that their margins increased in 2021. As many as 53% referred to growth, while only 10% claimed margins had decreased.

RESEARCH

Special Issue FACILITIES / SAFETY / PPE

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BREAKROOM

Technology is increasingly making the workplace healthier and safer, and wearables are leading the way – by Michelle Sturman

The smart

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ho will ever forget the images of medical professionals at the height of COVID-19, exhausted and dressed from head to toe in PPE, sporting bruised and swollen faces from hours and hours of wearing face masks? Not only did the pandemic highlight the importance of PPE, it also prompted a resurgence of interest in general health and safety – whether it be in the office, classroom, on the factory floor, or in some other working environment. Globally, legislation is helping to boost employee protection, and wearable technology is playing an increasing role in ensuring this happens.

WEARABLE APPLICATIONS The public is already familiar with smartwatches to help track health and fitness, while other products like smart glasses and AV/VR headsets are expected to boost the consumer and business wearables markets in the near future. According to Gartner, end-user spending on wearable devices totalled $81.5 billion in 2021, a jump of 18.1% compared to 2020. The leap was attributed to the introduction of measures for self-tracking COVID symptoms and increasing interest in personal wellness during lockdowns. This year, Gartner predicts global spending to reach $93.9 billion, with ear-worn items making up almost half of the total ($44.2 billion), followed by smartwatches at $31.3 billion. Smart clothing will jump to $2.2 billion, with smart patches (non-invasive health monitoring sensors) increasing to $7.2 billion. Cisco Systems, estimates the worldwide number of connected wearables to reach 1.1 billion. Miniaturisation is likely to influence the market; Gartner predicts that, by 2024, capabilities should have advanced to the point where 10% of all

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wearable technologies will become unobtrusive to the user. Says Senior Research Director Ranjit Atwal: “Continued advances in miniaturisation and integration will enable further use cases and benefit adoption of smart garments, printed wearables, ingestibles and smart patches.” There’s plenty of innovation in the workplace wearables sector, with some interesting applications for different industries. In Italy, for example, robotics and industrial automation firm Comau, in partnership with tech company IUVO, is developing a wearable robotic exoskeleton designed to improve well-being by reducing lower back fatigue during lifting activities. In the retail sector, Walmart Canada recently invested in over 1,500 ring scanners to “help associates pick online grocery orders faster and more easily”. In a pilot scheme, employees attained their highest year-to-date pick speeds. The retail giant was quick to point out the technology offered “clear benefits”; having both hands free made the job simpler and faster, while the lightweight ring scanners were easier to manage than handheld units.

1.1

billion in 2022 Worldwide number of connected wearables Source: Cisco

SMART TECHNOLOGY Meanwhile, Zhenan Bao, a K.K. Lee Professor in Chemical Engineering at Stanford University, and her research team have developed a stretchable, potentially reshapable polymer display which functions like a filament in a lightbulb. It may be attached to an arm or finger and doesn’t rip during bending or flexing. Bao says: “Stretchable displays can allow a new way of interactive human-machine interface. Imagine a display where you can both see and feel the three-dimensional object on the screen. This will be a completely new way to interact with each other remotely.”

Advances in miniaturisation […] will enable further use cases and benefit adoption of smart garments, printed wearables, ingestibles and smart patches There’s plenty of innovation and research happening within the sector. For example, some smart gloves incorporate NFC chips enabling operators to scan product data sheets or connect to a smartphone or tablet. Engineers at Illinois-based Northwestern University

Smart PPE market

Source: Fortune Business Insights

End-user spending on wearable devices Source: Gartner

have developed a smart sensor platform for face masks, dubbed the ‘FaceBit’. The small, lightweight sensor can be attached to any N95, cloth or surgical face mask via a tiny magnet and senses a user’s respiration, heart rate and mask wear time. This information is transmitted to an app dashboard for real-time health monitoring. OF GROWING INTEREST The current smart PPE category remains minute compared to the overall wearables segment, but it is growing. Technavio’s expectations in its Smart Personal Protective Equipment Market by End-user and Geography – Forecast and Analysis 2021-2025 are for market share to increase by more than $3 billion over the stated period, with a CAGR of 15.54%. A recent analysis by Exactitude Consultancy predicts the global smart PPE market to grow at a CAGR of 13.4% from 2021-2031, reaching above $9.5 billion by the end of the forecast period. Fortune Business Insights goes even further forecasting the $9 billion mark to be breached by 2028 as contagious diseases boost demand. Limitations to smart PPE include cost, which can be prohibitive. Other factors that could potentially stymie growth and widespread adoption revolve around power sources – usually rechargeable batteries – due to lifespan, charging times, safety and environmental matters. With the volume of information that smart PPE is able to monitor, the issue of privacy continually rears its ugly head, and there has been some reluctance from employees due to the potential collection of sensitive and personal details. Of particular concern is the accessibility of data available to employers and other third parties. On the flip side, this information can provide valuable insights into making work safer through real-time statistics and analysis of potential workplace hazards. There are undoubtedly many obstacles which need to be overcome. Nevertheless, wearables and smart PPE, coupled with constant advances in IoT, AI, big data, cloud computing and wireless communications such as 5G, are definitely a welcome evolution in health and safety in all working environments.

June 2022

$9 billion by 2028

ELOOLRQ

RESEARCH Wearable Technology

IoT, AI, 3D printing and big data will all amplify the uptake of wearable technology, especially the smart PPE category, which incorporates built-in electronic components into hard hats, safety glasses/goggles, gloves, footwear, high-vis jackets, etc. Smart fabrics/textiles integrate sensors, monitors and tracking devices that react to a user and/or environment and adapt and/ or provide the wearer with access to real-time intelligence and input functionalities. Smart textiles offer an intriguing option for integrating safety into workwear although some issues are still apparent in terms of washability, flexibility, robustness and portability. For an informative look at this category, read Future Trend in Wearable Electronics in the Textile Industry by Chi-Wai Kan and Yin-Ling Lam. Smart PPE’s advanced technology helps prevent accidents and reduce mistakes, thereby limiting the severity of workplace injuries. Incorporated into everyday usage, features may alert employees to environmental hazards such as fire or toxic fumes, while physiological details including posture, breathing, fatigue and heart rate can be tracked and monitored. Other smart elements can detect potential falls, dispatch emergency messages to colleagues in the event of an accident, or automatically adjust the PPE to the surrounding internal or external conditions. They can also send voice and/or video notifications and provide vital communication in low-visibility or loud environments.

EVENT

BIG BUYER 2022 PREVIEW

Not JUST an ITALIAN JOB

ig Buyer was one of the few face-to-face events that happened in 2021 in a challenging, end-of-year COVID-dominated period. And the Bologna, Italy-based trade fair for the office, stationery, arts and crafts, school and promotional goods sectors is back again this year for its 26th edition. To be held from 23-25 November 2022, show organiser Edinova will be deploying all its experience and know-how to put together a comprehensive and carefully structured event. Delegates will be able to glean an excellent overview of their specific category, both during the exhibition as well as through a wide range of content learning opportunities.

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INTERNATIONAL APPEAL More than 80% of the exhibition hall is already booked, attracting top Italian and international manufacturers that will showcase their best sellers and new products for 2023. The focus is very much on the word ‘brand’. A concerted effort is being made by the organiser to make the event appealing to international buyers, evidenced by Edinova’s ‘Foreign Project’, which comprises a broad array of communication activities in Europe and beyond. The aim is to attract those buyers’ attention – office suppliers, wholesale distributors, traditional

retailers, mass market stores and modern trade operators among them – to the wealth and breadth of Italian as well as global brands. To celebrate all product innovation, two special areas are again reserved for the latest launches. The first one is the Design Form & Functionality space which highlights products that best combine innovation, aesthetic appeal and practical usage in the office. Secondly, the Green Environment and Sustainability area will showcase items with outstanding ethical and environmental credentials. A number of awards will also be up for grabs in these categories – the Top Design Award will be presented for the 15th time while the Green Future Award is moving into its second year.

A concerted is being made by the organiser to make the event appealing to international buyers

MARK THE DATE Big Buyer will be held from 23-25 November 2022 in Bologna, Italy. Show updates and the detailed programme will be available on www.bigbuyer.info in due course.

CREATIVITY FIRST A brand new feature of Big Buyer 2022 is COLORTEC Lab, a workshop dedicated to the creative and hobby channels, two categories that are currently experiencing significant growth in sales. COLORTEC Lab is intended to be of strategic interest to stationery and bookshops; arts & crafts outlets, and paint, DIY and hardware stores, all sectors which are investing heavily to expand their assortments and create recognisable dedicated areas that attract DIY and craft enthusiasts as well as the education vertical. The workshop will be organised by the final year students of the ‘Liceo Arcangeli’ art school in Bologna. They will use and promote products (paper, colours and techniques) made available by a wide range of exhibitors, and include lessons, experiments, courses and tutorials, all showcasing their technical and creative features. The final, but vital, component of this event is its educational conference section. It is here where delegates can learn more about the pressing topics that are having such an impact on the make-up of our industry and its future prosperity. E-commerce, digital marketing and social media are covered, as are supply chain topics and the complex transition to a greener world.

5 MINUTES WITH...

Jean-Pierre Maternowski

CAREER Q&A What’s your current role? I am Purchasing and Marketing Director at Lacoste Dactyl Bureau & École, the first and only multi-local distributor in France.

What’s your life philosophy? Be positive and helpful to everybody you encounter. But also – don’t forget about personal happiness. What scares you? People who know everything – or pretend to. What makes you happy? My life – my wife, family and real friends. How would you describe yourself? I try to be a kind man, and the most helpful I can be for my wife. But I don’t need rings or flowers. Nice wines perhaps... I am French, after all. Best compliment you’ve ever received? Too many to mention them all! Early bird or night owl? I’m the one who sings late at night. If you could trade places with someone for a day or two, who would it be? Volodymyr Zelensky. Today, to have the strength not to yield; tomorrow, to manage the rage for justice without concessions.

Jean-Pierre Maternowski

If the world had a President, who would you vote for? A wise and young lady, most certainly. Again, I’m French... What is humankind’s greatest invention? I’m not sure it has been found yet. The world is such a strange and insecure place now, especially for the younger generations. What skill would you like to master? Something that would help come up with the greatest invention you’ve just asked about. What song puts you in a good mood? Une Simple Mélodie by Michel Polnareff.

What would you cook for a dinner party? I love cooking, especially for friends. But my wife has banned me from the kitchen because I make such a mess within minutes. So my job is to just open magic bottles.

ustry friends Above: with ind Lacoste team Below: with his

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If you weren’t doing your present job, what would you like to be doing? Exactly the same, but perhaps ten years earlier when the company was smaller and more agile. Best part of what you do? Without a doubt, working with Laurent Bertrand, Lacoste’s current President. Worst moment in your career so far? I’d rather not go there…

Favourite holiday or thing to do? I love skiing. And have many tales to tell and scars to show.

Your worst ever job? It’s not really me to do something I don’t enjoy. But during university holidays, my job was to assist national train drivers. When they had a ‘break’ in between journeys, it was sometimes extremely boring to be stuck at a station in the middle of nowhere while the drivers went off to establishments where you rent a room by the hour.

The industry figure you most admire? Probably myself – I know this guy very well and he is ok. Seriously though, and being a bit more humble, companies in our sector need people who love what they are doing. In the process, they instil that joy in others and help develop their careers. Your best piece of advice to someone who has just joined the OP industry? To be curious, but full of humility for and appreciation of your environment; have a real purpose in whatever you choose to do – there’s no point otherwise.

FINAL WORD

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Moving at the

FACILITIES / SAFETY / PPE

SPEED OF CHANGE

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ans of renowned business author Jim Collins, who published Built to Last back in 1994, will know the term BHAG. Collins defined BHAG – a Big Hairy Audacious Goal – as an objective which may seem a bit too far out of reach, but as one of the concepts that often distinguishes great companies from average ones. AFFLINK is a sales and marketing organisation and leader in supply chain management services that connects suppliers of packaging, janitorial, safety, foodservice, office and MRO procurement solutions with independent distribution experts. As its CEO, I’m not afraid to say that the team and I have set our sights on a new BHAG – to grow our business fivefold in five years. An audacious goal indeed, considering the industry is still learning to navigate the choppy waters of ongoing mergers, acquisitions and post-pandemic supply chain issues. But the universe loves speed, so to speak, and the pandemic has exacerbated this reality for businesses exponentially. AFFLINK realised early on the landscape was shifting, saw how traditional B2B supply chains were devolving and decided to be proactive in its response. We knew we had to move. We had to evolve or risk becoming irrelevant.

to ultimately achieving our BHAG. Customers are still buying, but they are doing it in a different manner now. We need to understand their purchasing habits and then meet them where they are – online. Capturing a piece of this growing ‘away-from-work’ spend, AFFLINK has created a marketplace – www.ELEVATEMarketplace.com – Special Issue items to to offer an endless aisle of everyday at-home employees and microbusinesses that BREAKROOM would not typically have anyone calling on them. We have offered negotiated, last mile-delivered pricing and web hosting for publicly-facing e-commerce sites to our members for years. But the pandemic has pushed that need to the forefront, and we will continue to invest in this growth engine because we see it as a viable revenue stream in the coming years.

OUTSIDE THE COMFORT ZONE Though historically not our core competency, AFFLINK pivoted quickly to find and secure hard-to-source items for members during the pandemic. Like everyone, we stumbled a bit out of the gates and ran into the same issues all companies experienced in 2020, but more than anything, we learned. And we will use this hard-earned experience to control our destiny by expanding our global sourcing capabilities and continue leveraging our procurement expertise for our stakeholders. Aside from plenty of challenges, the pandemic also brought opportunities. The work-from-home (WFH) movement and exploding e-commerce channel are just two of these which AFFLINK and its members are attempting to capitalise on for future growth. According to the latest Annual Retail Trade Survey report, released in April by the United States Census Bureau, e-commerce sales increased by $244.2 billion or 43% in 2020 – rising from $571.2 billion in 2019 to $815.4 billion in 2020. So opportunity is rife – easy to see – but leveraging technology will be a key component

FINANCIAL BACKING As a subsidiary of Performance Food Group, AFFLINK is responsible for managing the non-food business of our $53 billion parent company. Being part of a Fortune 100 firm, we are able to do things a traditional ‘buying group’ could never do. We’re now focused on the ‘buy side’ for our members, using our strengths to deliver lower into-stock costs and not just being reliant on back-end rebate programmes. It’s this type of innovative thinking that will transcend our model and be a game changer for the independents that are a part of our group. With so much consolidation taking place in this industry, some might be pessimistic about the future of group affiliations. We don’t share that pessimism. Certainly, the traditional group model will soon become obsolete, but what we’re building is an ecosystem where stakeholders work in concert so that the rising tide will lift all boats. We want to be the home for independent dealers – and our pledge to our members is to continue to invest in the tools and technologies that will drive growth and provide differentiation for years to come.

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Dennis Riffer, CEO, AFFLINK

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The traditional group model will soon become obsolete, but what we’re building is an ecosystem where stakeholders work in concert so that the rising tide will lift all boats

NEXT ISSUE Big Interview Elina Pienimäki, CEO, Wulff Group Focus Core takeaways from the OPI Global Forum Category Updates • Breakroom • Furniture

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