Case Studies

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...

IQ TOTAL SOURCE – CHANGING PRIORITIES

Special Issue

BREAKROOM

In 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.

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.

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 and outside – and lots of cold calls. It was both a SPECIAL 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.

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.

Consumption of traditional OP was declining and we had to do something

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: 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.

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.

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.

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

Michela Malnati, Safety Business Line Director, Lyreco Italy