BIG INTERVIEW
Connecting the
business products world
Mike Rowsey, Harbinger National December/January 2020
Our very own!
OPI’s Steve Hilleard wins Outstanding Achievement Award INSIDE THIS ISSUE l Xerox makes a move for HP l New lease of life for ADVEO l EOPA shortlist revealed l EVO Group acquires l Clover future secured
l S.P. Richards: business contingency in practice l Health and well-being focus l The work colleague of the future l Paperworld preview
CONTENTS 18 Big Interview Mike Rowsey’s take on the current US business supplies sector 24 Special Feature Business continuity in times of strife is never easy. S.P. Richards had no choice but to rise to the challenge 28 Category Update Workplace well-being is important – and businesses are beginning to taking note 32 Spotlight Fellowes Brands takes a look at The Work Colleague of the Future 34 Advertorial David Lary explains HP’s reinvention 36 Research A preview of The State of the OP Industry 2019-20
Big Interview: Mike Rowsey, Harbinger National Mike Rowsey is a true veteran of the office products industry, having amassed a staggering 40 years of service in it. His experience is broad and comprehensive, spanning all channels. In this interview, Rowsey gives his bird’s eye view of our sector and its various components. The once famed power channel, the wholesalers, dealers and their buying groups, growth opportunities, new strategies and overall industry evolution are all topics up for scrutiny and discussion. SPECIAL FEATURE: EVERY PICTURE TELLS A STORY
40 Preview: Paperworld The world’s largest OP fair descends on Frankfurt 42 Review: Global Forum Business leaders converge in Chicago as industry reaches a tipping point 44 Review: Climb of Life Stepping out for a better – and cancer-free – future 46 Advertorial Rapesco’s growth in the face of adversity
REGULARS 5 Comment 6 News 16 Social Spy 48 5 minutes with... Jon Rossman 50 Final Word Travis Kaste
December/January 2020
We were fortunate in that we had done enough things right in our planning to be able to recover our business quickly. But there were certainly gaps. Our primary recovery focus was on our IT systems – as it should be. But every business also has legacy, non-automated business processes and routines that are every bit as important as those housed on your servers. I would urge everyone to look deeper into these kind of manual, legacy systems and make sure that they are covered as a central part of your continuity planning.
38 Advertorial Stamping gets a (digital) boost with COLOP’s e-mark
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COMMENT The OPI team EDITORIAL Editor Heike Dieckmann +44 (0)20 7841 2950 heike.dieckmann@opi.net Deputy Editor Michelle Sturman +44 (0)20 7841 2942 michelle.sturman@opi.net 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 (0)7973 186801 chris.exner@opi.net Head of Media Sales Chris Turness +44 (0)7872 684746 chris.turness@opi.net Digital Marketing Manager Aurora Enghis +44 (0)20 7841 2959 aurora.enghis@opi.net
EVENTS Events Manager Lisa Haywood +44 (0)20 7841 2941 events@opi.net
PRODUCTION & FINANCE Studio Joel Mitchell +44 (0)20 7841 2943 joel.mitchell@opi.net Operations & Production Amy Byrne +44 (0)20 7841 2950 amy.byrne@opi.net Finance Kelly Hilleard +44 (0)20 7841 2956 kelly.hilleard@opi.net
PUBLISHERS CEO Steve Hilleard +44 (0)20 7841 2940 steve.hilleard@opi.net Director Janet Bell +44 (0)20 7841 2941 janet.bell@opi.net Executive Assistant Debbie Garrand +44 (0)7718 660249 debbie.garrand@opi.net
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Credit where credit is due
y plan for this comment was to refer to Travis Kaste’s Final Word (page 50) in which he talks about the need to be visible and involved in our industry in order to fully be a part of and ultimately enhance it. Travis mentions a few people – going way back and more recent – who fit that bill. One of them is Steve Hilleard, the boss as I call him, and OPI’s CEO. It was then rather uncanny that a few days later, at the end of November, Steve won Outstanding Achievement at this year’s BOSS Awards (page 12). He won this award for many reasons, but two of them were certainly visibility and involvement, as David Langdown pointed out when he introduced him as the winner.
We’re all immensely proud of Steve’s achievements and hope that he will continue to lead OPI in the same way for many years to come Having known Steve now for nearly 21 years myself, I would add another word – commitment. And that’s commitment not just to run a successful company that – we hope – is evolving as much as the industry itself, but to do so philanthropically and with the greatest integrity. I know I speak for everybody at OPI when I say that we’re all immensely proud of Steve’s achievements and hope that he will continue to lead OPI in the same way for many years to come. There’s much more in this issue, of course. For one, our very own awards shortlist (page 7), decided during some heated discussions at the recent European Office Products Awards judges meeting in Amsterdam, the Netherlands. Then there’s the Big Interview with Mike Rowsey (page 18), a rare opportunity to talk to another very long-standing, visible and involved personality in our industry. And the Category Update (page 28) and Spotlight (page 32) features which explore the topic of health and well-being in the workplace, an issue that is currently grabbing the headlines. It offers plenty of opportunities as well as challenges to all operators in the supply chain, not to mention the end consumers themselves, which are trying to keep staff healthy, motivated and productive. On that note, I wish all OPI readers a very enjoyable festive season and a happy, healthy and successful start to 2020! HEIKE DIECKMANN, EDITOR
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Connecting the
business products world
Office Products International Ltd (OPI) 2nd Floor, 112 Clerkenwell Road London, EC1M 5SA, UK Tel: +44 (0)20 7841 2950
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No part of this magazine may be reproduced, copied, stored in an electronic retrieval system or transmitted save with written permission or in accordance with provision of the copyright designs and patents act of 1988. Stringent efforts have been made by Office Products International to ensure accuracy. However, due principally to the fact that data cannot always be verified, it is possible that some errors or omissions may occur. Office Products International cannot accept responsibility for such errors or omissions. Office Products International accepts no responsibility for comments made by contributing authors or interviewees that may offend.
December/January 2020
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NEWS
ADVEO France Managing Director Philippe Guillotin provided more details of the strategic direction of the group at a supplier update briefing held at the end of the second day of the conference. He began the hour-long meeting by thanking those vendors that had stood by the company during the recent turbulent period, saying “we will not forget”. Then, in tandem with Supply Chain Director Romain Thénard, he presented the main aspects of the “new ADVEO”.
Analysis:
A new lease of life
www.opi.net
A smaller, but financially stable ADVEO is looking to the future
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Following the collapse of its operations in Germany, Italy and Spain, ADVEO can no longer be considered a pan-European wholesaler. Nevertheless, under the new ownership of Sandton Capital Partners, it remains an important player in the French and Benelux markets with annual sales of approximately €250 million ($280 million). With its financial stability now secured, it was very much with the future in mind that the company held its annual ADVEO World conference at Disneyland Paris, France, over three days in mid-November. The event was supported by around 240 suppliers and attracted more than 1,700 visitors, mainly from members of ADVEO’s three reseller brands, Buro+, Calipage and Plein Ciel. On the floor of the busy vendor expo, it was certainly a question of business as usual as suppliers presented their 2020 product line-ups. There was a notable increase in the number of ergonomic, jan/san and breakroom vendors versus previous years as these categories become a greater part of the product mix. ADVEO itself had a strong presence with service-oriented offerings such as office coffee (via its Mokamore private brand) and copy and print. In terms of its development, ADVEO is focusing on a number of strategic pillars, and all the signs are that the wider group troubles over the past couple of years have not strangled key investments in areas such as digital capabilities and the supply chain. On the contrary, the impressive new central warehouse at Dammartin on the outskirts of Paris is now operational, a SAP ERP system has successfully been implemented and a number of customer-facing and supplier e-commerce tools are either up and running or in the pipeline.
Philippe Guillotin
SKU EXPANSION A recent market study carried out for ADVEO revealed the first thing that end-user customers looked for in a business supplies reseller was breadth of product – Dammartin will enable ADVEO to increase the number of SKUs stocked by 50% to 30,000 within the next 18 months. The new distribution facility will also act as a hub: 120 suppliers will centralise all their deliveries through Dammartin as of January 2020, with all vendors scheduled to follow suit over the following 12 months. The group’s four other sites – three in France and one in Belgium – will then act as satellite warehouses. These changes are not being offered free of charge to manufacturers. The argument is that vendors’ own distribution costs will be lowered as a result of ADVEO’s new central warehouse and they will therefore be expected to “share” these savings with the wholesaler. This announcement was met with a few mumblings of discontent at the vendor meeting, and tough negotiations are bound to be taking place over the coming weeks. On the technology side, SAP will enable improved data flows between the group and its suppliers, as well as better direct online communications and marketing opportunities between ADVEO’s resellers and vendors. A new concept called ADVEO Buying Group has also been launched that provides greater scope for direct purchases channelled through its distribution network. It has been a difficult past couple of years for Guillotin and his team, but 2019 is ending on a positive note for ADVEO and there are reasons to be optimistic about the future of the smaller, but more focused, group.
At the beginning of December, a group of senior executives from all channels in the business supplies industry came together in Amsterdam, Netherlands, for the annual European Office Products Awards (EOPA) judges meeting. Now in their 19th year, the EOPA are firmly established as the ultimate accolade for business products companies operating
in Europe. As has become customary during the process, the discussions among the judges were lively, with categories, nominations and entries often fiercely debated. The winners of the 12 categories will be announced during a Gala Dinner on 9 March 2020 at the Hotel Okura in Amsterdam during OPI’s Partnership event.
NEWS
EOPA 2020 shortlist announced
The EOPA 2020 shortlist is: Product of the Year • ACCO Brands – GBC Foton 30 Automatic Office Laminator • Avery Zweckform – Labels with UltraGrip Technology • COLOP – e-mark • Duracell – Lithium coin cells with double child safety • Fellowes Brands – Levado Height Adjustable Desk
Reseller of the Year – revenues under €100 million • Commercial Group • GBR Rossetto • Lomax • Streit Service & Solution Reseller of the Year – revenues over €100 million • Amazon • Banner • Böttcher • Bureau Vallée • New Office Centre
SPR sells regional distributor
Vendor of the Year
• Durable • Essity • Fellowes Brands • International Paper • tesa
Sustainability Award – NEW
• ACCO Brands EMEA • Bi-silque • Commercial Group • Essity • Lyreco
Video of the Year • BIC – Gel-ocity Quick Dry • COLOP – e-mark • Fellowes Brands – Your Work Colleague of the Future
Marketing Campaign of the Year • Avery France – Back to School Campaign • Fellowes Brands – Your Work Colleague of the Future Campaign • Office24 – Paper Paws • Office Friendly – Van-Tastic 2019 Initiative of the Year
• Integra Business Solutions –
i-merge: A Platform to Bring Businesses Together • International Paper – Reikan • Essity – Tork Clean Care, Office Trend Report 2019
Young Executive of the Year
• Huiru Zhang, Lyreco • Julien Barabant, Pilot
Corporation of Europe
• Esme Gonzalez,
Fellowes Brands
• Alexander Steffl,
Office Depot Europe Professional of the Year & Industry Achievement No shortlist – winners announced on the night For more information and to book a place at the EOPA Gala Dinner – which is open to anyone – please visit www.opi.net/eopa2020.
Industry Week back on the agenda Prevail 2019, the inaugural meeting of newly-combined US dealer organisation Independent Suppliers Group (ISG) took place at the beginning of November in Indianapolis, Indiana. There was a strong turnout, with more than 900 dealers, vendors, wholesalers ISG CEO and 3PVs in attendance Mike Maggio to discuss the current (l) & President and future state of the Mike Gentile independent dealer channel. A key announcement at Prevail was the date for the next meeting which is being billed as ‘Industry Week ‘20 Powered by ISG’. Due to be held in Rosemont, near Chicago, during the week of 5 October 2020, it sees ISG take a progressive lead, hosting what will likely be the most significant occasion on the US industry calendar and incorporating the annual Business Solutions Association (BSA) event. To what extent wholesalers S.P. Richards and Essendant will be involved – possibly locating their own gatherings into the same timeframe and location – is still unclear, as is any possible participation from associations such as AOPD and fellow dealer groups DPCG and Office Partners. However, ISG confirmed that it had invited all organisations within the independent dealer channel – other groups, the two wholesale distributors and BSA – to join it and co-locate their own events. Encouragingly, ISG added that all these stakeholders had “tentatively indicated a willingness” to do so.
December/January 2020
US wholesaler S.P. Richards (SPR) has agreed to sell its Garland C Norris (GCN) unit to Southeastern Paper Group (SEPG). GCN is an established regional wholesale distributor of food service disposables and janitorial and cleaning supplies. It was acquired by SPR in 2014, but has continued to operate as a standalone company. “The sale of GCN represents a step forward in our strategy to optimise our portfolio and strengthen our focus on other growth initiatives in the jan/san market,” stated S.P Richards EVP Steve Schultz. “GCN’s rich history in the region makes it a great fit with Southeastern. In addition, we are excited that GCN will deepen our relationship with SEPG.”
Wholesaler of the Year • Comercial del Sur • Exertis Supplies • JGBM • PBS Holding • Quantore
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NEWS
IN BRIEF Nugent leaves NZOS Mike Nugent’s brief tenure as Managing Director of leading independent dealer New Zealand Office Supplies (NZOS) has come to an end. Nugent confirmed he had left the reseller to return to technology sales, taking on a commercial role at Optic Security Group. He didn’t specify his reasons for leaving NZOS after just a few months in the role, but OPI understands that owner Mike Manikas is now back in charge. CNG acquires packaging specialist US distribution giant Central National Gottesman (CNG) has bought California-based packaging products supplier Kilmer, Wagner & Wise. CNG has made the acquisition via its Spicers Paper division, an independent paper merchant serving the western US. Clover Wireless in major acquisition Clover Wireless – the former sister company of Clover Imaging Group – has bought Netherlands-based technology life cycle firm Teleplan for an undisclosed sum. Teleplan is a leading global player in the mobile phone aftersales market. It operates in more than 120 countries, employs almost 5,000 people and had 2018 annual sales of around €240 million ($266 million). Amazon Business Prime launches in another European country Amazon has made its Business Prime offering open to customers in France. The proposition is similar to that in other markets, with four tiered memberships. Annual subscriptions range from €50 ($55) for three users to €3,000 for an unlimited number of buyers linked to the account.
www.opi.net
Officeworks’ Hunter on parental leave Officeworks’ Managing Director Sarah Hunter will be absent from the business for the next few months as she goes on parental leave. Taking over as Acting Managing Director at the Australian office supplies reseller is its experienced CFO Michael Howard.
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Takkt to reorganise Business supplies and MRO reseller Takkt has announced a significant group transformation plan that will see it reorganise two go-to-market strategies: Omnichannel Commerce and Web-Focused Commerce. The changes – which will take two to three years to complete – will mean an end to the current Takkt Europe and Takkt North America financial reporting structure.
EVO acquires Premier Vanguard
UK multichannel office products operator EVO Group of Companies has announced the acquisition of Premier Vanguard, the country’s largest independent manufacturer of paper rolls. Bradford-based Premier Vanguard employs around 80 staff and has annual sales of more than £20 million ($26 million). It has been enjoying strong double-digit growth recently as it has developed specialised offerings for verticals such as retail, healthcare and hospitality, making the firm one of the strongest suppliers of goods not for resale in the UK. EVO Group CEO Steve Haworth commented: “This acquisition is a good fit with our strategy and will bring a wealth of opportunities to both EVO and Premier Vanguard. Premier Vanguard will continue to run as an independent group company alongside VOW, Banner and Truline, led by [co-directors] Dominic [De Luca] and John [Clemie], and we look forward to supporting its continued growth and success into the future.”
Essendant names Vertical Markets leader North American wholesaler Essendant has promoted Guy Unterberg to the role of Senior Director of its Guy successful Vertical Markets Group (VMG). Unterberg Unterberg joined Essendant in 2017 as Director of Business Accounts, and has been credited with winning dozens of regional and national accounts for the company’s customers since then. A 25-year OP veteran (Boise Cascade, OfficeMax and Office Depot), Unterberg will oversee the entire VMG unit, helping business products dealers gain share in key verticals such as federal and state government, enterprise, education and healthcare.
Kaut-Bullinger reveals new management team
Following the departures of former Managing Directors Cordula Adamek and Bernhard Greinsberger, German dealer Kaut-Bullinger has named a three-person leadership team at its Office + Solution B2B division. Two are internal appointments in the form of sales managers Alexander Obermeier and Stefan Klein, who have been with the company since 2014 and 2005 respectively. The third is Andreas Keller, who is joining to head up marketing at the large-format printing, 3D and workplace design segments. All three will report directly to Group Managing Director Robert Brech who said the new structure would enable Kaut-Bullinger to have a more forward-thinking mentality and speed up its decision-making processes. He added that for 2019 the company was expecting its best set of financial results “in a long time”.
From left: Alexander Obermeier, Robert Brech, Andreas Keller, Stefan Klein
NEWS
Clover Imaging future secured
The management of Clover Imaging Group has teamed up with Norwest Equity Partners (NEP) to acquire the aftermarket imaging supplies remanufacturer from 4L Holdings. There had been speculation about the future of the Clover Technologies Group for several months after it brought in strategic advisors earlier in 2019 to explore its options. This followed major contract losses at both its Clover Wireless and Clover Imaging divisions that led to a steep decline in the value of the group’s debt. Now, the Clover Imaging entity has been acquired by its existing management team and NEP after an agreement was reached with Clover Technologies owner, Golden Gate Capital-backed 4L Holdings, and its lenders. No details of the transaction were provided, but it was confirmed that Chairman Jim Cerkleski, CEO George Milton and President Eric Martin would continue to lead the business, which will remain headquartered in the Chicago, Illinois, area. “Clover’s executive leadership team, in partnership with NEP, will once again control the destiny of the company we built,” said Cerkleski, adding: “Under our new, very low debt structure, we have a lot of flexibility moving forward and are well positioned to write the next chapter for Clover Imaging Group.” NEP is no stranger to the print market. Since 2015, it has been the owner of Marco, one of the most successful and fastest-growing copier and technology dealers in the US.
Jim Cerkleski
Goods iQ expands line-up with It’s Academic deal
December/January 2020
In what it is hailing as a “landmark deal”, US office products supplier Goods iQ (formerly Amax) has announced the acquisition of consumer goods company It’s Academic. It’s Academic is a recognised player in the office and educational products market. The purchase will add more than 130 products to Goods iQ’s line-up and complement its existing brands such as Black & Decker, Bostitch, PaperPro and Stanley. Management of the combined entity will be based at Goods iQ’s headquarters in North Kingstown, Rhode Island, with distribution operations transitioning to Goods iQ facilities in Savannah, Georgia, and Walnut, California. In November 2019, Amax revealed the Goods iQ name as its new corporate identity as it completed a move to an expanded head office.
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NEWS
Analysis:
A “NO-BRAINER” In the 4 December document, Icahn was scathing about HP’s standalone restructuring plan, likening it to “rearranging the deck chairs on the Titanic”. He called the combination of HP and Xerox “one of the most obvious no-brainers I have ever encountered in my career” and questioned the motives of the HP board for not beginning a mutual due diligence process. “I am left to wonder whether this is simply a delay tactic aimed at attempting to preserve the lucrative positions of the CEO and members of the board, which they fear might be affected if a combination does take place,” he wrote. Icahn is a key figure in any deal between HP and Xerox. He is the biggest shareholder in Xerox with a 10.6% holding and has built up a 4.25% stake in HP, making him its fifth largest single shareholder. The extent to which he will be able to influence other investors will also be an important factor: the four largest owners of Xerox stock (including Icahn Associates) just so happen to collectively own 22.5% of HP, so they would presumably be able put some pressure on the HP board. At the time of writing, HP was steadfastly sticking to its standalone transformation plan as outlined at its annual analyst meeting in October (see also page 34 for details of this strategy). It clearly took a look at Xerox earlier in 2019 and decided, for whatever reason, not to pursue an acquisition. That is probably what piqued Xerox (driven by Icahn) into making its audacious offer for HP. But is it merely a bluff to try and force the HP board back to the table and buy Xerox? You would certainly not rule out that strategy and it will be interesting to see how the situation plays out in the next few weeks.
Xerox zeroes in on HP
Activist investor Carl Icahn is trying to engineer a combination of the two global print giants As this issue of OPI goes to press, print behemoths HP Inc and Xerox are embroiled in a war of words following Xerox’s surprise takeover offer for its larger rival. On 6 November 2019, after several days of speculation, HP confirmed it had received a combined cash and stock offer from Xerox that valued the print and PC manufacturer at approximately $33 billion. Xerox’s move came shortly after it had extracted itself from a joint venture partnership with Japan-based Fujifilm – something that, along with a $2.3 billion cash sum, gave it the freedom to pursue its own M&A activity. HP’s board unanimously rejected the takeover offer from Xerox, saying it significantly undervalued the Palo Alto, California-based firm and was not in the best interests of its
Carl Icahn
www.opi.net
We are open to exploring whether there is value to be created [...] through a potential combination with Xerox
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shareholders. It also questioned the financing of the proposed deal and raised concerns about Xerox’s business performance over the previous 12 months. However, HP also revealed it had already conducted talks with Xerox in August and September and that the company would be willing to take a look at Xerox’s books. In a letter dated 17 November, HP wrote: “We recognise the potential benefits of consolidation, and we are open to exploring whether there is value to be created for HP shareholders through a potential combination with Xerox. With substantive engagement from Xerox management and access to diligence information on Xerox, we believe that we can quickly evaluate the merits of a potential transaction.” Xerox was not deterred by that stance and, with activist investor Carl Icahn seemingly pulling the strings, continued to pursue its own takeover actions. After the company threatened to sidestep the HP board and take a hostile proposal directly to HP’s stockholders, Icahn penned an open letter imploring HP’s shareholders to press the company’s board to engage with Xerox in friendly discussions.
Xerox will buy HP
21% opi.net poll
HP Inc & Xerox – what do you think will ultimately happen? 25%
HP will buy Xerox
54%
The companies won’t merge
Navigator names new CEO
Portugal-based paper group The Navigator Company has chosen an experienced internal candidate as its next CEO. Taking the helm as of 1 January 2020 is António Redondo, a current member of the executive committee who has been with the manufacturer since 1987. Over the years, he has been responsible for a number of different areas, including pulp and paper sales and marketing, supply chain, logistics, product development, revenue management and corporate communications. The 55-year-old succeeds João Castello Branco, the group’s Chairman, who has been interim CEO since April 2019 following the departure of Diogo da Silveira.
NEWS
PICTURE OF THE MONTH
Independent Suppliers Group President Mike Gentile takes his seat for a spell in the ‘dunk tank’ at November’s Prevail 2019 meeting in Indianapolis, Indiana. Readers concerned about Gentile’s well-being should note that, due to health and safety regulations, the tank was filled with cushions, not the customary icy water!
December/January 2020 11
NEWS
BOSS honour for Steve Hilleard
OPI’s very own Steve Hilleard was recognised by the UK office products industry at the end of November when he took home the Outstanding Achievement prize at the 2019 BOSS Awards. Steve has been a key figure on the global office products stage since 1995, developing OPI over the years into an ever-evolving publishing and events company that has been described as “the glue that binds the OP world together”. Steve was presented with his award by David Langdown, Chief Marketing Officer at Focus7 International. Langdown congratulated the OPI CEO on his contribution to the UK and global office products industry over the past 25 years, and on his tireless fundraising efforts in support of medical research bodies such as the Institute of Cancer Research and City of Hope. In his acceptance speech, cycling enthusiast Steve paid tribute to his wife Kelly and OPI co-director Janet Bell, eliciting spontaneous applause from the audience when he said: “I may not be the wealthiest guy in the room, but I’m probably the healthiest and happiest.” Commenting later on the award, Steve said: “It was an enormous surprise and a very special evening. To receive such recognition from the sector I have enjoyed serving for so many years is truly humbling. Sharing that moment with my wife and so many friends and industry colleagues is a memory I will treasure.”
In addition to Outstanding Achievement, there were 13 other categories at this year’s BOSS Awards. The winners were: l Brand Manufacturer: Fellowes Brands l Dealer Excellence (up to £5 million): Office Oracle l Dealer Excellence (over £5 million): Paperstone l E-Business Award: Office Power l Initiative of the Year: BIC – Tour de France incentive l New Product of the Year: Safescan – TimeMoto l Professional of the Year: Helen Wade, VOW Wholesale l Emerging Professional of the Year: Scott Castle, VOW Wholesale and Alex Stone, Office Friendly l Publication of the Year: Exertis l Service Provider of the Year: Office Friendly l Sustainable Business Award: Commercial Group l BOSS Apprentice of the Year: Jo Pethard, United l Unsung Heroes: Rebecca Brook, Sarah Whale, Steve Blowers, Matthew Allen (all VOW Wholesale), Marilyn Caster (Office Friendly), Levhayne Manning (BSL-IT), Advantia Customer Service Team, Phil Baylis (Trodat)
WHAT THEY SAID... News of Steve’s award prompted a flood of congratulatory messages from both sides of the Atlantic. “Recognition of this magnitude is so well deserved. Whether it be in the UK, US or any other place around the globe, you should be so very proud of the contributions you have made over the years to our industry and to the charitable organisations which you continue to support.” Jess Beim, former SVP, Avery Dennison, and 2007 Spirit of Life Honouree
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“You have certainly been a significant part of the office products industry and your zeal in raising funds to find the cure for cancer has been an inspiration for all who know you.” Peter Tilearcio, Central National Gottesman
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“Sincere congratulations on this well-deserved recognition after so many years of investing blood, sweat and tears into this industry. Your endurance in terms of getting this industry together and adding meaningful value through numerous events is impressive.” Michel van Beek, President EMEA /Asia Pacific, Fellowes Brands
“I’ve had the privilege of working with Steve for nearly 20 years and it has been a pleasure. He’s extremely hard-working and combines a strategic vision with insightful leadership at OPI. I can’t think of anyone who deserves this award more.” Janet Bell, co-director, OPI “There wasn’t a global OP industry when OPI started. Steve has brought the industry together in all continents.” Jonathan Smith, European VP of Sales, Avery “One thing I don’t think people know about is the number of career and business opportunities that Steve has played a part in over the years. I’m sure all of those people who have benefitted will be really grateful to him for that.” Robert Baldrey, CEO, Prism Advisory “Steve’s commitment to our industry, both globally and in the US, has been tremendous. He has fostered so much collegiality and so many friendships.” Mike Gentile, President, Independent Suppliers Group
There have been further twists in the investment by Japanese stationery and office furniture giant Kokuyo in writing instruments manufacturer Pentel. Early in 2019, Kokuyo acquired an indirect 37.5% stake in Pentel when it bought out a fund held by Mercuria Investment. After several months of discussions, Pentel’s board finally agreed in late September to a transfer of these shares to Kokuyo, making it the largest shareholder in the pen maker. Following a 15 November board meeting, Kokuyo declared it intended to acquire a majority stake in Pentel and make it a fully consolidated subsidiary. It accused Pentel of being “uncooperative” in discussions over a business alliance between the two companies and of holding talks with a third party about a major capital and business tie-up that would effectively block Kokuyo from upping its stake. Kokuyo therefore launched a hostile bid for Pentel directly with the manufacturer’s shareholders. It initially offered ¥3,500 ($32) per share, but then upped this to ¥3,750 after another Japanese stationery group, Plus Corporation, made a rival proposal that had the backing of Pentel’s board of directors. Pentel urged its shareholders to reject the Kokuyo bid ahead of the expiration date of its tender offer – which was shortly after OPI went to press.
Smead changes manufacturing footprint
NEWS
Battle for control of Pentel
Organisational products vendor Smead is to expand two US-based facilities after carrying out what it calls an “operations efficiency initiative”. As part of this project, the company will create 120 new manufacturing jobs in the states of Ohio and Utah. At the same time, it will be closing its production and distribution location in McAllen, Texas, and its facility in Reynosa, Mexico, that is owned and operated by third party partner Am-Mex. “We have the opportunity to continue to invest in and utilise proprietary technology as well as optimise production and distribution in our other facilities,” said CEO Sharon Avent. “Our new manufacturing and distribution structure will ensure sufficient capacity to meet current and future needs, while maintaining our historically strong levels of customer service.” President Casey Avent added: “Once this process is completed, Smead will once again be producing 100% of its paper-based products in the US. We believe that this will further establish Smead as the leader in our product categories.”
December/January 2020 13
NEWS
Amazon to launch Smart Shelf
The Amazon Dash button may be a thing of the past, but the e-commerce giant is keeping the brand alive in a new smart shelf set to be available for US business customers in 2020. The Amazon Dash Smart Shelf is a shelf with a built-in weighing scale that automatically orders supplies when they run low. Unlike the Dash Button, users do not have to intervene to place an order; when the shelf detects a certain weight of product remaining, it will trigger an order. If users don’t want the automatic ordering function, they can receive low inventory notifications instead. The Dash Smart Shelf will come in three sizes – small, medium and large – and will initially only be available to registered US businesses. The initiative appears to be aimed at basic office supplies such as paper, notebooks, sticky notes, pens and coffee. Amazon is offering 15% discounts on items from selected partners that include Hammermill, BIC, Kimberly-Clark Professional, Folgers, Keurig, 3M and Nestlé Professional.
www.opi.net
Office Depot Europe gathers top suppliers
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Office Depot Europe held its annual vendor conference in the Netherlands in November 2019. The event – hosted by the reseller’s Head of Procurement Roland Hertwig – took place in the picturesque seaside resort of Noordwijk aan Zee and brought together around 140 vendor and Office Depot representatives for a full day of presentations and networking. The day’s tagline was ‘competitive partnerships’ – not in the sense of Office Depot competing with its suppliers, but in partnering with them in a challenging market and by creating differentiation through stronger, long-term relations. Depot also wanted to emphasise its ambition to service customers anytime and anywhere, with solutions that are not only productive and efficient, but also sustainable and cost effective.“We jointly operate with our vendors in a dynamic market environment,” said Hertwig. “Customer demands are constantly changing, competitors come and go, and we want to stand out with our solutions, offer customers an optimal [experience] and at competitive prices. It’s about making our vendor partnerships work in the best way by close cooperation, differentiation and adding clear value to Roland Hertwig customers,” he added.
IN BRIEF GOJO names CEO Purell brand owner GOJO Industries has appointed Carey Jaros as CEO from 1 January 2020. Jaros joined GOJO in 2016 and was named COO in July 2018. As CEO, she will work alongside Executive Chair Marcella Kanfer Rolnick, daughter of former CEO Joe Kanfer, and Mark Lerner, a GOJO company veteran who will take on the role of Senior Advisor as well as President Emeritus. School Specialty exploring sale
US-based educational supplies and solutions reseller School Specialty has launched a full tactical review of the business. It said the analysis would look at potential strategic and financing alternatives which could include a sale of the company or a business combination. Avery makes bolt-on acquisition Avery is paying C$8.1 million (US$6.1 million) for Stuck On You, an Australia-based children’s labels manufacturer. The company has annual sales of around C$8 million and an adjusted EBITDA margin of more than 16%. The deal represents further expansion of Avery’s successful direct-to-consumer strategy. Tech Data to go private
Technology distribution giant Tech Data is set to be acquired by private equity firm Apollo Global Management. The company’s board accepted an improved $6 billion offer from Apollo following a rival bid from Warren Buffett’s Berkshire Hathaway group. Calipage goes Dutch ADVEO’s Calipage reseller network is to expand into the Netherlands after two Dutch office supplies retailers – ELS and DKA Alphen – said they would adopt its branding as of 1 January 2020. Calipage currently has more than 300 dealers in France and a further 30 in Belgium. Two acquisitions for Cott Water and beverages supplier Cott has made an acquisition on each side of the Atlantic. Its DS Services division in the US has bought The Water Guy, a leading provider of water solutions and office coffee services to residential and commercial customers. In Europe, Cott-owned Eden Springs has acquired Netherlands-based water supplier Viteau.
SOCIAL SPY Social media highlights from the business products industry around the world Jean-Marc Duvoisin
Avery @AveryProducts
CEO at Nespresso SA
As I’m visiting coffee farmers in Zimbabwe, I notice how their lives got transformed since we rolled out the AAA sustainability quality programme in their areas. It was brought to life thanks to the partnership with the non-profit organisation TechnoServe, which helps people in the developing world use the power of business to improve their communities and leave poverty behind. Fellowes Brands
We walk for hope! Avery Products Corporation has been a long-time supporter of City of Hope. Team Avery participated in Walk for Hope to raise funds for cancer research, treatment and education.
Essendant
Over 50 Fellowes employees volunteered their time to help box meals for the Feed My Starving Children organisation. A total of 656 boxes were packed which provides 141,494 meals. That feeds 388 kids for a year! #TheFellowesWay
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Officeworks
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Our Ringwood store team is making bigger things happen for the environment by reducing the volume of their operational waste to fit into a single 240-litre household wheelie bin each week. This means they’re recycling more than 95% of their waste. Great effort team! #NationalRecyclingWeek
This year, our annual Essendant Charitable Foundation Global Giving Trip sent ten of our associates to Peru, working in partnership with World Vision and Free Wheelchair Mission. Our trip was focused on programmes that ensure local children are safe, active, educated and inspired! #globalgiving
HK Wentworth
We are proud partners of The National Forest Company, which is about to reach nine million trees planted. Last week, we had the pleasure of receiving our trees as part of the free tree scheme. Fantastic to see how trees transform and bring positive change.
FSIoffice
FSIoffice is celebrating #WomensEntrepreneurshipDay! In addition to celebrating our own women entrepreneurs, we support all women in business today and every day. Thank you, Kim Leazer, Donna Jordan and Beth Freeman for your leadership!
BIG INTERVIEW
A bird’s
EYE VIEW A topical US industry evaluation from one of the longest-serving and best-known personalities in our sector
M
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ike Rowsey, CEO of Chicago-based manufacturer rep group Harbinger National, is a true veteran of the office products industry, having amassed a staggering 40 years of service in it. His experience is broad and comprehensive, spanning the contract stationery (Boise Cascade Office Products/ OfficeMax), wholesale (Associated Stationers/ United Stationers), and manufacturing and dealer (Harbinger) channels. It’s been a year with plenty of activity in the US market, so OPI’s CEO Steve Hilleard took a rare interview opportunity and caught up with Rowsey to get his perspective on the state of the OP space and its various components. The once famed power channel, the wholesalers, dealers and their buying groups, growth opportunities, new strategies and overall industry evolution were all topics up for scrutiny and discussion.
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OPI: Let’s start with the big boxes in the North American market. We used to call them the power channel, but somewhere along the way they seem to have lost that ‘accreditation’. What’s your view? Mike Rowsey: It depends how far you want to go back I guess. But since you mention that they somehow lost that descriptive term, let me just say this as a general statement: I don’t think any of them understood, nor anticipated, the speed as well as the depth that the secular decline of traditional office products was going to have on their businesses. That’s one thing. Then you combine it with the arrival of new entrants into our world, whether that be Walmart, Costco, Amazon or anybody else in e-commerce. Finally, you compound all this with some really bad real estate and geographic decisions in terms of their retail businesses. A perfect storm if ever I saw one, and none of the big players – and by those I mean Staples, Office Depot and OfficeMax before the latter two became just one – really paused, looked at the facts and thought: how is all this going to impact my business and how do I have to change? It was all short-term thinking and this is why they are where they are today. The turnaround lightbulb moment came far too late.
It only happened fairly recently that Staples and Depot have been trying to radically change their model – Depot through its federation strategy and Staples through buying Essendant. But it’s going to be a real challenge for them to be successful in the long term. That said, credit to them for finally thinking outside the box and trying to change the look of their business in a positive manner to give them any kind of growth vehicle over the next two to ten years. OPI: Did their status as public companies hamper their ability to think a bit longer term? MR: An excellent point and something I experienced myself. When you’re looking at things on a quarter-by-quarter basis and dealing with large investors and banks, it’s incredibly difficult to make radical changes in a way that private companies can. OPI: By that rationale, does that mean Staples still has a better chance of re-engineering its business than Office Depot? MR: I believe it does, although there are plenty of other issues at play too. OPI: There are many examples of companies that failed to see change coming, Kodak and
BIG INTERVIEW Mike Rowsey
It only happened fairly recently that Staples and Depot have been trying to radically change their model
OPI: Let’s pick on Staples for a moment. Were you surprised when the Essendant deal was first approved? And what are your thoughts now, almost a year in? MR: Well, as you know, I spent the first 12 years of my office products career at Boise Cascade Office Products. We were the first company with a dual distribution model at the time, meaning we had a contract stationery and a wholesale business. When the wholesale part – Associated Stationers – was spun off and merged with what was then United Stationers [now Essendant], I never thought
December/January 2020
Blockbuster being two obvious ones. But what could these – and other – OP resellers have done differently? The digitisation of the workplace did occur quite quickly, didn’t it? MR: Well, there’s nothing that anybody could have done about the actual secular decline of analogue office products. But had they recognised it sooner, they could have made changes to their operating model and gotten into businesses that weren’t going to be quite as impacted as their existing ones. As you said, being a public company makes any execution a whole lot more difficult. I do believe, however, that there was also a certain arrogance, unwillingness and even lack of ability to predict the future and make some tough decisions about being part of a global rather than just North American or US world.
OPI: If the Federal Trade Commission had approved the second attempt to merge Staples and Office Depot about three years ago, do you think the two businesses – combined – would have been in the same position as they are now? MR: They wouldn’t be. In the short term, that merger would have absolutely had a positive impact, be that in terms of reducing headcount, rationalising the stores or enhancing buyer power. Wall Street would have been happy for a little while. But it wouldn’t have changed the fact that there is something wrong with the broad business model. It wouldn’t have changed secular decline. It wouldn’t have changed the rise of Amazon. It merely would have delayed things.
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Mike Rowsey BIG INTERVIEW
I’d hear the term dual distributor again. So yes, it did surprise me and I believe it shocked everyone. That said and having experienced it myself, I do understand the concept. It can be beneficial for all parties, but there are challenges. The combined entity has to prove that dealing with Staples makes independents better businesses. Dealers have to come away from this and say: if I wasn’t involved with Staples/Essendant, I wouldn’t be able to buy as well, I wouldn’t have a managed print service, I would have a less efficient supply chain, I wouldn’t be able to sell all these adjacent categories, etc. Not only do Sandy Douglas and his team need to articulate the benefits, they need to also deliver on the promises. Dealers will not want to buy from a company that is owned by Staples – unless they see the benefits. Staples has got the opportunity to do something unique and I believe there’s a chance it can work. Now is not a time for small incremental change; what is needed is radical change and that’s exactly what Staples has done. OPI: If there even is such a thing, how long do you think the honeymoon period will last for independent dealers? MR: I would say that all industry participants, including vendors and dealers, will want to see results within 18 months of this deal being finalised. That’s not very long to go. OPI: Given your earlier comments about publicly-listed companies, could you foresee a scenario whereby Staples’ delivery business is taken public again under the guidance of Sandy Douglas? MR: If you separated out the delivery component of Staples, you would certainly have a better business model than the current retail and delivery combination. It would also be much more profitable than the historic, cumbersome Staples or Depot model. But you still have the same issues around secular decline and how you’re going to grow. That’s the biggest question Sandy would have to answer if the delivery business were to go public. I don’t think Sycamore Partners/Staples are done yet with their strategy. I’m convinced they will make an acquisition that changes the look of Staples as we know it today, and puts it into a position from which it can grow. Then, eventually, it could be taken public again.
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OPI: What do you think will happen to Staples’ retail business in the US? MR: I have no idea. What I do know is that Sycamore as a private equity group is really good at the retail game. Sandy is focused on the delivery part, no doubt, but I’m sure that Sycamore will do something with the retail side as well.
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OPI: It’s run pretty separately already, isn’t it? MR: To a degree, yes, on a day-to-day basis, although there’s a shared service component up in the Framingham headquarters.
OPI: Talking of that Boston market… MR: I know where you’re going with this! OPI: I’m sure you do. Much has been said about the closeness between Essendant and WB Mason, the largest independent in North America. My understanding is that Leo (Meehan) is fairly comfortable with where things are at the moment, but surely that won’t be the case forever. What’s your view? MR: I would argue that Leo is in a relatively enviable position right now as a result of the Staples/Essendant deal. He’s buying better than he has ever bought before, both from a manufacturing and a wholesale angle. And what has really changed for the worse? Leo has competed with Staples his entire life and he continues to do so. Also on the plus side, he now has a voice in the halls of Framingham. Not literally, of course, but when you’re the single biggest customer of Essendant, the whole entity will be thinking very carefully about how it’s going to deal with you. Leo knows there are different operating models he could employ if he wanted to or feels forced to. At the same time, he’s also an attractive acquisition candidate for Staples – or anybody else for that matter, including Depot. So he’s in a good place and just has to decide where to go from here.
OPI: Talking of Depot, let’s move down the coast to Florida. You spoke earlier about Staples potentially making an acquisition that would take it into a slightly different area. Office Depot’s purchase of CompuCom just over two years ago could be viewed as a similar approach. It hasn’t quite worked so far, but to what extent have the issues with CompuCom had to do with execution rather than a misguided strategy?
I have to admit [the federation strategy is] an efficient model that allows dealers to look and act local, yet use the strength of a bigger power like Office Depot
OPI: Let’s talk about one wholesaler – SPR, as you’ve just mentioned. What do you make of that operator’s current position? In addition to all the industry-specific challenges, SPR also had the enormous difficulty of having to deal with a major business disruption last summer with the terrible fire at its warehouse and HQ (see Special Feature, page 24). MR: I’ll start with saying that SPR is one hell of a good wholesaler and an outstanding competitor for Essendant. It has an operating model that is incredibly efficient. And whatever investments it chooses to make, SPR has the support of parent company Genuine Parts from a capital standpoint. That’s all positive. But it faces the same headwinds as everyone else, above all secular decline in the category, so the question here too is what will it do to really grow the business going forward? Bringing Steve Schultz in from GOJO Industries in early 2019 to lead the jan/san and safety businesses is an obvious sign to me that the wholesaler sees plenty of opportunities in increasing those parts of the business.
December/January 2020
MR: First of all, I agree with you. The acquisition was Gerry Smith’s attempt to make a radical change in the business model of Office Depot, hoping to find a vehicle for growth that would offset some of the declines affecting the core business. Conceptually, it was a good thing to do, especially since CompuCom comes from a place he was already very familiar with. But, as you say, there were obstacles to be overcome and I can only assume that Gerry and
OPI: The other big Depot initiative is the federation strategy. When someone at a business lunch asked you recently what is holding Depot back in terms of that strategy, you said quite simply $1.25, which was its share price at the time. It’s gone up since then [editor’s note: shares stood at $2.26 at the time of going to press]. Is your point still valid? MR: To an extent, yes. If you’re an independent dealer, are thinking about moving to the federation and want to continue to work for the next ten years, you would worry about the long-term viability of this company you’re going to become a part of and work for. That said, you would also have some money in the bank and perhaps rest a little easier than before. There are two things we are going to look back on in 18 months or so to assess the impact that they might have had. One is clearly the Staples/ Essendant situation. The other one is absolutely the federation strategy and whether it will turn out to be as successful as Depot hopes it to be. I have to admit, it’s an efficient model that allows dealers to look and act local, yet use the strength of a bigger power like Office Depot. If all the companies involved have long-term potential, I think the federation has got a great future. And former S. P. Richards (SPR) SVP Bryan Wight was an excellent choice to run it. He has the capability to articulate the vision both into corporate Depot but also back out into the field – a kind of perfect conduit between camps. If he hits the billion dollar mark that he’s talking about, that money is going to come out of the independent dealer community (IDC). What would that mean for the buying groups and the wholesalers?
BIG INTERVIEW Mike Rowsey
his team weren’t aware of just how big those obstacles were. Time will tell whether or not he can right the ship and make the acquisition something that delivers growth for Depot.
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Mike Rowsey BIG INTERVIEW
That’s a great start in my opinion. Is it enough? Finding additional ways to grow the market is vital. But a wholesaler also needs to be very competitive from a buying standpoint. Is that the case for SPR? I have a huge amount of respect for [SVP of Merchandising] Jack Reagan and his crew, and I’m sure he will work very diligently to ensure the company is going to be competitive in the marketplace. It’s a huge challenge. OPI: I guess Jack’s message would be: “Guys, if you don’t support me and give me the same programmes that you’re giving my competitor, we may not be around and then you’re left with one customer.” MR: I’m sure it would, and he would be spot on. In reality, however, can SPR close the gap to Staples/ Essendant in terms of buying power with that argument? It’s a tough one.
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OPI: You already mentioned the IDC and questioned how a growing Depot federation would impact on that community. Plenty has happened in 2019 with the coming together of the three main dealer groups. What’s your opinion on that merger and the new Independent Suppliers Group (ISG)? MR: First of all, it should have happened three or four years ago. But I understand the complexities involved. I tip my hat to the dealers that have worked so hard on bringing the groups together. The same appreciation goes to the two Mikes [CEO Mike Maggio and President Mike Gentile] who I think were gentlemen and scholars and had only ever the well-being of the IDC in their hearts when they worked diligently to make this merger happen. Who knows if they will take a million dollars of cost out of the supply chain. Whatever they do take out will flow back into the IDC and that’s a good thing. One question is though: how are they going to make this combined group more relevant than they were separately? By flexing their muscles with greater buying power? By working on content? What are the Mikes going to do with that one million bucks to make the IDC more efficient, more profitable and more competitive in the marketplace? That’s the challenge now.
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OPI: One of the strong messages I took away from the recent ISG Prevail event was the need for members to really get behind the programmes and everything else that’s being negotiated as a cooperative. MR: Mike Gentile and I were both at Boise Cascade for a long time. When we worked there, the guy at the top was Chris Milliken, as you well know. His message was always that, whatever you did, you all pulled together and worked for the good of the company and its long-term viability. For the new ISG, it’s about more than just pulling together their buying power; it’s about independents following behind the group in unison when it comes to using that buying power. If they do that, they will be so much more relevant. Looking a vendor in the eye and saying – and
meaning – that this vendor will get 100% of this business. That is how you’re going to become more relevant. OPI: This relevancy word keeps coming up in industry chats at the moment. On that note, do you think the current structure we have is wrongly balanced? Are the wholesalers having too much influence, is it all too much about rebate and pre-bate programmes and content issues? The word dysfunctional is also cropping up increasingly amid frustration of some industry players. MR: The reality is that all the parties have competing needs and desires, but everybody wants to sell product and make as much money as they can. Imagine the IDC and the wholesalers sitting around the table and saying: what is the most efficient offering or model between a wholesaler and a dealer that allows both to make money? Let’s not have programmes that drive cost into the business because it takes hoards of
Ask yourself: am I doing everything I possibly can to make sure I’m satisfying the needs of my customers? If you aren’t, somebody else will conflict. I believe the realisation that we cannot continue to do things the way we’ve done them for the past 30 years is just about there, but we haven’t yet had the catalyst to make that change happen. OPI: Can you foresee that catalyst? MR: Not entirely. That said, things are moving along. We only have to go back to Essendant and the radical changes that are happening there. Most got forced upon the wholesaler. The Staples deal was not a decision made by Essendant. But it’s prompting change and sometimes, when something unexpected happens, it spurs on great ideas and more efficient models.
OPI: What does that mean in practical terms? MR: You need to give value to your customers, at every opportunity. If they are paying for something that doesn’t give them value, you are inefficient.
OPI: Throughout this interview you haven’t once mentioned your own company which, I can tell you, is a complete rarity. How have all the industry developments affected businesses like yours, ie a manufacturer rep group? MR: We face the same issues as everyone else. Everybody that is heavily focused on traditional OP is struggling. You’re selling a product that’s becoming less relevant. So we may represent a vendor that gets bought by another one. That’s not to say we have done a bad job with that vendor, but we get caught up in the downward spiral of manufacturer consolidation. We also feel it when an Office Depot buys a federation account. That account then tends to buy more office products from Depot, even the Office Depot private labe brand. About 95% of all the lines Harbinger represents and 95% of all of our income now comes from non-traditional office products. We represent companies like GOJO, Honeywell, Energizer and Ergodyne from the various adjacent categories such as jan/san, MRO and safety. The idea is that we try to primarily focus on growth categories which make sense for dealers. Harbinger is seeing some pretty dramatic growth and I think that’s a result and combination of having a national platform which vendors like Honeywell really appreciate and, as I said, staying away from products and services that a more traditional rep group would sell. Unless, that is, they have a unique value proposition like TOPS. OPI: What’s the biggest change you’ve seen in your business? MR: Over the past seven years or so, I’d say it’s the realisation that our customer is not the dealer, but the end user of the product. We spend more than 50% of our time today with the end user, trying to drive sales both for our manufacturer and reseller partners. We face the same headwinds as everyone else, but instead of sticking our head into the sand and saying there’s nothing we can do about it, we like to find other avenues and products that represent growth. And with these, we drive the sale all the way to the end user because it’s the end user that wants them, rather than all the intermediaries in the process. OPI: Thank you for your time and for giving us this broad Mike Rowsey overview of our sector – it’s been a pleasure.
December/January 2020
OPI: The words catalyst and disruption are not too dissimilar. This brings me to Amazon which has obviously had a profound impact on a number of different areas. To what extent has our industry not responded well to the needs of the customer in this new digital e-commerce world? Are we out of touch still with how consumers want to purchase and interact? MR: I’m going to go back 15 years to give you an example. When we spun off the wholesale division from Boise Cascade and started working as a pure contract stationer, we had five words on the wall and on every piece of paper in the company. “If I were the customer” were those words. We knew that without the customer having a seat at every single discussion table – figuratively – it would be so easy to make some very introspective decisions which may not be in the best interests of the company in the long term. Staples excelled in customer service for a long time, in terms of its interface, the products it sold, how it sold them and how it delivered them. The customer was always at the forefront of all of those things and Staples was the top dog in our industry. With increasing digitisation, more and more companies couldn’t keep up and lost that customer presence, Staples included. And until it comes back, the Amazons of this world are going to continue to eat our lunch.
If a customer is saying, “I have categories that I’d like to buy from you”, and you’re not very good in that category for whatever reason, that customer is going to go elsewhere. It’s the same in the way they want to shop. We all know the web and content is so much more important today than it used to be. So why doesn’t everybody make their digital interfaces more productive and more customer facing? Ask yourself: am I doing everything I possibly can to make sure I’m satisfying the needs of my customers? If you aren’t, somebody else will.
BIG INTERVIEW Mike Rowsey
people figuring out the accounting. Instead, let’s make everything more productive, so both sides are going to be better off. The relationship between the wholesaler and the dealer has to change – it’s inefficient and it breeds
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SPECIAL FEATURE
EVERY PICTURE
tells a story
Recovering from a severe business disruption is never easy and a solid contingency plan is vital. S.P. Richards is a case in point and an outstanding example of planning, executing and communicating at a time of extreme strife
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n July 2019, US wholesaler S.P. Richards (SPR) suffered a major fire at its headquarters and distribution centre (DC) in Atlanta, Georgia. Both facilities were completely destroyed. What followed was a period of inevitable upheaval and disruption. SPR’s business continuity or, as perhaps better known in the US and in this case entirely appropriate, disaster recovery plan, sprung into full action. On the plus side, nobody was harmed in the fire which is the biggest tick of them all. And, as might be expected from a sizeable operator like SPR – and its considerably larger parent Genuine Parts Company (GPC) – the recovery plan was comprehensive and well tested. But how can you prepare for a disruption of such magnitude? There’s no doubt that there were likely some gaps and omissions in SPR’s plan that need to be addressed. That being said, on 9 December – just before this issue of OPI went to press – the wholesaler moved the last of its employees into the new HQ building at 4300 Wildwood Parkway, Atlanta. It’s a remarkable achievement in such a short period of time, with the first members of staff having moved in within 100 days of the fire. On the occasion of this momentous, happy and emotional event, OPI’s Heike Dieckmann caught up with three SPR’s executives who were instrumental in the recovery period – CEO Rick Toppin, Head of Operations Chad Lee and CIO Brian McGill.
One of my best memories will always be the cooperative spirit that was displayed in those meetings by the Atlanta DC staff [...] as they committed to leaving their families to do this work
Images of the fire and the destruction caused at SPR’s HQ and Atlanta DC
OPI: What were the most pressing issues that had to be addressed immediately post-fire? RT: Our first priority once we knew that everyone was safe was to establish a location to serve as our ‘command post’. Fortunately, we had an office annex directly across the street from our main HQ building and that became the command centre. Next, we had to assign leadership roles. Chad took immediate charge of our overall business recovery efforts while Brian dealt with the IT side. Other individuals were assigned key areas such as internal/external communications, computer needs, supply chain, safety, and even food.
Short-term, the focus of these planning teams was to get distribution across the US and Canada back up and running as it represented roughly 96% of our business. To do this, we had to shift all IT from our HQ production environment to our disaster recovery (DR) site. We had staff at this site within an hour of the fire starting. This allowed us to process the remaining orders from Friday night – which is when the fire broke out – and get them out Monday morning. OPI: What about your local customers? RT: The Atlanta leadership team immediately devised and executed a strategy to move orders – the remaining 4% of the business – to other locations in our distribution network. Our plan to move this business to other DCs came together on Saturday. The next day, plans were finalised with the Atlanta DC team members and many went home to pack as they headed to sister DCs in Birmingham (Alabama) and Charlotte (North Carolina) to help process orders beginning Monday morning. One of my best memories will always be the cooperative spirit that was displayed in those meetings by the Atlanta DC staff on Sunday as they committed to leaving their families to do this work. Medium-term, we knew that we needed an alternative for the Atlanta warehouse as the burden on our employees and the receiving locations would be significant. We found an existing DC space nearby and had an interim facility back up and running in six weeks. This is fully operational for now. Long-term, of course, we had to think about a new HQ building that could house roughly 270 people. We looked at every available office property in the corridor where the majority of our staff lived and signed a long-term lease about ten days post-fire and immediately began construction. We were fortunate to find a great space ready to be built out and we had fantastic support from all parties involved – the property owners, the construction teams and also GPC. It also didn’t hurt that we actually sell office furniture and supplies. We had outstanding support from the supplier community – especially HON which adjusted many of its production schedules to expedite delivery of our new office furniture.
OPI: Hindsight is obviously always a beautiful thing. Were there any aspects of your contingency plan that could have gone better? RT: We were fortunate in that we had done enough things right in our planning to be able to recover our business quickly. But there were certainly
December/January 2020
Chad Lee: With regards to the Atlanta DC that Rick mentioned, we needed a long-term solution, and decided to co-locate this facility as part of a major expansion of our regional distribution centre to a new 500,000 sq ft (50,000 sq m) building just a few miles away. This building, once the Atlanta DC moves in permanently, will be unlike any other in our network – we’ll be introducing new technology that we can then implement across other locations.
SPECIAL FEATURE Business Continuity
OPI: Rick, as an overall comment, what do you think you did at SPR that has made the recovery from the fire so efficient and speedy? Rick Toppin: I believe there were three components to our quick recovery. First, we had well-established and actionable business recovery plans in place. Second, we have a wealth of experienced staff and leaders within SPR who understood how things really work across our distribution network. Third, we had great support from GPC to move fast and do whatever we needed to support our customers.
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Business Continuity SPECIAL FEATURE gaps. Our primary recovery focus was on our IT systems – as it should be. But every business also has legacy, non-automated business processes and routines that are every bit as important as those housed on your servers. I would urge everyone to look deeper into these kind of manual, legacy systems and make sure that they are covered as a central part of your continuity planning.
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OPI: Talking of IT, what was your first job when the fire broke out Brian? Brian McGill: Getting the call saying the building was on fire was a shock. When I got there, I was lucky to have Senior IT Operations leader Craig Miller arriving at the same time. We already knew that our IT employees working the evening shift were out safely and that all other staff were also accounted for, so that was great news. Initially, we were both hoping the fire would be small scale and that we would resume normal operations late Friday night. We knew within minutes that was not going to be the case and we were probably not going back into the building any time soon, if ever. Next we headed to the DR site to get the DC systems up and running, so the rest of the country could pick, pack and ship Friday’s orders, thereby minimising the impact to our customers.
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OPI: How did you mobilise a team that quickly? BM: We had communicated on the drive in with other senior IT leaders to get the word out that we might need help. At that moment you wonder of course: will we be able to reach everyone, will the team be able to get there in a reasonable time, did we test our contingency plans enough? By 9.30 pm, we had over 40 members of the IT team at the site and efforts were well underway. I could go on and on about how excellent our team was and how hard they worked to make sure all our customers and employees had working systems again by 6 am on Monday morning.
OPI: There must have been some delay... BM: Of course there was. Many of Friday’s orders and deliveries were delayed to Saturday or Sunday. Some orders being sent over the weekend while we were recovering were rejected. But when we compared the number of orders and lines delivered that first week after the fire to the prior week, we had processed 99% of volume. There were a few glitches here and there, but the team was able to resolve them quickly. In fact, we received emails and letters from customers around the country telling us that, had they not been told about the fire, they would not have known as there was no disruption to them. From a business contingency point of view, you cannot ask for a better response. OPI: What would be your advice to anyone facing a disaster, either of the nature that you experienced or something completely different? CL: Early on, establish roles and responsibilities with your leadership team. Meet regularly to measure progress and ensure everybody understands the current status and recognises any issues. The fact that Rick sent company-wide emails on a weekly basis also made sure all staff were completely current on what was happening. OPI: How ‘ready’ was SPR for such an incident? CL: We were ready for each of the issues that occurred, but had not prepared for them to all happen at the same. We had plans in place to address the emergency of a distribution centre being out of the network at any one time, for example, or our IT team was fully prepared to shift to a DR site at short notice. But we did not have plans for displacing a couple of hundred people from our HQ building on a Friday and finding them workspace by Monday. Our continuity procedures didn’t include a complete, permanent move of the business, with no intention to return and rebuild.
Reconstruction and recovery underway at SPR HQ and the DC
EMERGENCY ACTION POINTS Ensure everyone is safe and accounted for. l Establish teams and workstreams to immediately get the systems and people in place to service customers. l Make sure the IT and operational plans are aligned and prioritised in tandem. l Communicate any plans both internally and externally. l Execute plans with regular updates to all. l Move quickly and be nimble with decisions, using all information readily available. l
SPECIAL FEATURE Business Continuity
That said, while we never envisioned having to address all these issues at once, we felt that the entire team came out and displayed the SPR spirit and did whatever it took to take care of our customers and their fellow workers.
We simply threw out our preliminary [ABC] plans and shifted the programme to telling our story and celebrating with our customers and suppliers OPI: How were staff and their ability to do their jobs affected? CL: The immediate impact was the majors such as no workspace, potentially no laptop, no phone, etc. We addressed all of these in the first week. Then it was a case of ancillary items, such as files having been lost in the fire, not having enough meeting space, or the countless times I heard the comment: “That was in or on my desk”. Our Atlanta DC team had to quickly learn a new warehouse layout, adjust their start/stop times and change processes to meet customer needs.
BM: From the IT side of things, the first couple of weeks were spent on shoring things up for the long haul. After that, the focus quickly turned to building a new production data centre. Thankfully, being
Business continuity is
. a huge topic, with the
type of disruption that can occur reaching far and wide, from natural disasters to cyberattacks. Look out for the February issue of OPI for more examples and practical advice on how to mitigate the impact on your business and, of course, your customers.
OPI: Overall, what were the main takeaways from an IT perspective? BM: Well, when we did a post-mortem of our recovery, we labelled our sheet ‘The good, the bad, and the ugly’. The good was our people, our planning and our annual testing and I cannot overemphasise these three items. Regarding the bad, we learned that for users all applications are critical and need to be available all the time. But tired people make mistakes, so give everyone some rest time. The ugly? Tape restoration is slow and in critical timeframes was not acceptable, so disk replication and backup will be in the new plans. I believe we learned a lot from the experience and can now shorten our recovery window and minimise the chance of lost data. OPI: In addition to the practical impact, the psychological burden on all staff must have been significant, especially with your Advantage Business Conference (ABC) scheduled to be held so soon after the fire. RT: Absolutely. We had employees who had worked for decades in our HQ building and the Atlanta DC. They lost photos, files and many other personal items and memorabilia. In regards to the ABC, we simply threw out our preliminary plans and shifted the programme to telling our story and celebrating with our customers and suppliers. Emotionally, we needed that ABC and it couldn’t have come at a better time. I’ll never forget the standing ovation that our customers and suppliers gave our sales and HQ teams as they entered the main ballroom that day. It gave me chills.
December/January 2020
OPI: What’s the timeline of events now? CL: All vital items associated with our new HQ will be complete by year end, with all staff in the building working in their new workspace. Additional AV, design elements, collaborative furniture spaces and so on will be complete by the end of Q1 2020. The Atlanta DC portion in our new 500,000 sq ft facility will begin production of the racking, shelving and conveyors in Q1. We’re confident that by the end of Q3, the Atlanta DC will be permanently operating out of this location.
part of the GPC family, they were able to clear us space in the co-location facility in Atlanta that Rick referred to earlier. All new equipment has been installed and configured. Finalising the build-out of this production data centre is our primary focus now. We are looking to have this ready for migration as we end 2019.
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CATEGORY UPDATE
Health and HAPPINESS
With studies quoting poor workplace well-being as one of the biggest causes of long-term health problems for employees, businesses are now taking note – by David Holes
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hile people are increasingly concerned about their health in some parts of their lives, they completely ignore it in others. One key neglected area in the past has been the office, where unsuitable and uncaring work environments are having a major impact on productivity, engagement, attendance and profit levels. But things are changing rapidly, with the most forward-thinking companies now actively taking measures to mitigate the negative effects. As Andreas Guhl, Group General Counsel & Head of Human Resources at Office Depot Europe, reports: “The health and well-being of our people is crucial and we now run a specific programme of activities to support employees. This encompasses work-life balance, personal development, health and safety, and a balanced menu in our staff canteens. On top of this, we also offer free fruit, stop smoking initiatives and job bikes instead of company cars for our colleagues in Germany. We’ve also invested heavily in upgrading our technology to enable more people to work from home. This means they can take care of important personal issues, such as picking up children from school or attending medical appointments, while still being connected to the organisation and working effectively. This all adds to job satisfaction and aids well-being.” He adds: “We know that a happy, healthy workforce is motivated and cares about delivering the best for our customers and we do everything we can to support that. Clearly, there are positive side effects such as lower staff turnover and reduced sickness and absenteeism. But more than that, we feel that putting our people first is the right thing to do and it forms a central part of our new corporate social responsibility strategy.” The sedentary lifestyle tacitly facilitated by electronic communications is a huge problem. There’s no longer any need to walk to another part of the building to talk to a co-worker or retrieve
paperwork from a printer of filing cabinet. If we wanted to, we can almost go the whole working day without ever leaving our desks. ‘Active working’, which encourages movement through the use of innovative products, attempts to counteract this. As John Barker, Marketing Manager at Floortex Europe, explains: “Encouraging physical activity through the use of height-adjustable desks and other products is becoming increasingly common. Our range of AFS-TEX Ergonomic Anti-Fatigue Mats had another year of strong growth and provides a selection of key accessories that facilitate regular changes in stance that keep the blood pumping and reduce muscle strain. “While the concept originated in Scandinavia, the US is now fully engaged with it and the office supplies sector is giving it huge focus. Germany and the UK are still lagging behind with its uptake, but the signs are that the messages regarding more progressive working practices are starting to take hold.” PEDAL POWER Others have taken the ‘keep moving’ concept a step further still. The Yo-Yo Desk Bike from Sit-stand.com (see picture, right) lets you pedal while you work. Managing Director Gavin Bradley says: “It’s a way to keep the blood circulating and promote ongoing activity even when you are seated. You can use it with or without the attached desk, so it can be positioned underneath your existing worktop for pedalling while you do everyday tasks such as reading documents or checking
We know that a happy, healthy workforce is motivated and cares about delivering the best for our customers and we do everything we can to support that MENTAL HEALTH While there’s a certain fun and gadget element to the installation of equipment such as this, the consequences of not taking staff well-being seriously can be catastrophic. Mental health problems are increasingly common in the workplace and are now the leading cause of sickness absences in many countries. In the UK alone, a staggering 70 million workdays are lost each year due to mental health problems, costing employers approximately £2.4 billion ($3.1 billion) per year. Stress is its most common manifestation, with depression, mood swings and irrational behaviour among the symptoms. But, as Health and Well-being Consultant Monica Price explained at
HEAR THEM OUT
December/January 2020
An ageing population, coupled with a higher retirement age, mean that an ever-expanding number of older people are now part of the workforce. This, in turn, determines that meeting their health needs plays a vital role in the thriving of the office environment. Hearing loss is a common issue as we age, with over 40% of people affected to some extent by the time they reach 50. The problem often gets worse as the years go by. This can have an adverse effect on verbal communications, bring on a sense of isolation and lead to worsening mental health in those affected. Statistics show that, if not effectively tackled, people with hearing difficulties are up to three times more likely to suffer from depression. Telephone communications, by landline or increasingly by mobile phone, are a vital part of today’s workplace, but something that those with impaired hearing can struggle with. Matthew Turner, founder and CEO at Goshawk Communications, has suffered from profound deafness since childhood, but became something of an expert in hearing loss over time. Driven by a desire to help people like himself overcome their disability, ten years ago he teamed up with two of the world’s leading hearing scientists, with the aim of improving hearing ability over the phone. The three of them worked with people of varying degrees of hearing loss to build a solution that met everyone’s needs. After years of rigorous testing, the outcome was the invention of a new technology – Goshawk. A simple ‘over the phone’ test assesses an individual’s specific needs and then generates a unique ‘sound profile’ to correct for any hearing loss. This profile is then carried by the mobile phone network and applied to any phone call made or received by that individual – automatically adjusting the volume and audio frequency response and tailoring it to each customer’s hearing needs. The product, known as Audacious in the UK, is now available on a number of networks for a small monthly fee. While currently only available for mobile phone usage, it could also be applied to landlines. Turner refers to it as the ‘hearing aid in the sky’ and hopes that his invention has gone some way towards alleviating the sense of isolation that deaf people, like himself, can suffer from.
CATEGORY UPDATE Health & Well-being
emails. Alternatively, stick your laptop on the desk space to work while you cycle. It’s also perfect for meeting rooms and breakout spaces in offices. “A US university study has found that students using the desk bike reported reduced stress and anxiety, increased morale and motivation. Sufferers of restless leg syndrome, Type 2 diabetes and high blood pressure can expect health benefits too. As a low-impact activity, slow cycling while you work is an achievable activity for almost every worker and ideal for people who can’t find the time to get active outside work.” Office Depot has also adopted this pedalling concept in its offices, with an added incentive. ‘Smoothie bikes’ have been installed in its premises (see below) – these use pedal power to operate smoothie makers fixed in front of the handlebars, so cyclists can enjoy a healthy drink at the end of each session. Equipment such as this can also record times, distances, leaderboards, etc, throughout the day, with medals or rewards given to people who complete various challenges, further engaging and motivating employees to get active.
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Health & Well-being CATEGORY UPDATE www.opi.net 30
the UK’s Mental Health Expo, which was part of the National Healthcare event at the end of November, this can be the thin end of the wedge: “If staff are off work with a mental health issue, the ‘return to work’ interview is vital. It’s here that employers can assess the seriousness of the problem and put measures in place to mitigate any further difficulties. At its most extreme level, employees with a history of self-harming must be kept away from sharp objects and those with suicidal tendencies must never be allowed to work on their own. Employers have a duty of care that they must adhere to, both for legal and moral reasons.” The issue has certainly made its way into the business supplies industry. As Depot Europe’s Guhl says: “For the first time in our history, we have trained 50 staff in the UK to become mental health ‘first aiders’. Their job is to advise and support colleagues experiencing mental health issues and to even spot the early signs. We’re really proud to have introduced this initiative which I think will provide an additional layer of support to people when they really need it.” Antony Phillips, Manager of the reseller’s Commercial Analysis department in Leicester, UK, was among the company’s first recruits. He says: “I signed up for this role because I’ve come across people suffering with their mental health in my personal and professional life and I wanted to be in a position to better help them. The training has given me the tools I needed to be able to identify the first signs that people may be struggling and the ability and confidence to be able to talk to that person. “It isn’t about finding a ‘cure’ - it’s about being that first point of contact, about showing people where they can get help and to let them know that it’s OK to feel the way they do and that they are not alone.” ERGONOMIC DESIGN The way people sit at their desks or carry out daily tasks can have a huge impact on their physical health too, of course. If done incorrectly, repetitive strain injuries and back problems are common. A recent report from Fellowes Brands (see Spotlight, page 32) found that around half of office workers suffered from strained eyes, sore backs and headaches as a direct result of their workspace, with seven in ten resorting to medication to manage these issues. Worryingly, bosses are not doing enough to prevent these health issues, with many ignoring employees’ requests to improve their workstations. Air quality is also rapidly rising up the agenda, adds Louise Shipley, the company’s European Business Team Manager for Workspace Management and Furniture: “We spend 90% of our time indoors and an average nine hours daily sharing spaces with other people. Public spaces like offices, healthcare facilities and schools are breeding grounds for bacteria, viruses, dust and allergens; they also accumulate harsh chemicals and odours. As such, there’s an ever-greater focus on improving indoor air quality, which should ultimately help the business’s bottom line.”
Heather Malo, Fellowes Brands’ Global Market Manager for Workspace Management, explains that businesses are investing in this category more than ever before: “Workspace solutions that help professionals get work done, but which actively benefit them too, are the expectation, if not the law, these days – anything that can contribute to providing a comfortable, healthy environment is in high demand.”
Rayner Group’s new Powerfit chair
We have trained 50 staff in the UK to become mental health ‘first aiders’ Driven by customer requests, US office seating specialist Raynor Group, for example, has moved into the wellness segment with the introduction of its new Powerfit chair. As Eric Gellman, the company’s VP of Sales, points out: “This product has an associated app to help users learn how to sit in it properly and make use of all its ergonomic functionality. The app alerts them if they adopt an unhealthy posture and asks them to reposition themselves accordingly. The idea is that it trains the user, so that after a few months bad habits are eliminated and sitting correctly hopefully becomes second nature. This will help to improve on muscularskeletal health and potentially make people more productive in the workplace.” CUTTING THROUGH Evidence suggests that awareness among businesses of the positive impact of well-designed workplaces and furniture on employee health and productivity is cutting through, with a growing number of organisations now including staff well-being in their company ethos and strategy. According to research from Willis Towers Watson, 82% of employers are currently investing in initiatives or plan to within the next three years.
Organisations that look after the health of their employees will ultimately also be looking after the health of their business She adds: “We believe the main drivers to be a genuine desire to look after the health and well-being of employees, in tandem with a business motivation to increase productivity and reduce absenteeism. Our world is characterised by pace and pressure – the need to do more, faster. However, the human body is not designed to deal with this for extended periods – it’s simply not sustainable and the result is a stressed, burned out workforce which unfortunately has a direct bearing on business output. Organisations that look after the health of their employees will ultimately also be looking after the health of their business.”
DIGITAL DETOX
December/January 2020
Mobile technology is highly addictive. Research has shown that, on average, we check our mobile phone every 12 minutes and a new word – nomophobia – has entered the English language, referring to ‘the fear of being without your mobile phone’. According to Alex La Via, founder of company Live More Offline, the separation between office and home life has blurred to such an extent that 61% of managers now feel that they can’t ‘switch off’ after leaving work. This sense of being always on call is leading to increased anxiety, loss of sleep and reduced productivity when actually at work. At a recent talk at the UK’s Workplace Health & Well-being Event, part of the National Healthcare Expo, La Via revealed that, when in the office, most workers spend a staggering 28% of their time on email. Apparently, the notification sound of an incoming message triggers a stress response in humans that compels us to act immediately – six seconds being the average response time taken before we jump to take a look. This can cause huge problems. When fully focused on a job, it can take 23 minutes to regain that level of concentration after an interruption. And if we’re constantly being distracted by every incoming email, it can have a terrible impact on our overall productivity. Simple techniques, such as allotting specific blocks of time in your working day to answer emails, rather than leaping to answer every one as it arrives, can help restore equilibrium. Even something as easy as adding an email footer saying, “if you receive this email outside your normal working hours, please don’t respond to it until you’re next at work”, can go a long way towards relieving the pressure to reply instantly. Specialist ‘digital wellness’ consultancies like Live More Offline are increasingly being invited into firms to coach workers on techniques such as these. Regular digital detox sessions are being integrated into staff training to alleviate the damage that being constantly connected to email, digital and social media can cause to their well-being. Some companies are going even further and are organising ‘retreats’ – giving employees several days away, completely disconnected from the online world in a remote location, all in an attempt to restore a healthy relationship with modern technology.
CATEGORY UPDATE Health & Well-being
As people become more aware of the potential long-term health risks associated with poorly designed office environments, the necessity for improved conditions becomes ever-more apparent. In early 2019, a Forbes report highlighted that 87% of workers would like their current employer to offer healthier workspace benefits, with options ranging from wellness rooms, company fitness benefits, sit-stands, healthy lunch options and ergonomic seating. US-based Ergotron is a specialist in the design of kinetic work environments, aimed at supporting better health in the office. Kleopatra Kivrakidou, Channel Marketing Manager for EMEA, says that the company has seen a huge surge in demand for its products: “The combination of increased awareness and pressure is why organisations are turning to ergonomics as a key solution to providing better designed, more comfortable working environments.”
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SPOTLIGHT
The hunchback of
‘NOT A DAMN’
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20% 15% 10% 5% 0%
9%
Vision problems
Weight gain
Red/dry eyes
25%
Varicose veins
30%
Arthritis
Health conditions employees are worried about in the UK, France and Germany Source: Fellowes Brands 35%
Getting a hunchback
HEALTH ISSUES It’s not just our muscles and joints that are being compromised – staring at a screen for hours can cause computer vision syndrome (CVS) which currently affects between 64% and 90% of office workers around the world. CVS includes eye strain, redness, irritation, blurred vision, neck and shoulder pain, and headaches. The Fellowes study reveals that workplace trends such as time and workload pressures, open plan layouts and increasing screen time are all detrimental to our health. Longer commutes and working hours, coupled with a surge in ‘infobesity’ (overload of data), are affecting mental
Repetitive strain injury
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A
ccording to a new report, The Work Colleague of the Future, over 25% of office employees have requested improvements to their workstations and are still waiting for these to be made! The study was undertaken by Fellowes Brands in conjunction with Behavioural Futurist William Higham and a panel of experts in ergonomics, occupational health and workplace well-being. Aside from being ignored by employers, office staff are battling physical and mental issues attributed to current working conditions. It’s no secret that the office is contributing to health problems – Fellowes cites a study conducted by Lloyds Pharmacy which puts those living in Medieval times as healthier than Britons today! In Germany, sick days in 2016 were up 60% from 2008. In the UK, they cost businesses £77 billion ($99 billion) annually in lost productivity, while the average French employee now takes 17 sick days per year. The situation is now so grave that 97% of office workers suffer from poor health due to their working environment, says the study. A lack of workplace well-being impacts on productivity, engagement, attendance and profits. Employees are spending more time at work and up to six hours a day sitting behind a desk, creating a potentially lethal combination of physical inactivity and asymmetric physical strain. According Dr Frank Emrich, founder and CEO of German company scalefit, this can lead to degenerative processes impacting muscles, joints, nerves and tendons, while repetitive motions can cause inflammation and nerve compression.
Persistent headaches/migraines
New evidence suggests that employees are paying a heavy price for unhealthy working conditions – by Michelle Sturman
12% 13% 18% 19% 28% 33% 34%
MEET EMMA – YOUR FUTURE WORK COLLEAGUE Fellowes Brands worked with Behavioural Futurist William Higham and experts in occupational health, ergonomics and workplace well-being to investigate potential health problems associated with office work. The Work Colleague of the Future report reveals that by 2040, there is the very real risk of office employees suffering from various physical disfigurements and a broad range of other health afflictions. Based on findings from the study, a life-size model named Emma has been created to visually encapsulate the physical changes to the human body that could occur as a result of working in the modern workplace. Emma has:
Strained eyes 51%
Stiff neck
48%
Sore wrists
• A permanently bent back caused by sitting for hours at a desk with a bad posture • Varicose veins from restricted blood circulation • A rotund stomach caused by being sedentary for prolonged periods • Dry and red eyes from staring at a screen for a long time • Swollen wrists from repetitive motions • Sallow skin from exposure to artificial light • Red upper arms from repeated contact with the heat expelled from laptops • Eczema due to work-related stress • Hairy ears along with a hairy and swollen nose from poor air quality
27%
Headaches 56%
Source: Fellowes Brands
Sore back
60%
Higham warns that unless we make radical changes to our working lives, such as moving more, addressing posture, taking regular breaks for exercise such as walking, or considering the workstation setup, offices are going to make us very sick. “As a result, workers in the future could suffer from health problems as bad as those we thought we had left behind in the Industrial Revolution,” he says. Stephen Bowden, Ergonomist and Human Factors Consultant at Morgan Maxwell, who also contributed to the study, adds: “Over time, sitting at a desk all day is going to have a profound effect on office workers’ health, both physically and psychologically. Steps should be taken to ensure normal everyday movements become part of the job. “One way to get people moving and reducing the time they sit is more ergonomic furniture in the workplace such as sit-stand desks. Employers should consider encouraging staff to increase their daily movement which may reduce the risk of long-term chronic conditions.” Emma is a stark warning that far-reaching transformation to workplace practices and environments is urgently needed. For more on The Work Colleague of the Future report and Emma, visit www.fellowes.com/Emma.
December/January 2020
health, while the growth of remote working has given rise to the use of non-ergonomic furniture and equipment. Worryingly, a link between diabetes and even certain cancers has also been associated with prolonged inactivity. The research also corroborates many other studies referring to ‘sitting as the new smoking’, which is accelerating musculoskeletal disorders and bad posture. Today, German office staff spend more than 80% of their working day at a desk while those based in France pass one third of every day sitting. As ergonomics expert Stephen Bowden of the Chartered Institute of Ergonomics and Human Factors points out: “Modern technology has robbed us of traditional movements like standing up.” This is only going to escalate as more office-based tasks become automated, which is a major cause for concern as even a 1% reduction in vascular function can increase the risk of heart disease by 13%. Additionally, poor sitting positions have led to back problems becoming a global epidemic, with 80% of German workers, for example, suffering from this ailment. Overall, 30% of all illnesses and 14% of sick days are attributed to musculoskeletal complaints. Even if these issues are addressed, there are other factors that also play into unhealthy workspace environments and habits. These include the Sick Building Syndrome which, due to a lack of natural light and fresh airflow, creates a ‘toxic soup’ of pollutants, vapour, moulds and bacteria. All the detrimental effects affiliated with working in an office, says the study, are being exacerbated by the global trend of staying in employment for longer.
SPOTLIGHT The Work Colleague of the Future
Health conditions currently affecting workers in the UK, France and Germany
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ADVERTORIAL
HP Reinvention Designed to Help Partners Stay Closer to Customers
HP’s David Lary talks to OPI about how the company’s approach will create new ways for customers to purchase and consume print hardware and supplies, while creating greater opportunity for channel partners in both consumer and commercial sales
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avid Lary is a 27-year veteran of HP, where he has held a number of leadership roles in manufacturing, supply chain, strategic planning and marketing while also managing all aspects of partner and channel development for the Americas Channel Sales organisation. In his newly-expanded role as VP of HP Consumer & Supplies Channel Sales in the US, Lary will continue to help partners shift to contractual business as the company evolves the way it markets its print and supplies products to offer greater choice, flexibility and convenience for customers.
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OPI: Please tell us about HP’s operating model announced as part of the company’s new chapter to advance, disrupt and transform. David Lary: Demographic, social and geopolitical dynamics require companies to approach markets in new ways. To power our strategy, we are driving a multi-year transformation effort to simplify the way we work and become more customer-focused, digital and data-driven. As announced in August, we are changing our operating model, shifting from regions to a single, integrated salesforce managed within one new commercial organisation. This brings us closer
to customers, drives faster decision-making and execution, accelerates the evolution of our go-to-market, and enables a harmonised pricing discipline. With effect from 1 November 2019, our commercial entity has been led by Christoph Schell, a 20-year company veteran and HP’s first-ever Chief Commercial Officer. Another part of our transformation is that we will be combining our direct and channel sales teams. In the US, I’m spearheading this work on the consumer front for PCs, print hardware and supplies as well as the end-to-end supplies channel business. Our three-year restructuring plan will remove friction from sales and ordering through innovative digital tools. Our investment in new capabilities will drive digital transformation both within our business and for our customers and partners. We are excited to begin this new chapter from a position of strength, backed by our strong foundation and track record with partners. As always, our goal is not just to participate in change, but to also be the industry leader in driving change. OPI: What was the reasoning behind this business model shift? DL: HP is a company that embraces transformation. In fact, we have continuously reinvented ourselves over the past 80 years – always in an effort to anticipate and stay one step ahead of the needs of an ever-changing global market. As a result, we are one of the world’s most iconic and trusted brands, offering highly-differentiated technology and IP, a market-leading portfolio across personal systems,
OPI: HP is making some significant changes in its Print business, including a pivot in its transactional business towards more flexible models. Can you explain the rationale and how you think that affects the industry landscape? DL: I am a firm believer in the power of print. We will continue to create the best hardware, supplies, software and services in the industry, bar none. While we will maintain a focus on protecting supplies share in our installed base, we are evolving our business models to lead the industry in a new direction – creating new value propositions offering greater choice, convenience and flexibility. A key part of our Print strategy is to rebalance the profit mix of hardware, supplies and services in our portfolio. You can expect us to help our partners shift towards contractual businesses, as we continue to expand offerings like Instant Ink and managed print services (MPS). We are also going to pivot our transactional business to provide greater choice, flexibility and convenience for customers.
David Lary, VP of HP Consumer & Supplies Channel Sales in the US
OPI: What do all these changes mean for channel partners? DL: Simply put, with greater choice and flexibility, we arm our partners with multiple levers to create value for their customers. The days of solely one-to-one transactions are over. HP understands the need for not only us, but for partners to shift from transactional to contractual relationships that deliver outcome-based value propositions and experiences. This is why, in consultation with our channel partners, we’re expanding our contractual business with MPS by providing customers with reliable, end-to-end product and supply support. A lot of this new business will grow from ongoing innovation, including single-portal digital sales tools; redesigning customer support; reducing the number of software platforms; simplifying product portfolios; optimising our supply chain; and centralising R&D through centres of excellence. This won’t happen overnight. But we look forward to working closely with our partners, listening to their feedback, and creating a model that is more profitable and flexible for everyone.
HP understands the need for not only us, but for partners to shift from transactional to contractual relationships OPI: Shifting gears and looking beyond the business, there are other actions HP is taking with your partners to create positive and lasting change. You’ve been very involved with the City of Hope for some time. Can you tell us more? DL: The City of Hope is yet another opportunity to work alongside our channel partners for positive change by funding research to fight cancer, diabetes and HIV/AIDS, and support more than 100 million patients worldwide. For the past 37 years, City of Hope has been the National Business Products Industry’s charity. This is an organisation that both we and our partners support. HP has been designated as the host corporation to drive 2020 fundraising, and our efforts will be spearheaded by the 2020 City of Hope Spirit of Life honouree, Stephanie Dismore, SVP and Managing Director, HP North America. Both HP and City of Hope had humble beginnings decades ago in California, and both grew to be leaders in technological innovation. It was a breakthrough innovation at City of Hope that led to the invention of synthetic human insulin. HP’s Reinvent Hope campaign is about a shared commitment to creating new, better and unprecedented possibilities for patients whose lives are positively impacted by City of Hope’s work. Together with our channel partners, we can make a difference and reinvent what matters most: hope.
December/January 2020
OPI: How are you going to do that? DL: This shift will provide customers with more choices at the time of purchase. It also means that for customers that most value HP’s superior print hardware and supplies, we will continue to subsidise the hardware cost – and the hardware will be designed and optimised specifically for HP original supplies. This will provide the best overall printing experience that our customers have already come to know – one that is high quality, reliable, secure, safe and sustainable. For customers that want alternative options, we are going to offer unsubsidised printers that will be compatible with non-HP supplies. In that case, customers pay the full value of the printer upfront and gain the supplies flexibility they’re looking for. We have been doing this for years in China. In a market where alternative supplies are prevalent,
there is a premium on HP hardware, and we are the market leader. By pivoting our approach and creating multiple ways for customers to purchase and consume print, we become less reliant on supplies and rebalance our system profitability.
ADVERTORIAL HP
printing and 3D printing, not to mention huge global scale and reach. These strengths have enabled us to deliver strong, consistent performance. There is no doubt this industry is at an inflection point. The world is rapidly changing and so are the needs of our customers and partners. Today, there are a series of global trends reshaping our industry and business: the influence of data insights; shifting business models; demographic, social and geopolitical dynamics; and hyper-personalisation. We see this as a chance to make bold moves, capitalise on new opportunities alongside our partners and deliver value to customers. The changes in our operating model will enable us to become more agile, reduce complexity, get closer to our customers and foster more effective collaboration across our business.
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RESEARCH
Transformative
TRENDS
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PREVIEW: THE STATE OF THE OP INDUSTRY 2019-20
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tanding still is the fastest way of moving backwards in a rapidly changing world. But despite all the challenges and turmoil the office supplies industry is currently facing, at least it can’t be accused of being stationary. There have been some fundamental shifts across all business channels, especially when looking at M&A activity over the past year. The most prominent deal, of course, was the acquisition of US wholesaler Essendant by Sycamore Partners, the private equity firm that owns Staples Inc. Another major development in the market was the merging of dealer groups Independent Suppliers Group, TriMega Purchasing Association and Pinnacle Associates. Across the Atlantic, European wholesaler ADVEO finally crumbled, resulting in the loss of its Spanish, Italian and German subsidiaries, while its French and Benelux divisions were sold to private equity firm Sandton Capital. Meanwhile, Office Depot Europe has disposed of its Central and Eastern European business, and Staples Solutions has offloaded its retail and online division in Germany, four direct brands in France, Italy and Spain, and its IT services arm in Sweden. The Australian market has also had a busy year in terms of industry consolidation from both a vendor and reseller perspective. Added to this are underlying trends such as the continual decline in traditional OP coupled with the rise of adjacent product categories; new channels of distribution; managed print services taking greater share from transactional sales; and the relentless expansion and growth of Amazon Business.
PUTTING IT INTO PERSPECTIVE All of this is just the tip of the iceberg concerning the transformations occurring in our industry and forms the backdrop to the seventh edition of The State of the OP Industry 2019-20. The annual research study will investigate the OP markets in the US, Canada, Benelux, France, Germany, the UK and Australia in detail and is based on insights and data collected from in-depth and online interviews with around 50 senior OP sector executives in these countries. The report will collate the 2019 financial performance of the key 15 OP distributors in the US, Europe and Australia, as well as highlight the main industry events of the year. Global specialist OP market researchers Martin Wilde Associates (MWA) will once again work with OPI on the data, analysis and commentary in this ‘must have’ authoritative sourcebook for the industry. The State of the OP Industry 2019-20 aims to answer the following questions for each country market covered by the study:
There have been some fundamental shifts across all business channels, especially when looking at M&A activity • What is the value of the core OP market? • What are the core OP market growth trends? • What is the value of the addressable facilities supplies market? • What are respondents’ overall revenue and margin trends? • What share of respondents’ sales are accounted for by jan/san supplies, breakroom/catering supplies, workwear/PPE, business gifts/promotional products, MPS and well-being/ergonomic products? • Which product categories are growing or declining? • Which distribution channels are winning or losing? • What share of respondents’ sales are in e-commerce and own label products? • What is Amazon’s share of the core OP market? • What effect is the breakup of global OP distributors having on the industry? • What is the future of OP wholesaling? • What will be the effect of a possible global tariff war? The State of the OP Industry 2019-20, to be published in April 2020 by MWA and OPI, is available for £650 ($850) if ordered before 31 January 2020 and for £899 thereafter. To order your copy, please visit www/opi.net/soti2020.
ADVERTORIAL
THE NEW
I
e-mark ERA
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n 2019, COLOP launched the world’s first electronic marking device for the stamp and mobile printing sector – the e-mark. With this innovative creation, the Wels, Austria-headquarted company – one of the world’s leading producers of modern stamp and marking products which supplies to more than 120 countries – is setting a milestone in the stamping sector and taking a large step towards digitisation.
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WHAT IS IT? The e-mark is a mobile (battery-operated) electronic-digital marking device for mobile printing. It is based on inkjet technology and works in combination with an app. This makes it possible to apply individual full-colour imprints on a variety of absorbent materials – from paper to wood – with a simple sideways movement. With a free app for smartphones or tablets (Android or iOS) or software for PCs, imprints can be designed quickly and individually. Via wifi, data is then sent to the e-mark. A whole variety of templates, texts or uploaded logos can be printed instantly. Date, time or numbering functions are included as well as a barcode and QR code generator and much more. Together with the COLOP e-mark label forms, even non-absorbent materials can be marked very simply. In addition, due to the cooperation with the HP Specialty Printing System, the e-mark contains a cartridge of the latest printing technology. With a recommended retail price in the EU region of €300 ($330) plus VAT, including software, the price positioning is very different to COLOP’s core range of products. That said, the e-mark undoubtedly is much more than a stamp – it’s a portable printing device. Indeed, the vendor has recently founded its own company – COLOP Digital – to handle further development of digital and electronic marking devices. The e-mark started selling in Sweden, Austria, Germany and Switzerland in the summer of 2019, followed by other European countries shortly afterwards. Rollout in the US began in the last quarter of 2019, with global introduction of the device expected to be completed during Q2 2020.
REAPING REWARDS The e-mark has already received several national and international awards for innovation as well as design. In its home country, it was presented with the Upper Austrian National Award for Innovation. Many international accolades followed. In the Red Dot Awards 2019, for example – one of the world’s largest design competitions – the e-mark got an honourable mention in the Product Design category, which the jury awards for products with an outstanding level of innovation, functionality, formal quality, longevity and ergonomics.
MORE INFO For further information about COLOP and the e-mark, visit www. colop.com and emark.colop.com.
The e-mark undoubtedly is much more than a stamp At the Benelux Office Products Awards, it won in the Office Supplies category while in the UK, the e-mark won the Product Design category at the Stationers’ Innovation Excellence Awards 2019. Further accolades came from Poland (Gold Medal at the Marketing Fair), Singapore (Product Excellence) and Cuba (Product Design). FUTURE POTENTIAL COLOP today operates in three business areas: high-quality stamps and related products, digital marking solutions, and arts and crafts. Particularly in the latter two segments, the manufacturer expects exciting developments with the e-mark in the near future. At Paperworld Frankfurt in 2020, for instance, further applications and features will be presented. Before that, the product will be showcased to the US market at the annual Consumer Electronics Show (CES) in Las Vegas in January 2020 – COLOP’s first-time appearance at CES.
EVENT
SOMETHING PAPERWORLD 2020 PREVIEW
FOR
T
everyone
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he final weekend in January once again sees the annual Paperworld stationery and office supplies trade show taking place in Frankfurt, Germany. Organiser Messe Frankfurt is expecting over 1,500 exhibitors from 60 countries at the event and, if last year’s numbers are anything to go by, well over 30,000 visitors – with more than 80% of these from outside Germany. From a practical point of view, the main office products exhibition space is once again located in Hall 3.0 while writing instruments and back-to-school manufacturers will largely be situated in Hall 4.0. Higher-end stationery and gift items are in Hall 3.1, and the Remanexpo aftermarket ink and toner product group – which will be celebrating its tenth year in 2020 – moves into Hall 6.1 after a brief hiatus in 5.1. Suppliers from Asia, which Messe Frankfurt refers to as the ‘international sourcing’ component, are still in Halls 1.1 and 1.2.
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LOOKING TO THE FUTURE One feature in Hall 3.0 in the past few years has been a concept known as Future Office, and this will be continued in 2020 under the theme of ‘smart solutions’. This refers not only to digital products and services, but also to the interaction between analogue and electronic office environments. In a series of talks, new means of communication, office space concepts and personnel solutions for smart and digital collaboration will be presented. Future Office also includes an Innovation Area – designed and curated by Berlin-based architect André Schmidt – which is targeted towards interior designers, facility managers and office products resellers. Here, exhibitors will present innovations that tie in with the smart solutions theme, while visitors will be offered guided tours and be able to use a comfortable networking space. As the gap between home and work life becomes increasingly blurred and perceptions evolve around the meaning of office work, Paperworld visitors with a penchant for office design may find it interesting to check out the Trend Exhibition located in Hall 3.1. This area features three ‘worlds’ that will no doubt pique
SAVE THE DATE Paperworld 2020 takes place in Frankfurt, Germany, from 25-28 January.
curiosity with their names of Blazing Hotchpotch, Smooth Sorbet and Noble Barrique. The concepts are the creation of Claudia Herke and her colleagues at the bora.herke.palmisano style agency. Herke will be on hand at Paperworld to give guided tours and present the ideas behind the displays. “Essential impulses for the new design of office spaces are increasingly coming from home and product design,” she says. “At the same time, a generation of restrained and modest consumers is coming of age who are critically examining questions of sustainability.” Over in Hall 6.1, Remanexpo includes a comprehensive seminar programme and an initiative called the Firmware Forum. The latter will deal with the increasing aftermarket industry concerns about OEM firmware updates, exploring the consumer perspective and how to address this ongoing issue. Other forums and functions to look out for during the four-day event include: the BMWi area in Hall 3.1 featuring products developed by young start-up companies; the Future Learning space in Hall 4.1 that will focus on the theme of ‘lifelong learning’ at work; and Sustainable Office Day which will take place on the final day – Tuesday, 28 January. ALL-ROUNDER All in all, with a programme that includes content related to office, school, aftermarket consumables, and workplace trends and design, Paperworld 2020 offers something for everyone in the OP industry – in addition to the chance to catch up with product suppliers and network with industry peers. Look out for our interview with Michael Reichhold, Director of Paperworld and Creativeworld at Messe Frankfurt, in the February issue of OPI.
EVENT
A tipping POINT? S
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OPI GLOBAL FORUM REVIEW
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enior executives from leading international companies in the business products industry gathered in Chicago, Illinois, from 17-19 November 2019 for the eighth OPI Global Forum. There was a packed agenda of high-level presentations, interviews, panel discussions and roundtables, combined with plenty of networking opportunities. At the 2018 event, the main talking point had been the imminent acquisition of US wholesaler Essendant by Staples Inc owner, Sycamore Partners. Since then, of course, the transaction has been completed and the US independent dealer channel (IDC) has been coming to terms with the new relationship between a key distribution partner and a major competitor. It was fitting, therefore, that this year’s Global Forum Big Interview was with Staples Inc CEO Sandy Douglas, who had accepted the invitation to be quizzed on stage by OPI CEO Steve Hilleard. It is clear that a mass exodus of Essendant dealers – predicted by some – did not take place. This can be attributed to the work of Douglas and Essendant President Harry Dochelli (who was also at the forum) in terms of building up a level of trust with independents. It’s certainly something that was discussed during the interview, with Douglas emphasising how Staples and Essendant were complying with the firewall that was imposed by the US Federal Trade Commission. It was also interesting to hear him talk about putting the end user at the centre of everything and his recognition of the importance of Tom Stemberg’s original vision of Staples being a convenient resource for small businesses. Another point that Douglas touched upon and something that was a topic of much discussion throughout the Global Forum was the sense that the business products industry is at an inflection or tipping point. Some members of the IDC, in particular, were passionate about the urgent need to rewrite the independents’ playbook and eliminate what they see as redundant and inefficient business practices and relationships
that still exist. One dealer executive said it was time for the IDC to step up. “The industry is tangled in a knot,” she argued, “and dealers are tied to other parties and not in control of their own destinies.” TIME FOR ACTION The consensus was that the time for talk is over and meaningful action within the IDC must now be taken. As one delegate put it: “We don’t have forever – the platform is burning.” The need for speed was also raised by UBS analyst Michael Lasser. He argued that our industry missed an opportunity with the co-working trend and told delegates to “be bold” and “act fast” in order to go after larger profit pools such as the healthcare sector and business services.
We don’t have forever – the platform is burning
DIARY NOTE The next OPI Global Forum will take place in Chicago, US, in May 2021. Before that, OPI’s next European Forum will be held in the UK in November/ December 2020. All details tbc.
Some of the data presented in Chicago certainly highlighted the dangers of falling behind, especially in terms of digital capabilities. Perry James, President of the Hardlines Sector at research firm NPD Group, underlined the rise of e-commerce sales – notably via mobile devices – during this year’s back-to-school season. “You have to focus on growing your business online,” he told the audience. All this against a backdrop of emerging technologies such as 5G that will likely bring further changes to the workplace and how purchases are made. Amid the concerns for the future, there were success stories too. Simone Hindmarch, co-founder of the UK’s Commercial Group, for example, explained how her business had thrived due to an unwavering commitment to sustainability that is underpinned by the company practising what it preaches. The opportunities are there – it‘s a question of finding them and fulfilling customer needs in order to stay relevant.
EVENT
CLIMB OF LIFE REVIEW
CLIMBING towards
a BETTER future
O
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n a cold and windy – but at least occasionally sunny – November morning, about 110 members from across the UK office products industry rose to the challenge of taking “two million steps forward in the fight against cancer” to raise funds for the Institute of Cancer Research (ICR). That was the theme of this year’s Climb of Life (COL) campaign and it’s exactly what the trekkers did, each group having been equipped with pedometers. They travelled to their starting positions – some across the water (see picture below) – to then climb to their allocated mountain top destinations in England’s beautiful Lake District (and back again!). Overall, COL participants collectively trekked an enormous 2,760,008 steps over the course of the day. In the process, they broke last year’s fundraising record, with donations totalling £104,000 ($134,000) at the end of the campaign. A team of five made up Team OPI on the day, contributing £20,000 towards the total. As OPI CEO Steve Hilleard said: “This was yet another tremendous industry effort to raise funds for the 13th consecutive year for the ICR and its discoveries that defeat cancer. Sadly, while enormous progress is being made, there are still so many friends, family members and colleagues that are affected by this devastating illness, so it’s important to keep on doing what we’re doing.”
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A GROWING FAMILY Many people are involved in COL, not just the trekkers, but also the unsung individuals behind the scenes that “make things happen”, over the course of the year and at the COL ‘base camp’ at the Swan Hotel in Grasmere. One of these is Philip Lawson, former and recently retired CEO of the BOSS Federation, who followed in the footsteps
THANK YOU A huge “thank you” to all involved – whether through organising, fundraising or sponsoring! Next year’s COL is scheduled for 6 November 2020.
of COL inventor, Graeme Chapman MBE (who, incidentally, still did the climbing). Lawson, with his wife Heather, took on the mantle of COL organiser in 2019, filling, as he admitted, the incredibly big boots of his predecessor. “Apart from the huge task of doing COL – and Graeme – justice, I was really overwhelmed by the warmth and fellowship of the whole event. It’s like a large family, but with 25 first-timers doing the climb this year, it’s also a family that is growing which is fantastic,” he commented. “In addition to the record amount of monies raised for such an excellent cause, my involvement in COL has reinforced to me what a wonderful body of people work in our industry, prepared to put aside all competition and rivalry and freely give their time for a common cause. “It’s always difficult to keep going back to the same friends and family each year to ask for donations. As such, it’s great to see so many initiatives being taken to broaden the event: EVO Group’s Carol Houston throwing herself out of a plane – with a parachute I hasten to add – in her own Jump of Life; Hamelin’s Philip Beer tackling some of the Tour de France’s toughest peaks for his Ride of Climbs, and Matthew and Sara Bennett’s and Frances and Jason Stephens’ black tie dinner which has now become the Dine of Life. The people who help put all those funds to excellent use – the staff at the ICR, including CEO Professor Paul Workman and his wife Liz, plus several other ICR team members – were very much present at COL too. Not just to take part in the walk, but also to give all attendees valuable information on how their monies are being used and what good is being achieved.
ADVERTORIAL
single-use plastic – by the end of 2020 this will have strongly impacted the packaging of over 50% of all its SKUs. Additionally, it has introduced a recycled paper skin for a narrow range of products that require protection during their journey through the supply chain. Optimising packaging is key to the vendor’s environmental objectives. To that effect, particular care has been taken to ensure a minimalist, essentials-only approach while retaining important key elements. Another focus is to keep distribution costs throughout the supply chain to an absolute minimum, which in turn leads to a lower environmental impact.
Invigorating THE
U
category
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K office products manufacturer Rapesco continues to enjoy significant success as one of the leading brands in stapling and punching in Europe. Growth has been coming mainly from the international stage and is largely down to a powerful combination of new account managers, strong new products and leading digital content. On the back of these achievements in its core categories, Rapesco is now gaining fast traction with its lesser-known products.
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ECO FOCUS Following recent intense new product development, the vendor is launching a full refresh of its wider product portfolio, starting with Eco PP filing products. The ethos is to bring the company’s Eco ranges to market at a standard consumer price level – a departure from many operators’ practices in the past whereby eco products came with a heavy price premium. Different eco solutions and materials are available and, says Rapesco, especially in the field of public sector procurement, resellers need to be able to offer market-specific solutions these days. In fact, while its Eco PP filing products have been available for many years, there is now a full and urgent commitment to work with multiple technologies to deliver a broader variety of options. With a sustainability agenda, Rapesco is gaining pace in its mission to reduce the use of
THE CHANGING WORKPLACE The workspace category is also a big focal point for Rapesco. With hot-desking and mobile working growing, products such as expanding files and cases are now more prominent, so they carry a whole host of desktop storage accessories, not just paper-based items. This plays perfectly into Rapesco’s expertise in this segment and the vendor is fully embracing evolving workplace trends with a plethora of exciting products. One example is its Supafile range, first launched in a standard A4 size in 2018. Following user feedback, Rapesco quickly introduced an A4+ version in early 2019. The Supafile has been widely supported by customers across Europe, with broad appeal to both professional and private users. As Rapesco owner and CEO David James comments: “We are fully committed to adding products in growth categories that overlap the B2B and B2C channels. Our Supafile and Eco filing ranges are strong examples of this and we’re delighted to see our reseller customers benefitting from rapid sales growth.”
We’re delighted to see our reseller customers benefitting from rapid sales growth
CATALOGUE Rapesco’s 2020 catalogue can now be viewed at www. rapesco.com/ catalogue. Contact the vendor’s team of account managers with any enquiries at sales@rapesco.com.
INJECTING NEW LIFE The main driving force behind new product development is to aid resellers in growing traditional categories that are otherwise in decline. Creating renewed consumer interest and generating upselling opportunities for its partners is the ultimate aim. A recent example of tapping into new and perhaps different demand is the introduction of lithium-powered staple and glue guns to inject new interest in what has become a stagnant category. These products, says James, are key within the education channel. They also drive and enable users to trade up, thereby creating improved margin possibilities and providing more choice within the category. As with all its products, Rapesco underpins its new and reinvigorated launches with outstanding digital content and makes the onboarding process simple.
2O PRESENTATION DINNER 9 MARCH 2020 The winners of the 19th annual European Office Products Awards (EOPA) will be announced at a networking and celebration dinner on Monday, 9 March 2020 at the Hotel Okura in Amsterdam, Netherlands
BOOK
NOW
To reserve your seats at this unmissable networking event or for more details visit www.opi.net/eopa2020 or email awards@opi.net
5 MINUTES WITH... CAREER Q&A
Jon Rossman What special skill do you have? I went to culinary school and am classically trained to be a chef. It’s a skill that I only use at home now, but it will always stay with me. What do you do in your spare time? I coach and I volunteer. I have been coaching my son’s baseball, soccer and basketball teams for the past four years. Pretty soon I’m sure the kids are going to ask me to step aside and let someone who knows what they are doing take over. What words do you use the most? Effort, detail and curiosity. These three words essentially make up my entire philosophy of how I want our employees to work. Your childhood ambitions? I wanted to be a drummer! I took lessons and was in the band at school. I quickly realised that I lacked the necessary talent. Optimist or pessimist? Optimist. Where would you most like to travel and why? Fiji. I have always wanted to stay in a hut that is built over water. I hope I get to do it one day.
Jon Rossman, Chuckals Office Products
What was the last gift you gave someone? Hamsters to my two kids on their 7th and 9th birthdays. I hate the smell they make, but the children love them and I guess that is all that matters. What makes you happy? My family – simple as that! Describe yourself in one sentence. Easy going with a little bit of seriousness and a fun twist. What was your last online search? Nectar mattress reviews. What would you cook for a dinner party? I love shrimp and grits – it doesn’t get any easier or better than that.
Describe your current job. As President of Chuckals Office Products, I get to work with talented people who have a passion for customer service while providing solutions for clients’ needs. I also get to work with amazing customers, vendors and partners at every turn. Being a small business owner, I have the honour of being the IT person, janitor, mentor, salesman, office jokester and just about every other job known to man. Your worst job? I have tried to learn from each job I have ever had. Being a courtesy clerk at the grocery store while I was in high school taught me about responsibility. Working as a chef showed me how to cook and stand on my feet for 15 hours a day. Working as a street maintenance worker in the summers enlightened me about what I didn’t want to do with my life. It’s only really washing cars at the local Honda dealership while I was at college that taught me absolutely nothing. If you weren’t doing your current job, what would you like to be doing instead? Be a real estate agent. There is something about homes and properties that excites me. Best moment in your career? Definitely when the deal closed and I was the owner of a business supplies company. What do you like best about the OP Industry? I enjoy the people that make up this industry. It is truly remarkable how many people have your back within the OP channel. It’s one of the main reasons I chose to make this my career.
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What personal item do you have on your desk? Pictures of my family. They give me a sense of calmness.
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Best compliment you have ever received? You are the best manager I have ever had!
FINAL WORD
IMPACT THROUGH visibility & involvement
I
am starting with an exclamation that nearly all of us have heard or expressed over the years: “The business products industry is a great industry!” I happen to agree wholeheartedly. But how did we get to “great”? And, importantly, how do we keep it that way? I’m convinced that we got to where we are now through many individuals and their contributions over the course of the past few decades. Those individuals’ willingness to step up, get involved, and be at the forefront of our industry has shaped our path. When I started in a Portland, Oregon, sales territory with 3M’s Commercial Office Supplies Division in 1995, I was fortunate to join a company with a well-established reputation and strong brands like Post-it and Scotch. But I quickly realised how much groundwork and day-to-day toiling had happened to get those brands launched and that reputation built.
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STEPPING UP There are so many people in all channels of our space who have stepped up to lead throughout the decades. At the risk of offending people I don’t mention, I would particularly highlight Joe Templet, Mike Rowsey, Jack Reagan, David Guernsey, James and John Fellowes, Jennifer Smith, Barry Lane, George Wood, Mike Maggio, Bob Mairena, Paul Ventimiglia, Yancey Jones Snr, Sharon Avent, Steve Hilleard, Rick Toppin, Simon De Groot and Harry Dochelli. Most in our space can say that they have partnered on initiatives, called on, been called on by, and/or worked on the same teams as those people. More recently, others have come on board who are making a positive impact: Beth Freeman, Jon Rossman, Beth Wright, Myers Jordan, Ryan Boyington, Yancey Jones Jnr, Dutch Jones, Stephanie Moy, Bob Shulman, Andrea Bradley, Elena Sirpolaidis, Kristin Kendrick and Justin Hummel, to name but a few. There are many others. My point is: these people, relatively new or long-established, are making themselves visible and they’re always getting involved.
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MAXIMISE THE OPPORTUNITIES Our industry has historically provided numerous opportunities to network and meet. I am aware of the time and financial commitments required for all the events and get-togethers. As such, I understand that a company can’t make it to
every show and occasion. But, when these operators do make the commitment to participate, I find it surprising how many don’t use those opportunities to simply be visible – both from a company and individual standpoint. Of all the names mentioned before, the vast majority can always be seen – at every breakout, networking event, session and social opportunity. It’s the same people that leverage that visibility to positively influence and drive our industry forward. Both from my role at 3M as well as at the Business Solutions Association (BSA), I’m appreciative of and looking forward to ‘Industry Week – powered by ISG’ which will form part of Prevail 2020 next October. It’s a great step towards reducing some of those time and financial constraints I referred to. That being said, I would challenge all of us to fully use Industry Week by being truly visible at all levels.
Travis Kaste, National Sales Manager, 3M Stationery and Office Supplies Division & President, Business Solutions Association
Step up, get involved and keep pushing yourself, your company and the industry forward GET INVOLVED All the names I’ve mentioned are also relentlessly “involved”. Yes, they are individuals, but the impact these people are having on each of their companies as well as the industry through their volunteering and involvement is immeasurable. There are so many avenues to go down and activities to take part in. At every level – dealer, rep group, wholesaler, manufacturer, business partner or buying group – you can readily find a committee, organisation or board to volunteer for or join. Certainly from my experience with BSA, I know there is always the need and desire for additional operators and individuals to get involved. Yes, there is added responsibility and plenty of heavy lifting to do when stepping up – but the rewards and benefits are very positive. So there – visibility and involvement is what is going to keep this industry great. Step up, get involved and keep pushing yourself, your company and the industry forward, in the process making a positive impact for the generations and decades to come!
NEXT ISSUE Big Interview Dr Benedikt Erdmann, Chairman, Soennecken Category Update l Writing instruments l Office technology Events l Interview with Paperworld Director Michael Reichhold l OPI Partnership preview l EOPA preview