Dealer Support December by Intelligent Media Solutions

December 2011 Issue 198

INSPIRING BUSINESS SOLUTIONS FOR DEALERS PAPERWORLD 2012 Be there or be square? TICKING THE BOXES Could you pass the tick box test? INTEGRA CONFERENCE Spotlight show delivers

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FROM THE EDITOR

Let’s go round again MANAGEMENT

INTERVIEW

Review

Conquer With the New Year on the horizon, experts from office supplies consultancy the Business Performance Group give Nina Rosandic a round-up on what dealers need to be considering for 2012

As we all wind up for the Christmas season, the much-needed break is a great time to take a step back, take a deep breath and look at how your business can work to its full potential in the New Year. Switch off the reports of double-dip doom and gloom, the Euro storm and budget review – if you’ve battled the economic crumble until now, you’re doing something right. However balance is key and it’s important not to let go of the reins. With all this in mind, Jonathan Hills previews the world’s biggest stationery show, Paperworld (page 10) taking place in Frankfurt at the end of January. It’s a subject of debate as to whether an investment in a trip across the pond would be a profitable one, but, if you’re keen to keep on top of the trends and look at how you can extend your business reach, there is no better place to start. Various dealers have brought up the subject of box-ticking this year. It can feel enough just getting through the day-to-day, without looking at getting the extra badges, bells and whistles to armour your company reputation. However not a day goes by without a supplier or manufacturer boasting its latest green credentials – a sign of the times, in which ISO, HSE and eco-certification are becoming the norm. But how do business accreditations apply to dealers? Turn to page 16 for our report. I speak to Michael Girton and Mark Keevil of Global Office Supplies – with a BOSS and OfficePoint Dealer of the Year award under their belts after less than three years in the business, their story is an inspiring one (page 22) as is the one of Burke Office’s IDS league debut (page 44). 35 In our management section, the BP Group gives an overview of working smart (page 34), and we offer advice on fighting fraud (page 40), and making the most of online channels (page 42). With quite a bit to take in, I must insist against spending the festive season talking shop – here’s wishing you all a warm and wonderful Christmas.

THE BP GROUP PROFILES

NICK WILKINSON - COMMERCIAL DIRECTOR In 1987, Nick Wilkinson joined Spicers in the central warehouse in Sawston. In a career in the office supplies trade spanning nearly 20 years, Wilkinson has had success in sales, marketing and operations management, as well as developing first class people management and coaching skills, with up to 100 people working for him at one point. He has worked for the two major wholesalers, as well as a supplier to the market, and most recently headed up the Synergy programme for Spicers.

page 42

page 34

JADE WILSON – SALES DIRECTOR Jade Wilson’s introduction to the office supplies industry was over 10 years ago with Corporate Express, including roles creating new business to managing sales teams, and also winning, managing and growing national and European contracts. He then switched to the Oyez Straker Group to successfully run and grow part of their Scottish region. Before joining the BP Group, Wilson was head of business development at Integra Office Solutions.

ADAM SCOTT – BUSINESS DEVELOPMENT DIRECTOR Adam Scott joined the BP Group in October 2010, and his colourful and successful career in corporate sales spans over 10 years. In addition to being part of the sales teams at several large corporate companies and stationery wholesalers, Adam Scott has grass roots experience working for two London-based stationery dealers. In his last role, he successfully achieved a 250% sales growth of new business over a three-year period.

DECEMBER 2011 www.dealersupport.co.uk

“Take a look at your current CRM database. It will be out of date. Guaranteed”

www.dealersupport.co.uk DECEMBER 2011

Nina Rosandic, Editor

MANAGING EDITOR Julia Dennison julia.dennison@intelligentmedia.co.uk

DESIGNER Sarah Chivers sarah.chivers@intelligentmedia.co.uk

EDITOR Nina Rosandic nina.rosandic@intelligentmedia.co.uk

PRODUCTION ASSISTANT Sinead Coffey sinead.coffey@intelligentmedia.co.uk

FEATURES WRITER Matthew Jane matthew.jane@intelligentmedia.co.uk

SUBSCRIPTIONS MANAGER Natalia Johnston natalia.johnston@intelligentmedia.co.uk

COMMERCIAL DIRECTOR Vicki Baloch vicki.baloch@intelligentmedia.co.uk

SOCIAL MEDIA MANAGER Dan Price dan.price@intelligentmedia.co.uk

SENIOR ACCOUNT MANAGER – MEDIA SOLUTIONS Matthew Moore matthew.moore@intelligentmedia.co.uk

PUBLISHER david collingbourne david.collingbourne@intelligentmedia.co.uk

intelligent media solutions suite 223, business design centre 52 upper street, london N1 0QH tel: 020 7288 6833 fax: 020 7288 6834 email: info@intelligentmedia.co.uk web: www.dealersupport.co.uk web: www.uspmagazine.com

Annual subscriptions are ABC available at a cost of £68.00 for UK and overseas by surface mail, £90.00 for airmail. Subscription enquiries should be sent to the above address Dealer Support is the leading monthly publication for dealers in the business supplies industry. It provides information on the industry (both in the UK and overseas), information for and about the UK’s independent dealers, as well as information and advice on running a small business. The views expressed in this magazine are not necessarily the views of the publishers. Copyright of all the material published remains with Intelligent Media Solutions Limited. No part of this magazine may be reproduced, copied, stored in an electronic retrieval or transmitted, save with written permission or in accordance with provision of the copyright designs and patent act of 1988. Printed in the UK by Buxton Press www.buxtonpress.co.uk

We’ve Got You Covered Everything you need to grow your business. ECi gives you the power, experience and tools to succeed in today’s competitive climate. • Back-Office Solutions • E-commerce Solutions • Mobile Solutions • Business Analytics • Custom Printing Solutions • Device and Print Management • Professional Services • Data Management Experience • Flexibility • Scalability •Training Support • Integrations • Partnerships • Stability

www.ECiSolutions.com/ECiCover or speak with someone today: +44(0)333 123 0333 quoting DS12 www.ECi.eu • eu-info@ECiSolutions.com ECi and the ECi Red Box logo are trademarks or registered trademarks of eCommerce Industries, Inc. All rights reserved.

INSPIRING BUSINESS SOLUTIONS FOR DEALERS

CONTENTS December 2011

INDUSTRY 06 BETWEEN THE SHEETS Spotlight on the struggling paper market 10 PAPERWORLD 2012 Looking to Frankfurt’s monumental stationery show 16 TICKING TIMEBOMB Would your company pass the tickbox test? 20 WHAT WE LEARNED THIS MONTH Facts, figures and banter from across the globe

PEOPLE 22 LIKELY LADS We speak to fresh young award winners Global Office Supplies

28 THE IT CROWD FCBS’s Daren Parsons gives us tech food for thought

MANAGEMENT 34 BACK TO BASICS The BP Group panel talks business 40 FIGHTING FRAUD How to dodge corporate fraud 42 POWER TOOLS Shaping up online 44 FUTURE PROOF We check in with second-place IDS League winner Michael Burke of Burke Office

AND FINALLY… 46 ARE YOU SITTING COMFORTABLY? Evolution’s Andy Whyte goes behind the strapline

Industry

RepoRt

Between the sheets Last month dealer Support reported on the closure of m-realâ&#x20AC;&#x2122;s Alizay mill, home to the evolve paper brand. The uncertain future of the plant is just the latest drama in a string of european mill closures this year. Andy Scott takes a look at how the closures are indicative of a struggling marketplace and what the implications may be down the line

december 2011 www.dealersupport.co.uk

RepoRt

he recent announcement by leading Finnish paper producer M-real that it was to finally close its Alizay mill in France, with the loss of some 310,000 tonnes of uncoated woodfree and recycled office papers, came as no real surprise to anyone who is either in, dealing with, or watching the beleaguered european paper sector at present. the fact that M-real Ceo Mikko Helander even came out and admitted that the company had failed to find a buyer, despite being “ready to accept a heavily negative sales price”, shows just what a state the sector and the paper producers are in at present. And the forecast does not look any better. Alizay is just one in a long line of mill closures that have been announced over the past year, while the sector has been coming to terms with continuing weak demand, overcapacity, unprofitable mills, rising raw material costs and the current economic slowdown in debt-laden and crisis-ridden europe. the fact is that producers are having to face up to stark realities, and with over two million tonnes of capacity removal announced recently and the closure of either unprofitable mills, or those that are badly in need of investment or modernisation, it is clear the good times are a long way off.

“While M-real continued to market Evolve with great success, other mills were starting to produce equivalent products and offer them into the market” No surprises then that shares in some of the top paper producers such as UpM and Stora enso have dropped by around 40% this year. So what is the answer? What does the future hold? What impact will this have on the office products sector? Well, lower capacity is still being seen as just one of the answers by leading investment analysts to help support paper prices. Despite mergers and acquisitions still taking place, capacity reductions are still being made. UpM’s recent acquisition and resulting closure of Myllykoski paper mill is expected to result in at least one million tonnes of capacity falling out of the market. or put another way, around two per cent of europe’s total paper production of 51million tonnes. Sappi, another producer that stepped into the acquisition market with its purchase of M-real’s publishing paper mills, is closing its Biberist mill in Switzerland with the loss of a further 500,000 tonnes of coated graphic paper production. Add to this the continuing headache of a weakened european economy and you can see why the sector’s top brass are planning their strategies as what to do next. A weak economic climate means less advertising, so pagination gets reduced, consumers purchase less and prices come under pressure. the volatile energy sector and hikes in recycled raw fibre have forced some of the producers to focus more on packaging and the energy market of China and Russia.

www.dealersupport.co.uk december 2011

Industry

Report

Paper demand has also seen a swing shift due to the emergence of new technologies in digital online media, such as iPads and Kindles. Stora Enso CEO Jouko Karvinen, recently seen carrying an iPad himself, has warned that any continued economic downturn that drives advertising media to digital will not see it return, even if the market recovers. Stark warnings indeed. And as the mills close, so familiar names disappear. From M-real’s Alizay; Evolve, one of the leading recycled paper grades that accounts for some 25% of the recycled office paper market in Europe. Whether this will switch to another mill or transfer to another paper company remains to be seen, with either scenario at present seeming unlikely. So how might this affect the market and the UK in particular? Chris Sandwell, sales and marketing director of independent paper merchant Elliott Baxter (EBB) comments: “EBB will be unaffected by the closure of Alizay mill. I don’t think this will have any market affect outside of the 100% recycled copier market. “It does appear that this mill has been subsidising the market price for Evolve and EP4,” Sandwell continues “I am comfortable that there is enough capacity to continue to support European demand. Recycled copier paper will eventually get costed at a price that is a truer reflection of its manufacturing costs. Unfortunately this mill’s demise will have no impact on [the cost of] virgin fibre products.” One industry source said that, from what he understood, the effects would be felt in a number of areas. “Many stationery companies hold stocks of the Evolve brand to support end-users who have committed over the years to the UK closed loop concept. But is there a future for Evolve without Alizay?” As he explains, there are few recycled business papers of virgin pulp quality levels. Therefore, will anyone step up production to fill the gap? “Currently Alizay produces 330,000 tonnes per annum in all, of which only 90,000 tonnes per annum was recycled,” he states, and warns that the reduction of virgin pulp capacity could encourage further price increases. Also, M-real Alizay takes between 60,000 and 80,000 tonnes per annum of de-inked pulp from St Regis’s Kemsley mill in the UK. As he states: “What will happen to this and will the de-inking plant continue to need 190,000 tonnes per annum of paper waste input?” One company that may provide an answer is paper agency Papico. The agency represents a number of leading European paper manufacturers, not least, Lenzing Papier. Papico MD Tony Knight says: “There is no doubt that Alizay and its predecessors, New Thames, developed a range of recycled copier papers that were of exceptional quality and difficult to differentiate from virgin fibre grades. New Thames produced a unique quality of recycled fibre and this was the distinct advantage that made Evolve what it was.” He continues: “Nobody, however, has such an advantage indefinitely. While M-real continued to market Evolve with great success, other mills were starting to produce equivalent products and offer them into the market.” Knight states that when one company has such a hold with any product it is difficult to sell against it. However, he feels one thing is for sure; any alternative has to meet the high quality standards set by the market leader. Knight feels that Ernst Brunbauer, who took over the Lenzing paper mill in 2008, has the perfect setup to provide a solution. Lenzing, he says, has been producing paper for 130 years, has its own de-inking plant and can therefore control its own source of recycled fibre. Brunbauer is a paper maker himself, and has, according to Knight, targeted this high-grade market from the start. “Lenzing’s grades are already developed and well-tested and,

december 2011 www.dealersupport.co.uk

Fact Manufacturing 1 tonne of 100% recycled paper emits 428 Kg Co2, compared to 800 Kg for virgin paper (equivalent to driving from Paris to Moscow), according to research from Arjowiggins Graphic.

Recent capacity closures 2011 UPM (Kouvola and Albbruck) up to 1.3m tonnes Sappi (Biberist) 500,000 tonnes M-real (Alizay and Gohrsmuhle) 700,000 tonnes

according to Ernst Brunbauer, this situation could not have come at a better time,” states Knight.“The unique production facility Lenzing provides has enabled the company to take the environmental credentials to another level.” According to Knight the carbon footprint of Lenzing recycled copier is significantly lower than any other recycled copier papers. He continues: “Alizay had the capacity to manufacture 300,000 tonnes of cut-size paper, of which approximately 40% was the recycled grade. The wood-free quantity is easily taken up by the general market, and major contracts for the recycled grade with catalogues and merchants are already being satisfied by Lenzing and other very specialist producers.” Knight also feels that there is sufficient quantity within the European paper producers to meet the established demand for high quality, uncoated recycled copier paper. It is worth noting that with so many paper mill closures there are only four remaining pulp de-inking mills for fine paper production from recovered waste paper left. These are: St Regis Sittingbourne in the UK; Greenfield and Dalum in France; and Steinbeis in Germany. Torsten Froh, responsible for sales and marketing with German paper producer Steinbeis Papier offers some interesting thoughts on the Alizay situation. He says: “This closure will have several influences. At first the 300,000+ tonnes per annum will be the balance between capacity and consumption within the woodfree uncoated market. But there will still be an overcapacity within the shrinking cut-size market, so I would think another closure can be expected. “ Froh feels that the industry is heading towards a situation where there will be no more overcapacity, so there will be a brighter future for those who manage to stay alive. He states: “I also expect that the PM [Paper Machine] number two in Dörpen [at UPM’s Nordland Papier mill] will be shut permanently. M-real is a sign for a reaction within a struggling fine paper industry, as Sappi is for the woodfree coated, and UPM recently with its 1.3million tonnes to close within the publication area. The paper industry (printings and writings) in total would financially not survive if these closures were not done, which is very unfortunate.” But Froh feels that the impact of the M-real Alizay closure within the recycling area is even heavier, as M-real would drop roughly 100,000 tonnes, around half of which was EP4 and Evolve. He says: “The impact is even stronger on the UK market, as the volume of EP4 was more or less for the UK only. But at the end it showed that Alizay was losing €3m a month, as stated by the CEO, so the concept they were running was good on marketing, but bad on income, so therefore it was only a question of time as to when it was time to shut down. At the end M-real will increase its EBIT, by reducing debts like Alizay and will also decrease the availability of paper within the woodfree uncoated market.” While there is the prospect that products such as Evolve will disappear as Alizay closes, Froh points to the fact the closure of the Inverurie paper mill (old Tait mill) happened no more than two years ago and no one, he says, is missing this mill, and he would assume the same will happen with Alizay and its products. He also offers some cautionary advice for UK dealers. “Dealers shouldn’t be afraid of any inflation, but I think they should choose their paper suppliers very carefully, just to make sure that inflation wouldn’t hit them in, let’s say three years’ time?” Despite the gloom, Froh does have some words of encouragement for the sector. “I would say the industry is managing its problems very well, compared to recent periods, and the future will be promising if we just survive the present,” he concludes. DS

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Industry

preview

Papertrial Paperworld is the biggest office stationery event in the world. With over 3,000 exhibitors and 50,000 visitors from over 140 countries, nowhere else offers the same level or depth of insight into the office supplies market. But as the event is held in the Messe Frankfurt in Germany, is it really worth going all that way for UK dealers?

aperworld is the biggest and most anticipated office supplies fair in the world. Held across 10 exhibition halls at the Messe Frankfurt centre in Germany, the event brings together dealers, manufacturers and distributors from 140 countries across the globe to demonstrate and catch up with the most recent trends, innovations and ideas in office supplies. The 2012 show features 3,257 exhibitors from 72 different countries and covers everything from the world of office supplies, paper supplies, writing and drawing implements, school equipment and art and hobby supplies, all in one location. However, with increasing economic stringency, attendance to the event is becoming more and more difficult to justify, and dealers have to ensure that going the distance is worth it.

A personal touch Director of Paperworld, Michael Reichhold, believes that for UK dealers, attendance is critical for staying on top in the office supplies business. “Taking part in the leading international trade fair for the paper, office supplies and stationery sector is vital for all dealers,” he says, and his view is echoed by many manufacturers that exhibit at Paperworld each year. Marketing manager of Floortex, John Barker, advises dealers in the UK not to overlook the importance of the show: “Paperworld has a much greater number of exhibitors from the major global brands down to smaller niche manufacturers and distributors. There are no major UK exhibitions that cover such a spread of products,” he says. Barker upholds that Paperworld offers a new and interesting dynamic to the world of office supplies; attending the actual event allows for a level of interaction with manufacturers and products that can’t be replicated. “It enables manufacturers to promote our product category, new products and promotional opportunities to UK, mainland Europe and a world wide current,” he says. Being able to test the products firsthand is “highly beneficial to both parties and is something you can’t get from traditional product promotion through catalogues and websites”. The benefits of attending the event go further than merely seeing the product – discourse between dealers and manufacturers can provide both parties with some useful

december 2011 www.dealersupport.co.uk

“The costs for all parties are, in the current economic situation, increasingly difficult to justify”

information for the future. “You cannot underestimate the value of meeting existing and potential customers face to face,” says Sean Caffrey, studio supervisor at Pukka Pads. “Bringing manufacturers, suppliers and buyers together like this pushes the industry forward in a way that could not be achieved otherwise. Also, the presence of buyers from all over the world breaks down a lot of barriers for companies looking to expand,” he adds. Karen Harrison, group marketing manager at HK Wentworth Group concurs. “Not only do dealers get a chance to see all the new innovations, they get to actually meet the manufacturers, ask them questions, and put forward suggestions for the future,” she says. “If dealers want to be the most proactive at what they do, working with the manufacturers directly is probably the best idea,” adds Harrison. Attending an event like Paperworld means that dealers can actually give some feedback to the manufacturers whose products they sell

DCI / Jet Tec invite you to visit us at 2012 28th January - 31st January 2012 Hall 4.0 Stand B54 - Messe Frankfurt DCI/Jet Tec, Europes leading producer of compatible and remanufactured inkjet and toner cartridges, will be exhibiting their full range of products at Paperworld 2012. About Paperworld With over 2,000 exhibitors and an expected 51,000 visitors, Paperworld is the World’s leading paper, office supplies and stationery products trade fair.

We look forward to seeing you there.

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e: sales@jettec.co.uk

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2000 bugs can live on the average telephone mouthpiece at any one time.

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Industry

preview

and suggest innovations for the future. Dealers have a relationship with the end-user that manufacturers value and they can use this to their advantage by trading feedback from clients with the new, upcoming information from manufacturers themselves. MD of Superstat, Chris Collinson, believes that, despite still having some disadvantages, this relationship has become less poignant in recent years. Having attended the show “on and off” for two decades, Collinson says it was once an “extremely useful source for new products and suppliers”. However, he goes on to say that “as the supply chain has become more stockless and sophisticated, it has become more and more difficult for me to have a credible conversation with new suppliers. I believe this is also true for most office products dealers in the UK”.

Costly venture So, despite potential remunerations, the benefits of attending Paperworld need to be balanced out with the cost in time and money in getting there. Director of Office Club, Mark Austen, acknowledges why some dealers might have reservations about attending the event. “Some of our members have attended Paperworld in the past,” he says. “Every year I bump into a smattering of UK dealers, but it is a very costly exercise for the typical dealer that is difficult to justify for most on the basis of return of investment, especially in the current market where an increasing number of global manufacturers are trying to push dealers away from direct relationships.”

december 2011 www.dealersupport.co.uk

Facts 3,257 exhibitors from 72 different countries 10 exhibition halls Around 50,000 visitors 54 exhibitors from the UK and Ireland in 2011

Austen recommends that Paperworld should consider reducing dealers’ expenses. Despite being “absolutely, unreservedly supportive of the concept of a pan-EU event”, Austen believes “the costs for all parties are, in the current economic situation, increasingly difficult to justify.” “If the organisers really want more independent resellers to attend, then they are going to have to find ways of defraying those dealers’ costs,” he says. With the state of the economy as it is, it is likely that many dealers will conclude that the venture just isn’t worth their while.

Scouring the world Exchanging information within the sector is the key to finding new and successful channels for worldwide trade in office supplies, as increasing your contacts network can ensure that you hear important news and decisions before your competitors. Emphasising how important it is to stay on the pulse when it comes to the office supplies market, Reichhold states that dealers should be aware of the innovations and trends emerging in the business, as well as the on going European economic climate that affects the industry. “The office supplies industry is dependent on the European economy and, to a great extent, office jobs,” he says. “In other words, every office job that is lost has a negative impact. Thus, the business is highly dependent on the employment market.” He upholds that dealers in the UK must to be up to date with the trends emerging in office supplies if they are going to contend in the future.

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Industry

preview

“it’s the place where the entire international sector gets together,” he says. “Frankfurt is the only place where the range of products is to be seen in this depth and breadth.” with the event attracting around 50,000 visitors every year, of which two thirds of exhibitors and over three fifths of attendees come from outside Germany, it’s rather hard to disagree. Last year 54 exhibitors from the UK and ireland presented their products at paperworld, and the niche, emerging products and trends that might be on show at the event might not be picked up by the UK market for months – perhaps never. “Obviously for any exhibitor the key is new business and anyone looking for something new and exciting will be visiting – you never know who will be taking an interest in what you have to offer,” says Harrison. “in the UK there is nothing like paperworld, only dealer and wholesaler conferences that have manufacturers that exhibit, and they will only be allowed to exhibit what is in the catalogue. why not see the full portfolio, if there is something the dealer really likes he can then bring this idea back with him.”

Is it worth it? Any innovation that emerges at paperworld that proves to be successful will sweep across the market, before you have a chance to add it to the order books. However, if you get in there early you can really move ahead of your competitors and boost your profits before they catch on. if you are unable to attend however, it may be a good idea to utilise your contacts that are attending this year. The entire event will be fitted with wifi connectivity, allowing visitors to update colleagues and clients back in the UK in real-time, alert them of a find, immediately check out the specifications on a particular product and most importantly of all, cement a business relationship as soon as possible. The benefits of making connections at the event and keeping up to date with innovations are probably the main attractions of paperworld for dealers in the UK. Last year around 33% of attendees of the event were directors and CeOs of companies, with 21% in purchasing and procurement - so the potential of making direct and exploitable contacts for your business is high. The division of opinion remains between those who think that attendance to the event is mandatory in order to remain at the cutting edge of office supplies and those who believe that, despite its benefits, paperworld is just too big an ask for dealers who have better things to do with their time and money. So, if you have money to spend on research and development attendance to paperworld should be a no-brainer. if you can’t make it to paperworld yourself, find someone who is going, or follow the event online, and make sure you stay in touch for those products and contacts for the future. if you can make it, do. regardless of the air mile hindrances, paperworld remains the biggest office supplies event in the world – so it might be worth the pilgrimage. DS

december 2011 www.dealersupport.co.uk

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Industry

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december 2011 www.dealersupport.co.uk

analysis

offering a high-end product. However, it simply amounts to basic process management. “It says you have an established set of processes. If you’re an OP dealer and you say you offer next day delivery, desktop service, and that you’ll put all the right products into a box, then that is the expectation – and that you can do that everytime. And if there is any exception, i.e. you deliver the wrong product three days late, you have a process in place to rectify it.” According to Botfield, “it’s basic stuff” but few dealers in the office supplies channel have quality procedures in place. According to the ISO summary, quality management means: “what the organisation does to fulfil the customer’s quality requirements, and applicable regulatory requirements, while aiming to enhance customer satisfaction, and achieve continual improvement of its performance in pursuit of these objectives.”

s the government clamps down on the energy crisis and its efforts to get businesses working smartly, the structured review and compliance of your environment, management, safety and supply practices are no longer flowery additions to the daily running of your company, but are set to become pivotal to staying ahead of the game and winning big business.

Why consider this now? As this issue of Dealer Support goes to print, the UN Conference on Climate Change is taking place. Energy and Climate Change Secretary Chris Huhne has said an agreement covering the emissions of all major economies was “neither a luxury nor an optional extra” and has highlighted that Britain is committing £4.4bn to climate change by 2015. However, the fight for change isn’t just targeted at the big corporate companies; the environment is being brought to the fore for SMEs also, and the Federation of Small Businesses (FSB) conference in March will put the spotlight on environmental business processes. The implications of this is that sustainability accreditations will not simply be a voluntary tickbox, but are likely to become legal necessity. This will not only be prevalent in terms of your own company’s procedures and services, but also becoming accountable for your supply chain. Your supplier vetting process will need to be rigorous, in much the same way that your own customers will be vetting resellers for the way in which they comply with standards of management, of which sustainability is just one small part.

What accreditations are there? In tough times, it seems enough just to get through the day-to-day with your head above water, without looking at getting the extra badges, bells and whistles to armour your company reputation. However, many SMEs that operate responsibly already have most of the necessary processes in place. A recent FSB report revealed that 92% of small businesses are both socially and environmentally responsible. The majority are already committed to reducing waste. What they are more likely to lack is the formal paperwork, policies and standard procedures that prove their adherence to these standards. This is partly to do with the fact that there is an ever-growing “labrynth” of labels, badges and awards. Those issued by the International Standardization Organisation (ISO) are a good place to start:

ISO 9001 (formerly BS5750) The ISO 9000 family of qualifications show a company has a ‘quality management’ system in place and is the most commonly required, or asked for, qualification. Matthew Botfield, environment manager at paper supplier Antalis McNaughton, points out that there is a misconception that this relates to Rolls Royces and

ISO 14001

“With no set standard or barometer of quality, how can prospective clients be assured that you will offer them a good service?”

The ISO 14000 family addresses “environmental management”. This means what the organisation does to minimise harmful effects on the environment caused by its activities, and to achieve continual improvement of its environmental performance.

OHSAS 18001 OHSAS 18001 is the latest certification specification for Occupational Health and Safety Management Systems. It is based on already published criteria such as BS 8800 and the Management Regulations 1992. OHSAS 18001 is an audit/certification specification, not a legislative requirement or a guide to implementation

FSC and PEFC For dealers, unless you are offering a substantial in-house print service, this is not something you can be accountable for in your own business, as it is in regard to the responsible and ethical forestation of trees for the manufacture of paper. When looking to your paper merchant, you will need FSC and PEFC chain of custody – the minimum requirement to trade in the public sector. The laws on this are becoming more and more stringent.

Why should dealers get them? Botfield sums up the argument succinctly: “If you were to buy a 1972 Morris Mariner, you would expect it to have an MOT, otherwise you wouldn’t touch it with a stick, so why would it be any different with your office supplies dealer?” Unlike the necessary training needed to be an accountant, policeman or teacher, or gaining food hygiene certification in order to enter the catering business, Botfield points out that there is no minimum requirement for business supplies dealers, other than basically registering as a company – anyone can be a dealer, particularly in a day and age where the internet makes it possible to do anonymous or faceless

www.dealersupport.co.uk december 2011

Industry

analysis

business. With no set standard or barometer of quality, how can prospective clients be assured that you will offer them a good service? The bottom line is that you do not want to appear a ‘risky’ choice, and gaining the badges to prove it will go some way to instilling confidence in the customer. This is particularly true to big name brands and public sector contracts, both of which are likely to offer the independent dealer stable and sizeable accounts. When it comes to tendering for contracts, the initial Pre-Qualification Questionnaire (PQQ) sifts out a large number of independent SME dealers and suppliers (see box-out). As Botfield explains: “When outsourcing from a supplier ... [companies] try to find the service they want, the product, the regularity and the pricing – but they’re now asking many, many more additional questions for which dealers are trying to find the answers. In the last five years or so, there has been a huge increase in focus on your business qualifications, mitigating risk against illegal, controversial practices, environmental, human rights, all those sorts of things.” Whatever your stance on the environment, when sourcing suppliers, companies “want to make sure there’s nothing negative upstream that can affect their reputation – reputation is key” says Botfield. “Do they really want to know you drive diesel vehicles and have solar panels on your roof? Probably not – but it’s reassurance you’re not pouring formaldehyde into the local water system.”

What about for small companies, focusing on small business – is there any point in investing? For some dealers, tenders, public sector and big corporate business are beyond the structure of the company. So what, then, would be the use of implementing potentially costly management structures, and obtaining these certifications? Firstly, in such challenging times, it is important to be well-placed alongside the competition, and one way of doing this is to bolster your company name with some quality assurances. When pitted against a supplier with a similar price and offering, you are likely to be the more favourable option in any case, particularly as these benchmarks become more commonplace. The Green Office Week research carried out by Avery for each of the past three years shows that yes, consumers do care, and although in this economy they are likely to be swayed by price, when faced with two products or businesses of the same price they will go green. As Paddy Byrne, CSR manager at Premier Paper says, the end-user is driving the changes. “We find mostly that the driving force behind the accreditations comes from the end-user, from the last port of call.” The green option is becoming more standard, and you will need to keep up with the competition. Also, when it comes to your business practices, good waste management, carbon-free fuel and energy efficiency not only makes good economical sense, but also benefits the bottom line. Other than on the green side, by armouring your company with good processes, quality management, health and safety and CSR, you are seen to be a good employer. Byrne points out that the areas overlap, and you’re expected to have the complete package. “Even to get FSC certified you need proof of a health and safety policy.” Botfield believes being able to tick the boxes positions you as a more sound investment for stakeholders and can also affect your local reputational outreach. Any dealer knows

december 2011 www.dealersupport.co.uk

“When it comes to tendering for contracts, the initial PQQ stage quickly sifts out a large number of independent SME dealers and suppliers across the board”

that your staff are key to your business success, and employee benefits will impact staff satisfaction and retention, and ultimately strengthen your team. As a business-to-business supplier, your customers are equally aware of good business practices and the implementation of ethical and efficient processes. Through researching and working with a consultancy, you will be in good stead to offer support and consulting for business accreditations as a saleable solution to your clients. Various consultancies will offer a share on the service. “For the dealer they don’t have to stock it, they don’t have to deliver it and the margin they make on the service has a very high net profit, as they have no operational costs to worry about,” says Botfield. At the very least, it might be worth looking at your procedures and what you are doing to make your business smart. Do you use recycled packaging? Do you hold a reasonable range of ‘green products? Do you offer a waste collection service for your customers? Have you considered a carbon-free fleet? Are your paper suppliers FSC and PEFC certified? Do you know where your products come from?

How easy or hard to implement?

So, with all these advantages, why aren’t all SMEs applying for ISO accreditation? The answer is mainly because they believe that it will be prohibitively expensive and time-consuming to achieve. And the truth is that, if they use the wrong consultants, they would be right. The most logical step towards ISO accreditation is implementing a suitable Integrated Management System (IMS) that formalises all your business processes in health and safety and environmental and quality management and sets you up for continuous improvement. It is difficult to quantify the investment of time, effort and money that would be needed to attempt each, or any of these qualifications, as it varies enormously from company to company. However, there is obviously a cost attached to getting certified and you will be required to undertake examinations to prove you are sustaining the ideals of the certification. In terms of looking to the chain of custody, Byrne warns resellers to look at what international environmental accreditations suppliers have, as some badges are totally meaningless, and in actual fact, your supplier could be “going around destroying rainforests”. Antalis McNaughton and Premier Paper offer consultancy services to dealers and Botfield has found that “no one wants certification, they just want the business – a bit like, no one wants a mortgage, they just want the house.” There are various A typical Pre-Qualification funding opportunities that can be Questionnaire (PQQ) requires investigated, including a Carbon Trust information on: fund and joint OHSAS 18001, ISO 9001 and ISO 14001 audit systems, which can  Financial standing. not only help an organisation internally,  Technical capabilities including by reducing duplication and providing a membership of appropriate bodies. centralised document control system,  Professional capabilities, including but also offer cost benefits for your membership of appropriate bodies. third-party audit. When it comes to the crunch, whether you are ticking the  Previous experience in the areas of boxes now or looking to do so down the contracting you are undertaking. line, in an economy where business is  Environmental track record. tough and competition is rife, it might  Health and Safety track record. be worth investing in something that will put you one step ahead. DS

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INDUSTRY

WHAT WE LEARNED THIS MONTH

WHAT WE LEARNED THIS MONTH A round-up of office supplies tidbits and trivia from the last few weeks

60%

IN THE NEWS Photo: Flickr’s EverythingBirmingham

STATS AND FACTS

The average percentage add-on of Lyreco’s catalogue RRP prices, in comparison to those in the VOW catalogue. Based on 2011 independent research, across 500 top product lines.

Cameron’s Christmas margins

TOP TWEETS @CLARKESSUPPLIES Is it wrong that I get excited when the @dealersupport magazine lands on my desk?

@INTEGRAOFFICE Massive thanks to everyone who attended the Integra Conference last week! We’ve received fantastic feedback & will post some pics soon!

@CPDCLEAN If you are prepared to accept that you can do something, you can develop the necessary levels of self-belief to achieve your goals.

DATES FOR THE DIARY WorkPlace Futures Conference Where: One America Sq., London When: 21 February 2012 Info: www.workplace-futures.co.uk

BETT - Power Learning Where: Olympia, London When: 11-14 January 2012 Info: www.bettshow.com

Paperworld Where: Frankfurt When: 28-31 January 2012 Info: http://paperworld. messefrankfurt.com

QUOTE UNQUOTE No one wants to talk about stationery unless it’s causing them pain, either it’s not turning up on time or it’s not right – therefore, chances are, customers will be willing to pay a little bit more Michelle Naphtali, P1 Training, speaking at the Integra conference 2011

DECEMBER 2011 www.dealersupport.co.uk

Samantha Cameron’s Bond Street stationery firm is selling luxury Christmas cards at more than £13 each. A set of 25 “bespoke” cards from Smythson, where the Prime Minister’s wife earns a six-figure salary as creative director, will set shoppers back £330. And for £155 you can have the envelopes specially printed. It fuels claims the pair is completely out of touch with the millions facing a bleak Christmas, reports the Mirror. Labour MP Alison McGovern said: “Who can afford those obscene and outrageous prices? They live in a different world.”

Mitsubishi on target Teaming up with MODUS Sports Management, Mitsubishi has donated hundreds of uni POSCA pens to autograph signing sessions taking place at high-profile darts tournaments this winter, including the World Darts Championship at Alexandra Palace. MODUS manages some of the world’s leading darts players including former Premier League champion and world number three James Wade, five times world champion Raymond van Barneveld, 2008 world champion Mark Webster, world number five Simon Whitlock, Paul Nicholson and other notable players. The players will use the pens to sign the vast array of items presented by fans such as 180 cards, shirts and pictures. Stuart Barker, marketing manager for Mitsubishi Pencil Co. said: “We are thrilled to have teamed up with MODUS. The signing sessions have presented us with a fantastic opportunity to speak to a new audience of passionate darts enthusiasts.”

Big on results, small on space. If you need a productive scanner but have little space for it, the stylish DR-C125 incorporates a unique design that frees up your desk space while scanning. With powerful versatile software also included you can have a complete scanning solution right at your desktop, shelf or counter space area. Find out more at www.canon-europe.com/desktopscanners

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peopLe

dealer interview Global Office Supplies

Going global

Less than three years ago, two lads of 22 put their heads together and decided to start up an office supplies business. After nearly a year in a spare bedroom, followed by 18 months on their own office turf, the company has already turned over ÂŁ1 million and scooped two industry excellence awards. If you havenâ&#x20AC;&#x2122;t heard about them already, let us introduce Michael Girton and Mark Keevil of Global Office Supplies

december 2011 www.dealersupport.co.uk

dealer interview Global Office Supplies

he two young businessmen are all smiles as I arrive at their headquarters, where two cavernous empty spaces mark the recently vacated neighbouring offices that the company is set to take over – an exciting time and a clear indicator of the quick growth of the company. Warm, personable and armed with cheeky humour, it is immediately clear to see how the young men manage to win over customers. However, the casual and relaxed rapport is to no detriment of the determination and focused business acumen that the lads clearly have. The pair wants to be taken seriously, and with the BOSS Entrepeneur of the Year and OfficePoint’s Dealer of the year 2011 awards already sitting in pride of place, they’ve already proved that age is no measure of ability and yes, it’s an obvious cliché, but they’re looking to go global.

History boys Managing director Michael Girton and sales director Mark Keevil have been best friends for 12 years. Having both wanted to be actors, they swapped the stage for staplers after college. Girton saw Keevil taking on an acting class, while Keevil’s mum made him take a graphic design course, which would later come in very handy. “It was in that stage where everyone was saying you had to work in computers. ‘You gotta work in computers’, she said. ‘That’s the only way you’re gonna make money; just work in computers!’ And that was it, I did a multimedia course,” says Girton. However, following college, the boys saw an advert for sales people at a local office supplies dealer. Keevil only lasted three days, deciding, ironically, that sales was not for him. Girton stayed on for over a year.

The hard graft began immediately and the boys locked themselves away for near on a year, with a lot of determination. As Keevil explains: “It was intense. We wouldn’t even leave for lunch. We’d put something in the oven, work while it was cooking, then bring it up and eat while we worked!” From the small room they had lofty goals in sight, which drove the impetus behind their fight for sales. After nine months they moved into their own offices, and having been in the building for 18 months, they have recently acquired another two offices in order to accommodate the company growth. “We don’t want to grow too fast and lose sight of what’s important, but we want to keep the momentum up,” says Keevil. Let the recession roll Starting in a tight economy would seemingly be a struggle. Not for the Global boys, who found that the end-user hunt for good prices actually gave them better scope for acquiring customers, and the pressure on banks to lend to young enterprise actually gave them a headstart. “I did research into which banks were being pressured to lend and found that Natwest was one of them. As a 22-year-old lad walking into the bank asking for a considerable amount of money to start a business, it was all pretty touch and go!” says Girton. Since then, despite the times, the business has rocketed beyond their expectations. As Girton proudly states: “We set a target and we tripled it in our first month. We’re also a year ahead of our forecasts.” Mob mentality The boys joined XPD immediately, as having worked with stationers in the past, they knew full well that the wholesaler margins would not be as strong if they worked independently. Since then, the pair has received notable support from the XPD business development manager, Gary Billington, who has gone above and beyond the call of duty in order to get the boys the recognition they deserve, having first suggested the BOSS entrepeneur award to Girton. “It hadn’t even crossed my mind to apply. I didn’t even really know what BOSS was.” Billington came down to London prior to Girton’s meeting with the BOSS panel. As Girton explains: “I can sell the company, but this was a totally different kettle of fish, and it didn’t help that I turned up soaking wet!” Billington came down to prep Girton before the big meeting. “He lives a good four-hour drive away. He didn’t have to do that. He’s taken us under his wing a bit and we’re very lucky to have his input,” says Girton. Not only did Girton then go on to pick up his

It’s not about how good we are as a company, but how the customer can benefit from using us Following a few seasons living the dream working in Greece, and having got all their partying days out of their system, they both went to work for another stationer. However, Girton decided he needed to get serious, and couldn’t contain his entrepreneurial spirit any longer. “I’ve always been passionate about having my own business,” says Girton. He decided it was time to use what he’d learnt and start up his own office supplies empire. He asked Keevil if he was up for the ride and Global was born – in a spare box room at the Keevil family residence.

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people

dealer interview Global Office Supplies

CV Turnover: £1m+ Number of staff: Nine Vans: Two Dealer group: Office Point Back Office: Pulse Website: globalofficesupplies.co.uk

trophy for Entrepeneur of the Year (from the fair funny hands of Bobby Davro, no less) at the BOSS awards in October, the company also scooped the OfficePoint Dealer of the Year award. When I ask the lads if they had pictured themselves being award winners so early on, they are beyond modest. “We are over the moon. It’s so nice for all of us, for all the team to be recognised for their hard work,” says Girton. I ask them what they’ve got planned for next year. “Well there’s always BOSS dealer under £5m!” quips Keevil, but although they have an eye on the prize, they aren’t glory hunting at this stage. They are simply concentrating on building a successful, solid business foundation. “The awards are great, but we see it as a bonus – we’ve got so much going on at the moment, racking awards up isn’t our focus,” says Girton. And they aren’t exaggerating when they say there’s a lot going on in the next couple of months – new year, new offices, new software and phone lines, new delivery driver, and potentially five new salespeople – “and that’s before we’ve even picked up the phone!” says Girton. It has all been planned with military detail – firstly, the promise of chaos as the builders get ready to demolish the adjoining office walls to make a grand open-plan penthouse setup. Winning formula In a bid to keep its growth slow and sure, Global sources the majority of its products from Spicers and delivers stock directly from the wholesaler warehouse. Girton explains: “Potentially we are looking at getting a warehouse, as obviously bulk-buying would help to get costs down. But that’s not going to happen just yet. We’re

december 2011 www.dealersupport.co.uk

building quite steadily without it, but if that’s what it takes to get to the next level, then that’s what we’ll do.” However, they are intent on tailoring to their customers’ every need. “We work towards every account manager building a relationship with their clients whereby they feel they can come to us for anything at all,” says Girton. The company recently supplied a famous hotel brand with reception plasma TVs, customised umbrellas, and bathroom scales. “We’ll outsource anything,” says Girton. The company clientele is mainly Londonbased, but they supply all sorts of companies, of different sizes, and the company ethos is to build strong relationships with its clients. “All of my clients are my friends,” says Keevil, “and that’s what we try and get our team to do – it’s all about building rapport.” There are ten10 staff in all: split into five sales staff accounts and two drivers, and the guys know the importance of a good team. Girton explains: “We don’t let just anyone work for us. We have friends and family asking us for work all the time, but we’re very selective. We know what a bad egg can do to a team.” Also, the boys know how important it is to make sure the team of ‘good’ eggs is rewarded and recognised for what it does. “We love our team to bits. We make sure they know when they’re doing good.” The guys are so relaxed, it seems hard to imagine they would keep a hard hand in the office, but they know how to hold their own, as Girton explains: “Yeah, I’m quite strict I suppose – but we’re fair.” The guys value staff mentoring and training very highly. Keevil explains: “We don’t just

people

dealer interview Global Office Supplies

We work towards every account manager building a relationship with their clients whereby they feel they can come to us for anything at all

sit them down with a phone, a script and a book; we actually train them. It’s great to see them grow, there’s nothing better than seeing your team succeed. That’s where I get my job satisfaction.” And that doesn’t just go for the sale staff; the boys are keen to make sure that the customer gets the best service, right through to the end of the line. “Drivers are essentially the face of the company. All dealers say they have great customer service, but all I’ll say is that I know some who sling the boxes at you. We choose our drivers very carefully,” says Girton. Perhaps most refreshingly, the boys push for a proactive and lively workplace, to drive the salesforce – with a little help from the legend of soul, James Brown. As Keevil explains: “I Feel Good is our new account song. We put the music on and the team member gets to have a boogie round the office. It’s a friendly atmosphere, but with a competitive edge. We find that it makes the others think: ‘Hey I wanna boogie too!’ – and they’ll fight for the business.” According to Girton, he and Keevil have the best repertoire of moves. “Maybe we should interview on the basis of that – ‘OK, maybe you can sell, but the real question is: Can you dance?’!” Web wisdom As far as websites go, Global has come up with a winning formula, with an accessible, fresh and vibrant design that the guys endeavour to carry through their company ethos and branding. “We wanted something that was young and a bit different. Yes, business supplies are important and businesses can’t run without it, but that doesn’t mean the website has to be all boring and corporate.” And that has been where Girton’s graphic design days have come in handy. “I knew exactly what I wanted. I spent over a month just choosing the right designer.” Girton ended up designing the front page. “We aren’t bothered about blowing our own trumpet. It’s not about how good we are as a company, but how the customer can benefit from using us. I wanted to strip it down to just six questions, and make it easy for the customer.” The site went live in September and the company has received fantastic feedback. The team knows the importance of getting the brand out there, having exhibited at two conference shows this year, and on the continuous hunt for innovative ways to target customers. Girton explains: “I’m always coming up with new ideas, and then it’s like; ‘Cor, that idea I thought of in the bath works!’” Part of the company branding is its green credential, but, Girton insists it goes beyond a sales line. “Yes it adds to our toolbox against competitors, but I do care, and we do our bit. We can recycle up to 90% of our products. We give out a ‘green book’ to make it easy for customers to chose green products. I believe every company should be using recycled paper, it should be illegal not to, and when that day comes, I want us to be leaders.”

december 2011 www.dealersupport.co.uk

01e_Text 01f_TextIndent 01h_Subhead 01g_Author_Italic DS

Loving the biz The sky is the limit as far as the guys are concerned, as they see their target audience as infinite. “I love this industry,” says Girton. The product gets used every day. It’s an advantage of some industries, whereas with a telly, you sell one to the customer and that’s it; you have to find another customer. With office supplies you can find business anywhere. I’ll be sitting on the train and pass a company or see an advert, and then I’ll be texting Mark saying: ‘Give them a call, give them a call.’” Keevil adds: “It’s quite constant but we enjoy the whole ‘chase’.” The guys are still feeding off of the boost that comes with the early days. “Everything is new to us, as it’s our first business. We’re always learning, and we love that,” buzzes Keevil. Looking to the future, I ask them where they see themselves in 10 years. Girton is planning to take the business global and sees cross-country offices – first stop: New York. “We’re still young, but in 10 years, we’ll definitely be up there,” says Girton. “We see ourselves having several offices like the big boys. That’s why we’re in here every day, because we see ourselves growing – but we know we’ve got a lot of hard work ahead of us.” DS

people

dealer interview First Class Business Solutions

The IT Crowd When it comes to managed print, document management and IT services, sometimes the traditional stationer can feel like an outsider looking in. We spoke to Daren Parsons, Head of IT at printer and IT dealership First Class Business Solutions (FCBS), to find out more about the positives of offering software-based solutions to your customers

december 2011 www.dealersupport.co.uk

dealer interview First class business Solutions

So Daren, what’s your background, and how did you ﬁnd yourself in IT? I started around 20 years ago, as we all do in this trade, as a photocopy engineer for a well-known dealer in London and I took to it like a duck to water. I was promoted to workshop manager within six months and then to service manager. At the time IT was becoming very strong for our industry, as the analogue photocopiers were becoming digital. I did all the courses and took on the IT side. I then got approached by another company, (which was very, very successful while I was there), then First Class knocked on my door, just over five years ago. FCBS were just dabbling in IT, but they wanted to become a strong force in the market. They wanted someone to come in and make a definite decision on what needed to be done on the IT side and grow a strong team behind them, based on what FCBS believes in – a total solution for everyone. Could you explain the company background? The company started up 17 years ago as a familyrun business. It began as a service company, servicing photocopiers and printers. They then got into selling photocopiers, photocopiers then became scanning devices, after which the natural question was: “What do we scan into?” The answer is document management software. So that’s how we’ve evolved really. We also do print consumables and business machines, and complement that with managed print services. We’re looking at the whole office environment and how an office works. In the IT department we have a web designer, training officers, support engineers – we look after everything for the customer. We’re looking after the websites, the search engines, and also looking after the PC side and the server side. It’s more of a one-stopshop, so if someone’s on holiday the customer doesn’t have to panic, thinking: “I know who that photocopier is with but I don’t know who that PC’s with!” – everything is with First Class.

Because we’re independent we can cherry pick which software we think will sell and benefit the customers

We’ve been hearing more and more about document management software, are we on the way to a paperless ofﬁce? We’ve seen, particularly in the last two years, that people want to document all their archives away, they don’t want all the paperwork, they want the paperless office. It’s never going to happen – people do like to have that paper to wiggle and walk around with. Unfortunately with the photocopy industry that we are in, we get paid on the click, so we want the paper! But the other side is that we want them to scan all their documents away into DocuWare, our document management software system, without all the printouts – so it’s very hard for a dealer to know what’s the right thing and the wrong thing to promote. It’s a balance and it’s just trying to keep everybody happy, most importantly the customer.

www.dealersupport.co.uk december 2011

people

dealer interview First class business Solutions

In terms of document management software, what does it take from you the dealer, and the customer, to put into place? There needs to be an interest. There’s usually an actual need, as they may be paying for off-site storage, and if they want a particular document then they have to send someone to get it. If that document is in the right box that’s great – they bring it back, they work on that document, then someone has to take it back to that storage unit. But if the document isn’t in that box, someone’s got to search for it, so you’ve got the cost of the time of people searching for it. With DocuWare it’s a quick two second search and that document is there – it’s all about ease of use. If there’s an enquiry we’ll talk to them and book an appointment, we’d go out there and do a presentation of the software. There’s some really great videos online where they can see it in action. That gets the interest going. Once they have the interest, they invite the MDs and the FDs along. It’s when you meet the FDs that you need to build a case and we say: “This is going to save you ‘X’ amount in year one, year two and year three.” Most of them say: “Do we need to get rid of someone?” as the software will do the filing job, but the answer is no, it’s just a way of making you work smarter, find documents faster and get decisions made a lot quicker. We start by looking at the pain points. So we say: “Lets look at some invoices – how do you process your invoices? If we can speed that process up, would that be of benefit to you?” And they tend to say: “Yes it would, how would you do that?” And then we have a solution for them. Does the software side offer a means of building strong relations with clients? We’re in constant contact with our customers. It’s a modular piece of software, with different modules, like apps for your iPhone. We are constantly letting them know what’s available and what’s out there. We hold review meetings, because we want to know if there’s any more licenses needed within a company. A department may make a purchase for a five-user licence, and then another department in the company may decide they too would benefit from an aspect of the software, so they will make further purchases, and that’s how we make our money. What sort of customer does document management software appeal to? That’s the best thing about DocuWare; it’s not suited for a finance person, or a solicitors, it’s for everybody. We have it in a primary school and universities, banks and shops. We service a major ticketing vending business – it’s not designed for one particular person or industry. We’ve also installed it in people’s houses, for

december 2011 www.dealersupport.co.uk

example we have an anaesthetist. It’s for anyone who wants to store an archive. Do you work directly with manufacturers for the supply of your machines and software? We’re an independent company, and we’re not tied down to any particular manufacturer. We have partnerships with Sharp, Canon, Konica Minolta, Ricoh, and have just taken on HP and Samsung. The beauty of taking on all the manufacturers means we get to see all their machines, but we also get to see all their software platforms. Because we’re independent we can cherry pick which software we think, ourselves, and as a company, will sell and benefit the customers, because you cant have everyone’s solutions going forward. In a world becoming increasingly ‘virtual’, Is face-to-face still key? Yes, it’s very important. As an IT guy, accessing a computer remotely is great, it’s fantastic, it saves you having to get on a train. However, you’re missing the personal side. It’s very important to talk to your customers – not go in, put the machine in and come back three years later when the lease is finished and you want to sign them again. It’s really important to keep that going. We take them out for lunch and say “thank you” for the business, which I think is important. They may ask: “Can you do this?” and maybe we can’t, but we will try and pass them on to someone who can. And we’ve made some friends – we play golf and go out with some of our customers. It’s a good way of meeting friends. I know some people who won’t move from their desk. “Oh, I can’t be bothered, I’ll just remote in” – you’ve hit your response time yes, but we’ve given you the chance to get out, we’ve given you a travelcard, go out! Meet some people!

We’ve seen, particularly in the last two years, people want to document all their archives away, they don’t want all the paperwork, they want the paperless office

Have you felt the pinch of the recession? The recession is always knocking on the door. Yes, we’ve found times hard over the last two years. However, since January it’s been totally different – we’ve had the calls coming in to us. And the best thing about it is that we didn’t make anyone redundant. And yes, we’ve come out stronger on the other side – especially since January, and especially with our managed print services. Where we were looking at a one-machine, or five-machine deal before, we’re now looking at hundreds. We’re talking to our customers, and they want to drive down costs – one way they can do that is through their printing.

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EvEry good salEspErson knows that knowlEdgE is powEr And ThAT’s where UsP comes in. Every month, this industry focused-magazine brings you everything you need to know about the latest products and key trends in the office supplies market, as well as quality advice from leading experts on how to become a better salesperson and brush up on those sales techniques. There are also inspirational interviews with leading figures from the world of business, television, sport and film and our Live It lifestyle bible, showcasing the latest gadgets on which to spend your commission. Also, USP will be giving away some top prizes every month – for FREE. Subscribe today for your free monthly update - it’s very easy and won’t take a minute. Why not invite all your sales colleagues to sign up as well? That way everyone in the team is up to speed!

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When you have an IT guy accessing your computer remotely, it’s great, it’s fantastic, and it saves you having to get on a train, however, you’re missing the personal side

It’s education to be honest, just showing people what they can save over the next five years.

product and that they’re growing with us. We want to grow our business each day.

So have you seen a lot of growth in managed print services (MPS)? Managed print services has been the biggest thing for us this year. Let’s take an example of a bank, which is likely to have 100s of little printers dotted around, and some photocopiers. The IT department are in charge of this fleet, however they don’t want to touch a printer, they’re interested in the servers, PCs etc. We go in there with a form, a print audit and we get their floor plans, plot out all their devices. We then go back in 30 days and work out an average of what they’re spending a month. We need to get the costs to get their true cost of ownership, and then we can confidently say: “We can save you 20% if you go with our products or software.” We install an agent on site, i.e a photocopier. We put the software on there and that machine talks straight to our service department so that we know what that machine is doing at all times. So, if the toner levels runs low, that sends us a message to the system, logs the toner that is needed, and we send the toner to the customer. It also saves us storing shelves of toner just sitting there getting old and out of date. If there’s an error code, we know right away and we send the engineers out. Plus, it’s environmentally friendly – we only want to send them out once, with the right parts. The most important thing is keeping the copier going for the customer. You don’t realise how important a photocopier is to some companies, it’s unbelievable.

How do you market yourselves to customers? One of the things we launched this year was our online store, so that people can actually buy online. We do the mailshots; the old-fashioned through-the-door way, but we’re now doing a lot of e-shots, that’s our main focus. We’re also doing a lot of roadshows. We’re looking to do a few exhibitions at Earls Court, sponsored by a manufacturer. Putting up a stand is a great way of getting that face-to-face contact. We’ve put a stand up in reception at Canary Wharf before and it’s been very successful.

How about with DocuWare, what’s the outlook for 2012? Theres no target we want to hit with DocuWare, but we want to double our current base. But as long as we’re constantly selling then that’s great for us. You don’t need to have thousands of customers. It’s very beneficial; there’s a good mark up on the software and we offer a fair price. We’re not here to rip anyone off, we’re here to make sure they’ve got the right

Do you partner with any other companies? Yes, various companies and dealers are looking to us, and we’ll help them, why not? We work with a photocopy company in London as they don’t have any IT support. We go out and help dealers install photocopiers and give them a bit of training. Should we? There’s an argument that maybe we shouldn’t, because we could get a better margin if we went in independently. However, they will always come back to us. A dealer rang me today, and asked: “Can you send one of your chaps in?” So we will and then we charge them a rate. On the document management side, a dealer from Cheltenham just got in contact with us and said: “I wanna know about DocuWare”. There’s loads of different software packages about, it’s just picking the right one. None of the manufacturers had DocuWare, they had their own, and if you look at the manufacturers now and see what they’re selling, it’s DocuWare. Sharp and Ricoh are starting to push DocuWare. Some of the heads of the big manufacturers are asking us about it. They’re looking at us as a small dealer and asking: “How successful are you? How do you sell the service?” Which is very flattering. At the end of the day, it all comes down to cost and if you can drive down the end-user’s costs, for example, if they can spend £500 on a DocuWare system and save £10,000 a year, they will do that. DS

Andy Cochrane Head of Corporate Sales (City and East) RED BOX

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management

interview

Review

Conquer With the New Year on the horizon, experts from office supplies consultancy the Business Performance Group give Nina Rosandic a round-up on what dealers need to be considering for 2012

december 2011 www.dealersupport.co.uk

interview

THE BP GROUP PROFILES Nick Wilkinson - Commercial director In 1987, Nick Wilkinson joined Spicers in the central warehouse in Sawston. In a career in the office supplies trade spanning nearly 20 years, Wilkinson has had success in sales, marketing and operations management, as well as developing first class people management and coaching skills, with up to 100 people working for him at one point. He has worked for the two major wholesalers, as well as a supplier to the market, and most recently headed up the Synergy programme for Spicers. Jade Wilson – Sales director Jade Wilson’s introduction to the office supplies industry was over 10 years ago with Corporate Express, including roles creating new business to managing sales teams, and also winning, managing and growing national and European contracts. He then switched to the Oyez Straker Group to successfully run and grow part of their Scottish region. Before joining the BP Group, Wilson was head of business development at Integra Office Solutions. Adam Scott – Business development director Adam Scott joined the BP Group in October 2010, and his colourful and successful career in corporate sales spans over 10 years. In addition to being part of the sales teams at several large corporate companies and stationery wholesalers, Scott has grass roots experience working for two Londonbased stationery dealers. In his last role, he successfully achieved a 250% sales growth of new business over a three-year period.

www.dealersupport.co.uk december 2011

management

interview

Any business that isn’t moving forward and investing in the future is going backwards as the economy, technology and the competition are invariably moving ahead Should dealers be investing in these tightened economic times?

Wilkinson: Yes, a dealer should invest, but mostly that is an investment in time: time to re-evaluate their business. While office supplies is a declining market, there is still millions of pounds worth of business out there to go for that is still not being dealt with within the traditional dealer channel. With regard to investing money, this is always a difficult decision, especially when the purse strings have been tightened, but, in short, any business that isn’t moving forward and investing in the future is going backwards as the economy, technology and the competition are invariably moving ahead. Investment in strategic understanding and activity with a clearly defined plan and ROI outcome has to be a good thing. There is a fine line between playing it safe and playing it recklessly. Dealers need to take the odd calculated risk to get a better foothold on developing their business and securing the future. wilson: Yes, dealers should be looking to invest in the right areas of their business by understanding where there is a weakness or a potential gap for development. It’s extremely important that every aspect of the business is challenged, from the range and pricing strategy, to performance management of every employee, to sales and marketing plans and activities. scott: Yes, I believe that dealers should invest in growing their sales team and sales efforts. Making sure the sales team remains proactive, focused and measured is imperative to their success and ultimately new business growth. As well as considering managed increases in head count to deliver organic growth, dealers should look at growth through acquisition. In the current economic climate there are businesses that are seeking sale opportunities. Other areas of investment should be in marketing and technology across the business, embracing opportunities to reduce operational costs and improve the customer experience. Are customer retention and growth possible in the current economy?

Wilkinson: Absolutely, it is possible. Dealers must continue to do what they do well – look after their existing customers by delivering good value for money with exceptional levels of customer care. Our experience shows us time and again, that most dealers have a vast untapped and unknown potential within their tail of accounts. Usually this tail runs in to hundreds of accounts, and because the dealer has focused their attention on their top accounts, they don’t know

december 2011 www.dealersupport.co.uk

much about this tail with regard to demographic make-up and future potential. Using a proper CRM system and gap analysis tool will help the dealer understand the trends within their customer base and act accordingly. Through our experiences, a dealer could increase their revenue by a third if they were to focus on maximising their existing customer base. Is getting new business possible right now, and are people spending?

Wilkinson: Everybody is spending, just less. Of course, with so many people out of work at the moment the number is reduced, but officially there are approximately 30 million people working either full-time or part-time in the UK. That’s a lot of office supplies, furniture, print, PPE, EOS, etc. Someone has to supply it; why not the traditional dealer? scott: In this current climate I think you have even more opportunity to gain new business. When times are tough clients that have been with the same company for years will often dip their toe in the water to see if savings can be achieved elsewhere. Remember though, while this is an opportunity it’s also a threat! Dealers need to ensure they keep customers through strong account management. What can dealers do to bolster their business and reputation?

Wilkinson: Most dealers have a reasonable reputation already, but they need to play on the local business and national coverage element as much as possible, plus push key strengths. Involvement in the local community is also a good thing. Let’s face it – the “corporate” office supplies organisations are rarely praised for those key strengths – their USP is price, price, price, but we all know that’s fine until they are found out!

scott: Although customers will always have their eyes on costs and want the cheapest pricing, effective service goes a long way to keeping them. The office products industry has been working on a 24-hour turnaround delivery for many years now and because of this many customers no longer appreciate all the many cogs in the machine. Sometimes it’s good to remind customers just what dealers do for them, to make them feel special and to help them see what a great service they are getting. Nowadays more and more customers can be won and lost on price so easily. In order to combat this, a good account management structure is a must. Larger customers need to have a solid relationship maintained with regular reviews and contact. The utilisation of an effective CRM system can make each and every contact work harder through a consistent and reinforced approach. What is the best, most cost-effective way of reaching out to new and existing customers?

Wilkinson: In fairness, most dealers will start with 1) sending something out, and 2) following it up, but it needs to be further reaching than this, taking the process all the way to winning the business. Fundamentally, dealers will need to ‘market’ themselves on several occasions to get a prospective customer’s interest – one e-shot will not do it, and marketing only really works if it is followed up consistently. The dealer should use all marketing methods and channels available to ensure the message gets through: e-shots, letters, mailers, brochures, etc, but with a full understanding of what the expected outcome is likely to be.

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management

interview

scott: Due to the internet and the way this has revolutionised how people buy stationery, the right marketing is key to making sure new customers know you are there. The most cost-effective way is obviously via email; however I do think that there is something to be said for still using the traditional methods such as post. Making sure you are up there through search engine optimisation, via Google and other search engines, is a must as younger buyers now automatically search the net when looking for prices. Social networking such as Twitter and Facebook are also becoming good ways of winning new business and getting your message out there. How do you identify the next opportunity to expand into new products, markets and customer demographics

Wilkinson: In all honesty, dealers need to sell whatever they can, and capitalise on gaps in the market or in their customer offering. This could be niche products like rock salt for gritting car parks, or larger strategic opportunities like print or PPE. Dealers should be focusing now on are PPE and work wear, print, MPS and education. These are product areas that are not fully supported by the traditional wholesalers, so the dealer will have to think laterally but the current suppliers into these markets tend to have much lower levels of service than the traditional office supplies dealer and are therefore vulnerable. For example, a school supplier may offer a two-week lead time.

scott: I believe it is important for dealers to understand their current customer base in order to expand into new product sectors effectively. It can also depend on your location. For example if you are a stationery dealer based in an industrial town then work wear and PPE could be an additional product range that would be viable to sell within your local area. Are dealers getting the most out of their infrastructure?

Wilkinson: Unfortunately this has to be a no. This has to be tempered by the fact that most dealers have built their business around the services they take from their wholesaler – pick, wrap and deliver, web stores, etc. – which has created a lean infrastructure within the dealer channel, with little fat. This should not be an excuse for complacency. If a dealer is struggling and they want to grow, something has to change, which is either changing the infrastructure and working practices, or investing in external help. Results will always follow if the will to change is there. Staff training and development – are dealers making the most of the people on the ground?

Wilkinson: Again, unfortunately this is a no. Dealers still send out their sales force to pick up compliment slips, wasting time and fuel. It is much easier to use a lead generation tool, and carry out the same activity from the office where you can follow up immediately via email, and send out relevant and targeted marketing. Training is important, but coaching and mentoring more so. As we all know, hard as it is, being chucked in at the deep end is often the quickest way to learn. Often being a good salesperson is about attitude and approach rather than training, but they will need support in developing their abilities, approach to effective call planning, etc. Dealers also forget that their drivers can be very effective salespeople, but need to be trained and motivated in similar ways to their salespeople.

december 2011 www.dealersupport.co.uk

Communication works best when the message is ‘drip-fed’ and continuously reinforced WILSON: Every dealer is unique due to experience, size, location, heritage etc., but there is always opportunity to work smarter and improve the way business is done. Many dealers have what we would call “little diamonds” within their business, but they might have multiple functions within that business and are not able to focus on the areas where they can add the most value. scott: In my experience I would have to say that dealers are not getting the most from their sales staff. This mainly comes down to their infrastructure and the ability to offer a seamless sales support to the proactive sales team. If a proactive salesperson is spending the majority of their time looking after clients or simply order-taking then new business growth will falter or cease to exist. I would also say it is to do with how the team is managed. If the direction, focus and plan is not on ‘attacking’ for new business, again results will be limited. If a salesperson is not achieving targets, but still giving maximum effort, then it is time to review with them why the sales are not being achieved. In many cases it is down to time management and making sure you are staying focused on being proactive in the right areas. DS

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management

analysis

Fighting fraud Last month, Dealer Support alerted dealers to a company fraudulently seeking £250,000 of credit for ink and toner supplies. As this activity becomes increasingly common, Gordon Skaljak, credit expert and MD of Graydon financial services, offers some tips to prevent your business falling victim to corporate fraud

t’s no wonder that the results of a recent survey into the levels of corporate fraud in British business sparked much debate in the press and in the credit management industry in particular. The survey, conducted by credit information agency Graydon.co.uk, was carried out among those working in credit management departments in a business-to-business environment, and came up with some alarming results. The study found that one in three respondents had experienced an instance where they had received a credit application from a business wanting to obtain goods or services from them fraudulently. The results also showed that the same percentage believed the problem of fraud was getting worse compared with the previous year, with only six per cent indicating that they believed the problem was reducing. According to the Financial Times, it is estimated that economic crime cost UK businesses more than £38 billion in 2010. So why is white collar crime on the increase and what can be done about it? Like John Dillinger, the American bank robber, most criminals are opportunists who also like to think they won’t get caught. Corporate fraud is not exactly high on the police agenda, with other high-profile crimes taking precedence. Additionally, there is a commonly held belief that with the British judicial system as it stands today, convictions for fraud are notoriously difficult to obtain. So, it’s not surprising that some criminals see this area of activity as attractive. Also, other factors exist that make the fraudster’s life easier, for example, disclaimers on the Companies House website explaining that documents lodged there are accepted by the Registry in good faith and “are not verified or validated in any way”. Also, losses caused by corporate

december 2011 www.dealersupport.co.uk

Frauds can only be perpetrated when existing credit control procedures at the supplier end are insufficient

fraud are often viewed by victim companies as commercial debt and not fraud, and perpetrators believe that few companies pursue them, and choose to write off corporate fraud losses as bad debt instead. But perhaps the biggest reason fraud happens is that orders for goods on credit are not properly vetted by suppliers. Smaller businesses are often viewed as “soft” targets by fraudsters because they are too small to employ professional credit managers. So how does the fraud happen? Firstly, fraudsters use genuine company details for dishonest purposes, known as ‘identity fraud’. Signatures are forged in order to have goods delivered to an address that is in no connected way with the original bona fide company whose identity has been stolen. Also, as has already been mentioned, fraudsters are filing false documents, such as fictitious balance sheets, at Companies House in order to generate good credit ratings with the information agencies, along with false director appointments and registered office changes in order to facilitate identity theft fraud. However, perhaps most importantly, frauds can only be perpetrated when existing credit control procedures at the supplier end are insufficient, either through ignorance about what to look out for, or lack of will to introduce adequate checks to stop this from happening. The good news for businesses is that procedures can be put in place to tackle this growing menace, and tips can be taken on board to protect your company’s best interests and profitability. Firstly, like consumers, businesses should be very careful as to how they dispose of their ‘rubbish’. Small businesses in particular should never throw away paperwork such as utility bills, credit card statements,

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bank statements etc., without shredding them first. Identity thieves are known to rummage through rubbish bins outside of commercial properties. Once you have taken that initial precaution, it is worthwhile taking a few additional steps that will go a long way towards protecting your company from the risk of corporate fraud. Before giving the green light to deliver goods or services to any given client:  Always obtain a credit report on the business – not from an agency that just regurgitates Companies House data. Choose a reputable agency that will add value by analysing and scanning their huge commercial credit databases for unusual patterns of corporate behaviour and reporting such findings to clients within their credit reports and monitoring services.  Never set up an account until the application has been fully processed.  Check the credit application for quality and completeness.  Always check the trading and registered office address.  Be wary of mobile phone numbers and non-business e-mail addresses, e.g hotmail/yahoo etc.  Know the true identity of your customer – have they got a website?  Most companies will pay their bills by completing a purchase order from their accounts department – obtain a copy of this  For non-incorporated businesses, request original copies of utility bills quoting the delivery address.  Double check all delivery addresses, keeping a close eye on what sounds like residential addresses.

It is also extremely important to flag certain events and details that seem out of the ordinary. Here are some examples:

According to the Financial Times, it is estimated that economic crime cost UK businesses more than £38 billion in 2010

 Is there a sudden change of delivery address?  Is there a last minute call to collect the goods rather than have them despatched to the quoted delivery address?  Is the delivery address given by the client shown on the credit report you obtained from your agency?  Are the telephone numbers fixed-line or nongeographic, eg, 0800?  Have you received an order on the last afternoon of the month? (Fraudsters, like credit managers, understand the pressure from the sales department!)  Look out for unusually large orders placed at the start of a new month, where the fraudster anticipates he has the longest time before you chase for payment.  Have you received a large first-time order on a credit card? If so, be wary. Businesses therefore have a choice when it comes to fighting commercial fraud. They can keep their fingers crossed and hope it never happens to them, much like the house owner who refuses to invest in a burglar alarm system when all his neighbours have done so. Or, they should fully recognise that commercial fraud is here to stay, but appreciate that if proper controls are put in place, the opportunist criminal will move on down the commercial street and target someone else who looks easier to take on. DS

www.dealersupport.co.uk december 2011

MANAGEMENT

Advice

P OW E R TOOLS With the internet offering a wealth of avenues for communicating to potential customers, web specialist and Profunnel MD Matthew Hall discusses the importance of shaping up and making the most of B2B online developments

ost companies involved in B2B sales know they need to raise their profile and engage with prospects through online marketing and lead generation. they also know that relying on cold calling and traditional prospecting alone is not enough, nor indeed as effective, any longer. companies need to get themselves in shape to make the most of the new developments in B2B online marketing and take full advantage of the opportunities out there.

december 2011 www.dealersupport.co.uk

Advice

Update your online look and visibility

Hook into the digital conversation

According to Forrester, 98% of companies in the B2B space agree that their website is their number one source of new leads, and yet so many firms treat their site as simply an online version of their corporate brochure. So this winter make a commitment to work harder on your web presence and make your website work harder for you. First steps will be to make sure the site contains the sort of vocabulary and content that your customers are looking for. I recommend making sure your website is rich in the keywords or page content that might be used in searches. But, above all, you need to make sure there is something of value on the site to make it worth the visit. Prospects will always appreciate further information they can take away for free. For example, some dealers offer a news service, or tips for office managing. If your marketing does involve offering content for visitors to download from your site, then make sure you are able to capture important information about the lead, in particular an email address, otherwise you are just giving away intellectual property with no way of promoting your business in the future. Contact your SEO specialists, or web developer, to discuss making the site more search-friendly – they will be able to advise you and help to create a programme of regularly updated content such as news, case studies and video. They will also be able to review your paid search to align it with current marketing plans.

According to a recent Sherpa report, 93% of B2B buyers research companies and products online before making a decision to buy. So, most B2B buyers are engaged in a conversation with your company already. The question is: do you know anything about these conversations and are you having any input in them? Use online social media and brand reputation systems that identify online conversations about your brand across the internet. These social media listening, tracking, monitoring and engagement tools allow organisations to successfully employ social media responses to both positive and negative conversions across the internet.

Get the numbers on your side

B2B sales is essentially a numbers game and an element of intelligence is needed if your business is going to generate the smart sums. Take a look at your current CRM database. It will be out of date. Guaranteed. You will also find there just aren’t enough names in there to give online marketing campaigns a chance of success. I have seen companies with a few hundred names on their database that issue an e-shot and expect the phone to start ringing off the hook. With average open rates of about 25%, varying depending in the industry, the only reply these companies received was ‘out of office’. If you need more leads then you need to look at increasing your database size or improving conversion rates with more compelling messages. Remember - every correct email address on a CRM has a value to your future marketing, so ensure that your salespeople are entering all contact details including email addresses, and you will soon see the impact. Try to segment your marketing campaigns by sector, company size and location, so that you are targeting the sorts of companies you can actually serve, focusing your marketing and sales efforts on the areas where you have a competitive advantage. Understand the filters

Most companies worth talking to will by now have some pretty effective spam filters on their network. They will look for use of capital letters and exclamation marks in the subject line and even filter out certain expressions like “Bargain” or “Deal of the day”, – so unless you take this on board you are not even going to get to first base. A marketing automation system will test your emails and let you know if they are likely to be seen as spam and filtered out of your customers’ inboxes. It will also allow you to send from a web-based application with a trusted IP address therefore ensuring your messages are delivered.

Get your content in place before you start

Anyone who has been involved in email marketing to support their sales efforts will know that one of the biggest stumbling blocks is content. Carefully plan a programme of email campaigns and the resources upon which that might depend. If you are going to need in-depth white papers, these take time to put together, case studies will need customer approval and webinars will need scripting and preparation. You can’t just magic all these resources into place over a weekend. If you decide to go down the marketing automation route you will need to feed the system with a range of different types of emails for different circumstances. As well as regular drip emails there will be others that are triggered as the result of a prospect’s interaction with your website. For each email you will need a bespoke landing page that is relevant to the message in the email. A decent marketing automation solution will contain a wide range of templates for landing pages that will shorten the design cycle and allow you to react more swiftly to opportunities.

93% of B2B buyers research companies and products online before making a decision to buy Invest in marketing automation

By investing in a marketing automation solution you can not only track who visits your site but also find out how often they come back and how long they stay on a given page (revealing their prime area of interest). By introducing activities and resources such as white papers or guides that entice your website visitors to download, you can then identify them on returning visits when they are ready to purchase. A marketing automation system enables salespeople to receive alerts whenever a web visitor enters or leaves their website and to follow up on ‘hot leads’. The technology enables organisations to create marketing campaigns that are specifically tailored to appeal to a definite target audience at the right time. Overall a marketing automation system allows businesses to greatly improve sales conversions by collating, analysing and delivering crucial information straight to the people who can use it effectively when those people need it. DS

www.dealersupport.co.uk december 2011

management

IDS LEAGUE Burke Office

Future proof They say the luck shines on the Irish, but, coming second in the IDS league takes a little more than a brush with good fortune. Nina Rosandic speaks to Burke Office MD Michael Burke about how the companyâ&#x20AC;&#x2122;s hard work has paid off

december 2011 www.dealersupport.co.uk

IDS LEAGUE Burke Office

his year has been a stand out one for Burke Office, with the IDS win the first of its kind for the Northern Ireland dealer. Now in its 35th year, the company focuses on technology and business machines and is looking to establish itself as a leading IT business supplier. MD Michael Burke sees the IDS award as a welcome recognition of the company’s tenacity and unrelenting fight to succeed. “We’ve always regarded business in general as a dogfight or a battle – it’s in my persona, and the business outlook. When the hard times kicked in (and still are), we’ve still got that boxing match going on.” Having enjoyed a promising year in 2010, Burke Office saw its turnover rise to £556k, from £521k in the previous year, with gross margins up by five per cent. Burke attributes the achievement to heady determination, and a constant diversification of the business, neither of which are set to peter out anytime soon. The business is a family one, formed in 1976 by Burke’s father, whose background was in typewriters. Burke was drafted in as a young schoolboy, lending a helping hand with services and repairs. Over the 35 years of trading, the company has grown and diversified in line with the times, driven by Burke and his sister, who officially came on board in the 80s. “It hasn’t been a meteoric success by any means; it’s been more of an incremental and step-by-step success over the years. We are continually evolving, which has been the reason we’ve stayed around this long.” Today, office products only account for about 20% of the business, with the company’s main focus on machines, technology and developing IT services that complement the hardware, with the aim of preparing the company for the future. “I am addicted to change; I get bored very quickly and am always looking for new opportunities,” says Burke. “If something’s not making you money, quite naturally you don’t get enthusiastic about selling it.” The company boasts its own furniture showroom, lists reprographics as an arm of the business and is also branching out into managed print services, with Burke due to embark on a training course to enable them to run an independent service, ensuring the company keeps hold of its profits. “We’ve been offered to go along with manufacturers’ MPS offerings, but I haven’t been entirely comfortable,” he adds.“Plus, we like to keep our revenue in-house, so we’re going to roll out our own plans and make a fortune!” As part of the wider plan to drive IT solutions, Burke recently signed a partnership with document storage and retrieval software company InfoCAP Technologies, which is proving to be successful, having held their first seminar for existing customers a few months back, mixing business with the pleasure of a golf day, quickfire seminars, a meal and prize giving. “Chris Dawes from InfoCap was there talking about the whys and wherefores and [the software] tails perfectly with the type of products we sell, like the copiers,” says Burke. “Most of the people in the room either have a machine of ours or are thinking

of upgrading our devices – it has generated good business for us. We’re going to be holding more seminars every three months now, going forward.” The company, which boasts 3,000-plus square feet of warehouse space at the trendy Gasworks in Belfast, trades to a small business market, reflective of the business economy of Northern Ireland. “There aren’t many big employers with over 50, or even 25 employers here, and our customer base reflects that dynamic: from legal practices, accountancy practices, voluntary organisations, churches, insurance companies – it’s quite a mix,” he says. It’s this small economy that boosts the value of being a member of a dealer group, in this case, Integra. “It adds another layer to the team. Their advice is second to none. You’re out on the periphery in Northern Ireland, and the experience and knowledge they can bring from visiting other dealers in the UK is very beneficial to us… It’s good to have a big brother in the wings.”

I’ll be the first to admit, I think we’ve hidden our light under the bushels for too long One of Burke’s admirable qualities, crucial to being effective in business, is his willingness to take a step back and critique the company weaknesses, of which he states marketing is one they need to work on, having recently employed a PR company to address this. “The IDS win has kicked in at just the right time for us; it worked in beautifully for my goal to raise our profile,” he says. “I’ll be the first to admit, I think we’ve hidden our light under the bushels for too long. We have a lot of qualities but we just haven’t got the word out there and that is a big challenge, and I think it’s a big challenge for a lot of dealers. How do you do it in a cost-effective way? You can have the best people, the best product in the world, but how do you go about telling enough people about it?” Burke is holding his cards close to his chest when it comes to stating his short-, mid- and and long-term goals, as he wouldn’t like to “tempt fate by telling the public”. However, it would appear that the New Year will bring promise for the company, with the launch of a new website, cleverly obtained through a cost-effective reciprocal agreement with a web company, set to represent the business as a “state of the art, technologically innovative company”. Burke also plans to strengthen the salesforce with new recruits to the sales team, and a new, glossy livery on the company vans will be rolled out to build up the company brand for the future. DS

www.dealersupport.co.uk december 2011

FINAL wORD

Are you sitting comfortably? Where do you go if you have some really important work to do?

Andy Whyte, sales and marketing director, Evolution software

he title of this column is probably the most widely used strap line in our industry associated to office furniture. However, I don’t want to talk about furniture. I want to talk about the potential of being comfortable at work. At the recent Office Friendly Dealer Association conference I spoke to dealers about technology in business. One of the questions I was interested to ask was: “Where do you go if you have some really important work to do?” Most people’s response was “somewhere quiet”. I dug a little deeper and it turns out that often “somewhere quiet” is generally somewhere that is not the office. So where do you go? The OFDA dealers mostly went home, some went to coffee shops, and some got their work done on their commute. What struck me as interesting is that these places aren’t necessarily ‘quiet’. I pondered to myself what it was about these places that allowed people to get their best work done. My belief is that people get their best work done in these places not because they are quiet, (trust me, I work from home and with a four-week-old baby, a German Shepherd and Jeremy Kyle on tv, it is not quiet) but because people are at their most comfortable in these places. If being comfortable is the key ingredient in being extra productive then it is no wonder that cutting-edge companies like Google and Facebook have created astonishingly relaxed work environments. The dress codes within their offices are very relaxed, which isn’t always appropriate in our industry, but, where possible, I think there is real merit in making staff feel relaxed and comfortable as ultimately your staff will find the office a more pleasant place to be. Your staff will be off sick less, you’ll retain staff for longer and be able to attract the best quality of staff. Another question I was keen to pose to the OFDA members was whether they block their staff from viewing certain web sites – specifically Facebook, Twitter and YouTube. I was surprised to learn that some dealers do still block these web sites in their offices. YouTube will feature hundreds of beneficial product and sales technique videos, and Facebook and Twitter offer a great opportunity for new business. Plus, with most people having access to these sites on their mobile phones, by blocking them you are encouraging staff to be underhand with their access. Instead, why not open up access on the condition that these sites can only be used during lunch and break times and that to use them each staff member has to invite all of their friends on these sites to ‘like’ and follow your Facebook and Twitter pages. In this process you can see if you have a social media expert within your team. Dealers are always telling me they don’t have time for social media or they can’t afford to recruit someone to manage it. The key to being good with social media is being good at being social. Have you got anyone who is social? It could be anyone from a van driver to someone in the sales admin team. If you make sure your staff are comfortable in work then I guarantee you’ll have a happier, more productive team and, who knows, in a few years’ time we could all be working in our pyjamas with sofa beds for office cubicles! DS

december 2011 www.dealersupport.co.uk

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december 2011

NEWS INSPIRING BUSINESS SOLUTIONS FOR DEALERS

BOSS Event Raises £1,000 For Ben Fund

ast week, 100 industry leaders gathered for the BOSS East Anglia Networking event, raising £1,000 for the BOSS benevolent fund in the process. The event, hosted by BOSS East Anglia chairman Luke Chapman at the De Vere University Arms, Cambridge, offered manufacturers, suppliers, wholesalers and BP Group and BOSS federation representatives opportunity to network in a relaxed and enjoyable environment. Saffron Walden-based dealer Harts (W Hart and Son) was presented with a special award from BOSS, in recognition of its 175th anniversary. The award was presented by BOSS chief executive Michael Gardner, and received by Martin Turnbull from Harts. Ron Wotherspoon raised a toast to the company’s impressive history, dating back to 1836. A raffle was part of the charity drive, with the help of sponsors: Deflect-o LLC; Energizer UK; Modrec International; Printciples; Sigel; Unilever Food Solutions; and VOW, which all kindly donated prizes. Master of ceremonies Howard Tloosty conducted the affair, and entertainment was supplied by comedian John Martin. Planned future events include a golf day in April and a race meeting at Newmarket on 20 July 2012.

A timely award: BOSS’s Michael Gardner presents Martin Turnbull of Harts with 175th anniversary award

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DEALER SUPPORT NEWS

BIG boost for ofda member

ffice Friendly member Yorkshire Office Contracts is gearing up for a happy New Year after impressive growth in 2011. The Wakefield-based office products reseller has recorded an 18% increase from 2010 to boost its turnover to £1.5m – 85% of which accounts for office products, and the remainder for office furniture. Owner and MD John Kaye has recruited two more members of staff – both promising youngsters on the national Apprenticeships scheme – and moved his now 12-strong team into a new 3000 sq ft home, twice the size of their old one. Kaye, who has spent 28 years in the industry, has plans to further expand the company he founded in 1998 but believes his current, proactive business model will stand his staff in good stead in 2012. “Most of our growth stems from the hard work we put in 18 months ago, going back to basics, growing our customer base and driving sales internally,” he said. “I expect the economy to prove even tougher in the next 12 months but I believe we’ve put a structure in place to drive us forward even further. “Acquisition is firmly in the business plan, if we can find the right potential company, but we’re not dependent on that for growth – we already have a strong platform in place.” [For more information about Yorkshire Office Contracts, visit www.officecontracts.com.]

Winning Synergy Conference

picers’ 2011 Synergy Conference held at Wyboston Lakes in Bedfordshire last month was heralded a “big success” by the wholesaler. The afternoon allowed the Spicers senior team to update Synergy members on the benefits of Synergy, and announce some exclusive initiatives. During the afternoon the delegates attended four interactive business sessions from external experts on social media planning, credit management, developing your business through recruitment and training, and the benefits of gold membership. Jeanette Bresitz, director of marketing services at Spicers, said: “We had a great turnout of dealers and a really positive response to our introduction of business sessions. They, once again, helped us give more support to Synergy dealers and increase the benefits they enjoy as a member.”

After a successful conference afternoon delegates gathered for the Synergy Awards dinner during the evening with entertainment from the talented, up-and-coming comedian Ian Moore. Spicers recognised dealers for their achievements in 2011 during the awards presentation hosted by MD Alan Ball and sales director Tom Rodda. Synergy 2011 Award Winners: • Dealer Excellence Award (t/over over £1m) – JKL Solutions • Dealer Excellence Award (t/over under £1m) – Coast to Coast Direct • Growth through Product Initiatives, Workplace Solutions -– Professional Office Supplies • Growth through Product Initiatives, Business Machines – Zen Office • Growth through Web/Social Media – Wordflow • Proactive Dealer in Customer Care – Amersham Business Supplies • Spicers Academy Most Proactive Dealer – Just Office

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in brief ... TDMaverick

new tech services head for integra

ntegra has appointed Margaret Reilly as its new technical services director. Reilly, previously head of technology services at the dealer group, has been with Integra for 11 years and was given the appointment as part of the dealer group’s expansion into IT support for its members. MD Aidan McDonough said in a statement: “Margaret is a key driver in the development of our technology services, which not only incorporate systems and product maintenance but also e-commerce.” Reilly is to head up the technical services team at Integra’s head office to provide both on- and off-site support to dealers. Commenting on the announcement, Reilly said: “Technology is developing at a phenomenal rate and my appointment reflects Integra’s commitment to embrace these changes. [Next year] will see Integra’s service offering expand with the launch of applications, services and training to enhance our members’ businesses. I look forward to a challenging year.”

Sussex printer treats itself to £250k Duplo gift

ussex-based printer Footprint has completed a £250,000 spend with the purchase of a tailored Duplo DC-645e finishing machine. Footprint’s unique requirements led to Duplo tailoring the configuration to improve performance for litho production. The unique digital SCC (slit/cut/crease) unit now sits between the digital sheet feeder and

the collator, increasing the speed of traditional collation. Footprint partner Matt Mitchell commented: “We are delighted with the support we have had from Duplo. Our business is fairly unique, and Duplo’s willingness to adapt to our needs was a great help. As the purchase was made on my wife and business partner Amber’s birthday, Duplo was even kind enough to gift wrap it for me.”

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AV distributor Maverick has made two new additions to its sales teams for the UK and Ireland, appointing Brian Saunders as head of its sales desk and David Coneley as a dedicated sales executive for Ireland. In addition, Martina Nestrojova joins as category manager for projectors and large format displays. Sid Stanley, head of Maverick UK and Ireland, said: “These appointments are a further demonstration of our commitment to our reseller partners and they join an already strong team who are driving our business forward.”

BOSS Codes

The BOSS Federation Standardisation and Technical Committee has released the new Industry Standard Product Classification (ISPC), or ‘BOSS Codes’, for use in the January 2012 product files. Copies of the new file can be downloaded from the BOSS website. Dealer groups, dealers and back office system suppliers need be aware that databases and historical movements must be updated at the January 2012 update, otherwise customer service levels and websites could be severely impacted.

Q-Connect

VOW’s own brand, Q-Connect, will be the official club sponsor of the Huddersfield Giants for the 2012/2013 season, creating national multi-platform media coverage for the brand. Sponsorship of the rugby team will create increased awareness of the Q-Connect brand via TV coverage and local and national press, improving the profile of the brand and subsequently creating end-user demand for supporting VOW resellers.

DEALER SUPPORT NEWS

Integra in the Spotlight T

he Integra Spotlight 2011 National Conference was heralded a “resounding success” by the dealer group, with over 220 delegates coming together under one roof for a remarkable line-up of business sessions, guest speakers, networking, luxury dining, awards and entertainment. Integra MD Aidan McDonough opened the day’s programme, which took place in idyllic surroundings at the Forest of Arden Hotel, Birmingham. Spicers MD Alan Ball took to the stage to address the industry and offer direction and inspiration for dealers, followed by a presentation from enterprise expert Professor Roger Mumby-Croft. The workshop sessions included specialist retail and IT forums, alongside sessions on winning large accounts, delivered by P1 training’s Gary Naphtali, offering an interesting insight into the ways in which members can maximise business. P1 Training’s Michelle Naphtali offered some eye-opening statistics and insider tips on how to control profit margins. All of the workshops were well-received and members walked away with a wealth of knowledge and hints to impact their businesses. The Spotlight supplier exhibition saw 55 suppliers making a great effort to come along to support the group and get into the spirit of the event with Hollywood-themed stands. VOW took home the prize for the best dressed supplier award with Superwoman collecting the prize.

Award- winning speaker Adrian Webster took to the stage to give dealers something to think about for the evening, with a hardhitting motivational presentation. The group has issued a heartfelt thank you to everyone who donated to the Atlantic Dash fundraising campaign – over £2,500 was raised on the night, which will go to three worthy charities; The Fire Fighters Charity, Breast Cancer Care and Help for Heroes. The charity drive was of particular potence to the Integra team, as marketing director Sian Haskell’s husband is due to embark on a rowing trip across the Atlantic in aid of the charities. Guests were welcomed to the evening drinks reception by Hollywood legends Laurel and Hardy. The gala dinner was served in a starlit room, and was followed by the group’s supplier and member of the year awards, announced by finance director Rob Jenkins and presented by Mc Donough. Star of channel 4’s 8 out of 10 Cats, and presenter of Frank Skinners’ Radio Show, Alun Cochrane, provided some hilarious after dinner entertainment. The night was rounded off in style by crooning trio, Legend of Swing, after which the dancefloor was cleared for the more energetic night-owls of the group, who took to the stage with some remarkable dance moves. Everyone at Integra “would like to thank those members that came along on the day and evening to make it such a memorable event”.

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in brief ... SUPerSTaT cHriSTMaS

anD THe WinnerS are... MANUFACTURER OF THE YEAR Brother WHOLESALER / DISTRIBUTOR OF THE YEAR Antalis McNaughton INITIATIVE MEMBER OF THE YEAR Alliance Division Braley Business Systems Aspire Division AK Products COG Division Squire International Director Division Professional Business Systems Gold Division SOS Office Supplies

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Superstat and Newell Rubbermaid have announced the first wave of winners of their joint ‘12 Weeks of Christmas’ promotion. Members have been competing to increase their spend on products to be in with a chance of winning a host of weekly prizes put up by the Dymo team, with the overall winner going on to win an iPad 2. So far six dealer members have won prizes ranging from £150 worth of John Lewis vouchers, to pamper days, travel vouchers and luxury hampers.

OFFice cLUB

Dealer group Office Club has announced the venue for its 2012 conference as Celtic Manor Resort in Newport Wales. The dealer group is to celebrate its 20th anniversary next year to coincide with the 2012 annual conference on the weekend of 8 and 9 September.

MiDWicH

Midwich’s True Colours division has launched a specialist online AV training programme for resellers from major vendor Atlona. The Atlona academy consists of a series of regional and online training events and programmes where industry experts will provide the company’s channel partners with time- and overhead-savings tips and an insight into what is coming in AV technology. “There is too much confusion for end-users in today’s consumer electronics market,” said Atlona CEO Ilya Khayn. “By educating our dealers, distributors, and reps, we are also educating their customers, helping to ensure that the money they invest in AV technology is well-spent.”

DEALER SUPPORT NEWS

Westcoast focuses on education

estcoast has strengthened its position in the education market with its partnerships with Microsoft and Panasonic, and the distributor is encouraging resellers to do the same. Having recently won a Microsoft gold standard, the IT distributor ran an incentive scheme to help ensure that all resellers buying Microsoft education licencing gain Microsoft Authorised Education Reseller (AER) status and receive £50 in return. The benefits of the Microsoft AER initiative to the reseller include online training programmes and access to Microsoft’s academic pricing. Ben Feurtado, Westcoast’s Microsoft business manager said: “The purpose of this incentive is not to recruit new AERs, but to develop better AERs, who would work with Westcoast and Microsoft to improve and grow their Microsoft education business.” Elsewhere, the company announced a partnership with Panasonic to offer resellers access to a range of next generation interactive whiteboards. Westcoast will be providing Panasonic

interactive visual communication systems along with software solutions, suitable for commercial applications including training, education and control centres. This is an “exciting” time for Panasonic and Westcoast as the possibility of expansion beyond the now matured education market sector becomes a reality with the combined power of both organisations.

Steljes recruits new BDM

echnology distributor Steljes has announced the appointment of Ryan Reeves as business development manager. Reeves comes to Steljes with extensive sales and account management experience. Prior to joining Steljes, he worked for a number of years as a senior sales executive at MeetingZone, a telephone and video conferencing company, and at RM as an account manager. In his new position, Reeves will be primarily responsible for Steljes’s growth in the SME market. Commenting on his appointment, Reeves said: “I see my new role as the perfect opportunity for me to combine my previous experience in account management with my experience in selling communications solutions. I am looking forward to helping Steljes continue its success in the SME market.” The appointment follows a restructure of the company earlier this year to focus on the corporate market while maintaining its position as a distributor for the education sector. The company recently opened new offices in Warrington to meet rising demand for interactive technology in the north west area. The new offices are located in the Breeze office complex in the Birchwood area of Warrington.

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lueSky Systems Solutions, back office systems supplier for the office products industry, has announced that commercial director Derek Blood is to retire from the business at the end of December. For the last three-and-a-half years Blood has been a force behind BlueSky’s growth, seeing the number of dealers using the Horizon back-office system double from 80 to 160, and the staff at BlueSky grow from nine people to 20, and he has also actively sought the involvement of dealers in the development of Horizon by introducing

a bi-annual conference and holding dealer workshops. Blood’s career has spanned more than 40 years in the office products trade, beginning in 1970 when he joined John Dickinson as a sales clerk and then at The DRG Group, Sellotape Products, John Heath, Kingfield Heath/VOW, and finally BlueSky Systems Solutions. Blood said: “Over the years I have made many friends in this fantastic industry.” BlueSky MD Adrian Billingham said: “Derek’s contribution to the success of BlueSky has been significant and I wish him a long, happy and healthy retirement.”

VOW tackles MPS and profit margins

his month, VOW has announced its MPS solution for resellers and the launch of its VOW+contractManager software package, with the potential to increase reseller margins by two per cent. VOW has partnered with M2 for its contracted MPS solutions programme to include a three-tiered solution for end-users and including full training, covering all aspects of MPS, from market and industry information, through to technical and sales training, and support. The official launch to VOW customers

will commence with a series of regional roadshows during December. VOW has also announced the forthcoming launch of its VOW+ contractManager service in February 2012, designed to allow resellers to effectively manage contract business by automating the laborious task of managing margin at product level for each individual customer. The software has been developed over the last two years and is currently being piloted, with the official launch at the 2012 VOW+ Partner event on 3 February in Solihull.

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BlueSky’s Derek Blood To Retire

Acquisition is firmly in the business plan, if we can find the right potential company, but we’re not dependent on that for growth – we already have a strong platform in place John Kaye MD, Yorkshire Office Contracts

DEALER SUPPORT NEWS

Synaxon award caps top year

T dealer group Synaxon has been named Channel Services Provider of the Year 2011 at the prestigious IT Channel Awards ceremony in London. The eagerly-contested Channel Awards are organised and run by the publishers of IT trade publication CRN. Synaxon was selected as the winner by an independent panel of judges from a shortlist of six channel services organisations, all of which are highly regarded for their service levels and expertise. The Channel Services Provider of the Year Award is presented to the organisation that has delivered the highest levels of service and support to resellers, distributors and vendors throughout the IT channel. Synaxon, which is the first dealer group to win a Channel Award, was able to demonstrate how it has actively assisted resellers in doing more business and increasing their

profitability. MD Derek Jones said: “This is a great reward and justification for all the hard work, effort and commitment that everyone at Synaxon has made over the past year. Synaxon has raised the bar in terms of what dealer groups are expected to deliver for their members. “This award is also clear recognition that Synaxon has delivered a new business model to the UK market. We are not a traditional buying group and our services clearly differentiate us from any other dealer organisation. Synaxon is truly a provider of value add services to the UK’s technology channel”. The award caps a successful year for Synaxon UK, which has grown its membership significantly and increased the number of suppliers it works with to more than 50, and staged its first UK conference, which attracted 40 exhibitors and 300 attendees.

ADVERTORIAL

Premier expands Evolution range

remier Paper Group, the UK’s largest independent paper merchant, has further bolstered its Evolution range of recycled paper with the launch of three new premium recycled office papers. Evolution Business, Evolution Everyday and Evolution Value are produced from post-consumer waste with the Business and Everyday grades certified to FSC standards. The high quality, extra white office papers are suitable for a wide range of everyday output and offer the same printability as nonrecycled papers. Produced from recycled post-consumer waste using low CO2 production methods, environmental performance and product quality is strictly controlled throughout the paper-making process. The papers are produced in mills that have been awarded both the ISO 9001 quality standard and ISO 14001 environmental management accreditation. In addition, by working with the leading environmental charity The Woodland Trust, the CO2 emissions from the distribution of Evolution have been calculated and an equivalent amount of CO2

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will be captured by planting and conserving native woodland right here in the UK. “Premier currently supplies 180,000 tonnes of paper a year to a diverse customer base with an intrinsic requirement to meet stringent CSR and sustainability policies,” says group marketing director David Jones. “We have launched Evolution recycled office papers in direct response to customer demand for reliable and ongoing range of business-quality papers that offer the highest green credentials, with no compromise on quality, and which will help to reduce their environmental footprint.” ISO-accredited CIE brightness ratings and surface smoothness gives higher contrast, crisper text and a clean background for more vivid images. Together with excellent archival properties, this makes Evolution office papers an ideal solution for environmentallyconscious organisations. The new range of office papers is an addition to Premier’s existing 240-strong recycled paper portfolio for graphic designers, which includes satin, silk, gloss and uncoated media, in a variety of weights; with recycled content varying from 25% to 100%.

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