Opi 274 november b by OPI

BIG INTERVIEW

Connecting the

business products world

Ian Wist & Mike Maggio, TriMega November 2017

INSIDE THIS ISSUE Office Depot on acquisition trail l Fuji Xerox scandal continues l OP wholesalers: still the linchpin? l MRO stalwart: Grainger l Opportunities in PPE and safety l In focus: imaging supplies and MPS l The word from Insights-X l GDPR: on your radar?

CONTENTS 14 Big Interview Ian Wist and Mike Maggio give their views on the US dealer channel and the industry at large 20 Hot Topic Box shifter or strategic partner: the role of the wholesaler today 24 Spotlight Interview with MRO specialist Grainger on its business model, evolution and go-to-market strategy 27 Category Update Opportunities abound in the PPE and safety sector, but there are some obstacles to be overcome 30 Advertorial Protect what’s important – FireKing’s motto and what the company is all about 32 Category Update Facing many challenges, imaging supplies and MPS is still a good space to be in

Big Interview: Ian Wist & Mike Maggio, TriMega

From the threat of Amazon, the trouble with collaboration and the state of the industry to specific TriMega – and dealer – priorities, Ian Wist and Mike Maggio pulled no punches when they talked to OPI’s Steve Hilleard at the recent EPIC event HOT TOPIC: STILL THE LINCHPIN?

40 How to... ...minimise the threat of a cyberattack 43 Review Fellowes celebrates its 100th anniversary in style 45 Review Spicers’ Brilliant Partner programme revamped

REGULARS 5 Comment 6 News 46 Generation Game Emma Pevy 48 5 minutes with... Georg Bettin 50 Final Word Rolf Bonsack

November 2017

At the OPI European Forum held in June of this year, a panel on supply chain efficiency provided food for thought on a number of issues that participating wholesalers agreed need to be addressed. Chiefly, these included pricing clarity, value-add services and cost to resellers, limited SKUs, and quality of content and data supplied to dealers. The good news is this tallies with what the majority of manufacturers, resellers and the independent dealer community that OPI spoke to would also like to see reformed.

37 Feature GDPR is coming – are you fully prepared?

COMMENT The OPI team EDITORIAL Editor Heike Dieckmann +44 (0)20 7841 2950 heike.dieckmann@opi.net Deputy Editor Michelle Sturman +44 (0)20 7841 2942 michelle.sturman@opi.net Reporter Joshua Allsopp +44 (0)20 7841 2952 joshua.allsopp@opi.net OPI Special Correspondent Andy Braithwaite +33 4 32 62 71 07 andy.braithwaite@opi.net Freelance Contributor David Holes david.holes@opi.net

A sign of things to come

ollaboration – and the need for it – has surely been the theme of 2017. Will consoliation be the hot topic of next year? It’s only November, so it might be a little premature to consult the 2018 crystall ball, but the signs are certainly pointing that way. Our news pages (from page 6) lead with perhaps the biggest acquisition story of this month – Office Depot buying IT and tech services firm CompuCom and US dealer Complete Office Solutions. Are either of these purchases a surprise? Well, just going back to Depot’s recent Q2 earnings call, CEO Gerry Smith did refer to aggressive growth plans – organic and inorganic – and there’s also the much talked about push into the mid-market which can now finally become more of a reality through Complete. Does it all tally with an expected focus on retail? Not really or at least not yet.

SALES & MARKETING VP – Continental Europe, Middle East and Africa Ewan Dickson +44 (0)20 7841 2954 ewan.dickson@opi.net VP – North America and UK Chris Turness +44 (0)20 7841 2953 chris.turness@opi.net Director of Growth Services Jeremy Hughes +44 (0)7807 810617 jeremy.hughes@opi.net Digital Marketing Manager Aurora Enghis +44 (0)20 7841 2959 aurora.enghis@opi.net

EVENTS Events Manager Lisa Haywood +44 (0)20 7841 2941 events@opi.net

DESIGN & FINANCE Studio Joel Mitchell +44 (0)20 7841 2943 joel.mitchell@opi.net Finance Kelly Hilleard +44 (0)20 7841 2956 kelly.hilleard@opi.net

PUBLISHERS CEO Steve Hilleard +44 (0)20 7841 2940 steve.hilleard@opi.net Director Janet Bell +44 (0)20 7841 2941 janet.bell@opi.net Executive Assistant Debbie Garrand +44 (7718) 660249 debbie.garrand@opi.net

There’s definitely a sense that our industry could be looking quite different next year Elsewhere, the sale of Switzerland’s Office World and iba businesses to Austrian MTH Retail Group caused a stir in Europe. In Australia, meanwhile, the wait is nearly over – 16 November is the date – for a decision by consumer watchdog ACCC on the acquisition of OfficeMax by Complete Office Supplies and indeed the final ruling on the proposed merger of OfficeMax and Winc (formerly Staples Australia and New Zealand). Scale and the need to diversify is becoming ever more important, a fact that is also evident from the string of acquisitions we’ve seen in the manufacturing sector (Amax, Smead, Katun, 3M...) There’s definitely a sense that our industry could be looking quite different next year, not least in the wholesale sector where some of the main operators are facing serious questions and challenges (see our Hot Topic, page 20). Some things are a little more certain for next year. That GDPR is coming, for example, and that companies need to be prepared for it (see page 37). Or that there are some remarkable opportunities in the PPE and safety sector (page 27) and despite many challenges, also still in the imaging supplies and MPS category (page 32). Next month, we’ll be looking at the vast topic of health and well-being, so stay tuned HEIKE DIECKMANN, EDITOR for that and have a good November.

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Connecting the

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November 2017

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NEWS

Analysis:

Thinking outside the (big) box Office Depot makes two acquisitions that point the company in a B2B direction

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In the past few weeks, Office Depot in the US has made two significant acquisitions which give pointers to its strategic direction – and they have come as something of a surprise. With industry speculation rife that it would acquire Staples’ US retail store network once Staples went private (see OPI September 2017, page 8), Depot has made moves in two other areas: tech services and the B2B mid-market. The largest and most transformative of these deals is the $1 billion acquisition of IT and tech services firm CompuCom which is expected to close by the end of this year (see ‘Depot’s $1 billion IT move’, page 7). No less interesting than the CompuCom purchase was the news that Depot had acquired one of the largest independent office supplies dealers in the US, snapping up $150 million Complete Office Solutions, effective 2 October, for an undisclosed sum. Complete – founded in 2003 by former Corporate Express Australia execs Ted Nark and Rick Israel – has grown from sales of $1 million in its first year to about $150 million through a combination of acquisitions and organic growth. It employs more than 300 people and operates out of three divisions in Washington state, Wisconsin and California, all of which have been acquired by Office Depot.

NO PLANS TO INTEGRATE Providing some background to the deal, Nark said he and his partners hadn’t been actively marketing the business, but received an offer from Office Depot that they felt was in the best interests of employees and customers. He declined to comment on whether an approach had been made by Staples as well – which has been looking to buy more independent dealers – or indeed if any acquisition offers had been received from other independent dealers. Interestingly, Nark confirmed that Office Depot would run Complete independently, keeping its name, staff and distribution facilities – which are being leased by Depot. Apparently, there are no plans at this stage to integrate the dealership into Depot’s Business

Solutions Division (BSD), but instead it will operate as a standalone unit focused on mid-market customers. While Nark himself will no longer be involved in the business, Israel and the senior management team – Dave Patterson (Washington state), Ron Beam (Wisconsin) and Ted Walter (California) – are all staying on, and no change is being made to things such as the business model and sales reps’ commission plans. “This company differentiates us among competitors because of the strong ties it has established within the local community, as well as the attractive customer base and diverse offering that includes significant penetration in cleaning, breakroom and furniture,” said BSD President Steve Calkins in an official statement. “We intend for Complete Office to stay true to the local relationships for which it’s known while adding the power of our national brand to catapult it to further growth.” We often hear the term ‘business as usual’ thrown around somewhat haphazardly when acquisitions of this sort are made, but this may be one of those occasions when it actually holds true. Nevertheless, there will be ramifications for the independent dealer channel: Complete was a first-call Essendant dealer

We often hear the term ‘business as usual’ thrown around somewhat haphazardly when acquisitions of this sort are made

and a member of the Pinnacle Affiliates network, so the impact of the acquisition will undoubtedly be felt at those two organisations. CAUTIONARY TALES Much of the talk of dealer acquisitions over the past 12 months has involved Staples, which publicly stated after its attempt to acquire Office Depot failed in 2016 that it was looking to grow externally in the mid-market segment. As Staples goes through internal changes following its own acquisition by private equity firm Sycamore, Office Depot has opportunistically stepped in and picked up one of the largest and fastest-growing dealers in the US; it’s another sign of Depot’s rejuvenation under new CEO Gerry Smith. The fact that the company is planning on running Complete separately is noteworthy; there have been many tales of botched acquisitions by the big boxes over the years that rip the soul out of local dealers. This way, Depot is hoping to get the best of both worlds, combining its purchasing power and national brand with the entrepreneurial spirit and local touchpoints of an independent dealer. It will now be interesting to see how Depot approaches developing Complete. Between the dealer’s eastern-most Wisconsin base and its operations in the states of Washington and California lies a vast expanse of mostly thinly populated states. If Depot intends to “catapult” Complete to further growth, as it says it will, then an aggressive roll-up of larger dealers in these markets might be one way of achieving that, using the experience of a management team that has a strong track record of successful acquisitions.

which doesn’t currently have an IT services offering, so this diversification could be vital if it is to keep the online giant at bay. The deal also brings to mind a similar move by Staples which launched its own IT division in 2010. Staples Technology Solutions, as it is called, struggled to take off as Staples failed to convince customers of its ‘credibility’ as anything other than an office supplies retailer. It seems Depot is aiming to avoid this pitfall by snapping up an already well-established player which has the scale and expertise needed to be taken seriously. CompuCom certainly brings things to the next level in terms of big-box tech solutions. RETAIL MASH-UP UNLIKELY The CompuCom acquisition does throw into doubt the likelihood of Office Depot acquiring Staples’ 1,200 US stores – which, frankly, was a strategy where it was difficult to see the long-term benefits. While there were retail-centric messages coming out of Boca Raton several months ago – when Depot was seemingly in negotiations with Staples – now the talk is of “pivoting” the company away from the traditional retail model and into a broader business services and tech products omnichannel ‘platform’. This still includes retail, but Office Depot will in the short term have its hands full integrating the CompuCom Tech-Zone kiosks in its stores and developing other areas where it can combine tech services and supplies distribution. The last thing it needs is the distraction of what would almost certainly be a disruptive retail mash-up with Staples.

November 2017

Office Depot has called its acquisition of IT provider CompuCom Systems – a company that procures, installs and manages the lifecycle of hardware and software for businesses – the first step in its strategy to become a business services platform. The purchase looks to be a key part of Depot’s transformation as it shifts focus away from retail and transactional products, and expands into the more valuable workplace services. Bringing an IT provider on board opens up a fragmented $25 billion market and makes it the first company in the US to provide a nationwide network of enterprise-level tech products and services. The proposed model also fits well with its omnichannel platform, particularly with its last-mile footprint. CompuCom’s established SMB offering Tech-Zone is to be placed within some of Depot’s 1,400 retail locations. This is expected to improve per-store profitability as added services sales and foot traffic increase. “Technology is the office supply of the future,” said Office Depot CEO Gerry Smith, who joined the company earlier this year from tech giant Lenovo (see Top 100, OPI October 2017, page 30). His appointment in February was followed by a number of other additions to the management team, all with strong IT backgrounds, so the direction of his strategy seems quite clear. Smith said the combination with CompuCom’s enterprise IT services gives Depot the credibility and scale to build a sustainable platform and stand apart from the competition. Indeed, one of Depot’s biggest rivals right now is Amazon,

NEWS

DEPOT’S $1 BILLION IT MOVE

NEWS

Staples Europe appoints head

Scandal-hit Fuji Xerox NZ slapped with suspension Following an accounting scandal that first emerged back in June, Fuji Xerox New Zealand continues to be in trouble and was recently issued with a formal suspension by New Zealand’s government procurement ministry. It had been under ‘voluntary suspension’ after its parent company began taking legal action against some former executives of the subsidiary who it believes were involved in the scandal. But the Ministry of Business, Innovation and Employment (MBIE) has decided to penalise the group, meaning the suspension is no longer voluntary. Effective immediately, it prevents Fuji Xerox NZ from signing up new business. It can also no longer supply printers and copiers to public sector agencies. However, it was indicated that the ban could be lifted if it met certain requirements, although exactly what these were was not disclosed by the MBIE. It is unclear whether the ban is a result of an investigation into the proposed OfficeMax/Staples merger by New Zealand’s consumer watchdog, the Commerce Commission, which ordered the MBIE to hand over documents including reports on Fuji Xerox. The ban came just days after the company appointed former MBIE executive Peter Thomas as Managing Director in the hope of quickly recovering from the accounting scandal. That now seems unlikely. Controversially, Thomas previously held the position of Deputy Chief Executive of Corporate Services for the MBIE. This has led some – including leader of the NZ First party Winston Peters – to question whether there was a conflict of interest regarding his role. Fuji Xerox was awarded multimillion dollar contracts two months after Thomas joined the company. However, the MBIE noted that he had no role in the process or decision-making and left shortly after the deal was decided.

Staples Solutions has looked to a former tech boss to head up its European business. Dolph Westerbos has been appointed CEO, effective 1 November, and joins from global technology distributor Westcon Group where he held the same role. Prior to Westcon, Westerbos held executive management positions at IT giant Dell, as well as logistics groups Brambles-CHEP and ModusLink. He takes the helm almost a year after Staples’ European operations split from parent company Staples Inc following its sale to private equity firm Cerberus Capital Management.

Fellowes partners with Vanguard

Office supplies vendor Fellowes has formed a new strategic commercial partnership with US rep firm Vanguard Sales Group which was formed from the recent merger of the Godfrey and WG Atherton rep groups and is headed by Nick Aronis. Effective 1 November, Vanguard will cover the entire western region including the mountain states and represent all Fellowes product categories in the independent dealer and superstore channels. The partnership is expected to drive Fellowes’ new ‘wellness solutions’ in the expansive line of sit-stand, air purification and workspace management products, while maintaining growth across its core categories (see also ‘Fellowes celebrates 100 years’, page 43).

20 www.opi.net

BILLION

NUMBER OF ACTIVE NETWORKCONNECTED DEVICES BY 2020

SP Richards to phase out duplicate SKUs SP Richards (SPR) is to phase out its duplicate Sparco SKUs that have an exact match under the Business Source banner. SPR will then allow all resellers access to the brand throughout the wholesale channel, which has until now been exclusive to independent dealers. 3M expands PPE offering 3M has acquired personal protection equipment vendor Scott Safety for around $2 billion, adding its range of breathing apparatus, gas detectors and other safety devices to its portfolio. Scott Safety reported sales of $575 million for the 12 months ended 30 September 2017. EPIC Business Essentials renews National IPA contract The Independent Stationers/ TriMega joint venture EPIC Business Essentials has renewed its contract with US intergovernmental purchasing alliance National IPA (formerly TCPN). It now has an expiration date of February 2019, completing the fourth year of a possible five-year deal with the cooperative.

What’s GDPR?

14%

We are working on it 71%

About to get started We are fully prepared and compliant

(See the GDPR feature on pages 37-38 for more information)

Office World and iba sold Switzerland-based reseller iba and multichannel operator Office World – also known as OfficeWorld iba Group (OWiba) – have been sold to Austria-based MTH Retail Group. The move opens up the Swiss business supplies market for MTH, which currently operates 770 retail shops under various brands across Austria and Germany. MTH will take on all of OWiba’s 400 employees and add Office World’s 24 retail locations to its own network, with scope for further expansion. The company’s Group CEO Christa Furter will also remain in place. She said: “Together with all our colleagues we will continue to make every effort to meet the needs of our Swiss customers.” Beat Zahnd, one of the senior figures in the Migros cooperative, added: “We decided that OWiba needs to benefit from economies of scale in order to be successful in the future.” In his comment, MTH Retail Group CEO Martin Waldhäusl alluded to challenges, particularly at Office World, that will be addressed as part of the new ownership. He said: “We need to put Office World back on a growth trajectory which also includes the expansion of its Swiss retail network.” He also mentioned that iba and its print services subsidiary Tramondi will play a leading role in MTH’s group-wide B2B business going forward. Financial details of the transaction were not disclosed and the deal is still subject to approval by the Austrian competition authorities.

WHO’S WHO IN OP

Top 100 - NEW ENTRY: Michael Voll, CEO, Despec Nordic Michael Voll is CEO of Denmark-based IT and OP wholesaler Despec Nordic. A supplies specialist and entrepreneur, he heads up the group from its base in Lynge, just north of the capital Copenhagen. Voll has more than 25 years of experience in the industry and has been with Despec since its inception in 1992. In 2006, he also became a major shareholder, following a management buyout. The company now has around 170 employees in Denmark, Norway, Sweden, Iceland and Finland. Despec focuses on five major product categories: IT supplies and paper; IT accessories; ergonomics; printers and office machines; and office supplies. The OP segment only dates back to 2013 and was strengthened by the acquisition of Swedish OP wholesaler Büngers in 2015. It is now one of the company’s core growth areas. Despec maintains its strict business model, concentrating solely on distribution to dealers in the Nordic region. At the start of this year, the wholesaler launched Prisume, an online reseller platform for the printing market. At the time, Voll said the group had wanted to build a multi-vendor solution to serve second tier resellers. Prisume enables traditional transaction-based print and supplies dealers to offer an automated service model for their end-customers.

November 2017

Smead buys U Brands stake US manufacturer Smead has announced a strategic investment in California-based stationery and consumer products company U Brands. Upon completion, Smead will have a controlling interest in the organisation, with the owners of U Brands retaining an equity stake and leadership positions in the business. Existing U Brands operations will continue to be located in California and the team will remain intact.

14%

NEWS

Amax expands LED reach Bostitch and PaperPro brand owner Amax has acquired Vision Global Media Group’s LED lighting business. The combined entity will be based out of the Amax headquarters in East Greenwich, (RI) and will add over 40 new products to Amax’s lighting division. Sales and marketing will be based in both the US and Toronto, Canada. Financial details of the deal were not disclosed.

How prepared is your company for GDPR?

IN BRIEF

NEWS

Morris leaves TriMega

IN BRIEF

TriMega has announced the departure of EVP of Marketing Michael Morris. Morris has been with the US dealer group since 2003, starting out as Director of Marketing. TriMega Chairman Ian Wist commented: “For the past 14 years Michael has been the heart and soul of TriMega Purchasing Association. His contributions and his skills are recognised by members and supplier partners alike. We wish Michael the best as he embarks on the next phase of his professional career.” At the time of going to press, TriMega had given no further details regarding his departure.

Alibaba launches tech research labs Alibaba has launched a global research programme called the Alibaba DAMO Academy. The company expects to invest more than $15 billion in developing new technologies over the next three years and is opening seven research labs across the world, including facilities in China, the US and Russia. Torraspapel shifts Spanish headquarters Lecta group-owned speciality paper manufacturer Torraspapel is transferring its corporate seat from Barcelona to Madrid. The decision is a result of the uncertainty surrounding the current political situation in Catalonia.

Schultz honoured at City of Hope gala The US business products industry gathered at Chicago’s Navy Pier on 5 October to honour GOJO’s Steve Schultz who collected the 2017 City of Hope Spirit of Life award. As a member of the City of Hope National Business Products Council, Schultz spearheaded this year’s Saving Lives Hand in Hand campaign, helping to raise a record-breaking $14.8 million for the California-based clinic and medical research institute. Next year’s honouree is Rick Toppin, President/CEO of SP Richards, and the 2018 Spirit of Life gala dinner will be held on 13 September, again at the historic Navy Pier.

43% www.opi.net

OF MILLENNIALS HAVE NEVER HANDWRITTEN A LETTER

5 seconds HOW LONG IT TAKES FOR A BOT TO COMPROMISE A SMART DEVICE ONCE CONNECTED

Big tax bill for Amazon The European Commission (EC) could slap Amazon with a bill for hundreds of millions of euros in back taxes following a three-year investigation into an alleged ‘sweetheart’ deal with Luxembourg, which the EC believes constituted state aid. Interestingly, the deal was struck in 2003 when EC President Jean-Claude Juncker was Prime Minister of Luxembourg. Faber-Castell Count bows out Count Andreas von Faber-Castell is retiring as Managing Director of writing instruments maker Faber-Castell Australia. The Count took over management in 1992 and was the driving force behind its best-selling Connector Pen. Diversey expands into UK Bain Capital Private Equity – the owner of jan/san vendor Diversey – is expanding its reach in Europe. It has agreed a final offer for Zenith Hygiene Group, a UK-based cleaning products manufacturer which generated net sales of £67 million ($88 million) in FY2017. The transaction is expected to be completed by Q1 2018, subject to customary antitrust clearance. Financial details were not disclosed.

@AKB13870 More congrats to Geoffrey Betts & Stewart Superior on their @stationerscomms excellence award!

@pescami I doubt there’s a COOL way to wear a WB Mason outfit. But still.

@JoeIsJustOK 2 years ago this month I started saving all my used staples. That’s not weird right? #CubicleLife #OfficeLife #Staples Follow us on Twitter @opinews

SOFEA to launch rating system The Sustainable Office European Association (SOFEA) is all set to go live with its industry-wide sustainability rating system in December. The organisation met in Düsseldorf, Germany, at the end of September to celebrate the completion of the groundwork for its ambitious project. Over 40 leading players from the office products sector – including members and non-members – joined the group for its annual assembly and to share their views. Attendees also included representatives from the scientific community and European regulators. The key message of the day was that the foundations had now been laid, but more support was needed from the industry to ensure the success of a European system whereby products can be rated according to their environmental performance using an A-E certification; members are also able to share validated data via an online platform. SOFEA further revealed the next stages of development which included boosting membership and working closely with the European Commission. For more about SOFEA and its plans, look out for OPI’s Green Thinking supplement this month and an interview with SOFEA Managing Anita Singh-Gunther Director Anita Singh-Gunther.

WB Mason strikes baseball deal US mega dealer WB Mason has signed a multi-year contract with Major League Baseball (MLB) to sponsor the 2017 post-season replay review as well as being named official office products supplier for MLB. It is the first nationwide sports partnership for the mega dealer, having sponsored the likes of the Boston Red Sox and the New York Yankees in past years.

NEWS

IN BRIEF

BIRD FEED

Compass CEO resigns Compass Group CEO Richard Cousins has announced that he is stepping down after 11 years at the UK-based facilities services provider. He is due to leave his role at Compass at the end of March and will fully retire in September 2018. He will hand over the reins to current COO of Europe, Dominic Blakemore, who joined the group back in 2012. Office Club appoints Antalis exec UK dealer group Office Club has appointed Paul Le Serve to strengthen its business development team. Le Serve joins from paper merchant Antalis where he held the position of Regional Sales Manager for the South. His efforts at Antalis resulted in the company being presented the Supplier of the Year award at the Office Club conference back in June. Lederer joins Staples Inc Sycamore Partners has announced the appointment of John Lederer as a Senior Advisor. Lederer will serve as Executive Chairman of the board of directors of Staples Inc and its newly-formed US and Canadian retail businesses. He was most recently associated with Oak Hill Capital and prior to that served as CEO of US Foods, taking over from ex-Essendant CEO Bob Aiken in 2010.

November 2017

Wulff CEO steps down Wulff Group CEO Kimmo Laaksonen has resigned after just seven months in the role. He was appointed head of the Nordics reseller back in March, joining from Brand Factory Finland. The group has not revealed the reason for his seemingly sudden departure, but Chairman Heikki Vienola – who was CEO of the company from 1999 to 2015 – took over the helm with immediate effect. Wulff co-founder Ari Pikkarainen took over from Vienola as Chairman.

BIG INTERVIEW

Double

VISION Two of TriMega’s leading lights – Ian Wist and Mike Maggio – give their frank and free views on the dealer channel, the competition and the industry at large

etween them, they’ve amassed about 50 years of experience across all industry channels. As such, Mike Maggio, President of US dealer group TriMega and Ian Wist, its Chairman and co-owner of Wist Office Products, were well-versed when put on the spot by OPI’s Steve Hilleard at the tail end of this year’s EPIC event in Las Vegas. From the threat of Amazon, the trouble with collaboration and the state of the industry to specific TriMega – and dealer – priorities, they pulled no punches in their answers. OPI: Let’s start with a brief overview of TriMega as it stands today. Mike Maggio: Sure. We have 475 members right now. TriMega is made up mainly of office products resellers, although we have a technology sub-group called INTEC as well. Our combined revenues remain somewhere north of $300 million – that’s down from a year ago but, comparing apples to apples, sales of our currently active members are up slightly.

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OPI: What metric do you use internally to gauge the success of the group, ie what’s the number you focus on at the end of the year that determines whether it was a good or a bad year? MM: Good question. I look at two things primarily. One is maintaining 100% payout of rebates. The figure varies and could be anywhere from $23 million to $25 million, but it has to be a 100% payout – that’s a very important number for us. The other is that TriMega itself is operating at a break-even or slightly positive EBIT, so that there are no costs that aren’t covered. Those are the two key ingredients for me when I evaluate whether we are doing ok.

OPI: Ian, as Chairman of the board, would you concur with that? Ian Wist: Yes. Personally, I like members buying direct. We have a lot of non-stocking dealers and created

affiliate programmes for them. But I would like to see more dollars flowing through central billing – the greater that number, the more we’re paying out. OPI: Looking back at the period since we last interviewed you in 2014, what have been the most notable achievements for the group? MM: The standouts to me are firstly our purchasing clinic that we started two years ago. It has been a major achievement and I’m very proud of it. Grady Taylor has done a terrific job of formalising a process to help members buy better. It doesn’t necessarily mean shifting wholesale to direct or direct to wholesale, it’s about teaching dealers how to maximise return on one of their largest investments – inventory. Secondly, the EPIContent joint initiative with Independent Stationers (IS) is a critical driver for the independent dealer community (IDC) as well as, quite frankly, for the manufacturers and the wholesalers. I’d like to think that everybody understands the value of it. Thirdly, the Supplier Council and Top-to-Top Meetings with key vendor partners are things we have

BIG INTERVIEW Mike Maggio & Ian Wist

From left: Ian Wist and Mike Maggio

implemented since my tenure at TriMega began that are critical to us as we go forward as an organisation. We continue to find ways to reduce overheads while providing equal to or, in some cases, better services to our members than in the past.

OPI: Mike, you shared a session with Mike Gentile at EPIC this week. He described Amazon as a ‘disrupter’. Is that understating the threat? MM: I don’t think that was his intention. Amazon is a competitor, we need to treat them as such and we do. But they are also a disrupter because they are changing the game. Ian’s experience is not unique. You walk into one of our dealer’s customers, confident that you’re getting all their business and it turns out that all of their employees have Prime accounts. We’ve never competed with an organisation with that kind of reach. As such, we have to focus on our strength – local relationships. Amazon’s strength is data, ours is relationships.

November 2017

OPI: Let’s move onto the IDC in general and the threat that Amazon and Amazon Business are posing. How are dealers holding up to this? IW: From my own dealership’s perspective – and we’re pretty proactive – we’re losing orders, not just to Amazon but to Walmart as well. It’s not hitting our public business yet where we are growing very nicely. But ‘yet’ is the clue here. Amazon Business is certainly out there trying to get into that space. We’re also busy upping our game in the private sector – more law firms, insurance companies, real estate agents, and so on. There’s plenty of business out there to take, particularly because the OP big boxes are in a weakened position today for all the known reasons, and we’re able to grab those dollars. But the leakage to Amazon is always there.

We’ve never competed with an organisation [Amazon] with that kind of reach

Mike Maggio & Ian Wist BIG INTERVIEW OPI: But that alone will not be enough, surely. What specifically is TriMega doing to help dealers like Ian’s business and others? MM: Well, I mentioned the EPIContent initiative before and that’s really important. But just as important is our mission to improve dealers’ cost of goods and make them more competitive.

The way events unfolded at Essendant has meant that we’ve fallen off the radar at bit, partly because our previous main contact – Tim Connolly – is no longer there

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In addition, we continue to focus on adjacent categories, adding manufacturers and broadening the product mix available direct, thereby enabling dealers to gain wallet share of their existing customer base.

OPI: Years ago, we spoke about Staples as a disrupter and you just alluded to the fact that they’re having some challenges at the moment. So the sale has gone through and the idea is to start focusing more aggressively on the mid-market. Office Depot is the same [and, shortly after EPIC, bought California dealer Complete Office Solutions]. Are you seeing that in the market? MM: Talking with dealers around the country, Staples appears to have pockets where they’re really pushing local sales reps, but I don’t think it’s the organised, cohesive push that they’ve made it sound like. And who knows what the exit strategy for new owner Sycamore is – shore up cash or start selling pieces off? We’ll know shortly where they’re going. IW: I’m not seeing that big push – from Staples or Depot – either and I don’t see feet on the street. Amazon is a much bigger beast. We’re a niche player

and we’re going to satisfy the needs of customers who want to deal with other people rather than a ‘buy box’. That’s our relevancy in the marketplace. If you continue to pull people off the street, you’re just getting closer to the Amazon model and we really want to go as far away from that as possible. OPI: Collaboration seems to be the buzz word of 2017 and this EPIC show is another sign of that. How’s that collaboration extending to the perennial ‘will they/won’t they merge’ of IS and TriMega? IW: Let’s just say we’re still willing to talk, but if there’s nobody to talk to, we’re not going to have that conversation, are we? A few years ago the TriMega board unanimously voted to explore any and all opportunities to merge with IS. The board has never rescinded or taken a step back from that resolution. We have sat down with various members of IS numerous times. Each time IS decided to disengage from those discussions. We all know and understand the potential benefits for the IDC – getting there has been the challenge. That said, we’ve collaborated on certain initiatives very well. The two Mikes have known each other for a long time and they’ve been able to work on tasks together which have been beneficial. As far as both groups as a whole are concerned, I would like to seek greater cohesion, but everybody’s got to legitimately want to work together and I’m not seeing that. OPI: Mike, anything to add to that? MM: There is a lot of collaboration occurring, yes, but I’m not so sure we all define collaboration in exactly the same way. I echo Ian’s comments that everyone understands the potential benefits for the IDC. OPI: Let’s talk some more about the wholesalers. TriMega announced a closer relationship with Essendant in 2016 which was surprising given that you seem to have had a tighter relationship with SP Richards (SPR) in the past through your strategic

OPI: Given their share prices and financial results, should the industry, particularly the IDC, be nervous about what’s going on in the wholesale sector? MM: From my perspective, absolutely. Any time there’s disarray at a partner of that magnitude we have to be concerned. They are both very strong companies and they’re not going anywhere. But all dealers, regardless of size and business model, rely heavily on their wholesale relationship whether they’re stocking 4,000 SKUs or five. IW: Speaking from a Wist perspective, I’m a reasonably-sized stocking dealer and Essendant is my biggest trading partner. Half of my spend. So yes, there’s some concern there. OPI: Would a merger among the wholesalers make sense from an industry perspective? Never mind Wall Street and that side of things? IW: I think that is a frightening proposition for dealers, because of the lack of choice and the leverage that a single supplier would have over the business. OPI: Could it be argued that Amazon is emerging as a wholesale source? MM: I know lots of dealers that will buy something from Amazon because their customer wants it and they can’t get it anywhere else easily. As such, there’s most definitely some level of purchasing taking place from Amazon today. I’m not sure they would be an effective wholesale distributor in the traditional sense, but dealers have a history of filling the customer’s need and Amazon enjoys quite a bit of business that’s then resold.

think you can stress highly enough how important it is to drive costs down and be profitable. It is then that you invest the profits in technology, infrastructure, etc. But the bottom line has to be robust first. MM: Steve, I get your point, but we have to start with that basic premise. We’re not telling dealers they have to focus on cost alone, but that is our role. We help with all the other things as best we can, but at the end of the day, our job is to produce programmes and provide products that allow them to be competitive. OPI: I’d like to go back to EPIC. I was surprised to see Pinnacle members wandering around. What’s all that about? MM: Pinnacle is affiliated with IS and as such are eligible to participate. We were as surprised to see them as you are. We know them all and many we consider to be friends, but that’s somewhat irrelevant. They have been very vocal about the value of these type of shows. They consider them a waste of time and money. But here they are. OPI: Let’s finish on a high – I hope! Where do you see the industry in five years’ time?

We’re still willing to talk, but if there’s nobody to talk to, we’re not going to have that conversation, are we? MM: That’s bound to be a loaded question where you tell me in a minute what I said five years ago and I was completely wrong. I think we’ll still have a vibrant dealer community and I disagree with folks who say we’re going to end up with just 200 independent dealers. We’re close to equilibrium right now in my view, so somewhere between 1,000 and 1,500 is probably about right. And as long as independent dealers exist I don’t foresee a time where a buying group like TriMega won’t have relevance and add value. What products will we be selling? Who knows. There’ll be many differences, but aggregating volume and behaving as one will continue to have value and I think we’ll still be here.

November 2017

OPI: A lot is written about the need to take cost out of the channel. Mike, you said in your last Big Interview in 2014 that TriMega is primarily a buying group and that’s what it should focus on. Is there too much emphasis on price and margin among dealers and not enough focus on re-engineering their business or investing in technology? IW: The purpose of TriMega membership is to achieve best cost of goods. Yes, you have to invest in technology and people to stay in business, but I don’t

For more exclusive content from the interview, including the topics of branding, technology and dealer as well as manufacturer engagement, visit the November issue in the Magazine section on opi.net.

BIG INTERVIEW Mike Maggio & Ian Wist

sourcing agreement. Has that ‘alliance’ with Essendant borne the fruit you were hoping for? MM: Not in total, it hasn’t. But that doesn’t mean we haven’t reaped some significant benefits, such as reduced cost of marketing, improved cost of goods and rebates for members, etc. There are some components to the alignment that we’ve struggled with. Essendant has gone through a lot of changes since we made the deal and this has had some impact on the relationship. We recently entered into a direct buy relationship with SPR to help our SPR-centric dealers a bit more, and there are still some components of the Essendant alignment that we look forward to implementing and that we feel confident about. IW: The way events unfolded at Essendant has meant that we’ve fallen off the radar at bit, partly because our previous main contact – Tim Connolly – is no longer there. Let’s just say that collaboration doesn’t always work the way you had intended it to.

HOT TOPIC Wholesalers are the glue that binds the business supplies industry together, keeping the supply chain moving. But with a rapidlychanging landscape, are these middlemen evolving along with it? – by Michelle Sturman

ou’ve heard that “the industry is in a state of flux/change/transformation/ consolidation” so many times now, it could almost become the OP industry’s mantra. As the linchpins of the industry, wholesalers keep the entire supply chain chugging along, but is it enough to just push boxes? Wholesalers will argue – and often rightly so – that they are not ‘box shifters’, but rather strategic partners to manufacturers and resellers. But the wholesaling model is changing. The recent announcement of ADVEO in Europe that it is shifting from a traditional wholesaler to a ‘European platform for workplace solutions’ as part of its 2020 Strategic Plan is perhaps the most extreme reorganisation undertaken in recent times, but is clearly indicative of how much the traditional model is under pressure. THE AMAZON BUG Interestingly, a recent opi.net poll (see page 21) revealed that just over half of respondents believe the ‘pure’ wholesaling model is still currently viable. But for how long? At the OPI European Forum held in June of this year, a panel on supply chain efficiency provided food for thought on a number of issues that participating wholesalers agreed need to be addressed. Chiefly, these included pricing clarity, value-add services and cost to resellers, limited SKUs, and quality of content and data supplied to dealers. The good news is this tallies with what the majority of manufacturers, resellers and the independent dealer community (IDC) that OPI spoke to would also like to see reformed. Over and above the perennial issues of cost to serve and margins, it’s no surprise that the industry considers Amazon Business to be the most pressing issue facing wholesalers. As Pentel Director of Sales UK and Ireland Graham Craik points out: “Like it or not, Amazon is now a serious player

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MANUFACTURERS’ WHOLESALING WISH LIST

• E-commerce and digital capabilities • Transparent and competitive pricing • Sufficient and wider-ranging stock • Stronger brand loyalty • Taking care of the independent dealer channel • Closer partnerships

in the office products market and as a major global brand, it is essential that we engage with it.” This sentiment is echoed by many OP manufacturers as Amazon carries a far wider array of products than those made available by the OP wholesalers. Resellers procure from Amazon for a variety of reasons, but mainly for buying products that are out of stock or unavailable from their wholesaler. “We use Amazon for ad hoc purchases or where there is a delay from elsewhere; we sometimes buy too much for my liking,” admits Siobhan O’Connor, Managing Director of Ireland-based reseller Codex.

Like it or not, Amazon is now a serious player in the office products market Still, not all resellers have been bitten by the Amazon bug. HiTouch Business Services EVP of Merchandising Butch Johnson says the company does not yet find Amazon Business to be a valid source given the current aggressive position of manufacturers for low-cost ‘buy direct’. There are also those who are adamant the wholesale channel, in conjunction with the IDC, can hold its own against the online giant. “I strongly believe that both the IDC and wholesale channels can counteract by levelling the playing field on

• Training and field support • Good product content for digital platforms • Long-tail products, particularly for drop shipments • Deep and broad product assortment • Competitive pricing • High stock availability • Partnerships

39%

content and pricing strategies while leveraging dealers’ local presence as a key differentiator,” says HSM America President Bob Ouellette. Acme United CEO Walter Johnsen is another person to bet on independent dealers, even though Amazon is his company’s largest European customer. He believes that, while the wholesale model is not broken, programme mark-ups will be challenged as dealers fight to deliver value versus Amazon.

Wholesalers are still doing rebate programmes when the market is shifting to online buying… In these times of consolidation, it makes sense for wholesalers to provide even more support to the IDC and smaller resellers, as Guernsey CEO Dave Guernsey explains: “The IDC is the wholesalers’ end-user channel. It is a symbiotic relationship and we just need to get the linkage correct.” Office Depot Europe Spokesman for Core Management Team & SVP Contract Neil Maslen also believes the wholesalers will continue to play a role as they support a significant percentage of the market through the dealer channel. One issue that is continuously being flagged up is the slow pace of technology adoption by wholesalers, culminating in frustrations, such as the lack of e-commerce and other digital channels. “Wholesalers are still doing rebate programmes when the market is shifting to online buying, so rebates and all the pricing tactics used are not relevant. Pricing given to the

opi.net asked whether a pure wholesaling model is still viable in the business supplies industry? 52%

Yes No Don’t know

sales team is out of alignment with online e-tailers,” notes John Givens, CEO at Colorado-based dealer Source Office & Technology. One vendor replying anonymously to OPI’s recent Confidence Survey states: “Modern, efficient logistics allow vendors to serve certain channels and customers directly that have been exclusively served by OP wholesalers in the past. While some wholesalers are IT-wise, marketing-wise and content-wise, they are not well prepared to service and manage the fast-growing e-commerce business.” Maslen adds: “In order to remain relevant, wholesalers need to – and some are doing so already – redefine their business model and tap into the opportunities that exist. E-commerce needs a long-tail approach, with a significant extended assortment.”

For more exclusive content including interviews, information on adjacent categories, dealer consolidation and more, visit the November issue in the Magazine section on opi.net.

November 2017

COUNTING THE COST It seems wholesalers are stuck between a rock and a hard place. Resellers that want to become leaner are looking for value-added services such as marketing to be provided by the wholesaler. At the same time, many are griping about the cost of these services, saying that not only were some of these originally absorbed in the price of the merchandise, but more often than not, the cost structure is confusing and not transparent enough. One European vendor that talked to OPI on the condition of remaining anonymous is certainly keen for wholesalers to add value to resellers through services such as drop shipments and marketing support, adding that, given the option as a brand manufacturer, it would choose a value-add wholesaler over a box shifter. Not everyone is convinced, however. Avery VP/GM Europe & Asia Pacific Mark Cooper questions whether there is a role for these ‘value-adds’ they provide, especially in view of the potential duplication of these services by the wholesalers and dealer groups. This perhaps goes some way towards explaining how EOS distributor Exertis Supplies has been able to move into business supplies wholesale distribution in the UK, capturing a segment of the market with its low-frills, low-cost model (see Big Interview, OPI September 2017, page 16). With all the upheaval in this channel currently, it will undoubtedly be an interesting few years – wholesalers just need to keep up with the pace and demands that are being placed on them.

HOT TOPIC Role of the Wholesalers

RESELLERS’ WHOLESALING WISH LIST

Role of the Wholesalers HOT TOPIC

The world according to wholesalers OPI asked a number of wholesalers to give their views on where they think the OP wholesaling channel is heading

RAJ ADVANI, MANAGING DIRECTOR, EXERTIS SUPPLIES We see the wholesalers of the future offering more choice and flexibility. Our historical business, EOS distribution, has by necessity always been a more dynamic world with a variety of sources helping proactive dealers make additional margin. With the technology solutions now available, we foresee a time ahead where dealers are more able to customise their purchasing model to buy the right products at the best price, and no longer have to trust one supplier to effectively control their margin.

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JAIME CARBÓ, CEO, ADVEO New technologies are transforming the way we work and communicate, and consequently the market of office supplies is changing. The digitisation of the office is setting the trend: people are increasingly making notes on tablets and storing documents in the cloud. As a result, there is a decline in traditional OP and printing supplies that depends on the country’s degree of digitisation. The growing number of mobile devices and access to reliable, fast internet connection everywhere is also contributing to this reduction in OP consumption. On the other hand, the digitisation of the distribution chain, with vendors selling direct via their websites, offers a new scenario that leads to a certain disintermediation of the supply chain. This model involves lower margins and more efficiency in operations in order to be able to compete with big e-tailers such as Amazon that have set the bar really high for excellent logistics and easy returns. Motivated by business growth and empowered by technology developments, wholesalers have come to disrupt their own business model and industry, with resounding repercussions for the entire supply chain. As a consequence, there are opportunities to offer a better purchasing experience for B2B customers. Wholesaling operations can be streamlined, including inventory, order management and accounting processes in the cloud, for example. A further outcome is the provision for multichannel sales, reaching out to both distributors further down the supply chain and to end consumers. In this context, there is a trend to use online channels instead of traditional ones. B2C e-commerce is not substituting intermediaries and the modern wholesaler is not substituting retailers. It’s just that the lines between what used to be distinct roles have been blurred.

LASZLO FEHER, MANAGING DIRECTOR, CORWELL GROUP Nobody knows the answer, but in the long term I think our industry will change as radically as our lives. The habits and routines of the next generation are, from my point of view, totally different. Millennials need more ‘space’ in the workplace, more spare time, and they want to become leaders much faster than Gen X workers did. Our industry is not really a tech-driven one, but this new generation is definitely tech-focused. What can we offer them? A new label writer? Or paper where you can copy on the edge? This isn’t ‘sexy’ to millennials and they don’t care about it. They need smart devices, community spaces, and virtual workflow. So, will our industry produce something that is interesting enough for Gen Y, Gen Z and Gen Alpha?

FRANCO GROSSI, GENERAL MANAGER, OFFICE DISTRIBUTION “None of us can reach the full potential of our business by working alone.” These simple words were used by SP Richards CEO Rick Toppin to open the company’s last Advantage Business Conference in July. I fully agree with this statement as it expresses the real meaning and function of wholesalers. The challenge that all operators in the OP market are faced with is immediately reacting to the ongoing changes, adapting their businesses – after years of exploiting the benefits of consistently growing demand – to end-users’ new purchasing habits and tastes, and to the decrease in the consumption of some “mature” product categories. Doing it on one’s own would be inconceivable, costly and nonsense. A wholesaler – with a capital ‘w’ – currently offers resellers the ideal mediation between producers and end-customers. This includes logistic services, the widest possible range of products, common web platforms, IT services and digital catalogues – all are fundamental aspects of the business, but at the same time out of reach for small and medium retailers. Such synergy also involves large operators that can benefit from ‘free’ solutions such as stock breakages, out-of-print products, etc. There are big opportunities for wholesalers in the future if everybody takes advantage of the available tools, expertise and skills. Continuous investment is also required to identify, share and handle market changes together. RICHARD SCHARMANN, CEO, PBS HOLDING The future for OP wholesalers looks challenging due to more pressure in the market and inactive dealers that will be squeezed out by highly-professional competitors. On the flipside, fully-integrated dealers that are using high-end tools – provided by state-of-the-art wholesalers – offer solid growth opportunities. So while the top line is under pressure, quality is improving. JEFF WHITEWAY, CEO, SPOT GROUP The future of the OP wholesaler is to be less stationary (not a spelling error) and a more effective link in the supply chain, assisting dealers to be able to offer an ever-wider range of product in a fast-evolving market. Dealers have been forced to increase their supplier base, adding cost and inefficiency to their business in order to fulfil customer requirements, effectively making the OP wholesaler less relevant though still vital with through-the-night delivery. Maximising single-source opportunities for both dealer and wholesaler is essential. A dealer will buy from an OP wholesaler due to the speed of delivery if the range and pricing is right. Please note that some wholesalers, such as US-based Essendant and SP Richards, declined to comment for this feature. For more exclusive information, including interviews from other wholesalers on the direction of their businesses, visit the November issue in the Magazine section on opi.net.

Think MRO, think GRAINGER

SPOTLIGHT

MRO products are increasingly making their way into the portfolios of OP resellers and wholesalers, but there are a number of suppliers that embody MRO – one of them is Grainger

rainger is North America’s leading broadline B2B supplier of maintenance, repair and operations (MRO) products. With subsidiaries also in Europe, Asia and Latin America, the company serves more than 3.2 million customers worldwide with products such as safety gloves, ladders, motors and janitorial supplies, along with services like inventory management and technical support. OPI’s Heike Dieckmann speaks to Deb Oler, Grainger’s SVP and President of North American Sales and Services about the company’s evolution, its business model and how it intends to remain the go-to choice for MRO products.

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OPI: Who are your customers – predominantly? Deb Oler: Our customers range from small and medium-sized businesses to large corporations, government entities and other institutions. The value they find in working with Grainger varies depending on the size of their organisation. Large customers, for example, are traditionally complex and value Grainger’s multichannel model and high-touch service. Medium-sized clients want competitive pricing and a relevant product choice. As a result, Grainger recently developed new price, coverage and service offerings for this segment. Small customers, meanwhile, tend to purchase similarly to individual consumers. They value a simple, web-based solution to quickly identify and buy items at a competitive price.

OPI: How has your business model and your route to market evolved? DO: It certainly has changed. We know businesses and institutions today are focused on becoming more productive, and one of the primary methods for driving better productivity is to reduce process cost. Increasingly, businesses have shifted from ordering through our traditional channels – such as over the phone or at branches – to online and online channels like Grainger.com, electronic purchasing platforms (EDI/ePro) and inventory management systems.

We have anticipated and evolved with these changes in customer buying behaviour. As a result, in 2016, more than 65% of Grainger orders originated via a digital channel and more than 85% of orders were shipped directly to the customer or made immediately available through online services. Customers today can place orders online, on mobile devices, through sales representatives, over the phone and at local branches.

In 2016, more than 65% of Grainger orders originated via a digital channel and more than 85% of orders were shipped directly to the customer or made immediately available through online services OPI: Please tell me about your retail operation. The OP big boxes in the US have varying strategies for retail. What’s yours? DO: We believe one of our competitive advantages is our multichannel model that integrates our sales force, branches and customer service networks, online services and channels to get our customers what they need, when they need it. They can opt to have items directly shipped to them or pick them up from a branch or will call. OPI: How much is Grainger involved in government contracts? DO: We have a robust and dedicated government sales team meeting a wide array of mission-critical needs of hundreds of government agencies. Last year, sales to government customers made up approximately 14% of our sales.

OPI: Given that the office products sector is increasingly embracing adjacent categories such as MRO/PPE and safety, what impact has that had on Grainger? DO: We haven’t seen an impact at this point. That said, our focus is on serving our customers in the best manner possible and, over the past three years, Grainger has invested heavily to configure its business to meet their evolving needs. With a robust IT infrastructure and supply chain in place, in 2016 the company established strategic priorities for its five focus areas: US Large, US Medium, Single Channel, Canada and International. We are now well-positioned to create unique value for a broader set of clients. This results in stronger volume growth across more customer types and existing geographies and improves their experience through a competitively advantaged product offering and delivery, technical product expertise, an industry-leading digital experience and market-relevant pricing. OPI: Talking of pricing, Grainger has been in the news quite a bit in the past few months with its pricing initiatives. What are the issues? DO: In late 2016, Grainger initiated pricing changes that were fully integrated in 2017. These actions resulted in more competitive pricing, which will allow us to attract new customers and increase penetration with existing ones.

OPI: In the office supplies sector, we hear a lot about the need for a one-stop shop for all of a business’s purchasing requirements. How much do you see that among your customer base?

Deb Oler, SVP and President of North American Sales and Services at Grainger

OPI: On that topic, what are your thoughts on consolidation – in your own sector and also in the business supplies industry at large? DO: We closely monitor all of the industries in which we compete, but our focus is on our business and continuing to provide unique value and an effortless experience for our customers. OPI: Adjacent categories are becoming very important to what were formerly ‘pure-play’ office products resellers. What barriers do you think exist that prevent OP resellers from muscling in on your ‘patch’?

Unlike suppliers from adjacent categories, Grainger is solely focused on MRO DO: Unlike suppliers from adjacent categories, Grainger is solely focused on MRO, and we continue to invest in our capabilities around exclusively serving the MRO needs of our customers. This includes having superior technical expertise. From safety to metalworking, Grainger’s technical specialists consult with customers on specific needs and provide tailored solutions designed to save time and money, and keep facilities safe. This technical expertise is a value to customers and a clear point of differentiation for us. OPI: How do you see the MRO/PPE market developing over the next five years? DO: We know digital capabilities will be central to serving customers and creating a competitive advantage, and we are committed to having the best solutions in our space, designed to anticipate our customer needs. We will also continue to build on our advantages around the right products and superior technical expertise, which sits on the foundation of our strong sales and service model and fulfilment capabilities.

November 2017

OPI: What kind of brands do you work with – A-brands, private label, own brand? DO: Approximately 5,100 suppliers provide Grainger with more than 1.6 million products stocked in our distribution centres and branches around the world. We also offer products carrying the Grainger Choice badge which recognises our exclusive brands, such as Dayton, Condor and Tough Guy, as well as unbranded products from Grainger-approved vendors. These items are designed to offer commercial-grade quality that customers demand, while also providing value.

DO: We always want to be the supplier our customers look to when they need help keeping their operations running and their people safe. By creating unique value through services, technical support and products; having a broad range of SKUs they need available faster than the competition every time; and offering a simplified, competitive pricing structure, we put ourselves in a favourable position when they think about consolidation.

SPOTLIGHT Grainger

OPI: Who are your main competitors? DO: The MRO market is highly fragmented, which means our competitors vary by industry segment. Our advantages stem from our strong track record of providing superior service, technical product expertise and support to our customers. We are a company that focuses on creating value and we do that by: • helping customers better manage their inventory and costs; • taking cost out of the purchasing process through digital solutions and order visibility; • consulting customers around their needs to address safety and energy management; • having superior technical expertise and fulfilment capabilities on a very broad product range; • leveraging our scale to ensure our service gets delivered at a competitive cost.

CATEGORY UPDATE

Tougher legislation and an obvious desire to keep workforces properly protected are key drivers for the safety and PPE sectors – by David Holes

emand for safety products and personal protection equipment (PPE) is thriving. This is being driven, in part at least, by the introduction of increasingly tough legislation. However, some businesses are clearly struggling to understand an ‘alphabet soup’ of confusing regulations and are looking to their suppliers for guidance in selecting the right products that adhere to the required standards. As Rebecca Stallard, Marketing Director at wholesaler Spicers in the UK, comments: “Legislation is without doubt a big driver in this market. Recent updates have focused on the classification of products and on aiming to eliminate sub-standard imported products being sold. “The other main factor is the economy and specifically the state of the construction industry, one of the largest users of PPE. As a general rule of thumb, when this sector performs well and is building homes there is a follow-on effect which results in increased demand for safety items. And not just from the home-building companies themselves, but also from all the firms that manufacture the products – windows, doors, radiators, boilers, bricks, steel, etc – needed to build them. “The demand for particular PPE items is ultimately driven by the type of hazards employees face in the workplace. Sadly, this sometimes happens only retrospectively, after an accident has happened.”

The demand for particular PPE items is ultimately driven by the type of hazards employees face in the workplace

November 2017

LACK OF USE Spicers is also noticing a more joined up approach between today’s safety managers and their insurers: “This makes perfect sense,” Stallard says. “Some customers are now having meaningful dialogues with their insurers to explore sensible ways in which they can reduce risk. “This can clearly be a success, as we are seeing safety initiatives being entirely funded by the resulting reduction in insurance premiums.”

However, even when protective equipment is provided to staff there’s no guarantee that it will be used correctly, if at all. The International Safety Equipment Association (ISEA) in the US reports that many injury victims were simply not using the PPE supplied by their employer. Often the reasons given were that items were uncomfortable, didn’t fit or hindered the work process. The ISEA stresses that these problems can be addressed if manufacturers adhere to good product design processes and use the right materials. Matching PPE to job specifications and making

PPE/Safety CATEGORY UPDATE

informed purchasing decisions is vital it says, as is realising that one size does not fit all and worker engagement and proper training is a critical part of the overall safety package. SPINNING A YARN Many of the issues cited as reasons for avoiding PPE – such as discomfort or an ill-fit – are being tackled by the introduction of new products that are making use of innovative synthetic fibres. These often incorporate nanotechnologies blended into the materials which then provide the same levels of protection without the need to twist multiple strands of yarn together. As such, they can be half the weight of a traditional fabric, yet last twice as long and, as a bonus, they are generally more efficient to manufacture too. This is leading to the production of protective garments that offer maximum protection, but in thinner, more comfortable and more durable styles. These advances in materials science are also being applied to flame-resistant apparel. No longer do workers have to wear a rigid, rough-woven cloth; they now have an array of soft fabrics to choose from that are effective, comfortable and which can look stylish as well. Safety eyewear is another sub-category where progress is being made. Standard safety glasses offer protection from projectiles, but in some work environments they are also required to protect against

microscopic airborne debris, dust and other small particulates which can cause significant irritation and debilitating eye fatigue. The most effective solution is to have a foam seal around the orbital eye cavity, but previously this has caused fogging, which has often been cited as a common reason for not wearing the protective eyewear provided. However, recent work in anti-fogging technologies has now effectively eliminated this problem which should lead to an increase in the use of all-encompassing eye protection glasses. There are several other technological shifts on the horizon as showcased at the British Safety Industry Federation (BSIF) annual awards for innovation. Recent winners have included helmets with integral warning lighting and a system of wearable sensors which collects movement and muscle activity information from multiple body locations. This can then be used to warn the wearer if strain or repetitive movement injuries are likely. In general it’s this incorporation of the latest technology within products that is moving the PPE sector forward.

‘Traffic light’ gloves

BARRIERS TO ENTRY Clearly, safety and PPE is a burgeoning sector that presents plenty of attractive opportunities. However, as Mike Foster, Director of Merchandising at US dealer group Independent Stationers, reports, there still seem to be barriers preventing entry for OP

FIRT AID TO THE RESCUE Safety products and PPE items are there to prevent accidents, but if they fail to do their job, are not used appropriately or indeed at all, then the next line of defence is first aid. Walter Johnsen is CEO of Acme United, a specialist in the first aid sector. He speaks to OPI about the latest developments in this important area.

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OPI: How large is the first aid market in the regions where Acme operates and how is this category performing? Walter Johnsen: The safety and first aid market in the US, Canada and Europe continues to grow and expand with new products. Our team estimates that the total market for first aid and non-prescription

medications is worth around $6 billion. As a company we’re seeing growth of approximately 3% annually. OPI: What are the main drivers for the growth you’re seeing? WJ: The key growth drivers are, naturally, concern for employee health and welfare, but there are also cost savings that can be made by addressing accidents quickly when they happen. Additionally, there is a wealth of government regulations coming from bodies such as the FDA, EPA, OSHA, ANSI, Health Canada and the EC. These regulations are updated continually – a recent US change now

mandates first aid kits for staff and customer use in all restaurants – and businesses and suppliers must update their equipment to comply. Finally, the avoidance of law suits is high on the agenda for all companies. OPI: How’s technology playing into this category? WJ: Technological advances are occurring all the time, not just in wound treatment, but in supply-side processes too. For example, the rollout of our replenishment app this year is showing the benefits it can bring. The app allows customers to scan the products they’ve used, then aggregates their consumption and automatically sends

purchase orders to their dealers when new stock is needed. For the customer, the app ensures compliance with appropriate regulations and saves them about 40% in costs compared to delivery by vans. For dealers it creates customer continuity. Another Acme business development is our acquisition of Spill Magic in February this year. Spill Magic is a powder that reacts with fluids spilled on a floor, the material is then swept up leaving the floor dry and preventing slips. Major retailers are using this product now to reduce the incidence of falls on wet floors and we are in the process of bringing it into the broader jan/san market.

There’s no doubt that the safety and PPE sector could represent a home run for dealers Other specialist gloves, such as those rated for electrical protection in high-voltage situations – as part of an ‘arc flash’ safety kit – also present unique challenges. Some types of PPE can be used indefinitely until worn out, but these gloves cannot be used for more than six months without being tested and recertified, or disposed of and replaced. Knowing this is not just critical for compliance, it can – without sounding overly dramatic – mean the difference between life and death. As with the overall PPE category, being knowledgeable about this sector clearly pays off and a consultative approach becomes a distinct advantage. And if dealers can overcome their fears, the potential is considerable, Foster concludes: “Backed by the right training and sourcing of the correct products there’s no doubt that the safety and PPE sector could represent a home run for dealers.”

November 2017

GLOVES POTENTIAL Gloves in particular continue to be a hugely successful sub-sector within the overall PPE field and it is here where resellers in the business supplies industry typically break into the segment. “It’s about 80% of what our dealers sell in this category,” says Foster. “Sales have grown around 35% each year since 2014, with the largest orders coming from the food service and medical verticals.” It’s the same story in the UK, adds Nice. “Disposable gloves made from latex, vinyl and nitrile for use in the healthcare and catering services are an excellent growth area for us.” For Spicers, the sub-category is its fastest growing area. Explains Stallard: “Customers are reporting that after slips, trips and falls, hand injuries are the most common type of accident staff are encountering. In particular, we’re seeing a greater demand for hand protection from the retail industry where, although the severity of accidents is not high, they can occur quite frequently. Light, dextrous gloves are proving very popular. They are made from thinner-gauge materials and are more comfortable. We’re also seeing advances in knitted gloves that are water repellent. Now wearers can benefit from a breathable glove that doesn’t become saturated in the rain.” Safety managers also like the traffic light system that some manufacturers are using to enable easy identification of a glove’s properties, such as cut protection. This makes it easy to see if an employee

CATEGORY UPDATE PPE/Safety

resellers: “This is a category where dealers could be seeing significant growth, but some appear very reluctant to move into it.” Stallard believes that a lack of understanding about product costs is one confusing aspect: “It’s one of the most common questions we get asked. Fluctuations in this category are generally driven by the prices of the raw materials – such as oil, latex and cotton – used in PPE production. Currency shifts, particularly between the US dollar and the euro, also have a big influence.” Debbie Nice, Facilities Supplies Category Director at UK wholesaler VOW, speculates that – as previously mentioned – some dealers see it as too bound up in regulations: “Many are scared of PPE due to their lack of confidence in understanding the legislation, but some sub-categories offer an easy entry point. We’re concentrating on disposable items such as gloves, masks, hearing and eye protection. Even if the prospect of supplying large contracts seems daunting, if you add together the requirements for these products from all the smaller companies out there, the size of the total market is huge.”

is wearing the correct glove for the job: a green glove in a cut hazard area (highest risk) or a red glove in a general handling area (lowest risk). Using the correct type of glove is certainly important. According to the National Safety Council in the US, some companies are trying to simplify their PPE purchasing by ordering just one type of cut-resistant glove that meets the greatest hazard in their manufacturing operation. The thought process is that if a glove prevents accidents in a high-hazard situation, it will surely also protect the wearer in less dangerous scenarios. However, this can actually lead to non-compliance and injuries that could easily be prevented. For example, gloves rated to the highest cut standard do not offer the necessary dexterity and ‘feel’ for employees that handle small parts or work in packaging and shipping operations. As such, their use may be avoided and, consequently, relatively minor cut hazards can then become frequent injuries.

ADVERTORIAL

Protect WHAT IS IMPORTANT Traditional filing cabinets might be on the wane, however, that’s certainly not the case for security products that have the ability to truly protect customers’ most valuable assets

ireKing is a US-based manufacturer that is in the business of protecting what is important for companies, schools and consumers. To be able to do that, it has to meet demanding quality control procedures. OPI’s Heike Dieckmann talks to President Gary Weisman about what it takes to stay at the top of your game and how the company is venturing down new, previously unexplored, avenues.

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OPI: How would you describe FireKing’s remit – your mission statement, so to speak? Gary Weisman: Our mission is to protect what’s important, it’s as simple as that. We’ve been doing that in one way or another for over 65 years now with a range of products including water- and fireproof filing cabinets, safes, video surveillance systems, etc. Every single company has documents that should be protected. In fact, over 65% of businesses that experience a fire and lose their vital records will go out of business within one year – I think that’s an incredible statistic.

OPI: It’s a well-known fact that sales of regular filing cabinets are in decline. Do you see that decline at FireKing too? GW: It’s true that sales of regular filing cabinets have dropped off in the past few years due to the digitisation of documents. But the need for securing important information has actually grown over the years. FireKing has seen an increase in demand to protect irreplaceable documents and media each year and we expect this trend to continue. It’s not just documents, of course. It is estimated that 7-12% of school children in the US need daily administered medication. A recent university study revealed that 48.5% of US schools surveyed reported child medication

errors. Our Schools Medicine Cabinet which was launched last month reduces the risk of incorrectly dispensing medicine to students, with a full audit trail and interface with a school’s scan-card system. Importantly, it also keeps the medication completely safe and away from children. Overall, demand for all manner of security products continues to grow and our dealer partners that recognise this continue to experience sales growth with our products.

Over 65% of businesses that experience a fire and lose their vital records will go out of business within one year OPI: What about safes – is that a category in decline as well due to digitisation? GW: Not for FireKing. The safe category is a rapidly-growing segment of our business. Safes are not only used for document storage, but also for anything else that people want to protect from theft, fire or water damage. The segment with the highest demand in the safe market are products for the home and we offer a complete line of home safes to meet those customers’ specific needs.

Gary Weisman

OPI: Broadly speaking, what is your target audience? Has it changed much over the years? GW: Our end-user audience is very diverse and ranges from governments and the education vertical to large businesses and the SOHO sector. The fastest growing part of our business is in fact the SOHO sector. It’s not new to us, but the potential in this channel is enormous, as people strive to protect their valuables in all manner of different spaces. We launched a filing cabinet specificlly tailored for this

OPI: What about your reseller base – has that changed much? GW: The internet now accounts for a large percentage of our overall sales. That said, we still go to market with the office products dealers and wholesalers through their catalogues and promotional material. OPI: So what are FireKing’s core differentiating factors today? GW: They are numerous. The irony is that businesses used to store everything. Now they don’t because of digitisation, but the physical assets they do keep are much more important. So if they’re important they need to be protected and put into cabinets and safes that can resist fire and water, are impact-resistant and still keep the contents secure inside. It’s interesting that users tend to believe a regular steel filing cabinet is fire- and waterproof and even resilient to severe drops. That is a huge misconception and not the case at all. FireKing prides itself on its rigorous quality control – it’s absolutely core to everything we do. We have never had a filing cabinet fail in the history of the company and there’s a lifetime warranty on all our commercial cabinets.

FireKing’s Schools Medicine Cabinet

OPI: Can you tell me a bit more about that quality control? What are the specific challenges in your product category and how do you overcome them? GW: Sure. All our fireproof cabinets are made in the USA and we offer a number of solutions for various risk profiles. Our products must meet very stringent production guidelines and all our commercial files carry the Underwriters Laboratories (UL) label for fire and impact. UL has the right to enter our factory at any time and pull a filing cabinet or safe out of production and put it through its test lab to ensure we are meeting the requirements as outlined in its test. This ensures that end users are getting the protection they are paying for. In practice, this means, for instance, that cabinets will withstand exterior temperatures of 1,700°F (927°C) while the inside maintains a temperature of a maximum of 350°F. They are also resilient to a 30-ft-drop (10 m) without opening. From a water-resistance and electronic media perspective, our commercial cabinets are ETL Intertek-certified to protect against sprinkler, fire hose and electronic media damage. These accreditations are an important differentiator for us that set us apart from the competition.

ADVERTORIAL FireKing

segment called the Turtle file, for instance. It has all the same features as our commercial cabinet, but comes in a compact, 22-inch-deep design. We try to anticipate and react to customers’ requirements, and over the past 12-15 months specifically we’ve been looking at new applications in order to remain relevant and address opportunities in the market. In partnership with sales and marketing agency Highlands we’ve taken new concepts and ideas to the reseller community and this collaborative effort is really paying off now.

We have never had a filing cabinet fail in the history of the company and there’s a lifetime warranty on all commercial cabinets ABOUT FIREKING…

November 2017

1951: Founded by LG Carlisle as Murphy Manufacturing 1975: Van Carlisle becomes President/ CEO and renames the company FireKing International 1990: FireKing buys Meilink Industries and enters the fireproof safe market 2003: FireKing International becomes FireKing Security Group (FKI) 2011: FKI merges with Corporate Safe Specialists 2012: FKI acquires AP Unix 2015: FKI introduces Hercules cash and key storage 2017: FKI introduces Schools Medicine Cabinet

OPI: Please tell me about your service – as opposed to merely product – proposition. GW: FireKing offers a number of services to customers. The most important one is delivery and installation. Dealers today do not have the equipment necessary to move a 800 lb (400 kg) filing cabinet. As such, FireKing offers a variety of delivery options for dealers, ranging from dock-to-dock to complete installation to end users on our dealers’ behalf. We take care of all the logistics for these services. We also have a nationwide service division that can help if problems arise. Finally, there are FireKing employees in all FireKing trucks, so they are all trained and qualified to handle our products.

CATEGORY UPDATE

The triple threat of negative growth, declining margins and counterfeit products continues to hamper the print and imaging supplies sector – by David Holes

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he print market continues to decline, but it’s not all doom and gloom. In fact, some of the category’s key players are finding considerable success by diversifying and concentrating their focus on expanding sub-sectors. As Annika Fagerstrom, Head of Consumer Sales at Epson UK explains, although there are shifts both in markets and in terms of technology, printing is not going away: “Recent research shows 77% of UK office workers still want printers, scanners and copiers in their offices and we are seeing huge growth in the business inkjet category. Analysts may speculate about industry-wide consolidation as a result of an overall shrinking market, but it can still be a high-value and profitable sector.” Manufacturer Brother gives a wider European perspective. “Our sales are not declining in line with the overall market reduction and are actually growing within our target markets,” reports Chris Marshall, Director of Business Printing and Solutions at Brother International in Europe. “Managed print services (MPS) are a key focus for us and we are now considered a serious contender in this area. This part of our business continues to evolve as we are investing significantly in our MPS infrastructure. We are very positive about the future.” Meanwhile, in the US, VP of Product Marketing at IT consumables wholesaler Distribution Management Monte White tells a similar tale: “We’re all aware that business printing is in decline. However, it’s still a large market. Our trend line is very different from the overall market as we are continuing to grow across all areas of our business, but especially in MPS and equipment. We feel our specialisation in printing and imaging has helped create competitive advantages.”

MANAGED PRINT OPPORTUNITIES REMAIN The latest MPS forecast for 2017-2021 from research firm IDC notes that growth in print services has slowed over the past few years, but says that there are still significant opportunities within this market. However, it predicts that competition will be fierce and vendors will need to differentiate their offering based on innovative solutions and services that directly address the needs of the target market. “We’ve taken note of this,” says Marshall, “and this is what makes Brother’s ‘at your side’ ethos more relevant now than ever before, as we continually look at how we can best support our customers and maintain our strong position. We believe there is a lot of room for expansion as our product range evolves and we are seeing significant growth opportunities with both SMB and enterprise customers.”

Analysts may speculate about

[…] an overall shrinking market, but it can still be a high-value and profitable sector A recent Epson survey reveals that businesses using MPS found it brought them numerous advantages, including better device reliability, lower environmental impact, improved document security and lower energy use. “The demand for MPS services continues to rise,” says Fagerstrom. “We’re seeing sales of our Print365 MPS solution – where businesses rent small desktop devices for 36 months – go from strength to strength.

Many providers are still not using software to gather data and monitor their range of devices Canada-based printer software group PrintFleet specialises in the development of print management solutions. As its Global Marketing Manager Elise McFarlane points out: “Awareness of the importance of data usage for business process optimisation is gathering pace and there is still a tonne of room for growth in this market. However, many providers are still not using software to gather data and monitor their range of devices. Those that do should also move towards the automation of printer supply ordering, as well as developing a predictive service to prevent hardware failures. Solutions have recently become both more scalable and lower priced, and resellers now have more choice to pick a provider that matches their needs – this includes access to multiple OEM suppliers and toner distributors, rather than a limited range.” THE HOT TOPICS In addition to expansion into MPS, security and corporate social responsibility (CSR) are two additional key areas mentioned by those OPI spoke to. In Europe, the EU General Data Protection Regulation

IN THE NEWS Apogee expands reach UK MPS provider Apogee has bought Kopiervertrieb Rhein-Ruhr (KRR), an independent MPS and IT service provider in Düsseldorf, Germany. This followed its recent acquisition of UK-based Clarke Office Solutions, another reseller and service provider of manufacturer brands such as Canon, HP and Samsung. Cartridge World launches Printer Exchange Ink and toner franchise chain Cartridge World has introduced an EOS exchange initiative to help small businesses deal with e-waste. Under the new Printer Exchange programme, business owners in the US can trade in their old or unwanted machines for an upgraded device at no extra cost. The catch is that participants must buy their toner from Cartridge World, but then will also receive complimentary printer maintenance for leased printers. M2 launches online MPS platform European MPS specialist M2 has launched a new e-commerce platform. Called Print Simplicity, it allows resellers to broaden their product offering to include MPS. It is currently being offered to IT resellers, OP suppliers and managed office providers, with HP Inc and Office Depot the first to launch white label versions of the website.

CATEGORY UPDATE Imaging Supplies, MPS & Print

We feel it breaks the existing MPS mould by offering printing pricing and service value aimed at smaller companies. It’s also a great option for resellers as the concept is easy to learn, while providing a transparent and hassle-free solution for the end user.”

Integra launches MPS UK dealer group Integra Business Solutions partnered with Centrex Print Services has launched its own enhanced MPS programme. It’s designed to offer members a competitively-priced solution, encompassing sales support, print audit and an implementation service. Katun sold to GPI Aftermarket imaging supplies vendor Katun has been acquired by Taiwan-listed toner manufacturer General Plastic Industrial (GPI). The deal includes three of the firm’s geographic business units, ten distribution and warehouse locations and more than 20 global sales offices. HP upgrades partner platform September saw the launch of HP’s new partner training platform. It includes face-to-face training in addition to sales skills development in HP’s core competencies. These include Security, Device-as-a-Service, Mobility and MPS. The company says it is looking to reinvent the customer printing experience for an on-demand world, while enabling increased revenue opportunities.

November 2017

Xeretec boosts MPS offering Xerox’s largest MPS reseller Xeretec has acquired HP’s MPS and solutions specialist Landscape Group creating what it calls a new ‘managed print powerhouse’.

(GDPR) becomes enforceable across all member countries in May 2018. It redefines what ‘personal data’ means, reflecting changes in technology and the way organisations now collect information about people. “It’s the most important change in data privacy regulation for 20 years,” says spokesperson Stephanie Keller from German office technology manufacturer HSM. “Organisations really need to think about what happens to their printed documents when they are no longer needed or printed in error. “Statistics show that the average office worker uses 10,000 sheets of copy paper each year and around 6,800 of these are considered to be wasted. Many of these wasted documents will contain personal or commercially-sensitive information and need to be destroyed quickly, easily and securely. Having a shredder near each print-output device and a company-wide ‘shred-all’ policy now makes sense.” (For more information on GDPR, see page 37).

We don’t believe that laser has the same staying power and will likely join other obsolete items such as VHS recorders and typewriters one day The rise in mobile printing driven by an increasingly itinerant workforce is also causing security issues. Employees expect to be able to access, work on and then print documents from any location they choose, but although the technology exists, they are discouraged as a result of data protection fears. It’s important that businesses invest in printers with built-in security technology and find a system that integrates with their existing IT environment, so all documents are continually kept within a company’s firewall. CSR is another driver that’s affecting the way companies operate in this sector. “Priorities are changing for today’s businesses,” says Fagerstrom. “Success is no longer measured solely by profit margin, but by considering societal and environmental impacts too. Governments are looking to the private sector to deliver on the Paris Agreement and align business strategies with the UN’s Sustainable Development Goals. This is a massive market shift and a factor businesses are now recognising.” Epson has dialled into the sustainability trend by launching PaperLab. This innovative, eco-friendly technology claims to be the world’s first compact, office-based papermaking system, capable of producing new paper from securely shredded waste documents. It uses a dry process that saves water, reduces CO2 emissions, minimises disposal costs and ensures secure destruction of confidential documents at the same time. Users are able to produce their own paper in various sizes, colours, thicknesses and types. INKJET VS LASER Although office printing has traditionally centred on laser products, inkjet is becoming more prevalent. Suppliers see increased demand for it, partly driven by its reputation as an eco-conscious choice.

Epson’s PaperLab

CRIMINAL CONDUCT The battle against cartridge counterfeiters remains a tough fight, not helped by the fact that consumers are increasingly sourcing supplies online, where the practice is rife.

“Clones are a significant threat to both OEMs and the large remanufacturers too,” comments Distribution Management’s White. “Many manufacturers have now implemented serial-number tracking, deployed detection software and developed specialised packaging technologies to help combat the counterfeiters. “Interestingly, we’re now seeing pockets of collaboration between the OEMs and remanufacturers, working together in areas of mutual interest to combat cloning and counterfeiting, and help define standards surrounding cartridge types.” Additionally, trade organisations such as the Imaging Supplies Coalition (ISC) in the US are working hard to put the brakes on illegal activities in this sector (see ‘Counterfeit countermeasures’, below). But despite the many threats that continue to hamper the print and imaging supplies market, the sector continues to thrive. As White concludes: “Those operators that can offer speed to market, a high-quality customer experience and the ability to add value, while maintaining competitive pricing, will continue to compete in this category, both today and in the future.”

CATEGORY UPDATE Imaging Supplies, MPS & Print

Epson says the technology produces 99% less waste, consumes 96% less energy and produces up to 92% less CO2 than laser. It adds that, if every European business made the switch to inkjet printing, enough energy would be saved to run over half a million households, equivalent to a city the size of Lyon, Manchester or Lisbon. It’s certainly gaining traction, with IDC projecting that inkjets will account for 34% of the total business printer market in Europe by 2019. Epson has invested heavily in the technology, with €400 million ($470 million) going to new inkjet production facilities in Japan and other markets, and a further €185 million in the pipeline over the next three years. Fagerstrom explains: “We’re seeing huge growth in the business inkjet category, taking 40% of the European market in Q1 of this year. Incremental innovations in inkjet have already responded to many of today’s workplace demands and the technology is so flexible that it will continue to meet future needs. We don’t believe that laser has the same staying power and will likely join other obsolete items such as VHS recorders and typewriters one day.”

COUNTERFEIT COUNTERMEASURES OPI speaks to Allen Westerfield, President of the Imaging Supplies Coalition (ISC) – a US non-profit trade association for OEMs of consumable imaging supplies and equipment – to get an update on its work to combat illegal operators.

OPI: What new initiatives are helping in the anti-counterfeiting battle? AW: The sale of counterfeit and infringing products over the internet is a major issue. While many measures have already been taken to mitigate this, the problem continues to grow. However, it is particularly encouraging to see concerted action being taken by some online marketplaces to identify

infringing products and then actively prevent them from being listed. While these efforts are in their infancy, the analytical tools being used and the subsequent data they are generating could go a long way to minimising this activity. OPI: Why is the work of the ISC so important? AW: It’s vital that consumers really understand the societal issues that are caused by counterfeit products. Beyond the obvious economic issues for legitimate manufacturers and resellers, there are significant health and safety issues involved as well in

using fake products. And illegal trade of this nature often helps fund terrorist and other criminal activities. OPI: What measures will ultimately swing the battle in your favour? AW: At the end of the day there would be no trade in counterfeit goods if there was no demand. There are many complex factors driving this, but price differentials are most often the root cause. There needs to be a comprehensive education programme driven by brand owners, resellers, internet platforms and governments to educate consumers on the issues and dangers involved. This changing of attitudes will be a difficult task, but in parallel the protection of intellectual property rights is also a vital cause that must be defended. The ISC website contains a wealth of information for dealers and consumers alike, including tips on how to avoid mistakenly buying counterfeit products (www. isc-inc.org/detection.html).

November 2017

OPI: What successes has the ISC had most recently? Allen Westerfield: Since we last spoke [see ‘Ongoing battle, OPI November 2016, page 91] patent infringement involving third party new builds has continued to be a concern. However, we have been successful in the enforcement of US ITC 337 General Exclusion orders. These prohibit the importation into the US of any product that infringes the subject patents. Our training and information exchange with the US Customs and Border Protection (CBP) agency has continued, and through port visits and webinars we have now trained over 400 CBP agents in the detection of patent-infringing

and counterfeit products. While the 2017 seizure numbers are lower than 2016 levels, we think this is actually due to a lower flow of illegal goods coming into the country.

FEATURE

Private

MATTERS The biggest overhaul of European Union data privacy laws will come into force next year. OPI’s Michelle Sturman takes a look at some of the most important aspects

CONDITIONS OF CONSENT There are four main conditions of consent: 1. It should be able to be demonstrated that the data subject has consented to the processing of his/her personal data. 2. If the consent is a written declaration which concerns other matters, the consent request must be provided in an intelligible and easily-accessible form through the use of plain language.

It is important to understand that personal data refers to any information that can be used to directly or indirectly identify a person 3. The data subject has the ability to withdraw consent at any point which should be as easy as it was to give it. 4. When evaluating if consent is given freely, it should be taken into account whether the performance of a contract is conditional on consent to the processing of personal data that is not necessary for the performance of that contract.

November 2017

t’s no surprise that data privacy and storage regulations have been overhauled across the European Union (EU). The existing rules were issued in 1995, but the exponential growth in accessible personal data has left them unable to adequately protect the rights of data ‘subjects’. On 25 May 2018, the EU General Data Protection Regulation (GDPR) replaces the current Data Protection Directive 95/46/EC and comprises some far-reaching updates. The aim of the GDPR is to protect the personal data of EU citizens from privacy and data breaches; for businesses it marks a fundamental shift in how data is processed, stored and used. According to the official EU GDPR portal (www. eugdpr.org), the new legislation has been designed to “harmonise data privacy laws across Europe, to protect and empower all EU citizens’ data privacy and to reshape the way organisations across the region approach data privacy”. In the context of the GDPR, it is important to understand that personal data refers to any information that can be used to directly or indirectly identify a person. This includes everything from an email address, bank details and social network posts to medical details, IP address, name or photo. The GDPR is not about technology, but is based on principles. This, by default, covers both electronic and paper-based data, such as direct mail, a ‘little black book’, contact lists on your company phone as well as telephone calls, etc.

Consent is one of the most significant aspects of the upcoming legislation and under the GDPR there must be a positive affirmative action: “Consent should be given by a clear affirmative act establishing a freely given, specific, informed and unambiguous indication of the data subject’s agreement to the processing of personal data relating to him or her, such as by a written statement, including by electronic means, or an oral statement.” In addition, “silence, pre-ticked boxes or inactivity should not therefore constitute consent”.

GDPR FEATURE

The GDPR goes much further than previous legislation in terms of protecting individuals and their personal information. For companies, meanwhile, notification is mandatory under the GDPR where a data breach is liable to risk individual rights and freedoms, and must be done within 72 hours. In addition, data subjects’ rights include the right to access, the right to be forgotten, data portability, and privacy by design.

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OP IMPACT? Fellowes UK Sales and Marketing Director Darryl Brunt says: “Every OP dealer or vendor will need to have certain systems and policies in place to ensure they are compliant with the new regulations. An organised plan will help to avoid data breaches and thereby maintain a trustworthy reputation.” The GDPR is also relevant globally inasmuch as it applies to organisations located outside of the EU if they “offer goods or services to, or monitor the behaviour of, EU data subjects. It applies to all companies processing and holding the personal data of data subjects residing in the European Union, regardless of the company’s location”. Agreements are already being forged between associations such as the National Retail Federation (NRF) in the US and EuroCommerce which is the principal European organisation representing the retail and wholesale sector. The current deal revolves around developing a common approach to implementing the GDPR. NRF CEO Matthew Shay says: “This cooperative effort will help retailers on both sides of the Atlantic prepare their businesses for implementation of the regulations.” Any business falling foul of the GDPR could be fined up to 4% of global annual sales or €20 million ($24 million), so dealing with data correctly is imperative. “Documents containing personal data can be stored for the purposes for which they are being used, but need to be destroyed securely once they are no longer needed. The safest way to do this is by shredding them,” says Brunt. He adds that on-screen data is another important area to consider. “To protect data from being viewed by others, you should invest in blackout privacy filters.” For office products resellers the GDPR offers three key opportunities, says ACCO Brands EMEA Regional Marketing Director UK & Ireland Elisabete Wells: Firstly, raise the GDPR topic: highlight the benefits of document destruction as an integral part of a customer’s GDPR compliance process. Secondly, review a customer’s purchase history: establish if there are organisations that haven’t purchased shredders, for example, and advise that they increase security levels. Thirdly, upgrade customers: reinforce the GDPR message, drive awareness and sales.

For more information, Fellowes has written a sales guide entitled ‘An introduction to the European General Data Protection Regulation’ while ACCO Brands offers sales tools and content via https:// uk.rexeleurope.com/gdpr. The full version of the GDPR can be found at http://data.consilium.europa.eu/doc/document/ ST-5419-2016-INIT/en/pdf.

PREPARATION IS KEY According to the UK’s Information Commissioner’s Office (ICO), it is vital that businesses understand the changes in the EU General Data Protection Regulation (GDPR) and start preparing for it now. The ICO has released Preparing for the General Data Protection Regulation: 12 Steps to Take now, which is a useful checklist. 1. Awareness: Ensure the decision-makers in your company understand that the law is changing to the GDPR. 2. Information you hold: You may need to do an audit to figure out what personal data you hold, where it came from and who you share it with. 3. Communicating privacy information: Review any privacy notices and update if necessary for GDPR compliance. 4. Individuals’ rights: Ensure procedures are updated to include all the rights individuals have under the GDPR, including the deletion of personal data. 5. Data subjects’ access requests: Plan how to handle requests under the new GDPR timescale. 6. Lawful basis for processing personal data: Identify the lawful basis for your processing activity and ensure it’s documented and your privacy notice updated to explain it.

7. Children: Ensure systems are in place to verify ages and obtain consent if necessary. 8. Data breaches: Make sure correct measures are in place to deal with any breach. 9. Data Protection by Design and Data Protection Impact Assessments: Familiarise yourself with the Article 29 Working Party guidelines from the GDPR. 10. Data protection officers: Appoint someone to take responsibility for GDPR compliance and establish whether you need to have a formal data protection officer on board. 11. International: If your business operates in more than one EU country, determine your lead data protection supervisory authority – consult the Article 29 Working Party guidelines. For the full report, visit https://ico.org.uk/ for-organisations/data-protection-reform.

HOW TO...

How do you improve security decision-making? In the second part of our How to… guide to cyber resilience Hend Ezzeddine offers five strategies to minimise the threat

igest this: “Humans are incapable of securely storing high-quality cryptographic keys, and they have unacceptable speed and accuracy… They are also large, expensive to maintain, difficult to manage, and they pollute the environment. It is astonishing that these devices continue to be manufactured and deployed. But they are sufficiently pervasive that we must design our protocols around their limitations.” This fun quote by Charlie Kaufman, Radia Perlman and Mike Speciner from Network Security: Private Communication in a Public World, captures the essence of the insider threat behind cyberattacks. While IT professionals recognise that the human element is their weakest link, they often fail to address the root cause of this cyber actor. The fundamental problem in achieving cyber resilience is not about the technology, it’s about how the technology is being used.

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When required to repeatedly change their passwords, users tend to create passwords that follow predictable patterns, called ‘transformations’

Hidden forces Humans communicate with technology through signals – warnings and notices, for example – that prompt them to make a decision. There are ‘hidden forces’ that shape these decisions and offer a rational explanation to humans’ ‘predictable irrationality’. Think of these hidden forces as psychological biases and heuristic patterns that humans tend to have around risk vulnerability and their cognitive capabilities. Let’s take a look at some examples: Risk exposure Most people tend to think that they are at less risk than others and that a cyberattack is unlikely to happen to them.

Risk control Similarly, most people believe they can control the outcome if they are the main decision-maker: if a security warning message pops up on the screen and we have the power to decide to bypass it, for instance, it gives us an illusion that we are in control. Habituation Over time, frequent exposure to security warning messages causes the brain to pay less attention to these notifications and to disregard any potential threats they may signal. Normalisation of deviance The amount of stress placed on working memory makes us favour quick decisions that are based on learned rules instead of elaborate analysis. If a user has clicked on a link and it has not caused a data breach, he/she is more likely to repeat this behaviour over and over again. It simply becomes the norm. Path of least resistance Most people tend to choose the action that requires the minimum amount of effort. Combine that with multitasking and scanning a file prior to downloading it becomes the least of the user’s concern. Taking these hidden forces into account, it’s clear that no amount of technology – no matter how sophisticated it is – can stop humans from making a costly mistake. So what can be done to design a cyberdefence around their limitations? Here are five proven strategies to improve security decision-making: 1. Frame cyber risks as a tangible outcome of technology use There is usually a divergence between the feeling and the reality of security. Although the concept of security is abstract, it can be made more tangible by making users aware of it. This is how this may work: • Embed regular system reports around cyber breaches and near-misses in your awareness communication and warning messages;

2. Minimise decision-making steps when and where possible Humans have limited amount of working memory and attention span. Consider minimising decision-making when users are trying to focus on their day-to-day tasks by defaulting external emails to be filed as spam. This ‘choice architecture’ can help alert users and raise their awareness when they are going through their emails. But what do you do when you can’t apply choice architecture? Keep users alert by frequently refreshing the look and feel of your security warning messages (play on colour, message placement on the screen, etc) and avoid the use of ‘Yes’ as a command to bypass warnings. All too often we click on ‘yes’ without reading the details of the action we are trying to perform simply because that is the command we use the most when we interact with technology. 3. Design your cyber protocols and compliance procedures to counteract heuristics Now that we have a better understanding of human interaction with technology, it’s time to rethink what used to be known as best practice. Is it necessary to mandate password changes every 60 or 90 days? Research has shown that frequent changes to a memorised item interfere with remembering its new version. This is why you end up with passwords written on a sticky note visible to anyone walking by or hidden under a keyboard for good measure. When required to repeatedly change their passwords, users tend to create passwords that follow predictable patterns, called ‘transformations’. This translates into using essentially the same password while incrementing a number or changing a letter to a similar-looking symbol. This is a known fact to hackers and explains easily-guessed passwords. With CEO fraud on the rise, do you have a protocol in place that requires users to verify the identity of the caller prior to initiating any system transactions? Most humans respond obediently to authority and will jump into action before taking precautionary measures.

4. Monitor users’ activities as diligently as your network and infrastructure Social media platforms are prime targets for cyber criminals because they can easily map out users with higher-access privileges. These highly-sophisticated attacks – while they take months to execute – are very common because of their success rate and underlying rewards. An innocent post about a promotion or an upcoming holiday can have a snowball effect that leads to a cyber breach.

Most people tend to choose the action that requires the minimum amount of effort

HOW TO... Cyber Resilience

• Security warnings should clearly state possible negative outcomes that are real and personal rather than conceptual; • Frame security compliance rules as a gain (protect personal data, keep privileged access, etc) rather than a loss and inconvenience.

5. Partner with your vendors and infrastructure providers to keep humans at the centre of your cyber defence With everything being pushed to the cloud, companies are losing visibility into how their data and assets are being secured. This remains one of the biggest concerns for now since it offers humans a more complex, yet accessible landscape to interact with technology. Working with vendors to understand the risks is crucial to minimise error. It can be as simple as remediating the basic misconception that phones and tablets can get hacked into and should be treated as a computer. Since human error remains one of the most challenging threats to cyber defence, it is imperative to design it around existing limitations as opposed to against it. We can’t stop humans from interacting with the technology, but we can certainly help them make better choices to minimise irrational decisions.

As Cybersecurity Practice Director at change management consultancy Expressworks, Hend Ezzeddine has over ten years’ experience helping clients adopt and implement IT solutions. In the cybersecurity space, her work is primarily focused on the human element and leverages cognitive behaviours to reduce user errors and establish safer practices.

November 2017 41

EVENT

Fellowes celebrates EVENT REVIEW

100 YEARS

s iconic OP manufacturer Fellowes Brands marks a whole century in business, OPI was one of many guests that joined the celebrations in September. Founded in Chicago in 1917, Fellowes has evolved from being a small speciality manufacturer of file boxes for the banking sector to a leading global vendor of business products (see ‘Celebrating 100 years of Fellowes’, OPI February 2017, page 38). Operating out of Itasca (IL), the company continues to be a privately-owned business and is now run by the fourth generation of the Fellowes family. Customers and business partners came from all over the world to join the festivities, with guests from as far afield as Australia and New Zealand, including Office Depot-owned stationery wholesaler Croxley. A broad selection of European partners also made the trip, including some familiar faces from the likes of SPOT Group, Staples Solutions, ADVEO and Hedera. THE NEXT CHAPTER CEO of Fellowes Brands, John Fellowes, paid tribute to the firm’s dedicated customers and business partners. He said: “Our Centennial Summit was a wonderful opportunity to thank our business partners who have helped us achieve this milestone. It also provided us with a unique opportunity to share our innovation and branding strategy to kick off the next 100 years.” John Fellowes delivered a strategic vision presentation where he detailed the company’s history and unveiled significant new product categories.

Fellowes has already made a name for itself as a thought leader in the wellness category and the audience was given a sneak preview of some of the new lines expected to be launched in the next 18 months or so. The CEO also talked about a significant upcoming investment in the company’s branding and image, as Fellowes Brands sets itself up to increase its market leadership and reposition the brand for the future.

Framing the more business-oriented side of the celebrations were some fabulous leisure activities, all designed with a higher-purpose objective On the final day of the event, attendees were invited on a tour of Fellowes Brands’ corporate headquarters where they had the chance to experience an Innovation Open House, which featured hands-on interaction with newly introduced models and prototypes of noteworthy 2018 product launches. Strategic customer and vendor breakout meetings also occurred throughout the morning.

November 2017

GIVING BACK Framing the more business-oriented side of the celebrations were some fabulous leisure activities, all designed with a higher-purpose objective. One of the highlights was the golf day at the world-famous Medinah Country Club. Around 220 guests participated in the Centennial Summit Golf Outing, held to raise money for cancer treatment and research centre City of Hope. Two-time Masters Champion Bubba Watson offered an hour-long group golf demonstration followed by a Q&A. The festivities culminated in a dinner at the Medinah Country Club for 350 attendees. The evening featured a moving presentation by former COO Peter Fellowes and a touching speech by Chairman James Fellowes himself. All round, there was a lot of energy and goodwill in the room from customers, partners and colleagues alike. It was a pleasant and fitting end to the celebrations, and a memorable way to see in a new century for Fellowes.

EVENT

THE NEED BRILLIANT PARTNER REVIEW

to share data

K wholesaler Spicers unveiled its revamped Brilliant Partner programme in London at the end of September. Held at the London Stadium in Stratford’s Olympic Park – home of West Ham United football club – Spicers invited some of its top dealers for a day of workshops to encourage collaboration and showcase its latest initiatives. SPOT Group CEO Jeff Whiteway kicked off the day with a frank admission: “We haven’t got all the answers,” he said before talking briefly about the changes happening across the sector, including consolidation, the fall of the big names and, of course, competition from e-commerce. He went on to introduce the relaunched programme which promises to be much more dealer-focused this time round.

RESELLER WEAKNESS Spicers also identified a big weakness among resellers – the utilisation of data. To rectify that, the wholesaler urged its partners to share information and be more open to collaboration, not just within the group, but with peers in the market as well. This included access to do audits with back-office systems. Whiteway further reiterated that Spicers was willing to work with dealers to understand what products they were buying from non-traditional sources, so it could add them as SKUs. He said the wholesaler was willing to initially work on wafer-thin margins to help the channel develop volumes that will ultimately lead to improved cost of goods for all. The meetings on the day also included a presentation aboard the Dynamibus, a double-decker Routemaster refitted to showcase the latest range in seating from office furniture maker Dynamic, a supplier of Spicers. A summary talk and ‘blue sky’ session wrapped up discussions and opened the floor to ideas and comments. Whiteway said he hoped a better relationship with dealer partners – based on trust – could be forged following the relaunch. Collaboration was the theme of the day. Large resellers rubbed shoulders with more modest-sized dealers, but this was a crowd that was ready to work together, united by the challenges brought about by a rapidly-changing market.

November 2017

AN EVER-CHANGING MARKET The group had invited not just representatives from its large dealers, but also a few smaller ones new to the scene. Whiteway explained that it was more about “attitude” than revenue. Spicers wants to work with partners that are keen to collaborate, share data and bring a fresh approach to make the wholesaler/dealer relationship more efficient. Spicers Sales and Marketing Director Richard Ford was next to talk, outlining the ethos behind the launch. He said that it needed to ensure the programme delivered tangible, relevant and beneficial services for its resellers. The Brilliant Partner proposition was now aligned to meet the needs of dealers in an ever-changing market, he added. Ford continued with an update from the group and revealed some interesting statistics regarding consumer behaviour. He touched upon the emerging Generation Z, the new age bracket of tech-savvy consumers anyone in retail should be gearing their marketing towards. Finally, he mentioned the industry’s current foe, Amazon Business. But he remained optimistic: “That’s a threat we can overcome. We are aware, but we are not scared.” His comments were echoed throughout

[Amazon is] a threat we can overcome. We are aware, but we are not scared

the day as Amazon’s B2B platform and how to keep it at bay was a hot topic for discussion. After splitting off into groups, attendees rotated through numerous workshops, exploring the key offerings and benefits of being part of the Brilliant Partner initiative. A session on cost management, for example, introduced the Spicers-branded credit card, to be launched in December in partnership with Mastercard. It also offered several suggestions on how dealers can strip out costs in what was described as a “highly inefficient” industry. Head of Logistics Rick Jones showed off the wholesaler’s improved transport and delivery fleet and lauded the benefits of consolidated fulfilment. The marketing team, meanwhile, went through its promotions materials and toolkits, which aim to ensure dealers’ marketing efforts are more integrated campaigns and less “mud on the wall”.

GENERATION GAME

A DAY IN

the life of…

As part of UK industry association BOSS’s Leaders of the Future initiative, Avery’s Emma Pevy spent a day with an office supplies dealer to get a feel for the industry and find out where and how collaboration could be enhanced

joined Avery in August this year with no experience of wholesale or dealer channels, nor in fact the office supplies industry as a whole. As such, I was keen to gain some first-hand experience of just how things work within this sector. With this in mind, I welcomed the opportunity to spend a day with Wordflow Office Products – an established dealer in London – to show me the ‘other side’ of things and get to know one of our clients a little better. With Wordflow’s sales manager as my guide, I spoke with members of the telesales team to gauge how much they knew about the Avery brand and our product offering already, as well as about their general sales approach with customers. AVERY REFRESH First of all, it was clear that Wordflow was in need of an Avery ‘refresher course’ – everything from product information and collateral to sales training. They’d been a bit neglected. But, just like me, they were keen to learn.

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The younger generation is constantly and actively learning new things. Use this to your advantage

Apparently, it had been quite a long time since Avery had met with the team face to face, but Wordflow had enjoyed success with other brands holding ‘promo days’ in the office – blasting the phones, pushing promotions and prizes for the most successful individuals. It became obvious to me that sometimes the more personal and hands-on approach works best – the importance of regular contact and brand exposure with dealers should not be underestimated. Another key takeaway for me was just how much promotional collateral is made available via a

wholesaler’s online platform. The promotion run by Avery was in danger of becoming lost in a sea of many others. But, even if we are not selling to them directly, regular interaction with dealers can play a big part in encouraging them to take up current offers, prize draws and the like to maximise uptake. CONSISTENT MESSAGE When talking with the sales team, the consistent message was that most staff were not fully aware of the complete Avery offering. I suspect this could be the case with many dealers – and manufacturers – in the office products space. There was also a preference to offer a cheap private label equivalent instead of a branded one. A re-education on the merits of Avery products was needed. Switching can be a challenge for the end consumer, but empowering the sales force can play a big part in creating brand advocates within the dealership channel. It was great to hear the creative ideas within the team, particularly around growing customer brand loyalty and working collaboratively on incentives and promotions. And it’s those with the most contact with end consumers – the sales force – who need to feel supported and equipped with all the right information to take to their customers. I found the whole experience extremely useful and would highly recommend making time for this. For an employer – any employer, not only a manufacturer – the benefits are not just evident for your bright new staff member but also for your entire strategy; it helps a newcomer like me to really get a feel for the industry, but it ultimately also grows the business. The younger generation is constantly and actively learning new things. Use this to your advantage and send them on ‘research missions’ like this to gain a real insight into how other parts of the supply chain work. It’s like getting a fresh pair of eyes to check things over, ask questions and bring original ideas to the table. It also does wonders for your relationship with the dealers themselves. Moving forward, I will focus more on ensuring dealers are well-equipped with marketing materials to make our promotions a lot more visible. We need to be on their radar – all the time, not just some of the time.

Emma Pevy is a Key Account Executive at Avery UK. She joined the label manufacturer from commercial data provider Dun & Bradstreet UK

GET INVOLVED If you are a young person in the UK OP industry and would like to get involved with the Leaders of the Future and its other initiatives, contact BOSS CEO Philip Lawson at philip@bossfederation.co.uk

5 MINUTES WITH...

Georg Bettin Describe yourself in one sentence. Loud remarkable laughter on two legs. What are you most proud of? Very easy – my kids. What’s your specialist subject? Retaining my sense of humour – it is very difficult to make me angry. I hope I can always stay like this. If you could have the answer to any question, what would you ask? As the answer to the mother of all questions about life, the universe and everything is already known, there is nothing more to ask for! It’s 42, by the way. For non-sci-fi fans, please refer to Douglas Adams. Are you a couch potato or fitness freak? I go running, but I can’t really say I enjoy it! Having said that, it’s the easiest exercise to do in order to keep my weight in check after I quit smoking in 2001. If you could trade places with someone for a day, who would it be and why? It would have to be one of the three kings witnessing the birth of Jesus Christ. Your favourite gadget? Sorry to say it, but my iPad: work and leisure in one device. I love gaming on it as much as I use it to check the news and my email.

What is the hardest thing you’ve ever had to do? Too personal to answer. All I will say is that there was a good outcome in the end. If you were Chancellor, what would be the first law you pass? Live and let live! Best way to spend the weekend? A rather boring but true answer: with my family being outside somewhere and doing something that everyone will enjoy. Best compliment you’ve ever received? “You’re the best daddy in the world.” Unfortunately, this is quite often followed shortly after with a statement that says the exact opposite. Where would you most like to travel? New Zealand. Firstly, it is the home of hobbits. Secondly, a very good and old friend of mine moved there some years ago. It would be great to see her again in person. What makes you happy? Scuba diving – one of the few places left in the world without access to a mobile phone or email.

CAREER Q&A Please describe your current job. Managing Director for Acme United Europe with a passion for sales. The industry figure you most admire? Former Atlanta Office Products Germany Managing Director Pieter Kreykamp. He taught me the old-fashioned way of doing business which included the right way to treat customers, suppliers and colleagues. He is an extraordinary person. What do you like best about the OP industry? That most of us take it so seriously. I sometimes get the feeling that office products are thought of as more important than life-saving emergency treatment!

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What was the worst moment in your career? The bankruptcy of Atlanta Office Products after 20 years of being a member of a great team.

What would you cook for a dinner party? I am an awful cook. On the odd occasion when I’m in charge, my kids are always happy as they know French fries will be on the menu.

What would you say to someone who has just joined the office products industry? Welcome to the family.

Global 2018 The 7th Global Forum for senior executives from the business supplies industry and associated sectors

11 - 13 November 2018 Sofitel Chicago Magnificent Mile, Chicago For more information, email steve.hilleard@opi.net

www.opi.net/gf2018

ORGANISED BY Connecting the

business products world

FINAL WORD

THOUGHTS FROM

Insights-X I n 2015, the first Insights-X show kicked off in Nuremberg, Germany. The Maped Group has been an exhibitor ever since and this year again was a great success for us. Broadly speaking, it’s the timing of the show – early October – that appeals to us. It’s the perfect time for next year’s back-to-school season and being at the forefront of buyers’ minds at this important time really helps with our brand recognition. The timing, of course, is one of the reasons why several manufacturers have moved away from Paperworld Frankfurt – or see Insights-X as an additional opportunity – and are now keen supporters of the event. For the German Maped team certainly, we were able to welcome again a high level of buyers and product managers from a number of distribution channels, including retailers, mail order operators, wholesalers, mass market players, drugstores and discounters. To us – and I’m sure the organisers would agree – the calibre of visitors was excellent; feedback also shows that there was an increase in the number of international visitors, some from far-flung destinations like Latin America. That adds scope and quality to the event and bodes well for the future.

FAMILY ATMOSPHERE With that scope in mind, however, another advantage actually is that the event is not too big. Visitors can get first-hand information about new product launches while at the same time enjoying an almost family-like atmosphere in Nuremberg. Insights-X comprises three exhibition halls which means that visitors can really spend time with suppliers and get a deep insight into companies’ assortments. Maped, for example, was able to highlight several pilot series product additions for 2018 that arrived just in time before the tradeshow. Like I said before, early October is the perfect timing in terms of the new season, our R&D and buyers’ interest in our products. This year we

specifically focused on new school accessories and products for the creative market. For the first time, our team also presented Maped Picnik, a new range of drinks bottles, lunch boxes and cooling bags for school children. INSIGHTS-X IN FAVOUR OF PAPERWORLD The Maped Group and our German subsidiary helit had been exhibitors at Paperworld in Frankfurt for more than 35 years before we decided at group level a few years ago to switch to Insights-X. Paperworld is still important for our industry in my opinion and remains a very valuable trade show and global

Rolf Bonsack, Managing Director, helit (part of the Maped Group)

The timing, of course, is one of the reasons why several manufacturers have moved away from Paperworld meeting point for the stationery community. But we had for a long time been in favour of a bi-annual rhythm of Paperworld and were also keen on changing the timing towards year end when our trade partners make buying decisions for the following year. We’ll be at Insights-X again in 2018, hopefully with a larger-footprint stand as well. Next year’s show will be cut down to three days and I believe that’s a good decision by the organisers as the Sundays – the last day of the event – have been fairly quiet over the past couple of years. Overall, for us it’s an excellent platform to present our brand to high-level decision-makers in our industry at exactly the right time of the year.

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