17 minute read
Focus
SHAPING the future
OPI takes a look at some of the key themes and takeaways from the recent European Forum Online
With COVID still very much impacting in-person meetings and travel at the end of 2021, OPI chose to hold its annual European Forum as an online event from 1-2 December last year. It’s a format the OPI team has been able to fine-tune over the past couple of years and the latest programme didn’t disappoint.
Under the tagline of Shaping the Future, about ten hours of content were designed to cover the hottest topics of the moment and help inspire strategies for success. And both it did, judging by feedback from delegates.
There was an impressive turnout from leaders across the business products industry, not just from Europe, but also from countries such as the US, Canada, Australia, China, South Africa and Botswana. It was good to see very strong representation from the reseller community, which accounted for 55% of attendees, with manufacturers making up a further 30%.
EVOLVING EUROPEAN LANDSCAPE
Event host and OPI CEO Steve Hilleard kicked off proceedings and, after a brief introduction, launched into a series of quick-fire interviews with several executives from influential workplace supplies firms. These included three companies that have helped reshape the pan-European reseller landscape by acquiring parts of the former Staples Solutions and Office Depot Europe organisations: Lyreco, PBS Holding and RAJA.
“The break-up of Office Depot and Staples in Europe is creating opportunities for many,” declared Lyreco CEO Greg Liénard, adding: “[The industry] will keep on reshaping over the next few years – the main European operators are rising, with strong local players also taking part in this new ‘game’.”
PBS Holding Managing Director Richard Scharmann referred to consolidation that is “speeding up significantly” and said: “In light of an increasingly uncertain future, some investors want to exit even faster. The industry is going back to its roots, with industrial players and less private equity which, I believe, is a positive development.”
A common theme emerging from the interviews was a focus on the customer experience. “At Lyreco, we don’t see eliminating cost as being the main objective; what we are striving for is customer satisfaction,” said Liénard.
He added: “When we look at the way we operate and our [associated] costs, we don’t want to downgrade customer satisfaction. Therefore, in some cases, things cost more. For example, we deliver through our own drivers because we believe they are a valuable asset for customer satisfaction.”
Nevertheless, Scharmann also highlighted the challenges that could come from having to manage an eroding top line. “It leads to costs pressures and chasing an improvement on
Steve Hilleard
“It genuinely amazes me how such a reliably superb event like the OPI Forum (European or Global) can just keep on getting better every year, whether it’s face to face or virtual. The mix of speakers and topics was fantastic, and the open sharing of knowledge, opinions and ideas I find extremely valuable. There really is nothing else like it, in this industry at least” – Steve Bilton, Managing Director, FusionPlus Data
Forum 2021
productivity, with a close eye on processes, systems and how we manage our services to customers,” he noted. “Overall, 2021 was more challenging than 2020, and I don’t expect 2022 to be any easier.”
Speaking about the learnings from the 2019 acquisition of parts of Staples Solutions, RAJA Managing Director Alain Josse in his chat with Hilleard welcomed the fact that “the DNA of taking care of customers” was still very much intact. “This was reassuring and a major reason why we decided to pursue this acquisition,” he stated.
Josse pointed to a similar situation at Viking – acquired last year from Office Depot Europe – where a commitment to the reseller’s famed “fanatical customer service” would underpin RAJA’s strategy. “The Viking brand equity is still very much alive,” he noted. “We just need to complement this with a local footprint – a bit like getting back to basics, but in the context of the 21st century.”
MARKETPLACE OPPORTUNITIES
On the theme of reshaping the industry, one disruptive element that is set to become more mainstream is online marketplaces, both as B2B and B2C sales channels. Specialist agency TFE – headed by former Lyreco executive Bob Boekema – provided an informative overview of marketplaces in several key European markets.
While Amazon is by some margin the leader in a European market estimated at around €220 billion ($251 billion) in 2020, its share of 20% means there’s still plenty of scope for other players. eBay, for one, is looking to grow in the B2B space and would appear to be the natural international challenger to Amazon. Then there are established or emerging local players such as Cdiscount and FNAC/Darty (France), OTTO and Conrad (Germany), bol.com (Netherlands) and OnBuy (UK).
Indeed, Boekema cautioned against putting all eggs in one basket when it comes to marketplaces. “The online opportunity is still growing,” he said, “It’s important to find the right balance and not be dependent on one customer.”
He also raised the issue of the need for vendors to implement an online pricing strategy. “When they are chasing volume on platforms such as Amazon, a lot of suppliers are not in control of their pricing,” he noted.
Later on, during the final ‘takeaway’ panel of the European Forum, Brother UK Managing Director Phil Jones too recognised that marketplaces are a fast-growing channel. But, he argued, they come with considerable challenges as well. In October 2021, he revealed, Brother removed more than 48,000 lines from 38 platforms in 22 countries for trademark and imagery infringements and counterfeit products.
“It’s an ongoing problem for a vendor and new costs emerge,” he admitted, saying that Brother has, in fact, hired a third-party company to police digital platforms on its behalf.
Lyreco’s Liénard, meanwhile, called online marketplaces “a very complex topic”. Certainly, one issue for resellers like Lyreco is the evolving
Greg Liénard
“An outstanding European Forum with great content, varied and diverse speakers and topics, and the opportunity to network informally. In a nutshell, as close to a real-life event as is possible to do virtually. OPI consistently attracts thought-provoking industry leaders and this time gave airspace to some great young talent who added a refreshing blast of new thinking” – Jonathan Smith, Consultant
nature of contract leakage, which is being impacted by trends such as work-from-home and pricing transparency on digital commerce sites.
“We do have projects to ensure we address this,” he revealed. “At the end of the day, it’s about what the customer wants. Ideally, that is to be able to buy from one platform, have one delivery, one invoice and a perfect level of service.”
Does this mean a Lyreco marketplace is in the pipeline? Liénard didn’t go that far, but our take is to look out for some developments from the reseller along those lines during 2022.
AN OPPORTUNITY FOR CHANGE
A key issue which has been affecting all channels – and very much continues to do so – is cost inflation at many different levels. This was covered in a panel debate during the event.
However, following keen interest in this session, the topic was also covered in some depth in OPI’s first-ever Insights webinar on 11 January (turn to page 50 for more information).
Steve Hilleard Robert Baldrey Jeanette Bresitz
Charles Nusse Steve Haworth
That said, Steve Haworth, CEO of the UK’s multichannel EVO Group, made an interesting comment during the conference discussions. He referred to “unrealistic RRPs, no channel pricing structure, a lack of recognition of the cost to serve in the pricing methodologies, and a focus on percentages versus cash margin” and concluded:
“If all we do as a result of this [inflationary situation] is successfully pass prices on, that would be a failure. This has got to be an opportunity for change, not just in terms of pricing, but in the way we work.”
Nicolas Potier
Sustaining SUSTAINABILITY
As the saying goes, it takes a village to raise a child. So, too, will it require everyone involved in the entire business supplies sector to develop a genuinely sustainable industry. The path will be bumpy with plenty of setbacks, but key players from across the various channels have nevertheless already made significant strides.
Two central messages emerged from sustainability leaders Essity, Lyreco and Greenspeed during the Creating a Sustainable Business Industry panel at the European Forum. The first was we shouldn’t wait for governments to take action and implement legislation, the second that companies cannot work in siloes – the entire sector must work together.
One way to embark on the journey is to talk to customers right now, said Greenspeed CEO Michel de Bruin during the panel discussion led by Planet Mark’s Head of Business Development Jonathan Withey: “You don’t need to wait. Select five or ten key accounts and discuss and work with them to reach a higher level of sustainability and get them ahead of the game.”
Working on your own objectives is equally vital – whether they are mandatory or not. And, as Essity Professional Hygiene Communications Director Reneé Remijnse pointed out, while it’s good to sign up to climate agreements or the United Nations Sustainable Development Goals, for example, it’s important to follow these through, have targets approved and execute some really big decisions. “Top management needs to be aligned, and I definitely think having science-based targets help to generate changes. It’s too easy to just go for short-term wins,” she stated. “In addition, while the recent focus has often centred on net zero ambitions, we shouldn’t forget all the other sustainability initiatives.”
Isabelle Daubney, Circular Economy Project Leader for France-based reseller Lyreco, concurred and also reiterated the importance of industry collaboration. “We need to all be willing to step forward and use the same measurement frameworks and metrics, and build a common language.
“This is a true prerequisite for engaging in more detailed conversations about the product supply chain, building the right offer for customers, and supporting them in achieving their carbon emission reduction targets.”
TOP TAKEAWAYS FOR A SUSTAINABLE INDUSTRY
• Check the life cycle analysis and third-party assessments of a product • Ensure end users are fully educated about the sustainability of products • Collaborate with competitors • Seek partners outside of the industry to help achieve your objectives. This could include recyclers and waste management companies, for example • Don’t forget to include your employees in any sustainability plans and ambitions • Be positive and try to avoid ‘doom and gloom’ scenarios
Jonathan Withey Michel de Bruin Isabelle Daubney Michelle Sturman Reneé Remijnse
How to… ATTRACT AND RETAIN TALENT
One of the most interactive and engaging sessions at the European Forum was a panel discussion entitled An Audience with Tomorrow’s Leaders. Expertly led by Alex Stone, Head of Sales at UK dealer group Office Friendly, the panel delved deeply into several topics that are – or should be – top of mind for operators in our sector, for succession planning as much as for overall continued company progression.
What can the industry do to attract new talent, what do these recruits bring to the table and why is this so important? What do young employees expect from a job? These were just some of the questions asked over the course of the debate.
BROADEN YOUR SCOPE
One point raised by Falko Nils Köhler, Customer Experience Director at Lyreco Germany, was the fact that the industry defines itself too narrowly, to the extent where it becomes isolating and limiting. Consumers don’t shop for office products, for food, etc, he said. They don’t segment it in this way – they just shop.
Equally, it should not merely be seen as a sector to work in, whatever its definition – office products, business supplies and the like. Instead, people seek to work for companies which can meet and fulfil their job aspirations, be that in the areas of IT, customer service or sales, to name but a few. As such, the often dreaded declaration of “I work in office products” becomes completely redundant.
Diversity in terms of a company’s overall remit and scope is also key, according to Köhler: “As customer requirements are changing, operators in this industry have to cover a much broader array of disciplines.
“As a manufacturer, for example, you don’t just need to be good at making products, you also need to excel at market research across a broad spectrum, at data collection and analysis or at robotic process automation. It’s often out of the comfort zone of many traditional players and as such, they need to attract and engage people that have a more integrated approach to work. This will, by default, bring in new cultures and mindsets which help companies to progress.”
By the same token, employers need to offer something tangible that attracts job seekers. For Lisa Hölzl, it was innovation. She joined COLOP in 2018 with a remit to write her Masters dissertation on the vendor’s innovative processes in digital stamping. Now Product Manager at COLOP Digital, Hölzl attributes the fact she’s still with
Alex Stone Lisa Hölzl
Falko Nils Köhler Jérôme Perhaut
the manufacturer to continued learning and professional development, a great company culture and plenty of room for progression.
EASING THE WAY IN
Creating accessible pathways for young people to come into the industry is vital, the panel acknowledged, be it through apprenticeships or links with universities, for instance. With this – often very well educated – talent in the picture, it is crucial to give employees a voice that is heard loud and clear and not being drowned out by the experience of the older generation.
In addition, said Jérôme Perhaut, Key Account Manager at Fellowes Brands France: “For me, it’s really important that companies use the language and tools of millennials – Snapchat and Instagram for example – to adapt their messaging. This will ensure access to new customer audiences.”
In a session that generated a huge amount of positive delegate feedback, all panellists agreed on one core theme when asked what employers should do to attract but also retain young talent: encourage and guide employees towards what needs to be done, but then give them the freedom to explore how it’s done.
“The OPI Forum gives me exposure to current trends and international best practices in the office supplies industry. I appreciate the extent to which industry leaders invest their time and effort in sharing their insights and experience in a time of intense change” – Bill Bayley, Rexel Office Products
CREATING ORDER out of chaos
In a highly illuminating keynote presentation at the beginning of day two and no doubt one of the highlights of the OPI European Forum Online, Phil Jones, Managing Director of the UK arm of global technology manufacturer Brother, provided a refreshing insight into planning amid all the current chaos.
Entitled The Age of Entropy, Jones described our current situation as living in a volatile, uncertain, complex and ambiguous world. To deal with this reality, he proposed three areas that will help leaders navigate their way: growth and resilience, environmental and social governance (ESG) and the future of work.
LIFT YOUR HEAD
By growth and resilience, Jones meant building a sustainable future for yourself, the company and employees. While he acknowledged the current challenges around the supply chain and changing workforce and customer demands, Jones said now is the time to lift our heads above the parapet. “Start thinking about the business you want to be and look at the building blocks that are going to take you there,” he said.
One vital aspect is to look at the systems and processes used to operate a business. The majority of companies are using more digital systems than ever on a daily basis; it is time to ensure they are fit for purpose if they are to support future strategies and vision. In particular, cybersecurity must become top of mind as more digitally orientated organisations and supply chains are built.
GET YOUR HOUSE IN ORDER
Jones reiterated the urgency to “get your house in order” when addressing the climate crisis. ESG in the widest possible sense will no longer be a ‘nice to have’, but will likely become mandatory. Businesses need to ask themselves what they are contributing towards reducing CO2 emissions throughout the entire supply chain, for instance, and start studying the long-term sustainability of products from cradle to grave.
Said Jones: “The journey really starts now, and we need to have a deep sense of responsibility for everybody on the planet, not just the people within our building. We must think about the entire footprint of the office products industry globally. What are we doing as a consolidated effort, with a common map of the future concerning our contribution to Earth’s crisis?”
SUCCESSION PLANNING
Dealing with the “uncomfortable truth” of an ageing industry and not enough young people joining, Jones – echoing many of the thoughts of the panel discussion the previous day – highlighted the urgency of making our sector more attractive.
The pandemic has reset the world of work with the acceleration of hybrid working and work-from-home, coupled with the extraordinary and rapid power balance shift from employers to employees. “We, as employers, have got to confront all of these issues. We now know in the wider context of the Great Resignation that the existential impacts of COVID are significant – people are leaving relationships, moving house and changing employers. They are thinking differently,” stated Jones.
Another aspect to bear in mind is the changing of the guard as Gen X begins to leave the workforce in the next decade or so. As these employees depart, the question is: who will take up the mantle as the next leadership team, carrying the business into the future?
TOOLS OF THE TRADE
To create order out of chaos, Jones shared a couple of tools he uses to make sense of everything. Always at the ready with a fitting acronym, he talked about ‘DOT on the horizon’ whereby DOT refers to the ‘direction of travel’: “It’s a highly useful tool to ensure everybody knows broadly where you’re heading, especially as it’s incredibly difficult to navigate detail by detail given the very chaotic environment we’re currently working in.”
He suggested accepting that the journey is never linear, with bumps along the way. You have to be ready for setbacks, but make sure your main effort is always behind the DOT.
Creating a risk register is useful, but it needs to be kept up to date. How many CEOs had a pandemic on their list before 2020, for instance?
Jones also referred to a valuable tool called a ‘priority matrix’ which enables users to focus on which ideas should have resources and effort put behind them. Within the matrix, ideas are placed in boxes depending on their ease of introduction – easy, medium or difficult – what the impact will be on the business, and whether or not they are in your control.
Jones said tools such as these enable information to be filtered appropriately and action to be taken: “In the age of entropy, action is absolutely everything. We all have a vested interest in keeping this industry sustainable and great, and playing our part beyond 2030.”
Phil Jones
