Group Newsletter ISSUE 6 | JULY 2019 • SPOTLIGHT ON: NORDICS • THE FACTORY OF THE FUTURE • MY BRANCH: MARTA GRIGOLIN • GET TO KNOW: ANDREW SILVERBECK, GROUP CFO Contents CEO’S “We need to show that we have a business and FOREWORD 1 a strategy that is capable of delivering growth in all conditions.” We can’t simply rise and fall Show them how we can help with the tide. That suggests we to reduce cost and increase CEO’s aren’t in control of the future of efficiency. Discuss the opportunity our business. Instead we need of condition monitoring and 2 3 4 to show that we have a business predictive maintenance for Foreword and a strategy that is capable of RUBIX MOVES TO EXCELLENCE IN PROJECT GOLD SET extending the life of the equipment delivering growth in all conditions. in their plants, avoiding costly SINGLE OWN BRAND CORE DISTRIBUTION TO RELEASE CASH replacement or damaging FOR HAND TOOLS Things like the PMI are helpful downtime. Suggest our own Rising above the tide because they offer an insight into brands as high quality lower cost what our customers are dealing alternatives to the brands they with right now, and the challenges have used in the past. Across the eurozone, the they are facing. That helps us to 5 6 7 Manufacturing Purchasing think about the questions to ask, Opportunities for conversations SPOTLIGHT ON: NEWS THE FACTORY OF Managers Index (PMI) for May the conversations to have and the like this will vary depending on NORDICS THE FUTURE was below 50 for the fourth month technical expertise we can offer. the customer, their sector, the in a row. At 47.7, down from 47.9 health of their order book and a in April, it was one of the lowest We exist to keep European number of other factors. But, the readings since 2012. manufacturing moving. The Rubix opportunity for that call or visit name and brand demonstrates will always be there. The PMI is a key indicator of our focus on problem solving. That 8 9 10 economic health. Anything over 50 is what we do. We offer advice Whether your customer is growing indicates that manufacturers are and apply solutions that solve the fast or is concerned about a MY BRANCH: GET TO KNOW: KEY ACCOUNT seeing an increase in orders, while manufacturing and processing slowdown, there are products MARTA GRIGOLIN, ANDREW SILVERBECK, UPDATE anything below 50 shows that they problems of our customers, and services that we can provide are falling. VENICE, ITALY GROUP CFO advancing their businesses. to help them. This is how we demonstrate that Rubix is a The PMI scores must not be taken A shrinking order book is a problem resilient and growing business, as indicators or explanations for our for our customers. They will be taking market share from the performance. Instead, they provide looking for ways to protect their competition and keeping our useful context and help to shape the margins as sales decline. customers’ businesses way we engage with our customers. moving forward. This is the time to demonstrate We should always be ahead of the our multi-specialist approach market. So, if the market is growing, with a leading product offer and Martin Thomsen Have you got a story you would we grow faster. If the market is complementary value added CEO like featured in the next issue? shrinking, we demonstrate that we services. Send it through to: are able to grow regardless of how [email protected] the economy is performing. Delivering our Strategy “One of our priorities for the next three years is to establish Rubix as Rubix moves to single own brand a multi-specialist with a leading product offer.” for hand tools: Current landscape of own brands: Rubix has moved to a single own brand for hand tools. We catch up with project managers Nathalie Limousi, Product Development Manager, and Peter Lazenby, European Own Bearings & Linear Pneumatics, Flow & Protection, Safety, Motion Hydraulics Hygiene Brand Development Manager, to find out more. Where and when are we availability and a lifetime warranty, Safety & cleaning, site safety, doing it? we have a good story to tell our hygiene customers who previously bought Pneumatics acc. GISS hand tools from us. limited range What is happening? We launched in France at the end Possibly rebranded 2020 of May. We go live in Benelux in Short range One of our priorities for the next July and then we’ll go out to the UK Are we doing similar things in three years is to establish Rubix as and all other markets by the end of other own brand categories? a multi-specialist with a leading September. product offer. To support that effort, Yes. For example, in machining we we are combining two own brands What are we telling our still have an overlap between Giss for hand tools into one. There are no and Roebuck on cutting tools and longer hand tools available under customers? abrasives, so that’s something we Tools, Equipment & Mechanical PT & the GISS brand and – as a result will address next year. Machining – the existing Roebuck offer has This is about getting the best of Consumables Gearboxes / Motors evolved and become even stronger. both worlds in an expanded range of hand tools that offers consistency How are our own brands across markets and sites for our performing so far this year? Why are we doing it? international key accounts. We have also been sharing the new Overall, we are seeing organic Hand tools With only one own brand for hand catalogue with our customers to growth of more than 5%. Mecaline tools, we improve our purchasing explain the change. sales have already doubled and Monoblock, indexable, power. Increased volumes ensure Giss has been introduced in several accessories better prices, and therefore margin, Maintenance & geographies. We look forward to (designed for production as well as availability. All this leads to Won’t this make the GISS consumables, welding, seeing the results of the Roebuck purposes) more sales opportunities and better abrasives, chemicals brand weaker in its main launch later in the year. Chains, belts, motors, customer experience. markets? ironware, couplings What’s next for own brands? How are we doing it? No. GISS will continue to be a very Maintenance basics / important part of our portfolio of So much! We are finalising a We have converted 1,200 GISS own brands but will have a sharper fasteners program, developing our Machining for maintenance stock keeping units (SKUs) and 1,800 focus on PPE now that Roebuck Fasteners pneumatic range and preparing a purposes (currently merging and Roebuck SKUs into 2,400 SKUs in the is the only one offering hand tools. (2019 Q3: France only, 2020 lot of innovations for 2020! possibly rebranded in 2020) new Roebuck range. With improved quality, range, Q2: European launch) Delivering our Strategy orders that have been received “We need to be so much more than Excellence in Core Distribution through the day. At the moment, we have a number ‘box-movers’. However, if we don’t get the of orders each day that we don’t manage to package for delivery ‘box-moving’ right, nothing else matters.” until the next day. As soon as that happens, you are failing to meet Excellence in Core Distribution is one of the Group’s customer expectations. key priorities for the next three years. We caught up What can the branches do with Djamel Zanoun, Group Logistics and Supply Chain to help? Director, to find out more… Branches are key to the success of our strategy. We need feedback on delivery performance, clear and direct communication with the Why are we focussing Why aren’t we meeting What are we doing to distribution centres (DCs) and, most on distribution? customer expectations now? improve in the importantly, to trust the processes distribution centres? we are putting in place. To be successful, we need to be As always, it comes so much more than ‘box-movers’. down to a number We’re looking really carefully at our What’s next? However, if we don’t get the of interrelated processes. We have shared several ‘box-moving’ right, nothing else factors: stock best practices across the group, and We are going to matters. It’s difficult to engage with management, put in place customer focused KPIs. pilot technology customers in conversations around our suppliers’ that gives our value-added services if we can’t get relationship and Looking at our daily performance customers products to them on time and in full. performance, the improves our results. We have now the delivery structure of our delivery network, reached +98 % of reliability. Our notifications When you look at the details behind how we work with delivery biggest challenge remains now they would expect our customer survey results, delivery companies, and the quality of the within our suppliers’ performance (known as track and performance is something that processes in the distribution centres. and order management system. comes up all of the time. We have trace), based on their experience no choice but to improve. of shopping in their personal How will the structure of the How are we working with lives. That means they will get delivery network change? our delivery companies confirmation that the order has What do customers expect been received, notification that to improve? it has been dispatched and an from us? Deliveries will go directly from the estimated delivery time on the distribution centres to the customer Where possible, we are pushing delivery day. When people order products for site.