Page 7 - BOSS Today Issue 10

Sean Starkey, chairman, annual catalogues. That needs Michael Gardner, that says the FM part of the
BOSS Federation to be addressed. It is stifling new chief executive, market is worth about £5bn on
Manufacturers Forum products’ route to market, and BOSS Federation an annual basis. If we look at
“Logistics infrastructure and cutting out the manufacturer.” “There has already been a switch what has happened in America
enhancements have changed back into the UK for some - where we have a wholesaling
dramatically with third party Robert Baldrey, Group manufacturing operations. We business as part of our group -
players being involved. We are chairman, Vasanta lost our manufacturing base the big wholesalers in America
seeing a number of changes in “Look at technology. We have in the UK many years ago, but have about 20 per cent of their
the market with Office2office’s invested £20m in automating now that with the difference in turnover in FM products. I can
Truline solution. More of the our warehouses in the last ten the exchange rate, problems see that part of the market really
same is vital as we try to take yeas, and as a result massively with importing and issues growing. We could be selling
costs out of the market. When boosted our productivity rates, around tariffs, we have to start hard hats and rock salt as well as
one’s top line isn’t growing it’s which means we can give looking internally and putting pens and printer cartridges.”
absolutely vital to achieve the the same service to a dealer more money into our old
margin by cutting costs without and end user but at a much manufacturing infrastructure Michael Gardner, chief
affecting front line services. reduced cost to serve. Actually in the UK.” executive, BOSS Federation
There are many ways that can keeping up with IT and the latest “If you looked 30 years ago at the
be done. One example that a lot development systems is a really Sean Starkey, chairman, particular bag of products sold
of manufacturers and resellers important investment.” BOSS Federation by the office products industry, it
are using is back calling, which Manufacturers Forum was largely paper and traditional
has become quite popular in LONG-TERM UK “EOS will continue to grow, but stationery products. 50 per cent
recent years. Resellers are using IMPROVEMENT at a much reduced rate. It is now is EOS, with more and
their empty vans to create some Geoffrey Betts, managing well known that EOS products more hygiene products and
revenue, but by the same token director, Stewart Superior provide a much smaller FM products. There is no end
manufacturers are not paying “The UK in terms of gross profit margin for the to the supply of products. It’s a
the same sort of rates that they manufacturing will always have marketplace. That’s why it’s vital one-stop single point of supply,
were previously by supplying a problem trying to compete to look at new products such and more and more of our
directly into the resellers. It’s a with the Far East as it stands, until as FM. They are a lifeline to the customers are saying: ‘We want
good saving – it’s a welcome China moves its exchange rate, or office products market. They you to supply everything. We
solution for all. At dealer level internal pressures means goods tend to be more margin rich, don’t want to have to go out and
the two wholesalers are creating become more expensive - which but also present more growth barter or negotiate.’ One stop
third party solutions, and that they are, but they still have to go opportunities. Early adopters shopping is with us. We have
will continue, but there is a a long, long way before they are in those categories will grow developed it as an industry and it
danger there to some degree as expensive as they are in the from strength to strength. The is working well.”
because resellers are becoming UK. There may be an opportunity contacts are quite different in
ever more dependent on for UK manufacturers because those markets both at end user
wholesalers. That’s fine, but it there is a demand for something level and in the office products n Watch the interviews in full,
does stifle to some degree the that takes 12 weeks to come marketplace. But it’s really a download a QR code reader
growth of new products into from China when you can get it matter of being early adopters.” for your iphone or smart
the marketplace. Resellers are the next day in the UK. But we phone to scan the QR code
becoming dependent on the are still going to see the Far East Robert Baldrey, Group above or watch on
two organisations that to some dominating manufacturing for a chairman, Vasanta www.bossfederation.co.uk/
degree are constrained with long time.” “We have just done research bosstodayTV

November/December 2011 | BOSS TODAY 7

Boss p6-p9.indd 3 15/11/2011 12:24