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Supplier Summit 5 Nov. 2013

Sourcing City - Purple Club
by

Kenn Hamers

on 11 April 2016

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Transcript of Supplier Summit 5 Nov. 2013

Introduction Presentation
Welcome
Aims
Discuss important
issues and opportunities
facing industry suppliers
today
Create relevant
feedback
to distributors
Make recommendations
to our trade association
(BPMA)
to consider
taking action
Agenda

Decide / Vote on Discussion Topics
Breakout Groups Begin
11.30 Morning Tea & Coffee being served
Breakout Groups cont’d / Presentation Preparation
13.00 – 14.00 Lunch in Main Restaurant
Presentations / Action Plans
15.30 Afternoon Tea
Wrap Up
Numbers
Graphs
Industry Overview
Distributor Overview
Importance of the £1million club
Regional Influence
Where possible
address issues
and
action opportunities
2013
Distributor
Numbers
Ceased
Trading
Distributor
Companies
Debt
Position
Cash
&
Stock
Margins
2013 to date Distributor Analysis
2013 to date Market Analysis
Market
Growth
4% UP
DOWN
UP
UP
FLAT
DOWN
Distributor Margins
(incorporating brand/business protection).
How do we prevent/react to internet trading /distributors using loss leaders
(or single digit margins)
to try to gain market share
and in the process driving down
pricing and value to end users ?
Industry Destabilization
Lack of real partnership between distributors and suppliers.
Unrealistic product expectations.
(Buying an 8p pen and expecting
the ink to last 12 months)

Knick Knack Trading
distributors who believe they trade in toot and sell accordingly. Their standards (and expectations) are low. This drives down perception of whole industry to end users. How do / can we limit the damage this causes ?
Credit Risk
some distributors still play fast and loose with credit, using some suppliers as a bank. This has become almost acceptable…should it be ?

Periphery Companies
Currently where everyone is visible on the internet, can we create a situation where ‘genuine distributors’ are given more favourable purchasing terms than say an ‘Office supplies’ company placing a one off order?

This would need a substantial difference in pricing not just a token discount. Many periphery companies are selling at a very low margin sometimes not even 10%. This has a detrimental effect on our industry as a whole, devaluing our products and creating more and more problems for core distributors.

Suggested
Breakout
Questions

Service Level
Issues
We are the most service orientated nation in Europe with UK customers demanding exceptional service levels, graphic design, idea generation, fast response times and innovative and proactive responses to requests.
Suppliers are often criticised for not performing to these high standards.
There is often little recognition of the resources and manpower involved, and that the costs are reflected in the price of the product.
Industry Commerce
Chain
What is the impact of distributors going directly to the Far East?
Should industry regulations be put in place?

How many suppliers have a direct and a trade division? And what impact does this have on the industry?
Product Trends
and Compliance
If purchasing trends are changing, e.g buying from India/Europe instead of Far East, what issues or benefits are there?

How will compliance affect your business and the industry?
Return on Investment:
Exhibitions & Events
Are there too many or not enough exhibitions, roadshows and customer open days?
What works well, what does not work well, what makes a ROI, how would you like to see the calendar balanced?

Full transcript