1. 01
THE MAGAZINE FOR REXEL GROUP EMPLOYEES – MARCH 2012
The green
house
effect:
step into the
home of the
future
PAGE 16
News Light fantastic The X files
Updates from New opportunities Remote working
around the in commercial in Arkansas
world p04 lighting p12 p18
www.interaxionplus.com
2. CONTENTS: MARCH 2012
Welcome AROUND OUR WORLD IN CONVERSATION
I’m very pleased to introduce your
new-look Interaxion magazine. CEO
04-05
News round-up of local and
Group events, initiatives and
board in February marked the start of
the latest chapter in Rexel’s story, and achievements from across
the updated magazine – with the issue the world
numbering re-starting from one – is a
We have refreshed the design and ECO-AWARENESS 15 Two employees discuss their
collaboration to deliver a large order to a US base
content, with additional sections
alongside the regular ones you’ve told 06 A look at the ideas that came out of the in the Middle East
us you appreciate. Our intention is to Eco Days campaign
highlight the key areas of our business
and our all-encompassing strategy of CUSTOMER INSIGHT
sharing core values, business practises
16-17
STRATEGY IN ACTION
and proximity to customers.
I’m sure you will also appreciate
the launch of Interaxion Plus (www.
07 ABM Rexel in Spain has set up a new One customer talks about
organisation to target customers directly their work with Rexel on
interaxionplus.com), a website that The Sigma® Home in
includes supplementary information, the UK
photos and resources on the articles TEAM FOCUS
you read in the magazine.
Communication works two ways so
I encourage all of you to contact me
08 The BizLine Product Management & TALENTS
Marketing team talks about developing and
directly (pgiet@rexel.com) to share
your ideas and provide feedback
delivering products to market 18 Two employees discuss the challenges
and highlights of their remote locations
about Interaxion and
our activities.
A LEARNING CONCEPT
I hope you enjoy
09
this latest issue. HOT TOPIC
How the Blue Ocean Strategy is helping
Pascale Giet guide employees’ innovative thinking 19 Views on electric vehicle charging
stations from Rexel employees
Group Senior Vice President,
Communication and
Sustainable Development OUR MARKETS: INDUSTRIAL
10-11 Onexis in the Netherlands is
Wherever you see these symbols: using social media to position itself as a “Solutions
& Innovations provider”
You can read more on the
new Interaxion Plus website
(www.interaxionplus.com)
SPOTLIGHT
Find out more about
12-14
FEATURE PHOTO
this subject
Teams in Germany, the US
Get in touch and/
and Canada discuss how they are leveraging the 20 Storel’s work on the Royal Swedish
green opportunities in the energy market Opera House, Stockholm
or take action
Director of publication: Pascale Giet. Interaxion is published by the Rexel Communications Department,
Editors-in-chief: Madelene Smith, Karl-Stéphane David. 189-193 Boulevard Malesherbe, 75017 Paris.
Assisting contribution to this issue: Colin Daly, Ciska van der Garde, Email: interaxion@rexel.com
Helen Downs, Mark Durant, Maria Cristina Gomes, Adrien Kaiser, Scarlett This publication is intended exclusively for internal distribution.
Lu, Christian Roche, Beatriz Ortega, Asmae Tahari and Karen Warlin.
When you have Design and production: Redhouse Lane Ltd. Interaxion is printed on paper that is 100% recycled and the inks are
finished with this Printed by: Newnorth Print Ltd. vegetable oil based. Interaxion carries the FSC logo, which is a
magazine please Photo credits: iStock, Bill Adler, Cyril Bruneau, Rickard Kilström & the guarantee that the paper can be traced back to a sustainably
recycle it. Royal Swedish Opera, Brendan MacNeill, VEV and Pieter de Zwart. managed forest. This material can be disposed of by recycling.
02
3. FIRST WORD: RUDY PROVOOST
Rudy Provoost Chief Executive Officer
I’m delighted to take the helm at such an 2011 KEY FINANCIAL FIGURES
exciting time for the organisation. Over the last A strong performance in the fourth quarter of 2011 saw Rexel’s full-
few months, I have been meeting and talking year sales increase 6.2 percent on the previous year:
with you, our customers and suppliers across
the globe and I’ve been impressed with the Sales: €12.7billion
Gross Margin1: 24.6%
excitement, energy and enthusiasm everyone
EBITA: €720million and EBITA1 margin at 5.7% of sales
has shown.
Free cash flow before interest and tax: €601million
With strong results for 2011 (see panel), there’s Net debt reduced by €192million over the year, net debt stood at
good reason for us all to be proud and passionate. €2.1billion as at 31 January 2011.
I realise the current economic environment is 1
Constant and adjusted = at comparable scope of consolidation and exchange rates, excluding the
uncertain and we can’t hide from the fact that the situation non-recurring effect related to changes in copper-based cables price and before amortisation of
is difficult. However, I am confident that we will continue purchase price allocation.
to outperform GDP growth in our countries, generate
solid profits and cash-flow, maintain a strong financial
www.rexel.com/en
structure and deliver value for all. There is a bright future
for us, even in this environment, with a lot of opportunity
and potential.
To maintain our performance at a high level, we need Thirdly, our culture must be customer centric. Watch a video
message on
to focus on the vital aspects of the business. I’ve identified To achieve this I want to see a lot of co-operation between the 2011
four priorities for the future to keep the organisation the teams. There is a great deal of talent in the organisation results and
an interview
moving forward. – let’s tap into it and unleash our collective potential. By with Rudy
First of all, we need to make sure we keep driving working together we can become even stronger and Provoost. Both
are available
profitable growth. It is, and will remain, a key priority for exceed our customers’ expectations. in multiple
us all. In my visits to different countries, and in discussions Last but not least, we must embrace operational languages.
with teams, I’ve seen a lot of innovative thinking in specific excellence. Yes, we have best practices, but there are
strategic organic growth initiatives, such as lighting, some areas where we can do better – for example,
photovoltaic and wind. in logistics, pricing, IT and some of our commercial
We’re also investing in international projects and we’re processes. There is always room for improvement.
developing vertical markets, from oil and gas in Canada to I’ll be working closely with the
utilities in the Nordics. Profitable growth should remain one management teams to ensure we focus
of the key priorities for investment, including acquisitions. on these vital areas and continue
Secondly, we need to put the customer at the centre to build on the momentum of our
of everything we do, and this means managing our assets accomplishments so far. I’ll also be very
very well. And I don’t just mean financial assets. present in all countries, working with
I consider the Rexel brand as an asset, I consider you in the daily execution of
customer information as an asset, I consider the people our ambitions.
we have, the teams we have and the talent we have as I have a great deal of confidence in
assets. By adopting a long-term approach we can turn all of you and it’s your contributions that
these assets into something really positive. will make 2012 a successful year.
“I consider the Rexel brand
as an asset, I consider customer
information as an asset,
I consider the people we have,
the teams we have and the
talent we have as assets.”
Rudy Provoost, Chief Executive Officer
www.interaxionplus.com 03
4. AROUND OUR WORLD
Promoting our USA: GEXPRO
Landmark for US nuclear
customers’ The first US nuclear power plants to
be built in 35 years will be created with
expertise
the help of Rexel International Projects
Group (IPG) and Gexpro.
New reactors are being built at the Virgil
C Summer Nuclear Station near Jenkinsville,
South Carolina, and at the Alvin W Vogtle
FRANCE: REXEL Nuclear Power Station in Waynesboro, Georgia.
Rexel IPG and Gexpro have been selected
A new website has been launched to help people renovate as suppliers for non-safety-related lighting,
the heating and ventilation systems in their homes. conduit and fittings for the US$10billion facility
Rexel France’s Mon Installateur Expert (My Expert in South Carolina and for non-safety-related
Installer) provides advice and guidance on thermal electrical bulk electric materials for the construction
systems to help users achieve greater comfort, energy savings in Georgia.
and air quality. In just 40 days, the Rexel IPG/Gexpro
“With Mon Installateur Expert, the user is guaranteed reliable team developed a full ISO-compliant
installations and quality products. It allows people to contact quality assurance (QA) programme (which
knowledgeable, qualified installers – who are customers of usually takes a year to complete) for the
Rexel France and experts in thermal installations – located in South Carolina plant, which helped to beat
their local area,” says Christian Roche, Rexel France Customer competition from eight other suppliers.
Marketing Manager. “People can also use the tool to find advice
People “Our QA training and experience put us in
and financing to organise and complete their renovation.” a unique position to serve this market,” says
Rexel IPG’s Global Quality Manager, Charlie
Booth. “We are supplying electrical materials,
Visit the My Expert
READ
Installer website at: www. for non-safety applications, to every site under
MORE...
moninstallateurexpert.fr construction in the United States. There are
only two at the moment, but hopefully there
will be more to come.”
SWEDEN: STOREL GERMANY: HAGEMEYER
Electric goes digital Five-year VW deal
Storel has created the Elektrikersidan Facebook Hagemeyer Deutschland has an excellent service that adds value. I’m
page to allow electrical and engineering students reunited with Volkswagen AG after sure that, with our determination and
to contact each other, gain knowledge and share signing a framework agreement to dedication, we will be able to achieve
opinions in a forum that aims to promote future provide the vehicle manufacturer this perfectly.”
electricians. with electro-technical items. READ
MORE...
Included on the pages is a series of videos that follow The five-year agreement also
newly trained electrician Gustav Helgesson as he gains onsite gives Volkswagen the opportunity
experience in a variety of settings, including a wind turbine to optimise its processes
farm, rock concert, amusement park and shopping mall. through cost-centre supply,
“More than 500 million people use Facebook and electrical electronic connections and
students are no exception,” says Anita Jansson, Storel’s cost savings.
Market Communication Manager. “The electrician profession is “The agreement confirms
changing and there will be a lack of educated electricians in the the quality of the work that
near future. Storel wants to take a leading position on this issue we have delivered to the VW
and start to develop the next generation of electricians.” corporation in the past, as
well as our current appeal as
a partner for the industry,”
says Industrial Sales Director
more and to watch the Gustav videos Roman Hegenbart.
“Our priority is to provide
04
5. GLOBAL
Taking the initiative on ethics Welcome
Rexel has welcomed eight new businesses
One year ago, an International Reducing the carbon footprint – with to the organisation since November 2011. The
Ethics Initiative took place across the a fleet of fuel-efficient company cars that latest additions to the Rexel Group are Inoveha
Group. It involved local brainstorming have lower carbon emissions. and Eurodis in France, Delamano and Etil in
Brazil, V&F Tecnologia in Peru, Liteco in Canada,
sessions between employees and Addressing equality and discrimination
Wilts Wholesale Electrical in the READ
a commitment by country-level – by having clearly defined recruitment and UK and La Gange in Belgium. MORE...
management committees to consider promotion processes, or running a gender
the ideas and develop concrete equality plan.
local action plans, supported by Improving GLOBAL
poster campaigns. confidentiality – Social commitment
The brainstorming sessions by training staff on the
As part of its commitment to employees
received global support and privacy act and defining and wider society, the Rexel Group has partnered
revealed that the main ethical what is open for public with non-profit organisation Ashoka to support
issues staff face centre around information from a social entrepreneurship. The Group has also
environmental care, equality and respect, business perspective. committed to the United Nations READ
relationships between employees, by signing the Global Compact. MORE...
relationships with customers, READ
MORE...
and confidentiality and
BRAZIL: NORTEL
transparency of information.
Businesses across the
Left: meet Albert, The next generation
a character from Rexel HQ’s
organisation have identified ways to make video series addressing Rexel banner Nortel Suprimentos Industriais
issues in the workplace. operates a talent generation programme to attract
improvements in these areas. Examples
Read more and watch the technical students specialising in areas such as
from local ethical action plans include: videos on Interaxion Plus.
electrical and mechanical studies.
In 2011, 60 students completed READ
the training. MORE...
Interaxion’s Energy Efficiency
online! website NEW ZEALAND: IDEAL ELECTRICAL
Visit www.electrical-efficiency.com, a hub
Art gallery is an Ideal start
You can read for reliable news and information relating Rexel’s subsidaries in New Zealand have been
more on the new to the issues associated with the use of rebranded under a single banner: Ideal Electrical.
Interaxion Plus electricity and energy. The news comes as the historic Auckland Art Gallery
website wherever you You can sign up to get the latest electrical- re-opens its doors to the public after a four-year
see this symbol. efficiency site updates on Twitter, Scribd, renovation. Ideal Electrical provided expert lighting
Facebook and Slideshare. solutions for the venue.
www.interaxionplus.com Visit the Ideal Electrical website:
www.ideal.co.nz
Read more about the Auckland Art
Gallery: www.rexel.com/en/press/news/
USA: GEXPRO
Greener gas stations CHINA: HUAZHANG
Award winners
Gexpro, Blue Earth, Inc. and eCORE Technology have signed
Rexel’s Huazhang Automation has been recognised
a joint development agreement to provide energy-efficiency
as Best Supplier 2011 by VMI, the leading global
upgrades to more than 2,000 independently owned retail
manufacturer of tyre building machines. The
petroleum/convenience store sites operating in select company received the award for customer
North American markets. service excellence: especially the initiatives it has
The programme will assist owners who are seeking to reduce launched to simplify procedures and maximise
their total energy consumption through lighting-efficiency reliability. The successful partnership saw VMI
improvements and new, highly efficient motors for their refrigeration order an estimated €3million worth of products
and energy-management systems.
from Huazhang in 2011 and this
figure is expected to rise as VMI READ
Gexpro will supply equipment, including lighting and motors
expands its operations in China. MORE...
in Phase One of the programme, which is projected to cost about
US$60million and is expected to be completed within two years.
www.interaxionplus.com 05
6. ECO AWARENESS
Rexel employees around the world are constantly realising new ways to increase energy
efficiency, but it is often a challenge to share best practices with colleagues in other countries.
Green goes global
T
he Eco-Days initiative is a week-
GREEN BUILDINGS
long awareness campaign,
supported by a website, which When Newey & Eyre, one of Rexel’s leading
offers daily information on different UK banners, moved to a new head office in
banners’ initiatives/improvements. early 2011, energy efficiency was made a
top priority.
During the first campaign, there were
Newey & Eyre’s new building in Eagle
quizzes and tips on various aspects of Court, Birmingham, provided an opportunity
saving energy in the workplace, such as for the business to cut down its power usage
implementing lighting retrofit solutions and showcase its own products and ideas.
and reducing electricity consumed by “Our three aims were to maximise natural
light, choose the most efficient lamps and
heating and air conditioning.
equipment, and install easy-to-use control
“Accessibility was the priority for the
and monitoring devices,” explains Category
2011 Eco-Days campaign as we wanted to Manager Bob Masters, who helped design,
reach 100 percent of the Rexel population,” source and oversee the project.
says Xavier Galliot, Sustainable Development The entire building was fitted with
Director for Rexel. automated T5 dimmable lights, which
automatically adjust in response to
“We created a dedicated website in
movement and use at least 90 percent less
eight languages – a real marketplace where energy when no one is in an area.
employees all over the world can find out what The reception also houses a customer-
others are doing and post their own initiatives facing Powerlogic module, from Schneider
to create a forum of ideas.” Electric, that displays the amount of electricity
During the campaign, from 14-18 on each circuit of the head office, as well as
the total power used in the building.
November, people posted a range of energy-
“The display lets visitors know as soon
saving methods and tools, from the types of as they arrive that we take the environmental
lights and electricity-monitoring equipment challenge seriously and that we’re
used in offices, to ways to automatically shut experimenting with new techniques to cut Newey & Eyre’s new building at
down all IT systems in the evenings and at down our carbon footprint,” says Bob. Eagle Court in Birmingham, UK.
weekends.
Bright ideas from Eco-Days
15 Staff at the ABM Rexel headquarters
in Madrid are keeping track of power
usage in their offices, logistics centre and
US$129,360
The 970m2 (10,500ft2) Rexel USA delivery
cafeteria with a smart-monitoring system hub in Mansfield, Massachusetts, now saves
that has 15 different measurement points 863,000KWh of energy per year – equal to
and is made by Schneider Electric. USD$129,360 – thanks to upgrades that
50% include lighting fixtures, lamps and motion-
detector switches.
Since installing
photovoltaic solar panels,
the Regro branch in
60% Norwegian banner
Elektroskandia Norge has
embraced cloud computing to reduce the
For more information about the
Innsbruck, Austria, now number of centralised IT servers it uses. energy-saving measures shared by
produces roughly 50 Four years after it adopted this approach, Rexel employees around the world,
percent of the energy it energy consumed by the servers has including a video about the Newey & Eyre
uses daily. decreased by 60 percent.
06
7. STRATEGY IN ACTION
The Genera phenomenon
Spain’s Genera project is not only embodying Rexel’s focus on proximity, but proving
to be a great success against a tough economic backdrop. Interaxion finds out more.
W
hile Europe is experiencing A vertical approach
economic difficulties, ABM It was no coincidence that the Genera
Rexel in Spain has been able model worked so well with a hotel chain: the
to generate new business thanks to the organisation is dedicated to targeting vertical
introduction of a bespoke approach. It’s sectors that have been least affected by
called Genera and it might well change the economic crisis in Spain, such as retail,
the way you think about how you market industrial maintenance and tourism.
your products and who you sell them to. “Tourism made up almost 11 percent of
The project’s foundations lie in Rexel’s Spain’s Gross Domestic Profit in 2010,” says
global strategy and business model, which Juan. “Through Genera, we’re aiming to both
promotes approaching the end-user and find new accounts and build relationships
greater proximity to customers. ABM Rexel with our current clients in vertical sectors
used this tactic to such success on an like this.”
existing customer, Melia Hotels International, Genera is now working on major
that they decided to set up an organisational relamping projects for companies such
structure to extend the approach to other as Pandora, Orange and Top Rank’s
customer segments. And so, Genera Bingo clubs in Spain. It is also building
was born. relationships with large customers such
“We started our relationship with Melia as the utility firm Endesa and industrial
in December 2009, supplying only lighting customers such as Michelin, Cofely (GDF
material,” explains Juan Rozas, Genera’s Area Suez group) and Alcoa.
Manager. “With 154 facilities across Spain, “All of our customers will benefit from
The Gran Melia Fenix Hotel in Madrid has benefitted from
Melia required centralised management of its the Genera approach. the Genera approach,” says Guillaume
account, but with a level of local care. Bonnet, Genera’s Energy Efficiency Manager.
“Since introducing this approach, Melia to its success are centralised management, “For example, we have been able to go
has asked us to carry out energy-efficiency local service, an energy-efficiency focus and directly to pastry company Panrico with all
audits in 42 hotels,” says Juan. “This has invoicing from local branches. the solutions we can offer them to reduce
helped us increase sales to this customer from Genera is organised by business units: key costs long-term. Even businesses that are
€800,000 per year in 2010 to an estimated accounts/large projects, public works tenders performing well still need to be cost efficient
€1million in 2011.” and energy-efficiency services. in this climate.”
Following the initial success with Melia, And instead of going through a contractor
ABM Rexel conducted a pilot of the Genera or installer, the commercial team works directly International opportunities
organisation concept in 2010, using its existing with a range of end-users, particularly hotel and Though Genera is a relatively new
organisational structure to minimise investment retail chains, commercial centres, and major organisation for ABM Rexel, it has already
and set-up costs. The elements fundamental accounts such as Kraft, Nestle and Ferrovial. made an international impact – in 2012,
Melia has asked for the Genera model to
be used on renovation and new construction
“It is a great achievement that projects in seven hotels in Paris and two in
London – and is continuing to thrive in Spain.
we are not only able to adapt “It is a great achievement that we are
our business to a Juan Rozas
able to not only adapt our business to a
changing world, but Genera Area
changing world, but also increase sales,”
says Juan. “And with more long-term
increase sales.” Manager
agreements being introduced, the future
is looking good.”
www.interaxionplus.com 07
8. TEAM FOCUS: PRODUCT MANAGEMENT AND MARKETING TEAM FOR BIZLINE
The BizLine champions
Understanding the needs of customers in different countries and developing products to suit
them is all in a day’s work for the Product Management and Marketing team for BizLine.
Interaxion spoke to Marketing and Purchases Manager Florence Marcel-Cellière to find out more.
Can you explain what your use cable strippers to cut and strip their wires in two years, we have quadrupled sales of
team does? and cables. But in Sweden customers use sealing gels at Rexel!
BizLine is the Rexel Group’s private brand for knives, so the stripping tool just doesn’t sell. We are also proud of having developed
everyday equipment and commodities. Five of We have been working on bespoke 2012 a record 500 new products in one year. This
our team purchase and develop products to catalogues for France, Sweden, Finland, includes 300 unique products for Australia –
meet the needs of our different markets, which Belgium and Germany. We have also updated mostly cabling accessories, but also power
includes nine European countries, Australia and our graphic charter, which is sent to all of our tools; cordless drills in Sweden; hand tools for
New Zealand. The remaining four of us market the suppliers to ensure branding, packing and Germany and France; and fixings and cabling
products locally, merchandise them and produce promotional materials are consistent accessories for France.
essential communications, such as the country- throughout all of our branches. All of this was only possible through working
specific product catalogues. When I joined BizLine closely with Rexel teams and customers across
three years ago, we were only a team of three. Can you give an example of a all markets. This year, even more new products
But we’ve grown quickly due to our ambition to recent team success? will be launched, and we also hope to enter new
develop new products and duplicate the success In 2010, we developed and launched Bizgel markets in the near future.
we experience in France. – a sealing gel that is more resistant to adverse
weather and hardens quicker than similar Visit the Bizline
products already on the market. Sales of Bizgel website at: READ
MORE...
customers want? have grown this year to 18,000 bottles, while www.bizline.fr
We constantly work with customers and study sales for another supplier have remained stable
each market to discover how we can further meet at 6,000 bottles. That means that,
their needs. This is a relatively new approach for
us. Previously, we sold the products in our French
catalogue into all other markets. But through
research we have realised the importance of
recognising and catering for different habits.
For example, customers in France or Belgium
From left to right:
Daphnée Lumbroso,
Roselyne Belleau,
Sophie Astrie, Marc
Esnault-Flavien,
Florence Marcel-
Cellière, Rodrigue
Develter (back),
Gaël Lemeunier and
Alix Deny-Moreau.
(Marianne Bléry and
Sandrine Bontems
were not available for
the photograph.)
08
9. A LEARNING CONCEPT: BLUE OCEAN STRATEGY
Outsmarting the sharks
Is your product or service under threat from sharks?
Then it’s time to take a new approach to strategic business planning.
C
ompanies have long fought have a higher and longer-lasting value – which Manager for Rexel USA in Northwest
for competitive advantage, competitors cannot easily imitate – as well as Arkansas, led a team that was looking at the
battled over market share, and a significantly greater profit impact. wind power industry. “We asked customers
struggled for differentiation. But a simple Christopher explains: “The blue ocean what values are most important in their
methodology is helping Rexel employees makes the competition irrelevant, while a red purchasing decisions, and what Rexel can
think creatively about business issues ocean market is like an ocean of sharks chasing create to improve on existing solutions,” he
– and it is proving to be more than just the same piece of meat.” explains. The team presented its findings
an academic exercise. to the Executive Committee in February.
The Blue Ocean strategy provides a Local adoption, global impact In another workshop, Group Supplier
framework for teams to think innovatively Executive teams in Rexel are using the Blue Development Manager for Rexel UK and
about their customers, segments, products Ocean strategy to define their local business Ireland, Nigel Cheeseman, and his team
and services, as well as alternative industries, operating strategies. considered whether EVCSs represented
to increase their own profitability and deliver Finland’s management team organised a a global business opportunity for Rexel
greater value to customers. series of workshops over 10 months to generate (read more about EVCS on page 19). Using
“It’s not a question of layering service an innovative approach to their markets, using the strategy, the team identified a market
offers on to products,” says Head of Learning the Blue Ocean strategy to help reposition the opportunity worth in excess of €1.8billion
and Permanent Development Christopher role of the traditional electrical distributor. (total available market) by 2015.
James. “That just increases the cost structure Similarly, The Netherlands executive team “Blue Ocean guides the analysis of
and the workload for the business, which conducted a Blue Ocean workshop where they products and the value drivers for customers,
doesn’t lead to innovation.” succeeded in giving focus to, and establishing which in turn, determines the best suppliers,”
Followers of the strategy are required choice for, their strategic initiatives. says Nigel. “By asking how the market would
to envisage an entirely new market space – On an international scale, the Rexel Group develop in value terms, we can show
the “blue ocean” – in order to differentiate organised two global workshops with participants how Rexel can become the supplier
their offering from the competition. By from different banners to explore global business of choice for companies.”
comparison, a “red ocean” is a competitive opportunities in the wind and electric vehicle
market place, with similar products and charging station (EVCS) markets. Each team READ
MORE...
cost as the only differentiator. spent up to four months building a case study
There are more product launches in red to present to the Executive Committee.
oceans, but Blue Ocean solutions normally Earlier this year, Ben Newby, an Area
“The blue
ocean makes the
competition
irrelevant, while
a red ocean
market is like
an ocean of
sharks chasing
the same piece
of meat.”
Christopher James
Head of Learning and Permanent
Development
www.interaxionplus.com 09
10. OUR MARKETS: INDUSTRIAL
NOS MARCHÉS: DOMOTIQUE
The social
network
Innovative promotion is the hallmark of
an innovative business, which is why
Onexis is turning to social media to
reinforce its forward-thinking image.
E
stablished in November 2009, Onexis is “Industrial customers demand lean production
the industrial sector banner of Rexel in processes that achieve maximum efficiency with
The Netherlands. It currently serves two minimal resources,” says Onexis Sales Manager Marco
main types of customer: original equipment Krijgsman. “The most important requirements for a
manufacturers (OEMs) throughout the country steady relationship are technical knowledge, the right
and end-users, the majority of which operate in set of products and – especially for end-users – helping
or near Main Port in Rotterdam. Among them them reduce their costs.
are large-process chemical and petrochemical “With this in mind, we offer a range of value-added
enterprises, including Shell, AkzoNobel and Dow. services, such as vendor-managed inventory, e-billing,
Onexis’s OEM customers are mainly small and online catalogues and online ordering capabilities. By
medium-sized enterprises, such as machine and panel providing a complete solution for all their electrical needs,
builders, that buy systems and components from Onexis we help customers to cut down the number of vendors
and integrate them into machines and parts to be in their supplier base, consolidating costs and paperwork
redelivered to their own customers. into a single contract.”
Both types of customer rely on Onexis’s expertise to Onexis also broadcast its But it’s not always easy to connect with industrial
help them make better buying decisions. To live up to “Innovation tour” campaign customers through traditional channels, such as events
this expectation, employees and the services they offer on business radio and televi- and trade fairs, because they are classed as incentives
sion stations in The Nether-
must be up to date with the latest innovations and lands, which tripled the traffic by many customers’ compliance policies and so
technological developments. to the website. attendance can be low.
10
11. “We also realised that, for our communications to HOW THE BUSINESS WORKS
be truly effective, we need customers to respond to our
Onexis’s Technical Support team provides the
messages, otherwise we have no idea how well they are expert consultancy services customers need,
being received,” explains Onexis’s Business Development and backs up the Industrial Regional Account
Manager Theo Schiebroek. Management team, which is dedicated to
maintaining relationships with each of the OEMs.
The team knew they needed an alternative that allowed Account management for end-users is handled
them to have two-way conversations, which is why Onexis by the dedicated International Key Account
has embraced social media as a way of communicating Management (IKAM) team. Because some of
IKAM’s customers operate in several countries,
directly with customers. the team regularly collaborates with Rexel’s
International Project Group.
The social strategy
The whole team helped develop the social media strategy –
which is managed by Theo and supported by e-Commerce
Manager Edward Breedveld. As Theo explains, their “Social media is a smart communication tool that
approach grew naturally from the business’s core mission: becomes even more effective when it’s linked with other
“Innovation is in our genes – it’s what we do – so it was channels,” says Onexis Chief Commercial Officer René
obvious that we should communicate in an innovative way. Vermeulen. “For example, e-newsletters can direct readers
“Our communications formula is that every message to our website and YouTube videos can enhance online
we send has to have an innovative element, whether articles. Put together, they allow us to ‘keep the fire burning’
that’s promoting a new product or a new way to connect in our customer relationships.
with customers.” “The objective for all of this exposure is to create
In just over a year, Onexis has created a Facebook strong brand awareness: Onexis must be recognised as an
page, Twitter feed, banner advertisements and monthly innovative industrial distributor with value-added services.”
e-newsletters to help the business to communicate instantly
Onexis team members,
left to right: René
and/or regularly with customers. Meanwhile, videos posted The results
Vermeulen, Marco on YouTube and the Onexis website demonstrate the All of this social activity has helped increase website
Krijgsman and Theo business’s know-how and clarify its service offer. traffic, particularly after an e-newsletter is distributed. But,
Schiebroek.
Theo explains: “In talking with our customers, we learned Theo admits, developing a social media strategy requires
that they prefer to watch ‘how to’ videos for explanations continuous effort and there is still work to be done: “The
of our value-added services, like total cost of ownership number of people following us on Twitter has increased
reduction or technical support, which are very hard to explain substantially – and customers tell us in person that they
on paper. By embedding the videos in our homepage, we read the comments and online posts.
can outline our concepts in a very simple but efficient way.” “But, to be honest, we are not satisfied with the level
In January 2011, Onexis also broadcast its “Innovation of interaction because most comments are still posted by
tour” campaign on a business radio station and business us. We’re getting the exposure; we now need to work on
television station in The Netherlands, which tripled the traffic the interaction, and we’ve started to do this by posing
to the website. more questions via Twitter, to really encourage customers
The business is also endorsed by FME, a major industrial to respond.
association in The Netherlands, which includes the Onexis “Ultimately, communicating our value-added services
brand in its banners, e-newsletters and magazines, to help creatively, through social media, shows that we put
them reach an audience of around 12,000. As a result, all innovation into practice. Onexis is a new brand, so the
Onexis messages carry FME’s seal of approval. focus is on building awareness and, as an added benefit,
12,000
The size of the online
But that’s not the only advantage to this approach. The
team has found that using social media also makes their
traditional channels – including offline content, such as
we are gaining new customers.”
audience Onexis reaches printed catalogues, flyers and a glossy magazine, called
thanks to endorsements 24/7 – more powerful. QR codes in these printed materials
Find out more about Onexis at www.onexis.nl,
from major industrial guide readers to the online versions and to Onexis’s other on YouTube and by signing up to its
association, FME. online channels. Twitter feeds.
www.interaxionplus.com 11
12. SPOTLIGHT: ENERGY MARKET OPPORTUNITIES
Understanding the
The global need to save energy is creating exciting opportunities for Rexel to demonstrate
its vast expertise and interact closely with customers to develop bespoke solutions.
W
ith the rising cost of natural resources “For example, it’s not just about switching lamps.
– and the decision at the United Nations The new ones don’t work in the existing T12 fixtures, so
climate summit in Durban in December people will need to bring in an electrician to make the
to adopt a universal legal agreement on climate necessary modifications, but they won’t want to stop
change by 2015 – businesses around the world their operations to do so.”
are under increasing pressure to meet the energy-
efficiency challenge. Building relationships
Companies are now modifying their buildings and Instead of communicating through installers, the Energy
business strategies, from more efficient lighting to Solutions team changed tactics and spoke directly to
new market ventures, and Rexel’s experts are well end-users at industry trade shows and via direct mail and
positioned to take advantage of the opportunities telemarketing – an approach that is very much in keeping
and meet customers’ exact requirements. with Rexel’s overall focus on proximity. With their long burning
hours, parking garages
One particular market Mike and the team have
is one market Mike
been targeting is parking garages, due to their long burning and his team have been
A LIGHT-BULB MOMENT hours, generally old technology, localised ownership and, targeting with the
T12 campaign.
In July 2012, US government legislation will rule out therefore, tenant/operator confusion over the changes.
the manufacture and sale of T12 replacement lamps “We discovered that, more than anything, people
for fluorescent lighting in a bid to reduce energy wanted simple solutions and objective advice,” says Mike.
consumption. “So we knew our campaign had to cut through the vast
This means all T12 users – mainly commercial and array of product options and information out there.”
industrial buildings – will have to change their lighting For this reason, Mike and the team avoided the
systems. Given the fact that around 50 percent of standard product-based approach and designed the
commercial lighting is still T12, this is a massive task. campaign around promoting the benefits of making the
Far from being daunted, Rexel USA’s Energy Solutions change – including financial incentives, energy savings and
team immediately recognised the opportunities and created a free energy audit through Rexel – and offering solutions
a campaign to maximise business and profit from the new
legislation by offering customers tailored solutions.
“It’s a great opportunity for us, not least because we
that match the exact needs of each project.
They also developed tools, such as a sizing guide, to
help people quickly identify exactly what type of fluorescent
50%
The approximate
estimate the market potential to be around US$500million, lighting they currently have, and whether they’re affected by proportion of
but also because people don’t understand the hurdles to the change. For more information, the team provided commercial lighting
the changeover,” says Rexel USA’s Vice President of a simple web-based form people can fill out to request that still uses outdated
Marketing, Mike Fellers. advice from a member of the Energy Solutions team. T12 fluorescent lamps.
“We discovered that, more than anything,
people wanted simple solutions and
objective advice. So we knew our campaign
had to cut through Mike Fellers
the vast array of Vice President of
Marketing, Rexel USA
products out there.”
12
13. energy market
INNOVATION ON THE MOVE
Before creating the Innovation Mobile three years ago,
the Hagemeyer team in Germany knew two things: they
wanted to go directly to customers with their products
and they wanted to use something other than the
traditional brochure and website methods to do so.
After a lot of brainstorming, the Innovation Mobile concept
was born. Essentially, it is a car that is fitted out with a suite of
products, along a specific theme, that Hagemeyer supplies.
This year, the focus is on energy-saving lighting solutions,
industrial automation products, home telecommunication and
home automation.
From September to July each year, the car travels to every
single branch for one week. This allows customers to see how
different products can work together in a single, innovative
solution for more efficient energy consumption and lower
energy-usage costs
Sharing knowledge “If you can see first-hand how something works and
One of the biggest challenges for Rexel in navigating the new touch it or turn it off and on, it has a bigger impact,” says
legislation is the variety of solutions available to end-users, from the Florian Wacker, Hagemeyer’s Sales & Marketing Director.
vast array of basic alternative lamps on the market through to more “The Innovation Mobile has also been very good for building
technologically advanced LED systems. relationships with our customers because our staff are
“Many of our competitors are counting on customers to interacting directly with them and sharing their knowledge.
understand the legislation and know what they want. But we In turn, this has improved our sales turnover.”
think it’s vital for our employees to have a breadth and depth of
knowledge on the subject and then boil it down for customers to Inside the Innovation Mobile, which
understand,” says Mike. allows Hagemeyer to go directly to
its customers and show them how
With this in mind, the team developed detailed guides on the a suite of products can work as a
legislation, products and required training for installers and Rexel single solution.
employees, while the end-user campaign collateral was kept simple
and to the point.
And it’s working. The campaign has already resulted
in US$5million in committed sales and is tracking a further
US$12million in generated leads. The T12 web page is among the
top-10 most visited on the Rexel website and end-users are now
coming direct to the Energy Solutions team. Among these are a
small print shop and, at the other end of the spectrum, a group of
900 storage facilities.
But the benefits to Rexel extend far beyond providing tailored
solutions to end-users, says Mike: “By interacting with them directly,
we are building relationships and learning about
their needs – now and in the future. The decision
Read about the T12
to change will be made by the end-user and we campaign: www.
want to be their partner of choice.” rexelusa.com
www.interaxionplus.com 13
14. SPOTLIGHT: ENERGY MARKET OPPORTUNITIES
Customer needs
Each branch nominates one or two people to take charge
of the Innovation Mobile while it is on site and identify
which customers they will visit. Depending on the products
Left: The Innovation Mobile is
being showcased, employees may receive special training helping Hagemeyer get closer
to make sure they have all the information they need to to customers.
explain the solutions to customers. At the end of their
week, every branch produces a report highlighting exactly FURTHER EDUCATION
what each customer was interested in so the Innovation
Mobile continues to meet their needs. Hagemeyer in Germany has introduced new training programmes to provide
sales teams with more detailed technical knowledge of renewable energy.
“In the second year, everyone was very interested in
The energy consultant course is for account managers and sales teams,
Philips Lighting, which is why we have used them again,” particularly those specialising in building services. It covers a range of topics,
says Florian. “However, this year, there is equal interest from building construction and building physics, to equipment technology and
across all suppliers and for the solution as a whole. energy savings regulations. The aim is to increase employees’ expertise in
improving the energy efficiency of buildings – in particular, residential – by using
“The Innovation Mobile was created to increase renewable resources and, therefore, provide even better advice to customers.
customer awareness of our products and to show them The solar advisor programme is for sales teams, especially those involved
how intelligent solutions can reduce their costs. But in the in the photovoltaic and solar energy markets. The aim is to make them experts
three years we have been running the project, we have in all aspects of solar energy so they can better advise building suppliers in the
construction of houses. Everything from the logistics and technical aspects
also increased our own awareness of what our customers behind solar radiation, solar energy and photovoltaic systems, to identifying
need, and we are now even better at creating and marketing trends in residential housing is covered.
solutions to suit them.”
WINDS OF CHANGE
Renewable energy is big business in developers of wind-energy projects. 270MW – built recently by one of their key
Canada. In recent years, the country has “This was an unusual step for an electrical customers saw Westburne deliver more
seen the launch of several nationwide distributor to take, but it was essential for us than 500,000 metres of medium-voltage
programmes to boost its production to get a grip on what is a very niche market. cable, over 175,000 metres of bare copper,
and, this year, government investment We also recruited qualified engineers and hundreds of medium-voltage splices and
in Canadian wind energy is forecasted other specialists so we could communicate elbows, thousands of metres of PVC conduit
to reach C$1.8billion a year. with wind-farm developers at a strategic level.” and thousands of compression connectors.
Westburne, one of Rexel’s banners in Armed with an extensive knowledge Westburne has also been linking up
Canada, recognised the commercial benefits of wind-energy projects across Canada, with fellow Rexel banner Gexpro Services
of positioning itself as a specialist in wind Westburne was soon able to work with in the United States – which specialises
energy development. With this in mind, engineering, procurement and construction in tower internals, such as fabricated and
it has deployed a strategy – devised by (EPC) companies during their tender machined parts, cable harnesses, steel
the Quebec Division General Manager, processes. This meant the firm was first in line platforms and ladders – to offer wind turbine
Rachelle Caron – with an immodest aim: when an order for electrical components was manufacturers a one-stop shop for all
to dominate the market. placed. component parts.
Mathieu Crevier (left), “We knew exactly what components were “Traditional electrical distributors
Westburne’s National required in the turbines and how many, so aren’t able to provide that service; we
Business Development we could help EPCs budget the projects and, cover everything, so we are perfectly placed
Manager of Strategic ultimately, save money and time. In return, to dominate the market,” says Mathieu.
Sales Initiatives, says the initiative began they often worked with us as a preferred And such is the success of this
with educating themselves about the partner,” explains Mathieu. all-encompassing strategy that Westburne’s
demands of the market. competitors have tried to emulate it – but,
“To make sure we understood as much A successful strategy says Mathieu, with only limited success.
as we could about the needs of government, The strategy has led to a successful “The connections we have made in the
engineers and manufacturers, we spent a and lucrative relationship with a number of key sector are so strong that they eventually
lot of time at industry conferences and with EPCs. A wind farm – with a power capacity of gave up!”
14
15. IN CONVERSATION
Military precision
In this new section, two Rexel colleagues discuss a project they have worked on together,
or a topic that affects them and the wider organisation.
W
hen Cleveland Brown and Willy van Amersfoort WV: The client was very happy with our approach –
met at the Rexel On Stage integration seminar in I remember lots of digital photos going back and forth
Paris in 2010, it was the start of an international between Atlanta and Edinburgh every day to verify
partnership that would help them deliver US$2.7million packaging accuracy.
worth of electrical supplies to an American military The biggest challenge for me was the time difference
base in the Middle East. They discuss the merits of between here in Edinburgh and the US. A few
regular communication and global collaboration. times I wanted to call you at 8am, which
would have been 3am in Atlanta!
Cleveland Brown, Rexel USA (left): When the
contract came in, I realised we could offer a better- CB: The project was definitely challenging,
value and more efficient service to the client by utilising but we learned a lot from how the European
Rexel’s presence in Europe. And I knew you would business works and your processes, some of
be a good man to work with. which we are starting to implement in
the US. For example, we saw how
Willy van Amersfoort, Ross Electrical you label and distribute material for
(right): It was fantastic to have first met you customers and we have tried to
face-to-face to build rapport, which is so organise ours in a similar way, so it’s
important when running a project together. easier to understand.
I jumped at the chance to do something
a little different from our day-to-day work. WV: Nothing would have been
possible without the fantastic
CB: The US military has very stringent teams that supported us on both
labelling and packaging requirements, sides of the pond. Knowing we
and your team at Ross Electrical can complete a project like this on
delivered with zero shipping errors. a global level means we can do
The three-month deadline was tight for all that and more locally.
a project of this scale, so it was great
to work with someone with that level READ
MORE...
of attention to detail.
GLOBAL COLLABORATION IN ACTION
THE MISSION: A contract to pack and THE RESPONSE: Rexel in the US and THE RESULT: Shipping the order from
deliver supplies to electrical contractors Rexel banner, Ross Electrical, in the UK Scotland to the Middle East cost half the
supporting an American military base joined forces to make this a profitable amount it would have to transport it from
in the Middle East. This included tens project for both businesses. The size of the US, saving the client US$1million.
of thousands of individual pieces and the order meant Ross Electrical had to Despite complicated packing and
hundreds of different 50Hz European procure a second storage warehouse labelling requirements, the two Rexel
products, such as switchgear, lighting, with round-the-clock security. Pallets partners performed flawlessly: on
wire and wiring devices, boxes, fittings and crates also had to be custom-made deadline, with no omissions or errors.
and conduits. to meet the exacting requirements of
shipping in a military-style cargo jet.
www.interaxionplus.com 15
16. CUSTOMER INSIGHT: THE SIGMA® HOME
Green changes at home
Sustainability is high on the UK housing agenda. Stewart Dalgarno, Director of Product Development for
Stewart Milne Group, which has partnered with Rexel on a groundbreaking initiative, explains how one
four-storey house is leading the way in the reduction of housing carbon emissions.
W
hen a new code and rating Rexel installed a range of
system was introduced for energy-saving solutions,
sustainable homes in England including (clockwise from right):
a vehicle recharging facility,
in June 2007, developers had 10 years a voltage optimiser and an
to prepare for the move towards zero- air-source heat pump.
carbon housing.
As a house-building construction company
and timber frame supplier, the Stewart Milne
Group was keen to understand the implications
for the business of building these new homes.
Would it be a threat or an opportunity?
The Sigma® Home project is located within
the Building Research Establishment (BRE) park in
Watford, England. The idea to construct the home
came about at the end of 2006 and, by June
2007, we’d built it – much quicker than expected.
In six months, we’d gone from getting board
sign-off to being the first company in the UK to
receive a Level 5 certificate (read more about the
certificate on Interaxion Plus).
The Sigma® Home became a promotional vehicle example, the thermal comfort and energy-saving Rexel conducted a comprehensive audit of
for Stewart Milne. Then we thought: what else principles were well received, but The Sigma® the home, identifying the most suitable solutions
shall we do with it? Home was too complex for people to use and and latest technologies for lighting, air-source
We turned it into a research and development presented long-term issues around the potential heating, building controls, voltage optimisation,
project by partnering with the Energy Saving for systems breakdown, maintenance and repair. PV solar and electric vehicle charging.
Trust and Oxford Brookes University to deliver a The lessons have been invaluable to us in The next stage of development for us could
full monitoring and fabric-testing programme to developing improvements and delivering robust be to demonstrate how low-carbon buildings
check whether the structure actually worked. We fabric solutions. can be adapted and extended effectively – using
also performed one of the first occupancy studies the electrical, renewable, lighting and smart
of a home in the UK, having a family live in A new chapter technologies recommended by Rexel – while
The Sigma® Home for four two-week placements In adapting The Sigma® Home to be more maintaining a low-carbon performance. We also
– one per season – over a year. practical and liveable, we turned to Rexel for have an area on the ground floor that could be
As a result, we learned an awful lot about the partnership and guidance on giving the home adapted into a retail or commercial space in
fabric performance and technologies used. For a new story. the future.
To me, the most interesting element in the
home is the LED technology. From an efficiency
and quality-of-light point of view, it looks great.
“The lessons have been invaluable Other technologies, such as home automation
for us in developing improvements and smart metering, are also impressive. New
and delivering Stewart Dalgarno
wiring and cabling systems and interactive
controls and displays will allow us to connect to
robust fabric Director of Product
Development for things remotely, for turning on the lights or turning
solutions.” Stewart Milne Group off the oven when you’re out of the room.
Things haven’t always gone right on our
16
17. The Rexel perspective
Business Development
Director Brian Smithers
discusses Rexel’s
involvement in the project.
Can you explain Rexel’s involvement in
The Sigma® Home?
In 2011, Rexel entered into a two-year agreement
to showcase its new energy-saving solutions in The
Sigma® Home, which is actually two interlinked houses.
One is furnished with the products working in situ,
and an unfurnished mirror image has detailed signage
providing information on Rexel, our suppliers, products
and services.
This will be an ever-evolving project, with new
products installed regularly to keep pace with the latest
innovations in technology. It’s intended that Rexel and
the Stewart Milne Group will share data from research
and analysis conducted in the home to help make
further advancements in energy solutions.
How does being involved in this project
benefit Rexel?
This is the ideal place within the UK to showcase the
products and solutions we recommend, and establish
Rexel as a leading energy-solutions provider and
authority on energy efficiency. It raises awareness of
Rexel’s diversification into new markets. Key influencers
and decision-makers from a wide range of sectors
regularly visit the site.
How did you work with the Stewart Milne
Group to bring the project to fruition?
During Phase 1, we worked closely with them,
exchanging ideas and developing joint plans for the
home. Rexel provided technical advice about the
solutions and organised the installation of two solar
AWARD-WINNING arrays, voltage optimisation, electrical vehicle
EFFORT
chargers, LED lighting, an air-source heat pump
and SmartRad radiators.
Awards in November 2011, the
journey, but every lesson has been valuable.
Sigma® Home won Rexel the Our findings are going to central government and What happened next?
other policy holders to shape future policy. We’ll In January and February 2012 we arranged for
award. Greenbang produces also translate them back into our business to help the installation of more products, such as home
custom white papers, market
position analyses, market with product development and innovation. automation, and the replacement of others. Ongoing,
validation, surveys and research It’s important to keep a balance between the we are encouraging the Rexel UK banners to visit with
for technology companies focused long term and the short term, and think not just their key customers and with new customers. Tours
about tomorrow, but also next year and beyond. of the BRE park and The Sigma® Home are available,
smart grid.
Thanks to The Sigma® Home, we’re now in a and customers and suppliers can use the meeting
better position to respond to regulation and room facilities within the home, all of which increases
Visit the website:
www.greenbang.com/ market opportunities. Rexel’s exposure and helps forge new relationships and
awards-2011 You need an eye READ strengthen existing ones.
MORE...
on the future.
www.interaxionplus.com 17