business review europe & middle east – april 2015

Mobile Growth

That’s On Course To

ConnectThe World

A Healthy And Happy Executive

Team Is Critical To Success

Alternative Funding For

Early Stage Companies

The Internet In Its Hand

Schneider Electric: Turning Today’s Risk Into Tomorrow’s Opportunity

www.businessrevieweurope.eu Apri l 2015

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Politics and projects in the ECI WA S AT F I R S T incredulous when I saw that the excellent 2015 Strategic Top 100 Global Infrastructure Report found room for only two European projects. Why is Europe so poorly represented?

The report said: “It is essential to bring the energy of politics productively into the strategic infrastructure equation. Politics and the demands of politicians, the incentive structure of politics, the filtered aspirations of citizens, is both the driving force of infrastructure, and the biggest problem. How do we make the influence of politicians on infrastructure decisions more constructive, strategic, and productive?” EU governments need to ask themselves this question; the MENA region is in better health with around 19 projects in the top 100.

Meanwhile this issue concerns itself with much smaller projects. In 2014, €201 million of early-stage, growth and working capital funding was provided to European SMEs and start-ups, not by the banks but by alternative finance platforms. We examine these life-savers for entrepreneurs in some detail.

Scott Peltin’s article on workforce issues stresses the importance of keeping executives fit and happy, while peak performance is exemplified by ten of the outstanding CEOs of the Middle East. Finally, we feature a choice selection of businesses from infrastructure stalwarts Travis Perkins and Schneider Electric to the delicious Heidi Chocolate.

John O’HanlonEditor

john.o’[email protected]

E D I T O R ’ S C O M M E N T

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Based in Ballymoney, Northern Ireland, JMF is a major sub-contractor to the manufacturing business throughout UK and Ireland.

Investment over the years on high technology equipment has kept JMF at the front as a sub contractor. JMF’s ability to finish product and deliver to your door using our own transport fleet makes us your best choice.

Quality service like no other.

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METALFABRICATIONS

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69 Frosses Road, Ballymoney, Co. Antrim, BT53 7HN, UK

CONTENTS

5

Features

FINANCE

Alternative funding for start-ups and early stage companies8





METALFABRICATIONS

T: +44 (0)28 2766 5817 F: +44 (0)28 2766 5887



LEADERSHIP

A fit, healthy and happy executive team is critical to success

TOP 10

Outstanding CEOs in the Middle East

14

20

http://issuu.com/action/page?page=14


7

CONTENTS

116

54

40Firstan

Schneider Electric

Bakcell

76Travis Perkins

126 Heidi Chocolate

Company ProfilesTECHNOLOGY 30 Mobile Growth

40 Bakcell

ENERGY54 Schneider Electric

SUPPLYCHAIN70 Event: Multimodal 2015

76 Travis Perkins

90 Majaal Warehouse Co

MINING 100 Dundee Precious Metal

MANUFACTURING116 Firstan

FOOD126 Heidi Chocolate
















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Despite government protestations of support for new and growing businesses, and

assurances from the banks that a new can-do age is approaching, obtaining fast, agile and accessible finance seems as remote as ever

Alternative funding for start-ups and early

stage companies

W r i t t e n b y : J O H N O ’ H A N L O N

NO WONDER ENTREPRENEURS are looking at alternative ways of

getting their projects off the ground. If

you have ideas and a business plan,

but no money at all, the chances are

that you are too small to interest a

traditional bank or VC company. So

how can you become acquainted

with the sometimes confusing

world of alternative finance? “We

are aware of more than 10,000

early stage companies in Europe

that have benefited from equity,

lending, reward and donation based

crowdfunding, peer-to-peer (P2P)

business lending and the like,”

Bryan Zhang of the newly founded

Centre for Alternative Finance at

Cambridge’s Judge Business School

said. “These platforms are providing

F INANCE

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a viable option for suitable companies

including many start-ups and

incipient not-for-profit businesses.”

Bryan Zhang is a co-author of

Moving Mainstream: The European

Alternative Finance Benchmarking

Report recently issued by the

Centre and professional services

firm EY*. The report includes input

from 14 key national and regional

industry associations as well as

255 leading platforms in Europe,

capturing an estimated 85 to 90

percent of Europe’s online platform

based alternative finance market.

While previous studies have charted

alternative finance in the UK, this

report is the first to cover other

European countries in detail.

The European online alternative

1 0 A p r i l 2 0 1 5

finance market grew by 144 percent

last year to nearly €3 billion and could

exceed €7 billion in 2015, the authors

estimated. “Seen until recently as

a niche activity, online alternative

finance, including equity-based

crowdfunding and peer-to-peer

business lending, has become a

vital and increasingly commonplace

source of essential funding for SMEs,

start-ups and many other businesses

throughout Europe,” the researchers

said.

Online alternative finance, comprising

platform based financial transactions

outside traditional banking, grew

across Europe from €1.21 billion in

2013 to €2.96 billion in 2014. The

overall European alternative industry

is on track to grow beyond €7 billion

if the market fundamentals remain

sound and growth continues apace.

Last year €201 million of early stage

growth and working capital funding

was provided to European SMEs

and start-ups by alternative finance

platforms. The volume of online

alternative business funding has been

growing steadily at around 75 percent

year on year, and the estimated

number of start-ups and SMEs funded

in this way has been growing at an

even faster average rate; 133 percent

over the last three years to around

5,801 SMEs or start-ups in 2014.

Robert Wardrop, Executive Director

of the Centre for Alternative Finance

at Cambridge Judge, and co-author

of the new report, said: “These new

forms of alternative finance are

growing quickly, and this growth

is beginning to attract institutional

investors. Alternative finance in

some European countries is on the

‘These platforms are providing a viable option for suitable companies including many start-ups and incipient not-for-profit businesses’

F INANCE

1 1

cusp of becoming mainstream.”

Andy Baldwin, EY’s Managing

Partner of Europe, Middle East, India

and Africa Financial Services, said:

“To date there has been little hard data

about the extent of the industry across

Europe. This report shows that, while

it is still considerably smaller than the

industry in the UK, alternative finance

on the continent cannot be ignored.

“The UK market’s success has in

part been driven by investors’ search

for yield after the Bank of England’s

QE program, so it will be interesting

to see if the EU’s recent QE program

sparks increased activity in Europe.

For me some of the most interesting

metrics are the rate of adoption in

certain markets and models. For

example peer-to-peer business

lending grew at more than 270 percent

in mainland Europe this year, and

Estonia and Sweden have some of the

highest volumes per capita. The whole

financial services industry should

be watching this space with growing

interest and this study will provide a

valuable benchmark against which

to measure future developments.”

The UK is by far the largest European

country for alternative finance, at €2.34

billion (£1.78 billion) in 2014, followed

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A LT E R N AT I V E F I N A N C E M O D E L S I N E U R O P E ( E X C L U D I N G T H E U K ) V O L U M E I N € M A N D AV E R A G E G R O W T H R AT E

2 0 12 - 2 0 14

by France at €154 million, Germany at

€140 million, Sweden at €107 million,

the Netherlands at € 78 million, and

Spain at €62 million. Alternative finance

in Europe excluding the UK grew from

€338 million in 2013 to €620 million in

2014 and has averaged growth of 115

percent over the past three years. Peer-

to-peer consumer lending is the largest

market segment at €275 million in 2014,

followed by reward-based crowdfunding

at €120 million, peer-to-peer business

lending at €93 million and equity-

based crowdfunding at €83 million.

Across Europe, excluding the

‘Alternative finance, at least in some European countries, is on the cusp of becoming mainstream’

F INANCE

1 3

A LT E R N AT I V E F U N D I N G F O R S TA R T- U P S

focus on the UK’s performance in

this sector: “What’s clear from these

fascinating figures is that peer-to-

peer business lending is now seen as

one of the most important financial

innovations for several generations.

It’s a democratic response to the

crisis in traditional financial institutions

that has starved SMEs of the funds

they desperately need and taxed

savers to pay for bailing out the

banks by reducing returns on their

investments to virtually nothing.”

UK, peer-to-peer business lending

grew 272 percent from 2012 to

2014, followed by reward-based

crowdfunding up 127 percent,

equity based crowdfunding up

116 per cent and peer-to-peer

consumer lending up 113 percent.

So how do you access alternative

funding? The report took information

from 170 platforms, however Kevin

Caley, Managing Director and

Co-founder of one P2P facilitator,

ThinCats welcomes the renewed

ThinCats Team

1 4 A p r i l 2 0 1 5

There’s no room for brain fog in

executing a multi-million dollar deal.

Diligence, focus, attention to detail,

energy, resilience, mental agility and

endless stamina are prerequisites.

So why are so many businesses

leaving to chance the endurance of

their most senior executives? With

budgetary fat being trimmed ruthlessly

from every corner why are so many

businesses still underperforming?

A key contributor must surely be the

‘preparedness’ of top executives to

cope with the relentless demands.

Some decision makers are even

suggesting that investment analysts

should be assessing and measuring

how boards are planning for this,

given the ever harsh spotlight on

how the top team will deliver.

Preparing executives for peak performance is becoming a serious game changer, says

ex-fire chief Scott PeltinW r i t t e n b y : S c o t t P e l t i n

A fit, healthy and happy executive team is critical to success in modern business

LEADERSHIP

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Resilience and preparedness are

qualities of growing significance. The

field of sustainable high performance

of pressurised executives is gaining

credibility as an investment, partly due

to the impact of 24/7 demands in a

volatile climate on mental agility and

stamina, but more so because leaders

are hungry to employ any competitive

advantage that sets them apart.

Take the parallel of high

performance training in sports; just

30 years ago it was in its infancy.

Today it is a highly specialised and

scientific field where winners and

losers are separated by milliseconds.

Just as in sports, top performers

in business need more than the

standard coaching and wellbeing

programmes; they need specific

Don’t leave your executives alienated at the top; it can be

a lonely place

1 6 A p r i l 2 0 1 5

training and support to increase

energy, mental agility, resilience and

stamina if they are going to win.

According to Tignum data, 67

percent of top executives have

metabolic dysfunctions or other health

related risk factors that decrease

performance and productivity, and

an alarming 84 percent report that

they don’t have sufficient energy

to meet all their daily demands.

At the simple ‘functioning level’,

being healthy is the obvious priority.

Paul Hemp said in the Harvard

Business Review that “unlike

absenteeism, presenteeism isn’t

always apparent. You know when

someone doesn’t show up for work,

but you often can’t tell when or how

much illness or a medical condition

hinders someone’s performance.”

The point is that if you aren’t

healthy, you aren’t performing

at your best. This is one of many

reasons companies are investing

so much in executive physicals,

company wellness and vitality

programmes and health incentives.

But is being healthy enough?

No, it isn’t. Let’s look beyond

‘functioning’ at optimising human

performance. At this level, a

successful executive is consistently

energised and bringing energy to

others. They have strategies to

bounce back from setbacks, to

prepare for their daily events and

to recover from the stresses they

face. Ideally, this means having the

same energy at 3pm as at 9am.

But research shows that executives

who try to optimise performance by

just focusing on exercise or nutrition

often fall short. They may lose weight

and even ‘feel better’ but they aren’t

necessarily higher performers, or

more sustainable. When you integrate

strategies relating to mindset,

nutrition, movement and recovery,

you get a far more significant effect.

The Wall Street Journal

recently reported that one-third of

American workers aren’t sleeping

enough to function at peak levels,

and that chronic exhaustion is

costing billions of dollars in lost

productivity. Yet high-quality sleep

is the foundation of recovery.

And so to peak performance.

Every day and week there are certain

events that are critical. In sports or

in the fire service, these events are

obvious. But in business they too

often are hidden in all the other noise

LEADERSHIP

“In every single key meeting, presentation, or negotiation, there is a critical moment where you either win or you lose. This outcome is often due to as little as a 2 percent to 5 percent difference in human performance. This difference comes from having more energy, having more mental clarity, and better preparation”– Bernd Wahler, SVP of

Innovation at Adidas

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and activity facing an executive on

any given day. Here, preparation

strategies should focus on mindset.

What are your intentions, what would

success look like, and what emotions

will best serve you in this event?

This requires an entirely different

level of preparation but it pays off.

As Bernd Wahler, SVP of Innovation

at Adidas, puts it: “In every single key

meeting, presentation, or negotiation,

there is a critical moment where you

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‘90 percent of top executives don’t have any measurable strategy or tools at all to prepare for their own must-win peak performances.’– According to Tignum data

either win or you lose. This outcome

is often due to as little as a 2 percent

to 5 percent difference in human

performance. This difference comes

from having more energy, having more

mental clarity, and better preparation.”

Yet according to Tignum data,

and despite admitting a significant

lack of energy and stamina, 90

percent of top executives don’t

have any measurable strategy or

tools at all to prepare for their own

must-win peak performances.

The ‘preparedness’ of senior

executives needs the board’s attention

Personal wellness is critical to business development and success

LEADERSHIP

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A H E A LT H Y E X E C U T I V E T E A M I S C R I T I C A L T O S U C C E S S

Executive burnout and even

executive suicide are on the rise,

but the extent remains hidden, and

often the causes (or taking steps to

overcome them) remain taboo. Yet

the fact is that leaders need resilience

to bounce back from setbacks, they

need mental agility to solve tough

problems and they need stamina to

see meaningful projects through.

They also have a responsibility

to energise their teams. To

me, focusing on this level of

personal preparation is the next

competitive edge in business.

now more than ever (John Reid-

Dodick, AOL’s chief people officer,

calls it a game-changer). Why do we

pay such high salaries and blindly

expect investors to support top

executives who have no sustainable

high performance diagnostics or

improvement plans? No airline pilot

or fire chief would risk leaving their

daily performance to chance. As the

Financial Times suggested in 2012,

when chief executives are appointed,

boards should provide them with a

support network before the new boss

has an urgent reason to ask for it.

Are your executive team healthy enough to make the right decisions for your business?

Outstanding CEOs in the Middle East

Written by: John O’Hanlon

The Middle East is home to many amazing companies, but they wouldn’t have achieved such excellence were they not let by remarkable men and women, therefore we present a selection of winners from the CEO Middle East Awards 2014 organised by Arabian Business at the Emirates Towers in Dubai

TOP 10

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TOP 10

9 Aziz Abdullah Al Yaqout DLA Piper

One of the most respected lawyers in the region, the Regional Managing Partner of this renowned global law firm is also an active supporter of youth development, helping to give young Arabs education and training in work readiness, financial literacy and entrepreneurship.

10Majida Ali Rashid Dubai Land Department

Majida is a lady who has really taken the business world by storm in her role as Assistant Director General of the Dubai Land Department and Chair of the Real Estate Investment Centre. She has been instrumental in the drafting of much needed new real estate legislation in Dubai.

O U T S TA N D I N G C E O S I N T H E M I D D L E E A S T

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8Mohammed Abdulsalam MENA Holding

As the head of this Kuwaiti-based of company Abdulsalam has played a key role in the development of the company’s portfolio which covers leisure and tourism, real estate and construction amongst others. He was also named Young CEO of the Year.

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TOP 10

7Omar Farid PepsiCo

A man who has dedicated more than 30 years of his life to the same company. Taking the top job at PepsiCo last year, Omar now oversees a company with annual revues of an estimated $3 billion, and more than 15,000 direct empwloyees on its books.


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6 Ahmed Mekky Gulf Bridge

Mekky is a co-founder of a company that is the region’s first privately owned submarine cable provider, doing a remarkable job of linking Gulf countries together and with the rest of the world. The company has led the way in both innovation and technology.

5 Sarah Appleton Mini Exchange

Leaving behind a successful career with Deloitte, Sarah has aspirations for her company to be seen as an eBay-Outlet Mall hybrid, known as the go-to marketplace for buying and selling kids’ clothing. Less than a year into its existence, it is becoming just that.

TOP 10

4 Mahesh Shahdadpuri TASC

Shahdadpuri has made a habit of getting results quickly. In six short years he has taken the company

he founded from launch to one of the most lauded

SMEs in the region, ranking in the Dubai

SME 100 listings and becoming one of the largest providers of contract resources in the region.

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2 Bob Hope SSH International

This is the man running a huge Kuwaiti design consultancy which is taking the MENA region by storm. Bob is spearheading a five year plan that will see the company triple in size. Its huge raft of current projects include the Kuwait Finance House Residential Tower and the Sheikh Jaber Al-Ahmad Al-Sabah Causeway.

3 Ziad Makhzoumi Fakih IVF

The Healthcare CEO of the Year is well known from his glorious days as CFO of Arabtec. Since leaving that company he has taken over as CEO of the fertility clinic Fakih IVF, which was opened just three years ago. He is pioneering a range of new fertility treatments for both men and women. There is already talk of this company performing well on the stock market in the next few years.

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TOP 10

1 Anan Khalil F Fakhreddin Damas

Anan Khalil Fakhreddin joined Damas, the Middle East’s leading international jewellery and watch retailer, in March 2010 and has grown the company, founded in 1907 until today there are about 300 stores in the Middle East. He is a jewellery and retail industry veteran with more than 23 years’ experience in Middle East. He had been with De Beers for 9 years as Director, Gulf and has also served as Managing Director for Middle East and Turkey with the World Gold Council. Fakhreddin started his career with American Express and held the position of Regional Manager in Saudi Arabia. He has been the Chairman of Dubai Gold and Jewellery group from 2010 for two years. In addition to a wealth of experience he is a certified gemmologist. Anan Fakhreddin graduated from Yarmouk University in Jordan and has attended the Harvard Finance for Senior Executive Programme. Fakhreddin was awarded Retail CEO of the Year.


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MOBILE AND INTERNET SERVICES ON COURSE TO CONNECT THE WORLD

With today’s two billion smartphone connections around the world set for a threefold increase by 2020, the work of associations in educating communities and uniting the interests in telecoms

and internet services will be vital in ensuring the globe becomes truly connected

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MOBILE AND INTERNET SERVICES ON COURSE TO CONNECT THE WORLD

With today’s two billion smartphone connections around the world set for a threefold increase by 2020, the work of associations in educating communities and uniting the interests in telecoms

and internet services will be vital in ensuring the globe becomes truly connected

3 2 M o n t h 2 0 1 4

CONNECTING THE WORLD

The world is more connected than ever. The internet and mobile ages have brought with it an unprecedented level

of communication and contact between previously far-flung corners of the earth.

Today there are more than 7.2 billion mobile connections in an industry which turned over $1.13 trillion in 2013.

More than two billion of these connections come from smartphones, with this set to rise to six billion by 2020 according to global association the GSMA, representative of nearly 800 of the globe’s mobile operators.

Though the likes of Apple and Samsung dominate the media headlines in the mobile

mobile connections today, two

billion of which come from

smartphones

7.2b

https://www.youtube.com/watch?v=EMwzdYN2v2U

T E C H N O L O G Y

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and smartphone sphere, the low-end market is exploding with sub-$50 phones able to connect seamlessly to the internet now a reality, and driven by operators producing their own devices.

Another global association, the CTIA (Wireless Association), states that tablets account for 40 percent of all mobile broadband connections. In America, 66 percent of such connections will be made via tablets this year.

Despite the surge in connectivity since the turn of the millennium, only one third of the world’s people have access to the internet. In a drive to connect the most isolated parts of the world to the undoubted benefits of the World Wide Web, huge companies are pouring investment into initiatives across all continents.

For instance, Facebook, Nokia, Qualcomm and Samsung are spearheading an initiative involving the development in its bid to link up the remaining two thirds of the global population.

The work of programmes like this and the collaboration of global telecoms and internet providers will be crucial in taking the next steps towards a truly connected planet.

Uniting interests Representing the interests and helping to converge the movements of key industry players are associations, both on national and global scales.

Spanning more than 220 countries and serving nearly 800 companies is the GSMA, chaired by Telenor Group’s President and CEO Jon Fredrik

‘Facebook, Nokia, Qualcomm and Samsung are spearheading an initiative involving the development in its bid to link up the remaining two thirds of the global population.’

https://www.youtube.com/watch?v=EMwzdYN2v2U

3 4 A p r i l 2 0 1 4


Baksaas since 2002. The association carries out activities and provides expertise in an enormous variety of areas, from public policy and apps guidelines to disaster response and security.

One of its key missions is to deliver “ubiquitous mobile broadband access” across the world, and its Spectrum team is dedicated to organising key industry events to help channel the activities of operators towards this end.

The Mobile World Congress epitomises this, with “connecting the underserved” a major topic for the 2015 event to be held in Barcelona at the beginning of March, boasting some of the most important figures in the telecoms and internet space as keynote speakers.

Overall, more than 1,900 companies are expected to exhibit, including recently confirmed brands such as China Mobile, Ericsson, Fujitsu, Gemalto, General Motors, MasterCard, Mozilla, Nokia, NTT DOCOMO and Visa.

Key to empowering the unconnected will be smartphones according to the GSMA’s Chief Strategy Officer Hyunmi Yang. “As our study shows, smartphones will be the driving force of mobile industry growth over the next six years, with one billion new smartphone connections expected over the next 18 months alone,” he said.

“In the hands of consumers, these devices are improving living standards and changing lives, especially in developing markets, while contributing to growing economies by stimulating entrepreneurship.

“As the industry evolves, smartphones are becoming lifestyle hubs that are creating opportunities for mobile industry players in vertical markets such as financial services, healthcare, home automation and transport.”- Hyunmi Yang, GSMA’s Chief Strategy Officer

S E C T O R

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COMPANY NAMECONNECTING THE WORLD

The Mobile World Congress 2015

“As the industry evolves, smartphones are becoming lifestyle hubs that are creating opportunities for mobile industry players in vertical markets such as financial services, healthcare, home automation and transport.”

Another major global association is the TIA (Global Telecoms Association), representing the interests of manufacturers and suppliers of high-tech communications networks and helping their products

Some of the keynote Speakers at GSMA’s Mobile World Congress 2015: • Jimmy Wales,

Founder of Wikipedia • Mitchell Baker,

Executive Chairwoman, Mozilla Foundation

• Carlos Ghosn, Chairman and CEO, Renault-Nissan Alliance

• Charles Scharf, CEO, Visa

• Gary Kovacs, CEO, AVG Technologies

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COMPANY NAME

empower communities in the healthcare, education, security, public safety, transportation, government, the military, the environment, and entertainment spaces among others.

Recently the group named Scott Belcher as CEO to bolster its leadership. Tom Stanton, Chairman of the TIA board of directors, commented: “As the ICT industry experiences the most dramatic change we’ve seen in decades, TIA is also adapting and growing to meet our

1,900 companies exhibited at the 2015 mobile congress

one billion new smartphone

connections are expected over the next 18 months

S E C T O R

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COMPANY NAME

members’ needs. “We are excited to expand TIA’s industry

leadership by adding another highly experienced senior executive to our management team. Scott is a tremendously successful and visionary leader who will expand our capabilities and bring valuable new perspectives to our industry.”

Local scale Global telecoms and internet providers are also

1,900 companies exhibited at the 2015 mobile congress

Tom Stanton,

Chairman of the TIA

board of directors

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COMPANY NAME

On the road off the

phone psa by CTIA

indebted to the work carried out at a national level by associations working closely with governments and other organisations, helping maximise the effectiveness of connectivity on more localised scales.

The UKCTA (UK Competitive Telecoms Association) is comprised of a series of committees and work streams made up of its member organisations, enabling all members to fully and equally engage in the development of policy issues in areas of economics, industry

https://www.youtube.com/watch?v=7Uf-XZODtXw

T E C H N O L O G Y

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COMPANY NAME

regulation and government relations.

Educating the future If the globe is to become truly connected and able to responsibly exploit the benefits of mobile and internet connectivity, education of future generations is paramount, and something which the CTIA supports through a number of programmes.

GrowingWireless.com is scheme designed to provide parents with tools and information to educate themselves so they may teach their children how to use wireless technology responsibly, made extremely prevalent by the fact that on average youngsters are 12 years old when they receive their first smartphone. More than half (56 percent) of eight to 12 year olds own such devices.

Related to this is the On the Road, Off the Phone campaign, also backed by the CTIA and aimed at educating young drivers on the dangers of using mobiles on the road.

At the other end of the age spectrum, AccessWirelss.org is another CTIA-backed site which helps elderly and disabled people to discover and utilise the benefits of mobile and connectivity.

As the rise of mobile and internet continues to gather pace, industry leaders and associations continue their quest to get the world connected and up to speed to what may well already be to some a sector unfathomable just a few short years ago.

‘If the globe is to become truly connected and able to responsibly exploit the benefits of mobile and internet connectivity, education of future generations is paramount’

of eight to 12 year olds own a smartphone

or tablet

56%

Bakcell The internet in their handBakcell is the leading and most innovative mobile telecoms operator in Azerbaijan, punching above its weight strategically, technologically, and in its real concern to develop the talent in Azeri youth

Written by: John O’Hanlon

Produced by: Kiron Chavda

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BAKCELL

W hen it was established in 1994, three years after Azerbaijan’s independence from the Soviet Union, Bakcell quickly

became known as a brand leader in the country’s telecoms space. Since then it has not ceased to evolve that brand positioning, always working towards greater customer orientation. “Today we are very much the leader in mobile internet services in this country,” said Richard Shearer.

Shearer has been CEO at Bakcell for four years, long enough to make his mark and set the strategy for the next phase of the company’s growth. And while effective connectivity and coverage remain at the core (Bakcell’s network reaches 99 percent of the population) the future belongs to the company that delivers the best user-friendly data services. “While we were last to launch 3G, we are now the number one provider of mobile internet services in the country. More than 60 percent of our customer use data services, which is a very high proportion compared to any international benchmark.”

Bakcell is in a competitive market, with two other players snapping for business. In terms of subscribers Bakcell is still around 12 percent behind Azercell though it has been relentlessly gaining market share during Richard Shearer’s watch. “Our focus is on providing access to the mobile internet though your handset – the internet in your hand. So we have focused heavily on developing smartphone usage and ownership in the country.”

Richard Shearer,

CEO of Bakcell

T E C H N O L O G Y

www.bakce l l .com 4 3

BAKCELL

Bakcell is the only company that offers its own brand smartphones, and it has more smartphones on its network than either competitor. Reflecting global patterns, 85 percent of these operate on Android and 15 percent iOS, though again, more iPhone users choose Bakcell. He has a neat mantra: Smart people, Smart phones, Smart network.

During his four years he has led serious investment in networks, new technology, and has revamped all Bakcell’s customer services to improve them and bring them up to or beyond global standards. The company has more than 3,000 customers on its pre-commercial 4G network, all of them providing very valuable feedback to hone the service before its imminent launch.

President Ilham Aliyev visits Bakcell’s stand at BakuTel

‘Bakcell is the only company that offers its own brand smartphones, and it has more smartphones on its network than either competitor.’

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BAKCELL

Established in 1998 as a Motorola offi cial distributor. Since company enlarged to the largest wholesaler & distribution company of electronic devices in Caucasus region.

Ahmed Rajabli 33 str • AZ1052 • Baku • Azerbaijan

Mobile Distribution at your fi ngertips

+ 994 12 465 7513

www.caspianmobile.az

[email protected]

www.Caspianmobile.az

T E C H N O L O G Y


BAKCELL BAKCELL

Bakcell shows

its handsets

Established in 1998 as a Motorola offi cial distributor. Since company enlarged to the largest wholesaler & distribution company of electronic devices in Caucasus region.

Ahmed Rajabli 33 str • AZ1052 • Baku • Azerbaijan

Mobile Distribution at your fi ngertips

+ 994 12 465 7513

www.caspianmobile.az

[email protected]

Fast adoption of new technology is a characteristic of this youthful country, where 55 percent of the country is under 35. “Our customer base is a more concentrated version of that demographic so we do over-index on younger customers,” he admits.

Nevertheless Bakcell is keenly aware of the diversity of its customer base. As its name implies it started life as a telecoms operator in the capital Baku serving its two million or so inhabitants. Since then he stresses that the company has done much to balance its customer base across the regions. “We have been very successful in bringing in the provinces.” Products and price plans have been developed that recognise the difference in income levels between the capital and elsewhere, though with its oil and minerals

www.Caspianmobile.az

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BAKCELL

reliable

capitalized

transparent

rapid

technological ly advanced

www.expressbank.az

T E C H N O L O G Y


BAKCELL BAKCELL

Opening of

ManU Soccer

School in

Azerbaijan

reliable

capitalized

transparent

rapid

technological ly advanced

income Azerbaijan is by no means a poor country. Sport is a key component of Bakcell’s brand

communications strategy, Shearer explains with enthusiasm. “The Bakcell Stars programme, which helps disadvantaged children, has evolved as we have built the partnership with Manchester United and the local football federation AFFA.” It was in 2012 that Bakcell became ManU’s first official telecommunications and broadcast partner for Azerbaijan, or indeed for any of the CIS nations. The deal gave Bakcell the rights to broadcast the club’s official TV channel MUTV in Azerbaijan, giving fans access to the latest player interviews and behind-the-scenes footage and much other valuable content to drive data usage and customer engagement in its core mobile phone customer base.

www.expressbank.az

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BAKCELL

Global Leader in Mobile Connectivity Solutions

[email protected]+994 12 5414711 • M2M/IoT• Government

our services

With presence in more than 75 countries, TIMWE designs, delivers and

manages end-to-end solutions for Mobile Marketing & Entertainment,

Mobile Money, Government, M2M/IoT and Tech Services.

Global LeaderConnectivity

our

With presence in more than 75 countries, TIMWE designs, delivers and

manages end-to-end solutions for Mobile Marketing & Entertainment,

• Marketing & Entertainment• Tech Services• Mobile Money

www.timwe.com

www.bakcell.com/en/roaming

BAKCELL T E C H N O L O G Y


BAKCELL

But the link up with what is undoubtedly the strongest football brand in the world brought much more than just a chance to display a well-known logo. It is, he says, a much broader engagement than that. “We are the number one global mobile telecoms partner for Manchester United in terms of activation. We work with them mostly on new initiatives that often they will then roll out to other parts of the world having tested it here.” The football club, he has found, really takes pains to understand the business and its challenges and to tailor the engagement to these.

Now Bakcell, working with Man’ United and AFFA, has opened the Manchester United Soccer School in Baku, apart from one in Hong Kong the only such facility outside of Manchester. At the preliminary stage, 16 under 16s and as many seniors will be selected for training by Man’ United professionals, giving the phone company unassailable street cred.

Training session for

kids with Dwight Yorke

“We are the number one global mobile telecoms partner for ManU in terms of activation. We work with them mostly on new initiatives that often they will then roll out to other parts of the world having tested it here.”– Richard Shearer, CEO

BAKCELL

Hesab.az are the biggest online portal system operating in Azerbaijan.

It allows you to pay for or buy mobile, bank, utility, internet, cable TV, landline, insurance and entertainment services online through web or mobile applications.

www.hesab.azE-mail: [email protected]

Save your time!

Not that this is any flash in the plan. Richard Shearer is proud of his company’s sport related CSR record. The Bakcell Stadium is the largest domestic football arena in Azerbaijan, but beyond this highly visible sponsorship the company has a lot of grass roots engagement, setting up football facilities in the regions. “We provide the pitches for children in local communities staffed with full time AFFA-accredited and qualified coaches as well as the equipment, and that allows those kids to interact and learn integrity, teamwork, self-respect and all the benefits you gain from sport.” If Azerbaijan ever gets beyond the first round of the Europa

Bakcell is proud

of its sport related

CSR record

T E C H N O L O G Y


BAKCELL

Bakcell provides

children with AFFA-

qualified coaches

League (the furthest they have got so far) it will be a Bakcell as much as a national triumph.

For those to whom football is a mystery these benefits are still available. Shearer is every bit as keen on Bakcell’s engagement with other activities such as its association with United Aid for Azerbaijan (UAFA) founded in 1998 by Gwen Burchell MBE. UAFA and Bakcell started implementing the “Art Communication for Children with Disabilities” project in February 2010. The project aims to engage children with physical and intellectual disabilities through art to develop their physical, cognitive and social skills.

Bakcell Stars is a programme started in 2009 to help children with special needs of every kind. There is however another leg to the company’s CSR story, linked to IT and telecoms education. The two overlap, but like every developing country Azerbaijan needs to grow its knowledge base and develop the talent that will create the networks – and the apps – of the future.

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BAKCELL

So Bakcell has partnered with local universities, and also with JAA Azerbaijan, a branch of Junior Achievement Worldwide, the world’s largest not-for-profit organisation in business education. The programmes it promotes encourage entrepreneurship, financial literacy and IT upskilling among young people. Bakcell has also partnered with Qualcomm to open App Lab in Baku as an incubator for local entrepreneurs who are focused on developing internet and mobile apps. This first of its kind initiative in Azerbaijan has received a lot of positive publicity and is seen by many as Bakcell tangibly supporting the development of the ICT sector with Azerbaijan.

Harking back to his introductory remarks, Richard Shearer emphasises the need to build a network designed for the way people want

We are building a network that caters for video, so very good connectivity, and throughput speed is important to us.”– Richard Shearer

Launch of AppLab

project in cooperation

with Qualcomm

T E C H N O L O G Y


BAKCELL

to use it. That means much more than simple internet access for information. “We see the internet more as a source of entertainment, so content is important to us. Video is rising in every network, but on ours it is rising exponentially! We are building a network that caters for that, so very good connectivity and fast throughput speed is important to us.”

That Bakcell is rising exponentially too is evidenced by the fact that the number of smartphones on the network has more than doubled in the last year. Many businesses have been enabled though smartphone use too, he points out. “They can interact and react with customers in a way that is not possible with a PC. The government has a number of initiatives in terms of secure payments, digital signatures and the like, all of which encourage evolution e-business. This is a great opportunity for Azerbaijan!”

In a recent smart move, Bakcell teamed up with its smaller competitor Azerfon to form a joint venture to exploit economies of scale and scope in building network capacity. As a result the JV Azerconnect has given Bakcell access to an unparalleled amount of spectrum and a strategic advantage over Azercell. Bakcell will be the only operator with the spectrum to offer LTE-Advanced, the next iteration of 4G; with download speeds of around 100Mbps “Spectrum is our lifeblood, at the end of the day,” concludes Richard Shearer gnomically.

Bakcell was announced

“The Mobile Internet

Provider of the Year”

by the The Business

Year publication

President Aliyev

examines a

smartphone

Written by: Abigail Phillips Produced by: Richard Thomas

Schneider ElectricTurning today’s risk into tomorrow’s opportunity

5 5

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SCHNEIDER ELECTRIC

The industrial landscape today is plagued with complex energy management challenges. Businesses are under

increasing pressure to meet tight production demands while delivering quality goods and services, at a lower cost, with minimum impact on the environment. Schneider Electric is a global specialist in energy management and offers its clients solutions and services from a device level all the way to an enterprise level.

The company’s suite of solutions and team of experts can provide clients with real insight into energy consumption. Armed with this knowledge, their clients can identify possible savings - and with Schneider’s help - can balance their energy costs and production goals. Not only can Schneider help reduce costs by optimising its clients’ energy needs, but it can also improve the overall efficiency of individual enterprises.

Schneider Electric is a global organisation, employing in excess of 170,000 individuals with an annual turnover of approximately €25 billion. The company is divided into five individual divisions, which are Industry, Buildings, IT, Technology and Governance. Schneider Electric’s Global Solutions department spans all five divisions to provide energy and sustainability services to its global client base. “Our mantra as an organisation is to help customers to identify processes and target strategies for addressing sustainability and energy challenges. We then help them deploy bespoke technology solutions in order to address those

Andy Dewis,

vice president

of international

solutions EMEIA

Providing global energy and sustainability to the world

E N E R G Y

www.schne ider-e lect r ic .co .uk 5 7

SCHNEIDER ELECTRIC

“Our mantra as an organisation is to help customers to identify processes and target strategies for addressing sustainability and energy challenges”– Andy Dewis, vice

president of international solutions EMEIA

challenges. In effect, we span the entire Schneider Group and help to deploy the resources across Schneider in the right way for the right type of company. That can be the PV division as part of a renewable energy strategy for a customer or any associated technology applications within that,” explains Andy Dewis, vice president of international solutions EMEIA.

Schneider Electric as a group focuses predominantly on two business segments - corporate clients and regions (governments, cities, districts and counties). In both instances the Global Solutions team helps identify energy and sustainability related challenges to deliver five to ten year plans for its clients. Alongside

Working together to deliver tailored business solutions

SSE is proud to supply a large water company operating in the East of England.

Our Customer says: The manager that secured our business is the same manager that now manages our account. This means that there is continuity and depth in understanding of us as a client from sales through to normal contract management; other suppliers fall down here. Our account manager has secured an excellent dedicated team to service the contract and we run it together in the spirit of challenge and collaboration.

SSE is a trading name of SSE Energy Supply Limited which is a member of the SSE Group

The Registered Office of SSE Energy Supply Limited is 55 Vastern Road Reading Berkshire RG1 8BU

Registered in England & Wales No. 03757502

Authorised and regulated by the Financial Conduct Authority for certain consumer credit activities.

www.sse.com

For more information call us on

0800 072 3317

A proven partnership which is delivering results

Cost optimisation

Exceptional customer service

Innovation in approach and solutions

Flexibility to meet the needs of your business

Ability to meet and enhance your green agenda

An experienced team of trusted advisors

Alignment with your corporate purpose

Budget Certainty

Five year contract with the ability to trade throughout

Forward pricing allowing physical trades where there is no market liquidity

Unlimited access to the day-ahead indices

A Seamless Transition

6,000 supplies registered to a single start date

3,000 meters novated to our Customers preferred metering agents

Dedicated Metering Engineers

Meter engineers trained to customer health and safety standards

Our dedicated team significantly improved the reads taken compared to the previous incumbent

Accurate Billing

Billing Account Managers rectified pre-SSE billing discrepancies

Improved reading rate led to increased billing accuracy

ReportingBespoke electronic billing and management reports show performance and drive continuous improvement

Green EnergySSE supply CCL exempt energy generated from fully renewable sources across the majority of the portfolio

SUPPLIER PROFILE

SSESSE powers nearly 500,000 business accounts across the UK, offering tailored energy services and expertise to deliver innovative gas and electricity supply solutions.

Customers include SMEs, large energy users and multi-site groups across the private and public sectors.

At SSE Business, our energy prices are generated against the live energy market, meaning we offer competitive prices to both existing and new customers.

Our dedicated service begins with a team of experienced sales and support staff, trained in providing fast, accurate quotes and contract services.

This is backed up by highly trained staff with expertise in high voltage engineering, LED lighting and electrical safety to heating, ventilation, energy, and facilities management.

SSE was accredited as a Living Wage employer in 2013, and in October 2014 became the first FTSE 100 company to be accredited with the Fair Tax Mark.

For more information please call us on: 0800 072 3319 or visit www.SSEBusiness.co.uk

E N E R G Y


SCHNEIDER ELECTRIC

this the department also tracks major trends within the industry and feeds them back into its R&D and innovation team. In 2014 alone, the business invested €7.5 billion in research and tech development – a core focus of the business and one of its key differentiators. Schneider Electric is transitioning into a formidable technology company, with strategic focus on the Internet of Things (IoT), sustainability, and the knowledge economy through the convergence of information technology (IT) and operational technology (OT).

Research, development and innovationThis year, Schneider Electric is focusing on a number of major industry trends including digitisation, automation, building management and control systems. By developing state-of-the-art software solutions the company is able to extract value and combine all the data that exists for renewable and solar installations, thus driving efficiency for its commercial and residential clients. “We are continually investing and innovating our tech solutions to drive more competition in the renewables, automation and energy sectors,” explains Dewis. “We are always reacting to customer needs and demands, while also looking to future demands and feeding that back to the huge R&D organisation that we have. We also keep a very close rein on our service organisation so we are continually changing, adapting and evaluating the types of services we offer. We constantly evaluate the type of people and resources we

The amount invested in

research & tech development

€7.5m

Research into

renewables

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SCHNEIDER ELECTRIC

TotalOPEN FOR BUSINESSES

Total Gas & Power limited

SCHNEIDER ELECTRIC

totalgp.com

As the UK’s number 1* business gas provider, we are proud to have worked with Schneider Electric for the last 17 years, supporting numerous organisation’s energy needs for both today and tomorrow.

* by volume - Cornwall Energy - October 2014

WITH

7023_Total_Schneider Ad_06.indd 1 10/03/2015 14:06

E N E R G Y


SCHNEIDER ELECTRIC SCHNEIDER ELECTRIC

OPEN FOR BUSINESSES

Total Gas & Power limited

SCHNEIDER ELECTRIC

totalgp.com

As the UK’s number 1* business gas provider, we are proud to have worked with Schneider Electric for the last 17 years, supporting numerous organisation’s energy needs for both today and tomorrow.

* by volume - Cornwall Energy - October 2014

WITH

7023_Total_Schneider Ad_06.indd 1 10/03/2015 14:06

bring into the organisation for and on behalf of our customers,” he says.

Developing world-class software solutionsSchneider Electric has a technology platform within its organisation called Structureware, the whole theory behind it being that it will deliver value from the shop floor to the top floor. According to Dewis, the software being developed by the firm rivals the likes of IBM and Microsoft due to its targeted nature. “For example, we are working with a large brewing company at the moment to measure resource intensity per bottle of beer produced. Through our software the company is able to manage very specific components related to energy consumption such as financial control, waste and output efficiency. “We are also working

Managing output

Supplying over 100,000 sites, we are one of the leading gas and electricity suppliers to business customers within the UK. We offer a range of products that can be tailored to suit the needs of our customers, complemented by a wide range of energy services designed to help our customers monitor, manage and optimise energy usage; identify opportunities for energy efficiency and on-site generation; and implement sustainable solutions that deliver quantifiable energy and carbon savings. We’re part of the Total Group and operate in more than 130 countries, making us one of the world’s largest suppliers of energy.

www.totalgp.com

SUPPLIER PROFILETOTAL

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SCHNEIDER ELECTRIC

With our flexible contracts you can get a bespoke energy contract that can be as complex or as straightforward as you need. You choose the contract length, billing period and payment terms that are best for your business, even if you’re not a major energy user.

Want complete control over how you buy and use your energy?

[email protected]

gazprom-energy.co.ukPart of the world’s largest gas producer

0845 873 2291

E N E R G Y


SCHNEIDER ELECTRIC SCHNEIDER ELECTRIC

with a data company to develop software that will manage and operate large data centres on their behalf. Our software is helping them optimise their energy efficiency and consumption across a global portfolio of hundreds of data centres,” says Dewis.

The company even works with cities to optimise things like traffic light and security camera management through software and technology. The software has the ability to manage key metrics within a city. This could range from resource pressures or resource availability to commuter times. “Schneider Electric operates at the frontier of intelligent energy and urban efficiency. Our goal is to be the market leader in sustainability and efficiency software by leveraging the expertise of our 170,000 employees, to develop world-leading, bespoke solutions,” says Dewis.

With our flexible contracts you can get a bespoke energy contract that can be as complex or as straightforward as you need. You choose the contract length, billing period and payment terms that are best for your business, even if you’re not a major energy user.

Want complete control over how you buy and use your energy?

[email protected]

gazprom-energy.co.ukPart of the world’s largest gas producer

0845 873 2291

Tomorrow’s

opportunity

We realise energy isn’t always your first business priority and you need the little time you have to focus on the things that really matter so we provide hassle-free energy to small and medium businesses.

This means we start by making it simple to switch to Gazprom Energy. In fact, our small and medium-sized customers are 85% satisfied with their overall switching experience. You’ll also have 24/7 access to your account online so you can view invoices, submit meter readings and view historic consumption at a time that suits you.

www.gazprom-energy.co.uk

SUPPLIER PROFILEGAZPROM ENERGY

SCHNEIDER ELECTRIC

6 6 A p r i l 2 0 1 5

SCHNEIDER ELECTRIC

Industry expertiseSchneider Electric attributes much of its success to its HR and social programs. “We have a number of initiatives relating to skills development,” he says. In the Global Solutions team alone, there are wide ranges of skills from energy consultants to risk managers, people who manage commodities and volatility, traders and market price experts, engineers and technologists, process managers, installers and more. “We believe in giving our employees the tools they need to develop both professionally and personally,” says Dewis.

Furthermore, the business is looking to emerging markets to widen its global pool of talent. “We are

Call our UK based experts on

01473 707755

www.havenpower.comBritish-based / Business electricity specialist / Named contact

elpfulMake the change to Haven Power.

Our business was built around service, and this extends beyond you, the customer, to the consultants we work with on your behalf.

We go the extra mile to ensure you have the best electricity product for your needs. We thrive on feedback and develop our products and

services around you and your requirements – no matter how complex.

Haven Power: The helpful approach to electricity.

Powering your business with support that’s

Proud to work with

Hayley Covey and Charlotte MawsonI&C Team Leaders

The number of employees that work for Schneider

Electric

170k

SCHNEIDER ELECTRIC E N E R G Y


SCHNEIDER ELECTRIC

looking to our emerging markets and economies and have a program called BipBop (Business Innovation at the Bottom of the Pyramid). As an example, we are currently training around 30,000 individuals in India in a whole host of different skills. This grows the talent pool of our community, our partner community and our associated companies, but it also grows the talent pool of our future employees in our growth markets,” explains Dewis.

Sustainable to its coreSchneider Electric is ranked as the 9th Most Sustainable Company on the Planet, and its vision

Pool of talent

6 8 A p r i l 2 0 1 5

SCHNEIDER ELECTRIC

is to create a world where we can all do more while using less of our common planet.

From a philanthropic viewpoint, the company is wholeheartedly dedicated to being sustainable in every way. It has targets surrounding gender balance, ethnical balance and charitable giving, for example it recently started a scheme to bring

Quality sustained

“We are focused on helping organisations understand how the lack of resources can affect them and how the impact of major shifts such as climate change are going to affect their organisation”

– Andy Dewis, vice president of international solutions EMEIA

E N E R G Y


SCHNEIDER ELECTRIC

energy to the world. It also has a scheme called the energy university – an online service, which is free to organisations, regions and the general public.

Looking to the futureSo what does the future hold for Schneider Electric? “We are looking at future trends and how we can move forward in a more digital and resource constrained world,” explains Dewis. “We have a big focus on helping our customer be more connected through technology and through our people and the skills and services we provide. “We then also have a challenge to try and address consumption in its most holistic form. We know that energy demand will come under constrain and we can see shifts in global population spending as middle incomes increase in the developing world – all these elements will effect where our resources go and that represents a challenges for our customers.

“We are focused on helping organisations understand how the lack of resources can affect them and how the impact of major shifts such as climate change are going to affect their organisation. We want to educate them to recognise a risk today as a potential opportunity tomorrow,” he says. “Ultimately, we’re helping our customers do more with less - harming no one and benefitting everyone. We are trying to ensure we can sustain a level of quality, stability and sustainability in people’s lives and our customers’ organisations.” Dewis concludes.

Company Information

I N D U S T RY

ENERGY

H E A D Q U A RT E R S

France

F O U N D E D

1836

E M P L O Y E E S

170,000

R E V E N U E

$30 billion

P R O D U C T S /

S E R V I C E S

Electricity Distribution

https://www.facebook.com/SchneiderElectricPS

https://twitter.com/SchneiderESS

https://www.linkedin.com/company/schneider-electric-professional-services-division

Retailers share supply chain innovation at MULTIMODAL 2015

7 1

Image copyright to Rob Sturges

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MULTIMODAL

Retailers including Boots, Waitrose, and Sainsbury’s will share insight on supply chain efficiencies and innovation at

Multimodal 2015, from 28-30 of April.Thought leaders from Blue Chip companies

such as the Co-Operative and Lafarge will discuss modal shift, omnichannel challenges, and best practice for new legislation during workshops at the exhibition.

Robert Jervis, Multimodal Director, said: “This year, more than ever before, Multimodal is bringing logistics decision makers together with innovators and suppliers working towards more efficient, compliant supply chains.

Green initiatives, omnichannel opportunities, and compliance will top the agenda at the UK and Ireland’s leading logistics show

S U P P LY C H A I N

www.mul t imoda l .o rg .uk 7 3

MULTIMODAL

“We are looking forward to a lively three days of networking and business opportunities for visitors and exhibitors, as well as some informative debate and useful training sessions.”

Over 250 transport and logistics exhibitors will be showcasing original solutions to an expected visitor audience of over 7500 supply chain decision makers at the free-to-attend show at the Birmingham NEC.

Multimodal features three days of seminars and workshops, as well as the exhibition, and a schedule of networking opportunities including a VIP Gala Dinner and Awards ceremony.

Emma Murray, Multimodal Seminar Director, Image Copyright

Michael James Photo

7 4 M o n t h 2 0 1 4

COMPANY NAME

Images above and left are copyright to

Michael James Photo


www.mul t imoda l .o rg .uk 7 5

COMPANY NAME MULTIMODAL

said: “We have teamed up with The Chartered Institute of Logistics and Transport (CILT), the Freight Transport Association (FTA) and others to put together a programme looking at how to run slicker, more compliant supply chains.”

Exhibitors from across the supply chain spectrum attending this year will include PLUS Logistics, DP World Southampton, Dachser Ltd, The Pallet Network, DB Schenker, and Charles Kendall Freight.

Registration is now open using an online system connected to LinkedIn profiles, which enables visitors and exhibitors to organise one-to-one meetings and easily contact suppliers and peers who are attending the event.

Multimodal is the UK and Ireland’s leading freight transport and logistics exhibition, which also features a series of topical seminars and masterclasses, and hosts a Shippers’ Village, giving freight buyers a private space to meet logistics suppliers. The supply chain show, entering its eighth year, is free-to-attend and will take place at the Birmingham NEC 28-30 April 2015. The Multimodal Awards and VIP dinner take place on Tuesday 28 April.

Multimodal 2014 was the biggest in the show’s history, with over 280 exhibitors and record breaking attendance of over 7100 supply chain executives.

For more information and to see details of the Multimodal Awards and VIP dinner, and other networking events, visit www.multimodal.org.uk

New Distribution Hub Strengthens Travis Perkins plc Supply ChainWritten by: Matthew Staff Produced by: Craig Daniels

7 8 A p r i l 2 0 1 5

TRAVIS PERKINS

Travis Perkins plc has seen strong and continued growth over recent years, with £5.6 billion of revenue generated in 2014

alone. The Group has almost doubled turnover in the past five years and is forecasting a similar increase in revenue over the course of the next decade. 2015 will see Travis Perkins plc concentrate on its appeal to customers, along with expanding its branch and service network.

Built up of builders’ merchants and retail businesses, a pivotal component of the Group’s rolling three and five year targets revolves around the supply chain, and Steve Smart, the Director of

The UK-based builders’ merchant is updating its physical supply chain to ensure the ‘Easy Supply of Product’ across all of its businesses

Travis Perkins plc’s

new Omega Centre

at Warrington


w w w. t r a v i s p e r k i n s . c o . u k 7 9

TRAVIS PERKINS

Distribution Development, is adamant that this strategy will continue to reap rewards moving forward.

“My role is to look at what we do today and determine how to do it more efficiently along with predicting what the business will require of us in three and five years’ time and deciding what we need to put in place now to make sure we are in a position to be able to deliver that,” he said.

“In the future, I would like to report that the things we’ve mapped out on our current five year plan have been delivered and were the appropriate actions to support the needs of both our customers and our businesses.”

Easy Supply of ProductTravis Perkins plc’s supply chain strategy is focused around the motto ‘Easy Supply of Product’ (ESP) and designed to improve both customer experience and the Group’s branch and service network. The Group is keenly aware of how important it is for tradesmen to get the products they want, when they want them, but recognises that this can be difficult to achieve across its fragmented market and multiple businesses. Travis Perkins plc showcases some of the most renowned players in the UK’s building merchant and retail industry, including the likes of City Plumbing Supplies (CPS), Plumbing Trade Supplies (PTS), Keyline Building Materials, CCF, Solfex

Key Personnel Steve SmartDirector of Distribution Development

Steve has been Director of Distribution Development at Travis Perkins plc since 2012 and is responsible for the development and implementation of the Group Distribution Five Year Strategy. He first joined Travis Perkins plc in 2010, bringing his 20+ years of experience in supply chain management and logistics to the role of Interim Logistics Development Manager. Previously, Steve worked as a consultant supporting Spicers and Proteus PM Ltd having previously held senior positions at MFI, where he managed the Logistic operations, integrating key distribution operations without any detrimental impact on service, operation or HR performances. In his spare time, Steve enjoys playing golf, spending time with his family and working on his own DIY projects.

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COMPANY NAME

As a solutions integrator, we aim to deliver a seamless transition from traditional telecom services to unified communication platforms with built-in resilience. So in addition to our considerable technical expertise, we factor in wider considerations such as contract flexibility, recycling, DR, internal policy creation and training to

ensure we meet those expectations.If you are still developing your telecoms strategy, we would be happy to carry out a full review of your current estate and offer advice and support on the solutions which will optimise telephony and IT services for your operations today but also with an eye on the future.

Putting you in control of your business communications

[email protected]: 0333 240 9880www.arrowcommunications.co.uk

When designing any new telephony solution, whether a leading edge picocell rollout, Lync integration or multi-site VoIP deployment clearly choosing the right technology

is key. However, Arrow measures success by meeting the expectations of the people, from business owners and senior managers through to end users.

www.arrowcommunications.co.uk



COMPANY NAME TRAVIS PERKINS

and Travis Perkins itself in the former sector, and Wickes, Toolstation and Tile Giant in the latter, and the ESP supply chain offers support to all of its businesses.

Smart explained: “Travis Perkins plc’s future plans are focused on the self-improvement of our business; aiming to encourage branch network growth, improve in-branch ranges and implement a multi-channel ordering system. Our ESP supply chain is an essential component in improving the Travis Perkins plc experience for both staff and customers, providing quick and easily access to stock for all branches”

“Updates to our physical distribution sites are a key factor in the creation of our ESP supply chain and our self-improvement of the business as a whole,” Smart continued. “We have a number

Travis Perkins

showcases many well

known businesses in

the industry

Itaque consed quam

aspero et modite

As a solutions integrator, we aim to deliver a seamless transition from traditional telecom services to unified communication platforms with built-in resilience. So in addition to our considerable technical expertise, we factor in wider considerations such as contract flexibility, recycling, DR, internal policy creation and training to

ensure we meet those expectations.If you are still developing your telecoms strategy, we would be happy to carry out a full review of your current estate and offer advice and support on the solutions which will optimise telephony and IT services for your operations today but also with an eye on the future.

Putting you in control of your business communications

[email protected]: 0333 240 9880www.arrowcommunications.co.uk

When designing any new telephony solution, whether a leading edge picocell rollout, Lync integration or multi-site VoIP deployment clearly choosing the right technology

is key. However, Arrow measures success by meeting the expectations of the people, from business owners and senior managers through to end users.

Arrow Business Communications has been providing innovative communication solutions to business users in the UK for over 19 years. A strong focus on bespoke propositions means that Arrow offers a range of products and value added services individually tailored to customers’ specific requirements. Our mobile, fixed and data solutions have a proven track record of reducing costs, increasing productivity and improving both communications and work flow within our customers’ organisations.

Website: www.arrowcommunications.co.uk

SUPPLIER PROFILEARROW BUSINESS COMMUNICATIONS

www.arrowcommunications.co.uk

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TRAVIS PERKINS

‘Dedicated to CPS, Travis Perkins, PTS, Keyline, CCF and Benchmarx, Omega serves 450 branches, and stocks 19,000 SKUs.’

of new sites that we are incorporating into our physical supply chain, which will improve all branch services in place today, as well as allowing space for future network and service growth, such as the implementation of a multichannel ordering system.”

Hub of activityTravis Perkins plc’s primary distribution hub, comprising four distribution centres, on Brackmills Industrial Estate in Northamptonshire covers a multitude of its businesses, and the introduction of a replica in Warrington – known as the Omega Centre and a hub for light side stock - along with additional Range Centres around the

Inside Travis Perkins Plc’s new Omega

Centre at Warrington



TRAVIS PERKINS

country to supply heavy side stock, is part of the ESP ethos, enhancing the flexibility and time-to-market of the supply chain significantly.

The new Warrington Omega Centre is a focal point of Travis Perkins plc’s current five year plan. Dedicated to CPS, Travis Perkins, PTS, Keyline, CCF and Benchmarx, Omega serves 450 branches, and stocks 19,000 SKUs. Smart explained the process behind opening Omega: “In 2010, we took a look at the business as it stood and how we could improve – with a particular focus on the ‘Easy Supply of Product’. We were still in a recessionary minded environment so to go and ask the business to invest tens of millions into the physical supply chain structure was an

Arrow BusinessCommunications

Arrow specialises in providing bespoke IT and telephony services for businesses in the UK, helping organisations like Travis Perkins to shape their telecom strategies as they transition to newer technology platforms. Arrow’s relationship with Travis Perkins spans 11 years and has developed into a close working partnership. Arrow not only supports Travis Perkins’ telephony infrastructure across all of their sites, but are currently rolling out a unique in-store headset solution which will enhance overall customer experience as well as deliver productivity savings of 13 – 14 man days in store per week.

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COMPANY NAME

Countynet ltd is a Midlands based company with a national presence.We provide installation and support services for voice, data and security for SMEs & corporate businesses across the UK.

We are a supplier with a broad range of services offered to enhance the efficiency of our clients network.

Understanding the technical effectiveness of a commercial environment is our strength.

Recognising the right IT tool for the job can be a challenge, so a brief consultation at the beginning helps aid

decision making, because one size really doesn’t fit all!

We strive to make your network an efficient machine that integrates seamlessly with your business.

We recognise that when your business grows, so will ours, a fact we never forget when it comes to customer service.

We understand our client’s network is only as good as the cable it runs on. Therefore getting the first network element right is crucial.

Tel: 08453 900 [email protected]

www.county-net.com



COMPANY NAME TRAVIS PERKINS

ask, but it was about aligning the physical supply chain with the Group’s aim to implement ESP across all businesses and provide mulitichannel ordering options for customers. .”

In addition to Omega, Travis Perkins plc is opening four ‘Range Centres’ across the country, to ensure every branch of each of its businesses can offer a wider range of stock, along with next day delivery on all items. The Cardiff Range Centre opened in December 2014 – it covers 80,000 square feet and supplies branches across the Southwest, joining the Warrington Range Centre which opened early 2014 . Two new Range Centres are also set to open in Tilbury and Coventry, in July 2015 and 2016 respectively.

These supply chain developments will allow all Travis Perkins plc businesses to offer a

Countynet ltd is a Midlands based company with a national presence.We provide installation and support services for voice, data and security for SMEs & corporate businesses across the UK.

We are a supplier with a broad range of services offered to enhance the efficiency of our clients network.

Understanding the technical effectiveness of a commercial environment is our strength.

Recognising the right IT tool for the job can be a challenge, so a brief consultation at the beginning helps aid

decision making, because one size really doesn’t fit all!

We strive to make your network an efficient machine that integrates seamlessly with your business.

We recognise that when your business grows, so will ours, a fact we never forget when it comes to customer service.

We understand our client’s network is only as good as the cable it runs on. Therefore getting the first network element right is crucial.

Tel: 08453 900 [email protected]

size of the cardiff range

centre

80,000ft2

Countynet Ltd has been providing infrastructure and support service for Travis Perkins for 11 years.

As a main contractor at Travis Perkins Omega Park DC project our responsibility is to provide infrastructure for: network points, wifi access points, CCTV, and door access, all connected via fibre optic OM4 backbone. Our skill set reaches far beyond providing cabling services. We will deliver a fully connected, functioning and warranted LAN underpinned by a host of vendors.

Website: www.county-net.com

SUPPLIER PROFILECOUNTY NET

www.county-net.com

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COMPANY NAME

“Omega and the new Range Centres are designed to be able to allow us to support our branches better” – Steve Smart, Director of Distribution Development, Travis Perkins plc

wider selection of stock and next day delivery on all items – all part of the ESP ethos. Smart explains: “Omega and the new Range Centres are designed to be able to allow us to support our branches better and ensure our customers can get the products they need easily, while they will also massively reduce our carbon footprint.”

Planning aheadThe ongoing rolling five year plan of Travis Perkins plc not only aligns with strategies and resources at hand today but, more importantly, lines up with predictions of what the Group’s strategies and

Team members at Travis Perkins plc’s new Omega Centre

S E C T O R

www.t rav isperk ins .co .uk 8 7

COMPANY NAME

Worker at Travis Perkins

plc Omega Centre

resources will be in the intervening years. “One aspect of our plans for the ESP supply

chain involves developing a multichannel ordering system for our customers, utilising initiatives like ‘Click and Collect’” Smart explained. “We have to manage the relationships with the builders we have supplied for many years, whilst ensuring that we’re in a position to deliver to the builder who is new to the trade and may have a different view on what his or her requirements are. Our ESP supply chain is paramount to this, ensuring all of customers can access the products they want quickly and easily. ”

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COMPANY NAME

To emphasise the company’s commitment to continuous self-improvement, Travis Perkins plc has also invested in updating its IT, introducing agile involvement methodology, as well as becoming a Google-based business and investing with JDA on a group planning and replenishment system to update its inventory systems.

Smart added: “We have a solid plan on how we will enable the requirements of the business moving forward by investing and working closely with our internal and external IT providers. Agile involvement means we are able to deliver benefits far quicker and far more aligned to the business needs than we’ve ever been able to before.”

“We have a solid plan on how we will enable the requirements of the business moving forward by investing and working closely with our internal and external IT providers.”– Steve Smart

Members of Travis Perkin plc



COMPANY NAME

For example, Arrow, one of Travis Perkins plc’s external providers, specialises in providing bespoke IT and telephony services for businesses in the UK, helping organisations to shape their telecom strategies as they transition to newer technology platforms. Arrow’s relationship with Travis Perkins plc spans 11 years and has developed into a close working partnership. Arrow not only supports Travis Perkins plc’s telephony infrastructure across all of their sites, but are currently rolling out a unique in-store headset solution which will enhance overall customer experience as well as deliver productivity savings of 13 – 14 man days in store per week.

Smart concludes that a successful supply chain strategy depends on “the ‘Easy Supply of Product’ and planning ahead to ensure this can be offered by all individual business units.” He continued, “We have a general merchants division, which is different to the retail division, which is different to the plumbing and heating division for example. But ultimately, we need to ensure they all have quick and easy access to products through our supply chain and can pass the time and cost savings onto their customers. It comes down to understanding and working with the different business units, listening to what they and their customers are asking for, having an interpretation of what that might look like in five years’ time and evaluating the investment required to enable us to deliver that.”

Company Information

I N D U S T RY

Supply Chain


Northampton

F O U N D E D

Founded over

200 years ago

E M P L O Y E E S

26,000

R E V E N U E

£5.6 Billion

P R O D U C T S /

S E R V I C E S

Building merchants

https://www.facebook.com/pages/Travis-Perkins/108362535851303?fref=ts

https://twitter.com/TravisPerkinsUK

http://linkd.in/1zXa2Tv

https://plus.google.com/113038966587353374940/about

Majaal looking to replicate its success across the GCCWritten by: Sam Jermy Produced by: Dennis Morales

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COMPANY NAME

Majaal Phase 1 (building 3) at BIW, Hidd

Majaal Warehouse Co. is looking forward to an exciting growth phase in its relatively short history, as

the company has struck upon a business plan to expand upon its early success.

The winning formula means the organisation has been able to progress without the burden of unnecessary capital expenditure, and now the prospect of having a presence in other Gulf countries such as Saudi Arabia and Oman is a distinct possibility.

Fully owned by First Bahrain, an innovative investment company, Majaal Warehouse Co. started as an organisation less than a decade

The SME-focused warehousing and industrial company from Bahrain is now ready to extend its reach to other countries

S E C T O R

w w w. m a j a a l . c o m 9 3

COMPANY NAME

Majaal Phase 1 (building 3) at BIW, Hidd

ago when strategic land was acquired to development a warehousing project. The intention was to plug a gap in the current market and cater towards small and medium-sized enterprises.

Amin Al Arrayed, Managing Director at Majaal, said: “We were embarking on a strategic development and the idea that came to us was to essentially focus on the industrial centres in Bahrain, and remedy a supply gap in the market.

“There were two key reasons for this; firstly the government was spending a large sum to develop the Salman Industrial City in Hidd with a close proximity to all major air, sea and land transport links. But central to this was the new Khalifa Bin

Key Personnel Amin Al ArrayedManaging Director Amin Al Arrayed is a co-founder of Majaal, which was his first project as the Chief Executive Officer of First Bahrain.He is responsible for the strategic objectives of both Majaal and First Bahrain. Reporting directly to the Board of Directors, he controls the development, performance and profitability of the company, ensuring the business maintains and develops its key business partnerships.

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COMPANY NAME

WWW.sanadengineering.com



COMPANY NAME MAJAAL

Salman Port. The old trading port was due for closure and everything would be shifted to this new port. We pre-empted the move, secured key land and as a result our warehousing project continues to serve SMEs very well to this day.”

Situated at the Bahrain Investment Wharf (BIW), the 60,000 square metre multi-purpose facility is now at full capacity with around 30 tenants who use the warehouse for anything from storage, documentation filing and cold-store to light manufacturing, printing, and wood production.

In addition to this some tenants have packaging and distribution operations ongoing at the warehouse. There is easy access for trucks and Majaal offers a variety of service for tenants such as 24/7 security, state-of-the-art IT, Forklift, shelving and racking procurement as

Size of Majaal warehousing

project in Bahrain

60,000m2

Sanad Engineering was founded in 1991 as an engineering company providing architectural, civil and land surveying services. We have 24 years of experience of successfully delivering projects to the Commercial, Retail, Healthcare and Industrial sectors. Our class of international engineers mirror Sanad’s brand of innovation, quality and reliability. By adhering to our business model of encouraging collaborative efforts we have always found a way of nurturing a natural synergy between ourselves, our partners and clients to achieve our objectives.

www.sanadengineering.com

SUPPLIER PROFILESANAD ENGINEERING

WWW.sanadengineering.com

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MAJAAL

Mazaya Logistics

at BIW

Experts in transport logistics

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A harmony of legal expertiseexperience and excellence

[email protected]

5th FloorAl Matrook Building

Road 1705 Diplomatic AreaP.O. Box 11522

Manama 317Kingdom of Bahrain

Zeenat Al Mansoori & Associates is a leading full-service law firm in the Kingdom of Bahrain. For 25 years, the firm has been delivering creative, effective and cost efficient legal solutions with sharp thinking and impeccable execution.

T + 973 17 532012 F + 973 17 536255

well as an array of other business services.

Company evolutionRecently the company came to a crossroads in its development as a result of being at full occupancy at the BIW site. It could either build more facilities or start to develop its project more as a franchise concept, and the organisation took the latter option.

Al Arrayed said: “Majaal now offers services to lease, develop and operate warehouses for third parties. We’re leveraging our experience and success in our own project and are now offering turnkey solutions for clients as a third party agent.

“We have successfully partnered with another

http://www.zeenatalmansoori.com



MAJAAL

landowner and investment company called Al Mazaya Holdings, we are developing and operating warehouses on their behalf; adding another 22,000 square metres on our portfolio of warehouses under management. We will act as facilities and leasing managers on their recently completed $20 million industrial site.

“We’ve been able to add a new revenue stream on top of the rental income with the service income. It has allowed us to expand without the heavy capital expenditure that comes with land acquisition.

“We think it’s a very prudent way of expanding across the GCC. This is how we envision growing our brand and undertaking projects outside of Bahrain.”

Effectively growing by a third in size as a result of contracts signed is something that would not be possible at the same speed if Majaal were to acquire and build on its own land. Al Arrayed sees the firm’s chosen method as a very scalable and successful business model which he hopes will allow it to gain an international presence.

As part of the wider remit, Majaal took part in the Gulf Industrial Fair in Bahrain and this provided the opportunity to not only announce it had signed with Al Mazaya but that it is eager to take on other such mandates.

Al Arrayed added: “We have actively marketed and introduced ourselves to industrial landowners from further afield. Our business model allows us to get into other markets without significant equity

Mazaya Interior at BIW

“Majaal now offers services to lease, develop and operate warehouses for third parties. We’re leveraging our experience and success in our own project and are now offering turnkey solutions for clients”– Amin Al ArrayedManaging Director, Majaal

9 8 A p r i l 2 0 1 5

MAJAAL

risks and that’s always been a consideration when looking at Saudi, Oman and other countries in the GCC. We have already registered Majaal as a trademark in these territories. We are able to be more flexible going forward and can expand with ease; we are in a prime position at the moment.”

Technology and future objectivesMajaal has the potential to go far beyond its current value if the prospect of future contracts are taken into consideration. Technology

Mazaya Logistics

Mazaya at BIW,

Hidd



MAJAAL

has become a key tool in the business and leveraging the correct systems to the company’s advantage is another standout feature.

AL Arrayed concluded: “I truly believe we can go from a $50m company to doubling size over a relatively short period of time thanks to the processes we have in place. We have invested quite heavily in IT platforms, such as customer relationship management (CRM) systems, that allow us to manage 50, 500 or even 5,000 tenants and their requirements, messages and payments.

“Having an automated system that alerts you on overdue issues is invaluable and keeps us on top of everything. Tech is a differentiator in our line of business and there’s no way we could manage tenants properly in Saudi and Oman if we didn’t have that automated system.

“Clearly management and reporting on profitability and potential savings need to be taken at a macro level and the ability to break down data will be critical as we expand across the GCC. The staff are the faces behind the success of Majaal though, and we are confident our core staff and the outsourced services will continue to be delivered to a high standard.”

Majaal hopes that within the next two years it has a presence in another country in the GCC, a landmark achievement in the company’s history, on its way to becoming a regional player.

It is clear to see from the success of the Bahrain model, Majaal will continue to be busy with savvy landowners for many years to come.

Company Information

I N D U S T RY

Supply chain


Hidd, Bahrain

F O U N D E D

2008

E M P L O Y E E S

Not disclosed

R E V E N U E

USD 3.3 million

P R O D U C T S /

S E R V I C E S

Warehousing

Dundee Precious Metals shows that caring leads to success Written by Tom Wadlow Produced by James Pepper

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DUNDEE PRECIOUS METALS

Heat exchangers, converter, absorption towers to stack

Dundee Precious Metals is maximising productivity from its European assets in a responsible manner having boosted

output fourfold at its flagship Bulgarian site while operating under the mantra ‘we succeed because we care’.

The company has four working projects and a number of exploration programmes spread across three continents, and is looking to cement itself as a global leader in sustainable mining operations, combining strong social work and provision of jobs for locals with environmental innovation in the mines themselves.

Having begun in Toronto, Canada, 30 years ago, Dundee Precious Metals began life as an investment fund in the gold mining sector, converting into an operator when its founders discovered the underground

The Canadian miner has embedded into Bulgarian and Armenian communities thanks to its environmentally and socially-responsible operations, bringing with it much needed economic boosts

www.dundeeprec ious .com 1 0 3


sites in Bulgaria and Armenia. Now it is close to opening another Bulgarian

mine and expanding its operations in Namibia, adding a sulphuric acid plant to convert the emissions created by its Tsumeb smelter.

Chelopech Encapsulating what Dundee Precious Metals is about is its flagship mine at Chelopech in central-western Bulgaria.

Bought by the business in 2003, the former Soviet-run gold, copper and silver mine has been given a complete facelift to the value of $400 million which has seen overall production quadruple, with ore output reaching 2.076 million tonnes.

Strong CSR saw Dundee embed into communities

“This is about earning respect as a foreign company and our stakeholder engagement and environmental work has allowed us to embed into societies”

– Rick Howes, CEO

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M I N I N G


DUNDEE PRECIOUS METALS DUNDEE PRECIOUS METALS

Chief Executive Officer Rick Howes believes there is even more potential to be extracted. He said: “We are exploring the whole surrounding region and believe there is a lot more mineralisation out there. There is about 10 years of life left in its current state, but we keep adding to this all the time and it is already one of the largest gold mines in Europe.”

Dundee Precious Metals has greatly upgraded the site, replacing the 50-60-year-old systems and processes with modernised technology and solutions.

For example, a recent innovation has been the introduction of wifi to allow real time tracking of operations, crucial to monitor productivity and stay on top of potential health and safety hazards. Partners such as HP and Cisco are helping to

ELTRAK is responsible for the full range of machinery Caterpillar , the world’s largest company of this type (earthmoving machinery, forklifts, power generators and marine engines) and has developed a network of branches throughout Greece, to provide the necessary after -sales support and to directly meet the needs that may arise in spare parts for earthmoving machines, generators (G / S), the lift machinery and shipping.

Website: www.eltrak.gr

SUPPLIER PROFILEELTRAK

1 0 6 A p r i l 2 0 1 5


bring further technological upgrades to the site.

Giving Back Key to success at Chelopech, and indeed all of the company’s work, has been the careful integration into the project communities, both in a social and environmental sense, convincing the local populations that Dundee Precious Metals is a positive influence in their areas.

Local people from the

surrounding are of the

Dundee sites

M I N I N G



Chelopech has seen a number of sustainable innovations implemented. This includes a new staged flotation reactor from Woodgrove Technologies, reducing power consumption of the flotation process by 50 percent. Air consumption is reduced by 80 percent and the amount of floor space required is 50-60 percent of that taken up by conventional equipment.

“We have proven it is a no brainer, and are

Key Personnel Richard HowesPresident & CEO

Rick Howes is a Professional Mining Engineer with over 34 years’ experience in the mining industry. His extensive industry experience includes progressive technical, operating, management and project roles in many of the largest Canadian underground mines and mining companies throughout Canada and most recently internationally.

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Solution for Metallurgy.

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Transforming Ideasinto Opportunities

Lagos: 14, JOY Avenue off Osolo Way, Ajao Estate. P.O. Box 7087 Ikeja, Lagos State. Tel: +234-803-328-9873 • Fax: +234-1-870-3622Abuja: 21 Parakou Crescent, Off Aminu Kano Crescent, Wuse 2, Abuja Tel: +234-812-7344-798 • Email: [email protected]

M I N I N G


DUNDEE PRECIOUS METALS DUNDEE PRECIOUS METALS

the first company to use this technology on a broad basis.” Howes added. “It is fully-installed at Chelopech and the big miners like Rio Tinto are now testing it. We will use it wherever we can as there are so many environmental and economic benefits to it.”

Other examples include systems which treat and recycle 100 percent of the water used at Chelopech with zero discharge, and a new conveyor to transport materials form the mine to the surface, replacing the use of trucks, leading to a 40 percent reduction in diesel use in 2013.

On the social side, building relationships with governments and local populations has been the most important challenge that Dundee Precious Metals has had to overcome. In 2013 the company spent $3.2 million on community investment and was recognised as the most

Rick Howes

Refractory competence for the nonferrous

metal industry

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RHI is the leading global partner for the nonferrous metal industry.

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computer simulations like CFD, FEA and thermodynamic calculations to support the improvement of metallurgical processes and furnace integrity.

connected excellence in all we do

Amec Foster Wheeler is pleased to be working with Dundee Precious Metals on the Krumovgrad Project in Bulgaria.

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A Paradigm Shift In Flotation

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generous financial donator in Bulgaria. “This is about earning respect as a foreign

company and our stakeholder engagement and environmental work has allowed us to embed into societies,” Howes said. “Convincing them that we will continue to invest was a challenge, but we have been successful and that is proven by the fact we are now working on a second project in Bulgaria.”

The company’s social responsibility is no better demonstrated than by its Chelopech English Language School, which was acquired with the mine and now attracts Bulgaria’s brightest students having seen significant investment. All teachers are Dundee Precious Metal employees.

Across all sites Dundee Precious Metals takes on local workers and provides them with training

“It was vital to take away the concerns of the local people and we are also introducing other sustainable features including new dry waste disposal methods”

– Rick Howes, CEO

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A worker at the mine

in the key skills required, encouraging promotion from within and embracing six core values – dignity and respect, continuous improvement, transparency, environmental responsibility, safety and community investment. Including contractors the company employs around 4,000 people.

Kapan and Krumovgrad In the southeast of Armenia, the Kapan underground mine has been modernised like Chelopech since the company acquired it in 2006, requiring a big focus on skills training and addressing language barriers.

Last year 403,000 tons of gold, copper, silver

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and zinc ore was produced, and although the mine is markedly smaller than its Bulgarian partner, there is excellent expansion potential.

Howes said: “We think we can double it in size, and though the decision to fully invest has not been made yet we are doing the studies and evaluations – within the next year or two we will have made a final call.”

Another exciting prospect is Dundee Precious Metals’ first open pit project, the second Bulgarian venture located just outside of Krumovgrad in the southeast of the country.

The site will be built by local contractors and a much-opposed cyanide method for extracting gold has been removed from any plans for the development, with Howes keen to showcase this as a pioneering example of an environmentally-sensitive mining operation. Production should begin by late 2017 or early 2018.

“The life of the mine is about eight years and we are still exploring the area in the hope of expanding this further,” Howes added. “It was vital to take away the concerns of the local people and we are also introducing other sustainable features including new dry waste disposal methods.”

Namibia There is also exciting work taking place in Namibia, home to Dundee Precious Metals’ specialised smelter which processes complex copper concentrates produced at Chelopech, having once served the notorious Tsumeb copper mine.


Dundee will also be

starting its first open

pit project in 2017 or

2018

1 1 4 A p r i l 2 0 1 5

Since buying the site in 2010 having been a customer of the previous owner, the company has invested around $350 million on modernisation, $242 million of which on a sulphuric acid plant which converts smelting emissions into product which is then sold onto Namibian clients.

Rossing Uranium Limited has already signed a five-year contract for 225,000 tons a year of sulphuric acid for use in its uranium mine, with local logistics operator TransNamib doing the transportation work by train.

Weatherly International is another customer signed up, with the total annual production of

“The uranium mines require the acid to leach out the uranium and the miners are keen to get their sulphuric acid locally as opposed to shipping in from other parts of the world”

– Rick Howes, CEO

M I N I N G


Company Information

I N D U S T RY

MINING


Toronto, Canada

F O U N D E D

1980s

E M P L O Y E E S

2,800

(4,000 with contractors)

R E V E N U E

Not disclosed

P R O D U C T S /

S E R V I C E S

Mining

230-280,000 tons already completely sold.“There are about 1,200 contractors on site

at the moment completing the project,” Howes said. “The uranium mines require the acid to bleach out the uranium and the miners are keen to get their sulphuric acid locally as opposed to shipping in from other parts of the world.”

The site has already seen emissions reductions of more than 44 percent over the course of 2013, with the new plant set to boost this figure even further.

Tsumeb is also improving its energy efficiency, with an 18.7 percent energy intensity decrease seen across 2013. Chelopech saw a 10.6 reduction while Kapan achieved a 7.3 percent drop.

By continuing to pioneer greener mining techniques across all of its growing and impending production sites in Bulgaria and Armenia, Dundee Precious Metals will continue to build on its collaborative work with local communities and bring vital wealth and resources to local populations.

Such principles will not be sacrificed as the company continues to grow, with Howes determined to lead the way as a responsible miner with a worldwide presence in the future.

He concluded: “You must earn the right as foreign company to mine another country’s resource – being an investor of choice is hugely important, and people want us to stay.”

https://www.facebook.com/pages/Dundee-Precious-Metals/259355914103483

https://www.linkedin.com/company/chelopech-mining-ead

How packaging manufacturer Firstan stays ahead of the game What can we learn about holistic sustainability from a leading packaging producer?Written by: Nye Longman Produced by: Marc Lewis

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F IRSTAN

Firstan’s die cutting machines are far cry from the first models used nearly

40 years ago.

Firstan supplys elite packaging services to an impressive roster of clients from the manufacturing and pharmaceutical

industries. In the run up to celebrating its 40th year of production, the company is investing in both its technology and its people power to stay ahead in a very competitive and often challenging market. The company remit covers full packaging design and production using the latest technologies, and also extends to braille implementation and brand protection.

OperationsProduction Director Paul Hartwig often eschews complexity when it comes to his manufacturing methods, preferring to defer to, “common sense” as often as possible. This homespun process

Clients always

recognises the

ingenuity of Firstan’s

design team

M A N U F A C T U R I N G

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F IRSTAN

seems to be working, he declared, “In some instances we are going from a phone call to producing 100,000 cartons in 24 hours.”Key members of the company meet on a monthly basis to discuss key business issues. Members of the ‘Continual Improvement Team’ discuss project progress and what the future may bring, as well as the latest developments in technology. Not only do regular meetings like this galvanise the vision of a company, but they also provide different sections of the business with a platform to communicate.Firstan is ISO14001 Accredited, which means that it is actively reducing waste within the company, and making best use of its materials.

Left: Paul Hartwig, Production Director.

Right: Andrew Hartwig, Managing Director

“In some instances we are going from a phone call to producing 100,000 cartons in 24 hours.” – Paul Hartwig, Production Director

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Not only does the company ensure that the paper it uses complies with the established guidelines set by the Forestry Stewardship Council (FSC) it also uses paper suppliers that comply with the PEFC (Program for the Endorsement of Forest Certification.) This commitment to high standards in an industry as paper-hungry as print is certainly refreshing but also took on a more personal note, when Hartwig told us, “We know our suppliers aren’t ripping up trees in rainforests and kicking orang-utans out of their homes.” Further to reaching its goal of zero carbon emissions, Firstan turned to a local source to

Firstan recognises that protecting the environment often ensures long term profit

Firstan uses paper suppliers that

compy with the PEFC



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Management meet

on a regular basis to

strengthen their vision

secure its haulage requirements. Aside from reducing the distance between the haulier and the Godmanchester factory, the contractor exploits its strategic position on the A1 corridor to ensure that its lorries do not return with empty containers. For a company in a sector that relies so much on distribution, this initiative represents a gold standard for transportation, one that is both “cost efficient and environmentally friendly” according to Hartwig.

People ManagementFirstan recognises that sustainability is a concept

Firstan recognises that protecting the environment often ensures long term profit

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F IRSTANFIRSTAN

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that applies as equally to its staff as it does the environment, and this paradigm has enabled the company to foster a loyal and aspirational workforce. Hartwig warmly informed us, “We have a few people that have been with us for over 20 years, some travelling probably for an hour each way… some people even drive past a competitor of ours on their way here, which tells you something!” Alongside a happy and motivated workforce, loyalty to this degree enables a company to retain employees that are experts in the industry, and who have experienced the growth of the business first hand. The company is keen to invest in the development of its employees, overseeing it all with an expansive computerised HR system that Hartwig and the rest of management use to, “see what skills are around us.” Furthermore, he stated, “Management are basically talent scouts. We have a low turnover of staff… if you look at employees past history, we have seen people go from shop floor to director level.” In line with the firm’s operational goal of becoming a zero carbon company, Firstan is keen to see that best practice begins at the top, with managers becoming role models for the rest of the company; this is headed by a dedicated training initiative that helps management comply with the strict standards of the ISO14001 accreditation.

Putting the talent to workUtilising cutting edge developments in

Firstan uses the HR

software to manage its

talent

“Management are basically talent scouts. We have a low turnover of staff… if you look at employees past history, we have seen people go from shop floor to director level.”

Paul Hartwig, Production Director

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manufacturing technology has not only ensured the durability of the company in the face of sometimes adverse market conditions, but has also created a system that delivers fantastic results for its customers. Perhaps the most interesting example of this is the adoption of Xrite colour management systems, which has reduced make ready times by up to 30 percent, as well as cutting waste by 50 percent. This surely represents the ‘sweet spot’ of implementing new tech – delivering returns to the business, the customer, and the environment. Hartwig is proud of the work his design team does, he said, “We supply to a lot of major retailers, and the feedback we get is that they have not seen anything as creative as Firstan.”

The company exploits

its enviable position on

the A1


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F IRSTAN

He added, “Especially within the pharma industry we’ve got demand for packing that is tamper evident and has hidden or covert security features… Innovation is more and more being sought by our customers and our design department has focused heavily on that area so we’re ahead of the crowd.” Alongside the methods used to successfully deliver pharmaceutical standards, the company also offers a range of overt and covert measures to ensure that its client’s brand is strongly protected from criminal counterfeiting measures.

ConclusionTo sum up, Firstan is an effective, forward-thinking company, whose dedication to quality and sustainability concerns has earned it a reputation for delivering for both its clients and the environment. Hartwig summed up its ethos best when he said, “We’ve always forged good relationships” and this, in essence, is the insight that puts this company out in front. Whether it’s the employees, its materials, or the very technology that powers the business, Firstan has every detail covered. The innovation that drives its product solutions spills over into the rest of the company, investing each decision with the confidence to wander off the beaten track. Returning to the director’s homage to common sense – it would be truly refreshing if the sense that is so engrained in Firstan were seen by every company, not just the packaging sector.

Company Information

I N D U S T RY

Manufacturing


Godmanchester

F O U N D E D

1976

E M P L O Y E E S

Not disclosed

R E V E N U E

Not disclosed

P R O D U C T S /

S E R V I C E S

Folding Carton

Manufacturer

http://www.facebook.com/firstan.co.uk

https://twitter.com/firstanltd

https://www.linkedin.com/groups/Firstan-Healthcare-Packaging-4127040

https://plus.google.com/110637253077590048891/about

HEIDI CHOCOLATEreplicating its success to a wider audienceWritten by: Sam Jermy Produced by: James Pepper

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HEIDI CHOCOLATE

Heidi Chocolate is looking forward to the next growth phase of its history, as the brand begins to strengthen its

relationships with new and existing retailers across the globe.

The company was originally set up as a non profit in 1994 by Swiss chocolatier and entrepreneur Jurg Läderach, whose family founded Confiseur Läderach, the famous producer of premium chocolate and confiserie products in Switzerland. Now the Heidi Chocolate brand is coming of age on its 21st anniversary since operations began, having a presence in nearly 50 countries across the world from Canada to China, with the bulk of business coming from within Europe.

Testament to the success of the organisation is the fact Läderach decided to sell the business in 2013 as he had decided his mission for Heidi had been accomplished. The firm was bought out and is now owned by parent company KEX Confectionary, also owner of the Kandia and Niemetz Schwedenbomben brands.

Franco Del Fabbro, Managing Director of Heidi Chocolate, said: “It has taken a lot of hard work over the years, where Heidi started out modestly with some old equipment from Switzerland. But today we have a turnover of approximately €18 million, 420 staff, and sales in nearly 50 countries with half of that turnover now coming from outside of Romania. It is

The premium chocolate brand is looking to enhance its presence in all of its export countries, especially the territories where it has experienced substantial success upon recent market entry

F O O D

www.he id i -choco la te .com/en 1 2 9

HEIDI CHOCOLATE

significant progress and an achievement to be proud of.

“We continue to be an end-to-end business, where we purchase ingredients, manufacture and sell directly. We have a sales force that calls on the key customers and we distribute from our own warehouses to them inside Romania. For some countries we have exclusive deals with specific customers, so we deliver and manage the relationship directly through an export group team. Other countries we have an appointed exclusive distributor who deals with the local retail chain.

“We are number two in the Romanian chocolate bar segment after Milka, which is a good position. However, you can only grow single digits a year depending on category and market condition. With exports, even though we are at a relatively

Turnover at Heidi chocolate

€18m

HEIDI CHOCOLATE

For 25 years now we‘re determined to realize your ideas: development, design and production of plants and machinery for the chocolate, cocoa and sweets industry.

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early stage in our presence, we are experiencing growth in the region of 10-20 percent. So that is the driver of our overall growth and naturally impacts our strategy.”

Position and strategyNot satisfied with resting on its laurels, Heidi Chocolate foresees double digit growth in the next five years.

“We are not talking about 10.1 percent either.” del Fabbro said. “That growth is going to be achieved through holding and growing our position in Romania and most importantly establishing ourselves as a clearly recognised

Heidi chocolate line

http://www.bsa-solutions.de

http://www.aasted.eu

F O O D


HEIDI CHOCOLATE

international brand. The focus of the past few years was conquering new countries, now our focus is to solidify that presence to get a better foothold in order to thrive.

“Overall business is solid, go to any big retail chain in Hungary or Poland and you will see our products properly displayed on the shelf. Other countries we have just entered; for example in the UK we started doing business with Asda at Christmas.

“The cost of cocoa has sky-rocketed and with the British pound getting stronger, it compounds the problem and remains one of our challenges. We source cocoa from the Altimarkas and Barry Callebauts of this world as we are still too small to have a direct link with the actual bean production, but we are looking to implement a more direct supply chain from Africa in the future.”

Heidi recognises that international expansion requires a more world-focused mind-set, but relationships such as the ones it has with Turkish hazelnut farmers and Moldovan walnut producers has already been in place for many years.

Investment in futureThe future development of the company is clearly more towards the export market. Central to this is the intention to retain a high percentage of hand craftsmanship for its chocolate product. Bespoke hollow figurines and personalised chocolate bars are tailored for retailers and consumers, and Del Fabbro claims this is something their mass producing, multinational competitors have more

“The focus of the past few years was conquering new countries, now our focus is to solidify that presence to get a better foothold in order to thrive”

– Franco del Fabbro, MD

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HEIDI CHOCOLATE

trouble to achieve, if nothing because of the relatively small scale of each order.

But expansion has necessitated cutting edge technology too. Del Fabbro said: “I was tasked by the board with creating a 2020 vision for the

Heidi chocolate

meets Florentine

F O O D


HEIDI CHOCOLATE

company, outlining where we want to go in the next five years and what we need in order to get there. Part of our strategic plan was a big boost in technology and machinery investment.

“Our capital expenditure this year is equal to that over the past three years. The single biggest investment has been the conching equipment, to further improve how the chocolate is made. The second was increasing capacity on specific product lines and the third was to upgrade certain areas and equipment facilities in order to obtain IFS certification by the middle of 2016.”

Of course, in production especially there is constant training and there will be a need for that as Heidi receives newer technology. Many employees have served more than ten years, and retention is high. Alongside this, the company recently finalised the creation of the Heidi foundation which serves to help employees in need and offers a helping hand to worthy community projects.

Looking forward, Del Fabbro believes the last challenge he faces every day is selecting what projects to pursue. “Enforcing some basic discipline is essential; we need to say for 2016 ‘these are the ten things we will be able to deliver and will make the difference,’ let’s not get distracted by appealing side projects or we may diverge from our strategic journey.”

It is a nice situation to have, and Heidi Chocolate looks primed for more success in the years to come as it continues to grow internationally.

Company Information

I N D U S T RY

Food


Romania

F O U N D E D

1994

E M P L O Y E E S

420

R E V E N U E

€18 million

P R O D U C T S /

S E R V I C E S

Confectionery

https://www.youtube.com/user/ChocolateHeidi

https://www.facebook.com/HeidiChocolate

https://twitter.com/heidichocolate

https://www.linkedin.com/company/heidi-chocolat?trk=top_nav_home





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business review europe & middle east – april 2015

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