News
The listening Bank
Whilst the national media’s attention was focused on the final party political leader’s debate on April 29th, the builders’ merchant trade press was also in Birmingham for an enlightening discussion with key members of the National Buying Group. PBM reports.

The discussions between NBG’s Executive Chairman Allan Durning, the Group’s Regional Chairmen Allan Bartlett (Northern), Peter Worthington (Central) and Trevor Jenkins (Southern) and the editors of BMN, BMJ and PBM magazines may not quite have matched the national significance of that fabled meeting between Tony Blair and Gordon Brown in Islington’s Granita eaterie, yet the atmospheric Bank restaurant in Birmingham proved to be a very effective platform for a revealing debate on merchant industry politics.

Conversation invariably encompassed the General Election, with much speculation as to the result - none of us quite had the foresight to predict the formal Con-Dem nation we received! — and the parlous state of the economy yet a myriad of other, more merchant-specific topics ensured the afternoon passed by in a flash.

From B&Q’s latest foray into trade sales, Tesco’s sustained plans for world domination now seeing it emerge as a property developer and the importance of the sustainability agenda to succession planning, the future of independent merchanting and the NBG’s own latest policies and initiatives, the discussions simply served to illustrate what a diverse, fascinating and progressive industry this is.

With good reason, the main focus always returned to the NBG itself; how the Group has adapted to the changing market conditions and is laying the foundations for its future growth. These developments have included a shift to a ‘category management’ approach along with initiatives such as the NBG Trading Hub, all designed to make it more streamlined, efficient and responsive to market needs.

Always keen to expand and attract new members (or ‘partners’ to be more accurate, as NBG is formally a Limited Liability Partnership), the Group’s ethos is centred on looking forward as Trevor Jenkins explained: “NBG is a ‘thinking’ organisation and we are constantly questioning the boundaries. The template we operate from now is of a leaner NBG; one with its eyes open for the 21st century and not the 19th. We also recognise that the next generation of customer is more likely to email you and not use a bit of paper and a pencil - we have to be more transparent, and become more efficient.”

Yet this is not to say that NBG is becoming detached from its roots - its collective whole is never more than the sum of its parts. “The key word is always ‘independent’. We do need to be leaner, but we must still offer that ‘personal attention’ that only independents can,” argued Allan Bartlett. “We are successful in attracting repeat business because we can offer something extra - we can get what the customer wants and will never turn someone away because a product
isn’t on a list dictated by Head Office. We have flexibility and this is where the strength lies in independent merchanting and the NBG.”

It is a point Peter Worthington picks up: “Real value isn’t always just pounds, shillings and pence. The level of communication between other members and with our suppliers means we can give our customers clear advice and support when it comes to issues such as product availability and supply issues…”

Something Trevor notes is going to be a significant factor as demand for building materials steadily increases: “Supply issues will be a big concern. Lots of factories and central depots and so on have been closing - availability will be key in the months ahead.”

“And this,” reveals Executive Chairman Allan Durning, “is an area where the move away from a ‘deal’ based approach to a category management structure will help to minimise the impact for Partner merchants and their customers. Suppliers - including big, multinational manufacturers - recognise NBG as an entity; a serious player. We’re deadly serious - as a group, we can punch pound for pound with the nationals. But collectively, we have more individual experience; we understand how this market works and we are here for the future.

“We know we have to constantly reinvent what we do - the market is evolving and it is very demanding, but we have been proactive. Independent merchants and the NBG specifically have raised their game and we are in a much stronger position coming out of the recession than when we went in.”