As Managing Director of National Buying Group (NBG), Nick Oates has seen the group go from strength to strength while managing to remain loyal to its core values. In this Q&A, Nick – during his final month in office – looks back at a decade at the helm of one of the industry’s foremost buying groups.

What do you think makes NBG a successful buying group?

“Over the years I’ve worked with many buying groups and, as you might expect, I’ve got a lot of love for NBG. It has a great heart, and the people understand that the Partner and Supplier support benefits us all. It has this cooperative approach making it a strong entity that rides through challenges without too many issues. The principles at the core of the group remain the same which is how NBG keeps hold of what makes it special.

“For example, we have great teams in place and have built some really strong relationships. Something I look back on fondly is the annual NBG Conference because it’s always great fun and a fantastic way to build community in the industry.

“It’s generally true that if you’ve got good people, good service and good support, you’ll go a long way. For us, we need to be competitive to negotiate good deals. However, the deal is only the beginning: once that’s done, NBG, the Partners and the Suppliers are firmly on the same side trying to maximise sales. Improved sales benefits everyone so that’s a huge focus for us – helping our Partners improve sales, in turn benefiting our Suppliers and making NBG more competitive.”

What would you say has been your greatest challenge?

“One challenge has been to understand that independent merchants go through a cycle and so continual investment in new Partners is essential. Some join and you really enjoy seeing them thrive and grow before they take the decision to move in a different direction. The truth is, it can be hard not take that personally. What’s equally true is that new merchants are always looking to join so it’s never long before gaps are filled and the cycle continues.

“It can also be difficult managing everyone’s opinions. It’s a feature of a democratic group that every voice can be heard and sometimes new Partners take a while to find their feet in that regard. When they do, they see that their input really is valuable to us. There are simply two sides to democracy: you get opportunities and a voice on one side, and on the other, you have to accept responsibilities and the fact that things won’t go your way every time.

How would you say NBG has navigated the digital challenges faced by the industry?

“Merchanting is a traditional industry so change tends to come little by little. I’ve learned this with technology as merchants tend not to have people naturally drawn towards the latest digital ways of working, with a few forward-thinking exceptions. This brings with it a degree of concern as we can see that any merchant that isn’t fully electronic is in danger of being obsolete at some point in the not-too-distant-future. That’s why we’re encouraging our Partners to get to grips with the new stuff now, because soon it won’t be an option in order to survive in a tough market.

“The digitalisation of the way we do business is something we’ve taken very seriously during my time at NBG – so much so that we’ve made unparalleled investment in a dedicated team and some really advanced systems. The Hub we use to communicate business-critical information and our Product Information Management (PIM) system have really shown our Partners the power of having up-to-the-minute pricing and information at their fingertips.”

What have been the most notable changes at NBG since you took the helm as MD?

“I’d say that NBG has become increasingly professional. It’s far more organised and the use of technology and data has improved dramatically. Compliance with deals has seen a huge rise too. Even with this evolution, we’ve retained our core principles, strengthening our community and involving Partners in decisions that impact the group.”

How would you describe the buying group and the industry it operates within then, compared to now?

“I remember my very first board meeting – I’d only been at NBG a month and the question I was faced with was where do we start, Buying or Technology? Our technology left a lot to be desired so I said we’ve got to get that sorted in order to maximise our buying. It’s taken a lot but we now have the Hub so Partners and Suppliers can see information on the various entities involved with NBG and it’s a really efficient way of sharing updates with the entire group. We’ve also got the PIM which we’re really proud of; it’s been hailed as revolutionary and I think that’s true. The PIM makes it easy for Suppliers to sell their products by keeping their product information updated so NBG Partners can instantly see things like images, data sheets and videos. It’s an incredible tool to boost sales for all parties.

“Something else that has changed is our recognition that we’re not a solo entity in the supply chain but major player in the process of getting goods from manufacturers to tradespeople. Our focus on “Building Strong Brands” stands out because we’ve opted against creating our own brand in favour of supporting Suppliers and avoiding conflicts or competition. Instead, we want to collaborate with Suppliers and achieve success with them.”

What is your take on the challenges faced by buying groups in the face of private equity consolidation?

“I’ve been around long enough to know that this too is cyclical. When I first started, there were acquisitions of regional merchants being made by the major nationals. You get these cycles where, short-term, they can be quite damaging because they take some big numbers in terms of turnover and all the buying groups have had that experience. Now, to be completely fair, some private equity groups can be helpful. They can bring new ideas and tend to take the lead on technology so that can be a really good thing.

“But the reality is that what happens as a result of private equity acquisitions is that you often get a phoenix from the ashes situation. Lots of new independents start sprouting up to plug the gaps left behind and often they do extremely well. I think it’s because a key strength of independents is their ability to provide unparalleled service and be a real pillar of a community. Ultimately, better service wins.”

What would you say has been your proudest achievement?

“As I mentioned earlier, I’m very proud of the creation of the PIM, but even more so of the people who have made NBG better. There are long-standing Partners with a lot of experience and what they put into the group is incredible. We make changes at board level pretty regularly because we’re a democracy so people get the chance to stand and see NBG in a new light as they step up and get more involved. We’ve had team members go from Commercial Support and take on challenges like buying, managing PR or organising the Conference. I think it shows that we’ve been able to create a culture where people want to do better and are given the support to succeed.”