Torp Computing Group ASA

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INFORMATION MEMORANDUM
Merger of Komplett ASA and Torp Computing Group ASA
selling over the Internet has increased. For Komplett, this has meant improvements in current
supplier agreements and growing interest from new manufacturers. Direct sales to end-users have
increased over the years, reaching 72% in 2006. Komplett also sells products to roughly 6 000
different dealers in Norway and Sweden. These customers see the great advantage of Komplett’s
extensive range of products, short delivery times and the fact that this arrangement reduces their
need to tie up capital in maintaining their own inventories.
Sales channels
Komplett is a dedicated e-commerce company whose sales rely on customers placing their orders
in one of Komplett’s thirteen web shops. In Norway and Sweden, Komplett sells to end-users and
dealers through the Internet web shops at Komplett.no, Komplett.se and inWarehouse.se (endusers),
as well as Norek.no and Af.komplett.se (dealers). Similarly, Komplett has web shops in the
UK, Ireland, the Netherlands, Belgium, Germany, Austria, Denmark and France that sell exclusively
to end-users. Direct sales are organised for private customers, enterprises and the public sector.
Sales to private individuals accounted for approximately two thirds of direct sales in Norway, and
an even portion in the other countries.
Purchasing
In a highly dynamic market in which most products are updated or replaced several times each
year, it is crucial that the product/purchasing department keeps fully up-to-date on which products
are popular, and at the same time also ensuring the targeted profit margins are reached. The wide
assortment of products, short turnaround times, fluctuations in exchange rates, price changes and
highly competent customers are reasons why purchasing and logistics are core functions. Using
advanced computer systems, product managers can monitor critical parameters continuously.
Based on this information, they can adjust prices, the range of products, stock levels, etc. based on
the current situation and preferred development.
The purchasing organisation must at all times consist of specialists who focus on individual product
groups and on the competitive situation in the specific geographical markets. It is only by
monitoring the market carefully that product managers can offer the right products at optimal
prices, improving growth in sales and profits. Purchasing and marketing cooperate closely to obtain
favourable agreements for marketing support from vendors.
Logistics
Through close, efficient cooperation with logistics partners in different countries (e.g. the postal
services in Norway and Sweden, DHL, Tollpost Globe, Parcel Force/GLS, TPG Post and Deutsche
Post), Komplett provides efficient transport, forwarding and delivery to its customers. The central
warehouse facility in Sandefjord covers some 7,500 square meters and serves customers in
Norway, Sweden and Denmark. Operational responsibility for the warehouse in the Netherlands
that serves the customers in the UK, Ireland, the Netherlands, Belgium, Germany, Austria and
France, has been outsourced to a logistics partner. The reason for having a separate distribution
warehouse on the Continent is to ensure that customers outside Scandinavia can also benefit from
prompt, reliable deliveries.
Marketing
Komplett engages in significant marketing activities to enhance people’s awareness of the
company’s web shops. In collaboration with the company’s suppliers, marketing campaigns are
conducted to communicate messages crafted by Komplett and each individual supplier. Komplett
introduced a Nordic catalogue concept in 2006 to showcase its wide variety of products to a new
group of potential customers who would like to shop on the Internet. The catalogue was followed
up with TV commercials, providing more familiarity and knowledge about what Komplett stands for.