hydraulik - HANSA-FLEX Hydraulics Canada Inc.

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�� HYDRAULIKPRESSE HANSA-FLEX IN 10 YEARS TIME The RedBook – HANSA-FLEX expansion strategy focuses on global customer proximity Export devision manager Frank Schmidt The objective of the HANSA-FLEX management is clear: to continue developing the Group into the world’s leading hydraulic systems partner. By 2017, HANSA-FLEX will have 1,000 service centres in at least 60 countries. It will then have a workforce of 5,000 people generating annual sales of one billion Euro. One of the instruments being deployed to attain these ambitious goals is the HANSA-FLEX RedBook. It is one of the foundation stones for achieving the strategic growth of the business. In all its efforts, the company is building on the factors which have brought it success to date: flexibility, close attention to customers’ needs, service and tailored stockholding with immediate availability of spares or of parts for OE customers. 28 The foundations for expansion have been laid The construction of a second logistics centre in Europe and the enhancement of strategic purchasing activities are two factors which are helping the HANSA-FLEX Group to boost its competitive strength. By its acquisition of a holding in the International Hydraulics Academy (IHA) in Dresden, the company is at the same time establishing the resources needed to train large numbers of new staff. After all, well trained-staff are vital when it comes to keeping the promise of being the leading global hydraulic systems partner. The introduction of the SAP system in Germany in July of this year effectively brought the restructuring operations to their culmination. As a result, the processes and structures within the HANSA-FLEX Group have been made leaner and unified. This has created a model which will form the basis for efficient implementation of the system in other countries. Export Division is steering the growth The extent to which international expansion will contribute to the overall growth of the HANSA-FLEX Group was revealed when HYDRAULIKPRESSE spoke to Frank Schmidt, head of A donation to gladden children’s hearts the Export Division: “As early as in three years’ time, HANSA-FLEX Group turnover will be split evenly between domestic (German) and international sales. In 2007 Group companies outside of Germany were already contributing 38% of total earnings. Consequently, it is important not only to explore new markets but also, in parallel, to develop and adapt existing markets in a systematic manner. Essentially, that can be achieved both by further direct investments or acquisitions or by means of cooperation with partners.” RedBook concept outlines expansion processes “In developing the network of HANSA-FLEX branches we are guided by the RedBook. The RedBook is a log of all the experience gathered by HANSA-FLEX in opening up new markets and a catalogue of the factors which contributed to past successes. It sets out a standardised procedure for launching onto new markets and, by means of checklists and templates, ensures that all necessary actions - from market research to start of selling - are properly scheduled and their status routinely monitored. The aim of the RedBook is ultimately to provide a competitive edge enabling us to save time and human and material resources when making expansion decisions,“ Frank Schmidt explains. He is also eager to express thanks to his team for compiling the RedBook. The social commitment for which HANSA-FLEX is renowned is demonstrated both within Germany and internationally. Last year, export director Frank Schmidt suggested that, instead of distributing the usual Christmas gifts to customers and other business partners, a cash donation should be made to a deserving international cause. Thomas Armerding spontaneously responded to the idea and decided that a donation of 100 Euro should be made for every country in which HANSA-FLEX is represented. With a portfolio of 34 countries, this meant that a total of 3,400 Euro was raised. The funds from HANSA-FLEX were put to good use in bringing great pleasure to the residents of a children’s home in Brazil. A new recipient will be selected for the 2008 donation. If you have a suggestion, contact Frank Schmidt to discuss how your idea might be realised. ISSUE AUGUST 2008
HANSA-FLEX An initial approach to defi ning potential target markets - though only with short-term prospects - was provided by analysing and assessing the current customer base. Which customers already have international operations, and are they too using HANSA-FLEX locally? Customers like to be able to count on tried and proven suppliers, and are increasingly striving to reduce their overall global sourcing base. Consequently, HANSA-FLEX - with its network of in-house service centres (a key attribute, unmatched by other players on the market), its fl exibility and its willingness to realise custom concepts - is a welcome partner wherever it operates. The key is to talk to customers and respond to their ideas and planning. This is a challenge to all the sales staff in the HANSA-FLEX Group. They are the fi rst to hear about customers’ expansion plans. That intelligence can be utilised to devise strategies for successful cooperation both within Germany and on the international stage. It is therefore essential that such information should be passed on to the Export Division. A concept can then be jointly drawn up to provide the customer with optimum service and support. “This strategy of following in the wake of customer expansion forces us to become active and to analyse the new market based on the familiar ISSUE AUGUST 2008 M & A 60 countries € 1 billion 5,000 employees 1,000 service centres partners model. It also sometimes happens that customers of HANSA-FLEX international branches ask for assistance from Germany. Thus the international expansion of HANSA-FLEX often in turn generates new business back in Germany,” Frank Schmidt explains, illustrating the reciprocal benefi t of globalisation. In addition to existing customer contacts studies are also undertaken to fi nd out the countries in which HANSA-FLEX might be successful in establishing itself. This fi rst involves the Export Divison drawing up a desktop analysis, incorporating economic trends, the political situation, the country’s GDP and other macro-economic factors. In addition to information from customers, the level of competitive intensity in the country also provides an indication of demand for hydraulics. Selection of a suitable location is based on proximity to potential customers as well as on the availability of appropriately qualifi ed local personnel. “The HANSA-FLEX idea embodies the concept of globalisation. Products and services from the HANSA-FLEX portfolio most suited to the market in question are off ered, with some adaptation where necessary. That is to say, we have a unifi ed global market presence tailored to local needs,” Frank Schmidt asserts, drawing on his own practical experience. Customer benefi t is the key Will a planned market entry involve cooperation with an OEM or a parts service? Can Kanban warehousing, kitting, siting of production facilities or plant-in-plant partnerships help to open up the market? Can a mobile express hydraulics service like FLEXXPRESS be successfully established? HANSA-FLEX IN 10 YEARS TIME Once the decision on entering a market has been made, a number of fundamental issues are addressed and the staff in the Export Division conduct local surveys. “As well as contacting customers, we also visit suppliers, consult international chambers of commerce to tap into their expertise, and utilise information from trade fairs and exhibitions. All the information is incorporated into a business and fi nance plan which forms the basis for any investment decision. In this phase the company’s management places its trust in the work of the Division, so we are provided with the necessary freedom to implement plans,” Frank Schmidt explains. A strategic tool to propagate the corporate identity In terms of image, too, the RedBook dictates the uniform look of HANSA-FLEX branches all over the world. This includes the customary branding, featuring the red and white building decor and the company logo. It also lays down the standardised style of interior furnishings and fi ttings, right down to provisions for the obligatory cup of coff ee to be served to customers. The whole process is aimed at creating and maintaining a unifi ed HANSA-FLEX corporate identity; a global standard which is the foundation stone for business partners’ trust and confi dence in the business, in the same way that the look and style of a familiar fast-food restaurant promises consistency in the food it serves all over the world. This approach is underscored by staff training and by the consistent production of advertising and promotional material, catalogues, posters and so forth, in the unifi ed HANSA-FLEX corporate design. The fi rst new business unit to be based on this model was launched in August in Istanbul. More countries will be coming online through 2008 – Uzbekistan, Algeria, and authorised partners in a number of West African countries. HYDRAULIKPRESSE 29 H��
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hydraulik - HANSA-FLEX Hydraulics Canada Inc.

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