Consumables
Howard Smith and PaperCo re-structure for brighter future
Monday 26. October 2009 - The linking of the business support functions of Howard Smith Paper Group (HSPG) and The Paper Company (PaperCo), announced in June, is now implemented and will be developed further in the coming months.
The key back office functions of finance, human resources, IT, purchasing and marketing have all been moulded together to provide a more effective service to both companies.
At the same time, the separate customer-facing sales operations of each company have been re-structured to strengthen the individual value propositions of the two distinct brands whilst enhancing overall operating efficiency.
“In todays tough market conditions every business must cut costs, but our two Paperlinx companies were determined that as well as reducing overheads they would together create more effective and efficient back office operations,” says Steve King, joint managing director.
“It means we will have reduced our workforce by 65 people, or 10%, but taking this action is the responsible route, safeguarding the businesses and positioning them well for the future. The changes have been done sensitively, without compromising each companys distinct face to market.”
The structural changes implemented by HSPG and PaperCo have been designed to provide customers of both companies with a more straightforward choice and a focus of expertise. Five stand-alone trading operations dedicated to specialist markets – Precision Publishing, Reel Paper, Retail Paper, Savory Paper and WebCo – will augment mainstream merchant operations, which have also been re-organised.
“At Howard Smith Paper, HSP commercial print division led by divisional managing director, Andy Buxton, continues its focus on the commercial print optimisation strategy which we announced in 2007,” says joint managing director, Malcolm Lane-Ley. “Designed to align our business to our narrow and deep philosophy and reduce customers cost-in-use, this is progressing well and now we are bringing the sales capability and scale closer to our objective.”
At PaperCo eight new regional sales divisions have been established for Scotland, Northern Ireland and the North East; the North West; Yorkshire and Humberside; the Midlands; East Anglia; London; the South West and the South East. Under the direction of newly appointed managing directors for the North, Carl Dearing, and the South, Simon Pilkington, each region shares a common operational ethos and retains at local level the trading names which are well recognised by its customers – Dixon & Roe, Donald Murray Paper, Masons Paper, North West Paper, Rothera & Brereton and Southern Paper.
“By simplifying the management structure and reducing the number of layers at local level, customers will be able to get even faster decisions and speedier response,” says Malcolm Lane-Ley. “Our customers value our global strength and local focus and this new organisation will strengthen both.”
In the new joint marketing department, Dave Cooling takes on the role of overall marketing director and will also manage HSPG marketing until another appointment is made. Bob Ide continues as head of PaperCo marketing supported by marketing manager Charles Eaton. Two separate resources within the new department will ensure each companys distinct service offering is clear to the market, whilst centralised production resources and three strategic business development teams – covering environmental, cost in use and e-commerce – will be accessed by both companies.
“Good internal communication is not obvious to external customers but the efficiency it brings ultimately determines how responsive a business can be,” says Cooling. “We have restructured and refocused but enhanced rather than reduced our effectiveness in the market. Customers will not be disappointed.”