Flowtech Fluidpower 2016 Annual Report
The Group has a clear view of its growth objectives – to create a specialist fluid power organisation that remains focused on its core competencies through its delivery of 'class-leading' service and support. Our long-term growth model is based on both organic growth, coupled with complementary acquisitions in the UK and Europe in a very fragmented marketplace.
The successful integration of new businesses into the Group is critical, maintaining momentum and ensuring an ability to continue to trade with their customers seamlessly. To support this an experienced integration team has been created tasked with delivering a smooth and speedy transitions process. During 2016, Indequip, Hydravalve & TSL, were acquired and successfully integrated into the Group - these acquisitions fit within the defined strategy previously outlined of developing a Focused Fluid Power Group.
Brand and the ability to maintain and build a reputation is critical to our long term development. For all future acquisitions, brand and reputation will be paramount with the intention to maintain any local company branding and build on its existing position.
Product brand expansion continues to be a key strategy for the Group.
Read about our acquisition of Indequip
The strategy is to acquire complementary businesses operating in specific channels, highly focused, commercially independent operations delivering quality customer service at all times.
Integration projects are ongoing to streamline all processes across the Group to ensure every operation can minimise its administration burden and concentrate on delivering growth.
The Flowtechnology operation has always been innovative in its use of e-commerce and our website is fully integrated to our stock control systems. With 70% of Flowtechnology customers ordering online in the UK, this model will be rolled out to the other business units in the Group.
Business intelligence initiatives create insight which enables us to improve our products, our inventory management and pricing strategies.
We aim to have a market position as a one-stop shop supplier of fluid power products. The ongoing expansion of ranges will see the Group capture a greater percentage of current customer spend and also open up new business opportunities in the wider market.
The business nurtures its relationships with its OEM suppliers whilst developing its complementary Exclusive Brands.
We have built long term partnerships with our suppliers and quality logistics companies to enable us to provide the pace and responsiveness our customers demand. In the Flowtechnology segments we consistently achieve our service level targets of 99% orders delivered next day, this is underpinned by our strategy in products and sourcing and sound inventory management.
Where acquisitions include distribution operations they will be integrated into the Flowtechnology segments to provide synergy savings for the benefit of all our stakeholders.
Read more in our People case study
Read about the influence of our strategy on KPIs
Read about our risks in Risk management
People are one of our strongest assets. As well as recruiting new talent, we are keen to acquire companies who value the importance of their workforce and share our values of continuing strong traditions.
Investing in our management teams brings the benefits of improved retention and talent identification for succession planning. We see training and development of employees as key to our strategy to achieving our overall goals.
Our group business model