2019: Harry Dochelli was named President of Essendant following its acquisition by Staples owner Sycamore Partners in January. It was a transaction that has certainly changed industry dynamics in North America, bringing together Essendant (and its independent dealer customers) and the traditional big-box ‘enemy’ under the same umbrella.
Prior to the closing of the deal, there were predictions of a dealer exodus from Essendant, but Dochelli urged customers to adopt a ‘wait-and-see’ attitude and give the wholesaler a chance to show what its new relationship with Staples would bring to the table. Those mass exits did not materialise and Dochelli says that Essendant has “a strong pipeline” for 2020.
That is due in no small part to the level of trust that resellers are putting in Dochelli and his team to deliver on their post-acquisition promises. One big concern was data confidentiality, and Staples is clearly taking its commitments to the Federal Trade Commission-imposed firewall very seriously. Another worry was fair competition but, in one recent example, Essendant’s Vertical Markets Group has helped secure a place on the new State of Georgia office supplies contract that was previously only held by Staples.
Earlier this year, Dochelli promised some “quick wins” for dealers and, free from the shackles of quarterly Wall Street earnings requirements, Essendant invested in reducing the cost of goods for dealers. Longer term, the goal is to tap into Staples’ supply chain, breadth of product assortment and purchasing power to make independent dealers more competitive.
A number of initiatives are already in development. These include: a project to improve service levels by making Staples-held inventory available to dealers; providing Essendant customers with access to Staples’ in-house strength in the promotional products and managed print categories; and tapping into Staples’ product sourcing and manufacturing scale to reduce lead times and lower product costs.