Conrad: from distributor to procurement platform

Conrad's sourcing platform gives B2B customers quick and easy access to one million products and numerous customised services, including direct support in order and tender management, technical consultancy and e-procurement solutions. We spoke with with Maria JosƩ Massaro and Filippo Mattioli of Conrad Italy

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by Laura Reggiani |Ā 

Synonymous with technology since 1923, when it was founded by Max Conrad in Berlin, Germany, Conrad is a family business led today by the founder's grandson, Werner Conrad. Headquartered in Hirschau, Bavaria, with offices in 16 countries and international coverage, Conrad operates through one of the most important procurement platforms for technology products and services. Since last March, Maria JosƩ Massaro, Managing Director and General Manager in Italy, has been leading the company as a multi-channel supplier for convenient "one-stop shopping". She is assisted by Filippo Mattioli, Marketing and Sales Manager, and a team of around twenty people which is constantly being expanded.

Multi-channel supplier for convenient one-stop shopping. What does this mean in concrete terms? What is your business model?

Maria JosƩ Massaro | A one-stop shopping experience to make Industry 4.0. Business is changing, becoming more complex and faster. The influence of technology is growing. In order to keep up with a rapidly changing environment and stay ahead of the competition, the natural and essential requirement for e-tailers is to invest in digital technologies that simplify the customer experience throughout the supply chain. At Conrad we are introducing constant changes in the way traditional B2B customers are served and goods ordered and delivered. At Conrad, product gives way to service, which is now the real heartbeat and driver of every activity. Personal service and an automated sales process. "One-stop shopping" is not just a marketing slogan, but the concrete expression of what we are and what we want to pursue even better in the future. A purchasing platform that combines products and services in the catalogue, connecting manufacturers and industrial customers directly, harnessing the power of technology and Conrad's digital visibility.

Conrad is a German 'family' company. What are the advantages and disadvantages? What is different from your previous experience?

Maria JosƩ Massaro | I started my career in the electronics sector working for some of the biggest American multinationals in the semiconductor field, but the most important experience so far was the 18 years I spent in Farnell Italia, where I started the managerial path that led me to Conrad Italia as Managing Director. Conrad is a really motivating company and among the advantages I would mention the cut that I would define more "owner" and less "shareholder", which allows you to do a more wide-ranging and certainly more satisfying and fulfilling work. But the strategy of becoming the biggest player in the Marketplace-style supply chain is one of the aspects that has intrigued me most. I am honoured to be at the helm of Conrad Italy, but above all of an amazing team that has so much to contribute to the growth of the Italian branch.

Digitalisation has changed the buying habits of consumers and businesses. What services does the Conrad Sourcing platform provide?

Maria JosƩ Massaro | Now more than ever, in a global emergency situation due to the pandemic, there is a need for support and a reliable partner. The Italian subsidiary's proactive action and established relationships with suppliers have proved their worth even in times of pandemic. Machines don't have to stop just because a part is missing or because staff are smart working. Digitisation is not just about eliminating paper, as is often thought, but about changing all processes at the root. Service and maintenance, modernisation and expansion of systems are now increasingly essential for remote control of the entire production apparatus. The highest possible degree of automation and availability, combined with minimum maintenance and repair, is the prerequisite for a smooth process in today's industrial models. I think that new needs are emerging from this dramatic moment, and Conrad wants to be a facilitator also in the procurement of these new technologies. Access to smart purchasing systems, Conrad Smart Procure to name one, allows customers to save time and money while accessing an electronic catalogue, of products and services, available 24 hours a day, and provides them with levels of flexibility, independence and streamlined procurement processes that were not previously available. Conrad's e-procurement solutions, for example, provide an intelligent purchasing system that provides users with customised authentication solutions, reflecting the different needs of the purchasing department, developers and maintenance and repair technicians.

You have implemented the Education team to support digitisation in education. With what objective and what does the team do?

Filippo Mattioli | The education team has always been part of the Conrad world. For more than twenty years now, there has been a department at the German headquarters dedicated to educational needs. We have also been able to develop our own line of products, MakerFactory, to meet the needs of learning electronics. Here in Italy, our sales team has a dedicated figure to serve this segment as best we can. We mainly operate actively on the Public Administration portal, MePA, making our education catalogue, and others, available to all Italian institutes and universities. Unfortunately, the Italian public administration purchasing process is not yet as streamlined and digital as in other sectors, and a quick leap forward is needed to better meet the needs of teachers and students. In addition, we are always available for in-depth product analyses at the request of any organisation. Our educational activities can therefore be summarised as selecting the right products, with dedicated and safe features, and making them available on the main Italian purchasing systems. We strongly believe in the quality of our activity in the education sector. After all, to a large extent, today's students will be tomorrow's electronic designers and industrial systems engineers.

How are you structured and organised to support the Italian market? How important is still the local presence despite the business being "digital"?

Maria JosƩ Massaro | Despite all the improvements that have been and will be seen in the future in the digital arena, it is competent staff with extremely high levels of retail experience that provide the real competitive advantage. It is clear to forward-thinking retailers that investment in competent human resources is essential to drive service improvements in procurement platforms. Intelligent systems and competent staff can provide major benefits to any organisation operating in distribution but, when combined, allow market players to claim a level of differentiation and even uniqueness that sets them apart from the competition. At Conrad Italy, we strongly believe that the difference is still made by qualified personnel; this is why our structure is expanding and will be even more so in the coming years. As proof of this, the latest recruitment in the Inside Sales team will strengthen our local support to industrial realities.

What are the development and growth strategies for the Italian market? What are the objectives and what are the tools to achieve them?

Maria JosƩ Massaro | We are living in a time of great change and as a company we have a duty to take up the challenges and turn them into opportunities for our customers. While Conrad has already been established in Germany, where its headquarters are located, for many years, it should be noted that growth in 2020 in Italy was +40% on the previous year. The next few years will see us engaged in the implementation of the Sourcing Platform at the Emea level, and the crucial step in this sense will be the transformation from distributor to sourcing platform for a simple, fast and complete experience, aligning even more our goal to B2B. It's an exciting and engaging challenge in all respects, a vision and mission that I have shared from the outset in my new role.

We are living in a particular moment in terms of the supply chain. When will the balance be restored?Ā 

Maria JosƩ Massaro | The proactive action of the Italian branch and the consolidated relationships with suppliers proved to be valid and reliable even during the lockdown months, when e-commerce recorded significant monthly peaks in demand. The same qualities are also being put to use now in this situation of general shortage of raw materials and consequently of components. From our point of view, the current situation will persist at least until the first half of 2022. It is therefore essential to act along the supply chain as co-actors and partners and not just as customers and suppliers. We strongly believe in this. Maximum transparency and speed of information always make a difference in dealing with the scarcity issues we are seeing in the market. This is our commitment to our B2B customers.


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