Strong in the Community
Interview with Michael Rolf and Jörg Axel Simon, Board Members of NORDWEST Handel AG
Cooperative societies have always played a significant role in the economy, especially for small and medium-sized enterprises. As associations of traders and companies, they not only provide a platform for joint purchasing and better conditions, but also promote the exchange of knowledge, innovations, and long-term partnerships. NORDWEST Handel AG, as a consortium of medium-sized specialist dealers, actively contributes to their success.
Wirtschaftsforum: Mr. Simon, Mr. Rolf, NORDWEST Handel AG has an impressive history. Can you give us a more detailed overview of the company's development and its current structure?
Jörg Axel Simon: Certainly. NORDWEST Handel AG was founded in Bremen in 1919 as a cooperative. At that time, Northern German hardware dealers came together to form a counterweight to the industry and to secure better purchasing conditions. At that time, purchasing and bundling of goods were central themes for us. Due to wartime, we moved to Hagen. Since 2016, the NORDWEST headquarters has been located at its current site in Dortmund. Over the decades, NORDWEST has developed further, especially after being converted into a stock corporation in 1998. However, we faced a severe crisis in the early 2000s, which led to a reorganization of ownership structures. In 2010, Rothenberger Holding acquired a major share package, which paved the way for a stable restart. Despite these upheavals, our goal has remained unchanged to this day: promoting medium-sized trade, especially owner-managed companies in this sector. It has always been important for us to support our partners in these structural and economic matters. Today, we support approximately 1,250 medium-sized partners, especially in the fields of steel, construction, crafts, industry, and building technology. This broad base allows us to respond flexibly to market developments and to be a strong partner for our traders.
Michael Rolf: Our dual procurement system is particularly noteworthy here. It consists of two central pillars: central regulation and wholesale business. In central regulation, our partners buy directly from the industry, while we handle the billing. This gives our traders planning reliability and relieves them of administrative tasks. The second pillar is our wholesale business, which is handled through our central warehouse. This central warehouse is a real competitive advantage for our partners. It enables them to source goods from a comprehensive assortment at competitive prices without having to build up high inventory levels themselves, as most of the deliveries are sent in a neutral box with the delivery note of our specialty trade partner directly to our partner's end customer. With over 250 million EUR in revenues, this business field is an essential part of our success model.
Wirtschaftsforum: What makes NORDWEST so special compared to other wholesale associations and companies?
Michael Rolf: One of our key success factors is our collaborative working style. Our motto 'Services are comparable, people make the difference' aptly describes our philosophy. Unlike many other wholesale associations, we work closely and on an equal footing with our partners. That means we do not see ourselves merely as service providers, but as partners actively contributing to the success of the merchants. Team dynamics and trustworthy cooperation are crucial factors. Another unique feature is the wide range of services we offer our partners. The more services our merchants use from us, the more they can focus on their core business – their customers and sales. We take over the less lucrative administrative tasks. For instance, we have developed systems that enable merchants to digitize their processes.
Jörg Axel Simon: In addition to services for our partners, we place great emphasis on an open and collegial corporate culture. In 2021, we embraced a culture of addressing each other informally within our company. This decision has led to a much more open and dynamic work atmosphere. We are convinced that values like community, initiative, and reliability not only strengthen our internal team but also shape our dealings with partners. This creates a special trust basis that distinguishes us from the competition.
Wirtschaftsforum: Digitalization is an important issue in today's world. What does the digital strategy of NORDWEST Handel AG look like?
Michael Rolf: Digitalization is indeed a central part of our strategy. We support our merchants in quickly and efficiently integrating digital solutions into their daily routines. For example, during the Corona crisis, we managed to set up fully functional online shops for merchants within just 48 hours. Such projects show how flexible we can be in meeting our partners' needs. In addition to such solutions, we also offer a series of digital services that relieve our partners in their daily work. For instance, our customers can directly connect to our e-commerce platform. Orders are neutrally packaged and sent from our central warehouse with the merchant's delivery slip. This enables our partners to offer first-class service to their customers without having to maintain high stock levels.
Wirtschaftsforum: Mr. Simon, how important is the issue of business succession for NORDWEST?
Jörg Axel Simon: Business succession is of central importance to us. Our partners are predominantly medium-sized family businesses, where the handover to the next generation often presents a major challenge. We see a responsibility to accompany and support these succession processes. We offer not only value-added services that enable our partners to compete with large corporate structures but also maintain close personal relationships with the entrepreneurs and their successors. This long-term binding is very important to us as we want to show the next generations that we can offer them a sustainable future perspective. Our philosophy of openness and partnership convinces not only the current entrepreneurs but also future leaders.
Wirtschaftsforum: What major projects are coming up in the near future?
Jörg Axel Simon: One of our biggest future projects is the construction of a new logistics center in Alsfeld. A hall of 72,000 m2 will be built on an area of 135,000 m², representing the largest investment in the history of NORDWEST Handel AG. With this new logistics center, we aim to take on even more processes for our merchants – from sourcing to delivery to the end customer.
Michael Rolf: Another important issue is internationalization. We notice that the international market is becoming increasingly significant for us, especially in the areas of e-commerce and digital services. We are already taking initial steps to gain international competitiveness and offer corresponding solutions to our merchants.