Connections that Last
Interview with Jens Schöne, Managing Director of Verbindungselemente Engel GmbH
Having a screw loose is not only a disadvantage in the proverb. As an expert in connection technology, Verbindungselemente Engel GmbH focuses on easy-to-handle and simultaneously secure solutions. With its innovative products, the company successfully faces the increasing digitalization in production logistics.
Wirtschaftsforum: Mr. Schöne, the company was founded in 1949 as a hardware store. What are today's main pillars of the business?
Jens Schöne: We focus on trade and industrial business. Our portfolio includes both trade products and private labels. We offer everything related to connection technology. This includes DIN and standard parts as well as special and drawing parts. We also rely on our own developments. Another important pillar of our business is our Kanban systems to optimize the procurement of C-parts. With our Kanban systems, Kanban boxes and E-Kanban solutions, we help our customers design their logistics to be flexible and efficient. This is about just-in-time delivery directly into production logistics.
Wirtschaftsforum: Please give us an example of your own developments.
Jens Schöne: For example, we recently developed E-JET®, a proprietary product line for timber construction. Timber construction has special requirements since softwoods need to be securely connected. The screws, among other things, must bite quickly and split the material as little as possible. We are familiar with these special requirements and have optimally tailored our E-JET® line to them.
Wirtschaftsforum: What sets Verbindungselemente Engel apart from other providers?
Jens Schöne: We are known as specialists for the wood industry and also for the caravan industry. For the caravan market, we have developed specialized solutions that are suitable for lightweight construction, for example. We distribute these products under our own brands. In addition, our customers generally appreciate our intensive consultation. We are reliable and fast, close to customers due to our regional presence, and sustainably positioned as a family business.
Wirtschaftsforum: How do you address the comprehensive issue of sustainability?
Jens Schöne: We have already taken various measures, such as switching our lighting to LED. In addition, we distribute compostable bags that can be used, for example, for parts of a switch cabinet. We monitor our CO2 emissions very closely and emphasize that our freight partners comply with the EURO-6 standards. We find that this topic is becoming increasingly important, especially among our larger customers. There are often specific requirements, particularly from our industrial customers. In retail, the business is still largely price-driven.
Wirtschaftsforum: What are your main target industries?
Jens Schöne: For one, we supply screw dealers. Moreover, we target various industrial sectors, such as timber construction, the caravan industry, mechanical engineering, agriculture, the household sector, and also automotive suppliers.
Wirtschaftsforum: From which regions do your customers come?
Jens Schöne: We are especially strong in Bavaria and Baden-Württemberg. In addition, we also have customers in Austria and Switzerland. In the medium term, we aim to establish a presence throughout Germany, but we also see potential in our local regions.
Wirtschaftsforum: What are your themes for the coming months?
Jens Schöne: Just recently, our E-Shop has launched. Especially when it comes to consultancy-intensive products, personal consultation will always be necessary, particularly in industrial applications. However, for standard parts where availability and price are checked, E-commerce is a very good complement. We aim to grow profitably, with a higher margin, but most importantly, we want to offer socially integrated services, for example with solutions for occupational and product safety.
Wirtschaftsforum: To what extent does digitalization drive the further development of the company?
Jens Schöne: We have completely renewed our IT systems at the beginning of this year, including introducing a new ERP system and a new warehouse management system. We will consistently drive process innovations in the coming period to better serve both our industrial and trade customers. We will also digitalize externally, for example with an EDI.
E-JET® is a fine example of digital innovation at the product level. Digitalization also drives our sustainability forward.
Wirtschaftsforum: What do you expect from the market in the coming months?
Jens Schöne: Recently, business trade has decreased significantly. Companies have full warehouses and logistics centers. We hope that this area will calm down again in the second half of 2024. We are optimistic about the industrial business outlook and might even expect cautious growth this year.