As Managing Director of National Buying Group (NBG), Nick Oates has seen the group go from strength to strength while managing to remain loyal to its core values. In the second of our two-part Q&A, Nick – during his final month in office – looks back at a decade at the helm of one of the industry’s foremost buying groups.
Q: How would you describe the buying group and the industry it operates within of ten years ago compared to how things are now?
A: I remember my very first board meeting – I’d only been at NBG a month and the question I was faced with was where do we start, Buying or Technology? Our technology left a lot to be desired so I said we’ve got to get that sorted in order to maximise our buying.
It’s taken a lot but we now have the Hub so Partners and Suppliers can see information on the various entities involved with NBG and it’s a really efficient way of sharing updates with the entire group. We’ve also got the Product Information Management (PIM) system which we’re really proud of; it’s been hailed as revolutionary and I think that’s true.
The PIM makes it easy for Suppliers to sell their products by keeping their product information updated so NBG Partners can instantly see things like images, data sheets and videos. It’s an incredible tool to boost sales for all parties.
Something else that has changed is our recognition that we’re not a solo entity in the supply chain but major player in the process of getting goods from manufacturers to tradespeople. Our focus on “Building Strong Brands” stands out because we’ve opted against creating our own brand in favour of supporting Suppliers and avoiding conflicts or competition.
Instead, we want to collaborate with Suppliers and achieve success with them.
“I’d only been at NBG a month and the question I was faced with was where do we start, Buying or Technology? Our technology left a lot to be desired so I said we’ve got to get that sorted in order to maximise our buying.”
Q: What is your take on the challenges faced by buying groups in the face of private equity consolidation?
A: I’ve been around long enough to know that this too is cyclical. When I first started, there were acquisitions of regional merchants being made by the major nationals. You get these cycles where, short-term, they can be quite damaging because they take some big numbers in terms of turnover and all the buying groups have had that experience.
Now, to be completely fair, some private equity groups can be helpful. They can bring new ideas and tend to take the lead on technology so that can be a really good thing.
But the reality is that what happens as a result of private equity acquisitions is that you often get a phoenix from the ashes situation. Lots of new independents start sprouting up to plug the gaps left behind and often they do extremely well. I think it’s because a key strength of independents is their ability to provide unparalleled service and be a real pillar of a community. Ultimately, better service wins.”
“A key strength of independents is their ability to provide unparalleled service and be a real pillar of a community. Ultimately, better service wins.”
Q: What would you say has been your proudest achievement?
A: As I mentioned earlier, I’m very proud of the creation of the PIM, but even more so of the people who have made NBG better. There are long-standing Partners with a lot of experience and what they put into the group is incredible.
We make changes at board level pretty regularly because we’re a democracy so people get the chance to stand and see NBG in a new light as they step up and get more involved. We’ve had team members go from Commercial Support and take on challenges like buying, managing PR or organising the Conference.
I think it shows that we’ve been able to create a culture where people want to do better and are given the support to succeed.
For more information on NBG, visit NationalBuyingGroup.com.
Click here to read Part One of our Q&A with Nick…
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