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CEO Blog

15/03/2020

What the economy needs now!

Many governments are announcing financial aid, the floodgates are being opened and infrastructure projects should protect against the damage caused by the Corona...

Many governments are announcing financial aid, the floodgates are being opened and infrastructure projects should protect against the damage caused by the Corona virus.

State-owned business development banks, local banks.. this could all be too slow and too late for some. Companies, whether large and small, are doing everything they can to protect their employees. But it's also about keeping the business running. At Jarltech, we have a pandemic plan in place that is asking a lot of all of us. But, and I'm sure we are not the only ones, our employees are also involved. Big time!

What the EU or the individual countries should do now - and immediately - is:

1. The large credit insurers must freeze their credit limits for customer deliveries at the level it was as of March 10th, 2020, and in return receive back-up from the ECB or the countries. After all, if the insurers will now haircut across entire countries or sectors again, then in many cases we can no longer deliver. And that is exactly what credit insurers do every time there is a little cough. I think we are on the verge of this.

2. Providing funds through state-owned banks takes too long and is too bureaucratic. If the phantom is supposed to last another five weeks, lets say, then its important that payment terms are adhered to and that debits work. So the countries, or the ECB, should simply obligate the banks (with a national guarantee, of course) to increase all working capital credit lines approved on March 10th, 2020 by 30%. With this you usually impact companies that are currently healthy, because, after all, they have had their credit lines approved. The sum will be huge, because the increase will also be granted to companies, such as ourselves, who probably do not need the money at all. But if we do not use this additional liquidity at all, then the government also has zero risk in these cases.

3. It is imperative that the free delivery of goods in European continues remains possible. We are all interlinked and need things from each other.

4. School children, who now have »off« prematurely, should be told clearly that this is not a holiday and be asked not to take the bus or train to bars and discos. Not even during the Easter holidays, because we have a special situation on our hands. It's no use if we all isolate ourselves, but the kids are in a party mood, sharing bottles and joints. No, we're not on »Corona holidays«. We have an emergency here. You're endangering old people and the healthcare system!

5. Politicians are hammering out one employee-friendly regulation after another. Free time for child care, sick leave by phone for 14 days, if you are afraid, you don't have to go to work - that's all good and the right thing to do. But we have to catch up later, the Chinese are showing us that perfectly. There are 14 Saturdays in the fourth quarter on which Europe is working. We should all restrict ourselves and show solidarity. But please, really all of us. And I bet that employees will see very clearly how the employers are making an effort and would have no problem at all with such an arrangement. That would also be another signal to everyone that we all have to behave responsibly now, because we all (!) have to pay for the downtime somehow. So far, privately, we all can't help that the pandemic is here - but slowly the point has been passed where we can now point our fingers at the people who live as if nothing had happened.

6. Let's stop with the infrastructure projects. Even now, retailers can hardly find or pay for construction companies or handymen. These industries are working at full capacity. If they get a forced break imposed on them now, plus additional government projects, the rest of the world can forget finding handymen or construction companies in the next few years.

7. Why should processes be postponed? If we can buy 100 liters of disinfectant from our pharmacy on one day - yes, they have it again - then perhaps a court can do the same. And there you sit far enough apart from each other anyway.

I wish all my readers: stay healthy! And don't let anyone look at you funny if you are more careful than others. Thats not »uncool«, but rather, totally cool.

13/03/2020

Corona defense at Jarltech

The Department of Public Health has described our concept as »exemplary«, and I receive many inquiries about how we do this....

The Department of Public Health has described our concept as »exemplary«, and I receive many inquiries about how we do this. This is really not a trade secret, and perhaps it will help some of you contribute in delaying the infection.

- Our departments are (as much as possible) separated into freshly set-up home offices and presence in the company (with fewer people per room). The Sales department is even divided into three home offices and two office work areas.

- All office floors, the Technical department and the warehouse are divided into five individual insulation sections with no exchange of people, each with its own bathrooms, an assigned smoking area and coffee break area.

- Logistics works in two fixed shifts, with a break in between for the disinfection of equipment and work areas, and so that the shift workers do not meet.

- Employees who have to enter more than one area work with gloves.

- Disinfectants are available everywhere. By the way, there are enough disinfectants available for purchase again, since pharmacies are now allowed to produce them themselves with industrial alcohol. (So don't look in the drugstore or buy overpriced on the internet.)

- There is compulsory hand washing when starting work, a request for frequent hand washing with soap and washing instructions in the bathrooms.

If you separate shifts or departments, please also pay attention to which employees may live together or even be a couple. There is no point in separating departments and then exchanging viruses at night.

If an area is blocked because of a Corona case, the other part can then step in. In case this becomes difficult, negatively tested people they have come in contact with can continue to work with a protective mask, in case of doubt.

The employees are of course asked not to travel, to minimize social contacts, to call in sick at the slightest doubt, and not to shake hands. Meetings that cannot be avoided must be conducted with plenty of space between the participants.

Naturally, all these measures limit us a lot, and the loss of comfort is not nice. Everyone has to participate, not just in the company but also privately. That's asking a lot. But thats secondary, because we want to keep our employees healthy for as long as possible, continue operations without interruption, and also help to extend the time until the Corona virus infestation.

We hope that we will be successful with these precautionary measures.

06/03/2020

Supply Chain and Corona Time

We receive enquiries about the status of our supply chain around the clock. Therefore, its time to make a statement. The answer is: a limited all-clear....

We receive enquiries about the status of our supply chain around the clock. Therefore, its time to make a statement. The answer is: a limited all-clear. Naturally, we are constantly in contact with our suppliers and forwarding agents. The most important manufacturers have informed us in writing that production is at least »almost« back to full capacity. That's nice, but of course parts from sub-suppliers could be missing and the supply chain gets thrown askew. But this all only concerns China. Trump has brought us some »good luck« here, because thanks to the imposed tariffs, our suppliers have already largely moved their production from China to other countries. Not only because of the imposed tariffs - but also because of the rising labour costs - production in China is apparently considered a »luxury« nowadays.

As far as China is concerned, we are well informed, since we have 30 employees there. In the meantime, business at Jarltech China is back to normal again. The Chinese have decided to be cautious, but not to let their economy be taken away out of fear. Nevertheless, turnover there leaves a lot to be desired.

Another stroke of good luck is that in January we decided to increase our inventory by another 20 million euros. This means that our inventory is now higher than ever before and easily covers two months. Of course, some of the devices are missing because of the Corona situation. But there are almost always alternative products.

Unfortunately, we also have panic shopping. No, nobody has decided to use receipt rolls or labels instead of sold-out toilet paper, yet. Some big end customers simply want to ensure their roll-outs by ordering from stock rather than just-in-time. Some competitors are also trying to buy our stock via front men, but we defend ourselves against any cause for suspicion.

Our import forwarding agents also warn about slightly increased delivery times. A lot of goods are now flown instead of being shipped by sea - but since there are hardly any passenger flights to Asia anymore, there is less cargo space in the passenger planes. However, delays of up to one week at most are expected here.

Apart from the supply chain, we are currently mourning our LogiMAT party more, which was to take place next Wednesday in Stuttgart. Naturally, health comes first, but we would have loved to celebrate a fabulous party with you. Dont forget though, postponed does not mean cancelled. In this case, we will deliver as well :)

19/02/2020

Corona and the 2020 Euroshop trade fair

Entire booths are vacant because companies could not persuade their employees to visit a crowded venue. There could also be Chinese people there....

Entire booths are vacant because companies could not persuade their employees to visit a crowded venue. There could also be Chinese people there. Maybe even from Wuhan. And everyone else is automatically suspicious, too. Every second trade fair visitor will be wearing a protective mask - if visitors even come at all.

That was the prediction for the 2020 Euroshop. Okay, there truly was hardly anybody there on Sunday, but thats also because nobody visits a B2B trade fair on a Sunday anyway. On Tuesday though, the trade fair was full, packed even - in the halls it sometimes looked like the 1991 CeBIT. Yes, that was the CeBIT the year I wanted to postpone my high school graduation examination, because the CeBIT was simply more important than schoolwork. Unfortunately, the Hessian Ministry of Education did not cooperate, and I had to arrive and leave before and after my exams, but that's ancient history.

At the Euroshop I saw exactly two people wearing a protective mask. There was disinfectant gel lying around each booth, and some booths didn't offer food because of the Corona virus. No food because of the Corona virus? (Could also have been due to cost reasons.) I don't think that going hungry helps the immune system.

What was striking though, was that more hands were shaken than ever before. I don't know how many industry friends I hugged. Clearly more than usual. This is the new vote of confidence: I know you, you are trustworthy and you won't kill me with your virus. You are clean.

Whether this is medically reasonable remains to be seen. Offering a drop of disinfectant gel to a friend, even if it may not help against viruses, is a nice new gesture. Yet it is unknown whether more people than usual washed their hands after using the bathroom.

02/01/2020

Jarltech 2019 and 2020

The Jarltech group continues its exceptional performance....

The Jarltech group continues its exceptional performance. The order intake in 2019 reached over 323 million euros, which is about 35 million euros more than in 2018, more than doubled since 2014, and five times more since 2010.

Many thanks for this to our employees, our resellers and our suppliers. A large part of the success is due to the fact that Jarltech has invested highly in stocks. By making generous stock reservations for our resellers, together we can anticipate orders better and better and start a roll-out immediately when the »end customer« finally orders. We currently hold almost ten million euros of goods that are firmly reserved for customers. Our investment in inventories will be significantly increased from January onwards.

In addition, we have repeatedly found creative financing solutions for projects.

In 2020 Jarltech will add some new, highly interesting vendors to its portfolio. Further investments in IT, buildings and in our staging department are also already initiated.

We are looking forward to a good cooperation!

19/11/2019

(Value Add) Why does Jarltech need a restaurant?

Heres a question I was often asked over the last days. As a short intro (not everyone reads the local press from the Taunus): Effective December 1st, 2019 we will...

Heres a question I was often asked over the last days. As a short intro (not everyone reads the local press from the Taunus): Effective December 1st, 2019 we will be operating the restaurant »essWebers« in Usingen in a half-timbered house built in 1704, lovingly restored by the city of Usingen and lovingly cooked and managed by the Weber couple for the last five years. A jewel in a small town in the shadow of the cosmopolitan city of Frankfurt, acclaimed by Guide Michelin and Falstaff, but economically beaten by start-up difficulties and misunderstandings, together with construction sites around the building. The restaurant should go out of business.

No, our core business remains wholesale and yet this new partnership was obvious. Usingen is a city that is sometimes plagued by being »second« in location, compared to the Vordertaunus. Jarltech, on the other hand, is proud of its origins. In our industry we play in the first league in Europe and our »essWebers« can also do that. Because it is done with love. Sometimes its about being something »different« than expected, though sometimes its hard to keep the balancing act between »affordable« and »premium«.

We need a place where we can do business, but also where we can have fun in private. We work hard and the food services industry is an industry that also works even harder. If we come with Spanish business people, and the restaurant opens on a day it normally has off, and then the menu of the day is translated into Spanish, then that fits perfectly to the Jarltech claim. That is truly »premium«.

And if a guest really enjoys the truffle noodles, and we can bring them fresh to the next meeting in London by the glass, then thats just awesome.

Of course we are in a small locality, but thats where we come from and we do not shy away from competition with the rest of the world. If you offer a lunch menu for 12.50 euros, somebody is bound to find it totally overpriced. The fact that our »essWebers« does not earn money with it is due to the claim to be »premium« at noon as well. One person finds this to be exaggerated, the other finds that he actually saves money.

This is not about big money. Jarltech is also committed to its hometown. Our success is based on our great team from our region. Jarltech knows its origins, is proud of them and never arrogant but always generous. Likewise, our cuisine is not over the top, we have no mini-portions and do not require any guest to appear in a suit (otherwise I could never go there). Nevertheless, »essWebers« cannot merely be »simple«, but must always be »premium«. »essWebers« simply wants to make guests happy, just like Jarltech wants to make customers happy.

I think we can inspire each other.

With banquet rooms, »private rooms«, a restaurant, a bar and a terrace, and above all a flexible team, there are possibilities that our customers otherwise only know from our »Staging« department.

We are proud to be able to invite our customers and suppliers there, just as we are pleased to be able to offer this whole range to guests from our favorite city of Usingen. We have a team there that we can trust without hesitation. Now you can also taste and smell Jarltech its about time!

16/10/2019

Sterilize your money immediately!

Finally, an e-mail from Asia reaches me about a product I have never heard of before: a »money sterilizer«.

...

Finally, an e-mail from Asia reaches me about a product I have never heard of before: a »money sterilizer«.

No, seriously. »Dirty« money can be found not only in offshore bank accounts or under a pillow, but every day in your very own wallet. The e-mail I mentioned claims that 36,000 Americans die every year from flu-related illnesses. 10% of them have acquired the virus through contact with banknotes. Supported by a study by the »Center for Disease Control and Prevention«. Without me being able to or wanting to check it out now.

Apparently, an American university has also taken a sample and detected more than 3,000 different types of bacteria on one-dollar bills. A European university found 6,000 varieties.

The solution is to treat the money with a plasma ion cluster (whatever that is) and a HEPA filter during the automatic counting process. It only takes 20-30 seconds. In order to then get the clean money into circulation, I suggest that all cashiers should always wear disposable gloves (using new ones for each transaction, because they are also accepting »dirty money«), and the cash drawers should also be cleaned regularly.

Although, perhaps simple contactless payment is a better recommendation instead.

If you are not contactless, but have the appropriate contacts, please make the EU Commission aware of this issue. Either we will do huge business, because we will sell these devices millions of times over, or, because cash would be banned for health reasons, all payment transactions must be converted to cashless - that too is a nice deal. The task of abolishing cash would no longer be handled by the Ministry of Finance, but by the Ministry of Health. Interesting.

21/08/2019

Comment: One competitor less?

Yesterday, an American competitor of ours announced on the stock exchange that it would like to discontinue the distribution of »non-digital products«, i.e....

Yesterday, an American competitor of ours announced on the stock exchange that it would like to discontinue the distribution of »non-digital products«, i.e. hardware, in some geographical areas. Among those areas affected is Europe. The business should be sold. But it is not said to whom, or if there are already negotiations, or when that could be. They want to free up the working capital used in this business into a business with higher margin opportunities.

Since the announcement yesterday, my phone has been constantly ringing. Everyone wants to know what I think about it. Did we win a war? No, we were never at war.

First of all, this competitor and his staff are highly esteemed by me. We occasionally see each other at events and there is no hostility.

Second, of course, selling or discontinuing the hardware distribution in Europe would generate a lot of movement. The message to the employees and the customers is quite clear: your area is not exactly the pearl of the company; our capital is misused there. This area is now the unfavoured child.

Third, is that good for Jarltech? Probably. For long-term things, one or the other dealer might see that now could be the right time for a change of his distribution partner.

Fourth, is that good for the resellers? Sure, it's always good for a reseller to shop at Jarltech :) However, there are still enough distributors on the market who do a good job. The selection is hardly limited.

Fifth, what are the vendors doing? Probably nothing. There are on-going contracts and one will first have to wait and see. Some vendors who like to pump goods into the channel at the end of each quarter, might have less choice. But if the other distributors make more sales as a result, they can also store more. We have sufficient resources in every respect to absorb additional business.

Good news for the vendors: heres one less that can make demands to push for certain benefits in Europe based on their success in the US. After all, most vendors are headquartered in the US.

All in all, the competitor repositions itself and at some day will be no longer our competitor. I do not think that this part of the company will simply disappear. There will be a new owner, the winds of change will blow, and we will see what happens.

Why is this message coming precisely at this time? Above all, why are nearly 500 employees now unsure about their future, without anything being specific? By telling that this part of their business is not really delivering what they expect, will this not have a negative effect on the price when selling this business?

That, I think, is a typical action of an American company which is listed on the stock exchange. At the same time yesterday, the quarterly and annual results were announced. The last quarter was, according to their own statement, »below expectations«. Since analysts can not help but notice that others are evidently growing in the same business and delivering good results, it was probably important to show some kind of activity now. The outlook of freeing up working capital and an overall lower turnover, but higher profits, should certainly drive the stock price, or at least prevent a downward spiral due to the weaker quarter. It could have worked, too: so far, the price has fallen, but only very slightly.

07/08/2019

20% more sales, thanks to Jarltech!

I am very proud of my team and I simply have to brag about it. Its nice for a reseller to quantify the advantage we offer him....

I am very proud of my team and I simply have to brag about it. Its nice for a reseller to quantify the advantage we offer him. The managing director of a rather large system integrator in Europe has just said in an interview that thanks to Jarltech he easily makes 20% more sales.

Before, he mainly bought directly from the big vendors, but then the company switched to Jarltech a year ago.

The reasons are obvious to him: - Hardly any delivery times. - He saved all the time needed for vendor communication. - We accept his orders electronically, as it is easiest for him (no vendor portals anymore). - His sales department now has much more time to acquire new customers, because 80% of the procurement communication is eliminated. - We prepare the devices in our staging center the way he has to deliver them and even send the goods directly to the installation site.

Sure, we can do a lot more than that, but I think that's already a few good reasons. Why should a system integrator himself stick 1,000 anti-scratch covers dust-free onto handheld computers, or install the same software 1,000 times?

So much for self-congratulation today. :)