CEO Blog | Jarltech.com

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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. :)

01/08/2019

Does working longer hours make successful?

The Alibaba boss, Jack Ma, is of the firm opinion that longer working hours are a career booster....

The Alibaba boss, Jack Ma, is of the firm opinion that longer working hours are a career booster. Those who do not work long enough can hardly count on success. However, is the multi-billionaire really right with this opinion?

Work six days a week from 9am to 9pm: This is what Jack Ma, founder and head of the online retailer Alibaba, calls for. On the social network Weibo, the 40-times billionaire wrote that a 72-hour week was »no problem at all«. It would only be problematic for people who don't like their work anyway.

I think: It goes without saying that work has to be paid for. And the vast majority of people also need a private life. The weekly working hours that should be worked are always specified in our contracts. And, in the commercial sector, overtime has always to be paid. However, what about employees who can achieve success in very different ways? A sales representative can call a hundred people in eight hours, or just two. It is possible that the person who only makes two calls is the more successful employee because he puts all his efforts into those two customers. Or maybe he daydreams for half the day. Who knows? How often do people go on a cigarette break? Do they make business calls during that time or do they discuss issues with a colleague or do they rather play games on their mobile phone? Does an employee run like a clockwork and leave on time while "stealing" two hours from the workday through WhatsApp or private chats?

Exactly Jack Ma excludes the group of people who, in the morning, think about how many minutes they can "pocket" from their employer from the get-go, because they won't be successful anyway. However, can a company »expect« that someone will work more than is stated in the contract? At which annual salary can a company start expecting this attitude? 40.000 euros per year? 80.000 euros? Then you could also say: »If you want to earn these 80,000 euros, you must first show that you are prepared to do all this.« Just as you used to have to work for free for years as an intern in the advertising industry, around the clock, hoping to get a good job later on.

My opinion: Complete nonsense. Those who are counting every minute at work don't have fun. Obviously not the employee because if the work is not done, he takes stress back home and neither does the employer. The employer does not care about the visits to the toilet if the results are good.

But what if an employee in a commercial department, where he wants to make a career, complains about the fact that there is occasional training outside working hours? Of course, he can demand overtime pay or free time. However, an employer can also expect an employee to train further. It's bad enough that the company even has to initiate this. Believe me, I have already seen that participation in a Christmas party was accounted for as overtime.

What about dinner with customers, suppliers or colleagues? Is that working time or free food? For me, for example, this is fun in most cases. And if you don't enjoy your work, you probably won't succeed either. Maybe that's the deciding factor.

29/05/2019

The daily struggle for customer limits

A recurring battle for us is the struggle for sufficient credit for our dealers....

A recurring battle for us is the struggle for sufficient credit for our dealers. We usually find a solution because we not only rely on credit insurers, but often also set our own limits. We frequently significantly increase the limits of credit insurers at our own risk.

If that does not work, we often find a creative solution, for example, the reseller does not have enough limit, but a great end customer does. While we do not do business with end users, we do charge the end user the agreed price at the request of the dealer, and then pay the margin to the dealer. True, he dealer will not have turnover in the books, but full profit and he loses the risk.

If turnover really needs to be in the books, it can also be arranged so that the end user pays us in trust. Yes, such a conversation with an end customer is dumb, but do not worry. If I have a great software solution, but am just a small company, then a large well-known end customer has understanding for such a solution. They are not hearing that for the first time.

Credit limits are important to us all, like the air we breathe. Unfortunately, some entrepreneurs do not even think about how to improve their creditworthiness. And that annoys me.

This mainly affects small companies that suddenly get a large order, and then quickly need a credit limit of 500,000 euros, although only a mere 20,000 euros of their business is capital stock. Sometimes one wonders why we should take more risk than the entrepreneurs themselves.

I often hear, »My end customer is the billionaire company John Q Public Inc., so they will definitely pay and then Jarltech will get its money.« Maybe. But if my dealer messes up or the end customer claims that the solution does not work as it should - than John Q Public Inc. simply does not pay. If the dealer has tight finances then things can quickly go bad, especially if you cannot wait three years for a Supreme Court decision with 100 expert opinions.

Perhaps it will help one or the other to hear how I, 25 years ago, unfortunately without any capital, started to build up and maintain the creditworthiness of Jarltech.

Each new balance sheet was sent to the well-known credit insurers and credit bureaus on the day of publication, fully transparent and with commentary. My banks, or as it was at the beginning only one, additionally received a monthly report with order numbers, plus some information about what kept us busy. Although no one had asked for it. This builds trust.

If you do not want to publicize numbers, you usually have something to hide. For the sentence »I do not give out any numbers, otherwise the competition will get them«, there is only one translation, which reads: »The numbers are too bad to show.«

Even those who have not studied business administration (to this day I have not seen a university from the inside) must understand what equity ratio is. And if this is only important on the balance sheet date, then I have to manage this key figure and not have an unusually high inventory on this day or drive a maximum credit line utilization, which unnecessarily drives up the total assets and screws up the debt ratio. Banks and insurers have their rating systems, even if they sometimes dont really fit.

What we also do: if we have profit carried forward in the company, which I cannot or do not want to distribute to myself anyway, then I can occasionally adjust the capital stock to the size of my company from the companys own funds. We just did it again in May. It just looks better and the bank knows that it is more difficult for the owner to run away with the money.

Another classic mistake is a reorganization. »We are so successful, we have just opened a new company especially for this area«. Yes, only then it is completely new and without any credit history, so for the time being it is not creditworthy. Unless a parent company is liable for it, in a way that everyone can see in the commercial register.

For our decisions at our own risk, it is true that the customer who puffs up the most (especially with regard to his million dollar limit with our competitors) usually walks on the sharpest razor blade. If you look at Google Earth for the credit decision and find only a garden shed at the address instead of the company headquarters shown on the website, then the case is quickly clear ...

However, I must also say that some credit insurers make funny decisions. Because there are not so many of them anymore, their power is simply very great. If an insurer suddenly sees an increased lump sum risk for an entire country or an entire industry, then one or the other innocent party may actually be affected.

As mentioned at the beginning, we almost always find a good and quick solution. Credit risks are part of a distributor's core business. But, we are not a venture capitalist. If a customer pays well, we are there quickly, at our own risk. And I am pleased that we are not bound by any ratings and are sometimes also allowed to make a gut decision, because people in our industry know each other.