• Go To Market strategy
• DLH organisation
• Targets for 2014
• DLH values

DLH’s ”Go to Market” strategy will create growth and value based on the group’s existing core skills and leading position as a focused, global timber wholesaler. DLH will focus on a number of areas which will contribute to growth:

Major customers and joint products
DLH will adapt and market a broad range of homogenous products across the group’s markets in order to achieve economies of scale and ensure supply flexibility. This will make DLH more attractive for suppliers and make it possible to supply retail chains and industries across national borders. By combining these initiatives with efficient logistics, DLH’s objective is to commit a number of key companies to entrust parts of their supply work to DLH.

Status

• The expansion of the sheets business in France, Poland, US and Asia has been successful and will be continued in 2012.
• Work on creating stronger relations with retail chains has produced good results and developments have been particularly positive in the Nordic countries.
• The initiative is expected to make a positive contribution to sales going forward.
• The companies in the Netherlands and Belgium have been merged and DLH will continue its efforts to expand the product portfolio in Western Europe.
• In Russia, DLH is committed to introducing the Group’s broad range of homogenous products in order to achieve economies of scale and offer customers greater supply flexibility.

Selected markets combined in strong regions
DLH will work dedicatedly to achieve critical mass in selected markets and to become the largest timber wholesaler by far in these markets. In this way, DLH will have a major impact on distribution, establish profound market insight and the opportunity to optimise logistics and organisation.

Status

• DLH has introduced a new organisational structure and established five independent sales regions.
• In the individual sales regions, initiatives have been launched to improve logistics, inventory control and administration.
• DLH’s activities in the Nordic area have been focused. Regional activities in Finland and sales from the group’s Norwegian company to distribution customers are being terminated. In addition, the group’s Danish and Swedish administration has been combined in Sweden.
• DLH terminated the group’s regional activities in Germany and the UK with these markets now being served via Global Sales.
• In USA two administrative entities have been combined with a view to rationalising the business and achieving savings. In addition, the management has decided to dispose of the part of the American business which is based on sales from its own warehouses and instead cover the region via Global Sales.

Streamlined organisation with low complexity
Cost levels and the ability to react rapidly to market opportunities are imperative as a wholesaler in the timber sector. DLH, therefore, intends to simplify the organisation, bring decision-making closer to customers and significantly reduce fixed costs in relation to turnover. Areas of responsibility will be more clearly defined so that each unit has focused tasks and “best practice” will be deployed across the group’s units.

Status

• DLH has rationalised head office functions, which has resulted in significant savings, and has delegated responsibility and a number of tasks to the sales regions.
• The new organisational structure has been supplemented by reporting tools which will create greater transparency and provide both the group and regional leaderships with an improved platform for decision-making. 
• In the second half year, DLH implemented pilot projects in order to improve the group’s profitability and reduce working capital. The results of these projects have led to consistent standards and concepts which will be implemented across the organisation in 2012.
• DLH has intensified its focus on being present in selected global growth markets. In this connection, it was decided to centralise the development of Global Sales in Asia, and back-office functions were relocated from Denmark to Hong Kong. This concentration will continue so that all back-office functions during 2012 will be combined in a strong centre in Hong Kong.

Complementary sales channels
DLH is a wholesale business and can, at the same time, offer back-to-back trading. This provides an opportunity to offer customers differentiated services at various price levels, and to build up new markets without a complex and costly infrastructure. DLH will exploit these benefits and strengthen the sales regions and Global Sales activities.

Status

• The new organisational structure has paved the way for a new division of responsibilities between the sales regions and Global Sales. In this connection, DLH’s sheet material products have been successfully launched in several markets. The work to expand DLH’s sheet material products continues in 2012.
• Global Sales activities in Asia were strengthened through the addition of resources to the group’s offices in India and Vietnam as well as the concentration of back-office functions in Hong Kong. DLH wishes to develop a strong position within the sales of hardwood and sheet materials in Asia.

The leading supplier network and partnership with selected suppliers
DLH currently has approximately 900 suppliers globally. This creates a unique platform for robust supply, the development of new products and contracting with suppliers. DLH wishes to optimise and develop this supplier network and enter into partnerships with a number of central suppliers in order to reduce costs in the value chain and develop new solutions. DLH wishes to optimise the strong focus on securing trade with environmentally-friendly and legal timber in order that DLH’s leading position in this area is maintained.

Status

• DLH has expanded the group’s purchasing office in Cameroon, West Africa and strengthened the management in the region.
• Contracts have been entered into with major sheet material producers with a view to enhancing impact in selected market areas.
• Effort to secure trade with environmentally-friendly and legal timber continued in 2011 when DLH integrated the group’s CSR and environmental activities into the Global Sourcing and Global Sales business areas. The embedding will create an improved platform for meeting customers’ requirements and complying with international regulations.