OFI Industrial

Sales Charter

10th of January, 2012

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What does the Charter contain?

It could be called guidelines for the immaterial parts of the relations with the industrial accounts – it covers the basic thinking that should be in place in all departments in all our companies.

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Why do we need a charter?

Because in general OFI and our companies are still novices within industrial sales – we need to establish a culture!!

Selling to industrial accounts is different than selling to an artisan baker or a wholeseller.

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Rule # 1

We will continuously strive to increase the value we add to the business of our partners

If we do not, then we will not be partners for long!!!

3 key words:Continuously

IncreaseAdding value

Requires the right mind set – we should never be satisfied! Always looking for improvements.

Value can have many faces – it could be support within innovation, just-in-time deliveries, consistent quality, competence in purchasing, quality assurance,

application competence, the right packaging (for instance batch size), always correct invoices etc.

All departments of our companies are involved!!!

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Rule # 2

We will have quality at the base of everything we do

If we do not, then we will lose in the end!

But quality should be defined as delivering what has been agreed + a little bit more.

If the customer needs and wants a Skoda, then we can not sell him a Mercedes – he would probably like one, but he will not be willing to pay for it. We need to improve

our work at understanding what the customer wants and needs

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Rule # 3

We will be pro-active in all aspects of our cooperation

Most industrial sales forces are reactive, and to some extent that is necessary, but real partners are pro-active in understanding the customers and understanding

their customers, and use this knowledge to add value to the value chain.

Very much related to rule # 1.

Again the right mindset is the key – through the whole organisation.

A simple example could be in customer service – informing the customer that the delivery will be 2 hours late as soon as it is known instead of the customer having

to ask where the delivery is.

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Rule # 4

We will approach any issue with an open mind

Seems an obvious point, but when you look at your organisation more in depth you will find at least some closed minds.

This is NOT the same as anything goes or the customer is always right. The point is that we should not perfunctorily reject an idea.

Innovation can be in all parts of our companies, but innovation will not blossom if we close our minds.

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Rule # 5

We will establish clear and direct channels of communication

Essential in order to be fast and minimize miscommunication

We will be more professional when we let QA talk to QA, let margarine expert talk to margarine buyer etc.

But this means increased need for internal communication

And increased need for setting and agreeing on common goals

And always remember that we do not just do this (or anything else) just because it says so in ”the manual”. There has to be a reason.

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Rule # 6

We will be accessible and respond with speed in any given situation

This is often one of our Achilles’ heels – we are often quite slow in answering or reverting to a customer.

It is a shame because a lot of our colleagues are equally slow, and this is an area where we at a low cost can differentiate ourselves.

In my book any query from any industrial customer to any department or person should be answered within maximum 8 working hours.

My postulate is that at least 90 % of all queries can be answered more or less directly and the rest must then be answered by ”I have received your query and I

will revert as soon as I have a relevant answer, which I expect is on xxx”

It is again a mindset that needs to be established!!!!

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Rule # 7

We will be trustworthy and treat information from our partners confidentially

Relatively self-explanatory

But it does have some consequences – if we are to be trustworthy, then we deliver on all our promises. I am sure that all of you can find examples where we have not –

again it is a mindset that must be established:if we promise, then we also have to deliver

If our partners are to believe that we treat their information confidentially, how can we then let a comment slide that ”competitor X is actually also looking at that

trend”. Our way of talking to our partners should be changed!

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Rule # 8

We will also put demands on our partners – we aim to find long-term win-win solutions

Partnership is never a one-way street! Both (or all) partners should gain from the partnership – otherwise it will not last!

We should always remember that we are chasing profitability, not turnover.

Most customers/partners will respect us more when we say no or demand something in return – if we can give good reasons!

Our main efforts should be focused on long-term thinking!

We should be open about being in business in order to make money.

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The full text of the Charter

We, the undersigned companies of Orkla Food Ingredients, hereby declare that we will do our utmost to live up to the following key points in our relation with our industrial customers. And we will do this in all our departments. 1. We will continuously strive to increase the value we add to the business of our partners

2. We will have quality at the base of everything we do

3. We will be pro-active in all aspects of our cooperation

4. We will approach any issue with an open mind

5. We will establish clear and direct channels of communication

6. We will be accessible and respond with speed in any given situation

7. We will be trustworthy and treat information from our partners confidentially

8. We will also put demands on our partners – we aim to find long-term win-win solutions

Orkla Food Ingredients Dragsbæk Group Sonneveld Group Credin Group Odense Group Idun Group KåKå Group Credin Bakery Partner Orkla Foods Romania

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Implementation (suggestion)

January : finalising in the Industrial Sales group

March : approval and signing in the OFI MT (IBM)

April – June : presentation in local MT’s (Group MD’s/IBM)

After summer : implementation in local companies (local MD’s)

Special presentation at next OFI Motivation (October?)