Total Tools

• DCS CS 09 TotalTools.pdf

DCS CS 09 TotalTools.pdf

Total Tools is a network of 26 independently owned industrial tool retailers. Total Tools retails the major tool and machinery brands, speciality items and its own brand of selected tools. The motto “every tool, every trade” is used by Total Tools to clearly articulate their customers and what products they offer.

 The Total Tools Support Office coordinates and administers the importing and distribution of its own branded products. Historically the company operated as a cooperative with store owners individually fulfilling key Support Office roles.

Originally formed as a buying and marketing group, Total Tools has evolved into a leading national tool retailer with a proud reputation for technical and service excellence. The Total Tools Support Office and import program has also evolved with the business and is now a significant stand alone business employing its own staff.

The Challenge

 The co-operative structure served Total Tools well during its early expansion, however the same structure now began to stifle its ability to grow and react to changing consumer demands. It became evident to Total Tools that a new phase of growth was needed for the business.

• A national footprint was needed to combat big box hardware retailers who were claiming market share
• Total Tool’s import, administration and support programs were under funded and too reliant on a few member’s time and effort
• New members were needed to secure greater economies of scale and maximise supplier support programs
• A new corporate culture was needed to ensure Total Tools had the flexibility to react to market changes

The Solution

Total Tools engaged DC Strategy to develop a business model and corporate structure to ensure the ambitious growth targets of the group were achievable.
The project focused on several key areas including:

• Building a sustainable business model which allowed Total Tools to fund and support a rapidly growing network of independently owner stores. The model needed to be flexible enough to allow other potential distribution channels to be incorporated in the future.
• An economic analysis of the current stores, support office and import program to determine the scalability of the network. This was key to understanding how the growth of the network would be funded.
• Implementing a new recruitment and induction process to ensure the maximum number of appropriate prospects had an opportunity to join the network in the shortest possible time.
• How the people resources should be best utilised to maximise the likelihood of achieving thegrowth ambitions.

The Outcomes

DC Strategy worked with Total Tools to achieve the following:

• Unanimous member support for changing the business model to one which allowed autonomous Support Office decision making, an important step in achieving the growth objectives.
• Member support for a change to the Support Office revenue structure to fund network growth and ensure the support services for members were capable of facilitating the strategic growth desired
• A clearly defined plan for new store roll out and the corresponding Support Office resources required
• A new board of directors made up of founding members and independent directors was implemented and charged with ultimate responsibility of achieving the growth objectives

Total Tools now has the structure, funding and strategy to tackle its next phase of growth and achieve its goal of becoming Australia’s number one trade tool supplier. Potential new independent store owners enquiring about the Total Tools system can be confident the group has the structure and systems to support their business from inception to maturity.

 

DC Strategy, business growth specialists.

Level 5, 530 Collins Street,
Melbourne VIC 3000 Australia
growth@dcstrategy.com
+61 (0)3 8102 9200