What's NewS Issue 6 June 1996 networking 13 putting a sales force in place wherever ^Babobank has offices abroad. Last year it BRtablished a presence in New York, and only a month ago put a team in Sao Paulo, Brazil. These teams can help local Rabobank clients exporting consumer goods to Europe. In the case of the US, for instance, such goods might include textiles or lobster or computer parts. From Brazil, it could be leather products. These tend to be medium-sized deals with short payment periods. The aim is to smooth cross border flows. SINGLE MARKET 'No one knows better than we Europeans ourselves how very different our various member countries can really be. In terms of payment systems. In terms of payment morality. But since we have a pan- European network acting locally on each these different markets, we can handle Rabobank clients exporting from the US and South America are left with the impression that Europe really seems like a single market. Our French subsidiary will handle their French receivables, our Italian arm looks after their sales in Italy, and so forth. Our aim is to provide seamless service and act domestically for Rabobank clients anywhere in the world - not just the Americas and Europe but increasingly in the Far East as well.' LEASING AS TOOL In the world of vendor leasing, a somewhat different situation prevails. The clients are inuch larger, the sums involved are often greater, and the payment terms are spread out over a much longer time. Fiere, De Lage Landen can bring new ^Hients into the Rabobank fold. The essential purpose of vendor leasing is to give the cliënt (or vendor) a new marketing tooi to spread his product penetration in competitive markets. Photocopiers are the classic example. Customers increasingly tend to lease rather than buy photocopiers these days. A soft drink bottler will want bottling equipment (plus service and spare parts) at a price that is based on the output of the machines. A user of printing machines, like Heidelberg Harris, might be offered a similar leasing deal based on the number of copies produced. BRIGHT BALANCE SHEET 'Ownership is no longer the most relevant factor to the customer,' says Toebosch. lOutput is the key; the customer wants to Bv for use. Our vendor leasing arrangements allow the vendor's customer to transform his fixed costs into variable costs.' These packages are usually devised in cooperation between De Lage Landen De Lage Landen - on a fast track to add new products to the Rabobank range. and the vendor - and they are then offered by the vendor under his own name. A farmer who leases a tractor from a Massey Ferguson dealer is unaware that he is actually doing business with a joint venture in which De Lage Landen might hold a majority stake. In fact, most vendor lease arrangements are offered through joint ventures in which De Lage Landen is lead partner: such structures help keep the vendors' balance sheet ratio looking bright. WORKING FOR THE BANK De Lage Landen is concentrating on several priority markets in vendor leasing. These include agricultural equipment, computer equipment, photocopiers, transportation, and printing machines. Obviously, not all these markets coincide with the agribusiness, food, and health care markets on which Rabobank is primarily focused. 'In vendor leasing, we're often targeting multinational with information and they don't watch or respond to ads as they once did. Innovative distribution is emerging as one important area where one can still differentiate one's offering.' FLEXIBLE OPTIONS it takes expertise to get the design of such offerings right. In transportation, for example, you have to be aware that flexibility is an important priority for end- users. Acting on that awareness, De Lage Landen might offer transport companies the opportunity to lease, say, 20 trucks, plus an option to hire an additional number in case of unexpected periods of peak demand. Such a deal might also be linked to a maintenance contract plus an ability to trade in the old truck for the newest model at a fixed additional cost. EXTENDED RELATIONS Similarly, computer company customers are always concerned about committing companies that are not yet clients of Rabobank,' says Toebosch. 'But often, we can pass on our partners addresses onto the bank.' LONG-TERM LIAISONS What the factoring operations, the vendor leasing activities, and Rabobank's own banking efforts have in common is an emphasis on relationships. All three are committed to cultivating long-term business liaisons. 'Look at cars nowadays. Essentially, they're all the same: they're excellently built, they offer similar gas mileage, you can get them in any colour you want. So how can a vendor sell himself? Old fashioned advertising isn't as effective because people are overwhelmed themselves to technology that might soon be outdated. So, De Lage Landen has configured a leasing package whereby Unisys customers can freely exchange a fixed proportion of their systems every year, and thus stay on top of the fast- changing technology curve. 'What we do is to take a difficult competitive situation and turn it into an opportunity. Vendor leasing not only acts as an impulse to extra sales, but it often helps cement an extended relationship between the vendor and his cliënt. Thus, that initial DAF truck becomes a vehicle for a steady long-term revenue stream. This is what long-term relationships are all about.'

Rabobank Bronnenarchief

blad 'What's news' (EN) | 1996 | | pagina 13