MERCHANT FOCUS: MKM
MERCHANTING M
MAKING MORE OF
Fiona Russell Horne talks to MKM about organic growth and nurturing the entrepreneurial spirit.
erchanting and manufacturing are different sides of the supply chain coin and MKM’s chief executive has experience of both. Kate Tinsley joined builders’ merchant MKM at the end of September 2020, having been managing director of brick maker Ibstock. Prior to that, she had spent seven years in various roles at Grafton, ending there as CEO of its Buildbase and associated merchant businesses. Something about merchanting called her back. “I realised when I was away from it that I really missed merchanting,” she says. “I missed the speed of it, and the variety that the role involves. It’s very different to leading a manufacturing business. That’s not to say that it’s more difficult or more complex, as it’s not, it’s just more suited to the way I like to work.” MKM’s ownership model was one of the things that appealed to Tinsley about the role. MKM’s branch directors are, in effect, owners of their business, this is a model that has remained the same since the company was founded almost 27 years ago. “Our ownership model allows us to help people literally change their lives by giving them the opportunity to run their own business. It’s a really exciting prospect for those that join.” Tinsley says.
What’s also exciting is the direction of travel for MKM, she continues. Many merchants did well over the past couple of years, despite the pandemic. “We increased the footprint of our estate by 25% in our last financial year by adding new branches as part of our continued roll out strategy. I believe the nature of the MKM business structure in what have been extremely challenging times has helped us,” she says. “I think owner-managers react to
challenges in a different way to those who are managing someone else’s business. It means our business model is very resilient. In fact, MKM proved that during the last recession, and it’s proved it again through the pandemic.” This ownership structure is what drives the business forward, Tinsley believes. “People are genuinely given the opportunity to run their own businesses, and that’s something very special. It’s liberating for our people in terms of the way they work, but also, when they are successful, the rewards are very strong. Running their own business means they are empowered to make decisions, real business decisions that affect their branches, their people and their profitability. It also means they get to focus on the things that will grow their business, with
our central support teams providing the branch network with fantastic help and support. MKM has grown massively since its inception but the infrastructure hasn’t really changed much in that time; where changes have happened, they’ve been at the centre. Tinsley says that there is no regional management structure, and it’s not something the company plans to bring in.
The board comprises Tinsley as chief executive, Neil Croxson as CFO, an independent chairman whose background is private equity, Bain representation - MKM’s private equity partner, as well as David Kilburn, the MKM founder. The management team also includes functional heads of sectors such as digital & marketing, HR, procurement , plus commercial, operational and business development, who all report in to the Chief Executive.
Tinsley says: “The main difference, I believe, with MKM, is that the branches pull from the centre, rather than the centre telling the branches what to do. So, we have all the support services that the branches might want or need, but they come and ask for the support, rather than being told what to do. The
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www.buildersmerchantsjournal.net March 2022
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