MAG45 is celebrating ’75 years in motion’. The business can trace its history all the way back to 1948 when it was created by Dutch manufacturing giant Philips. After 75 years of innovation and delivery, MAG45 continues to grow, developing new solutions to the industry’s defining challenges.
MAG45 can trace its origins back to 1948 when the company was responsible for internal maintenance, repair, and operations (MRO) supply, warehousing, and logistics for Philips. In those days, MAG45 managed the sourcing and supply of all spare parts needed to manufacture Philips’ lighting products.
In 2004, MAG45 entered a new chapter when the business was sold to private investors. “MAG45 got its unique proposition from Philips, but all the partnerships, internal business processes, culture and structure had been built around the objective of serving only that big manufacturer. To achieve success as a standalone and profitable company, it was necessary to break away from the old setup and make a fresh start,” says Bauke Zeinstra, CEO of MAG45. “Over the years, MAG45 had to reinvent itself multiple times. That wasn’t plain sailing, but the acquisition by the Danish-listed wholesaler and service provider Solar Group in 2016 marked a huge turning point. For MAG45, it was the confirmation that – due to its unique proposition and hard work – it had become a stable organisation ready for the next phase of growth.” Today, MAG45 is a leading global provider of integrated supply solutions. Reassuringly, the value proposition remains as unique as in the early days: reducing downtime and Total Cost of Ownership (TCO) with tailor-made integrated supply solutions combining the three pillars of sourcing, logistics and processes.
So where does the name come from? MAG45 is short for ‘Magazijn 4500’, the internal budget code used for the warehouse that sourced and managed all the components needed for Philips’ MRO activities. It’s a nod to the company’s history and heritage.
MAG45 has developed a unique ‘integrated supply solutions’ concept built on three pillars: sourcing, logistics, and processes. The integrated supply solutions approach was defined by private equity firm Varova, who acquired MAG45 from Philips in 2004. Once separated from the Philips family, MAG45 was free to introduce the concept of integrated supply solutions to Europe and, subsequently, the rest of the world. Today, MAG45 can reflect on a 75-year track record in MRO and BOM-tail supplies and an even brighter future.
MAG45 has genuinely grown into a global business with staff and facilities across the world. “I’m proud MAG45 has not only become a trustworthy and reliable partner for our clients, but also a stable and secure employer for our employees, where talent gets free rein to develop and grow as fast as we do,” adds Bauke.
While separated by land and sea, MAG45 celebrates 75 years of operation as a family. Under the theme of ‘MAG45: 75 years in motion’, the business has launched a programme of internal activities called ‘ROUTE45’ to bring staff together in each of its 11 locations worldwide to celebrate the proud history of the business and define its future success.
“We chose ‘75 years in motion’ as our theme because we have been forward-thinking from the start, and we still are. Therefore, even more importantly than reflecting on our past successes, our anniversary is the perfect moment to look ahead and focus on how we can support further growth for today’s – and tomorrow’s – clients and employees worldwide,” says Bauke.
MAG45 may be 75 years old, but it remains a dynamic and energetic organisation that is young in spirit and bursting with ambition. The last three years MAG45 has shown a steady year-over-year growth of 18% and has set itself the target to continue this growth trend in the coming years. To achieve this, the immediate focus is on ensuring a smooth transition to the digital supply chain. This includes cloud-based solutions, optimised IT infrastructure and data security, EDI connections and a new high-end ERP system.
These activities and the attitude and ability of staff will ensure MAG45 can deliver on its promises and deliver market-leading performance.
MAG45 is not just looking back in its 75th year but is firmly focused on the future. Everything the business does is guided by its shared values: Take Ownership, Walk the Talk, Offer Support, Trust & Respect, and Deliver Solutions. “We have a fantastic history and, backed by ongoing digitisation, we will be even better equipped to help our talented people deliver impeccable performance and efficiency as they tackle cross-border supply chain challenges for our existing clients – and a growing number of new ones around the world – now and in the future,” concludes Bauke.
Bauke Zeinstra is Chief Executive Officer at MAG45 and Senior Vice President at Solar. He joined the company in 2014, having previously worked in several prominent positions in International Procurement and Industrial Sales. Bauke holds a Bachelor’s degree in Business Administration and a Master’s in Political Science and Government.
