In this interview, Bernd Koch, Senior Vice President ISD and Sales GI, explains why Freudenberg Sealing Technologies (FST) will be consolidating its Industrial Services Division and General Industry Sales more closely. The aim is to make better use of overlaps, provide customers with more comprehensive support, and position the organization for the future – with greater transparency and clear market strategies.
Bernd, Freudenberg Sealing Technologies will be bringing the Industrial Services Division (ISD) and General Industry (GI) Sales closer together in the future. What was the decisive factor behind this decision and the “ChannelOne” project?
Both units have been working for the industrial market for years – but with different focuses. GI Sales is strong in the OEM business, while ISD is more service-oriented. Historically, there has been a lot of overlap. The merger is therefore less of a break than a logical step forward.
So it’s not a question of either/or, but rather of complementarity?
Exactly. Both areas have very similar internal processes and pursue comparable goals. Whether it’s process improvement, digitalization, or digital sales models, we work on the same topics, often in parallel. Bringing this together simply makes sense.
When designing the new organization, which issues are your priority in order to create acceptance and clarity?
We serve a broad market spectrum and want to align the sectors according to their very different success factors. This puts the customer at the center of our strategy.
Flexibility is another anchor point of our realignment. Silos decelerate change and adaptation. We want to become more flexible in the way we serve our customers (field or remote sales) and want to be present where we can win new business.
Another key priority is the close integration of supply chain management and operations. In these areas, we want to pursue a uniform, coordinated strategy that is clearly embedded in FST’s overall strategy.
What’s the long-term organizational objective?
In the future, we plan to have one sales organization for the entire industrial market – with a clear market positioning, clear support functions, and close coordination with divisions, lead centers, and corporate lead functions. By mid-2026, we want to have a clear picture of how the new sales organization will be structured.
In addition to heading ISD, you are also taking over the management of GI Sales. What are the benefits of this dual role?
This dual role is necessary. We want to prepare thoroughly for this merger – not rush into it. It is a unique opportunity to bring two organizations together in a meaningful way. We should not squander it.
Speaking of digitalization: How are you digitalizing sales?
One example is our digital sales tools: While ISD is working hard on the EASY e-business platform and its extensions, GI Sales has further developed customer service with the digital assistant “Sally.” Both follow the same logic – just from different directions.
New support models also play a role in this context.
That’s right. Both organizations developed concepts for customers without a traditional sales force almost simultaneously: GI Sales with “Advanced Inside Sales” and ISD with “Polaris Connect.” The basic idea is identical. We can learn from each other here – and work together in the future.
What are your overall goals for the merger?
We want to develop growth markets in a more targeted manner, respond more quickly to market changes, and secure existing efficiency gains in the long term. In short: fewer silos, more clarity, better use of our resources.
What does that mean specifically for customers in general industry?
Customers benefit above all from a wider selection and better access to our services. We are opening up the dual-brand strategy more consistently: in addition to Freudenberg, Dichtomatik can also be an attractive brand alternative in certain OEM applications. It is important that customers have choices – and do not switch to competitors for price reasons.
Are you planning any changes in terms of content within the sectors?
We have four sectors in General Industry sales and two in ISD. These sectors are in turn divided into different segments. In the future, we want to align them much more closely with specific markets and establish targeted centers of excellence. This is particularly important in markets that require intensive consulting, such as hydrogen applications. These markets are still relatively new to us. That is why we are deliberately pooling our technical expertise in this area so that we can provide more informed advice.
For our customers, this means above all that we will become faster. In the future, sales staff will handle inquiries that do not require development work more directly. This will relieve the burden on the lead centers and shorten response times. At the same time, we will be able to structure our organization differently depending on market requirements. A segment such as aerospace places different demands on us than, for example, business with our technical distributors. The key thing is that we want to talk to our customers on an equal footing – with technical expertise and a tailored approach.
Does that also apply to services?
Yes. In the future, we will also be able to offer value-added services such as special packaging, Kanban solutions, or kitting to OEM customers more easily. Our ISD locations have extensive experience in this area.
What do you consider particularly important in the design of the new organization?
Acceptance comes from transparency and clear communication. We need to really understand markets and customers and use this understanding to develop robust market strategies. At the same time, we need efficient processes, strong support functions, and transparent management. And we need to position ourselves so that we can actively shape new markets and applications – from semi-conductors to hydrogen.
What role does communication play in this process?
A central one. Change only works if it is explained properly. That is why we will hold regular town hall meetings and provide transparent information.
Until then, ISD and GI Sales will remain separate. How will you avoid friction losses?
By not rushing anything. During the transition phase, nothing will change for customers or employees. Everything will continue as before.
What is the strategic importance of General Industry for Freudenberg Sealing Technologies as a whole?
General Industry is our anchor of stability. Especially in times when the automotive business is undergoing major changes, the highly diversified General Industry business ensures stability, growth, and reliable cash flow. This is crucial for the transformation.
How does the new sales structure support the desire of many customers for greater flexibility?
By clearly describing market requirements and better aligning our internal resources with them. Digitalization, including AI support, plays an important role in this, for example in quotation processes or in the prioritization of projects.
Why are you integrating Lead Center Freudenberg Xpress, which previously belonged to ISD, into the Fluid Power division?
Lead Center Freudenberg Xpress has evolved significantly – from a pure service business to a unit with significant production expertise. With the acquisitions of Trygonal and DMH, proximity to the product divisions has become more strategically sensible.
The service concept will still remain the same?
Absolutely. The Xpress Service Centers will remain regionally anchored. At the same time, we are continuing to expand the development of customer-specific solutions. Only when the customer believes in the solution, an order will ultimately be placed.
