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AT YOUR. . . SERVICE •

12th October 2006
Page 60
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Page 60, 12th October 2006 — AT YOUR. . . SERVICE •
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Which of the following most accurately describes the problem?

Hire-and-reward transport has had its day, says Trevor Ellis. Tim Maughan looks at the firm's diversification programme and sees how this activity has boosted its bottom line.

In an industry increasingly dominated by the major fleets many family operators find it hard to make a living, let alone increase their turnover. But, in the three years from 2002 to 2005 Rutland-based CS Ellis (Group) boosted its turnover from £6m to more than am.

The company has operated from its 15-acre site deep in the rolling countryside since 1966. "Most of our clients are Pies and manufacturing companies," says managing directorTrevor Ellis,-but the growth of the company has not been in transport-.

The CS Ellis business formula revolves around three chief components: pallets, transport and 'warehousing and fulfilment'. Pallets involve transport, of course, but Ellis sees this work differently. For him 'transport' means traditional hire-and-reward movements—pallets are seen as consignments llowing through vast multi-operator networks.

Ellis is currently chairman of Palletline; an organisation he joined 12 years ago. We can offer a full range of services,he says.The firm's warehouses handle the pallets: they also house the pickers and packers who can label consignments and carry out quality control procedures.

Increasingly, says Ellis, firms are doing away with on-site warehouses and paying operators to store their wares.

New opportunities

For operators this can represent new business opportunities entirely separate from transport. While we're talking his mobile phone rings.A very brief conversation follows— and a fresh storage deal has been done.

Customers' goods can lay untouched in the firm's warehouses for lengthy periods, while others undergo what Elllis describes as the "value added" treatment —labelling and so on. -We do every single bit of fulfilment they want us to do," he explains. "We got into value-added seven or eight years ago. Typically, we have 26 people on pick and pack work." Most of them work at the company's second site in Leicester.

Jonathan Munton, deputy MD and IT director, reports that CS Ellis has invested heavily in computer software, which links the operation directly to the customer: "The system can take any file format from the

customer and import it into our own system:"

Ellis stresses the strategic importance of this technology: "We are very integrated with our customers. Once you have got the platforms in place, you are in there." He believes IT networking is so important that operators who fail to keep up will be left behind.

When it comes to working with pallets he says:"I would say that the financial rewards are higher than in basic haulage, and it's like a big family, with the other members. Every day, we use our 75.17 and 26-tonners to bring goods into our warehouses here and in Leicester."After sorting, Ellis 1...GVs make a series of overnight trunks to Birmingham and London."All day we're collecting goods from Leicestershire, then sending them back into the hubs," says Ellis.

A dozen trucks are dedicated to local pallet work. Palletline, says transport director David Mackenzie, makes it easier to give customers tariffs,rather than working out rates for individual jobs.The power of the network also means CS Ellis can guarantee delivery times.

The firm is also a member of the Transport Association -a grouping of about 60 hauliers with a combined fleet of 4,000 vehiclesbecause Ellis believes networking is essential in modern road transport. "Together, we are stronger," he says. But Mackenzie chips in: "We still like to be known as a family business." The boardroom has that family feel there are model trucks and a photograph of Ellis, his son, his father and grandfather.

Working for nothing At one time the firm was turning over plenty of money but making no profits. Ellis puts it bluntly:"We were a charity. We were doing it for nothing so we adapted to change."

Ellis reckons the old saying,"the customer is always right" has its limitations. He points out that operators can pander so much to their clients' needs that they can lose money on a contract."Do not be frightened of your customers," he advises.

Despite the success of the lirm's diversification Ellis readily admits that more can be done to improve business methods:-We are still not smart enough, there is still more to do."

But he has plans to deal with that too:"For a long time we have relied on outside help. But my son,Charles,is a trained accountant; he'll be joining us in March 2007. Before that, he will work fora haulier in Scotland... he will get some hard and fast rules drummed into him." •


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