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Tom Ryan and Kevin Popely are determined to make sure Circle Express transforms itself from a distribution firm to a one-stop shop for all customers' logistics needs.
Words: Joanna Bourke / Images: Tom Lee THE DAY we meet Tom Ryan. managing director of Circle Express, he tells us that in just two days it's his one-year anniversary at the firm an important landmark for a man who spent 16 years at DHL Excel, including a stint as UK transport manager.
But Ryan certainly isn't one to let sentiment get in the way of explaining the fundamental reason why he is at Circle Express: a doubling of turnover to £50m in three years.
Together with the air cargo firm's sales and marketing director Kevin Popely, Ryan explains a revamp of staff and strategy was needed to push the profits up and satisfy the demands of Circle Express owner and chief executive Chris Coffey.
Coffey owns the company outright, including fleets and depots, and there are no other partners in the business. This means Ryan has a heavy burden to carry -We aren't afraid to spend a lot on the right people," Ryan declares. "Chris has asked me to look at the business. He wants a corporate firm and we've got to move on."
Popely reveals that there is scope for new business directors to be appointed. but Ryan injects a touch of realism. He says: "Unfortunately, we've had to lose some members. but we have made the right decision on the internal people to push us forward.
With Ryan claiming there have been at least 10 contracts secured in a matter of weeks, surely a staff shake-up is not sufficient on its own to account for these new contracts? Ryan goes on to explain that the strategy of the business has changed.
He says: "We have been developing and rewriting our IT Data Management System (DMS), which can link to many other computer systems, do electronic invoicing, eliminate transcription errors and save many phone calls. We are anticipating this will take us forward for the next 10-15 years."
Customer is king Throughout Popely and Ryan's reign, communication has been improved at Circle Express with the creation of a customer liaison department, and Popely dramatically emphasises the focus on customer awareness. He states: -A sin would be for us not to inform a customer something was wrong before they were informed by their own client that something was wrong."
To conclude the administrative improvements, Ryan boasts: "Accounts and HR are now all based in London rather than split with Manchester. There is more control from the one location. My main reason was for best practice and it was done to avoid the north/south divide and so strengthen ourselves across the country.
So with efficiency maximised, and with contracts such as a £12m threeyear deal signed with Panalpina World Transport, Ryan predicts a turnover of /32m in the next financial year. So what's next to make sure Ryan meets his all-important f...50m target?
"We are now looking at moving into a handling position. Customers have asked if we could take an extra cost away from them. We are doing it on a small scale, but want to do retail pick and packing for a Heathrow facility within three or four months.
"We are in discussions with three major air freight suppliers where we would manage their entire warehousing and security screening devices."
Of course, turning the business away from a primary distribution approach to an all-encompassing logistics service seems a costly procedure, hut the pair insist it will prove itself cost-effective. Ryan justifies the spending: We want to be a one-stop shop. Profit is not the immediate priority. Chris wants us to spend now and reap the benefits later."
The ambition of the company is clear; it suggests that rewards are expected in the not-too-distant future.
And as a three-year shareholding member of Pallet Track, the group is already pleased with its distributing capabilities, hut Ryan believes that with the added bonus of customers not having to worry about picking or warehousing, the group's potential is huge.
Reaping the rewards
We are looking to he the first in our sector to potentially be awarded the Authorised Economic Operator (AEO) accreditation [meaning the company would he recognised internationally as highly reputable]." reveals Ryan.
And Popely implies the economic depression has proved favourable for the business because it is attracting manufacturing clients that can no longer afford to maintain their own delivery service.
Referring to a recent acquisition of a radioactive cargo fleet, he "People have to look at cost implications of running your own fleet. They recognise transport is not the best sector of a business, so we are able to buy their vehicles and associated staff, which is more cost-effective for them."
During 2008, more than 70% of the fleet has been replaced, with all vehicles now LEZ-compliant, so fuel efficiency is also being addressed.
And as many of its customers begin to focus on the more profitable aspects of their business, Circle Express is reaping the rewards.
"We are the preferred air freight supplier for seven of the top 10 UK freight companies," says Ryan.
Both representatives are also keen to stress the ambition of achieving onestop package status, with no words really needed to communicate the belief of Circle Express that it can climb higher and higher, and with Ryan saying the financial year has been positive so far, we're certain there's the potential to strike that magic £50m target... and even go way beyond it. •